Rick’s Cabaret Reports Third Quarter Revenue Increase

HOUSTON—Naked profits are on every business owner, manager and investor’s mind these days even more than usual, which is one reason that Rick’s Cabaret International, Inc. is so pleased to announce its third quarter revenue numbers. Rick’s Cabaret posted $20.8 million in its third quarter, which ended June 30; a 15.4 percent increase over the $18.0 million in the same period last year. The company reported adjusted EBITDA* of $6.0 million a 52.7 percent increase over $3.9 million in the same period last year. The company reported net income from continuing operations for the quarter of $2.5 million, compared with $1.1 million in 2010, with earnings per diluted share from continuing operations of 25 cents versus 11 cents last year. After accounting for a loss from discontinued operations including the now closed club inLas Vegas, net income was $888,000 versus $857,000. Net income per diluted share for both periods was nine cents. “With this quarter we have now put the pain of the Las Vegassituation behind us and we are well positioned to move forward on an apples-to-apples basis,” said Eric Langan, President and CEO of Rick’s Cabaret. “Apart from the Las Vegas loss, we had a strong third quarter, with increases in cash flows, EBITDA and income from continuing operations.  Our larger clubs across the country are doing well and we will have a positive outlook on the remainder of the year as long as the general economy maintains its present levels.” Mr. Langan discussed the third quarter results in detail during a conference call and webcast yesterday. The information is available though the Rick’s Cabaret investor website. The increase in total revenues was primarily attributable to clubs acquired during the past year, additional traffic generated during the NBA Championship series in Dallas and Miami, and gains at the Rick’s locations in San Antonio, North Austin and Minneapolis. Total revenues for same-location-same-period of club operations open more than one year increased by 9.0 percent to $19.2 million in the quarter from $17.6 million for the same period last year.  Comparable club operating income was $5.7 million compared with $4.7 million last year. Net cash generated from continuing operations was $13.7 million, compared with $12.0 million last year.  Interest expense dropped to $1.0 million from $1.2 million.