Rick's Cabaret International, Inc. First Quarter Revenues Climb 12 Percent; Adjusted EBITDA Rises To $5.5 Million
HOUSTON – (February 7, 2012) -- Rick’s Cabaret
International, Inc. (NASDAQ:RICK), the nation’s leading group of upscale
gentlemen’s clubs, had total revenues of $22.0 million in its first quarter
ended December 31, 2011, an increase of 12 percent over the same period last
year. Net income attributable to Rick’s Cabaret shareholders was $2.2 million,
compared with $2.1 million in the prior year, yielding 23 cents earnings per
share versus 21 cents last year.
The company will hold a conference to discuss results at 4:30
p.m. EST today. The call is being webcast by
Vcall and can be accessed at the Rick’s Cabaret investor website,
www.ricksinvestor.com or
www.InvestorCalendar.com . The toll free participant dial-in number is
877-407-8033 (International 201-689-8033). The toll free replay numbers are:
domestic 877-660-6853, international 201-612-7415. Required replay pass codes
are: Account 286 and Conference ID 387989. The replay will be available until
March 9, 2012.
The increase in revenues was primarily attributable to sales increases at most
of the company’s existing clubs, along with sales at new clubs acquired within
the past year. As earlier announced, comparable sales at clubs open for more
than one year rose by 6.7 percent to $20.6 million. Cash flow generated from
operating activities during the quarter was $5.2 million, compared with $2.9
million in the same quarter a year earlier.
Operating income (exclusive of corporate overhead) for
same-location-same-period of club operations increased to $5.7 million for the
three months ended December 31, 2011 from $5.4 million for same period ended
December 31, 2010, or by 4.5 percent. Adjusted EBITDA* for the three months
ended December 31, 2011 was $5.5 million, compared with $5.3 million in the
previous year.
“We had a solid quarter with better than expected revenue
increases from several of our clubs in Texas, Minnesota and the Club Onyx
locations,” said Eric Langan, President and CEO of Rick’s Cabaret. “We
experienced increases in some expenses that we are now addressing in areas such
as cost of goods sold; wages, depreciation and amortization related to the new
clubs; legal; other operating costs; and taxes due to the new clubs in Texas. We
remain on track for a strong year.”
*Adjusted EBITDA is a financial statement measure that was
not derived in accordance with GAAP. We use adjusted EBITDA (earnings 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.
CONSOLIDATED STATEMENT OF INCOME
|
|
Three Months Ended
December 31, |
|
(in thousand, except per
share data) |
2011 |
2010 |
| |
(UNAUDITED) |
| Revenues: |
|
|
| Sales of alcoholic
beverages |
$
8,916 |
$
7,758 |
| Sales of food and merchandise |
1,997 |
1,699 |
| Service revenues |
9,886 |
9,008 |
| Internet revenues |
102 |
125 |
| Media revenues |
183 |
216 |
| Other |
935 |
862 |
| Total revenues |
22,019 |
19,668 |
| |
|
|
| Operating expenses: |
|
|
| Cost of goods sold |
2,932 |
2,418 |
| Salaries and wages |
4,925 |
4,361 |
| Stock-based compensation |
8 |
- |
| Other general and
administrative: |
|
|
| Taxes and permits |
3,447 |
2,914 |
| Charge card fees |
308 |
320 |
| Rent |
703 |
775 |
| Legal and
professional |
700 |
440 |
| Advertising and marketing |
995 |
971 |
| Depreciation and
amortization |
1,120 |
906 |
| Insurance |
292 |
269 |
| Utilities |
404 |
366 |
| Other |
1,818 |
1,480 |
| Total operating
expenses |
17,652 |
15,220 |
| |
|
|
| Income from
operations |
4,367 |
4,448 |
| |
|
|
| Other income
(expense): |
|
|
| Interest income and other |
2 |
12 |
| Interest expense |
(973) |
(1,076) |
| Gain on change in
fair value of derivative instruments |
98 |
148 |
| |
|
|
| Income from continuing operations
before income taxes |
3,494 |
3,532 |
| |
|
|
| Income taxes |
1,208 |
1,153 |
| |
|
|
| Income from continuing operations |
2,286 |
2,379 |
| Loss from discontinued operations,
net of income taxes |
(48) |
(250) |
| |
|
|
| Net income |
2,238 |
2,129 |
| Less: net income attributable to
noncontrolling interests |
(53) |
(53) |
| Net income attributable to Rick’s
Cabaret International, Inc. |
$
2,185
 |
$
2,076
|
| Basic earnings
(loss) per share attributable to Rick’s shareholders: |
|
|
| Income from continuing operations |
0.23 |
0.27 |
| Loss from
discontinued operations |
(0.00) |
(0.00) |
| Net income |
0.23
|
0.21
|
| Diluted earnings
(loss) per share attributable to Rick’s shareholders: |
|
|
| Income from continuing operations |
$
0.23 |
$
0.21 |
| Loss from
discontinued operations |
(0.00) |
(0.00) |
| Net income |
$
0.23
|
$
0.21
|
| |
|
|
| Weighted average number of common
shares outstanding: |
|
|
| Basic |
9,685 |
10,043 |
| Diluted |
9,687 |
10,045 |
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,
Houston, Minneapolis, Indianapolis 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 or visit
www.ricksinvestor.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 www.ricksinvestor.com.
Contact: Allan Priaulx, 212-338-0050,
allan@ricks.com