Attached files
Exhibit 99.1
 |
FOR IMMEDIATE
RELEASE
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RICK’S
CABARET INTERNATIONAL, INC. ACQUIRES “JOY OF AUSTIN” GENTLEMEN’S
CLUB
HOUSTON – (December 21, 2009)
– Rick’s
Cabaret International, Inc. (NASDAQ: RICK), the nation’s
leading operator of upscale gentlemen’s clubs, said today it has purchased an
adult nightclub located off Interstate 35 just north of Austin,
Texas.
The
company estimates the new location will add about $800,000 annually in earnings
before income tax, depreciation and amortization (EBITDA).
Total
purchase price for the club currently known as Joy of Austin was $5.2
million. Rick’s Cabaret paid $2.7 million in cash, plus five year seller notes
of $1.85 million at 4.75 percent interest, and assumption of $650,000 in
existing mortgage debt. The transaction includes the business and real
property.
Eric Langan, President and CEO
of Rick’s Cabaret, said: “We have long believed the Austin market is
ideal for the Rick’s Cabaret business model. The location we have purchased is
more attractive from the standpoint of visibility and accessibility than our
previous location in this market.”
About Rick’s Cabaret: Rick’s
Cabaret International, Inc. (NASDAQ: RICK) is home to upscale adult nightclubs
serving primarily businessmen and professionals that offer live entertainment,
dining and bar operations. Nightclubs in New York City, Miami, Philadelphia, New
Orleans, Charlotte, Dallas, Houston, Minneapolis and other cities operate under
the names "Rick's Cabaret," "XTC," “Club Onyx” and “Tootsie’s Cabaret”. Sexual
contact is not permitted at these locations. Rick’s Cabaret also operates a
media division, ED Publications, and owns the adult Internet membership Website
couplestouch.com as
well as a network of online adult auction sites under the flagship URL naughtybids.com.
Rick’s Cabaret common stock is traded on NASDAQ under the symbol RICK. For
further information contact ir@ricks.com.
Forward-looking Statements:
This document contains forward-looking statements that involve a number of risks
and uncertainties that could cause the company’s actual results to differ
materially from those indicated in this document, including the risks and
uncertainties associated with operating and managing an adult business, the
business climates in cities where it operates, the success or lack thereof in
launching and building the company’s businesses, risks and uncertainties related
to the operational and financial results of our Web sites, conditions relevant
to real estate transactions, and numerous other factors such as laws governing
the operation of adult entertainment businesses, competition and dependence on
key personnel. Rick's has no obligation to update or revise the forward-looking
statements to reflect the occurrence of future events or circumstances. For
further information visit www.ricks.com http://www.ricks.com/.
Contact:
Allan Priaulx, 212-338-0050, allan@ricks.com