-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, DXSbOvoq0ikTL2lFT5sKYXMeMmPJKsJjqlReBp/EN1nvQ1Z6lRfXCnTEO2mmANT7 YcWvr1zBDh35x53/55Qq5g== 0001015402-99-000564.txt : 19990624 0001015402-99-000564.hdr.sgml : 19990624 ACCESSION NUMBER: 0001015402-99-000564 CONFORMED SUBMISSION TYPE: 8-K/A PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19990329 ITEM INFORMATION: FILED AS OF DATE: 19990528 FILER: COMPANY DATA: COMPANY CONFORMED NAME: RICKS CABARET INTERNATIONAL INC CENTRAL INDEX KEY: 0000935419 STANDARD INDUSTRIAL CLASSIFICATION: RETAIL-EATING & DRINKING PLACES [5810] IRS NUMBER: 760037324 STATE OF INCORPORATION: TX FISCAL YEAR END: 0930 FILING VALUES: FORM TYPE: 8-K/A SEC ACT: SEC FILE NUMBER: 001-13992 FILM NUMBER: 99636436 BUSINESS ADDRESS: STREET 1: 505 NORTH BELT SUITE 630 CITY: HOUSTON STATE: TX ZIP: 77060 BUSINESS PHONE: 2818201181 MAIL ADDRESS: STREET 1: 505 NORTH BELT SUITE 630 CITY: HOUSTON STATE: TX ZIP: 77060 8-K/A 1 SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 AMENDMENT NO. 1 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934 Date of Report: March 29, 1999 RICK'S CABARET INTERNATIONAL, INC. (Exact name of registrant as specified in its charter) Texas 0-26958 76-0037324 (State or other jurisdiction (Commission File Number) Identification No.) of incorporation or organization) (IRS Employer 505 North Belt, Suite 630 Houston, Texas 77060 (Address of principal executive offices, including zip code) (281) 820-1181 (Registrant's telephone number, including area code) Item 7. Financial Statements and Exhibits Introduction This Amendment No. 1 to Form 8-K sets forth pro forma financial information in connection with the Company's sale of certain assets. The sale of certain assets was reported on a Form 8-K dated March 29, 1999 and filed on April 6, 1999. Financial Statements: On March 29, 1999, Rick's Cabaret International, Inc. ("Rick's" or the "Company"), an investment partnership, headed by Eric Langan, President of the Company, and another investor, acquired all of Robert Watters' outstanding shares of stock of the Company. At the same time, the Company sold one of its subsidiaries, RCI Entertainment Louisiana, Inc., which operates a Rick's Cabaret in New Orleans, Louisiana, to Mr. Watters for the purchase price of $2,200,000, consisting of $1,057,327 in cash, a $652,744 secured promissory note made by one of the purchasers of Mr. Watters' stock, a $326,773 secured promissory note made by Mr. Watters, and the cancellation by Mr. Watters of the Company's $163,156 debt to him. The following Unaudited Pro Forma Consolidated Balance Sheet as of December 31, 1998 gives effect to the transaction as if it had occurred at that date. The Unaudited Pro Forma Consolidated Statements of Operations for the three months ended December 31, 1998 and the year ended September 30, 1998 give effect to the transaction as if it had occurred as of the beginning of each period. The Unaudited Pro Forma Consolidated Financial Statements are presented for informational purposes only and are not necessarily indicative of the results of operations that would have been achieved had the transaction been completed at the beginning of each period presented, nor are they indicative of the Company's future results of operations. The Unaudited Pro Forma Consolidated Financial Statements should be read in conjunction with the historical financial statements of the Company and the related notes thereto.
RICK'S CABARET INTERNATIONAL, INC. AND SUBSIDIARIES UNAUDITED PRO FORMA CONSOLIDATED BALANCE SHEET DECEMBER 31, 1998 ASSETS Historical ------------------------------------- Rick's Cabaret Less International, Inc. Rick's - N.O. Adjustments Pro Forma --------------------- --------------- ------------- ------------ Current assets: Cash $ 512,220 $ 317,428 $ 1,057,327 $ 1,252,119 Accounts receivable 110,252 53,662 326,773 383,363 Land held 569,069 569,069 Inventories 96,174 35,726 60,448 Prepaid expenses 208,009 51,927 156,082 --------------------- --------------- ------------- ------------ Total current assets 1,495,724 458,743 1,384,100 2,421,081 --------------------- --------------- ------------- ------------ Property and equipment 11,791,310 2,716,644 9,074,666 Less accumulated depreciation (1,308,266) (171,444) (1,136,822) --------------------- --------------- ------------- ------------ 10,483,044 2,545,200 - 7,937,844 --------------------- --------------- ------------- ------------ Other assets: - Goodwill and other intangibles 3,092,444 3,092,444 Other 124,971 10,712 114,259 --------------------- --------------- ------------- ------------ 3,217,415 10,712 - 3,206,703 --------------------- --------------- ------------- ------------ - $ 15,196,183 $ 3,014,655 $ 1,384,100 $13,565,628 ===================== =============== ============= ============ - - LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Current portion of long-term debt 713,811 - 713,811 Accounts payable and accrued expenses 1,915,955 354,261 (163,156) 1,398,538 --------------------- --------------- ------------- ------------ Total current liabilities 2,629,766 354,261 (163,156) 2,112,349 Long-term debt, less current portion 5,680,174 808,385 (652,744) 4,219,045 --------------------- --------------- ------------- ------------ Total liabilities 8,309,940 1,162,646 (815,900) 6,331,394 --------------------- --------------- ------------- ------------ Commitments and contingencies - - Minority interests 4,700 - 4,700 Stockholders' equity: Intercompany 1,286,002 1,286,002 - Preferred stock Common stock 65,475 65,475 Additional paid-in capital 8,940,576 8,940,576 Retained earnings (deficit) (2,124,508) 566,007 913,998 (1,776,517) --------------------- --------------- ------------- ------------ Total stockholders' equity 6,881,543 1,852,009 2,200,000 7,229,534 --------------------- --------------- ------------- ------------ $ 15,196,183 $ 3,014,655 $ 1,384,100 $13,565,628 ===================== =============== ============= ============
RICK'S CABARET INTERNATIONAL, INC. AND SUBSIDIARIES UNAUDITED PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS FOR THE THREE MONTHS ENDED DECEMBER 31, 1998 Historical ------------------------- ---------- Rick's Cabaret Less Pro Forma International, Inc. Rick's N.O. Adjustments Pro Forma --------------------- ------------- ------------- ----------- Revenues: Sales $ 3,317,969 $ 1,253,128 $ - $2,064,841 --------------------- ------------- ------------- ----------- Operating expenses: Cost of goods sold 487,859 197,754 290,105 Salaries and wages 1,004,943 238,863 (37,500) 728,580 Other general and administrative: Taxes and permits 288,696 38,790 249,906 Charge card fees 57,507 33,797 23,710 Rent 135,155 75,696 59,459 Legal and accounting 142,108 4,704 137,404 Advertising 198,423 60,641 137,782 Other 577,471 154,694 422,777 --------------------- ------------- ------------- ----------- 2,892,162 804,939 (37,500) 2,049,723 --------------------- ------------- ------------- ----------- Income (loss) from operations 425,807 448,189 37,500 15,118 Other income (expense) Gain on sale of nightclub - - 347,991 347,991 Interest expense (142,733) (17,856) 13,054 (111,823) --------------------- ------------- ------------- ----------- Net income $ 283,074 $ 430,333 $ 398,545 $ 251,286 ===================== ============= ============= =========== Net income (loss) per common share $ 0.04 $ 0.04 ===================== ============= Weighted average shares outstanding 6,507,403 6,507,403 ===================== =============
RICK'S CABARET INTERNATIONAL, INC. AND SUBSIDIARIES UNAUDITED PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS FOR THE YEAR ENDED SEPTEMBER 30, 1998 Historical ------------------------------------ Rick's Cabaret Less Pro Forma International, Inc. Rick's N.O. Adjustments Pro Forma --------------------- ------------- ------------- ----------- Revenues: Sales $ 7,831,531 $ 3,991,104 $ - $3,840,427 --------------------- ------------- ------------- ----------- Operating expenses: Cost of goods sold 1,102,556 639,533 463,023 Salaries and wages 2,653,558 1,041,160 (150,000) 1,462,398 Other general and administrative: Taxes and permits 831,388 302,049 529,339 Charge card fees 160,474 77,240 83,234 Rent 395,038 273,506 121,532 Legal and accounting 355,186 - 355,186 Advertising 488,224 299,296 188,928 Other 2,065,934 743,384 1,322,550 --------------------- ------------- ------------- ----------- 8,052,358 3,376,168 (150,000) 4,526,190 --------------------- ------------- ------------- ----------- Income (loss) from operations (220,827) 614,936 150,000 (685,763) Other income (expense) Gain on sale of nightclub - - 347,991 347,991 Interest expense (384,037) (82,278) 19,581 (282,178) --------------------- ------------- ------------- ----------- Net income (loss) $ (604,864) $ 532,658 $ 517,572 $ (619,950) ===================== ============= ============= =========== Net income (loss) per common share $ (0.14) $ (0.14) ===================== ============= Weighted average shares outstanding 4,338,034 4,338,034 ===================== =============
RICK'S CABARET INTERNATIONAL, INC. AND SUBSIDIARIES UNAUDITED PRO FORMA CONSOLIDATED FINANCIAL STATEMENTS 1. BASIS OF PRESENTATION On March 29, 1999, Rick's Cabaret International, Inc. ("Rick's" or the "Company"), an investment partnership, headed by Eric Langan, President of the Company, and another investor, acquired all of Robert Watters' outstanding shares of stock of the Company. At the same time, the Company sold one of its subsidiaries, RCI Entertainment Louisiana, Inc. ("Rick's New Orleans"), which operates a Rick's Cabaret in New Orleans, Louisiana, to Mr. Watters for the purchase price of $2,200,000, consisting of $1,057,327 in cash, a $652,744 secured promissory note made by one of the purchasers of Mr. Watters' stock, a $326,773 secured promissory note made by Mr. Watters, and the cancellation by Mr. Watters of the Company's $163,156 debt to him. The following Unaudited Pro Forma Consolidated Balance Sheet as of December 31, 1998 gives effect to the transaction as if it had occurred at that date. The Unaudited Pro Forma Consolidated Statements of Operations for the three months ended December 31, 1998 and the year ended September 30, 1998 give effect to the transaction as if it had occurred as of the beginning of each period. The Unaudited Pro Forma Consolidated Financial Statements are presented for informational purposes only and are not necessarily indicative of the results of operations that would have been achieved had the transaction been completed at the beginning of each period presented, nor are they indicative of the Company's future results of operations. The Unaudited Pro Forma Consolidated Financial Statements should be read in conjunction with the historical financial statements of the Company and the related notes thereto. 2. PRO FORMA ADJUSTMENTS Pro forma adjustments are as follows: 1. A gain on sale of Rick's New Orleans of $347,991 was recorded. 2. A reduction in management salaries (Mr. Watters) in the amount of $150,000 for the year ended September 30, 1998, and $37,500 for the three months ended December 31, 1998 was recognized. 2. PRO FORMA ADJUSTMENTS (CONTINUED) 3. A reduction in interest expense in the amount of $13,054 and $19,581 for the year ended September 30, 1998 and the three months ended December 31, 1998, respectively, was recorded to reflect the receipt of the secured promissory note which will be offset against a similar note payable to the maker of such note. Exhibits: None SIGNATURES ---------- Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report on Form 8-K to be signed on its behalf by the undersigned hereunto duly authorized. RICK'S CABARET INTERNATIONAL, INC. Date: May 25, 1999 /s/ Eric Langan ----------------------- Eric Langan, President -----END PRIVACY-ENHANCED MESSAGE-----