May 16, 2000 05:30am
Rick's Cabaret International Announces Second Quarter Results
Source: Rick's Cabaret Int.
by: Company Press Release
(HOUSTON, TX) -- Rick's Cabaret International Inc. (Nasdaq:RICK - news), the Houston-based adult Internet content provider and entertainment chain, announced today the filing of its Quarterly Report on Form 10-QSB for the quarter ended March 31, 2000. The Company had consolidated total revenues of $2,841,515, a decrease of 8% or $254,968 below second quarter 1999 revenues of $3,096,483.
The Company experienced a net loss of $113,278 for second quarter 2000 compared to a net profit of $409,753 for second quarter 1999. The decrease in total revenues was due to the sale of the New Orleans subsidiary and the initial cost of entering the adult internet market, including setup and development of DancerDorm.com. ``We invested heavily in the adult Internet market during the last year'' said Eric Langan, CEO and president of the Company. Langan continued, ``We anticipate that our internet segment will reach profitability by the end of this fiscal year.
Income from club operations during the six months ended March 31, 2000, before corporate expenses of $252,326 was $493,466. Losses from internet operations for the six months ended March 31, 2000, were $270,392 while total losses for the Company were $29,252. Langan added, ``Club revenues were strong during the last six months and we hope to carry that momentum into the summer.''
Rick's Cabaret International Inc. opened its first Rick's Cabaret in Houston in 1983 and went public with its IPO in 1995, making it the world's first publicly traded topless entertainment business. The Company currently operates premiere adult entertainment Internet web sites that were launched in October 1999 as well as three ``Rick's Cabaret'' locations, two of which are in Houston and one of which is in Minneapolis. The Company also owns XTC Cabaret in San Antonio and owns XTC Cabaret in Austin, Texas, through its 93% owned subsidiary, Taurus Entertainment Companies Inc. The Company currently owns all the real estate properties where its clubs are located as well as the property where its Internet production studio is located.
Other companies in the adult entertainment industry include Playboy Enterprises Inc., New Frontier Media Inc. and Private Media Group Inc.
This press release contains forward-looking statements that involve a number of risks and uncertainties. Important factors that could cause Rick's actual results to differ materially from those indicated in this press release include the risks and uncertainties as to whether the definitive documentation will ultimately be executed, the future operational and financial results of the newly acquired web site, the future operational strength of Voice Media, the laws governing the operation of adult entertainment businesses, competitive factors, dependence on key personnel, and the ability to manage operations. Rick's has no obligation to update or revise the forward-looking statements to reflect the occurrence of future events or circumstances.