Rci Hospitality Holdings, Inc. · NASDAQ:RICK
Rci Hospitality — Ricks Cabaret International — Investor Presentation (September 2007)
15 slides from Rci Hospitality's investor presentation, Sep 18, 2007
Slide 1: Investor Presentation September 07
Investor Presentation September 07 1
Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentation may contain forward-looking statements that are covered under the provisions of Section 27A of the Securities Act of 1933 regarding Safe Harbor statements. Forward-looking statements may involve revenue, income and other business activities of Rick's Cabaret.
Slide 3: Company Profile
Company Profile Overview Sales Growth ● Rick's Cabaret Intl. Inc. operates upscale adult entertainment nightclubs offering live (mm) entertainment as well as food and drinks ● LTM revenue split ● Alcoholic beverages 37% ● Food & merchandise 10% ● Service revenues 47% ● Internet & other 6% ● Headquar
Slide 4: Company History
Company History 1983-2003 2004-2006 2007- l Rick's founded in 1983 in Houston l Implemented proprietary l Positioned for future cash management and growth control systems l Listed on NASDAQ in l Building national 1995 l Acquired and presence successfully integrated l Eric Langan appointed NYC and No
Slide 5: Investment Highlights
Investment Highlights ● Large, fragmented and rapidly growing industry ● $2Bn in 2006*, 10% y-o-y growth, stable demand and universal appeal ● Proven business model with focus on core competencies ● Large real estate portfolio ● Key business licenses in NYC and other cities ● Strong financial perfor
Slide 6: Management Team
Management Team Name Title Relevant experience Eric Langan President and CEO • 20 years business and industry experience • Member of the Board of Directors of Adult Club Executives (ACE), the major trade organization for this industry • Successfully started and developed businesses prior to Rick's P
Slide 7: Large & Growing Industry
Large & Growing Industry 2006 Adult Industry Segments Favorable Trends ● In 2006, $13Bn large, growing non-cyclical industry ● Stable demand, universal appeal ● US consumer more accepting, interested in adult entertainment ● $2Bn adult club revenues ● Clubs segment is fragmented with no clear leader
Slide 8: Revenue Model
Revenue Model Rick's Revenue by Segment Business Model LTM 6/30/07 ● Financial controls with our proprietary cash management system ● Multiple revenue streams ● Growing brand awareness ● Maintaining quality control enhances brand & corporate value ● Quality customer service builds loyalty, assures r
Slide 9: Strategy
Strategy ● Focus on core competency - become #1 club in each market Organic Growth ● Increase operating efficiency & raise gross margins ● Transparency, security, and rigorous cash control ● Build brand awareness/equity ● Maintain lean operating system l Major metro areas: high business traffic / co
Slide 10: Impact of Acquisition of NY Club
Impact of Acquisition of NY Club Transaction Overview Financial Performance ● On January '05, Rick's acquired Paradise Club for $7.6 mm (3.2x Rev), a prime Midtown Manhattan location with grandfathered licence ● Financed with $2.5 mm cash and $5.1 mm seller notes convertible into shares of restricte
Slide 11: Income Growth
Income Growth Financial Performance Recent Factors ● Organic Growth avg 10% ● Acquisition growth avg 22% ● Beat 2Q and 3Q '07 estimates ● Strong cash flow generation ● Signed LOI with Philadelphia club 11
Slide 12: Strong Balance Sheet
Strong Balance Sheet Balance Sheet Comments ● Solid positioning as an industry consolidator ● Real property holdings provide long-term protection ● Equity growth 12
Slide 13: Concerns and Responses
Concerns and Responses ● Legal environment raises questions Concerns ● Industry "stigma" limits access to capital ● Liquidity ● Economies of scale difficult ● Theft and losses l Strict zoning and other regulations actually enhance our competitive position Responses l Grandfathered licenses l "Stigma
Slide 14: Investment Highlights
Investment Highlights ● Large, fragmented and rapidly growing industry ● $2Bn in 2006*, 10% y-o-y growth, stable demand and universal appeal ● Proven business model with focus on core competencies ● Large real estate portfolio ● Key business licenses in NYC and other cities ● Strong financial perfor
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Ricks Cabaret International — Investor Presentation (September 2007) on 6ix