HOUSTON - (October 17, 2012) - Rick's Cabaret
International, Inc. (NASDAQ:RICK), the publicly traded
group of upscale gentlemen's clubs, said today its
subsidiaries have completed the acquisition of the two
remaining clubs in the previously announced purchase of 11
clubs in Texas and Arizona, as well as associated real
Jaguars Acquisitions, Inc. and other subsidiaries paid a
total of $26 million for the 11 clubs, including $4 million
in cash, with the remainder payable through a promissory
note. Jaguars Holdings, Inc. paid a total of $10 million
for real estate associated with the clubs, including
$350,000 cash at closing, a one time payment of $650,000
due in 12 years, and the remainder payable through a
promissory note. Both promissory notes are payable over 12
years at 9.5 percent interest and may be prepaid after five
The locations purchased are nine clubs operated as
"Jaguars" in Phoenix, Arizona and in Lubbock, Odessa, El
Paso, Harlingen, Tye, Edinburg, Beaumont and Longview in
Texas, plus two new clubs that will operate as Rick's
Cabarets in Lubbock and Odessa.
Eric Langan, President and CEO of Rick's Cabaret
International, Inc., said the transaction should add
approximately $15 million in gross revenues and
approximately $7 million of EBITDA. "These are fine venues
that we believe will contribute significantly to our
earnings and cash flow," he said.
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
operate as "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. Rick's Cabaret
common stock is traded on NASDAQ under the symbol RICK. For
further information contact firstname.lastname@example.org or visit www.ricksinvestor.com
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
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