Rick's Cabaret International, Inc. Reports 39 Cents Per Share Non-GAAP Earnings; GAAP Earnings Of 29 Cents

    Rick's Cabaret International, Inc. Reports 39 Cents Per Share Non-GAAP
                     Earnings; GAAP Earnings Of 29 Cents

PR Newswire

HOUSTON, May 9, 2013

HOUSTON, May 9, 2013 /PRNewswire/ -- Rick's Cabaret International, Inc.
(NasdaqGM: RICK) today reported financial results for the second quarter,
which ended March 31, 2013. Revenues were $28.7 million, up 13% from the $25.4
million recorded in the second quarter of 2012. Non-GAAP* net income was $3.8
million or 39 cents per share fully diluted, with GAAP net income of $2.7
million or 29 cents per share fully diluted.

(Logo: http://photos.prnewswire.com/prnh/20110418/MM85342LOGO)

Rick's Cabaret will host a conference call to discuss the results at 4:30 p.m.
EDT on May 9^th. Participant dial-in is 877-407-0778 (International):
201-689-8565. The live webcast can be accessed at the company's investor
Relations website, www.ricksinvestor.com along with the company's earnings
press release, financial tables and slide presentation. Following the call, a
replay is available until June 9^th at 877-660-6853 (International):
201-612-7415 with Conference ID 413980.

"Our growth continues as planned, with outstanding performance from our
Jaguars acquisition, a terrific rollout of our new restaurant/nightclub
concept in Dallas, and excellent progress on the five additional locations
currently in the works," said Eric Langan, president and CEO of Rick's
Cabaret.

The increase in revenues was primarily attributable to clubs acquired during
the last year, which contributed $3.7 million. Total revenues for
same-location-same-period of club operations decreased slightly to $24.1
million from $25.0 million for the same period, principally due to the Super
Bowl not being in a city where we have a club and also due to certain other
sporting events impacted by player strikes and lower attendance.

Second Quarter 2013 Financial Summary
(In millions, except per share amounts)
                                  Q2 '13 Q2 '12
Revenue                           $ 28.7 $ 25.4
Income from Operations
            Non-GAAP*            7.5     7.3
            GAAP                 6.2     4.5
Net Income
            Non-GAAP*            3.8     4.0
            GAAP                 2.7     2.1
Fully Diluted Earnings Per Share
            Non-GAAP             .39     .42
            GAAP                 .29     .22



RICK'S CABARET INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share  FOR THE THREE MONTHS    FOR THE SIX MONTHS
data)                            ENDED MARCH 31,         ENDED MARCH 31,
                                 2013        2012        2013        2012
                                 (UNAUDITED)             (UNAUDITED)
Revenues:
Sales of alcoholic beverages     $ 11,044    $ 10,406    $ 21,449    $ 19,322
Sales of food and merchandise      2,878       2,335       5,456       4,333
Service revenues                   13,052      11,281      25,707      21,167
Other                              1,754       1,392       3,257       2,610
Total revenues                     28,728      25,414      55,869      47,432
Operating expenses:
Cost of goods sold                 3,495       3,390       6,881       6,322
Salaries and wages                 6,149       5,204       12,187      10,130
Stock compensation                 281         12          563         21
Other general and
administrative:
Taxes and permits                  4,573       3,953       8,794       7,404
Charge card fees                   342         373         716         681
Rent                               783         721         1,353       1,424
Legal and professional             980         741         1,621       1,441
Advertising and marketing          1,162       1,040       2,271       2,035
Insurance                          570         347         1,069       638
Utilities                          552         406         1,041       807
Depreciation and amortization      1,312       1,190       2,632       2,310
Settlement of lawsuit              -           1,831       -           1,831
Other                              2,353       1,750       4,631       3,568
Total operating expenses           22,552      20,958      43,759      38,612
Operating income                   6,176       4,456       12,110      8,820
Other income (expense):
Interest income                    1           1           8           3
Interest expense                   (1,762)     (1,106)     (3,405)     (2,079)
Gain on change in fair value of    1           40          1           138
derivative instruments
Income from continuing             4,416       3,391       8,714       6,882
operations before income taxes
Income taxes                       1,615       1,134       3,199       2,342
Income from continuing             2,801       2,257       5,515       4,540
operations
Loss from discontinued             (3)         (87)        (17)        (133)
operations, net of income taxes
Net income                         2,798       2,170       5,498       4,407
Less: net income attributable      (53)        (53)        (106)       (106)
to noncontrollinginterests
Net income attributable to
Rick's Cabaret International,    $ 2,745     $ 2,117     $ 5,392     $ 4,301
Inc.
Basic earnings (loss) per share
attributable to Rick's
shareholders:
Income from continuing           $ 0.29      $ 0.23      $ 0.57      $ 0.46
operations
Loss from discontinued           $ (0.00)    $ (0.01)    $ (0.00)    $ (0.01)
operations
Net income                       $ 0.29      $ 0.22      $ 0.56      $ 0.44
Diluted earnings (loss) per
share attributable to Rick's
shareholders:
Income from continuing           $ 0.29      $ 0.23      $ 056       $ 0.46
operations
Loss from discontinued           $ (0.00)    $ (0.01)    $ (0.00)    $ (0.01)
operations
Net income                       $ 0.29      $ 0.22      $ 0.56      $ 0.44
Weighted average number of
commonshares outstanding:
Basic                              9,514       9,720       9,544       9,703
Diluted                            9,988       9,731       9,871       9,710

* Non-GAAP Net Income. We exclude from non-GAAP net income amortization of
intangibles, patron taxes, income tax expense, impairment charges, gains and
losses from asset sales, stock based compensation, litigation and other
one-time legal settlements and acquisition costs, and include the Non-GAAP
provision for income taxes, calculated as the tax-effect at 35% effective tax
rate of the pre-tax non-GAAP income before taxes less stock-based
compensation, because we believe that excluding such measures helps management
and investors better understand our operating activities.

* Non-GAAP Operating Income. We exclude from Non-GAAP operating income
amortization of intangibles, patron taxes, gains and losses from asset sales,
stock-based compensation charges, litigation and other one-time legal
settlements and acquisition costs. We believe that excluding these items
assists investors in evaluating period-over-period changes in our operating
income and operating margin without the impact of items that are not a result
of our day-to-day business and operations.

Our Form 10-K contains additional details relative to each of the non-GAAP
financial measures and is posted on our website at www.ricksinvestor.com.

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, Charlotte, Dallas/Ft. Worth,
Houston, Minneapolis, Indianapolis and other cities are named "Rick's
Cabaret," "XTC," "Club Onyx" and "Tootsie's Cabaret" and other brand names.
Sexual contact is not permitted at any locations. Rick's Cabaret also operates
a media division, ED Publications. Rick's Cabaret common stock is traded on
NASDAQ under the symbol RICK. For further information contact ir@ricks.com or
visit www.ricksinvestor.com. Twitter: @rickscabaret; Facebook:
http://www.facebook.com/rickscabaretintl.

Forward-looking Statements: This press release may contain 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
press release, 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.ricksinvestor.com.

SOURCE Rick's Cabaret International, Inc.

Website: http://www.ricks.com
Contact: Allan Priaulx, 212-338-0050, allan@ricks.com
 
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