Rick's Cabaret International, Inc. Completes Purchase Of Second Adult Nighclub In Dallas, Texas
HOUSTON - (June 19, 2008) - Rick's Cabaret International,
, premium operator of upscale gentlemen's clubs, said today it has completed the purchase of Platinum Club II in Dallas, TX, and will re-brand it as an upscale Club Onyx catering to African-American gentlemen.
Rick's Cabaret paid $1.5 million in cash for the adult nightclub at the intersection of 10557 Wire Way and Northwest Highway, just off busy I-35 Stemmons Freeway. The company also acquired the accompanying real estate for $6 million, paying $1.65 million in cash and financing the balance. It is the company's second acquisition in Dallas this year and the third in the Dallas-Ft. Worth "Metroplex."
Rick's Cabaret estimates the club will add approximately $4 to $5 million in annual revenue, with earnings before income tax, depreciation and amortization (EBITDA) between $1.5 million to $2 million. This estimate was not included in the company's latest earnings guidance update on May 8th.
"The more we get to know the Dallas market the more enthusiastic we have become about the potential for an upscale Club Onyx facility," said Eric Langan, President and CEO of Rick's Cabaret.
"Dallas has the great mix of professional athletes, music artists and business executives that has made our Club Onyx brand successful in Houston and Charlotte. We also will benefit from management efficiencies and purchasing power now that we have three locations in the Dallas-Ft. Worth market. We are pleased that we completed this transaction well within the time period originally announced to our investors."
Cabaret International, Inc. (NASDAQ: RICK) operates upscale
nightclubs serving primarily businessmen and professionals that
offer live adult entertainment, restaurant and bar operations. The company
owns and operates or licenses adult nightclubs in New York City, New Orleans,
Charlotte, Houston, Minneapolis and other cities under the names "Rick's
Cabaret," "XTC" and "Club Onyx." No sexual contact
is permitted at any of these
locations. Rick's Cabaret also owns the adult
Web site, couplestouch.com,
and a network of online adult auction sites under the flagship URL naughtybids.com.
Cabaret common stock is traded on NASDAQ under the symbol RICK.
further information contact [email protected].
This document contains forward-looking statements that involve a number
of risks and uncertainties that could cause the company's actual results
to differ materially from those indicated in this document, including:
the risks and uncertainties associated with operating and managing an
adult business; the business climates in New York City and elsewhere;
the success or lack thereof in launching and building the company's businesses
in New York City and elsewhere;
the Company's ability to identify and
secure suitable locations for
new nightclubs on acceptable terms, open
the anticipated number of
new nightclubs on time and within budget; achieve
of same-store sales; hire and train additional nightclub
and integrate new nightclubs into its operations; unexpected
increases in costs of sales or employee, pre-opening or other expenses;
the economic conditions in the new markets into which the Company expands
and possible uncertainties in the customer base in these areas; fluctuations
in quarterly operating results; the impact of any negative publicity or
public attitudes; competitive pressure from other national and regional
nightclub chains; risks and uncertainties related to the operational and
financial results of our Web sites, conditions relevant to real estate
transactions, and numerous other factors such as laws governing the operation
of adult entertainment
businesses, competition and dependence on key personnel.
no obligation to update or revise the forward-looking statements
reflect the occurrence of future events or circumstances. For further
information go to www.ricks.com.
Media Contact: Allan Priaulx, 212-338-0050, [email protected]