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Rick's Cabaret International Inc. reports $95.2 Million Revenues for 2012, with

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HOUSTON – (December 14, 2012) – Rick's Cabaret International, Inc. (NASDAQ:RICK), the nation's premier publicly traded group of gentlemen's clubs, reported revenues of $95.2 million for its fiscal year ended September 30, 2012, a 14 percent increase over the $83.5 million in 2011.

“In the just concluded year we completed a major acquisition and resolved several lawsuits. We are now fully focused on achieving our goal of 20-30 percent annual growth,” said Eric Langan, President and CEO of Rick's Cabaret International, Inc., which now operates 35 clubs nationwide.

“We have sharpened this growth strategy with a number of new projects, including the Bombshells “breastaurant” in Dallas and the Vee Lounge in Ft. Worth, both which will open in January 2013, as well Ricky Bobby's Sports Saloon slated to open in April. Before March we expect to open the Los Angeles club that we are doing as a joint venture with another multi-club operator, our second New York City location will open before year end, and several clubs are currently in our acquisition pipeline." he added

The company will hold a conference call to discuss today's results at 4:30 pm ET. Participant dial in number is 877-407-8033 (international, 201-689-8033) or online at www.ricksinvestor.com. Replays are available at 877-660-6853.

Some highlights from the company's Form 10K filed today with the Securities & Exchange Commission:

Net income per non-GAAP accounting was $10.5 million compared with GAAP income of $7.6 million and non-GAAP fully diluted income per share was $1.08 compared with GAAP EPS of 78 cents. The non-GAAP figures exclude amortization of intangibles, sale of assets and debt settlement, change in value of derivatives, stock-based compensation, litigation and one-time legal settlements, income tax expense, acquisitions costs, loss from discontinued operations net of income tax, and add-back of non-GAAP provision for income taxes (see explanation of non-GAAP financial measures below).


The growth in revenues was achieved through the contribution of $4.3 million by nightclubs acquired in 2012, plus $4.0 million from clubs purchased in 2011, and a 4.2 percent increase in revenues at existing clubs, especially the flagship midtown New York City Rick's Cabaret.


Cash flow from operations was $18.4 million.


Expenses for the year that kept earnings lower than forecast included legal and professional expenses of $5.9 million, compared with $2.3 million in 2011. The 2012 costs included the payment of about $2.2 million to settle three law suits.


Salaries and wages remained the same at 21.9 percent of total expenses, or $20.9 million in 2012 compared with $18.3 million the prior year.


Interest expense was $4.0 million, about the same as the $3.9 million for 2011 as the company added more debt from acquisitions while paying off existing debt and amortizing loans. As of September 30, 2012, the balance of long-term debt was $63.5 million compared to $35.6 million a year earlier. The increase is principally attributable to adding $30 million in debt with the 2012 acquisitions.


For the company's fourth quarter ended Sept. 30th, revenues were $23.9 million compared with $21.5 million in 2011; net income was $1.5 million compared with $2.0 million last year; earnings per share were 15 cents compared with 20 cents in the prior year.

About Rick's Cabaret: Rick's Cabaret International, Inc. (NASDAQ: RICK) is home to upscale adult nightclubs serving primarily businessmen and professionals that offer live entertainment, dining and bar operations. Nightclubs in New York City, Miami, Philadelphia, Charlotte, Dallas/Ft. Worth, Houston, Minneapolis, Indianapolis and other cities as "Rick's Cabaret," "XTC," “Club Onyx” and “Tootsie's Cabaret” and other brand names. Sexual contact is not permitted at any locations. Rick's Cabaret also operates a media division, ED Publications. Rick's Cabaret common stock is traded on NASDAQ under the symbol RICK. For further information contact [email protected] or visit www.ricksinvestor.com. Facebook: http://www.facebook.com/rickscabaretintl.

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