Rick's Cabaret International, Inc. Issues New Guidance for 2008 and Outlook for 2009
For its 2008 fiscal year the company said it expects to have sales of approximately $52 million, with after tax net income of about $7 million on which it anticipates earning 95 cents per basic share. Calendar 2008 revenues should equal about $58 million, with net income of about $9 million and projected earnings of approximately $1.25 per share.
The company's outlook for fiscal 2009 anticipates revenues of approximately $75 million, net income of about $13 million and earnings of about $1.70 per basic share.
These projections are based on closing two previously disclosed acquisitions by December 31, 2007 for 51 percent interest in an adult night club in Philadelphia and 100 percent ownership of a major club in the Southeastern U.S., plus same store sales growth of six percent. The company has reached a definitive agreement for the Philadelphia transaction and has signed a letter of intent for the club in the Southeastern U.S.
In addition the projections anticipate issuance of 225,000 new shares of common stock for the Philadelphia transaction and up to 1.2 million shares, plus the assumption of $10 million in debt in connection with financing other acquisitions. These projections assume the acquisition of one additional club in 2008 and further assume completing two acquisitions in early 2009. The 2009 outlook assumes issuing an additional 400,000 shares of common stock in connection with acquisitions. Actual financing terms may differ from these assumptions and could affect the earnings per share projections.
Eric Langan, President and CEO of Rick's Cabaret, said factors that could impact these projections include the company's ability to reach satisfactory terms in the definitive document for the acquisition of the club in the Southeastern U.S., to complete its planned acquisitions and other new acquisitions in the time assumed, to obtain satisfactory financing on acceptable terms and conditions, and to continue to grow revenues at existing clubs as well as any unforeseen events that may impact the company's ability to complete the assumed acquisitions as anticipated.
These projections update the company's previous guidance issued on February 13, 2007. The company operates on a fiscal year ending September 30. Some projections have also been stated on a calendar year basis for ease in comparison with other companies.
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