Rick's Cabaret International, Inc. (NASDAQ: RICK), the nation's leading group of upscale gentlemen's clubs, today reported net income of $2.1 million for the period ending December 31, 2010, compared with $783,000 in the same period last year, a 165 percent increase. Net income per fully diluted share for the quarter was 21 cents, compared with 8 cents in the previous year. The company had revenues of $20.9 million in its first quarter, compared with $20 million for the same period last year.
The improvement in net income was due primarily to a combination of the higher revenues and lower operating expenses, which dropped to $16.7 million compared with $17.6 million for the same quarter last year.
The increase in total revenue was attributed primarily to the addition of $1.4 million in sales from two new clubs in Fort Worth and one in Austin.
?We had a very good quarter and we are happy with our start for the 2011 fiscal year,? said Eric Langan, President and CEO of Rick's Cabaret, which now includes 22 clubs nationwide. ?Our major clubs in New York City and Miami continue to thrive. We opened a new club just outside the Dallas/Fort Worth Airport in January, and we had a total of seven clubs in the DFW Metroplex to serve Super Bowl fans. We expect to remain on track to make at least one acquisition per quarter for the balance of this year.?
Other highlights of the first quarter:
There was a significant decrease in advertising and marketing expenses, principally through the reduction of marketing costs in Las Vegas during 2010 and reduced radio advertising in the Dallas/Fort Worth market. Rick's Cabaret in Las Vegas lost approximately $370,000 for the quarter ending December 31, 2010, on revenues of $1.1 million, compared with a loss for the quarter in the previous year of $500,000 on revenues of $3.1 million. The company's Media Division lost approximately $76,000 before income taxes for the quarter, compared with approximately $65,000 in the 2009 quarter, but as the economy improves the company believes the division will become profitable through more cost control and increased revenues. During the three months ended December 31, 2010, the company purchased 90,800 shares of common stock in the open market at prices ranging from $7.03 to $7.43 which compares with the purchase of 48,200 shares in the previous years at prices ranging from $3.54 to $5.95. The company had cash on hand at the end of the quarter of $18.7 million compared with $9.5 million in the previous year, having generated $2.8 million from operating activities vs. $3.2 million last year. At the end of the quarter the company had working capital of $5.1 million compared to $377,552 last year, a result of increased profit and also the net cash still available from the convertible debt, which is principally long-term in nature.
"Rick's Cabaret in Las Vegas lost approximately $370,000 for the quarter ending December 31, 2010, on revenues of $1.1 million, compared with a loss for the quarter in the previous year of $500,000 on revenues of $3.1 million."
Vegas outpost continues death spiral...