WASHINGTON (dpa-AFX) - Rick's Cabaret International Inc. (RICK) reported that its third-quarter net income attributable to the company was $1.8 million compared with $888,000 in the same period in 2011, with earnings of $0.19 per share in the latest-quarter this year compared with $0.09 per share last year.
Total revenues for the quarter were $23.9 million, an increase of 15 percent compared with the $20.8 million reported for the period in 2011.
The increase in revenues was driven by strong results from Tootsie's Cabaret in Miami; Club Onyx locations in Philadelphia and Charlotte; a newly acquired club in Dallas; and strong sales increases at the Dallas-Ft. Worth Airport location, formerly a BYOB club that is now selling liquor. Total same-location-same-period club sales were up five percent to $21.3 million compared with $20.3 million last year.
In a separate press lease, Rick's Cabaret International said today its new subsidiary Jaguars Acquisitions Inc. or JAI and certain other subsidiaries will acquire nine operating locations and two other licensed locations under development in a single transaction. Ten of the clubs are in Texas and the eleventh is in Phoenix, AZ.
The subsidiaries will pay a total of $26 million for the clubs and $10 million for associated real estate, with $4.35 million to be paid in cash upon closing of the transaction and the remainder through seller notes at 9.5 percent interest payable over 12 years. The seller notes may be prepaid after five years.
The locations being purchased are the Jaguars Clubs in Lubbock, Odessa, El Paso, Harlingen, Tye, Edinburg, Beaumont and Longview in Texas plus the Jaguars Club in Phoenix. The clubs to be developed are in Lubbock and Odessa and are expected to open as Rick's Cabaret locations within a few months of closing the transaction, the company said.
The purchase agreement provides that in the event the State of Texas seeks to enforce or attempts to collect obligations or liabilities due from Jaguars Clubs under the Texas Patron Tax or 'Pole Tax,' the promissory note for the clubs will be reduced according to a formula that reduces the purchase price by as much as $6 million.
Closing of the transaction is expected to occur within five days of the issuance of all necessary operating permits and other documents customary for acquisitions of this type.
Copyright RTT News/dpa-AFX
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