Rick’s Cabaret Reports Increased Earnings

NEW YORK — Gentlemen's club chain Rick’s Cabaret International Inc. has reported $7.66 million net income for the year ended Sept. 30, a 151 percent increase over the $3.05 million reported the previous year.

Consolidated total revenue for the publicly traded company was $59.93 million, compared to $32.01 million for the previous year, an increase of 87.2 percent.

The company had earnings per fully diluted share of 91 cents for the year, compared with 50 cents per share in 2007.

In a statement, the company said the revenue increase was primarily due to the performance of five new clubs acquired during the fiscal year and continued strong growth from existing clubs, especially Rick’s Cabaret-New York City. Sales from nightclub operations for same-location, same-period increased by a reported 14.6 percent.

The company said the cost of goods sold for the year ended Sept. 30 was 11.6 percent of total revenue compared to 12.6 percent in the previous year, as the company took advantage of volume discounts, improved inventory management and better margins from liquor and food sales.

Long-term debt was $33.56 million at the end of the fiscal year, compared to $14.39 million a year earlier.

At the end of the 2008 fiscal year the company had cash and cash equivalents of $5.60 million compared to $2.99 million at Sept. 30, 2007.

The company said it believes its nightclub operations can continue to grow organically and through careful entry into markets and demographic segments with high growth potential.

During fiscal 2008, Rick's acquired five nightclub operations, including the former Scores Las Vegas, and the remaining 49 percent of its Austin location. The company also acquired a media division for approximately $1 million, which will enable the company to create new marketing synergies with industry product suppliers and new national advertising opportunities. It also provides additional diversification of revenue and income streams while remaining within the Rick’s Cabaret core competency.

Rick’s Cabaret International Inc. owns, operates or licenses adult nightclubs in New York City, New Orleans, Charlotte, Dallas, Houston, Philadelphia, Minneapolis and other cities under the names Rick's Cabaret, XTC and Club Onyx. Rick’s Cabaret common stock is traded on Nasdaq under the symbol RICK.

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