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Actual results could differ materially from those projected in the forward ... Club is Sensational Luxuriant Decor, First Class Steak House, Beautiful ... – PowerPoint PPT presentation

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Title: Rick

(No Transcript)
Safe Harbor Forward-Looking Statement
  • In the following presentation by Mr. Eric Langan
    you may hear oral forward-looking statements that
    are covered under the provisions of Section 27A
    of the Securities Act of 1933 regarding Safe
    Harbor statements. Mr. Langan may make
    forward-looking statements regarding revenue,
    income and other business activities of Ricks
    Cabaret. Actual results could differ materially
    from those projected in the forward-looking
    statements as a result of many factors, including
    but not limited to the risks associated with
    operating an adult business, the business
    climates in New York City and elsewhere, the
    success or lack thereof in launching and building
    the companys business in New York City and
    elsewhere, and numerous other factors. Under
    provisions of the Safe Harbor section, the
    company is under no obligation to correct, update
    or amend oral statements made by Mr. Langan.
    Definitive information about the company is
    presented on the companys Website,
    www.ricks.com, and in filings made to the SEC,
    which are also available on the Website.

The Gentlemens Club Industry - Overview
  • Approximately 3,000 Clubs Nationwide
  • Local Regulation of Clubs Can Be a Plus If It
    Limits Competition
  • Startup Cost is High for New Upscale Club
  • Clubs Are Generally High Profit Centers with
    Multiple Revenue Streams

Consolidating Industry
  • Twenty Years Ago Most Clubs Independently Owned
  • Aging Baby Boomer Owners Now Selling Their Clubs
  • Purchasers are Larger Chains Ricks / Spearmint
    Rhino / PTT
  • Consolidation Model Similar to Casino Industry
  • Potential for Economies of Scale and Other Bottom
    Line Benefits

Adult Club Sector Is a Credible Industry
  • Has Its Own Trade Organization Lobbying Group
  • Association of Club Executives (www.acenational.or
  • Actively Lobbies in State Legislatures

Business Model - Sources of Revenues
  • Independent Contractor Entertainers Pay to
  • Customers Pay Entry Charge
  • Beverage-Bar Service Highly Profitable,
    particularly in NYC.
  • VIP Suites Rent at 200/hour in NYC (The
    Entertainer Charge Is Extra)
  • Dinner Menu at Premium Prices (56 steak in NYC)
  • Credit Card Transaction Fees
  • ATM Machine Fee

Ricks Cabaret Results
  • 2004 Results Rev 16M / Net .8M
  • First 3Q 2005 Rev 10.6M / Net /.05
  • Cant Discuss 2005 FY as Close was Sept 30th 4Q
    Will Include NYC Charlotte Startup Costs
  • Outlook for Future NYC Major Factor

Balance Sheet Review
  • Real Estate Significant Acquisitions in 90s
    Good LTV Leverage
  • Long Term Debt Subsidiaries Guarantee
  • Cash Generation Healthy Adequate

Impact of NYC Club
  • Club is Sensational Luxuriant Decor, First
    Class Steak House, Beautiful-Friendly Staff, Fun
  • Gives Ricks High Profile with NYC Financial
  • Should Contribute 8 M Revenue in 2006
  • 2006 Net Income Should be 2 M
  • Reason Higher Profit Margins / Little Increase
    in Corporate Overhead

Response To Date to NYC Club
  • Positive Comments from Media Financial
  • Grand Opening A Big Success 500 Guests First
  • Steady build week-on-week
  • New Lunch Buffet 7-Drinks Very Popular

Immediate Goals
  • Plan on 18-Month Build to Level Performance in
    New York City
  • Continue to Build Corporate Management Team
  • Renew Exploration of Next Acquisition(s) in major
  • As Stock Appreciates, Use as Acquisition Tool

The Future Acquisition Strategy/Criteria
  • Major Metro Areas with High Business Traffic
  • Favorable Local Legal Environment
  • Purchase at 3-5 Times Earnings
  • Immediately Accretive No Ramp Up Needed
  • Ability to Arrange Suitable Purchase Package

Ricks Cabaret
  • Thank you to Informed Investors Forum
  • Please contact
  • Ir_at_ricks.com
  • For an IR kit or further information.
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