Total Club & Restaurant Sales Hit Record $33.1 Million - Up 18.3% Year over Year - Same Store Sales Up 5.1% Year over Year
Rick's Cabaret International, Inc. (NasdaqGM: RICK) today announced total sales at adult clubs and sports bar/restaurants for the third fiscal quarter ended June 30, 2014. The figures do not include the Company's internet or media divisions. The Company also announced legal settlements reached during 3Q14. Rick's expects to announce 3Q14 results on August 11, 2014.
In May, Rick's estimated $2-$3 million in higher pre-opening and legal costs across 3Q14 and 4Q14, reflecting in part the Company's strategy to settle a number of lawsuits. Today, Rick's is announcing that it has settled several of these lawsuits, as well as other small claims. This will result in approximately $3.2 million in one-time legal charges in 3Q14. The settlements include:
Eric Langan, President and CEO, commented, "We are very pleased with our overall sales performance as well as our ability to settle these lawsuits and claims generally in line with our plans.
"In accordance with our guidance, club and restaurant sales continued to grow in 3Q14 instead of falling off from the seasonally large 2Q14. We continue to be excited about the potential for our new Vivid Cabaret, which was No. 3 in sales for the third quarter, and its positive effect on our flagship Rick's Cabaret New York, where sales increased more than 6% year over year. Men's Mag Daily (http://mensmagdaily.com/) recently named Rick's Cabaret in Manhattan as the 'Best Gentlemen's Club in New York.' Meanwhile, Club Onyx units are starting to improve. And we continue to see great potential for our restaurants, which represented close to 8% of 3Q14 total sales.
"Looking ahead, 4Q14 should benefit from a full quarter of the new Bombshells in Austin, and, assuming schedules stay on track, the opening sometime during the quarter of a Rick's Cabaret in Odessa, the capital of fracking in Texas, and two new Bombshells in the Houston area."
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 "Pole Position."
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