Rick's Cabaret International Inc. (NASDAQ: RICK), which in August signed a letter of intent to take over Philadelphia's once-controversial Crazy Horse Too club, is taking the high road in its SEC filings.
Rick's, based in Houston and one of just two publicly traded operators of strip clubs, is having a good year, according to an investor presentation filed this week with the SEC. In its last fiscal year, it reported revenue of $24.5 million, up 65 percent from the previous period. The company's shares are up 70 percent in the past year, even outperforming the soaring stock of Apple Inc. (NASDAQ: AAPL). But the presentation does more than list numbers. It lays out Rick's formula for success, including its "no-tolerance policy regarding illicit sex or illegal drug use in or around the premises." And then there's its hiring and employment standards:
Female Entertainment. The Company maintains high standards for personal appearance and conduct of entertainers and waitresses. Applicants are engaged based on such factors of physical beauty, attitude, dress, personality and communication skills, demeanor and dancing ability. In most clubs, performers are independent contractors who pay a fee to perform and are paid by customers.
The Crazy Horse Too has had a colorful and somewhat controversial past in South Philly, where residents and local politicos had opposed its arrival in 2005. The club is part of a Las Vegas-based company that a Nevada TV station says has an "infamous" history. Now the company is in foreclosure. In Pennsylvania, state records show the club is owed by The End Zone Inc. of Philadelphia, whose president is listed as Salvatore Coscia. Not clear if that's the same person as "Romeo Coscia" cited by the Daily News two years ago. But its owner may not be out of the picture entirely: For now, Rick's Cabaret is buying just 51 percent of The End Zone and 51 percent of its property firm called TEZ Real Estate L.P.
