Founded in 1983, Rick's Cabaret pioneered in the creation of elegant gentlemen's clubs featuring beautiful topless dancers and high quality restaurant service. Rick's Cabaret went public in 1995 and is listed on The
NASDAQ Global Market under the symbol
RICK. The Company has built powerful brand name awareness for its upscale environment and enjoyable adult entertainment.
Anna Nicole Smith met her oil billionaire husband while dancing at Rick's Cabaret and many of our performers have become
Penthouse Pets and
Playboy Playmates.
President & CEO Eric Langan joined Rick's Cabaret in 1998 and has led the Company since 1999, steadily expanding operations and growing revenues and profit. Mr. Langan has positioned the Company at the
top of the gentlemen's club sector by creating strong financial controls for a business model that offers a pleasurable ambiance and a conscientious approach to customer service patterned after the “concierge model” of the top Las Vegas casinos.
Forbes named Rick's Cabaret one of America's 200 Best Small Companies since 2008. Rick's Cabaret has been profiled in
The Wall Street Journal,
Fortune,
MarketWatch,
Corporate Board Member,
Smart Money,
USA Today,
The New York Daily News and other publications. The Rick's Cabaret-NYC Steakhouse is listed in
Zagat's New York Nightlife and included in the
TONY 100 list of fine Manhattan dining establishments by
Time Out New York. Options in RICK are traded on the
Chicago Board of Options Exchange (CBOE).
Investors are attracted by
strong cash flow, consistent profitability, effective
internal financial controls developed by management, local laws that create
high barriers to entry by potential competitors, and execution of a
roll-up strategy in the consolidating gentlemen's club industry. In recent years the Company has acquired nightclubs in major markets, including New York City, Miami, Philadelphia, Dallas-Ft. Worth and Las Vegas.
• NIGHTCLUB ENTERTAINMENT: The principal brands are
Rick's Cabaret (high-end clubs and restaurants in New York City [Named "
best strip club in NYC" by
Playboy.com], Las Vegas, Minneapolis, Houston, Dallas-Ft. Worth and elsewhere);
Club Onyx (upscale nightclubs in Houston, Philadelphia, Dallas and Charlotte that cater to African-American gentlemen);
XTC Cabaret (more casual, all-nude clubs in Texas); Cabaret North in Ft. Worth; and
Tootsie's Cabaret, the hugely popular Miami mega-club. Rick's Cabaret in New Orleans is licensed to the founder of the Company.
• INTERNET ACTIVITIES: Under the flagship www.NaughtyBids.com, the Company owns and operates
adult-oriented auction sites. Rick's owns www.CouplesTouch.com, an adult entertainment
subscription website serving people in the "swingers" lifestyle. The Company also owns the adult subscription portal www.xxxpassword.com. The profitable Internet division also provides in-house IT and graphics departments.
• MEDIA DIVISION: The Company owns
ED Publications, Inc., the leading trade publishing group serving the multi-billion dollar adult nightclub and retail store industry with the magazines
Exotic Dancer and
StorErotica, plus related industry trade shows and industry-related websites.
• FEMALE ENTERTAINERS. The Company maintains high standards for personal appearance and the conduct of entertainers. Applicants are engaged based on such factors of physical beauty, dancing ability, demeanor and attitude, personality and communication skills. Most performers are independent contractors who pay a facilities use fee to perform and are compensated by customers.
• MANAGEMENT. Staff is recruited from both inside and outside the gentlemen's club industry and all undergo a thorough training program supervised by our Director of Operations. Regional managers supervise local general managers, who are backed up by staffs that place a high premium on customer service. The Company has sophisticated, custom-designed internal procedures and cash management controls based on the casino industry model, designed to ensure the integrity of operational and accounting records. Club management is isolated from cash, and credit card transactions are strictly monitored. Charges made by customers as payment for food, drink and entertainment must be approved, in writing, by a manager before services are rendered. Real-time accounting and inventory control mechanisms are in place at all clubs.
• COMPLIANCE POLICIES. All business is carried on in conformity with local, state and federal laws. In particular, we maintain a No Tolerance Policy regarding illicit sex or drug use on or around the premises. Strict appearance and conduct codes are maintained for performers.
• FOOD AND DRINK. Along with a first class bar, the Company maintains a fine restaurant at most locations. Wait staff is carefully recruited, screened, trained and, in some states, certified. Each club maintains a stock of premium wine, liquor and beer in order to ensure that the customer perceives and obtains good value.
• ATMOSPHERE. Decor and furnishings create the feeling of an upscale restaurant or private club. The sound system is designed to provide quality sound at levels where conversations can still take place.
• VIP ROOMS. In keeping with an emphasis on serving the upper-end of the business market, most clubs feature a VIP area open to individuals who are invited or who purchase memberships. In some clubs, VIP suites, for which the Company charges a premium, provide a higher level of service, luxury and privacy.
• ADVERTISING AND PROMOTION. We use local radio, cable television, newspapers, magazines, hotel and entertainment publications, billboards, taxicabs and a variety of direct marketing and promotional tools to keep the Rick's Cabaret name before the target consumer. The Company also maintains an active public relations program to gain exposure through stories in the media and on the Internet.
• REAL ESTATE. The Company operates clubs that are favorably situated from the standpoint of local zoning and regulatory issues. Rick's either owns the real estate used by its clubs, or has long-term leases for the properties.
Eric Langan, 41, is President & CEO of Rick's Cabaret International, Inc. Eric bought his first club with $40,000 he earned from the sale of his baseball card collection and has worked in the adult industry for more than 20 years.
Eric acquired a controlling interest in Rick's Cabaret in 1999 and became CEO of the Company following its merger with his own publicly traded adult entertainment Company, Taurus, Inc. Under his direction Rick's has expanded its operations to multiple states and is leading a consolidation of the gentlemen's club industry.
He is a member of the Board of Directors of Adult Club Executives (ACE), the major trade organization for the gentlemen's club industry, and is considered an expert in the adult sector.
Eric spent his childhood in Peoria, Illinois, where his father was a police officer. The family subsequently moved to the Dallas area, where Eric began his entrepreneurial career at age 13. By the age of 16 he owned his own profitable advertising media company, distributing promotional flyers after school and during the summers.
Eric believes the future of Rick's Cabaret lies in careful acquisitions of existing clubs and expansion into viable markets and in finding new entertainment niches that are ahead of the entertainment curve. An example is the success of the Club Onyx concept, the first upscale gentlemen's clubs to cater to the African-American professional. It has attracted an enthusiastic clientele of pro athletes, musicians, businessmen, and community leaders. Eric believes the industry is in a consolidation phase similar to that experienced by the casino industry in the 1990s.
This document may contain forward-looking statements that involve a number of risks and uncertainties. Important factors that could cause the Company's actual results to differ materially from those indicated in this document include the risks and uncertainties related to 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, the business climates where the Company operates, the success or lack thereof in launching and building the Company's businesses, and numerous other factors such as laws governing the operation of adult entertainment businesses, competitive factors, dependence on key personnel and the ability to manage operations and the ability to raise the funds necessary for its acquisition program. Rick's has no obligation to update or revise the forward-looking statements to reflect the occurrence of future events or circumstances. Details of the Company's recent activities are to be found in the Company's most recent filings with the SEC, all of which are available on the Company's investor relations website,
http://www.ricksinvestor.com.
Contact: Allan Priaulx, allan@ricks.com, 212-338-0050