Rick's Cabaret International, Inc. Acquires "Joy of Austin"Gentlemen's Club
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HOUSTON--(BUSINESS WIRE)--Rick's Cabaret International, Inc. (NASDAQ: RICK), the nation's leading operator of upscale gentlemen's clubs, said today it has purchased an adult nightclub located just off Interstate 35 north of Austin, Texas.
The company estimates the new location will add about $800,000 annually in earnings before income tax, depreciation and amortization (EBITDA).
Total purchase price for the club currently known as Joy of Austin was $5.2 million. Rick's Cabaret paid $2.7 million in cash, plus five year seller notes of $1.85 million at 4.75 percent interest, and assumption of $650,000 in existing mortgage debt. The transaction includes the business and real property.
Eric Langan, President and CEO of Rick's Cabaret, said: “We have long believed the Austin market is ideal for the Rick's Cabaret business model. The location we have purchased is more attractive from the standpoint of visibility and accessibility than our previous location in this market.â€
The company estimates the new location will add about $800,000 annually in earnings before income tax, depreciation and amortization (EBITDA).
Total purchase price for the club currently known as Joy of Austin was $5.2 million. Rick's Cabaret paid $2.7 million in cash, plus five year seller notes of $1.85 million at 4.75 percent interest, and assumption of $650,000 in existing mortgage debt. The transaction includes the business and real property.
Eric Langan, President and CEO of Rick's Cabaret, said: “We have long believed the Austin market is ideal for the Rick's Cabaret business model. The location we have purchased is more attractive from the standpoint of visibility and accessibility than our previous location in this market.â€
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4 comments
Joy's in Austin is just north of town, really in Round Rock. The contact level is higher there than at other Austin clubs but still nothing like the average Houston club.
In Houston, it's all about St. James for me. I'll go to Gold Cup strictly for Sonya but beyond that, St. James is where it's at.
I have been to SJ and Treasures - they are no match for the Ritz in my view. Unfortunately, like a planet running into a shitstorm of asteroid bombardment, the Ritz has been subject to some recent LE raids.
Your money will go further at the Ritz.