Rci Hospitality Holdings, Inc. · NASDAQ:RICK
Rci Hospitality — LD Micro Presentation June 2021
14 slides from Rci Hospitality's conference presentation, Jun 8, 2021
Slide 1: RCI Hospitality Holdings LD Micro Presentation
iQ». RCUMOSPIAUTY RoWncs NC 25 (7 Nasdaq RCI HOSPITALITY HOLDINGS INC Building a portfolio of well-managed, high cash-flowing nightclubs and restaurants NASDAQ: RICK LD Micro Presentation June 8, 2021 www.rcihospitality.com
Slide 2: Forward-Looking Statements
Forward-Looking Statements ‘This document contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements include, among other things, statements regarding plans, objectives, goals, strategies, future events or performance and underlyi
Slide 3: Non-GAAP Financial Measures
Non-GAAP Financial Measures In addition to our financial information presented in accordance with GAAP, management uses certain non-GAAP financial measures, within the meaning of the SEC Regulation G, to clarify and ‘enhance understanding of past performance and prospects for the future. Generally,
Slide 4: What We Do
What We Do Bombshells Restaurants Entertainment Drives Sales Building a portfolio of well-managed, high cash-flowing nightclubs and restaurants Founded 1983, IPO and Nasdaq listing in 1995 38 clubs — Many of the industry's best in top US markets Major brands: Rick's, Tootsie's, Scarlett’s, XTC, Jagu
Slide 5: Great Business
Great Business ‘Strong Cash Generation Total Revenues (FY20) + High gross profit margin (86.2% in FY19, 85.3% in FY20, 84.2% in 6M21) + Fast inventory turnover Entertainment ‘Alcoholic Services Beverages + Low maintenance capex ($3.9M in FY19, $2.2M in FY20, $2.6 in 6M21) 31% 45% Clubs: Barriers to
Slide 6: Capital Allocation Strategy
Capital Allocation Strategy* + Repurchase shares when FCF yield is more than 10% Buy Back Shares M&A Organic Buy More Judiciously of the Right Expand Nightclubs, Bombshells + Buy good, solid, cash DM Drive Value i + Structure investments flowing clubs at 3-5x . in new units to adjusted EBITDA with 1
Slide 7: Capital allocation and FCF strategy timeline
Pre-2016 ff Defined& ff Invested Disposed WW Aboeeeh ff Eliminated Tes Fomezlen Adopted in the Right Gi Under to Club Equity Cash Flow growing top Capital People, Performing [| Purchases |g Financing & Growth Used Debt line, not Allocation Systems & Fare Machine FCF Strategy Processes Locations & Ne
Slide 8: Strong Track Record FY15-19 (Pre-Pandemic)
Strong Track Record FY15-19 (Pre-Pandemic) Free Cash Flow ($M)* ian FCF as % of Revenues siss S189 uo, ris FriBiaduaed? FYI We Frisiegumd2 AT re We Total Sales / Location ($k)? Diluted Weighted Average Shares Outstanding (M) 1). For GAAP reconciliation, see page 13 RCI HOSPITAL 2) FY16 FCF of $18.5M
Slide 9: Progress Through COVID-19
Progress Through COVID-19 Nightclubs Revenues ($M) Bombshells Revenues ($M) — 3021 Sales Update ee bedi so sia + April: Club and restaurant sales only slightly below March + May: Set record for highest monthly club and restaurant sales in company history — exceeding March sce 4ar) tan zam=Sncan cone
Slide 10: Bombshells: Why It's Working
Bombshells: Why It’s Working More Upscale Than Traditional Sports Bars + Better quality food, service and experience + Appeals to men, women, families, friends, singles, couples, millennials + Large venues: ~8K sq. ft. Inside + ~2K sq. ft. patio outside + Big HDTVs, scratch kitchen, free Wi-Fi, USB
Slide 11: Nightclubs: Significant Acquisition Opportunities
Nightclubs: Significant Acquisition Opportunities Market Financial Dynamics 2,200 clubs / ~500 meet our acquisition criteria We are one of the largest, but our market share is < 2% Long-term owners interested in selling We are the acquirer of choice as the only public company in the space with acces
Slide 12: Overview
Overview + Capital allocation / FCF strategy proven effective + Positive net cash from operating activities and FCF during COVID + Refinancing of real estate debt expected to increase FCF Bombshells + Concept proven to work even through COVID + Plans to double number of owned locations (from 10 to 2
Slide 13: Non-GAAP Reconciliations
Non-GAAP Reconciliations* Reconciliation of GAAP diluted earnings (loss) per share tonon-GAAP diluted earnings per share Diluted shares (in 000) GAAP diluted earnings (loss) per share Amortization of intangibles Settlement of lawsuits Impairment of assets Loss (gain) on sale of businesses and assets
Slide 14: Contact Information
Contact Information Corporate Office 10737 Cutten Road Houston, TX 77066 Phone: (281) 397-6730 Investor Relations Gary Fishman Steven Anreder Phone: (212) 532-3232 IR Website wwe rcihospitality.com Nasdaq: RICK 4
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