The company’s stock was up 45 cents to $3.40 in late day trading on the Nasdaq.
Eric Langan, president and CEO or Rick’s, disclosed the news at a meeting with representatives of Financial Analysts and Money Managers, an investment community association, late Thursday.
Langan reported Rick’s was slated to bring in $2 million in net income during fiscal 2006, up from $800,000 in 2004. Overall revenue was down considerably for the same period, from $16 million to $8 million, but Langan associated the drop with the costs of opening the new club, and reported the company is meeting current revenue expectations.
“What’s particularly gratifying is that lots of our customers are Wall Street guys who appreciate having a first class establishment in midtown,” Langan said earlier of the Manhattan club. “Once they see us in action they feel more comfortable with our stock, which is a nice bonus.”
Langan also hinted that Rick’s would begin acquiring additional clubs, predicting that many owners of the roughly 3,000 upscale gentlemen’s clubs in the country were baby boomers who would soon want to cash in on their investment.
Rick’s recently acquired new clubs in New York City and Charlotte, NC.
