The business of sin hasn't been a pretty place to be for the last few years, as individuals and businesses cut back on some of their more non-essential expenses. But as the economy slowly improves and corporate profits roar back, we're starting to see the sin business perform significantly better.
In the fiscal first quarter, revenue at Rick's rose just 4.2% to $20.9 million. A sharp drop in advertising and marketing expenses helped push earnings up by 165%, to $2.1 million or $0.21 per share.
Rick's Las Vegas club (of all places) is still losing money, partly because casinos like MGM Resorts
Following the ill-timed Las Vegas club deal, and the breakup of a deal to purchase club operator VCG Holding
Dancing into the next quarter
If you're looking for a new sin stock or a way to profit from the Super Bowl now that the game is over, Rick's may be the place you're looking for. With seven locations in the Dallas-Fort Worth area, I'd bet that business was good for the weeks leading up to the big game.
With profits on the mend and a potential Super Bowl boost next quarter, Rick's Cabaret is a sin stock worth a second look.
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Fool contributor Travis Hoium is not disclosing whether he has been a Rick's Cabaret patron. He does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.
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