Rick's Cabaret International, Inc. Increases Net Income Guidance For Fiscal 2006
HOUSTON-(May 17, 2006)- Rick's Cabaret International, Inc. [NASDAQ:RICK], said today it should earn $2.2 million in net income for the fiscal year ending September 30, 2006.
"We continue to believe that our gross revenues for fiscal 2006 will come in at the $23-$24 million range but we are improving our forecast for net income by about 10 percent," said Eric Langan, President and CEO of Rick's Cabaret.
In November 2005 the company had issued guidance for the same gross revenue range but had projected net income would be about $2 million. Mr. Langan said that the higher guidance was motivated by the club's performance in the second quarter, particularly the NBA All-Star Week in Houston in the second quarter had a one-time positive impact on earnings.
On Monday May 15th Rick's Cabaret reported net income of $706,070, or 14 cents a share for its second quarter ended March 31st, up from $62,078, or two cents a share, in the same period last year, on revenue of $6.1 million, up from $3.4 million in the same period last year.
Rick's Cabaret International, Inc. (NASDAQ: RICK, www.ricks.com) operates upscale adult nightclubs serving primarily businessmen and professionals that offer live adult entertainment, restaurant and bar operations. The company owns, operates or licenses adult nightclubs in New York City, New Orleans, Houston, Minneapolis, Charlotte and other cities under the names "Rick's Cabaret," "XTC," "Club Onyx" and "Hummers." No sexual contact is permitted at any of these locations. Rick's Cabaret also owns the adult Internet membership Web site, www.couplestouch.com, and a network of nine online auction sites for adult products under the flagship URL www.naughtybids.com. Rick's Cabaret common stock is traded on the NASDAQ SmallCap market under the symbol RICK. For further information contact ir@ricks.com.
This document contains 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 document, including the risks and uncertainties associated with operating and managing an adult business, the business climates in New York City and elsewhere, the success or lack thereof in launching and building the company's businesses in New York City and elsewhere, 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 go to www.ricks.com.