Rick’s Cabaret Reports Gains
Recession? What recession? Rick’s Cabaret International’s announcement on Tuesday of a 21.9 percent increase in net income for the quarter ending March 31 had investors and industry insiders all abuzz. Or maybe that was just the continued buzz of the Due Diligence Ball held Tuesday evening at the company’s Manhattan location… Either way, net revenue of $2.94 million (unaudited) on gross sales of $22.4 million for the first three months of 2010 is worth noting, especially these days. The operator of upscale gentlemen’s clubs reported alcohol sales of $9.0 million and service revenues of $10.2 million, up from $7.0 and $8.8 from the same period in 2009. Rick’s Cabaret International operates clubs under four concept names — Rick’s Cabaret, XTC, Club Onyx and Tootsie’s Cabaret — in a dozen markets.
Nightclub sales in April hit $6.65 million. While the company overall is performing well, the Vegas location is proving a bit of a drag on its financials. Financial performance for the Vegas location, which definitely felt the impact of the recession last year, was bolstered by a reduction in the club’s taxi marketing spend. President and CEO Eric Langan cited a decrease from $1.4 million in taxi-related marketing to just more than $91,000 in April. That said, Langan stated that if Vegas was removed from the equation, Rick’s systemwide same-club sales trend for the month of April would be off just 1.4 percent, compared to the 18.7 percent decline when Vegas is factored into the mix. Ouch!