HOUSTON—Rick’s Cabaret International, Inc., one of the nation’s premier upscale gentlemen’s club owners, is updating investors on anticipated earnings for the quarter ending March 3, on acquisition plans and other corporate developments.
Eric Langan, president and CEO of Rick’s Cabaret, said he believes the company’s earnings for the second quarter ending March 31 will exceed current analysts’ consensus.
Langan said the company is presently in negotiations for the acquisition of an existing club and anticipates announcing the closing of this transaction by June 30. In addition the expected opening of a new club near the Dallas Fort Worth Airport is on track for the fourth quarter. The company will continue to seek accretive acquisitions during the remainder of the year. During the upcoming conference call Langan will discuss the company’s current cash position and availability of funds for additional acquisitions.
“Regarding our club in Las Vegas,” Langan said, “we will discuss the dramatic reduction in marketing costs per customer from the previous year. While gross revenues are down, our net gross after marketing payments has increased, with the result that Vegas was profitable in the March 31st quarter and we are optimistic we will remain profitable during the June 30th quarter.”
Langan said the company plans to report its earnings and holding a conference call between May 11 and May 17 and will confirm the date and time next week along with call in and webcast access details. Following the conference call, the company will hold its traditional Due Diligence Ball at Rick’s Cabaret in New York City, which Langan will attend.
