Rick's Cabaret Completes Acquisition of Centerfold's Gentleman's Club In San Antonio, Its Third Nightclub In Growing Texas Market
HOUSTON -(August 24, 2006)
- Rick's Cabaret International,
Inc. [NASDAQ:RICK]
the publicly traded chain of adult nightclubs, said today its subsidiary
RCI Debit Services, Inc., has completed the acquisition of
Centerfolds
Gentleman's Club in San Antonio, Texas (5418 Brewster Street).
Additionally, its subsidiary RCI Holdings, Inc. has completed the
acquisition of the real property where Centerfolds is located.
The former Centerfolds will become an upscale Rick's Cabaret, featuring
beautiful and personable entertainers in a luxurious setting, the
model the company uses at its existing Rick's Cabaret clubs in New
York City, Houston, Charlotte and Minneapolis.
Under terms of the transaction, the Rick's Cabaret subsidiaries
are paying a total of $2.9 million for the club, along with an 18,000
square foot building and accompanying real estate. Of this amount,
$600,000 was paid in cash at the closing and the remaining amount
is being financed through promissory notes that are not convertible
into Rick's Cabaret stock. Key former owners have entered into non-compete
agreements.
"This is an important acquisition for us and we are looking
forward to introducing the upscale Rick's Cabaret model into the
very dynamic San Antonio market," said
Eric Langan,
CEO of Rick's Cabaret.
With today's acquisition Rick's Cabaret now operates three clubs
in the San Antonio market. The company has operated an
XTC
Cabaret (2023 Sable Lane) for several years. On July 11th,
Rick's Cabaret acquired the former
Club Exotica
(4102 Naco Perrin Street), which is now operating as an upscale
Club Onyx, catering to African-American gentlemen.
The newest club is conveniently located in North San Antonio directly
off the busy I-35 artery. San Antonio is one of the fastest growing
cities in the United States. The U.S. Census Bureau announced last
month that among the 10 largest cities San Antonio has replaced
San Diego as the nation's seventh most populous city. Along with
population growth, San Antonio has also witnessed strong economic
and employment growth primarily attributed to its stable economic
sectors.
About Rick's Cabaret
Rick's Cabaret International, Inc. (NASDAQ: RICK,
www.ricks.com)
operates upscale adult nightclubs serving primarily businessmen
and professionals that offer live adult entertainment, restaurant
and bar operations. The company owns and operates or licenses adult
nightclubs in New York City, New Orleans, Charlotte, Houston, Minneapolis
and other cities under the names "Rick's Cabaret," "XTC"
and "Club Onyx." No sexual contact is permitted at any
of these locations. Rick's Cabaret also owns the adult Internet
membership Web site,
www.couplestouch.com,
and a network of online adult auction sites under the flagship URL
www.naughtybids.com. Rick's
Cabaret common stock is traded on NASDAQ under the symbol RICK.
For further information contact
ir@ricks.com
or visit
www.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 New York City and elsewhere, the success or lack thereof in launching
and building the company's businesses in New York City and elsewhere,
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 go to
www.ricks.com.
Contact for further information: Allan Priaulx, 212-338-0050,
ir@ricks.com