Rick's Cabaret Expands With San Antonio Club

By KRIS HUDSON
July 13, 2006 5:26 p.m.

DALLAS -- Rick's Cabaret International Inc. announced its intent to buy its second club this month in San Antonio, committing to pay $2.9 million for an upscale Centerfolds Gentlemen's Club and convert it to its Rick's Cabaret brand.

The Centerfolds purchase, which Rick's intends to cinch with a formal deal by July 31, comes after the company announced Tuesday it purchased a Club Exotica in San Antonio. Rick's, Houston, paid $125,000 for that club with plans to spend another $100,000 on renovations before reopening it in August under its Club Onyx brand for African-American men.

The purchases give Rick's 12 adult-entertainment clubs. The new clubs are not Rick's first in San Antonio; the company has operated an XTC Cabaret all-nude club in the city since 1997. Eric Langan, Rick's chief executive officer, president and acting chief financial officer, said the company will continue making acquisitions into next year.

"Our goal is to buy $5 million in revenues by the end of the year," Mr. Langan said Thursday in an interview. "This will get us to $3 million. I think we'll add another $2 million this year, and approximately $15 million next year."

For its fiscal year ended Sept. 30, Rick's posted revenue of $14.8 million and a net loss of $215,148.

Write to Kris Hudson at kris.hudson@wsj.com