BIG TIME NEWS!!!--Rick’s Cabaret International, Inc. Reports 165 Percent Rise in First Quarter Income on Higher Revenues & Reduced Expenses; ...
Ricks Cabaret International, Inc. (MM) (NASDAQ:RICK)
Intraday Stock Chart
Today : Thursday 10 February 2011
Rick’s Cabaret International, Inc. (NASDAQ: RICK), the nation’s leading group of upscale gentlemen’s clubs, today reported net income of $2.1 million for the period ending December 31, 2010, compared with $783,000 in the same period last year, a 165 percent increase. Net income per fully diluted share for the quarter was 21 cents, compared with 8 cents in the previous year. The company had revenues of $20.9 million in its first quarter, compared with $20 million for the same period last year.
The improvement in net income was due primarily to a combination of the higher revenues and lower operating expenses, which dropped to $16.7 million compared with $17.6 million for the same quarter last year.
The increase in total revenue was attributed primarily to the addition of $1.4 million in sales from two new clubs in Fort Worth and one in Austin.
“We had a very good quarter and we are happy with our start for the 2011 fiscal year,” said Eric Langan, President and CEO of Rick’s Cabaret, which now includes 22 clubs nationwide. “Our major clubs in New York City and Miami continue to thrive. We opened a new club just outside the Dallas/Fort Worth Airport in January, and we had a total of seven clubs in the DFW Metroplex to serve Super Bowl fans. We expect to remain on track to make at least one acquisition per quarter for the balance of this year.”
Other highlights of the first quarter:
There was a significant decrease in advertising and marketing expenses, principally through the reduction of marketing costs in Las Vegas during 2010 and reduced radio advertising in the Dallas/Fort Worth market.
Rick’s Cabaret in Las Vegas lost approximately $370,000 for the quarter ending December 31, 2010, on revenues of $1.1 million, compared with a loss for the quarter in the previous year of $500,000 on revenues of $3.1 million.
The company’s Media Division lost approximately $76,000 before income taxes for the quarter, compared with approximately $65,000 in the 2009 quarter, but as the economy improves the company believes the division will become profitable through more cost control and increased revenues.
During the three months ended December 31, 2010, the company purchased 90,800 shares of common stock in the open market at prices ranging from $7.03 to $7.43 which compares with the purchase of 48,200 shares in the previous years at prices ranging from $3.54 to $5.95.
The company had cash on hand at the end of the quarter of $18.7 million compared with $9.5 million in the previous year, having generated $2.8 million from operating activities vs. $3.2 million last year. At the end of the quarter the company had working capital of $5.1 million compared to $377,552 last year, a result of increased profit and also the net cash still available from the convertible debt, which is principally long-term in nature.
RICK'S CABARET INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
ASSETS
(in thousands, except per share data)
December 31,
2010
September 30, 2010
Assets (UNAUDITED)
Current assets:
Cash and cash equivalents $ 18,719 $ 19,168
Accounts receivable:
Trade, net 830 888
Other, net 278 204
Marketable securities 479 -
Inventories 1,481 1,264
Deferred tax asset 1,753 1,504
Prepaid expenses and other current assets 716 951
Assets of discontinued operations 133 148
Total current assets 24,389 24,127
Property and equipment, net 59,262 59,559
Other assets:
Goodwill and indefinite lived intangibles, net 62,076 62,076
Definite lived intangibles, net 1,080 1,197
Other 1,520 1,412
Total other assets 64,676 64,685
Total assets $ 148,327 $ 148,371
LIABILITIES AND STOCKHOLDERS’ EQUITY
(in thousands, except per share data)
December 31,
2010
September 30, 2010
Liabilities and Stockholders' Equity (UNAUDITED)
Current liabilities:
Accounts payable $
629
$
731
Accrued liabilities 4,106 4,529
Texas patron tax liability 4,650 3,955
Current portion of derivative liabilities 1,236 1,276
Current portion of long-term debt 8,663 7,883
Liabilities of discontinued operations 53 47
Total current liabilities 19,337 18,421
Deferred tax liability 15,456 15,566
Other long-term liabilities 736 719
Long-term debt 33,446 34,803
Derivative liabilities at fair value, less current portion 816 1,243
Total liabilities 69,791 70,752
Commitments and contingencies
Temporary equity - Common stock, subject to put rights 198 and
317 shares, respectively
4,020 4,366
PERMANENT STOCKHOLDERS' EQUITY:
Preferred stock, $.10 par, 1,000 shares authorized; none issued
and outstanding
- -
Common stock, $.01 par, 20,000 shares authorized; 9,676 and 9,766
shares issued and outstanding, respectively
97 98
Additional paid-in capital 61,542 62,326
Accumulated other comprehensive loss (26 ) -
Retained earnings 9,590 7,515
Total Rick’s permanent stockholders’ equity 71,203 69,939
Noncontrolling interests 3,313 3,314
Total permanent stockholders’ equity 74,516 73,253
Total liabilities and stockholders’ equity $ 148,327 $
148,371
RICK'S CABARET INTERNATIONAL, INC.
CONSOLIDATED STATEMENTS OF INCOME
Three Months Ended December 31,
(in thousands, except per share data)
2010 2009
(UNAUDITED)
Revenues:
Sales of alcoholic beverages $ 8,359 $ 8,050
Sales of food and merchandise 1,784 1,590
Service revenues 9,412 9,292
Internet revenues 125 145
Media revenues 216 257
Other 962 671
Total revenues 20,858 20,005
Operating expenses:
Cost of goods sold 2,518 2,456
Salaries and wages 4,676 4,310
Stock-based compensation - 44
Other general and administrative:
Taxes and permits 3,063 2,836
Charge card fees 364 346
Rent 1,079 993
Legal and professional 485 650
Advertising and marketing 1,183 2,938
Depreciation and amortization 1,072 842
Insurance 303 262
Utilities 406 406
Other 1,579 1,536
Total operating expenses 16,728 17,619
Income from operations 4,130 2,386
Other income (expense):
Interest income 12 4
Interest expense (1,124 ) (1,029 )
Gain on change in fair value of derivative instruments 148 44
Income from continuing operations before income taxes 3,166 1,405
Income taxes 1,026 514
Income from continuing operations 2,140 891
Loss from discontinued operations, net of income taxes (11 ) (35 )
Net income 2,129 856
Less: net income attributable to noncontrolling interests (53 ) (73 )
Net income attributable to Rick’s Cabaret International, Inc. $ 2,076 $ 783
Basic earnings (loss) per share attributable to Rick’s shareholders:
Income from continuing operations $ 0.21 $ 0.09
Loss from discontinued operations (0.00 ) (0.00 )
Net income $ 0.21 $ 0.08
Diluted earnings (loss) per share attributable to Rick’s shareholders:
Income from continuing operations $ 0.21 $ 0.09
Loss from discontinued operations (0.00 ) (0.00 )
Net income $ 0.21 $ 0.08
Weighted average number of common shares outstanding:
Basic 10,043 9,370
Diluted 10,045 9,385
About Rick’s Cabaret: Rick’s Cabaret International, Inc. (NASDAQ: RICK) is home to 22 upscale adult nightclubs serving primarily businessmen and professionals that offer live entertainment, dining and bar operations. Nightclubs in New York City, Miami, Philadelphia, New Orleans, Charlotte, Dallas, Houston, Minneapolis and other cities operate under the names "Rick's Cabaret," "XTC," “Club Onyx” and “Tootsie’s Cabaret”. Sexual contact is not permitted at these locations. Rick’s Cabaret also operates a media division, ED Publications, and owns the adult Internet membership Website couplestouch.com as well as a network of online adult auction sites under the flagship URL naughtybids.com. Rick’s Cabaret common stock is traded on NASDAQ under the symbol RICK. For further information contact ir@ricks.com or visit ricksinvestor.com.
Forward-looking Statements: This document contains forward-looking statements that involve a number of risks and uncertainties that could cause the company’s actual results to differ materially from those indicated in this document, including the risks and uncertainties associated with operating and managing an adult business, the business climates in cities where it operates, the success or lack thereof in launching and building the company’s businesses, risks and uncertainties related to the operational and financial results of our Web sites, conditions relevant to real estate transactions, and numerous other factors such as laws governing the operation of adult entertainment businesses, competition and dependence on key personnel. Additional factors that could cause the Company’s results to differ materially from those described in the forward-looking statements are described in forms filed with the SEC from time to time and available at ricksinvestor.com or on the SEC's internet website at sec.gov. 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 ricksinvestor.com.
