August 15, 2002 07:57am
Rick's Cabaret Reports 3rd Quarter Income
Source: Rick's Cabaret International, Inc.
by: Company Press Release
(HOUSTON, TX) -- Rick's Cabaret International, Inc. today reported net income of $223,206 for the third quarter ended June 30, 2002 on revenues of $3,952,069.
Revenue and income in the core nightclub operations rose during the period while the company continued a planned reduction in Internet activities. For the same period last year, the company reported net income of $602,487 on revenues of $5,118,006.
For the nine months ended June 30, 2002 Rick's Cabaret had consolidated total revenues of $11,916,676 compared to $15,567,690 in the previous year, with net income of $756,132 compared with $1,011,620.
"Our core club business remains strong," according to Eric S. Langan, President of Rick's Cabaret. "We are continuing the program we began this fiscal year of migrating from Internet activities that yielded high revenues but produced low profit margins to an auction model that generates lower overall revenues but higher margins."
Revenues from Rick's Cabaret club operations rose during the quarter to $3,378,422 from $3,310,388, with net income rising to $412,572 from $390,306. For the nine months clubs revenue was $10,194,184 compared with $9,623,656 and net income was $1,074,452 compared with $1,015,681.
Cash flows decreased slightly during the period to $872,951 from $898,744, due to the decrease in net income.
(Operating Results Redacted)
About Rick's Cabaret:
Rick's Cabaret International, Inc. (Ricks.com) is organized into two business lines: 1) Nightclubs and entertainment, comprising four Rick's Cabaret clubs in Houston and Minneapolis, two XTC Clubs in San Antonio and Austin, and the Encounters club in Houston catering to couples in the swingers' lifestyle and, 2) Internet activities, which encompass adult entertainment sites such as the XXXPassword.com membership portal that provides access to third-party adult-oriented Websites, and seven auction sites such as NaughtyBids.com that operate on a single proprietary technology platform and earn revenue by providing a marketplace for adult paraphernalia and through Webmaster referral fees.
This press release contains forward-looking statements that involve a number of risks and uncertainties. Important factors that could cause Rick's actual results to differ materially from those indicated in this press release include the risks and uncertainties as to the future operational and financial results of our Web sites, the future operational performance of our partners, the laws governing the operation of adult entertainment businesses, competitive factors, dependence on key personnel and the ability to manage operations. Rick's has no obligation to update or revise the forward-looking statements to reflect the occurrence of future events or circumstances.
Rick's Cabaret International
Allan Priaulx, 212/338-0050