Rick’s Cabaret International, Inc. (NASDAQ: RICK), the premier
operator of upscale gentlemen’s clubs, reported revenues of $18.36
million for its second fiscal quarter ended March 31, 2009, a 21.6
percent increase over second quarter in the previous year.
The increase in revenues was primarily due to gains generated by clubs
in Philadelphia, Las Vegas and Dallas, as well as the new media division.
Income from continuing operations was $1.51 million or 16 cents per
fully diluted share, compared with $2.85 million or 35 cents for the
same period a year earlier. Net income for the 2009 quarter was $839,471
or nine cents per fully diluted share, a result that was impacted by
non-recurring impairment of $823,090 of the net assets of the Rick’s
Cabaret nightclub in Austin, for which the company currently has a
contract of sale.
The company’s income from continuing operations was also impacted by
pre-tax losses at certain clubs totaling $900,000, compared to losses of
$1.9 million for the company’s first quarter ended December 31, 2008.
The principal losses for the second quarter ended March 31, 2009
occurred at Rick’s Cabaret in Las Vegas, which lost approximately
$633,000 before income taxes.
Other factors impacting the company’s income in the second quarter
included:
-
Advertising and marketing expenses of $1.68 million versus $471,874 in
the prior year, related to launching the Las Vegas club and
re-branding of clubs in Dallas and Philadelphia;
-
Legal fees of $810,501 versus $337,991, principally due to contesting
of labor lawsuits in Minnesota and New York.
-
An increase in interest expense to $808,831 compared with $658,673 in
the prior year, attributable to new debt to finance the purchase of
the new clubs and related real estate;
“We believe we made significant progress during the second quarter in
pointing our Las Vegas club toward profitability when the Vegas market
returns to normal,” said Eric Langan, President and CEO of Rick’s
Cabaret. “We also made tremendous progress in turning around losing
clubs in Philadelphia and Dallas, which are now profitable and which we
expect to continue being profitability going forward. Our 10-Q statement
gives details on these turnaround situations.”
“We are also pleased with our sequential improvement over the first
quarter of this fiscal year. Revenues were up 7.9 percent, income from
continuing operations was up 33.5 percent, total salaries and wages
declined by 4.2 percent. We are hopeful we will see continued gains as
the year progresses,” Mr. Langan added.
Mr. Langan will discuss results for the quarter ended March 31, 2009 in
a conference call being webcast by Vcall that can be accessed at
the Rick’s Cabaret website, ricks.com or http://www.investorcalendar.com/IC/CEPage.asp?ID=144825.
The toll free live participant dial-in number is 877-407-8033;
international callers should dial 201-689-8033. The toll free replay
number is 877-660-6853 (international callers dial 201-612-7415) and the
call will be available until May 19, 2009. Please enter the number 286
when asked for the account, and then conference ID number 322695.
|
|
|
RICK'S CABARET INTERNATIONAL, INC. AND SUBSIDIARIES
|
|
|
|
CONSOLIDATED STATEMENTS OF INCOME
|
|
|
|
|
|
|
|
|
|
|
FOR THE THREE MONTHS
|
|
|
FOR THE SIX MONTHS
|
|
|
|
ENDED MARCH 31,
|
|
|
ENDED MARCH 31,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2009
|
|
|
2008
|
|
|
2009
|
|
|
2008
|
|
|
|
(UNAUDITED)
|
|
|
(UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales of alcoholic beverages
|
|
$
|
6,955,904
|
|
|
|
$
|
5,503,529
|
|
|
|
$
|
13,522,731
|
|
|
|
$
|
9,560,502
|
|
|
Sales of food and merchandise
|
|
|
1,566,828
|
|
|
|
|
1,296,197
|
|
|
|
|
2,979,806
|
|
|
|
|
2,335,297
|
|
|
Service revenues
|
|
|
8,758,735
|
|
|
|
|
7,615,581
|
|
|
|
|
16,859,729
|
|
|
|
|
12,598,386
|
|
|
Internet revenues
|
|
|
164,631
|
|
|
|
|
172,712
|
|
|
|
|
341,394
|
|
|
|
|
343,501
|
|
|
Media revenues
|
|
|
285,331
|
|
|
|
|
-
|
|
|
|
|
468,967
|
|
|
|
|
-
|
|
|
Other
|
|
|
628,932
|
|
|
|
|
505,013
|
|
|
|
|
1,194,154
|
|
|
|
|
998,069
|
|
|
Total revenues
|
|
|
18,360,361
|
|
|
|
|
15,093,032
|
|
|
|
|
35,366,781
|
|
|
|
|
25,835,755
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods sold
|
|
|
2,216,457
|
|
|
|
|
1,543,941
|
|
|
|
|
4,424,126
|
|
|
|
|
2,823,980
|
|
|
Salaries and wages
|
|
|
3,986,476
|
|
|
|
|
3,127,219
|
|
|
|
|
8,148,162
|
|
|
|
|
5,575,081
|
|
|
Stock compensation
|
|
|
20,044
|
|
|
|
|
39,270
|
|
|
|
|
40,088
|
|
|
|
|
78,540
|
|
|
Other general and administrative:
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxes and permits
|
|
|
2,367,248
|
|
|
|
|
1,900,759
|
|
|
|
|
4,635,912
|
|
|
|
|
3,078,975
|
|
|
Charge card fees
|
|
|
446,947
|
|
|
|
|
250,565
|
|
|
|
|
781,639
|
|
|
|
|
446,989
|
|
|
Rent
|
|
|
845,823
|
|
|
|
|
516,677
|
|
|
|
|
1,707,185
|
|
|
|
|
878,098
|
|
|
Legal and professional
|
|
|
810,501
|
|
|
|
|
337,991
|
|
|
|
|
1,310,750
|
|
|
|
|
629,639
|
|
|
Advertising and marketing
|
|
|
1,677,196
|
|
|
|
|
471,874
|
|
|
|
|
2,813,367
|
|
|
|
|
748,022
|
|
|
Insurance
|
|
|
265,906
|
|
|
|
|
161,365
|
|
|
|
|
503,385
|
|
|
|
|
350,298
|
|
|
Utilities
|
|
|
371,126
|
|
|
|
|
265,244
|
|
|
|
|
796,039
|
|
|
|
|
456,986
|
|
|
Depreciation and amortization
|
|
|
814,279
|
|
|
|
|
578,281
|
|
|
|
|
1,615,658
|
|
|
|
|
1,021,774
|
|
|
Other
|
|
|
1,295,474
|
|
|
|
|
1,171,567
|
|
|
|
|
2,677,716
|
|
|
|
|
2,057,443
|
|
|
Total operating expenses
|
|
|
15,117,477
|
|
|
|
|
10,364,753
|
|
|
|
|
29,454,027
|
|
|
|
|
18,145,825
|
|
|
Operating income
|
|
|
3,242,884
|
|
|
|
|
4,728,279
|
|
|
|
|
5,912,754
|
|
|
|
|
7,689,930
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income
|
|
|
1,659
|
|
|
|
|
26,403
|
|
|
|
|
7,393
|
|
|
|
|
69,472
|
|
|
Interest expense
|
|
|
(808,831
|
)
|
|
|
|
(658,673
|
)
|
|
|
|
(1,636,302
|
)
|
|
|
|
(1,102,556
|
)
|
|
Minority interests
|
|
|
(73,500
|
)
|
|
|
|
--
|
|
|
|
|
(147,000
|
)
|
|
|
|
177,911
|
|
|
Income from continuing operations
|
|
|
|
|
|
|
|
|
|
|
|
|
before income taxes
|
|
|
2,362,212
|
|
|
|
|
4,096,009
|
|
|
|
|
4,136,845
|
|
|
|
|
6,834,757
|
|
|
Income taxes
|
|
|
856,625
|
|
|
|
|
1,241,962
|
|
|
|
|
1,503,189
|
|
|
|
|
1,932,398
|
|
|
Income from continuing operations
|
|
|
1,505,587
|
|
|
|
|
2,854,047
|
|
|
|
|
2,633,656
|
|
|
|
|
4,902,359
|
|
|
Loss from discontinued operations, net
|
|
|
|
|
|
|
|
|
|
|
|
|
of income taxes
|
|
|
(666,116
|
)
|
|
|
|
(248,667
|
)
|
|
|
|
(1,003,353
|
)
|
|
|
|
(513,707
|
)
|
|
Net income
|
|
$
|
839,471
|
|
|
|
$
|
2,605,380
|
|
|
|
$
|
1,630,303
|
|
|
|
$
|
4,388,652
|
|
|
Basic earnings per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations
|
|
$
|
0.16
|
|
|
|
$
|
0.38
|
|
|
|
$
|
0.28
|
|
|
|
$
|
0.68
|
|
|
Loss from discontinued operations
|
|
$
|
(0.07
|
)
|
|
|
$
|
(0.03
|
)
|
|
|
$
|
(0.11
|
)
|
|
|
$
|
(0.07
|
)
|
|
Net income
|
|
$
|
0.09
|
|
|
|
$
|
0.34
|
|
|
|
$
|
0.17
|
|
|
|
$
|
0.61
|
|
|
Diluted earnings per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations
|
|
$
|
0.16
|
|
|
|
$
|
0.35
|
|
|
|
$
|
0.28
|
|
|
|
$
|
0.63
|
|
|
Loss from discontinued operations
|
|
$
|
(0.07
|
)
|
|
|
$
|
(0.03
|
)
|
|
|
$
|
(0.11
|
)
|
|
|
$
|
(0.07
|
)
|
|
Net income
|
|
$
|
0.09
|
|
|
|
$
|
0.32
|
|
|
|
$
|
0.17
|
|
|
|
$
|
0.56
|
|
|
Weighted average number of common
|
|
|
|
|
|
|
|
|
|
|
|
|
shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
9,313,819
|
|
|
|
|
7,561,163
|
|
|
|
|
9,339,926
|
|
|
|
|
7,183,699
|
|
|
Diluted
|
|
|
9,487,528
|
|
|
|
|
8,473,497
|
|
|
|
|
9,543,741
|
|
|
|
|
8,012,745
|
|
|
|
About Rick’s Cabaret: Rick’s Cabaret International, Inc. (NASDAQ:
RICK) operates upscale adult nightclubs serving primarily businessmen
and professionals that offer live adult entertainment, restaurant and
bar operations. The company owns, operates or licenses adult nightclubs
in New York City, Miami, Philadelphia, New Orleans, Charlotte, Dallas,
Houston, Minneapolis and other cities under the names "Rick's Cabaret,"
"XTC," “Club Onyx” and “Tootsie’s Cabaret”. Sexual contact is not
permitted at these locations. Rick’s Cabaret also operates a media
division, ED Publications, and owns the adult Internet membership Web
site, 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 ir@ricks.com.
Forward-looking Statements: 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 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 ricks.com.
Rick’s Cabaret International, Inc.
Allan Priaulx,
212-338-0050
ir@ricks.com
