Key Developments For Rick's Cabaret International, Inc.
Rick's Cabaret International, Inc. (RICK.O) (Consolidated Issue listed on NASDAQ Global Market)
Rick's Cabaret International Completes Acquisition of Club in Dallas-Ft. Worth Market
Rick's Cabaret International announced that it has completed the acquisition of Cabaret North in Ft. Worth, paying $2.3 million in cash. The Company also acquired an option to buy the property occupied by the club within 19 months for approximately $2.4 million.
Rick's Cabaret International Agrees To Acquire Additional Nightclub In Dallas-Ft. Worth Market
Rick's Cabaret International announced that it has agreed to acquire Cabaret North, an upscale gentlemen's club in Ft. Worth, Texas. Upon closing expected, September 30, Rick's Cabaret will pay $2.3 million to acquire 100% of the shares of Cabaret North, Inc., which owns the club that occupies a modern two story, 17,000 square foot building.
Rick's Cabaret International Extends Long Term Debt Obligations and Renegotiates Put Options
Rick's Cabaret International announced that it has renegotiated terms of certain of its long term debt and a significant portion of outstanding put options used in the financing of some recent acquisitions. As part of the restructuring, Rick's Cabaret renegotiated the terms of Lock-Up/Leak-Out agreements with sellers of certain clubs it has purchased in recent years. Under these agreements the sellers have the right to have Rick's Cabaret purchase a certain number of its shares of common stock issued as payment for the acquisitions. Under the original Lock-Up/Leak-Out agreements, the potential existed that 233,438 shares could be put to the Company in the 12 months starting June 1, 2009 at a potential cost of $5.2 million. Under the renegotiated plan the number of shares the Company could be required to buy in this period has been reduced to 181,242 at a potential cost of $4 million. Mr. Langan also noted that each one dollar increase in the Company's stock price reduces the potential cash outlay by almost $600,000 over the term of the puts. The Company also extended by two years, until November 30, 2012, the payment of $10 million in promissory notes to the previous owners of Tootsie's Cabaret in Miami Gardens, FL. The balloon payment originally was due November 30, 2010.
Rick's Cabaret International Comments On FY 2009 Earnings Guidance
Rick's Cabaret International announced that for fiscal 2009, it expects continued profitability. According to Reuters Estimates, analysts were expecting the Company to report EPS of $0.63 for the same period.
Rick's Cabaret International Announces Increase In Stock Repurchase program
Rick's Cabaret International announced that it has authorized the buyback of up to $5 million of the Company's common stock. In a special meeting the Board increased the buyback authorization from the previous level of $500,000.
