HOUSTON, TX – Publicly traded strip club chain Rick’s Cabaret International, Inc. (NASDAQ: RICK) has reported revenues of over $24 million for the year ending September 30th, 2006. The reported revenue represents a record for the company, and a 65-percent increase over the previous year’s total of $14,824,407, according to a press release issued by the company this week.Rick’s reported net income from operations of $1,752,714 for fiscal 2006, a significant gain over last year’s net loss of $215,148. According to the press release, the company earned $0.38 per basic share for 2006, compared to a loss of five cents per basic share the previous year.
“The excellent performance of Rick’s Cabaret – New York City gave us a strong revenue boost for the fiscal year and this club continues to grow steadily each month,” stated Rick’s President and CEO, Eric Langan. “Our growth program is on track and we are looking forward to another strong year in 2007 from our existing clubs and the four acquisitions we have made recently. We will also continue to look at additional acquisitions that fit our business model and can be quickly accretive.”
Rick’s strong net income showing for 2006 came despite a couple of sizeable losses, including “one-time events totaling $320,000 for settlement of a lawsuit, loss on a real estate transaction and goodwill impairment, plus a loss of $330,000 in connection with newly acquired clubs,” according to the press release.
The company attributes its 65.18-percent increase in revenues to stronger performance at both new and previously existing club locations, including the Rick’s Cabaret – New York, which contributed revenue for only one month of fiscal 2005, as opposed to a full 12 months in 2006.
While not nearly as large as club revenues, Rick’s also reported solid growth in its internet revenues, with 2006 internet revenue totaling $801,395 compared to $787,617 in 2005. Net income from Internet operations increased as well, to $138,351 from $114,501 in 2005.
In its press release, the company states that it expects to “continue to grow our Internet profit centers by focusing on high margin activities.”
The company’s full 10KSB filing, as well as other details about Rick’s operations, is available on the Rick’s Cabaret website http://www.ricks.com
