RCI Hospitality Holdings, Inc. · NASDAQ:RICK
RCI Hospitality — H.C. Wainwright Conference 2023
14 slides from RCI Hospitality's conference presentation, Sep 11, 2023
Slide 1: Building a portfolio of well-managed, high cash-flowing nightclubs and restaurants
Building a portfolio of well-managed, high cash-flowing nightclubs and restaurants NASDAQ: RICK | H.C. Wainwright Conference | Sept. 11-12, 2023 | 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: RCI at a Glance
RCI at a Glance What We Do FCF Focus Key to Success Moat Change Growth Management Transforming A leader in the Free cash flow Disciplined Adult Large runway to industry from “strip Deep bench of nightclub-bar- per share capital allocation nightclub license buy & open clubs” to “adult industry expert
Slide 5: Compelling Financial Profile
Compelling Financial Profile (TTM and share count as of 6/30/23) Net Cash Metric Cash Common Total Provided by Free Cash Operating Adjusted (TTM Dividends Shares Revenues Operating Flow Income EBITDA 6/30/23) Per Share Outstanding Activities In millions, except per $290 $65 $57 $64 $89 22¢ 9.4 share
Slide 6: Growth Algorithm
Growth Algorithm (as % of revenues TTM ended 6/30/23) High Gross Profit Margins 87% Revenue Mix Acquire & Leads to High Gross Profit Margins Fast Cash (TTM ended 6/30/23) Build More Conversion Clubs & Cycles Restaurants Entertainment Alcoholic Services Beverages 36% 43% Access to Low Cost of Bank &
Slide 7: Capital Allocation Strategy Guides Our Growth
Capital Allocation Strategy Guides Our Growth1 FY22 • Repurchase shares when • $15.1M cash deployed FCF yield is more than 10% • 268,185 shares repurchased Buy Back • $56.29 average price/share Shares M&A Organic Buy More Methodically of the Right Expand FY22 • $141.8M capital deployed Nightclubs Bo
Slide 8: Strategic Share Buybacks & Issuance
Strategic Share Buybacks & Issuance Cumulative Cumulative Cumulative Cumulative Shares Used Repurchased Average Price Value Per Shares Used Value of Fiscal Year Shares Average Price for Shares Per Share Share for Shares Used Repurchased Per Share Acquisitions Acquisitions in Acquisitions 2015 225,28
Slide 9: 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 10: Well-Positioned in Attractive Markets
Well-Positioned in Attractive Markets Highly attractive US markets • ~70% our locations in Top 25 Metropolitan Statistical Areas Club acquisition and development expands footprint • FY19-23: Acquired ~40% of our clubs • Long-Term Target: Own 200 locations • Long-term owners interested in selling • W
Slide 11: Casinos Leverage Our Expertise
Casinos Leverage Our Expertise • Few casinos offer entertainment outside Concept of Las Vegas and Atlantic City • Leverages our clubs and restaurants expertise • Develop locations in Central City, CO Plan • Rick’s Cabaret Steakhouse & Casino ( 0K sq ft) • Bombshells Sports Casino (20K sq ft) • 44 st
Slide 12: The Rick's Casino Opportunity
The Rick’s Casino Opportunity1 • $2.4M for building and real estate The • Approximately $9.0M anticipated to finish the Investment location • Expect to feature 200 slot machines • Excluding casino, similar-sized RCI club generates $8-$10M annual revenue • Central City slots average $131/day, which c
Slide 13: 4Q23-FY24 New & Planned Locations
4Q23-FY24 New & Planned Locations Project Location Status Baby Dolls • Fort Worth, TX • Remodeling completed in June Reformatted Club • Tye, TX • Reopened September 7 • Remodeling in progress New Club • Fort Worth, TX • Anticipate opening in FY24 Replacement Club • Lubbock, TX • Anticipate opening i
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 www.rcihospitality.com Nasdaq: RICK 14
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