Securities and Exchange Commission
Washington, D.C. 20549

FORM 8-K

Current Report
Pursuant To Section 13 or 15(d) Of
The Securities Exchange Act of 1934

Date of Earliest Report Event:  September 11, 2009

RICK'S CABARET INTERNATIONAL, INC.
(Exact Name of Registrant As Specified in Its Charter)
 
 
Texas
0-26958
76-0037324
(State Or Other Jurisdiction of Incorporation)
(Commission File Number)
(IRS Employer Identification No.)

10959 Cutten Road
Houston, Texas 77066
(Address Of Principal Executive Offices, Including Zip Code)

(281) 397-6730
(Registrant's Telephone Number, Including Area Code)
 
 
1
 

ITEM 7.01
REGULATION FD DISCLOSURE
 
On September 11, 2009, Eric Langan, our President and Chief Executive Officer, will be attending the Sidoti West Coast Institutional Investor Forum in San Francisco, California. During the conference, Mr. Langan will make a business summary power point presentation to the attendees.

Since some portions of the business summary power point presentation may contain information which may not have been previously disclosed in our filings with the Securities and Exchange Commission, we are filing herewith, in compliance with Regulation FD, a copy of the business summary power point presentation as Exhibit 99.1.

ITEM 9.01
FINANCIAL STATEMENTS AND EXHIBITS

(d) Exhibits

Exhibit No.
Description

Business Summary Power Point Presentation


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report on Form 8-K to be signed on its behalf by the undersigned hereunto duly authorized.

 
RICK'S CABARET INTERNATIONAL, INC.
 
 
 
 
 
/s/ Eric Langan
 
By:  Eric Langan
Date:  September 10, 2009
Chairman, President, Chief Executive Officer
 
 
2
 
 
 
SAFE HARBOR
•   This presentation may contain forward-looking statements that
  are covered under the provisions of Section 27A of the
  Securities Act of 1933 regarding Safe Harbor statements.
  Forward-looking statements may involve revenue, income
  and other business activities of Rick's Cabaret. Actual results
  could differ materially from those projected in the forward-
  looking statements as a result of many factors, including but
  not limited to the risks associated with operating an adult
  business, our ability to complete the acquisitions of new
  business units, business climates in cities where we operate,
  the success or lack thereof in building the company's
  businesses, and numerous other factors. Under provisions of
  the Safe Harbor section, the company is under no obligation to
  correct, update or amend oral statements. Definitive
  information about the company is presented on the
  company's Website, www.ricks.com, and in filings made to the
  SEC, which are also available on the Website.
 
 
 
 
RICK’S CABARET OVERVIEW
• Rick’s Cabaret is the Premier Operator of Upscale
 
  Gentlemen’s Clubs - 18 Clubs Nationwide
 
• Key Brand: Rick’s Cabaret - Upscale (7)
 
• Other brands serving specific audiences:
 
  - Club Onyx - Upscale African-American   (4)
 
  - XTC Cabaret - Blue-collar/College (5)
 
  - Tootsie’s Cabaret Miami - Premium Tourist &
 
    local market (1)
 
  - Divas Latinas Houston - Hispanic-oriented (1)
 
• High Margins & Strong Cash Flow
 
• EBITDA Compound Growth Last 5 Years Exceeds 70 %
 
• “Recession Resistant” business model.
 
 
 
 
Market         NASDAQ Global
 
Shares Outstanding       9.4M
 
Share Price Up Since 3/9/09:     225%
 
Institutional Ownership       12%
 
Insider Ownership       17%
 
‘RICK’ SNAPSHOT
 
 
 
STRONG OPERATIONAL BASE
•   Financial Controls > System-wide
  proprietary cash management modelled on
  casino industry
 
•   Credit Cards > More than half of our sales
 
•   Entertainers > Independent Contractors who
  pay us a facilities use fee
 
•   Quality Control >   Enhances brand value
 
•   Casino “Concierge” Model + Customer
  Service > Caters to VIPs, builds loyalty,
  assures repeat business
 
 
 
 
Fiscal Year Financial Summary
Revenues
$13.9
$14.8
$24.5
$32.0
$59.9
44.2%
y-o-y growth
7.0%
65.2%
30.7%
87.2%
EBITDA
1.9
0.9
4.1
5.7
16.3
71.6%
  Margin %
13.5%
6.0%
16.8%
17.8%
27.1%
Net Income
0.8
(0.2)
1.8
3.1
7.7
77.3%
  Margin %
5.6%
(1.5%)
7.2%
9.5%
12.8%
Number of Clubs
7
9
13
14
19
FINANCIAL SUMMARY
 
 
 
STRONG PERFORMANCE
HIGH EARNINGS QUALITY
•   High barriers to
  entry, low Industry
  cyclicality.
 
•   High earnings
  quality: steady,
  predictable
  margins.
 
•   Business model
  “recession
  resistant”
 
•   High EBITDA cash
  conversion.
 
 
 
 
As of June 30, 2009
 
 
 
CASH FLOW &
LIQUIDITY SUMMARY
•   Rick’s has sufficient
  cash flow to cover
  operating costs and
  interest, finance
  growth and repay
  debt.
 
•   Rick’s had $4.7 mm
  average liquidity
  quarterly.
 
•   Rick’s completed
  $7.2 mm raise
  August 2009.
 
 
 
 
CAPITALIZATION
•   Low leverage
 
•   Interest costs
  easily covered
 
 
 
 
DEBT PROFILE
• Common Stock Subject to Put Rights:
 
  Maximum $13.5 mm If Stock Price is Zero
• Real Estate Backed Loans   $15.3 mm, Will Be
  Retired by 2014
• Tootsie’s Cabaret Owner Purchase Note:
 
  $10mm @14% Due 11/30/ 2012
• Convert of August ’09  $7.2mm, Interest 10%,
 
  Convertible at $8.75 Payable Over 3 Years
 
 
 
 
OUR CONSOLIDATION STORY
•   Much of Rick’s Growth Since 2005 has
  Been Through Acquisitions
•   Entry Into Major Markets > NYC, Miami, Las
  Vegas, Philadelphia, Dallas
•   NYC & Miami Clubs Are Our Home Runs
•   Cash On Hand and Demonstrated Ability
  to Raise Capital Are Powerful Tools
•   Leading Consolidation of $2B Gentlemen’s
  Club Industry
 
 
 
OUR FIRST BIG BUY:
Acquired Midtown Manhattan Club in 2005 -
  Playboy.com says: “Best Strip Club in NYC”
 
•   Brought Wall Street Attention to RICK Stock
 
•   Investment Pros Got to See First Hand How Our
  Business Model Works
 
•   ‘Due Diligence’ Parties Becoming Legendary
 
•   Proximity to M.S.G. a Huge Plus
 
•   Club is Exceptionally Profitable: $12mm+
  Revenue Run-rate, High Margins, Strong
  Growth
 
 
 
 
•   Acquired Nov. ’07 Transaction value:
 
  $25.5mm (2.2x EBITDA)
 
•   One of a kind: all nude with liquor ;
 
•   74 ,000  sq ft on two levels; valet
 
  parking for 1,500 cars; open ‘til 6 am
 
•   Immediately accretive - highly
 
  profitable from day one;
 
•   Revenue Growth 25%+ over
 
  previous owner by upgrading VIP
 
  service = high-end customers
 
•   Named Best Strip Club in S.E. in ‘09
 
 
 
 
Positive Developments
•   Acquired 25,000 sq. foot club, just off The
  Strip in September ‘08
 
•   Economy plunged immediately after
  acquisition
 
•   Marketing Initiatives, High Margin VIP Focus ,
  Catering to Locals and Cost controls are
  Having Positive Impact
 
•   Will be Strong Contributor as Vegas Market
  Turns Around
 
 
 
 
Dallas,Philly Conversions
BY ADDRESSING PROBLEMS, NEW
  ACQUISITIONS IN PHILLY & DALLAS ARE
NOW PROFITABLE
•   Rick’s Philadelphia Converted to Club Onyx -
  Near All Pro Sports Stadiums ( Phillies , 76ers , Eagles ,
  Flyers )
•   Rick’s Dallas Converted to XTC Cabaret -
  Exceptional Club Near Sports Stadiums and hip
  Uptown Area
•   Club Onyx Dallas
•   - Has Become Top Upscale Club for African-
  American Clientele
 
 
 
•   Focus on core competency - become top club in
  each market
•   Increase operating efficiency & raise gross
  margins
•   Leverage our strong marketing skills
•   Emphasize transparency, rigorous cash control
•   Build brand awareness/brand equity
•   Maintain lean operating system
•   Make strong, selective acquisitions
•   Focus on metro areas : heavy business traffic /
  convention centers / tourism /   pro sports
•   Purchase at 3x - 5x EBITDA
•   Accretive with little ramp-up required
•   Be flexible about funding : cash + debt   plus our
  stock only when it regains value
Organic Growth
Acquisition Growth
OUR LONGTERM GROWTH
STRATEGY
 
 
 
•   IT executive, Director of Internet Division
•   Degree in Aeronautical Science from Texas State Technical College
OUR MANAGEMENT TEAM
•   President, owner, and CPA of Pringle Jenkins & Associates, P.C.
•   BBA Degree (1979) from Texas A&M University
Director
Steven L. Jenkins
Background
Title
Name
•   Noted First Amendment Attorney
•   Former President First Amendment Lawyers Assn.
Director
Luke Lirot
•   20+ Years Hospitality Industry Management Experience
•   Business Admin Degree - Houston CC
Director of Operations
Ed Anakar
•   20+   years industry experience as owner/operator
•   Board of Directors of Adult Club Executives (ACE)
President, CEO & Director
Eric Langan
•   Founded Rick's in 1983; CEO until 1999
•   Bachelor of Laws (Honours) (1973) - London School of Economics
•   Master of Laws (1975) Osgoode Hall Law School, York University
Founder / Director
Robert L. Watters
•   CFO of CDT Systems, Inc. (CDTN), Audit Partner, KPMG
•   Texas State University (1972)
CFO
Phillip K. Marshall
•   Former Executive Vice President Thomson Financial/Banking
•   Dartmouth College / University of Southampton (UK)
Investor & Media Relations  
Alan Priaulx  
•   Over 20 years of legal experience
•   B.S. and J.D. from the University of Houston
General Counsel  
Brenda Stanfield  
VP/Director
Travis Reese
 
 
 
SUMMARY
•   Attractive Industry > Big Clubs Thriving in Recession
• Unique Business Model > Great Margins + Strong
  Financial Controls
•   Non-Capital Intensive     > Strong Cash Flow
• Significant Barriers to Entry Limit Competition
  * Strict Zoning Ordinances &
  * Tough Sexually Oriented Business (SOB) License
    Requirements Work to Our Favor
• Management > Depth + Experience
•   Attractive Rollup Model > Strong Long-term
  Prospects with Big Pipeline of Targets
• Positioned for Growth As Economy Returns
 
 
 
THANK YOU!
PLEASE BE SURE TO VISIT A RICK’S CABARET
  CLUB ON YOUR NEXT TRIP TO NYC, MIAMI,
  LAS VEGAS, DALLAS, HOUSTON, CHARLOTTE,
  AUSTIN, SAN ANTONIO OR MINNEAPOLIS .