* Q1 EPS $0.09 vs est $0.13
* Rick's shares fall 12 pct after the bell
Feb 16 Strip club operator Rick's Cabaret
International Inc (RICK.O) posted a quarterly profit that
missed estimates and said it plans to buy VCG Holding Corp
Shares of Rick's were down 12 percent at $11.30 in extended
Under the letter of intent signed by the companies, VCG
Holding's shareholders will receive Rick's shares based on
certain exchange ratios, valuing VCG Holding's shares between
$2.20 and $3.80 a share.
Based on Rick's Tuesday closing price of $12.89, VCG
Holding's shares would be valued at $2.66 a share, the
Rick's will also buy 5.77 million VCG Holding's shares held
by Troy Lowrie and his affiliates for $2.44 a share in cash or
the price of common stock received by VCG Holding's
shareholders in the proposed merger, whichever is lower.
Rick's currently operates 18 nightclubs in seven states
while VCG Holding operates 20 clubs in 10 states. The deal
would create the largest publicly traded operator of upscale
strip clubs in the United States, the companies said.
For the first quarter, Rick's reported net income available
to the company of $782,688, or 9 cents a share. Total revenue
rose 17 percent $20.0 million.
Analysts on average were expecting earnings of 13 cents a
share on revenue of $19.3 million, according to Thomson Reuters
Rick's costs related to acquisition activities and
aggressive marketing more than doubled to $2.9 million.
(Reporting by Viraj Nair in Bangalore; Editing by Anne