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Rick’s Cabaret International, Inc. Reports Record Third Quarter Revenues Exceeding $20 Million, up 31% from Previous Year; Net Income at $1.78 Million
Posted by: gurufocus (IP Logged)
Date: August 12, 2009 04:59PM

Press Release: Rick’s Cabaret International, Inc. Reports Record Third Quarter Revenues Exceeding $20 Million, up 31% from Previous Year; Net Income at $1.78 Million

HOUSTON--(BUSINESS WIRE)--Rick’s Cabaret International, Inc. (NASDAQ: RICK), the leading operator of upscale gentlemen’s clubs nationwide, today reported record consolidated revenues of $20.9 million for its third quarter ended June 30, 2009, a 31 percent increase over the $15.9 million reported in the same period last year. The previous revenue high was $18.36 million in the second quarter of fiscal 2009.

Net after tax income was $1.78 million, compared with $1.83 million in the same quarter a year ago, a drop primarily attributed to higher marketing costs in connection with the nightclub in Las Vegas. Fully diluted income per share was 19 cents, compared with 21 cents a year ago. Compared with the results of the previous quarter ended March 31, 2009, after tax income was more than double the $839,471 reported for the second quarter and fully diluted earnings per share were also more than double the nine cents reported in the last quarter.

“We are pleased with the third quarter results, which clearly show a continuing improvement in both revenue and income,” said Eric Langan, President and CEO of the company, who will discuss the quarter and outlook for the future in a webcast and conference call at 4:30 p.m., ET, August 12th. The call is being webcast by Vcall and can be accessed at the Rick’s Cabaret website, ricks.com or www.InvestorCalendar.com. 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 when August 19, 2009. Please enter the number 286 when asked for the account, and then conference ID number 329965.

Revenues at nightclubs open for more than a year were $14.9 million, a decline of less than one percent compared with the same period a year earlier, and a significant improvement from the 6.9 percent decline reported for the second quarter. Media division revenues increased to $238,064 from $182,452 in the same quarter a year ago.

The company reported a significant improvement in operations for the quarter at Rick’s Cabaret Las Vegas, which trimmed losses to approximately $300,000 before income taxes. Meanwhile expense reductions and more aggressive marketing campaign at this location are in place, although we anticipate the club will continue to lose money until the Las Vegas economy improves.

   

RICK\'S CABARET INTERNATIONAL, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

 

 

FOR THE THREE MONTHS

ENDED JUNE 30,

FOR THE NINE MONTHS

ENDED JUNE 30,

   
2009 2008 2009 2008
(UNAUDITED) (UNAUDITED)
 
Revenues:
Sales of alcoholic beverages $ 8,036,630 $ 5,893,332 $ 21,559,360 $ 15,453,834
Sales of food and merchandise 1,653,317 1,335,247 4,633,122 3,670,545
Service revenues 10,137,435 7,722,864 26,997,164 20,321,251
Internet revenues 151,989 194,105 493,384 537,606
Media revenues 238,064 182,452 707,030 182,452
Other   717,398     612,006     1,911,553     1,610,075  
Total revenues 20,934,833 15,940,006 56,301,613 41,775,763
 
Operating expenses:
Cost of goods sold 2,276,895 1,817,417 6,701,022 4,641,398
Salaries and wages 4,061,735 3,694,824 12,209,897 9,269,903
Stock compensation 20,044 39,270 60,132 117,810
Other general and administrative:
Taxes and permits 2,407,100 1,937,975 7,043,013 5,016,950
Charge card fees 421,524 291,683 1,203,164 739,671
Rent 853,879 461,254 2,561,064 1,090,894
Legal and professional 567,790 540,910 1,878,540 1,419,008
Advertising and marketing 3,365,079 607,414 6,178,445 1,355,438
Insurance 330,496 158,502 833,881 508,802
Utilities 381,465 349,823 1,177,504 806,809
Depreciation and amortization 808,823 584,227 2,424,480 1,606,001
Other   1,471,905     1,439,224     4,158,183     3,495,665  
Total operating expenses   16,966,735     11,922,523     46,429,325     30,068,349  
Operating income 3,968,098 4,017,483 9,872,288 11,707,414
 
Other income (expense):
Interest income 1,113 22,083 8,507 91,555
Interest expense (811,686 ) (682,788 ) (2,447,989 ) (1,785,344 )
Loss on change in fair

value of derivative instruments

(121,904

)

 

-

(121,904

)

-

Minority interests   (73,500 )   (73,500 )   (220,500 )   104,412  
Income from continuing operations before income taxes

2,962,121

3,283,278

7,090,402

10,118,037

Income taxes   1,067,423     1,247,323     2,567,615     3,179,722  
Income from continuing operations   1,894,698     2,035,955     4,522,787     6,938,315  
Loss from discontinued operations, net of income taxes  

(110,205

)

 

(206,751

)

 

(1,107,991

)

 

(720,459

)

Net income $ 1,784,493   $ 1,829,204   $ 3,414,796   $ 6,217,856  

Basic earnings per share:

Income from continuing operations $ 0.21 $ 0.25 $ 0.49 $ 0.92
Loss from discontinued operations $ (0.01 ) $ (0.03 ) $ (0.12 ) $ (0.10 )
Net income $ 0.19 $ 0.22 $ 0.37 $ 0.83
Diluted earnings per share:
Income from continuing operations $ 0.20 $ 0.23 $ 0.48 $ 0.86
Loss from discontinued operations $ (0.01 ) $ (0.02 ) $ (0.12 ) $ (0.09 )
Net income $ 0.19 $ 0.21 $ 0.36 $ 0.77

Weighted average number of common

shares outstanding:

Basic 9,185,758 8,240,914 9,288,536 7,536,104
Diluted 9,409,562 8,860,699 9,499,015 8,238,094

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, New Orleans, Charlotte, Dallas, Houston, Minneapolis and other cities operate 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 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.

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.

Source: BusinessWire


Stocks Discussed: RICK,
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