Rick’s Cabaret International, Inc. Acquires ‘Joy of Austin’ Gentlemen’s Club

Rick’s Cabaret International, Inc. (NASDAQ: RICK), the nation’s leading operator of upscale gentlemen’s clubs, said today it has purchased an adult nightclub located just off Interstate 35 north of Austin, Texas.

The company estimates the new location will add about $800,000 annually in earnings before income tax, depreciation and amortization (EBITDA).

Total purchase price for the club currently known as Joy of Austin was $5.2 million. Rick’s Cabaret paid $2.7 million in cash, plus five year seller notes of $1.85 million at 4.75 percent interest, and assumption of $650,000 in existing mortgage debt. The transaction includes the business and real property.

Eric Langan, President and CEO of Rick’s Cabaret, said: ‘We have long believed the Austin market is ideal for the Rick’s Cabaret business model. The location we have purchased is more attractive from the standpoint of visibility and accessibility than our previous location in this market.’