Rick's Cabaret International, Inc. Reports May Adult Nightclub Sales of $6.7 Mil

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samsung1
Ohio
HOUSTON, Jun 10, 2010 (BUSINESS WIRE) -- Rick's Cabaret International, Inc. (RICK 8.75, +0.63, +7.76%) , the nation's premier group of upscale gentlemen's clubs, reported sales of $6.7 million for its adult nightclubs in May.

The overall gross revenue decline from the $7.2 million reported in May 2009 was chiefly due to lower sales at the company's Rick's Cabaret in Las Vegas, where sales dropped from nearly $1.6 million in 2009 to about $635,000 because the company stopped paying extraordinarily high taxi cab-related marketing costs.

"The Las Vegas sales were lower, but the net impact on the company is minimal because we achieved our revenues with much lower marketing cost," said Eric Langan, President and CEO of Rick's Cabaret. "We are monitoring the taxi cab marketing costs closely."

Among its clubs showing year-over-year sales increases in May, the company cited strong performances from Rick's Cabaret in New York City, the XTC Cabaret locations in Dallas, San Antonio and Austin, and from Club Onyx in Dallas.

If Las Vegas is removed from the calculation, overall same club sales for May compared with 2009 showed a 3.3 percent decline.

http://www.marketwatch.com/story/ricks-c…

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avatar for CTQWERTY
CTQWERTY
15 years ago
Sam, I've been to the Vegas Rick's (back in January.) It was slooow there then. For them to be blaming a one million dollar shortfall on not paying taxi kickbacks is astounding!

While many things are not great now, comparisons to '09 numbers for most of Wall St. are pretty easy beats.

Worse, how could someone in the nightclub biz, with one of the fanciest spots in Vegas, put out something with "If Las Vegas is removed"?!? Arguably, Vegas should be the big producer for the company. That said, I hope their CEO unloaded some stock a couple of months back when the price was $15+. It's almost 50% lower now...
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samsung1
15 years ago
CT, I wonder if Rick's would be doing better off if they built a new club (or bought an existing club) in your favorite city of Detroit.
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steve229
15 years ago
Sam - OT, but your girl Kim seems to have a real oral fixation.
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CTQWERTY
15 years ago
Sam, Detroit has to be oversaturated at this point. I know Hustler Club started out with private rooms available for rent when they opened. They wanted $20 for I don't know how long. Since then I believe some reviewer stated they have abolished the $20 fee, which brings them more into line with the other clubs. Hustler's talent level was sagging back to the other clubs' level as well after the newness buzz wore off.

Also, if their flagship location (Vegas) is down 60%+, it's unlikely they'll be expanding again anytime soon. And that 60% drop is incredible considering the economy was bad a year ago to begin with. These days Vegas Rick's must be a morgue...
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samsung1
15 years ago
Yeah Steve it is like that song that goes "you look so much cuter with something in your mouth"

CT, There was a Hustler club in Cleveland that got shut down because of new zoning. It has recently reopened in a new location. I look forward to reading some reviews on it. The same people who manage one of my favorite clubs for columbus standards is kahoots and they are now managing the new hustler in cleveland. Kahoots is the one club that is fighting against the city in court about the pasties rule. The other clubs just sit back and let themselves get pushed around by the city.
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beeoch
15 years ago
I saw an article about 3 months ago, where Ricks was going to buy the PT chain. Does anyone know if that deal went through, is pending, or is dead?
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wallanon
15 years ago
It fell through at the end of March. Copy/paste...

In February 2010 the two clubs agreed in principle to merge, with Rick's Cabaret acquiring VCG Holding. The estimated purchase price, according to the statement of intent, was for the acquisition using RICK stock to be at a value of US$2.20 to US$3.80 per share[14]. The US$45 Million deal fell through after the statement of intent expired on March 31, 2010 with Rick's Cabaret unable to enter into a definitive merger agreement to acquire all of VCG’s outstanding stock[15].
avatar for CTQWERTY
CTQWERTY
15 years ago
"like that song that goes "you look so much cuter with something in your mouth""

I've heard that song at least 1,000 times...

Catching up is the Ke$ha song "I brush my teeth with a bottle of Jack"...
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