A year ago, Rick's was acquiring clubs in the $4 million-to-$6-million revenue range. Its most recent acquisition in Florida was an $18 million club.
"After you explain [Rick's business model] to investors, very few won't take a look," says Siris.
Something Different
While Rick's has only scratched the surface of the investment community, Langan sees the entire industry changing.
"Portfolio managers are looking for ideas that work," says Siris. "They're looking at what Rick's is doing and telling their friends."
The company currently has 20 quality institutional investors involved with the stock, says Siris. A few years ago it was three or four.
He likens the adult-entertainment industry to the casino industry 30 years ago. "We're in the beginning stages," he explains.
Sin Is In
With the advent of cable TV and MTV, younger generations see sexuality as less taboo, explains Langan.
"Our industry is basically no different to them than any other nightclub," he says.
Rick's clientele ranges from 20-somethings on first dates to Wall Street executives. On weekends about 25% of clients are women.
This liberal attitude has actually created a challenge for Langan, who must work harder to keep the club trendy and appealing to a younger clientele.
The adult industry isn't going public en masse, says Langan, but if companies like his continue to redefine an outdated image, sin may slink into the spotlight.
Annika Mengisen
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