HOUSTON – (August 9, 2012) –
Rick’s Cabaret International, Inc., (NASDAQ:RICK) the nation’s premier group of upscale gentlemen’s clubs, reported consolidated total revenues of $23.9 million for its third quarter ended June 30, 2012, an increase of 15 percent compared with the $20.8 million reported for the period in 2011.
The company said net income was $1.8 million compared with $888,000 in the same period in 2011, with earnings of 19 cents per share in the third quarter this year compared with nine cents last year.
Eric Langan, President and CEO of Rick’s Cabaret International, will discuss the results in a conference call at 4:30 pm EDT today. The call will be webcast by
VCall and can be accessed at the Rick’s Cabaret investor website,
www.investorcalendar.com. The domestic toll free participant dial-in number is 877-407-8033; international is 201-689-8033. The toll free replay numbers are domestic 877-660-6853; international 201-612-7415. Replay access information: Account 286 and Conference ID 398195. The replay will be available until Sept. 9, 2012.
The increase in revenues was driven by strong results from Tootsie’s Cabaret
in Miami; Club Onyx locations in Philadelphia and Charlotte; a newly acquired club in Dallas; and strong sales increases at the Dallas-Ft. Worth Airport location, formerly a BYOB club that is now selling liquor. Total same-location-same-period club sales were up five percent to $21.3 million compared with $20.3 million last year.
Mr. Langan said earnings and operating margins were impacted by increases in cost of goods sold due to more clubs selling alcohol this year; higher depreciation because of the addition of new real estate; the one-time loss on the sale of assets; and higher legal costs plus the settlement of a lawsuit. Some of these factors also caused lower Adjusted EBITDA* for the third quarter, which was $5.4 million this year, compared with $6.0 million last year. The Form 10Q available on the company’s
www.ricksinvestor.com website provides a comprehensive view of these issues in its Management Discussion & Analysis section.
*Adjusted EBITDA is a financial statement measure that was not derived in accordance with GAAP. We use adjusted EBITDA (earnings from continuing operations before interest expense, income taxes, depreciation, amortization and impairment charges) as a non-GAAP performance measure. In calculating adjusted EBITDA, we exclude our largest recurring non-cash charge, depreciation, amortization and impairment charges. Adjusted EBITDA provides a core operational performance measurement that compares results without the need to adjust for Federal, state and local taxes which have considerable variation between domestic jurisdictions. Also, we exclude interest cost in our calculation of adjusted EBITDA. The results are, therefore, without consideration of financing alternatives of capital employed. We use adjusted EBITDA as one guideline to assess our unleveraged performance return on our investments. Adjusted EBITDA is also the target benchmark for our acquisitions of nightclubs.
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About Rick’s Cabaret: Rick’s Cabaret International,
Inc. (NASDAQ: RICK) is home to upscale adult nightclubs serving primarily
businessmen and professionals that offer live entertainment, dining and bar
operations. Nightclubs in New York City, Miami, Philadelphia, Charlotte,
Dallas/Ft. Worth, Houston, Minneapolis, Indianapolis and other cities as "Rick's
Cabaret," "XTC," “Club Onyx” and “Tootsie’s Cabaret” and other brand names.
Sexual contact is not permitted at any locations. Rick’s Cabaret also operates a
media division, ED Publications, and owns the adult Internet membership Website
couplestouch.com as well as a network of online adult auction sites under the
flagship URL naughtybids.com. Rick’s Cabaret common stock is traded on NASDAQ
under the symbol RICK. For further information contact
firstname.lastname@example.org or visit
Forward-looking Statements: This press release may contain
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 press release, including the risks and uncertainties
associated with operating and managing an adult business, the business climates
in cities where it operates, the success or lack thereof in launching and
building the company’s businesses, 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. Rick's has no obligation to update or revise the forward-looking
statements to reflect the occurrence of future events or circumstances. For
further information visit www.ricksinvestor.com.
Contact: Allan Priaulx, 212-338-0050,