Rick's Cabaret International, Inc. (NasdaqGM: RICK) announced total sales at adult clubs and sports bar/restaurants for the second fiscal quarter ended March 31, 2014. The figures do not include the Company's internet or media divisions.
- Total sales reached a record $32.6 million, up 15.1% year over year. There were 43 units in 2Q14 versus 36 in the year ago quarter. Sales were positively impacted by the performance of adult clubs acquired and sports bar/restaurants launched within the past year, as well as sales growth at most existing adult clubs.
- Same store sales were $27.0 million, down 1.1% year over year. The Company's major brands showed year over year improvement despite severe winter weather, particularly in Texas, with the exception of the four Club Onyx units. Excluding these units, same store sales would have been up 3.8%.
- The quarter also benefited from the late January opening of a new adult club in midtown Manhattan – Vivid Cabaret New York – and a new Bombshells sports bar/restaurant in Webster, TX. This year's pro-football championship provided an added boost to the Company's two New York City clubs.
- Rick's expects to announce 2Q14 results on May 12, 2014.
"Based on our second quarter club and restaurant sales, we remain on course to reach our fiscal 2014 revenue target of $130 million and our previous EPS guidance as well. Instead of falling off from the seasonally large second quarter, club and restaurant sales should benefit from full quarters of Vivid New York, and, assuming schedules stay on track, the openings in Texas of a Rick's Cabaret in Odessa, and of Bombshells sports bar/restaurants in Austin and Houston. We also anticipate a contribution from the recently announced Club O Chicago acquisition, which is expected to close on or before May 31, 2014."
Ed Anakar, President of RCI Management Services, a subsidiary of Rick's Cabaret International, commented, "Excluding the Onyx units, sales at clubs open more than a year continue to reflect the initial benefits of our post-recession strategy of increasing patronage from bigger ticket, higher margin customers. Onyx units were especially impacted by bad weather as well as difficult year over year comparisons. Nonetheless, we are already making changes at these clubs and expect to see improvements."
About Rick's Cabaret
With 43 units, Rick's Cabaret International, Inc. (NasdaqGM: RICK) is the leading hospitality company operating adult gentlemen's clubs and sports bar/restaurants in the US. Adult clubs in New York City, Los Angeles, Miami, Philadelphia, Charlotte, Dallas/Ft. Worth, Houston, Minneapolis, Indianapolis and other cities operate under brand names such as "Rick's Cabaret," "XTC," "Club Onyx," "Vivid Cabaret," "Jaguars" and "Tootsie's Cabaret." Sports bar/restaurants, which also feature live entertainment, operate under the brand names "Bombshells" and "Ricky Bobby Sports Saloon."
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