RCI Hospitality Holdings Inc (RICK)

[pepeoil]

Rick home office raided. Wow

[Nikodemos]

Yes B (per PM), you'll see WHEN I SOLD by my comments & CHART!!

Now, we'll see what's UP NEXT. Will the $70 (6-mo bottom per charts) hold (on the retrace)? I'm going to guess that AS OF THIS WRITING, the retrace will be DEEPER. As people start LOSING PROFITS, they tend towards PANICKING & selling soas NOT to miss out on their gains! The momo trend will be IMV downward in the near-term....

The stock KEPT CLIMBING, & that can only be sustained for so long -- without a SERIOUS MARKET DRIVER (like HUGE sustainable PROFITS). With inflation on the rise, it SHOULD CUT INTO disposable income & SO I predict(ed) -- privately -- that stocks like this would have the KINDS OF HEADWINDS that lead to a retrace. Not ALL sin stocks (tobacco, alcohol, cheaper "luxuries" that HAVE NOT had these kinds of gains!) are worth looking into...

The ONLY thing to watch HERE now is how LOW will this retrace. At some point the risk of buying & supporting has to outweighed by the PROFIT potential. That, in my view, is NOT the case here. This is a stock to SHORT in the near-term BECAUSE of the economics, inflation, disposable income, trend, risk, etc.. I'd GUESS that it breaks DOWN THROUGH $70 sometime in the next 3-6mos before it a bottom can be identified as a GOOD RISK-REWARD set-up.

Been doing this a LONG TIME. From a probability standpoint I think the stock sinks lower... But,.. TIME WILL TELL: ALWAYS DOES!! GLA

[CK-verse]

CONGRAT$. Great timing finding this GEM at sub-$10s. They say "Timing is EVERYTHING".

[Nikodemos]

There's NOTHING to complain about!

Everything, especially since just before covid ROCKED our world's has been going SWIMMINGLY!!

So happy & LUCKY to have targeted a "sin stock" & found this gem when I did... The hardest part was taking a leap of faith on the extensive DD because, as most of you probably KNOW, fishing with sub-$10 stocks, ESPECIALLY when this broke it's THEN ~8-yr ($6.88 & $7.20) double-bottom in early-2020 took some doing!

But it was THE BEST IN CLASS "sin stock" with the most upside I could find... So I went with the THESIS & instincts. Never ever having EVER been to one of their 'restaurant/entertainment establishments', but so glad I followed my gut!

This has been a MULTIPLE winner-winner -- & there is NOTHING to complain about regarding the way they are operating & running their business -- At least from my pov!

This one gave me a TRIPLE nearly right away --- came off some EXECTING profit-taking & (as you can see with your OWN EYES: https://stockcharts.com/h-sc/ui ) RAN another 8x+ MONEY!!

GLA

[pepeoil]

I have been to a few of their clubs in Texas and the entertainment was pretty disgusting. However, the bank account continues to grow from this one. Lol

[Gator44]

They're kicking ads here.

[SidVicious]

this is truly a growth stock!

[iwonone]

With all the stock price Appreciation that I have observed with ricks over the years for the life of me I can’t understand why some of that $ just doesn’t flow into scores (scrh)to help the competition don’t figure. Will there ever be a time in the sun for the scrh holders??

[TFMG]

$RICK | #RCIHospitality Holdings Inc Bullish Channel Trade


Short interest - 15%
. operates as a holding company, which engages in hospitality activities and related businesses. Through its subsidiaries, it offers live adult entertainment and bar operations. It operates through the following segments; Nightclubs, Bombshell and other. The Nightclubs segment operates adult entertainment clubs. Its major brands include Rick's Cabaret, Jaguar's Club, Tootsie's Cabaret, XTC Cabaret and Club Onyx. The Bombshell segment operates restaurants in Texas, Dallas, Austin and Houston. The Other segment includes media which is a business communications company. The company was founded by Robert L. Watters in 1983 and is headquartered in Houston, TX .

[BurgerKing82]

Board has been quiet for 2 years—-Why???......Not a Bad day so far....

[shotgun]

bought back in late 08 for $4 and sold today for $20 and bought ANH with the proceeds...ANH pays a 10% dividend

[legendsroomlv]

We are in the same industry. Definitely seeing an uptick.

[cdaniel394]

I just found Rick's the other day, Will be DD'ing it. Look's promising.

[legendsroomlv]

No one here? Wonder why not. Great opportunities.

[Drmicrocap]

IN THE NEWS: RICK

[Drmicrocap]

IN THE NEWS: RICK

[ChrisJP]

wow up 50% in a month.

After YEARS of doing nothing.

Chris

[stocktrademan]

RiCK bullish 15.66


http://www.rcihospitality.com/
http://rickscabaret.com/

normal chart




log chart

[Drmicrocap]

IN THE NEWS: RICK BEATS BY .03

[Drmicrocap]

RCI Continues Rebound with 2Q16 EPS at $0.54 GAAP & $0.40 Non-GAAP
PR Newswire RCI Hospitality Holdings, Inc.
May 10, 2016 4:05 PM
????
HOUSTON, May 10, 2016 /PRNewswire/ -- RCI Hospitality Holdings, Inc. (RICK) today announced its performance continued to rebound in the fiscal 2016 second quarter ended March 31, 2016.

View photo
.RCI Hospitality Holdings Corporate Logo (PRNewsFoto/RCI Hospitality Holdings, Inc.)
2Q16 Highlights

GAAP EPS diluted was $0.54, which included a $1.75 million tax credit. Excluding non-recurring items, non-GAAP* EPS diluted was $0.40.
In the year ago quarter, GAAP EPS was a loss of ($0.28), which included a $10.3 million pre-tax expense for a legal settlement. Non-GAAP EPS diluted was $0.44. 2Q15 was a record quarter for sales and non-GAAP earnings.
2Q16 results reflect a continued recovery in performance following a falloff after 2Q15.
2Q16 free cash flow (FCF) totaled $6.4 million, the second largest quarter on record, and $10.3 million for the first half of FY16.
As a result, RCI has revised its FY16 FCF target upward to $16-$19 million from $15-18 million.
Cash Dividend & Share Buy Backs

RCI accelerated its share buyback program in FY16, taking advantage of its strong FCF to return capital to shareholders.
Through April 30, 2016, the company purchased 566,921 common shares to date in FY16 at a cost of $5.4 million, reducing shares outstanding to 9.889 million from 10.348 million a year ago.
RCI yesterday announced a $5.0 million increase in its authorization to repurchase common shares, resulting in a total of $6.2 million available to buy back stock.
RCI also announced yesterday the company's 3Q16 $0.03 dividend will be paid June 27, 2016 to shareholders of record June 10, 2016.
Conference Call

A conference call to discuss these results, outlook and related matters will be held today at 4:30 PM ET
Dial In: 877-407-9210 (toll free) or 201-689-8049 (domestic or international)
Webcast URL: http://www.investorcalendar.com/event/174973
Meet Management Tonight

Eric Langan, President & CEO, invites investors to meet management and tour one of the company's top clubs.

When: Tonight, May 10, 2016, 6:00 PM to 8:00 PM ET
Where: Rick's Cabaret New York, at 50 W. 33rd Street, between Fifth Avenue and Broadway
RSVP: With your contact information to [e-mail]
CEO Comment

"We are pleased 2Q16 revenues, margins, profits and free cash flow performed better than our original expectations," Mr. Langan said.

"This is especially encouraging as we were up against our largest sales quarter ever in the year ago period. Moreover, two clubs were closed in 2Q16 undergoing reformatting and remodeling.

"Our FY16 plan is to continue to grow margins, EPS and FCF on what we expect to be flattish revenues on an annual basis, while adhering to our capital allocation policy.

"Costs as a percentage of revenues are going down. Operating margin has improved two quarters in a row.

"Sales are moving in the right direction. Same store sales were nearly level with the year-ago quarter. 3Q16 should benefit from reopening of the two reformatted clubs, and we anticipate opening the first sports-themed club in Manhattan in 4Q16.

"As a result of our first six months' performance, we have increased our FY16 free cash flow target to $16-$19 million.

"The company remains committed to our capital allocation policy of using FCF to enhance shareholder value through share repurchases and dividends. As part of this policy, we will continue to evaluate the risk adjusted returns on capital expenditures or acquisitions relative to the after tax yield on free cash flow we can obtain by repurchasing our own shares.

"While opportunities may arise to acquire or open new units or pay down debt ahead of schedule, we generally believe the best allocation of our capital is the risk-adjusted, after-tax, FCF yield of buying our own shares as long as our stock stays at this low valuation relative to RCI's cash flow generation."

2Q16 Analysis

Total Revenues

Total revenues of $34.4 million increased $0.9 million or 2.8% from 1Q16, reflecting improvements in almost all major categories.
High-margin service revenues increased $0.6 million or 4.5% from 1Q16 as club customers began to spend more per visit and new marketing strategies started to prove effective. Food sales increased $0.3 million or 6.3% from 1Q16 due to Bombshells' growing business.
Same store sales of $32.9 million declined only 0.9% year over year, representing a significant increase from our performance in 1Q16 and 4Q15.
Operating Income & Margin

Income from operations was $7.6 million, or 22.0% of revenues, up from 17.1% in 1Q16.
Excluding non-recurring items, non-GAAP operating income was $7.9 million, or 23.1% of revenues, up from 19.7% in 1Q16.
The improvement in operating income as compared to 1Q16 reflects the increase in sales, in particular service revenues, as well as reduced costs as a percentage of revenues.
2Q16 Segment Analysis

Nightclubs

Sales of $29.1 million compared to $29.9 in the year ago quarter, with 36 units in operation compared to 40.
Operating income was $9.7 million, or 33.5% of revenues, compared to a loss of ($0.8) million, or (2.7%), in 2Q15.
Non-GAAP operating income was $9.8 million, or 33.7% of revenues, compared to $9.5 million, or 31.7%, in 2Q15.
Bombshells

Sales of $4.6 million compared to $4.4 million in the year ago quarter, with five units in operation in both periods.
Operating income was $0.64 million compared to $0.46 million in 2Q15.
Operating margin was 13.9% compared to 10.3% in 2Q15.
2Q16 Other Metrics

Occupancy Costs: Occupancy costs, which the company measures as a combination of rent plus interest expense, declined to 8.2% of revenues compared to 8.5% in 2Q15. The decline reflects significantly lower rent due to the acquisitions of club real estate in New York City in early 2Q16 and of Miami Gardens in 4Q15.
Effective Tax Rate: $1.75 million was deducted from income tax expense, due to the benefit of certain FICA credits not previously claimed. Excluding this deduction, RCI would have paid an effective tax rate of 36.6%.
Adjusted EBITDA & Free Cash Flow: RCI's cash generating power, as reflected by adjusted EBITDA, amounted to $9.7 million compared to $8.2 million in 1Q16. As a result, RCI generated FCF of $6.4 million compared to $3.9 million in 1Q16.
Balance Sheet (March 31, 2016 compared to December 31, 2015): Total stockholders' equity increased to $131.9 million from $128.2 million due to the increase in retained earnings partially offset by share buy backs.
*Non-GAAP Financial Measures

In addition to our financial information presented in accordance with GAAP, management uses certain "non-GAAP financial measures" within the meaning of the SEC Regulation G, to clarify and enhance understanding of past performance and prospects for the future. Generally, a non-GAAP financial measure is a numerical measure of a company's operating performance, financial position or cash flows that excludes or includes amounts that are included in or excluded from the most directly comparable measure calculated and presented in accordance with GAAP. We monitor non-GAAP financial measures because it describes the operating performance of the company and helps management and investors gauge our ability to generate cash flow, excluding some non-recurring charges that are included in the most directly comparable measures calculated and presented in accordance with GAAP. Relative to each of the non-GAAP financial measures, we further set forth our rationale as follows:

Non-GAAP Operating Income and Non-GAAP Operating Margin. We exclude from non-GAAP operating income and non-GAAP operating margin amortization of intangibles, gain on settlement of patron tax case, pre-opening costs, gains and losses from asset sales, gain on settlement of patron tax issue, impairment of assets, pre-opening costs, stock-based compensation charges, litigation and other one-time legal settlements and acquisition costs. We believe that excluding these items assists investors in evaluating period-over-period changes in our operating income and operating margin without the impact of items that are not a result of our day-to-day business and operations. While we were in litigation in the patron tax case, we also included patron taxes as an exclusion, but after settlement of the case, we no longer exclude patron taxes from operating income.
Non-GAAP Net Income and Non-GAAP Net Income per Basic Share and per Diluted Share. We exclude from non-GAAP net income and non-GAAP net income per diluted share and per basic share amortization of intangibles, gain on settlement of patron tax case, pre-opening costs, income tax expense, impairment charges, gains and losses from asset sales, stock-based compensation, litigation and other one-time legal settlements, gain on contractual debt reduction and acquisition costs, and include the Non-GAAP provision for income taxes, calculated as the tax-effect at 35% effective tax rate of the pre-tax non-GAAP income before taxes less stock-based compensation, because we believe that excluding such measures helps management and investors better understand our operating activities. While we were in litigation in the patron tax case, we also included patron taxes as an exclusion, but after settlement of the case, we no longer exclude patron taxes from net income.
Adjusted EBITDA. We exclude from Adjusted EBITDA depreciation expense, amortization of intangibles, income tax, interest expense, interest income, gains and losses from asset sales, pre-opening costs, acquisition costs, litigation and other one-time legal settlements, gain on settlement of patron tax case, gain on contractual debt reduction and impairment charges because we believe that adjusting for such items helps management and investors better understand operating activities. 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.
Other Notes

Starting with 1Q16, total revenues (including prior comparable periods) are being reported net of sales taxes and other revenue related taxes, RCI having chosen to early adopt new revenue accounting standards.
Free cash flow is defined as cash flows from operating activities less maintenance capex.
Unit counts are at period end.
About RCI Hospitality Holdings, Inc. (RICK)

With 43 units, RCI Hospitality Holdings, Inc., through its subsidiaries, is the country's leading company in gentlemen clubs and sports bars/restaurants. Clubs in New York City, Miami, Philadelphia, Charlotte, Dallas/Ft. Worth, Houston, Minneapolis, Indianapolis and other cities operate under brand names, such as "Rick's Cabaret," "XTC," "Club Onyx," "Vivid Cabaret," "Jaguars" and "Tootsie's Cabaret." Sports bars/restaurants operate under the brand name "Bombshells." Please visit http://www.rcihospitality.com/

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 cybersecurity, 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. The company has no obligation to update or revise the forward-looking statements to reflect the occurrence of future events or circumstances.



RCI HOSPITALITY HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF INCOME


















FOR THE THREE MONTHS


FOR THE SIX MONTHS

ENDED MARCH 31,
ENDED MARCH 31,
(in thousands, except per share data)

2016


2015


2016


2015


(UNAUDITED)


(UNAUDITED)
Revenues:















Sales of alcoholic beverages

$
14,581


$
14,311


$
29,178


$
28,316
Sales of food and merchandise


4,609



4,837



8,943



9,670
Service revenues


13,205



13,847



25,846



27,376
Other


2,001



1,994



3,904



3,832
Total revenues


34,396



34,989



67,871



69,194
















Operating expenses:















Cost of goods sold


5,227



5,381



10,411



10,492
Salaries and wages


7,917



8,115



16,052



16,147
Stock compensation


120



120



240



240
Other general and administrative:















Taxes and permits


3,274



3,288



6,501



6,399
Charge card fees


557



544



1,170



1,091
Rent


859



1,184



1,807



2,325
Legal and professional


982



1,064



2,087



2,023
Advertising and marketing


1,225



1,312



2,530



2,679
Insurance


907



801



1,781



1,621
Utilities


694



708



1,404



1,442
Depreciation and amortization


1,826



1,886



3,643



3,531
(Gain) loss on sale of property and marketable securities


(127)



(18)



(127)



(18)
Impairment of assets


-



-



-



1,358
Settlement of lawsuits and other one-time costs


62



10,303



602



10,550
Other


3,323



2,917



6,503



5,790
Total operating expenses


26,846



37,605



54,604



65,670
Operating income (loss)


7,550



(2,616)



13,267



3,524
















Other income (expense):















Interest income


1



26



3



39
Interest expense


(1,965)



(1,783)



(3,878)



(3,402)
Gain from acquisition of controlling interest in subsidiary


-



-



-



577
Income (loss) before income taxes


5,586



(4,373)



9,392



738
Income taxes (benefit)


293



(1,265)



1,660



581
Net income (loss)


5,293



(3,108)



7,732



157
Less: net loss attributable to noncontrolling interests


212



267



325



362
Net income (loss) attributable to RCI Hospitality Holdings, Inc.

$
5,505


$
(2,841)


$
8,057


$
519
















Basic earnings (loss) per share attributable to RCIHH shareholders:















Net income

$
0.55


$
(0.28)


$
0.79


$
0.05
Diluted earnings (loss) per share attributable to RCIHH shareholders:















Net income

$
0.54


$
(0.28)


$
0.78


$
0.05
















Weighted average number of common shares outstanding:















Basic


10,013



10,275



10,154



10,269
Diluted


10,215



10,275



10,356



10,273
















Dividends per share

$
0.03


$
-


$
0.03


$
-


RCI HOSPITALITY HOLDINGS, INC.
NON-GAAP FINANCIAL MEASURES













FOR THE THREE MONTHS

FOR THE SIX MONTHS

FOR THE THREE MONTHS


ENDED MARCH 31,

ENDED MARCH 31,

ENDED DECEMBER 31,
($ in thousands, except per share data)

2016

2015

2016

2015

2015











Reconciliation of GAAP net income to Adjusted EBITDA










GAAP net income (loss)

$5,505

($2,841)

$8,057

$519

$2,552
Income tax expense

293

(1,265)

1,660

581

1,367
Interest expense and income and gain on Drink Robust investment

1,964

1,757

3,875

2,786

1,911
Litigation and other one-time legal settlements

62

10,303

602

10,550

540
Pre-opening costs

-

268

-

328

-
Acquisition costs

-

95

-

178

-
Impairment of assets

-

-

-

1,358

-
Depreciation and amortization

1,826

1,886

3,643

3,531

1,817
Adjusted EBITDA

$9,650

$10,203

$17,837

$19,831

$8,187











Reconciliation of GAAP net income (loss) to non-GAAP net income










GAAP net income (loss)

$5,505

($2,841)

$8,057

$519

$2,552
Amortization of intangibles

197

336

399

579

202
Gain on Drink Robust investment

-

-

-

(577)

-
Stock-based compensation

120

120

240

240

120
Litigation and other one-time settlements

62

10,303

602

10,550

540
Pre-opening costs

-

268

-

328

-
Income tax expense

293

(1,265)

1,660

581

1,367
Acquisition costs

-

95

-

178

-
Impairment of assets

-

-

-

1,358

-
Non-GAAP provision for income taxes

(2,120)

(2,414)

(3,751)

(4,731)

(1,673)
Non-GAAP net income

$4,057

$4,602

$7,207

$9,025

$3,108











Reconciliation of GAAP diluted net income per share to non-GAAP diluted net income per share










Fully diluted shares

10,215

10,275

10,356

10,273

10,635
GAAP net income (loss)

$0.54

($0.28)

$0.78

$0.05

$0.25
Amortization of intangibles

0.02

0.03

0.04

0.06

0.02
Gain on Drink Robust investment

-

-

-

(0.06)

-
Stock-based compensation

0.01

0.01

0.02

0.02

0.01
Litigation and other one-time settlements

0.01

1.00

0.06

1.03

0.05
Pre-opening costs

-

0.03

-

0.03

-
Income tax expense

0.03

(0.12)

0.16

0.06

0.13
Acquisition costs

-

0.01

-

0.02

-
Impairment of assets

-

-

-

0.13

-
Non-GAAP provision for income taxes

(0.21)

(0.23)

(0.36)

(0.46)

(0.16)
Non-GAAP diluted net income per share

$0.40

$0.44

$0.70

$0.88

$0.30











Reconciliation of GAAP operating income to non-GAAP operating income










GAAP operating income (loss)

$7,550

($2,616)

$13,267

$3,524

$5,717
Amortization of intangibles

197

336

399

579

202
Stock-based compensation

120

120

240

240

120
Impairment of assets

-

-

-

1,358

-
Litigation and other one-time settlements

62

10,303

602

10,550

540
Pre-opening costs

-

268

-

328

-
Acquisition costs

-

95

-

178

-
Non-GAAP operating income

$7,929

$8,506

$14,508

$16,757

$6,579











Reconciliation of GAAP operating margin to non-GAAP operating margin










GAAP operating income

22.0%

-7.5%

19.5%

5.1%

17.1%
Amortization of intangibles

0.6%

1.0%

0.6%

0.8%

0.6%
Stock-based compensation

0.3%

0.3%

0.4%

0.3%

0.4%
Impairment of assets

0.0%

0.0%

0.0%

2.0%

0.0%
Litigation and other one-time settlements

0.2%

29.4%

0.9%

15.2%

1.6%
Pre-opening costs

0.0%

0.8%

0.0%

0.5%

0.0%
Acquisition costs

0.0%

0.3%

0.0%

0.3%

0.0%
Non-GAAP operating margin

23.1%

24.3%

21.4%

24.2%

19.7%


RCI HOSPITALITY HOLDINGS, INC.
SEGMENT INFORMATION


















FOR THE THREE MONTHS


FOR THE SIX MONTHS


ENDED MARCH 31,


ENDED MARCH 31,
(in thousands)

2016


2015


2016


2015
















Business segment sales:















Nightclubs

$
29,062


$
29,916


$
57,514


$
59,030
Bombshells


4,629



4,448



9,008



8,982
Other


705



625



1,349



1,182


$
34,396


$
34,989


$
67,871


$
69,194
















Business segment operating income (loss):















Nightclubs

$
9,734


$
(818)


$
18,195


$
6,836
Bombshells


643



457



1,245



882
Other


(799)



(724)



(1,504)



(1,189)
General corporate


(2,028)



(1,531)



(4,669)



(3,005)


$
7,550


$
(2,616)


$
13,267


$
3,524
















Reconciliation of Nightclubs GAAP operating income to non-GAAP operating income















Nightclubs operating income

$
9,734


$
(818)


$
18,195


$
6,836
Impairment of assets


-



-



-



1,358
Settlement of lawsuits and other one-time costs


62



10,303



602



10,550
Nightclubs non-GAAP operating income

$
9,796


$
9,485


$
18,797


$
18,744
















Nightclubs non-GAAP operating margin


33.7%



31.7%



32.7%



31.8%

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RCI Hospitality Announces 4Q15 & FY15 Club & Restaurant Sales

- FY15 Sales of $142.1 Million - Up 11.6% vs. FY14
- 4Q15 Sales of $34.0 Million - Up 3.9% vs. 4Q14


.

PR Newswire
RCI Hospitality Holdings, Inc.
October 8, 2015 9:00 AM


HOUSTON, Oct. 8, 2015 /PRNewswire/ -- RCI Hospitality Holdings, Inc. (RICK) today announced total sales at adult clubs and bars/restaurants for the fiscal fourth quarter and year ended September 30, 2015. RCI expects to announce 4Q15 and FY15 results on December 14, 2015.




..
View photo
.RCI HOSPITALITY HOLDINGS INC
FY15 vs. FY14
•Total club and restaurant sales reached $142.1 million compared to $127.4 million.
•Same store sales were $110.6 million compared to $111.3 million.
•Nightclubs segment sales totaled $123.0 million compared to $121.2 million.
•Bombshells segment sales totaled $19.1 million compared to $6.2 million.

4Q15 vs. 4Q14
•Total club and restaurant sales reached $34.0 million compared to $32.7 million.
•Same store sales were $29.9 million compared to $31.6 million.
•Nightclubs segment sales totaled $29.4 million compared to $30.1 million.
•Bombshells segment sales totaled $4.6 million compared to $2.5 million.

In 4Q15, there were 45 units (40 clubs and 5 Bombshells) versus 46 in 4Q14 (43 clubs and 3 Bombshells). During 4Q15, Union Square nightclub in Fort Worth was closed.

CEO Comment
Eric Langan, President and CEO, commented, "We're pleased to see a 3.9% year over year increase in quarterly sales and an 11.6% increase in annual sales.

"This continues to demonstrate the soundness of our bar/restaurant strategy, which saw Bombshells segment sales up 84% in 4Q15 and up more than 200% in FY15, and the success of our January acquisition of Down in Texas Saloon in Austin, TX, and the May acquisition of The Seville Club of Minneapolis.

"For FY15, same store sales were nearly level, but down 5.6% for 4Q15. During the quarter, selected units in Texas were soft, but larger clubs around the country did well, with Tootsie's Cabaret up 5.5%, Rick's Cabaret New York up 5.2%, Vivid Cabaret New York up 7.6%, and Jaguars Phoenix up 12.3%.

"Over the course of the year, while customer traffic was good, spending per customer eased, perhaps reflecting general economic uncertainty. We also saw more traditional patterns in our business, where we experience a stronger first half and a softer second half. In response, we're making major adjustments in promotions and other factors."

About RCI Hospitality Holdings, Inc. (RICK)
With 45 units, RCI Hospitality Holdings, Inc., through its subsidiaries, is the country's leading company in adult gentlemen clubs and sports bars/restaurants. Adult clubs in New York City, Miami, Philadelphia, Charlotte, Dallas/Ft. Worth, Houston, Minneapolis, Indianapolis and other cities operate under brand names, such as "Rick's Cabaret," "XTC," "Club Onyx," "Vivid Cabaret," "Jaguars" and "Tootsie's Cabaret." Sports bars/restaurants operate under the brand name "Bombshells." Please visit http://www.rcihospitality.com/

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. The company has no obligation to update or revise the forward-looking statements to reflect the occurrence of future events or circumstances.

All references to, the "company," "we," "our," and similar terms include RCI Hospitality Holdings, Inc. and its subsidiaries, unless the context indicates otherwise.

[Drmicrocap]

RCI Hospitality Holdings, Inc. Reports Fiscal 3Q15 Results

GAAP EPS of $0.78 Up 11x YoY on Gain from Tax Settlement


RCI Hospitality Holdings, Inc.
21 hours ago


HOUSTON, Aug. 10, 2015 /PRNewswire/ -- RCI Hospitality Holdings, Inc. (RICK) today announced results for the fiscal 2015 third quarter ended June 30, 2015.




..
View photo
.RCI HOSPITALITY HOLDINGS INC
3Q15 Highlights
•GAAP EPS diluted of $0.78 includes the previously announced gain from the settlement of the Patron Tax issue with the State of Texas. This compares to $0.07 in 3Q14.
•Non-GAAP EPS* diluted of $0.32 increased 6.7% from $0.30 in 3Q14. Non-GAAP EPS excludes the above mentioned tax settlement as well as other items from both periods for comparability.
•Total revenues of $35.8 million grew 7.3% year over year.
•$2.3 million used to buy back shares in the open market in the first nine months of Fiscal 2015.
•Company on track for a solid FY15 and another year of growth in FY16.

Conference Call

A conference call to discuss these results, outlook and related matters will be held today, August 10, 2015, at 4:30 PM ET:
•Live Participant Dial In (Toll Free): 877-407-9210
•Live Participant Dial In (International): 201-689-8049
•Webcast URL: http://www.investorcalendar.com/event/174217

Meet Management

Eric Langan, President and CEO, invites investors for a "Due Diligence Ball" to meet, talk and tour one of RCI's top revenue generating clubs.
•When: Monday, August 10, 2015, 6:00 PM to 8:00 PM ET
•Where: Vivid Cabaret New York, 61 W 37th St, NY, NY 10018, bet. 5th and 6th avenues
•RSVP: By 5:00 PM ET, August 10, 2015, with your contact information, to [e-mail]

CEO Comment

"We're pleased to have generated a 6.7% year over year increase in non-GAAP EPS on a 7.3% year over year in total revenues in 3Q15 despite particularly bad weather in Texas that affected sales there," said Mr. Langan.

"This underscores the soundness of our bar/restaurant strategy, reflecting Bombshells sales up more than threefold year over year; the success of new clubs and our recent acquisitions; and the elimination of some underperforming clubs last year.

"We are particularly pleased to have settled the Texas Patron Tax issue. This resulted in a pre-tax gain of $8.2 million, increasing GAAP EPS to $0.78. This gain will cover close to 80% of 2Q15's New York federal wage and hour class action settlement, which is being implemented as planned.

"Also during 3Q15, we continued to repurchase stock in the open market, reflecting confidence in our favorable outlook, combined with the market's undervaluation of our shares.

"We are on track for a solid Fiscal 2015. Year to date, total revenues are up 14.7%, adjusted EBITDA is up 16.9%, and GAAP EPS and non-GAAP EPS are both up 23.2%. With better weather, same store sales have begun to rebound in 4Q15. Recently, we acquired the retail plaza in Florida where Tootsie's Cabaret, our largest adult club subsidiary and the plaza's largest tenant, is located. We expect this transaction to also be accretive.

"We look forward to Fiscal 2016 as another year of continued growth. With all major outstanding issues behind us, we'll have the ability to apply even more cash generated toward the repurchase of shares."

3Q15 Analysis (all comparisons to 3Q14 unless otherwise noted)

Total Revenues
•Total revenues of $35.8 million compared to $33.3 million, up 7.3%.
•46 units in operation versus 43, up 7.0%.
•Same store sales declined 5.3% due to unusually severe rain and flooding in Texas that affected our nightclub segment, in particular, as previously announced.
•Units opened less than a year added $5.2 million from new adult clubs – Rick's Cabaret in Odessa, TX, the January acquisition of Down in Texas Saloon in Austin, TX, and the May acquisition of The Seville Club of Minneapolis, plus new Bombshells in Austin, Spring, and Houston, TX.

Operating Margin & Costs (as % of revenues)
•GAAP operating margin was 39.6% compared to 8.7%. 3Q15 benefitted from the $8.2 million gain from the settlement of the Texas Patron Tax. 3Q14 was adversely affected by $3.2 million from the settlement of lawsuits and other one-time costs.
•As reported, in May RCI reached a settlement with the State of Texas over payment of a Patron Tax on adult club customers. RCI agreed to pay $10.0 million in taxes owed in 84 equal monthly installments without interest and to remit the tax on a monthly basis going forward. Because RCI had accrued more than the $10 million owed, the company recorded an $8.2 million pre-tax gain in 3Q15.
•Non-GAAP operating margin, which excludes the gain and certain other non-operating items from both periods for more meaningful analysis, was 18.3% compared to 19.6%. 3Q14 primarily reflects growth of the Bombshells segment, whose margins, while growing, are less than that of the nightclub segment.

Adjusted EBITDA
•RCI's cash generating power for the quarter, as reflected by adjusted EBITDA, amounted to $8.2 million, up 6.1% from $7.7 million in the year ago quarter.

Business Segments (all comparisons to 3Q14 unless otherwise noted)

Nightclubs
•Includes 41 units, the same as in the year ago quarter.
•Sales of $30.6 million compared to $31.5 million, a 2.9% decline.
•Operating income of $17.3 million compared to $8.5 million.
•Adjusted operating income, which excludes the previously mentioned gain and certain other non-operating items from both periods for more meaningful analysis, was $9.1 million (29.8% of sales) compared to $11.8 million (37.3% of sales).
•In May, RCI subsidiaries acquired The Seville Club, a popular gentlemen's club in Minneapolis, for total consideration of $8.5 million.
•In August, an RCI subsidiary acquired the Miami Gardens Square retail plaza in Florida, where Tootsie's Cabaret is located. Total consideration of $15.3 million consisted of $3.975 million in cash and a 5.45%, $11.325 million bank loan.

Bombshells
•Includes five Bombshells, all in Texas, compared to two in the year ago quarter.
•Sales totaled $4.8 million, up from $1.6 million.
•Operating income improved to a profit of $369,000 compared to a loss of $170,000, a $539,000 turnaround.
•Operating margin expanded to 7.7% of revenues from (10.7%) and should increase as revenues continue to build and training costs subside.

Balance Sheet (June 30, 2015 compared to March 31, 2015)
•Assets increased 1.7% to $265.0 million, primarily due to the acquisition of The Seville Club and related real estate.
•Current liabilities declined 37.6% to $28.8 million and long-term debt increased 15.9% to $72.9 million, primarily due to the Texas Patron Tax settlement.
•Total permanent stockholders' equity increased 6.7% to $129.0 million, primarily reflecting the after-tax benefit of the gain from the Patron Tax Settlement and core profits.

Stock Buy Backs
•The Board of Directors increased its stock repurchase authorization to $10.0 million in May 2014.
•During 3Q15, RCI purchased 32,853 shares in the open market for an aggregate cost of $370,799, leaving $6.6 million of remaining authorization.
•For the nine months ended June 30, 2015, RCI purchased 225,280 shares at a cost of $2.3 million.

*Non-GAAP Financial Measures

In addition to our financial information presented in accordance with GAAP, management uses certain "non-GAAP financial measures" within the meaning of the SEC Regulation G, to clarify and enhance understanding of past performance and prospects for the future. Generally, a non-GAAP financial measure is a numerical measure of a company's operating performance, financial position or cash flows that excludes or includes amounts that are included in or excluded from the most directly comparable measure calculated and presented in accordance with GAAP. We monitor non-GAAP financial measures because it describes the operating performance of the company and helps management and investors gauge our ability to generate cash flow, excluding some recurring charges that are included in the most directly comparable measures calculated and presented in accordance with GAAP. Relative to each of the non-GAAP financial measures, we further set forth our rationale as follows:
•Non-GAAP Operating Income and Non-GAAP Operating Margin. We exclude from non-GAAP operating income and non-GAAP operating margin amortization of intangibles, gain on settlement of patron tax case, pre-opening costs, gains and losses from asset sales, stock-based compensation charges, litigation and other one-time legal settlements and acquisition costs. We believe that excluding these items assists investors in evaluating period-over-period changes in our operating income and operating margin without the impact of items that are not a result of our day-to-day business and operations. While we were in litigation in the patron tax case, we also included patron taxes as an exclusion, but after settlement of the case, we no longer exclude patron taxes from operating income.
•Non-GAAP Net Income and Non-GAAP Net Income per Basic Share and per Diluted Share. We exclude from non-GAAP net income and non-GAAP net income per diluted share and per basic share amortization of intangibles, gain on settlement of patron tax case, pre-opening costs, income tax expense, impairment charges, gains and losses from asset sales, stock-based compensation, litigation and other one-time legal settlements and acquisition costs, and include the Non-GAAP provision for income taxes, calculated as the tax-effect at 35% effective tax rate of the pre-tax non-GAAP income before taxes less stock-based compensation, because we believe that excluding such measures helps management and investors better understand our operating activities. While we were in litigation in the patron tax case, we also included patron taxes as an exclusion, but after settlement of the case, we no longer exclude patron taxes from net income.
•Adjusted EBITDA. We exclude from Adjusted EBITDA depreciation expense, amortization of intangibles, income tax, interest expense, interest income, gains and losses from asset sales, acquisition costs, litigation and other one-time legal settlements, gain on settlement of patron tax case and impairment charges because we believe that adjusting for such items helps management and investors better understand operating activities. 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.

Full Financial Tables

RCI's Form 10Q for the fiscal third quarter ended June 30, 2015 with full financial tables can be found on the company's corporate site at http://www.rcihospitality.com.

About RCI Hospitality Holdings, Inc. (RICK)

With 46 units, RCI Hospitality Holdings, Inc., through its subsidiaries, is the country's leading company in adult gentlemen clubs and sports bars/restaurants. Adult clubs in New York City, Miami, Philadelphia, Charlotte, Dallas/Ft. Worth, Houston, Minneapolis, Indianapolis and other cities operate under brand names, such as "Rick's Cabaret," "XTC," "Club Onyx," "Vivid Cabaret," "Jaguars" and "Tootsie's Cabaret." Sports bars/restaurants operate under the brand name "Bombshells." Please visit http://www.rcihospitality.com/

RCI Hospitality in 2015 is celebrating the 20th anniversary of its IPO – two decades of innovation in the adult club segment of the hospitality industry.

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 its 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. The company has no obligation to update or revise the forward-looking statements to reflect the occurrence of future events or circumstances.



RCI HOSPITALITY HOLDINGS, INC. AND SUBSIDIARIES


CONSOLIDATED STATEMENTS OF INCOME





















FOR THE THREE MONTHS



FOR THE NINE MONTHS


ENDED JUNE 30,

ENDED JUNE 30,




2015



2014



2015



2014


(in thousands, except per share data)


(UNAUDITED)



(UNAUDITED)















Revenues:

















Sales of alcoholic beverages


$

15,148



$

13,626



$

45,963



$

38,300


Sales of food and merchandise



5,049




4,076




15,515




11,478


Service revenues



13,870




14,035




42,623




41,112


Other



1,694




1,606




5,557




4,746


Total revenues



35,761




33,343




109,658




95,636



















Operating expenses:

















Cost of goods sold



5,033




4,295




15,525




12,083


Salaries and wages



8,176




7,219




24,323




20,650


Stock compensation



120




2




360




156


Other general and administrative:

















Taxes and permits



5,444




5,150




16,546




14,707


Charge card fees



562




479




1,653




1,356


Rent



1,189




1,315




3,514




3,699


Legal and professional



939




1,206




2,962




2,420


Advertising and marketing



1,506




1,420




4,185




4,111


Insurance



866




1,014




2,487




2,785


Utilities



727




650




2,169




1,891


Depreciation and amortization



1,923




1,532




5,454




4,438


Loss on sale of property



178




334




160




248


Impairment of assets



-




-




1,358




-


Settlement of lawsuits and other one-time costs



10




3,233




10,560




3,503


Gain on settlement of patron tax



(8,167)




-




(8,167)




-


Other



3,103




2,602




8,893




7,624


Total operating expenses



21,609




30,451




91,982




79,671


Operating income



14,152




2,892




17,676




15,965


Other income (expense):

















Interest income



-




-




39




112


Interest expense



(1,630)




(2,060)




(5,032)




(5,996)


Gain from original investment in Drink Robust



-




-




577




-


Income before income taxes



12,522




832




13,260




10,081


Income taxes



4,442




203




5,023




3,448


Net income



8,080




629




8,237




6,633


Less: net loss attributable to noncontrolling interests



187




62




549




183


Net income attributable to RCI Hospitality Holdings, Inc.


$

8,267



$

691



$

8,786



$

6,816



















Basic earnings per share attributable to RCIHH's shareholders:
















Net income


$

0.81



$

0.07



$

0.86



$

0.70


Diluted earnings per share attributable to RCIHH's shareholders:
















Net income


$

0.78



$

0.07



$

0.85



$

0.69



















Weighted average number of common shares outstanding:

















Basic



10,245




9,883




10,262




9,695


Diluted



10,707




9,968




10,724




9,922








RCI HOSPITALITY HOLDINGS, INC. AND SUBSIDIARIES


NON-GAAP FINANCIAL MEASURES












For the Three Months


For the Nine Months



Ended June 30,


Ended June 30,









(in thousands, except per share data)

2015


2014


2015


2014











Reconciliation of GAAP net income to Adjusted EBITDA









GAAP net income attributable to RCIHH

$8,267


$691


$8,786


$6,816


Income tax expense

4,442


203


5,023


3,448


Interest expense and income

1,630


2,060


4,993


5,884


Litigation and other one-time legal settlements

10


3,233


10,560


3,503


Gain on settlement of Patron tax case

(8,167)


-


(8,167)


-


Impairment of assets

-


-


1,358


-


Acquisition costs

105


22


283


111


Depreciation and amortization

1,923


1,532


5,454


4,438


Adjusted EBITDA

$8,210


$7,741


$28,290


$24,200











Reconciliation of GAAP net income to non-GAAP net income









GAAP net income attributable to RCIHH

$8,267


$691


$8,786


$6,816


Amortization of intangibles

312


82


892


254


Stock-based compensation

120


2


360


156


Litigation and other one-time settlements

10


3,233


10,560


3,503


Gain on settlement of Patron tax case

(8,167)


-


(8,167)


-


Pre-opening costs

-


306


328


743


Income tax expense

4,442


203


5,023


3,448


Impairment of assets

-


-


1,358


-


Acquisition costs

105


22


283


111


Non-GAAP provision for income taxes

(1,739)


(1,588)


(6,672)


(5,206)


Non-GAAP net income

$3,350


$2,951


$12,751


$9,825











Reconciliation of GAAP diluted net income per share to non-GAAP diluted net income per share









Fully diluted shares

10,707


9,968


10,724


9,922


GAAP net income attributable to RCIHH

$0.78


$0.07


$0.85


$0.69


Amortization of intangibles

0.03


0.01


0.08


0.03


Stock-based compensation

0.01


0.00


0.03


0.02


Litigation and other one-time settlements

0.00


0.32


0.99


0.35


Gain on settlement of Patron tax case

(0.76)


-


(0.76)


-


Pre-opening costs

-


0.03


0.03


0.07


Impairment of assets

-


-


0.13


-


Income tax expense

0.41


0.02


0.47


0.35


Acquisition costs

0.01


0.00


0.03


0.01


Non-GAAP provision for income taxes

(0.16)


(0.16)


(0.62)


(0.52)


Non-GAAP diluted net income per share

$0.32


$0.30


$1.22


$0.99








RCI HOSPITALITY HOLDINGS, INC. AND SUBSIDIARIES


NON-GAAP FINANCIAL MEASURES












For the Three Months


For the Nine Months



Ended June 30,


Ended June 30,









(in thousands, except per share data)

2015


2014


2015


2014











Reconciliation of GAAP operating income to non-GAAP operating income









GAAP operating income

$14,152


$2,892


$17,676


$15,965


Amortization of intangibles

312


82


892


254


Stock-based compensation

120


2


360


156


Litigation and other one-time settlements

10


3,233


10,560


3,503


Gain on settlement of Patron tax case

(8,167)


-


(8,167)


-


Impairment of assets

-


-


1,358


-


Pre-opening costs

-


306


328


743


Acquisition costs

105


22


283


111


Non-GAAP operating income

$6,532


$6,537


$23,290


$20,732











Reconciliation of GAAP operating margin to non-GAAP operating margin









GAAP operating income

39.6%


8.7%


16.1%


16.7%


Amortization of intangibles

0.9%


0.2%


0.8%


0.3%


Stock-based compensation

0.3%


0.0%


0.3%


0.2%


Litigation and other one-time settlements

0.0%


9.7%


9.6%


3.7%


Gain on settlement of Patron tax case

-22.8%


0.0%


-7.4%


0.0%


Impairment of assets

0.0%


0.0%


1.2%


0.0%


Pre-opening costs

0.0%


0.9%


0.3%


0.8%


Acquisition costs

0.3%


0.1%


0.3%


0.1%


Non-GAAP operating margin

18.3%


19.6%


21.2%


21.7%








RCI HOSPITALITY HOLDINGS, INC. AND SUBSIDIARIES


SEGMENT INFORMATION

















For the Three Months



For the Nine Months



Ended June 30,



Ended June 30,


(in thousands)

2015


2014



2015


2014












Business segment sales:










Nightclubs

$

30,568


$

31,486



$

93,564


$

91,037


Bombshells


4,789



1,585




14,510



3,668


Other


404



272




1,584



931



$

35,761


$

33,343



$

109,658


$

95,636
















Business segment operating income:












Nightclubs

$

17,271


$

8,526



$

26,000


$

25,947


Bombshells


369



(170)




1,480



(268)


Other


(682)



(220)




(1,995)



(521)


General corporate


(2,806)



(5,244)




(7,809)



(9,193)



$

14,152


$

2,892



$

17,676


$

15,965
















Reconciliation of Nightclubs GAAP operating income to non-GAAP operating income














Nightclubs operating income

$

17,271


$

8,526



$

26,000


$

25,947


Gain on settlement of Patron tax case


(8,167)



-




(8,167)



-


Litigation and other one-time settlements


10



3,233




10,560



3,503


Impairment of assets


-



-




1,358



-


Nightclubs non-GAAP operating income

$

9,114


$

11,759



$

29,751


$

29,450
















Nightclubs non-GAAP operating margin


29.8%



37.3%




31.8%



32.3%

[Drmicrocap]

RCI Hospitality Announces 3Q15 Club & Restaurant Sales Up 6.9%
PR Newswire RCI Hospitality Holdings, Inc.
15 hours ago
????
HOUSTON, July 9, 2015 /PRNewswire/ -- RCI Hospitality Holdings, Inc. (RICK) today announced total sales at adult clubs and bars/restaurants for the third fiscal quarter ended June 30, 2015. RCI expects to announce 3Q15 results on August 10, 2015.

View photo
.RCI HOSPITALITY HOLDINGS INC
Total club and restaurant sales reached $35.4 million compared to $33.1 million in the year ago quarter.
Same store sales were $30.2 million compared to $31.9 million in the year ago quarter.
There were 46 units in 3Q15 versus 43 in 3Q14.
Nightclub segment sales (includes adult clubs and nightclubs) totaled $30.6 million compared to $31.5 million in 3Q14.
Bombshells segment sales totaled $4.8 million compared to $1.6 million in 3Q14.
CEO Comment

Eric Langan, President and CEO, commented, "We're pleased at seeing a 6.9% year over year increase in total 3Q15 sales. This continues to demonstrate the soundness of our bar/restaurant strategy, which saw Bombshells segment sales up more than threefold year over year. On the other hand, the unusually severe rain and flooding in Texas contributed to a 5.3% decline in same store sales that affected our nightclub segment, in particular.

"Total club and restaurant sales benefitted from new adult clubs–Rick's Cabaret in Odessa, TX, the January acquisition of Down in Texas Saloon in Austin, TX, and the May acquisition of The Seville Club of Minneapolis—and from new Bombshells in Austin, Spring, and Houston, TX. In addition to weather, many units opened for more than a year faced tough comparisons against last year's strong line up of sporting events. While showing the Mayweather-Pacquiao fight at many locations helped 3Q15, it was difficult to overcome the benefit in 3Q14 of the New York Rangers in the Stanley Cup Finals and both the Miami Heat and the San Antonio Spurs in the NBA Finals."

About RCI Hospitality Holdings, Inc. (RICK)

With 46 units, RCI Hospitality Holdings, Inc., through its subsidiaries, is the country's leading company in adult gentlemen clubs and sports bars/restaurants. Adult clubs in New York City, Miami, Philadelphia, Charlotte, Dallas/Ft. Worth, Houston, Minneapolis, Indianapolis and other cities operate under brand names, such as "Rick's Cabaret," "XTC," "Club Onyx," "Vivid Cabaret," "Jaguars" and "Tootsie's Cabaret." Sports bars/restaurants operate under the brand name "Bombshells." Please visit http://www.rcihospitality.com/

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. The company has no obligation to update or revise the forward-looking statements to reflect the occurrence of future events or circumstances.

All references to, the "company," "we," "our," and similar terms include RCI Hospitality Holdings, Inc. and its subsidiaries, unless the context indicates otherwise.

[Drmicrocap]

RCI Hospitality Holdings, Inc. Reports Fiscal 2Q15 Results

Non-GAAP EPS of $0.50 Up 11% Year over Year


PR Newswire
RCI Hospitality Holdings, Inc.
May 11, 2015 4:05 PM

HOUSTON, May 11, 2015 /PRNewswire/ -- RCI Hospitality Holdings, Inc. (RICK) today announced results for the fiscal 2015 second quarter ended March 31, 2015.

.RCI HOSPITALITY HOLDINGS INC
2Q15 Highlights
•GAAP EPS of ($0.28) includes an accrual for the previously announced NY FLSA legal settlement.
•Non-GAAP EPS* diluted of $0.50 increased 11.1% from $0.45 in 2Q14. Non-GAAP EPS excludes the accrual as well as other items from both periods for comparability.
•Record total revenues of $37.4 million grew 13.8% year over year.
•$1.9 million spent buying back shares in the open market in the first half of Fiscal 2015.
•Company on track for a strong FY15.

Conference Call

A conference call to discuss these results, outlook and related matters will be held today, May 11, 2015, at 4:30 PM ET:
•Live Participant Dial In (Toll Free): 877-737-7051
•Live Participant Dial In (International): 201-689-8878
•Webcast URL: http://www.investorcalendar.com/IC/CEPage.asp?ID=173981

Meet Management

Eric Langan, President and CEO, invites investors for a "Due Diligence Ball" to meet, talk and tour one of RCI's top revenue generating clubs.
•When: Monday, May 11, 2015, 6:00 PM to 8:00 PM ET
•Where: Rick's Cabaret New York, at 50 W. 33rd Street, between Fifth Avenue and Broadway
•RSVP: With your contact information to [e-mail]

CEO Comment

"RCI performed well in 2Q15," said Mr. Langan. "We achieved record revenues and strong year over year growth in non-GAAP EPS and adjusted EBITDA, which reflects our cash generating power.

"Our performance was especially favorable since 2Q15 was affected by bad weather, especially in the Dallas-Fort Worth area, where we operate 11 clubs. We also had tough comparisons to 2Q14, when we benefitted from the big football championship in the New York City area, where we have two top clubs.

"Core profitability in nightclubs expanded due to higher revenues and margin improvement. With more units and increased revenues, our Bombshells restaurant/bar segment also added positively to results.

"We repurchased more stock in the open market, reflecting confidence in our favorable outlook, combined with the market's undervaluation of our shares. We will continue to focus cash flow on buying back shares. At current levels, our own assets represent a highly attractive return.

"We are on track for a strong Fiscal 2015. Year to date, total revenues are up 18.6%, adjusted EBITDA 22.7%, and non-GAAP EPS 23.1%.

"We look forward to a solid third quarter. Many units benefitted from our showing the recent Mayweather-Pacquiao 'Fight of the Century'. Warm weather in Texas should further enhance Bombshells' patio business."

2Q15 Analysis (all comparisons to 2Q14 unless otherwise noted)

Total Revenues
•Total revenues of $37.4 million compared to $32.9 million.
•45 units (40 adult clubs and nightclubs and 5 restaurants) versus 43 (41 adult clubs and nightclubs and 2 restaurants).
•Same store sales increased 2.1%.
•Units opened less than a year added $4.4 million. This included new adult clubs – Rick's Cabaret in Odessa, TX and the recently acquired Down in Texas Saloon in Austin, TX – and new Bombshells in Austin, Spring and Houston, TX.

Operating Margin & Costs (as % of revenues)
•GAAP operating margin was (7.0%), reflecting the previously mentioned accrual, compared to 22.7%.
•Non-GAAP operating margin, which excludes the accrual and certain other non-operating items from both periods for more meaningful analysis, was 24.9% compared to 26.9%.
•Non-GAAP operating margin reflects the growth of the Bombshells segment, whose margins, while growing, are less than that of the nightclub segment. This was partially offset by the elimination of under-performing adult clubs.
•The accrual of $10.3 million pre-tax, or ($0.65) per share net of tax, represents the company's best estimate at this time of the total cost of the settlement, announced April 1, 2015, in its New York federal wage and hour class action case.

Adjusted EBITDA
•RCI's cash generating power, as reflected by adjusted EBITDA*, amounted to $10.2 million, up 10.8% from $9.2 million in the year ago quarter.

Business Segments (all comparisons to 2Q14 unless otherwise noted)

Nightclubs
•Includes the company's 38 adult clubs and two bar/nightclubs, compared to a total of 41 in the year ago quarter.
•Sales increased 2.4%, to $31.9 million from $31.2 million.
•Operating income was $114,000 compared to $9.6 million.
•Excluding the previously mentioned accrual, operating income increased 8.0% to $10.4 million and operating margin expanded to 32.6% from 30.9%.
•In May, RCI subsidiaries acquired The Seville Club, a popular gentlemen's club in Minneapolis known for its famous downtown location, as previously announced. Total consideration of $8.5 million consisted of $4.5 million for the assets of the club business and $4.0 million for its historic building.

Bombshells
•Includes the company's five Bombshells, all in Texas, compared to two in the year ago quarter.
•Sales increased nearly 3.5 times, to $4.8 million from $1.4 million.
•Operating income was $571,000 compared to a loss of $12,000.
•Operating margin expanded to 11.9% of revenues from (0.9%) and is expected to increase as revenues continue to build and training costs subside.
•A sixth Bombshells is planned for the Willowbrook area of northwest Houston. Management is identifying additional locations.

Balance Sheet (March 31, 2015 compared to December 31, 2014)
•Assets increased 4.1% to $260.5 million and long term debt increased 2.4% to $71.5 million. The increases primarily reflected the acquisition of the Down in Texas Saloon of Austin and related real estate.
•Total permanent stockholders' equity declined 2.8% to $120.8 million, primarily reflecting the NY FLSA accrual partially offset by core profits.

Stock Buy Backs
•The Board of Directors increased its stock repurchase authorization to $10.0 million in May 2014.
•During 2Q15, RCI purchased 82,811 shares of common in the open market for an aggregate cost of $840,340, leaving $7.0 million of remaining authorization.
•During the six months ended March 31, 2015, RCI purchased 192,427 shares at a cost of $1.9 million.

*Non-GAAP Financial Measures

In addition to our financial information presented in accordance with GAAP, management uses certain "non-GAAP financial measures" within the meaning of the SEC Regulation G, to clarify and enhance understanding of past performance and prospects for the future. Generally, a non-GAAP financial measure is a numerical measure of a company's operating performance, financial position or cash flows that excludes or includes amounts that are included in or excluded from the most directly comparable measure calculated and presented in accordance with GAAP. We monitor non-GAAP financial measures because it describes the operating performance of the company and helps management and investors gauge our ability to generate cash flow, excluding some recurring charges that are included in the most directly comparable measures calculated and presented in accordance with GAAP. Relative to each of the non-GAAP financial measures, we further set forth our rationale as follows:
•Non-GAAP Operating Income and Non-GAAP Operating Margin. We exclude from non-GAAP operating income and non-GAAP operating margin amortization of intangibles, patron taxes, pre-opening costs, gains and losses from asset sales, stock-based compensation charges, litigation and other one-time legal settlements, gain on contractual debt reduction and acquisition costs. We believe that excluding these items assists investors in evaluating period-over-period changes in our operating income and operating margin without the impact of items that are not a result of our day-to-day business and operations.


•Non-GAAP Net Income and Non-GAAP Net Income per Basic Share and per Diluted Share. We exclude from non-GAAP net income and non-GAAP net income per diluted share and per basic share amortization of intangibles, patron taxes, pre-opening costs, income tax expense, impairment charges, gains and losses from asset sales, stock-based compensation, litigation and other one-time legal settlements, gain on contractual debt reduction and acquisition costs, and include the Non-GAAP provision for income taxes, calculated as the tax-effect at 35% effective tax rate of the pre-tax non-GAAP income before taxes less stock-based compensation, because we believe that excluding such measures helps management and investors better understand our operating activities.


•Adjusted EBITDA. We exclude from earnings before interest, taxes, depreciation and amortization (EBITDA) depreciation expense, amortization of intangibles, income tax, interest expense, interest income, gains and losses from asset sales, acquisition costs, litigation and other one-time legal settlements, gain on contractual debt reduction and impairment charges because we believe that adjusting for such items helps management and investors better understand operating activities. 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.

Full Financial Tables

RCI's Form 10Q for the fiscal second quarter ended Mach 31, 2015 with full financial tables can be found on the company's corporate site at http://www.rcihospitality.com.

About RCI Hospitality Holdings, Inc. (RICK)

With 46 units, RCI Hospitality Holdings, Inc., through its subsidiaries, is the country's leading company in adult gentlemen clubs and restaurant/bars. Adult clubs in New York City, Miami, Philadelphia, Charlotte, Dallas/Ft. Worth, Houston, Minneapolis, Indianapolis and other cities operate under brand names, such as "Rick's Cabaret," "XTC," "Club Onyx," "Vivid Cabaret," "Jaguars" and "Tootsie's Cabaret." Restaurant/bars operate under the brand name "Bombshells." Please visit http://www.rcihospitality.com/

RCI Hospitality in 2015 is celebrating the 20th anniversary of its IPO – two decades of innovation in the adult club segment of the hospitality industry.

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. The company has no obligation to update or revise the forward-looking statements to reflect the occurrence of future events or circumstances.







RCI HOSPITALITY HOLDINGS, INC. AND SUBSIDIARIES


CONSOLIDATED STATEMENTS OF INCOME





















FOR THE THREE MONTHS



FOR THE SIX MONTHS


ENDED MARCH 31,

ENDED MARCH 31,




2015



2014



2015



2014


(in thousands, except per share data)


(UNAUDITED)



(UNAUDITED)















Revenues:

















Sales of alcoholic beverages


$

15,576



$

12,985



$

30,815



$

24,674


Sales of food and merchandise



5,241




3,979




10,466




7,402


Service revenues



14,559




14,347




28,783




27,077


Other



2,034




1,559




3,833




3,140


Total revenues



37,410




32,870




73,897




62,293



















Operating expenses:

















Cost of goods sold



5,381




4,041




10,492




7,788


Salaries and wages



8,115




6,854




16,147




13,431


Stock compensation



120




151




240




154


Other general and administrative:

















Taxes and permits



5,709




5,142




11,102




9,557


Charge card fees



544




449




1,091




877


Rent



1,184




1,156




2,325




2,384


Legal and professional



1,064




426




2,023




1,214


Advertising and marketing



1,312




1,406




2,679




2,691


Insurance



801




972




1,621




1,771


Utilities



708




646




1,442




1,241


Depreciation and amortization



1,886




1,513




3,531




2,906


(Gain) loss on sale of property



(18)




(86)




(18)




(86)


Impairment of assets



-




-




1,358




-


Settlement of lawsuits and other one-time costs



10,303




150




10,550




270


Other



2,917




2,591




5,790




5,022


Total operating expenses



40,026




25,411




70,373




49,220


Operating income (loss)



(2,616)




7,459




3,524




13,073



















Other income (expense):

















Interest income



26




35




39




112


Interest expense



(1,783)




(1,924)




(3,402)




(3,936)


Gain from original investment in Drink Robust, Inc.



-




-




577




-


Income (loss) before income taxes



(4,373)




5,570




738




9,249


Income taxes (benefit)



(1,265)




1,922




581




3,245


Net income (loss)



(3,108)




3,648




157




6,004


Less: net (income) loss attributable to noncontrolling interests



267




74




362




121


Net income (loss) attributable to RCI Hospitality Holdings, Inc.


$

(2,841)



$

3,722



$

519



$

6,125



















Basic earnings (loss) per share attributable to RCIHH shareholders:
















Net income


$

(0.28)



$

0.39



$

0.05



$

0.64


Diluted earnings (loss) per share attributable to RCIHH shareholders:
















Net income


$

(0.28)



$

0.37



$

0.05



$

0.62



















Weighted average number of common shares outstanding:

















Basic



10,275




9,661




10,269




9,604


Diluted



10,275




10,853




10,273




10,763























RCI HOSPITALITY HOLDINGS, INC. AND SUBSIDIARIES


NON-GAAP FINANCIAL MEASURES












For the Three Months


For the Six Months



Ended March 31,


Ended March 31,









(in thousands, except per share data)

2015


2014


2015


2014











Reconciliation of GAAP net income to









Adjusted EBITDA









GAAP net income (loss)

($2,841)


$3,722


$519


$6,125


Income tax expense

(1,265)


1,922


362


3,245


Interest expense and income and gain on Drink Robust investment

1,783


1,924


3,402


3,936


Litigation and other one-time legal settlements

10,303


150


10,550


270


Preopening costs

268


-


328


-


Acquisition costs

95


-


178


-


Impairment of assets

-


-


1,358


-


Depreciation and amortization

1,886


1,513


3,531


2,906


Adjusted EBITDA

$10,229


$9,231


$20,228


$16,482











Reconcilation of GAAP net income (loss) to









non-GAAP net income









GAAP net income (loss)

($2,841)


$3,722


$519


$6,125


Patron tax

805


866


1,567


1,605


Amortization of intangibles

336


82


579


171


Gain on Drink Robust investment

-


-


(577)


-


Stock-based compensation

120


151


240


154


Litigation and other one-time settlements

10,303


150


10,550


270


Pre-opening costs

268


122


328


416


Income tax expense

(1,265)


1,922


362


3,245


Acquisition costs

95


18


178


18


Impairment of assets

-


-


1,358


-


Non-GAAP provision for income taxes

(2,695)


(2,409)


(5,202)


(4,148)


Non-GAAP net income

$5,126


$4,624


$9,902


$7,857











Reconciliation of GAAP diluted net income









per share to non-GAAP diluted net income per share









Fully diluted shares

10,275


10,853


10,273


10,763


GAAP net income

($0.28)


$0.37


$0.05


$0.62


Patron tax

0.08


0.08


0.15


0.15


Amortization of intangibles

0.03


0.01


0.06


0.02


Gain on Drink Robust investment

-


-


(0.06)


-


Stock-based compensation

0.01


0.01


0.02


0.01


Litigation and other one-time settlements

1.00


0.01


1.03


0.03


Pre-opening costs

0.03


0.01


0.03


0.04


Income tax expense

(0.12)


0.18


0.04


0.30


Acquisition costs

0.01


0.00


0.02


0.00


Impairment of assets

-


-


0.13


-


Non-GAAP provision for income taxes

(0.26)


(0.22)


(0.51)


(0.39)


Non-GAAP diluted net income per share

$0.50


$0.45


$0.96


$0.78













RCI HOSPITALITY HOLDINGS, INC. AND SUBSIDIARIES


NON-GAAP FINANCIAL MEASURES












For the Three Months


For the Six Months



Ended March 31,


Ended March 31,









(in thousands, except per share data)

2015


2014


2015


2014











Reconciliation of GAAP operating income to









non-GAAP operating income









GAAP operating income (loss)

($2,616)


$7,459


$3,524


$13,073


Patron tax

805


866


1,567


1,605


Amortization of intangibles

336


82


579


171


Stock-based compensation

120


151


240


154


Impairment of assets

-


-


-


-


Litigation and other one-time settlements

10,303


150


10,550


270


Pre-opening costs

268


122


328


416


Acquisition costs

95


18


178


18


Non-GAAP operating income

$9,311


$8,848


$16,966


$15,707











Reconciliation of GAAP operating margin to









non-GAAP operating margin









GAAP operating income

-7.0%


22.7%


4.8%


21.0%


Patron tax

2.2%


2.6%


2.1%


2.6%


Amortization of intangibles

0.9%


0.2%


0.8%


0.3%


Stock-based compensation

0.3%


0.5%


0.3%


0.2%


Impairment of assets

0.0%


0.0%


0.0%


0.0%


Litigation and other one-time settlements

27.5%


0.5%


14.3%


0.4%


Pre-opening costs

0.7%


0.4%


0.4%


0.7%


Acquisition costs

0.3%


0.1%


0.2%


0.0%


Non-GAAP operating margin

24.9%


26.9%


23.0%


25.2%













RCI HOSPITALITY HOLDINGS, INC. AND SUBSIDIARIES



SEGMENT INFORMATION





















For the Three Months



For the Six Months




Ended March 31,



Ended March 31,



(in thousands)

2015



2014



2015



2014
















Business segment sales:













Nightclubs

$

31,933



$

31,196



$

62,995



$

59,550



Bombshells


4,813




1,379




9,721




2,083



Other


664




295




1181




660




$

37,410



$

32,870



$

73,897



$

62,293




















Business segment operating income (loss):

















Nightclubs*

$

114



$

9,644



$

8,671



$

17,618



Bombshells


571




(12)




1,111




(317)



Other


(797)




(87)




(1,344)




(257)



General corporate


(2,504)




(2,086)




(4,914)




(3,971)




$

(2,616)



$

7,459



$

3,524



$

13,073




















* Nightclubs operating income for the three and six months ended 3/31/15 includes accrual of $10,303 for the settlement of a lawsuit, and for the six months ended 3/31/15 also includes impairment of assets of $1,358. Excluding these items, nightclubs operating income for the three months ended 3/31/15 would have been $10,417 and for the six months ended 3/31/15 would have been $20,332.



















Logo - http://photos.prnewswire.com/prnh/20140805/133696

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/rci-hospitality-holdings-inc-reports-fiscal-2q15-results-300081198.html

[Drmicrocap]

RCI Hospitality Announces Record Quarterly Club & Restaurant Sales for 2Q15
- Total Club & Restaurant Sales of $36.7 Million - Up 12.7% vs. 2Q14
- Same Store Sales of $29.1 Million - Up 2.1% vs. 2Q14
PR Newswire RCI Hospitality Holdings, Inc.
April 9, 2015 9:00 AM
????
HOUSTON, April 9, 2015 /PRNewswire/ -- RCI Hospitality Holdings, Inc. (RICK) today announced total sales at adult clubs and restaurant/bars for the second fiscal quarter ended March 31, 2015. RCI expects to announce 2Q15 results on May 11, 2015.

View photo
.RCI HOSPITALITY HOLDINGS INC
Total club and restaurant sales reached $36.7 million – a quarterly record – compared to $32.6 million in the year ago quarter.
Same store sales were $29.1 million compared to $28.5 million in the year ago quarter.
There were 44 units in 2Q15 (39 adult clubs and nightclubs and 5 restaurants) versus 43 in 2Q14 (41 adult clubs and nightclubs and 2 restaurants).
Nightclub segment sales (includes adult clubs and nightclubs) totaled $31.9 million compared to $31.2 million in 2Q14.
Bombshells segment sales totaled $4.8 million compared to $1.4 million in 2Q14.
CEO Comment

Eric Langan, President and CEO, commented, "We are very pleased Fiscal 2015 continues to perform well, in line with our plans. Average revenue per unit increased 10.2% year over year. This reflected the closing of four older, under-performing units and the addition of five with higher revenues.

"Units opened less than a year benefited from new adult clubs – Rick's Cabaret in Odessa, TX and the recently acquired Down in Texas Saloon in Austin, TX. New store sales also benefited from Bombshells in Austin, Spring and Houston, TX.

"Same store sales reflected growth at many clubs. This was partially offset by adverse weather in March, especially in the Dallas-Fort Worth market, where the company has 11 locations. New York City units had difficult comparisons to the year ago quarter, when the pro football championship was played locally."

About RCI Hospitality Holdings, Inc. (RICK)

With 44 units, RCI Hospitality Holdings, Inc., through its subsidiaries is the country's leading company in adult gentlemen clubs and restaurant/bars. Adult clubs in New York City, Miami, Philadelphia, Charlotte, Dallas/Ft. Worth, Houston, Minneapolis, Indianapolis and other cities operate under brand names, such as "Rick's Cabaret," "XTC," "Club Onyx," "Vivid Cabaret," "Jaguars" and "Tootsie's Cabaret." Restaurant/bars operate under the brand name "Bombshells." Please visit http://www.rcihospitality.com/

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. The company has no obligation to update or revise the forward-looking statements to reflect the occurrence of future events or circumstances.

*All references to, the "company," "we," "our," and similar terms include RCI Hospitality Holdings, Inc. and its subsidiaries, unless the context indicates otherwise.

Logo - http://photos.prnewswire.com/prnh/20140805/133696

[erOkjenkinZ]

You would think this one would explode with earnings. No action on this board in a while. Is there some sort of banned list this stock is on lol ?!

[Tradescott818]

I can only find
RICK/PRVT in the adult entertainment public stock industry

[Drmicrocap]

Rick's Cabaret International, Inc. Reports 1Q14 Results, Provides 2Q14 Update & Reaffirms Guidance
PR Newswire Rick's Cabaret International, Inc.
February 10, 2014 4:05 PM
HOUSTON, Feb. 10, 2014 /PRNewswire/ -- Rick's Cabaret International, Inc. (RICK) today announced results for the 2014 first quarter ended December 31, 2013, while also providing an update on sales growth experienced to date in the second fiscal quarter (ending March 31, 2014) and reaffirming previous guidance for Fiscal 2014.

(Logo: http://photos.prnewswire.com/prnh/20110418/MM85342LOGO)

"With the exception of the impact of unusually severe winter weather in mid-December in our important Texas markets, results are progressing according to plan with our gentlemen's clubs and restaurant/sports bars," said Eric Langan, President and CEO of Rick's Cabaret International.

"Revenues at our Rick's Cabaret and Vivid Cabaret New York clubs in New York City were excellent in January and early February, as we capitalized strategically and financially on the pro football championship game this year across the Hudson River in New Jersey.

"In addition, we continue to be engaged in a program to maximize the value of our extensive real estate, and overall we look forward to strong growth in Fiscal 2014."

First Quarter 2014 Summary

First quarter 2014 revenues of $29.4 million increased 8.4% from $27.1 million in the year ago period. First quarter 2014 results were negatively impacted by severe ice storms in mid-December in Texas, a state representing approximately 75% of the Company's units and generating approximately 50% of sales.
Rick's earned $2.4 million, or $0.25 per diluted share (on a GAAP basis), compared to $2.6 million, or $0.28 per diluted share, in the corresponding year ago period. The weather is estimated to have resulted in approximately $500,000 in lost sales of which approximately 80% would have contributed to operating profit.
First quarter 2014 results were also impacted by planned expenses associated with the development of five units (adult gentleman's clubs Vivid Cabaret in New York City and Rick's Cabaret in Odessa, TX, and Bombshells restaurant/sports bars in Webster, Beaumont and Austin, TX).
Despite the above factors, the cash generating power of Rick's remained strong. Adjusted EBITDA* for the first quarter of 2014 was $7.3 million, approximately level with the year ago period.
The Company had 41 units open during the first quarter of 2014, including nine open less than a year.
Second Quarter 2014 Update

Second quarter 2014 sales as of the end of last week were up strongly compared to the year ago period due to:

Opening of Vivid Cabaret New York in mid-January and a second Bombshells, in Webster, TX, in late January.
An overall beneficial effect from the February 2, 2014 professional football championship.
Continued seasoning of new adult clubs and restaurant/sports bars open less than a year.
"We had a terrific success due to The Big Game this year," said Mr. Langan. "It truly was a non-stop party at both the Vivid and Rick's clubs in New York. Based on this, we expect continued success when the Big East and NCAA Regionals college basketball championships come to New York City in March."

FY14 Guidance Reaffirmed

Rick's reaffirmed its fiscal 2014 guidance of approximately $130 million in revenue, $1.70 earnings per share non-GAAP, and $1.20 earnings per share GAAP, based on a continued strong performance company-wide from existing units over the balance of the year, plus contributions from new restaurant/sports bars already opened and those planned to open.
Plans for the balance of the fiscal year include the expected opening of a new adult club (Rick's Cabaret in Odessa) and three new Bombshells currently under development (Beaumont, Austin and South Houston).
Rick's expects to have a total of 10 sports bar/restaurants open or in development by year end calendar 2014, with a cluster in Texas and others possibly outside the state in select cities having significant tourist and convention traffic.
Rick's FY14 guidance does not assume the acquisition of any gentlemen's adult clubs, although they are factored in the Company's longer term multi-year target of 20-30% revenue growth.
Conference Call

A conference call to discuss Rick's results for the first quarter of 2014, outlook and related matters will be held today, February 10, 2014 at 4:30 PM Eastern Time.

Live Participant Dial In (Toll Free): 877-407-9210
Live Participant Dial In (International): 201-689-8049
Webcast URL: http://www.investorcalendar.com/IC/CEPage.asp?ID=172172
Meet Management

Eric Langan, President and CEO, invites investors for a "Due Diligence Ball" to meet, talk and tour one of the Company's major clubs, tonight in Manhattan.

When: Monday, February 10, 2014, 6:30 PM to 8:00 PM ET
Where: Rick's Cabaret New York, at 50 W. 33rd Street, between Fifth Avenue and Broadway
RSVP: With your contact information, to [e-mail]
*Explanation of Non-GAAP Financial Measures

In addition to our financial information presented in accordance with GAAP, management uses certain "non-GAAP financial measures" within the meaning of the SEC Regulation G, to clarify and enhance understanding of past performance and prospects for the future. Generally, a non-GAAP financial measure is a numerical measure of a company's operating performance, financial position or cash flows that excludes or includes amounts that are included in or excluded from the most directly comparable measure calculated and presented in accordance with GAAP. We monitor non-GAAP financial measures because it describes the operating performance of the company and helps management and investors gauge our ability to generate cash flow, excluding some recurring charges that are included in the most directly comparable measures calculated and presented in accordance with GAAP. Relative to each of the non-GAAP financial measures, we further set forth our rationale as follows:

Non-GAAP Operating Income and Non-GAAP Operating Margin. We exclude from GAAP operating income and GAAP operating margin amortization of intangibles, patron taxes, gains and losses from asset sales, stock-based compensation charges, litigation and other one-time legal settlements and acquisition costs. We believe that excluding these items assists investors in evaluating period-over-period changes in our operating income and operating margin without the impact of items that are not a result of our day-to-day business and operations.
Non-GAAP Net Income and Non-GAAP Net Income per Basic Share and per Diluted Share. We exclude from GAAP net income and GAAP net income per diluted share and per basic share amortization of intangibles, patron taxes, income tax expense, impairment charges, gains and losses from asset sales, stock-based compensation, litigation, loss from discontinued operations and other one-time legal settlements and acquisition costs, and include the Non-GAAP provision for income taxes, calculated as the tax effect at 35% effective tax rate of the pre-tax non-GAAP income before taxes less stock-based compensation, because we believe that excluding such measures helps management and investors better understand our operating activities.
Adjusted EBITDA. We exclude from GAAP net income depreciation expense, amortization of intangibles, income tax, interest expense, interest income, gains and losses from asset sales, acquisition costs, litigation and other one-time legal settlements and impairment charges because we believe that adjusting for such items helps management and investors better understand operating activities. 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.
About Rick's Cabaret

With 43 units, Rick's Cabaret International, Inc. (RICK) is the leading hospitality company operating adult gentlemen's clubs and sports bar/restaurants in the US. Adult clubs in New York City, Los Angeles, Miami, Philadelphia, Charlotte, Dallas/Ft. Worth, Houston, Minneapolis, Indianapolis and other cities operate under brand names such as "Rick's Cabaret," "XTC," "Club Onyx," "Vivid Cabaret," "Jaguars" and "Tootsie's Cabaret." Sports bar/restaurants, which also feature live entertainment, operate under the brand names "Bombshells" and "Ricky Bobby Sports Saloon."

For More Information

Web: http://www.ricksinvestor.com
Twitter: https://twitter.com/rickscabaretinc
Facebook: https://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.

RICK'S CABARET INTERNATIONAL, INC.
Consolidated Statements of Income






Three Months Ended



December 31,

(in thousands, except per share data)

2013


2012



(UNAUDITED)

Revenues:








Sales of alcoholic beverages

$
11,689


$
10,406

Sales of food and merchandise


3,423



2,578

Service revenues


12,730



12,655

Other


1,581



1,502

Total revenues


29,423



27,141










Operating expenses:








Cost of goods sold


3,747



3,386

Salaries and wages


6,577



6,038

Stock-based compensation


3



282

Other general and administrative:








Taxes and permits


4,416



4,221

Charge card fees


428



374

Rent


1,228



570

Legal and professional


908



641

Advertising and marketing


1,285



1,109

Depreciation and amortization


1,390



1,320

Insurance


799



499

Utilities


595



489

Other


2,431



2,278

Total operating expenses


23,807



21,207

Income from operations


5,616



5,934










Other income (expense):








Interest income and other


77



8

Interest expense


(2,012)



(1,643)

Gain on change in fair value of derivative instruments


-



(1)

Income from continuing operations before income taxes


3,681



4,298

Income taxes


1,323



1,584

Income from continuing operations


2,358



2,714

Loss from discontinued operations, net of income taxes


(1)



(14)

Net income


2,357



2,700

Less: (net income) loss attributable to noncontrolling interests


47



(53)

Net income attributable to Rick's Cabaret International, Inc.

$
2,404


$
2,647

Basic earnings (loss) per share attributable to Rick's shareholders:








Income from continuing operations

$
0.25


$
0.28

Loss from discontinued operations


(0.00)



(0.00)

Net income

$
0.25


$
0.28

Diluted earnings (loss) per share attributable to Rick's shareholders:








Income from continuing operations

$
0.25


$
0.28

Loss from discontinued operations


(0.00)



(0.00)

Net income

$
0.25


$
0.28

Weighted average number of common shares outstanding:








Basic


9,546



9,575

Diluted


9,855



9,833






RICK'S CABARET INTERNATIONAL, INC. AND SUBSIDIARIES
Non-GAAP* measures for the quarters ended December 31, 2013 and 2012
(in thousands)



For the Quarter Ended

December 31,





2013

2012
Reconciliation of GAAP net income to



Adjusted EBITDA



GAAP net income attributable to Rick's shareholders
$ 2,404

$ 2,647
Income tax expense
1,323

1,584
Interest expense and income and gain on derivative
2,012

1,644
Litigation and other one-time settlements
120

-
Acquisition costs
-

55
Loss from discontinued operations
1

14
Depreciation and amortization
1,390

1,320
Adjusted EBITDA
$ 7,250

$ 7,264




Reconciliation of GAAP net income (loss) to



non-GAAP net income



GAAP net income attributable to Rick's shareholders
$ 2,404

$ 2,647
Patron tax
738

891
Amortization of intangibles
89

131
(Gain) loss on change in fair value of derivative instruments
-

1
Stock-based compensation
3

282
Litigation and other one-time settlements
120

-
Income tax expense
1,323

1,584
Acquisition costs
-

55
Loss from discontinued operations, net of income taxes
1

14
Non-GAAP provision for income taxes
(1,636)

(1,863)
Non-GAAP net income
$ 3,042

$ 3,742






RICK'S CABARET INTERNATIONAL, INC. AND SUBSIDIARIES
Non-GAAP* measures for the quarters ended December 31, 2013 and 2012
(in thousands, except per share data)




For the Quarter Ended

December 31,



2013

2012
Reconciliation of GAAP diluted net income



per share to non-GAAP diluted net income per share







Fully diluted shares
9,855

9,833
GAAP net income attributable to Rick's shareholders
$ 0.25

$ 0.28
Patron tax
0.07

0.09
Amortization of intangibles
0.01

0.01
(Gain) loss on change in fair value of derivative instruments
-

0.00
Stock-based compensation
0.00

0.03
Litigation and other one-time settlements
0.01

-
Income tax expense
0.14

0.16
Acquisition costs
-

0.01
Loss from discontinued operations, net of income taxes
0.00

0.00
Non-GAAP provision for income taxes
(0.17)

(0.19)
Non-GAAP diluted net income per share
$ 0.31

$ 0.39




Reconciliation of GAAP operating income to



non-GAAP operating income



GAAP operating income
$ 5,616

$ 5,934
Patron tax
738

891
Amortization of intangibles
89

131
Stock-based compensation
3

282
Litigation and other one-time settlements
120

-
Acquisition costs
-

55
Non-GAAP operating income
$ 6,566

$ 7,293




Reconciliation of GAAP operating margin to



non-GAAP operating margin



GAAP operating income
19.1%

21.9%
Patron tax
2.5%

3.3%
Amortization of intangibles
0.3%

0.5%
Stock-based compensation
0.0%

1.0%
Litigation and other one-time settlements
0.4%

0.0%
Acquisition costs
0.0%

0.2%
Non-GAAP operating margin
22.3%

26.9%






RICK'S CABARET INTERNATIONAL, INC.
Reconciliation of GAAP Earnings Guidance To
Non-GAAP Earnings Guidance
Fiscal Year Ending September 30, 2014

Reconciliation of GAAP diluted net income



per share to non-GAAP diluted net income per share
Low

High
GAAP net income
$ 1.20

$ 1.51
Patron tax
0.33

0.33
Amortization of intangibles
0.04

0.04
Income tax expense
0.65

0.81
Acquisition costs
0.01

0.03
Loss from discontinued operations, net of income taxes
(0.01)

(0.02)
Non-GAAP provision for income taxes
(0.78)

(0.95)
Non-GAAP diluted net income per share
$ 1.44

$ 1.76

[Drmicrocap]

Rick's Cabaret International, Inc. Reports $13.4 Million Non-GAAP Net Income For Fiscal 2013 vs. Year Ago $12.3 Million; Non-GAAP EPS Was $1.40 vs. $1.27
PR Newswire Rick's Cabaret International, Inc.
December 16, 2013 4:05 PM
HOUSTON, Dec. 16, 2013 /PRNewswire/ -- Rick's Cabaret International, Inc., (RICK), the publicly traded hospitality company operating gentlemen's clubs and restaurants, today reported non-GAAP* net income of $13.4 million for the year ended September 30, 2013 vs. $12.3 million in the previous year, on revenue of $112.2 million vs. $95.2 in the previous year. Non-GAAP EPS was $1.40 vs. $1.27 in the previous year. GAAP net income was $9.2 million vs. $7.6 million, with EPS of 96 cents vs. 78 cents last year.

(Logo: http://photos.prnewswire.com/prnh/20110418/MM85342LOGO)

For its fourth quarter ended September 30, 2013, the Company GAAP net income was $1.6 million vs. $1.5 million in the previous year; non-GAAP net income was $2.5 million vs. $3.0 million last year; GAAP EPS was 17 cents for the quarter vs. 15 cents last year; non-GAAP EPS for the fourth quarter of 2013 was 27 cents vs. 31 cents last year.

"Fiscal 2013 was in many ways a transitional year for us as we moved from a recessionary model in many clubs to our more typical formats," said President and CEO Eric Langan. "This shift means that some lower margin customers are visiting the clubs less frequently, but higher margin guests are returning, which helps improve our income picture. The year was also notable for the launch of our restaurant division, which we believe will become a solid growth catalyst in the future. Going forward, we are looking at a strong 2014. We have over 40 locations open at the present time, with six more in various stages of development or construction. We continue to examine acquisition possibilities and ways to unlock the value of our real estate."

The Company will hold a conference call today at 4:30 pm ET during which Mr. Langan will discuss the fiscal year and quarterly results, and comment on the outlook for fiscal 2014. The call-in number is 877-407-8033 (International:201-689-8033), with webcast at www.ricksinvestor.com. Replay of the call is available at 877-660-6853 (ID number 13572974). In addition, following the conference call today the Company plans a "Due Diligence Reception" from 6 p.m. to 8 p.m. at its New York City Rick's Cabaret club (50 West 33rd St.) during which investors will get a chance to tour the club and see its operations first hand.

In the Management Discussion and Analysis section of the Company's Form 10K filed today with the SEC, the company said:

The increase in total revenues for fiscal 2013 was generated chiefly from new clubs and restaurants acquired or launched in 2013, a full year of revenues from clubs purchased in 2012, and increased sales at some existing clubs, especially XTC Cabaret in Austin, Rick's Cabaret DFW and the two cabarets in Minneapolis, MN.
Non-GAAP operating margins were 24.5 percent, level with the previous year, while GAAP operating margins increased to 19.7 percent for 2013 compared to 17.3 percent for the prior year.
The increase in both GAAP and non-GAAP net income, although slowed in part by costs associated with the opening of new restaurants, was attributed to pricing changes, lower cost of goods sold achieved through better inventory management and other efficiencies, and a decline in legal and professional expenses.
Cash flow generated from operating activities remained level with 2012, at $18.4 million.
As of September 30, 2013, the company had long-term debt of $78.6 million compared to $63.5 million a year earlier, of which $38.7 million is related to real estate. A total of $24.4 million in principally real estate debt was added as a result of 2013 acquisitions, while the Company also amortized $9.3 million of long-term debt during the year.



RICK'S CABARET INTERNATIONAL, INC.
CONSOLIDATED STATEMENTS OF INCOME
Year Ended September 30






Year Ended September 30,

(in thousands, except per share data)

2013


2012


2011











Revenues:












Sales of alcoholic beverages

$
43,189


$
38,687


$
32,575

Sales of food and merchandise


12,249



8,810



7,402

Service revenues


49,974



41,942



38,178

Other


6,796



5,781



5,336

Total revenues


112,208



95,220



83,491














Operating expenses:












Cost of goods sold


14,152



12,644



10,427

Salaries and wages


25,145



20,857



18,321

Stock-based compensation


847



315



8

Other general and administrative:












Taxes and permits


17,607



14,639



12,542

Charge card fees


1,482



1,352



1,361

Rent


3,642



2,872



2,988

Legal and professional


3,114



5,861



2,289

Advertising and marketing


4,611



4,046



3,471

Depreciation and amortization


5,314



4,921



3,904

Insurance


2,208



1,439



1,157

Utilities


2,241



1,762



1,605

Loss on sale of property and other


16



332



-

Other


9,716



7,667



6,624

Total operating expenses


90,095



78,707



64,697

Income from operations


22,113



16,513



18,794














Other income (expense):












Interest income


9



19



118

Interest expense


(6,538)



(4,003)



(3,930)

Interest expense – loan origination costs


(539)



(310)



(359)

Gain on change in fair value of derivative instruments


1



117



129

Gain on settlement of debt


-



-



903

Income from continuing operations before income taxes


15,046



12,336



15,655

Income taxes


5,501



4,374



5,403

Income from continuing operations


9,545



7,962



10,252

Loss from discontinued operations, net of income taxes


(143)



(172)



(2,195)

Net income


9,402



7,790



8,057

Less: net income attributable to noncontrolling interests


(211)



(212)



(211)

Net income attributable to Rick's Cabaret International, Inc.

$
9,191


$
7,578


$
7,846














Basic earnings (loss) per share attributable to Rick's shareholders:












Income from continuing operations

$
0.98


$
0.80


$
1.01

Loss from discontinued operations


(0.02)



(0.02)



(0.22)

Net income

$
0.97


$
0.78


$
0.79

Diluted earnings (loss) per share attributable to Rick's shareholders:












Income from continuing operations

$
0.98


$
0.80


$
1.01

Loss from discontinued operations


(0.01)



(0.02)



(0.22)

Net income

$
0.96


$
0.78


$
0.79














Weighted average number of common shares outstanding:












Basic


9,518



9,691



9,930

Diluted


9,615



9,697



9,932





RICK'S CABARET INTERNATIONAL, INC.
CONSOLIDATED STATEMENTS OF INCOME
Quarter Ended September 30



Quarter Ended September 30,
(in thousands, except per share data)
2013

2012




Revenues:



Sales of alcoholic beverages
$ 10,635

$ 9,654
Sales of food and merchandise
3,505

2,191
Service revenues
11,885

10,199
Other
2,006

1,823
Total revenues
28,031

23,867




Operating expenses:



Cost of goods sold
3,591

3,043
Salaries and wages
6,545

5,429
Stock-based compensation
2

282
Other general and administrative:



Taxes and permits
4,538

3,621
Charge card fees
356

310
Rent
1,443

722
Legal and professional
851

3,428
Advertising and marketing
1,159

1,052
Depreciation and amortization
1,345

1,213
Insurance
566

412
Utilities
677

498
Loss on sale of property and other
16

-
Other
2,589

2,235




Total operating expenses
23,678

20,214
Income from operations
4,353

3,653
Other income (expense):



Interest income
3

17
Interest expense
(1,804)

(1,255)
Gain on change in fair value of derivative instruments
(1)

117
Gain on settlement of debt
-

-
Income from continuing operations before income taxes
2,551

2,532
Income taxes
893

1,008
Income from continuing operations
1,658

1,524
Loss from discontinued operations, net of income taxes
(2)

(17)
Net income
1,656

1,507
Less: net income attributable to non-controlling interests
(52)

(53)
Net income attributable to Rick's Cabaret International, Inc.
$ 1,604

$ 1,454
Basic earnings (loss) per share attributable to Rick's shareholders:



Income from continuing operations
$ 0.17

$ 0.15
Loss from discontinued operations
-

-
Net income
$ 0.17

$ 0.15

Diluted earnings (loss) per share attributable to Rick's shareholders:



Income from continuing operations
$ 0.17

$ 0.15
Loss from discontinued operations
-

-
Net income
$ 0.17

$ 0.15




Weighted average number of common shares outstanding:



Basic
9,504

9,633
Diluted
9,603

9,636








RICK'S CABARET INTERNATIONAL, INC.
NON-GAAP* MEASURES FOR YEAR ENDING SEPTEMBER 30

The following tables present our non-GAAP measures for the periods indicated (in thousands, except per share amounts):



For the Year Ended

September 30,






(in thousands)
2013

2012

2011

Reconciliation of GAAP net income to






Adjusted EBITDA






GAAP net income
$ 9,191

$ 7,578

$ 7,846

Income tax expense
5,501

4,374

5,403

Interest expense and income and gain on derivative
7,067

4,177

4,042

Litigation and other one-time settlements
707

2,533

-

Acquisition costs
166

-

119

Loss from discontinued operations
143

172

2,195

Depreciation and amortization
5,314

4,921

3,904

Adjusted EBITDA **
$ 28,089

$ 23,755

$ 23,509








Reconciliation of GAAP net income (loss) to






non-GAAP net income






GAAP net income
$ 9,191

$ 7,578

$ 7,846

Patron tax
3,236

3,019

2,875

Amortization of intangibles
409

463

459

(Gain) loss on change in fair value of derivative instruments
(1)

(117)

(129)

Stock-based compensation
847

315

8

Litigation and other one-time settlements
707

2,533

-

Income tax expense
5,501

4,374

5,403








Acquisition costs
166

462

100

Loss from discontinued operations, net of income taxes
143

172

2,195

Non-GAAP provision for income taxes
(6,773)

(6,469)

(6,562)

Non-GAAP net income
$ 13,426

$ 12,330

$ 12,195



Reconciliation of GAAP diluted net income





per share to non-GAAP diluted net income per share





Fully diluted shares
9,615

9,697

9,932
GAAP net income
$ 0.96

$ 0.78

$ 0.79
Patron tax
0.34

0.31

0.29
Amortization of intangibles
0.04

0.05

0.05
(Gain) loss on change in fair value of derivative instruments
(0.00)

(0.01)

(0.01)
Stock-based compensation
0.09

0.03

0.00
Litigation and other one-time settlements
0.07

0.26

-
Income tax expense
0.57

0.45

0.54






Acquisition costs
0.02

0.05

0.01
Loss from discontinued operations, net of income taxes
0.01

0.02

0.22
Non-GAAP provision for income taxes
(0.70)

(0.67)

(0.66)
Non-GAAP diluted net income per share
$ 1.40

$ 1.27

$ 1.23






Reconciliation of GAAP operating income to





non-GAAP operating income





GAAP operating income
$22,113

$16,513

$ 18,794
Patron tax
3,236

3,019

2,875
Amortization of intangibles
409

463

459
Stock-based compensation
847

315

8
Litigation and other one-time settlements
707

2,533

-






Acquisition costs
166

462

100
Non-GAAP operating income
$27,478

$23,305

$ 22,236






Reconciliation of GAAP operating margin to





non-GAAP operating margin





GAAP operating income
19.7%

17.3%

22.5%
Patron tax
2.9%

3.2%

3.4%
Amortization of intangibles
0.4%

0.5%

0.5%
Stock-based compensation
0.8%

0.3%

0.0%
Litigation and other one-time settlements
0.6%

2.7%

0.0%
Acquisition costs
0.1%

0.5%

0.1%
Non-GAAP operating margin
24.5%

24.5%

26.6%


*Explanation of Non-GAAP Financial Measures

In addition to our financial information presented in accordance with GAAP, management uses certain "non-GAAP financial measures" within the meaning of the SEC Regulation G, to clarify and enhance understanding of past performance and prospects for the future. Generally, a non-GAAP financial measure is a numerical measure of a company's operating performance, financial position or cash flows that excludes or includes amounts that are included in or excluded from the most directly comparable measure calculated and presented in accordance with GAAP. We monitor non-GAAP financial measures because it describes the operating performance of the company and helps management and investors gauge our ability to generate cash flow, excluding some recurring charges that are included in the most directly comparable measures calculated and presented in accordance with GAAP. Relative to each of the non-GAAP financial measures, we further set forth our rationale as follows:

Non-GAAP Operating Income and Non-GAAP Operating Margin. We exclude from GAAP operating income and GAAP operating margin amortization of intangibles, patron taxes, gains and losses from asset sales, stock-based compensation charges, litigation and other one-time legal settlements and acquisition costs. We believe that excluding these items assists investors in evaluating period-over-period changes in our operating income and operating margin without the impact of items that are not a result of our day-to-day business and operations.

Non-GAAP Net Income and Non-GAAP Net Income per Basic Share and per Diluted Share. We exclude from GAAP net income and GAAP net income per diluted share and per basic share amortization of intangibles, patron taxes, income tax expense, impairment charges, gains and losses from asset sales, stock-based compensation, litigation, loss from discontinued operations and other one-time legal settlements and acquisition costs, and include the Non-GAAP provision for income taxes, calculated as the tax effect at 35% effective tax rate of the pre-tax non-GAAP income before taxes less stock-based compensation, because we believe that excluding such measures helps management and investors better understand our operating activities.

Adjusted EBITDA. We exclude from GAAP net income depreciation expense, amortization of intangibles, income tax, interest expense, interest income, gains and losses from asset sales, acquisition costs, litigation and other one-time legal settlements and impairment charges because we believe that adjusting for such items helps management and investors better understand operating activities. 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.

About Rick's Cabaret: Rick's Cabaret International, Inc. (RICK) is home to restaurants and upscale adult nightclubs serving primarily businessmen and professionals that offer live entertainment, dining and bar operations. Nightclubs in New York City, Los Angeles, Miami, Philadelphia, Charlotte, Dallas/Ft. Worth, Houston, Minneapolis, Indianapolis and other cities operate as "Rick's Cabaret," "XTC," "Club Onyx," "Vivid Cabaret," "Jaguars" and "Tootsie's Cabaret" and other brand names. Restaurants include "Bombshells" and "Ricky Bobby Sports Saloon." 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 [e-mail] 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.

[ChrisJP]

Looks like today's earnings announcemenst have fixed whatever was ailing them !

Chris

[Brownguy316]

Any explanation for today's drop?

Is there anyone who has an idea why this stock fell %4.5 today?

[ChrisJP]

wow up .80 today. All the small stocks are finally popping. I guess the bull market is finallynear its end.

Chris

[ChrisJP]

wow 11.70. Too bad I sold at $9.

Chris

[ChrisJP]

wow nice two day move .... finally.

Too bad I'm out.

Chris

[Drmicrocap]

Rick's Cabaret International, Inc. Reports 20.4% Increase In Net Income For Its Third Quarter; Revenues Rose 18.3%

Non-GAAP Net Income Rose 31.5% to $3.4 Million

PR NewswirePress Release: Rick's Cabaret International, Inc. –
HOUSTON, Aug. 8, 2013 /PRNewswire/ -- Rick's Cabaret International, Inc. (RICK) today reported consolidated total revenues of $28.3 million for its third quarter ended June 30, 2013, an increase of 18.3 percent over the $23.9 million in the same period last year.

(Logo: http://photos.prnewswire.com/prnh/20110418/MM85342LOGO)

Consolidated net income was $2.2 million, an increase of 20.4 percent over the $1.8 million last year; non-GAAP* net income of $3.4 million versus $2.6 million last year; GAAP earnings of 23 cents per diluted share vs. 19 cents last year; non-GAAP earnings per share of 35 cents versus 27 cents last year; GAAP income from operations this quarter was $5.7 million compared with $4.0 million in the same quarter last year while non-GAAP income from operations** was $7.0 million compared with $5.1 million. Adjusted EBITDA*** was $6.9 million, versus $5.4 million last year.

Net income was impacted by $540,000 in one time or unusual expenses of $230,000 in costs for new businesses yet to be opened, and $310,000 to settle two lawsuits. "The quarter was strong and we are particularly pleased with the performance of the Jaguars clubs and our new Bombshells Restaurant in Dallas," said Eric Langan, president and CEO of the company. "The challenges of the last four years are largely behind us, we have learned from mistakes such as the Las Vegas acquisition, and we are now on a solid growth trajectory."

Mr. Langan noted that the cost of goods sold for same-location-same-period of club operations for the third quarter was 12.9 percent, compared to 13.7 percent for the same period ended June 30, 2012. The decrease was due principally to the hiring of a corporate beverage director and the continuing of the company's national buying power for alcoholic beverages and energy drinks. Operating margin, the percentage of operating income to total revenues, was 20 percent this year versus 16.9 percent.

Mr. Langan will discuss the quarterly results in a conference call today at 4:30 p.m. EDT. The call is being webcast by PrecisionIR, www.precisionir.com and can be accessed at the Rick's Cabaret investor website, www.ricksinvestor.com or via www.InvestorCalendar.com. The toll free dial-in number is 877-407-8033; live international dial-in is 201-689-8033. The replay number is 877-660-6853 (International:201-612-7415) with Conference ID 416486 and replay is available until August 15th at 11:59 PM.





RICK'S CABARET INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS




ASSETS








(in thousands, except per share data)



June 30,

2013


September 30, 2012


Assets



(UNAUDITED)




Current assets:






Cash and cash equivalents



$ 9,045




$ 5,520


Accounts receivable:









Trade, net



1,876




1,743


Other, net



486




296


Marketable securities



551




1,059


Inventories



1,475




1,260


Deferred tax asset



4,463




3,635


Prepaid expenses and other current assets



2,297




1,123


Assets of discontinued operations



26




72


Total current assets



20,219




14,708











Property and equipment, net



95,359




79,940











Other assets:









Goodwill



43,987




43,421


Other indefinite lived intangibles



54,966




50,608


Definite lived intangibles



1,153




1,177


Other



4,717




2,539


Total other assets



104,823




97,745











Total assets



$ 220,401




$ 192,393






















LIABILITIES AND STOCKHOLDERS' EQUITY










(in thousands, except per share data)





June 30,

2013



September 30, 2012


Liabilities and Stockholders' Equity



(UNAUDITED)





Current liabilities:








Accounts payable


$

2,364


$

1,865


Accrued liabilities



6,878



4,298


Texas patron tax liability



12,335



9,849


Current portion of derivative liabilities



-



75


Current portion of long-term debt



7,770



6,603


Liabilities of discontinued operations



47



163


Total current liabilities



29,394



22,853










Deferred tax liability



25,824



23,963


Other long-term liabilities



876



833


Long-term debt



68,774



56,925


Total liabilities



124,868



104,574










Commitments and contingencies
















Temporary equity - Common stock, subject to put rights zero and 9 shares, respectively



-



207










PERMANENT STOCKHOLDERS' EQUITY:








Preferred stock, $.10 par, 1,000 shares authorized; none issued and outstanding



-



-


Common stock, $.01 par, 20,000 shares authorized; 9,520 and 9,584 shares issued and outstanding, respectively



95



96


Additional paid-in capital



61,554



61,212


Accumulated other comprehensive income



46



59


Retained earnings



30,536



22,939


Total Rick's permanent stockholders' equity



92,231



84,306


Noncontrolling interests



3,302



3,306


Total permanent stockholders' equity



95,533



87,612










Total liabilities and stockholders' equity


$

220,401


$

192,393


























RICK'S CABARET INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME







(in thousands, except per share data)



FOR THE THREE MONTHS

ENDED JUNE 30,


FOR THE NINE MONTHS

ENDED JUNE 30,












2013


2012


2013


2012



(UNAUDITED)


(UNAUDITED)











Revenues:









Sales of alcoholic beverages

$ 11,105


$ 9,711


$ 32,554


$ 29,033


Sales of food and merchandise

3,288


2,286


8,744


6,619


Service revenues

12,382


10,576


38,089


31,743


Other

1,533


1,348


4,790


3,958


Total revenues

28,308


23,921


84,177


71,353











Operating expenses:









Cost of goods sold

3,680


3,279


10,561


9,601


Salaries and wages

6,413


5,299


18,600


15,428


Stock compensation

282


12


845


33


Other general and administrative:









Taxes and permits

4,275


3,618


13,069


11,018


Charge card fees

410


361


1,126


1,042


Rent

846


726


2,199


2,150


Legal and professional

642


992


2,263


2,433


Advertising and marketing

1,181


959


3,452


2,994


Insurance

573


387


1,642


1,027


Utilities

523


454


1,564


1,264


Depreciation and amortization

1,337


1,398


3,969


3,708


Settlement of lawsuits

160


200


160


2,031


Loss on sale of assets

-


332


-


332


Other

2,336


1,867


6,967


5,432


Total operating expenses

22,658


19,884


66,417


58,493


Operating income

5,650


4,037


17,760


12,860











Other income (expense):









Interest income and other

(2)


(2)


6


2


Interest expense

(1,868)


(1,098)


(5,273)


(3,178)


Gain (loss) on change in fair value of derivative instruments



1




(17)




2




120


Income from continuing operations before income taxes



3,781




2,920




12,495




9,804


Income taxes

1,409


1,022


4,608


3,366


Income from continuing operations

2,372


1,898


7,887


6,438


Loss from discontinued operations, net of income taxes



(124)




(22)




(141)




(155)


Net income

2,248


1,876


7,746


6,283


Less: net income attributable to noncontrolling interests



(53)




(53)




(159)




(159)


Net income attributable to Rick's Cabaret International, Inc.





$ 2,195






$ 1,823






$ 7,587






$ 6,124








































Basic earnings (loss) per share attributable to Rick's shareholders:









Income from continuing operations

$ 0.24


$ 0.19


$ 0.81


$ 0.65


Loss from discontinued operations

$ (0.01)


$ (0.00)


$ (0.01)


$ (0.02)


Net income

$ 0.23


$ 0.19


$ 0.80


$ 0.63


Diluted earnings (loss) per share attributable to Rick's shareholders:









Income from continuing operations

$ 0.24


$ 0.19


$ 0.81


$ 0.65


Loss from discontinued operations

$ (0.01)


$ (0.00)


$ (0.01)


$ (0.02)


Net income

$ 0.23


$ 0.19


$ 0.79


$ 0.63




Weighted average number of common shares outstanding:









Basic

9,479


9,725


9,523


9,710


Diluted

9,647


9,731


9,871


9,717




The following tables present our non-GAAP measures for the periods ended June 30, 2013 and 2012 (in thousands, except per share amounts):






For the Three Months


For the Nine Months



Ended June 30,


Ended June 30,









(in thousands)

2013


2012


2013


2012


Reconciliation of GAAP net income to









Adjusted EBITDA









GAAP net income

$ 2,195


$ 1,823


$ 7,587


$ 6,124


Income tax expense

1,409


1,022


4,608


3,366


Interest expense and income and gain on derivative

1,869


1,117


5,265


3,056


Loss from discontinued operations

124


22


141


155


Depreciation and amortization

1,337


1,398


3,969


3,708


Adjusted EBITDA

$ 6,934


$ 5,382


$ 21,570


$ 16,409

















Reconcilation of GAAP net income (loss) to









non-GAAP net income









GAAP net income

$ 2,195


$ 1,823


$ 7,587


$ 6,124


Patron tax

746


726


2,536


2,265


Amortization of intangibles

92


117


322


345


(Gain) loss on change in fair value of derivative instruments

(1)


17


(2)


(120)


Stock-based compensation

282


12


845


33


Litigation and other one-time settlements

160


200


160


2,031


Income tax expense

1,409


1,022


4,608


3,366


Acquisition costs

30


-


119


131


Loss from discontinued operations, net of income taxes

124


22


141


155


Non-GAAP provision for income taxes

(1,664)


(1,374)


(5,415)


(5,004)


Non-GAAP net income

$ 3,373


$ 2,565


$ 10,901


$ 9,326











Reconciliation of GAAP diluted net income









per share to non-GAAP diluted net income per share









Fully diluted shares

9,647


9,731


9,871


9,717


GAAP net income

$ 0.23


$ 0.19


$ 0.77


$ 0.63


Patron tax

0.08


0.07


0.26


0.23


Amortization of intangibles

0.01


0.01


0.03


0.04


(Gain) loss on change in fair value of derivative instruments

-


0.00


(0.00)


(0.01)


Stock-based compensation

0.03


0.00


0.09


0.00


Litigation and other one-time settlements

0.02


0.02


0.02


0.21


Income tax expense

0.15


0.11


0.47


0.35


Acquisition costs

0.00


-


0.01


0.01


Loss from discontinued operations, net of income taxes

0.01


0.00


0.01


0.02


Non-GAAP provision for income taxes

(0.17)


(0.14)


(0.55)


(0.51)


Non-GAAP diluted net income per share

$ 0.35


$ 0.27


$ 1.11


$ 0.96











Reconciliation of GAAP operating income to









non-GAAP operating income









GAAP operating income

$ 5,650


$ 4,037


$ 17,760


$ 12,860


Patron tax

746


726


2,536


2,265


Amortization of intangibles

92


117


322


345


Stock-based compensation

282


12


845


33


Litigation and other one-time settlements

160


200


160


2,031


Acquisition costs

30


-


134


131


Non-GAAP operating income

$ 6,960


$ 5,092


$ 21,757


$ 17,665











Reconciliation of GAAP operating margin to









non-GAAP operating margin









GAAP operating income

20.0%


16.9%


21.1%


18.0%


Patron tax

2.6%


3.0%


3.0%


3.2%


Amortization of intangibles

0.3%


0.5%


0.4%


0.5%


Stock-based compensation

1.0%


0.1%


1.0%


0.0%


Litigation and other one-time settlements

0.6%


0.8%


0.2%


2.8%


Acquisition costs

0.1%


0.0%


0.2%


0.2%


Non-GAAP operating margin

24.6%


21.3%


25.8%


24.8%













* Non-GAAP Net Income. We exclude from non-GAAP net income amortization of intangibles, patron taxes, income tax expense, impairment charges, gains and losses from asset sales, stock based compensation, litigation and other one-time legal settlements and acquisition costs, and include the Non-GAAP provision for income taxes, calculated as the tax-effect at 35% effective tax rate of the pre-tax non-GAAP income before taxes less stock-based compensation, because we believe that excluding such measures helps management and investors better understand our operating activities.

** Non-GAAP Operating Income. We exclude from Non-GAAP operating income amortization of intangibles, patron taxes, gains and losses from asset sales, stock-based compensation charges, litigation and other one-time legal settlements and acquisition costs. We believe that excluding these items assists investors in evaluating period-over-period changes in our operating income and operating margin without the impact of items that are not a result of our day-to-day business and operations.

*** Adjusted EBITDA. We exclude from Adjusted EBITDA depreciation expense, amortization of intangibles, income tax, interest expense, interest income, gains and losses from asset sales, acquisition costs, litigation and other one-time legal settlements and impairment charges because we believe that adjusting for such items helps management and investors better understand operating activities. 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.

Our Form 10-Q contains additional details relative to each of the non-GAAP financial measures and is posted on our website at www.ricksinvestor.com.

About Rick's Cabaret: Rick's Cabaret International, Inc. (RICK) is home to restaurants and upscale adult nightclubs serving primarily businessmen and professionals that offer live entertainment, dining and bar operations. Nightclubs in New York City, Los Angeles, Miami, Philadelphia, Charlotte, Dallas/Ft. Worth, Houston, Minneapolis, Indianapolis and other cities operate as "Rick's Cabaret," "XTC," "Club Onyx," "Vivid Cabaret" 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 [e-mail] 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.

[hebercreeper]

Something about the way they look at me, I just can't help but think they really like me.

[Rick026]

I finally found it, a stock with my name on it =D

[ChrisJP]

- $RICK seems to be participating in the rally. I don't own any, but I'm looking.

Chris

[RainmanOregon]

It really is indeed!!

[ChrisJP]

Nice to see $RICK back in the mid $8s.

Chris

[Gogreen2011]

I made good money off Rick's stock since getting in off ground floor. Now will do even better with MJNA.

[RainmanOregon]

RICK under $7.75 is a buy for me. I may buy a few to flip at $8.00.

[RainmanOregon]

NEWS OUT ~ Rick's Cabaret Agrees To Acquire Additional Adult Business In Midtown New York City

Ricks Cabaret International, Inc. (MM) (NASDAQ:RICK)

Today : Monday 20 August 2012
Rick's Cabaret Agrees To Acquire Additional Adult Business In Midtown New York City Upscale Adult Nightclub Operator Will Open Its Second Manhattan Location in 2013
PR Newswire

NEW YORK, Aug. 20, 2012

NEW YORK, Aug. 20, 2012 /PRNewswire/ -- Rick's Cabaret International, Inc. (NASDAQ:RICK), the publicly traded group of upscale gentlemen's clubs, has agreed to acquire a second adult business in midtown New York City. The company plans to create a new gentlemen's club on the midtown Manhattan site near Times Square.

(Logo: http://photos.prnewswire.com/prnh/20110418/MM85342LOGO)

Rick's Cabaret said it will pay $3 million for the business, currently operating as an adult book and novelty store. The transaction calls for a payment of $1.5 million in cash and $1.5 million in six percent promissory notes that are convertible into shares of Rick's Cabaret common stock at a conversion price of $10.25. The company will also enter into a new 20-year lease for the building at the closing of the transaction.

"It is virtually impossible to find an appropriate location for an adult club in midtown Manhattan, so we are very fortunate that we have secured this rare site," said Eric Langan, President and CEO of Rick's Cabaret, which currently operates 24 clubs around the country. "It is close to Times Square, numerous hotels and businesses, and is ideal for the kind of upscale club we operate," he added, noting that the exact location of the new club will be disclosed in due course. The new club is expected to open in about a year, after renovation of the building.

The Houston-based company opened Rick's Cabaret/New York in 2005 after completely remodeling a building at 50 West 33rd Street, across from the Empire State Building and down the street from Madison Square Garden and Penn Station. With a Zagat-rated steakhouse, rooftop cigar lounge and a full floor of VIP suites it is a popular spot with businessmen, celebrities, athletes and couples. Playboy.com named it the "best strip club in New York."

Closing on the transaction is subject to terms and conditions customary to a transaction of this nature.

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 [e-mail] 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.

SOURCE Rick's Cabaret International, Inc.

[RainmanOregon]

Horrible story here...Wrongful Death Lawsuit Filed Against Rick's Cabaret in Houston after Fatal DWI Crash

Ricks Cabaret International, Inc. (MM) (NASDAQ:RICK)

Today : Monday 6 August 2012
Wrongful Death Lawsuit Filed Against Rick's Cabaret in Houston after Fatal DWI Crash The Lanier Law Firm says drink-sales policy at popular strip club led to student's death
PR Newswire

HOUSTON, Aug. 6, 2012

HOUSTON, Aug. 6, 2012 /PRNewswire/ -- An incentive program that encourages workers to sell as many drinks as possible at Rick's Cabaret International Inc. (Nasdaq: RICK) in Houston is the subject of a lawsuit filed today by the family of an 18-year-old high school student who was killed last year by an intoxicated driver who had just left the club.

Katherine Mabel Jones, known by her friends as "Emily," was killed on March 30, 2011, when her truck was struck from behind by a car driven by Erasmo Ramirez of Houston. Ms. Jones was a popular senior at Caney Creek High School in Conroe, where she also was a member of the school's color guard.

The horrific crash dislodged the bed of Ms. Jones' truck, crushing the truck's cab. She died at a Houston hospital approximately nine hours later with extensive blunt force injuries and a subdural brain hemorrhage. Less than 30 minutes before the crash, Mr. Ramirez was thrown out of Rick's Cabaret after running out of money and refusing to pay for more drinks. Investigators determined his blood alcohol content was 0.295, more than three times the legal limit in Texas.

Witnesses told investigators that Mr. Ramirez was not using his car's headlights prior to the crash, and evidence from the accident scene indicates he was traveling approximately 130 mph. Mr. Ramirez was charged with intoxication manslaughter and later was sentenced to 15 years in prison.

According to the lawsuit filed by attorneys from The Lanier Law Firm, Rick's Cabaret requires its entertainers to pay a nightly "house charge" in order to work at the club. The lawsuit says workers are encouraged to pay the nightly fee by accumulating "credits" based on the number of drinks they sell, a policy that encourages over-serving the club's patrons, including intoxicated customers such as Mr. Ramirez.

"Emily will never be able to realize the beautiful life she had ahead of her because a strip club wanted to make more money regardless of the dangers," says Houston attorney Mark Lanier, counsel for the Jones family and founder of The Lanier Law Firm. "We're determined that those responsible for taking this young woman's life will be held accountable."

In addition to Rick's Cabaret, also named as defendants in the lawsuit are Mr. Ramirez and Houston-based Trumps Inc., which maintains the club's alcoholic beverage permit.

With offices in Houston, Los Angeles, New York, and Palo Alto, The Lanier Law Firm is committed to addressing client concerns with effective and innovative solutions in courtrooms across the country. The firm is composed of outstanding trial attorneys with decades of experience handling cases involving pharmaceutical liability, asbestos exposure, intellectual property, business litigation, product liability, maritime law, bad faith insurance claims, and sports and entertainment law.

For more information on the wrongful death lawsuit against Rick's Cabaret, please contact J.D. Cargill at 713-659-5200.



SOURCE The Lanier Law Firm

[ChrisJP]

Rick's Cabaret International, Inc. Nightclub Sales Increase 15.2% In Third Quarter To $23.6 Million

http://finance.yahoo.com/news/ricks-cabaret-international-inc-nightclub-130500333.html

Chris

[ChrisJP]

Back to the upper $8s

[ChrisJP]

wow -- straight down today -- under $8.

[ChrisJP]

yikes -- another crazy day for $RICK.

Chris

[RainmanOregon]

Hey Chris,I am short or have puts on a lot of big boards. Looks like we are nowhere near out of the woods yet. GLTY, talk to ya later.