Rick’s Cabaret International, Inc. Reports Total Revenues Of $23.9
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 - 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.
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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, http://www.ricksinvestor.com or http://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 http://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 FOR THE THREE MONTHS FOR THE NINE MONTHS
per share data) ENDED JUNE 30, 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 (17) (216) 120 266
of derivative instruments
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
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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 .(JavaScript must be enabled to view this email address) or visit http://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 http://www.ricksinvestor.com.
SOURCE Rick’s Cabaret International, Inc.
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Rick’s Cabaret International, Inc.
CONTACT: Allan Priaulx, +1-212-338-0050, .(JavaScript must be enabled to view this email address)
Web Site: http://www.ricks.com