2014

Rick's Cabaret International, Inc. Reports Total Revenues Of $23.9 Million For Its Third Quarter Ended June 30, 2012, With Net Income Of $1.8 Million

HOUSTON, Aug. 9, 2012 /PRNewswire/ -- 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.

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

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.ricksinvestor.com or 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.

 





RICK'S CABARET INTERNATIONAL, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME





(in thousands, except

per share data)

FOR THE THREE MONTHS

ENDED JUNE 30,


FOR THE NINE MONTHS

ENDED JUNE 30,










2012


2011


2012


2011


(UNAUDITED)


(UNAUDITED)









Revenues:








Sales of alcoholic beverages

$      9,711


$     8,149


$   29,033


$  24,312

Sales of food and merchandise

2,286


1,891


6,619


5,469

Service revenues

10,576


9,553


31,743


28,637

Internet revenues

97


113


298


359

Media revenues

137


176


496


585

Other

1,114


911


3,164


2,678

Total revenues

23,921


20,793


71,353


62,040









Operating expenses:








Cost of goods sold

3,279


2,710


9,601


7,793

Salaries and wages

5,299


4,683


15,428


13,503

Stock compensation

12


-


33


-

Other general and administrative:








Taxes and permits

3,618


3,096


11,018


9,316

Charge card fees

361


405


1,042


1,047

Rent

726


756


2,150


2,305

Legal and professional

992


635


2,433


1,547

Advertising and marketing

959


838


2,994


2,651

Insurance

387


300


1,027


849

Utilities

454


394


1,264


1,140

Depreciation and amortization

1,398


970


3,708


2,825

Settlement of lawsuits

200


-


2,031


-

Loss on sale of assets

332


-


332


-

Other

1,867


1,626


5,432


4,646

Total operating expenses

19,884


16,413


58,493


47,622

Operating income

4,037


4,380


12,860


14,418









Other income (expense):








Interest income and other

(2)


2


2


57

Interest expense

(1,098)


(1,033)


(3,178)


(3,170)

Gain on settlement of debt

-


903


-


903

Gain (loss) on change in fair value

of derivative instruments

(17)


(216)


120


266

Income from continuing operations before income taxes

2,920


4,036


9,804


12,474

Income taxes

1,022


1,507


3,366


4,250

Income from continuing operations

1,898


2,529


6,438


8,224

Loss from discontinued operations, net of income taxes

(22)


(1,588)


(155)


(2,179)

Net income

1,876


941


6,283


6,045

Less: net income attributable to noncontrolling  interests

(53)


(53)


(159)


(159)

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

$     1,823


$      888


$    6,124


$   5,886









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








Income from continuing operations

$      0.19


$     0.25


$      0.65


$     0.81

Loss from discontinued operations

$     (0.00)


$    (0.16)


$     (0.02)


$    (0.22)

Net income

$      0.19


$     0.09


$      0.63


$     0.59

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








Income from continuing operations

$      0.19


$     0.25


$      0.65


$     0.81

Loss from discontinued operations

$     (0.00)


$    (0.16)


$     (0.02)


$    (0.22)

Net income

$      0.19


$     0.09


$      0.63


$     0.59

Weighted average number of common  shares outstanding:








Basic

9,725


9,924


9,710


9,968

Diluted

9,731


9,941


9,717


9,983

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 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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