RCI Hospitality Holdings Inc (RICK)

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Rick’s Cabaret International, Inc. Reports First Quarter Revenues of $17.3 Million with Net of $790,832





Rick’s Cabaret International, Inc. (NASDAQ: RICK), the nation’s premier operator of upscale gentlemen’s clubs, reported consolidated total revenues of $17,311,171 for its first quarter ending December 31, 2008, compared to $10,954,338 for the same period in the previous year, an increase of 58 percent. The company had net income of $790,832 for the period or eight cents per diluted share, compared with $1,783,272 or 24 cents per share in the previous year.


The higher revenues were primarily attributable to increases of $6,360,179 from the company’s new clubs in Miami, Dallas, Philadelphia and Las Vegas as well as its new media division. Total revenues for same-location-same-period of club operations were essentially flat at $8,767,438, compared with $8,772,902 a year earlier, which the company attributes primarily to decreased customer traffic and spending related to the recession.


The company attributed the drop in earnings to a number of factors, including operating losses exceeding $1.9 million from some of its nightclubs, plus other factors including higher taxes, debt service, the cost of rebranding its Philadelphia nightclub, and an impairment taken in connection with the valuation of a nightclub in San Antonio, Texas.