On Dec. 28, small but feisty nightclub operator Rick's Cabaret (NASDAQ:RICK) released earnings for the 2006 fiscal year ended Sept. 30.

  • Same-club sales increased 25% year over year. Combined with the company's aggressive expansion strategy, net revenues grew a whopping 65% over last year.
  • Rick's generated more net profits in this quarter than it ever has -- in any twelve-month period, that is. Margins and return ratios have never looked this good, either.
  • Rick's is still too small a company to qualify for a CAPS rating. But there's at least one four-star stock among adult entertainment companies today. Click on over to CAPS to find out more about your favorite industries.

(Figures in thousands, except per-share data)

Income Statement Highlights

FY 2006

FY 2005

Change

Sales

$24,487.2

$14,824.4

65.2%

Net Profit

$1,752.7

($215.2)

N/A

EPS

$0.35

($0.05)

N/A

Diluted Shares

5066.0

3937.6

28.7%



Get back to basics with a look at the income statement.

Margin Checkup

FY 2006

FY 2005

Change*

Gross Margin

88.1%

87.4%

0.7

Operating Margin

12.2%

2.0%

10.2

Net Margin

7.2%

(1.5%)

8.7

*Expressed in percentage points

Margins are the earnings engine. See how they work.

Management Effectiveness

FY 2006

FY 2005

Change*

Return on Average Assets

25.2%

(4.6%)

29.8

Return on Average Equity

61.5%

(10.1%)

71.6

* Expressed in percentage points

See how management puts its financial tools to work.

Balance Sheet Highlights

Assets

FY 2006

FY 2005

Change

Cash + ST Invest.

$854.9

$480.3

78.0%

Trade Accounts Rec.

$192.4

$310.7

(38.1%)

Inventory

$291.6

$257.6

13.2%


Liabilities

FY 2006

FY 2005

Change

Accounts Payable

$555.0

$1,034.5

(46.4%)

Long-Term Debt

$10,255.5

$11,896.9

(13.8%)



Learn the ways of the balance sheet.

Cash Flow Highlights

FY 2006

FY 2005

Change

Cash From Ops.

$2,725.8

$2,090.0

30.4%

Capital Expenditures

$1,641.7

$4,242.4

(61.3%)

Free Cash Flow

$1,084.0

($2,152.3)

N/A



Find out why Fools always follow the money.

Other Adult Entertainment Companies:

  • VCG Holding (AMEX:PTT)
  • Playboy Enterprises (NYSE:PLA)
  • New Frontier Media (NASDAQ:NOOF)
  • Private Media Group (NASDAQ:PRVT)

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At the time of publication, Fool contributor Anders Bylund had no position in any company mentioned. Fool rules are here .