Rick's Cabaret International, Inc. Reports 39 Cents Per Share Non-GAAP Earnings; GAAP Earnings Of 29 Cents

HOUSTON, May 9, 2013 /PRNewswire/ -- Rick's Cabaret International, Inc. (NasdaqGM: RICK) today reported financial results for the second quarter, which ended March 31, 2013. Revenues were $28.7 million, up 13% from the $25.4 million recorded in the second quarter of 2012. Non-GAAP* net income was $3.8 million or 39 cents per share fully diluted, with GAAP net income of $2.7 million or 29 cents per share fully diluted.

(Logo: http://photos.prnewswire.com/prnh/20110418/MM85342LOGO)

Rick's Cabaret will host a conference call to discuss the results at 4:30 p.m. EDT on May 9th. Participant dial-in is 877-407-0778 (International): 201-689-8565. The live webcast can be accessed at the company's investor Relations website, www.ricksinvestor.com  along with the company's earnings press release, financial tables and slide presentation.  Following the call, a replay is available until June 9th at 877-660-6853 (International): 201-612-7415 with Conference ID 413980. 

"Our growth continues as planned, with outstanding performance from our Jaguars acquisition, a terrific rollout of our new restaurant/nightclub concept in Dallas, and excellent progress on the five additional locations currently in the works," said Eric Langan, president and CEO of Rick's Cabaret.

The increase in revenues was primarily attributable to clubs acquired during the last year, which contributed $3.7 million. Total revenues for same-location-same-period of club operations decreased slightly to $24.1 million from $25.0 million for the same period, principally due to the Super Bowl not being in a city where we have a club and also due to certain other sporting events impacted by player strikes and lower attendance. 


Second Quarter 2013 Financial Summary

(In millions, except per share amounts)



Q2 '13 

Q2 '12

Revenue

$  28.7

$  25.4




Income from Operations 




Non-GAAP* 

7.5

7.3


GAAP 

6.2

4.5





Net Income 




Non-GAAP* 

3.8

4.0


GAAP 

2.7

2.1





Fully Diluted Earnings Per Share 




Non-GAAP 

.39

.42


GAAP 

.29

.22

 

RICK'S CABARET INTERNATIONAL, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME


(in thousands, except per share data)


FOR THE THREE MONTHS
ENDED MARCH 31,



FOR THE SIX MONTHS
ENDED MARCH 31,



2013



2012



2013



2012



(UNAUDITED)



(UNAUDITED)













Revenues:
















Sales of alcoholic beverages


$

11,044



$

10,406



$

21,449



$

19,322

Sales of food and merchandise



2,878




2,335




5,456




4,333

Service revenues



13,052




11,281




25,707




21,167

Other



1,754




1,392




3,257




2,610

Total revenues



28,728




25,414




55,869




47,432

















Operating expenses:
















Cost of goods sold



3,495




3,390




6,881




6,322

Salaries and wages



6,149




5,204




12,187




10,130

Stock compensation



281




12




563




21

Other general and administrative:
















Taxes and permits



4,573




3,953




8,794




7,404

Charge card fees



342




373




716




681

Rent



783




721




1,353




1,424

Legal and professional



980




741




1,621




1,441

Advertising and marketing



1,162




1,040




2,271




2,035

Insurance



570




347




1,069




638

Utilities



552




406




1,041




807

Depreciation and amortization



1,312




1,190




2,632




2,310

Settlement of lawsuit



-




1,831




-




1,831

Other



2,353




1,750




4,631




3,568

Total operating expenses



22,552




20,958




43,759




38,612

Operating income



6,176




4,456




12,110




8,820

















Other income (expense):
















Interest income



1




1




8




3

Interest expense



(1,762)




(1,106)




(3,405)




(2,079)

Gain on change in fair value of derivative instruments



1




40




1




138

Income from continuing operations before income taxes



4,416




3,391




8,714




6,882

Income taxes



1,615




1,134




3,199




2,342

Income from continuing operations



2,801




2,257




5,515




4,540

Loss from discontinued operations, net of income taxes



(3)




(87)




(17)




(133)

Net income



2,798




2,170




5,498




4,407

Less: net income attributable to noncontrolling  interests



(53)




(53)




(106)




(106)

Net income attributable to Rick's Cabaret International, Inc.


$

2,745



$

2,117



$

5,392



$

4,301

















Basic earnings (loss) per share attributable to Rick's shareholders:
















Income from continuing operations


$

0.29



$

0.23



$

0.57



$

0.46

Loss from discontinued operations


$

(0.00)



$

(0.01)



$

(0.00)



$

(0.01)

Net income


$

0.29



$

0.22



$

0.56



$

0.44

Diluted earnings (loss) per share attributable to Rick's shareholders:
















Income from continuing operations


$

0.29



$

0.23



$

056



$

0.46

Loss from discontinued operations


$

(0.00)



$

(0.01)



$

(0.00)



$

(0.01)

Net income


$

0.29



$

0.22



$

0.56



$

0.44

















Weighted average number of common  shares outstanding:
















Basic



9,514




9,720




9,544




9,703

Diluted



9,988




9,731




9,871




9,710

















* Non-GAAP Net Income. We exclude from non-GAAP net income amortization of intangibles, patron taxes, income tax expense, impairment charges, gains and losses from asset sales, stock based compensation, litigation and other one-time legal settlements and acquisition costs, and include the Non-GAAP provision for income taxes, calculated as the tax-effect at 35% effective tax rate of the pre-tax non-GAAP income before taxes less stock-based compensation, because we believe that excluding such measures helps management and investors better understand our operating activities.

* Non-GAAP Operating Income.  We exclude from Non-GAAP operating income amortization of intangibles, patron taxes, gains and losses from asset sales, stock-based compensation charges, litigation and other one-time legal settlements and acquisition costs. We believe that excluding these items assists investors in evaluating period-over-period changes in our operating income and operating margin without the impact of items that are not a result of our day-to-day business and operations.

Our Form 10-K contains additional details relative to each of the non-GAAP financial measures and is posted on our website at www.ricksinvestor.com.

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 are named "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. Rick's Cabaret common stock is traded on NASDAQ under the symbol RICK. For further information contact ir@ricks.com or visit www.ricksinvestor.com. Twitter: @rickscabaret; Facebook: http://www.facebook.com/rickscabaretintl.

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.

SOURCE Rick's Cabaret International, Inc.



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