Rci Hospitality Holdings, Inc. · NASDAQ:RICK
Rci Hospitality — H. C. Wainwright Conference 2024
16 slides from Rci Hospitality's conference presentation, Sep 9, 2024
Slide 1: Building a portfolio of well-managed, high cash-flowing nightclubs & sports-bar restaurants
Building a portfolio of well-managed, high cash-flowing nightclubs & sports-bar restaurants NASDAQ: RICK | H. C. Wainwright Conference | September 9-11, 2024 | www.rcihospitality.com | @RCIHHinc
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation 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 under
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, a
Slide 4: Strong Business Model: Compelling Investment Opportunity
Strong Business Model Adult Compelling Investment Opportunity Nightclubs Only public Classic, timeless Consistent & High barriers to Fragmented company that & legal segment predictable cash entry & limited market with owns & acquires of adult flows competition significant adult nightclubs entertainm
Slide 5: Times Have Changed
Times Have Changed Perception Reality Tootsie’s Cabaret Miami 5
Slide 6: Our Club Portfolio
Our Club Portfolio 9M24 Sales By State Great • 56 clubs Locations • 13 states Other 15% TX 34% CO 7% Major • More than 20 Brands • Some of the best in the business IL 7% • Gen Z, Millennials, Gen X, Baby Boomers NY Wide 10% FL 27% • Blue & white collar Appeal • White, Black, Hispanic By Type Strong
Slide 7: Some of Our Top Brands
Some of Our Top Brands Elegant clubs with fine dining restaurants High-energy “party" style adult nightclubs High-energy adult nightclubs playing top hip hop music World’s largest adult nightclub with 74,000 square feet All-American Rock/Country themed adult clubs Lively BYOB clubs for blue collar p
Slide 8: Bombshells
Bombshells Plan Improve sales & margins Overview Finish • 12 locations in Texas new builds • Big sports bar/restaurant • Generated 100% ROIC • Over-performed during Covid Continue • More recently SSS has declined to explore strategic options Bombshells 290 Bombshells 290 in Houston in Houston Capita
Slide 9: Capital Allocation Strategy
Capital Allocation Strategy* • Initiated in 2015 Overview • Governs use of FCF, creates financial discipline, focuses us on shareholder value • Inspired by The Outsiders by William N. Thorndike Jr. • Club acquisitions that can generate at least 25-33% cash on cash return • Share buybacks if FCF/PS y
Slide 10: Track Record of Success
Track Record of Success Total Revenues ($M) Locations Net Cash Provided by Operating Free Cash +120% +63% Activities ($M) +219% Flow ($M) +211% $298 $52 70 $46 43 $135 $16 $15 FY15 TTM 6/30/24 9/30/2015 6/30/2024 FY15 TTM 6/30/24 FY15 TTM 6/30/24 Share Count (M) RICK Stock S&P 500 -13% +346% +178% 1
Slide 11: Our Unique Advantage
Our Unique Advantage • 3-5x adjusted EBITDA for clubs Exit Strategy • Market price for real estate of Choice for • Upfront cash downpayment the Industry • Trusted seller financing for the balance • Free cash flow Multiple Cash • Bank real estate financings / refinancings Sources • Private lender gro
Slide 12: The Road Ahead
The Road Ahead FY20-23 FY23-24 FY25-29 • Survived Covid • Working through uncertain • Developing 5-year plan • Big benefit from post- economy • Focus: How to best Covid bounce • 3Q24: First club SSS increase FCF/PS & return • Made our two biggest increase since 2Q23 value to shareholders acquisition
Slide 13: Pillar 1: Back to Basics
Pillar 1: Back to Basics Project Location Status Plan Bombshells Stafford, TX • Opened November 2023 PT’s Centerfold Lubbock, TX • Opened March 2024 (BYOB) Return Scarlett’s Cabaret Denver Glendale, CO • 4 AM liquor license approved late March 2024 to pure play on adult nightclubs Baby Dolls (rebran
Slide 14: Pillar 2: Capital Allocation
Pillar 2: Capital Allocation FCF Use Targets After Debt Service Acquisitions Share (~50%) Buybacks FY25-29 FCF (~40%) Assuming No Growth ~$200-250M Dividends (Less than ~10%) 14
Slide 15: Summary: Success Leads to…
Summary Mission • Follow our Capital Allocation Strategy • Acquire the right adult nightclubs • Make sure our guests have a great time Success Leads to… • Regular guests returning • Prosperity for entertainers, our teams, & the company • Continued expansion & growth through: ❑ Increasing FCF/PS Baby
Slide 16: 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 www.rcihospitality.com Nasdaq: RICK 16
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