Rick's Cabaret International, Inc. reports 23.3% growth in revenue and 21.1% growth in net income for its first quarter 2013

HOUSTON – (February 11, 2013) – Rick’s Cabaret International, Inc. (NASDAQ:RICK), the leading publicly traded group of gentlemen’s clubs, today reported growth in revenues and income for its first quarter ended December 31, 2012. Consolidated rervenues rose 23.3 percent from the previous year to $27.1 million while net income rose to $2.6 million from $2.2 or 21.1 percent. Earnings per share for the quarter were 28 cents compared with 23 cents last year.

“Our revenue growth of approximately $5.1 million in the first quarter was primarily driven by sales of clubs purchased in 2011 and 2012, which demonstrates the value of good acquisitions as an essential part of our growth strategy,” said Eric Langan, president and CEO of Rick’s Cabaret. “Our existing clubs are also doing well, with operating income exclusive of corporate overhead for same-location-same-period clubs operations increasing by 12.5 percent to $6.1 million for the quarter over last year.”

Mr. Langan will discuss the results in a conference call today at 4:30 p.m. ET that 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). A replay will be available until March 11, 2013 at 877-660-6853 (international 201-612-7415), using required replay conference ID 408352.

The company reported adjusted EBITDA* for the quarter ended Dec. 31, 2012 of $7.3 million compared with $5.5 million, an increase of 32.2 percent. Total operating expenses were $21.2 million for the quarter compared with $17.6 million last year. Key cost areas as a percentage of total cost remained stable for the quarter, with increases generally reflecting the addition of new clubs.

Other significant facts noted in the Form 10Q filed today with the SEC include:

• During the quarter service revenues increased to $12.7 million from $9.9 million while sales of alcoholic beverages rose to $10.4 million from $8.9 million.

• The company generated cash flows from operating activities of $6.2 million during the quarter, up 19.3 percent compared with $5.2 million in the previous year.

• During the three months ended December 31, 2012, the company purchased 45,733 shares of common stock in the open market at prices ranging from $7.84 to $8.26, as part of a $5 million stock buyback program authorized in 2008 by the Board of Directors.

 

* A definition of Adjusted EBITDA can be found on Page 20 of the Company’s Form 10Q filed with the SEC and available 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 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. 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.

Contact: Allan Priaulx, 212-338-0050, allan@ricks.com