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Rick's Cabaret International, Inc. Reports 23.3% Growth In Revenue And 21.1% Growth In Net Income For Its First Quarter 2013

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

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

Mr. Langan will discuss the results in a conference call today at 4:30 p.m. ET that is being webcast by Vcall and can be accessed at the Rick's Cabaret investor website, www.ricksinvestor.com or www.InvestorCalendar.com. The toll free participant dial-in number is 877-407-8033 (International 201-689-8033). A replay will be available until March 11, 2013 at 877-660-6853 (international 201-612-7415), using required replay conference ID 408352.

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

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

  • During the quarter service revenues increased to $12.7 million from $9.9 million while sales of alcoholic beverages rose to $10.4 million from $8.9 million.
  • The company generated cash flows from operating activities of $6.2 million during the quarter, up 19.3 percent compared with $5.2 million in the previous year. 
  • During the three months ended December 31, 2012, the company purchased 45,733 shares of common stock in the open market at prices ranging from $7.84 to $8.26, as part of a $5 million stock buyback program authorized in 2008 by the Board of Directors.  

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





RICK'S CABARET INTERNATIONAL, INC.

CONSOLIDATED STATEMENTS OF INCOME






Three Months Ended



December 31,

(in thousands, except per share data)


2012


2011



(UNAUDITED)

Revenues:







Sales of alcoholic beverages


$

10,406


$

8,916

Sales of food and merchandise



2,578



1,997

Service revenues



12,655



9,886

Other



1,502



1,220

Total revenues



27,141



22,019








Operating expenses:







Cost of goods sold



3,386



2,932

Salaries and wages



6,038



4,925

Stock-based compensation



282



8

Other general and administrative:







Taxes and permits



4,221



3,447

Charge card fees



374



308

Rent



570



703

Legal and professional



641



700

Advertising and marketing



1,109



995

Depreciation and amortization



1,320



1,120

Insurance



499



292

Utilities



489



404

Other



2,278



1,818

Total operating expenses



21,207



17,652

Income from operations



5,934



4,367








Other income (expense):







Interest income and other



8



2

Interest expense



(1,643)



(973)

Gain on change in fair value of derivative instruments



(1)



98

Income from continuing operations before income taxes



4,298



3,494

Income taxes



1,584



1,208

Income from continuing operations



2,714



2,286

Loss from discontinued operations, net of income taxes



(14)



(48)

Net income



2,700



2,238

Less: net income attributable to noncontrolling interests



(53)



(53)

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


$

2,647


$

2,185

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







Income from continuing operations


$

0.28


$

0.23

Loss from discontinued operations



(0.00)



(0.00)

Net income


$

0.28


$

0.23

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







Income from continuing operations


$

0.28


$

0.23

Loss from discontinued operations



(0.00)



(0.00)

Net income


$

0.28


$

0.23

Weighted average number of common shares outstanding:







Basic



9,575



9,685

Diluted



9,833



9,687

Net income to common stockholders


$

2,647


$

2,185

Other comprehensive income:







     Unrealized holding gain on securities available for sale



11



15

Comprehensive income to common stockholders









$

2,658


$

2,200

 

About Rick's Cabaret: Rick's Cabaret International, Inc. (NASDAQ: RICK) is home to upscale adult nightclubs serving primarily businessmen and professionals that offer live entertainment, dining and bar operations. Nightclubs in New York City, Miami, Philadelphia, Charlotte, Dallas/Ft. Worth, Houston, Minneapolis, Indianapolis and other cities as "Rick's Cabaret," "XTC," "Club Onyx" and "Tootsie's Cabaret" and other brand names. Sexual contact is not permitted at any locations. Rick's Cabaret also operates a media division, ED Publications. Rick's Cabaret common stock is traded on NASDAQ under the symbol RICK. For further information contact ir@ricks.com or visit www.ricksinvestor.com. Twitter: @rickscabaret; Facebook: http://www.facebook.com/rickscabaretintl.

Forward-looking Statements: This press release may contain forward-looking statements that involve a number of risks and uncertainties that could cause the company's actual results to differ materially from those indicated in this press release, including the risks and uncertainties associated with operating and managing an adult business, the business climates in cities where it operates, the success or lack thereof in launching and building the company's businesses, risks and uncertainties related to the operational and financial results of our Web sites, conditions relevant to real estate transactions, and numerous other factors such as laws governing the operation of adult entertainment businesses, competition and dependence on key personnel. Rick's has no obligation to update or revise the forward-looking statements to reflect the occurrence of future events or circumstances. For further information visit www.ricksinvestor.com.

SOURCE Rick's Cabaret International, Inc.

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