Rick's Cabaret International, Inc. Reports May Adult Nightclub Sales of $6.7 Mil
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…
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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8 comments
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...
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...
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.
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$45 Million deal fell through after the statement of intent expired on March 31, 2010 with Rick's Cabaret unable to enter into a definitive merger agreement to acquire all of VCG’s outstanding stock[15].
I've heard that song at least 1,000 times...
Catching up is the Ke$ha song "I brush my teeth with a bottle of Jack"...