January 14, 2005 12:33am
Rick's Sets January 18th for Close on NYC Club Acquisition
Source: Rick's Cabaret International, Inc.
by: Company Press Release
(HOUSTON,TX) -- Rick's Cabaret International [NASDAQ: Rick], expects to close January 18, 2005 on the acquisition of a nightclub in Midtown Manhattan that will become the flagship establishment of the company that now has gentlemen's clubs in Texas, Louisiana and Minnesota. The parties have agreed on an extension to January 25th, but the company presently expects to close on January 18th.
Rick's Cabaret is acquiring the former Paradise Club at 50 West 33rd Street, near Madison Square Garden, Penn Station and the Empire State Building. The total purchase price is $7.6 million, with an additional $1.4 million set aside for renovations to create a posh, upscale environment. The club is expected to open formally during the summer of 2005.
Rick's Cabaret announced full year earnings last week of 21 cents per share versus 12 cents in the previous year with net income of $775,253 compared with $438,294, on 2005 revenues of just under $16 million.
About Rick's Cabaret Rick's Cabaret International, Inc. (Ricks.com) owns and operates upscale adult nightclubs serving primarily businessmen and professionals that offer live adult entertainment, restaurant and bar operations. The company owns and operates seven adult nightclubs under the name "Rick's Cabaret" and "XTC" in Houston, Austin and San Antonio, Texas, and Minneapolis, Minnesota, licenses Rick's Cabaret in New Orleans, and owns a sports bar called the "Hummers" in Houston. No sexual contact is permitted at any of these locations. Rick's Cabaret also owns an adult Internet membership Web site, CouplesTouch.com, and a network of nine online auction sites under the flagship URL NaughtyBids.com that provide a sales platform for adult products and services in an auction format and generate revenues through transactional service fees. Rick's Cabaret common stock is traded on the NASDAQ Small Cap market under the symbol Rick. For further information contact IR@Ricks.com.
This press release may contain forward-looking information within the meaning of Section 21E of the Securities Exchange Act of 1934 that involves significant risks and uncertainties, and is subject to the safe harbors created by this section. Important factors that could cause actual results for Rick's Cabaret to differ materially from those indicated in this press release include the risks and uncertainties as to the future operational and financial results of our Web sites, conditions relevant to real estate transactions, the future operational performance of our partners, the laws governing the operation of adult entertainment businesses, competitive and economic factors, dependence on key personnel and the ability to manage operations. Rick's Cabaret has no obligation to update or revise the forward-looking statements to reflect the occurrence of future events or circumstances. Please refer to the documents Rick's Cabaret files from time to time with the Securities and Exchange Commission, in particular the most recent quarterly reports on Form 10-QSB and annual report on Form 10-KSB.
Contact for further information:
Allan Priaulx, 212-338-0050, IR@Ricks.com