HOUSTON, Apr 29, 2010 (BUSINESS WIRE) -- Rick's Cabaret International, Inc. (RICK 12.39, -0.51, -3.95%) , the nation's premier upscale gentlemen's club owner, is updating investors on anticipated earnings for the quarter ending March 31st, on acquisition plans and other corporate developments.
Eric Langan, President and CEO of Rick's Cabaret, said he believes the company's earnings for the second quarter ending March 31st will exceed current analysts' consensus.
Mr. Langan said the company is presently in negotiations for the acquisition of an existing club and anticipates announcing the closing of this transaction by June 30th. In addition the expected opening of a new club near the Dallas Fort Worth Airport is on track for the fourth quarter. The company will continue to seek accretive acquisitions during the remainder of the year. During the upcoming conference call Mr. Langan will discuss the company's current cash position and availability of funds for additional acquisitions.
"Regarding our club in Las Vegas," Mr. Langan said, "we will discuss the dramatic reduction in marketing costs per customer from the previous year. While gross revenues are down, our net gross after marketing payments has increased, with the result that Vegas was profitable in the March 31st quarter and we are optimistic we will remain profitable during the June 30th quarter."
Mr. Langan said the company plans to report its earnings and holding a conference call between May 11th and May 17th and will confirm the date and time next week along with call in and webcast access details. Following the conference call, the company will hold its traditional Due Diligence Ball at Rick's Cabaret in New York City, which Mr. Langan will attend.
Rick's, named after "Rick's Cafe Americain" in the movie "Casablanca," had said in February it plans to buy rival VCG Holding Corp (VCGH.O), creating what it called the largest publicly traded strip club operator in the United States. [ID:nSGE61F0IX]
Chief Executive Eric Langan on Thursday said he is currently in talks to buy an existing club, and expects the deal to close by June 30.
Langan also said the company would continue to seek acquisitions during the rest of the year.
Rick's, which aims to build a national strip club chain in the United States eventually, will report second-quarter results between May 11 and 17, the company said.
Comments
last commentLooks like the latest bubbles for both RICK & VCGH have already burst...oh well...
Log in to vote
"Regarding our club in Las Vegas," Mr. Langan said, "we will discuss the dramatic reduction in marketing costs per customer from the previous year."
Are they talking about the kickbacks to taxi drivers?
Log in to vote
Steve229, yes.
Misterguy, If you do a YTD (year to date) comparison of RICK, AAPL, and MSFT you will see that RICK is the best performing stock. VCGH is a bad stock but I do not think all adult entertainment stocks are bad.
Log in to vote
"Misterguy, If you do a YTD (year to date) comparison of RICK, AAPL, and MSFT you will see that RICK is the best performing stock."
Huh?? AAPL is up around 60 points (or around 30%) since it's recent low, and RICK is down around 4 points (or around 26%) from it's recent high. I agree that MSFT is having some slight trouble as of late, but it's still up around 2 points (or around 7%) from it's recent low.
Log in to vote