The Low Down On Las Vegas Escorts.

Rick’s Cabaret International (RICK) reported quarterly earnings, or a lack thereof, last Monday (see conference call transcript here). The company missed again, reporting earnings below consensus and its own estimates. More importantly, the company has pulled its guidance for the balance of this year and next. It is another example of management overpromising and underdelivering – not a good combination for garnishing Wall Street’s embraces.
Rick’s Cabaret is not your stereotype sleazy, dimly lit, poorly decorated stripper bar. RICK operates a chain of 21 upscale clubs in major cities, like New York, Miami, Las Vegas, and Dallas.
Revenues for the quarter came in at $19.9 million, a decline of about 11% below last year, and were led by a 17% decline in same store sales. Anticipated FY10 revenues should be close to $81 million, a bit below management’s January forecast of $84 million. The big difference is in 2011 current street consensus of flat revenues versus management’s previous belief of 20% growth. The large decline in same store sales is a bothersome trend that needs to be watched closely.

See the full article from “Seeking Alpha (blog)”