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 A leader in the nightclub-bar- restaurant business Free cash flow per share compounder Disciplined capital allocation strategy Adult nightclub license barrier to entry Transforming industry from “strip clubs” to “adult
Slide 5: Compelling Financial Profile
Compelling Financial Profile (TTM and share count as of 6/30/23) Metric (TTM 6/30/23) Total Revenues Net Cash Provided by Operating Activities Free Cash Flow Operating Income Adjusted EBITDA Cash Dividends Per Share Common Shares Outstanding In millions, except per share $290 $65 $57 $64 $89 22¢ 9.4
Slide 6: Growth Algorithm
Growth Algorithm (as % of revenues TTM ended 6/30/23) High Gross Profit Margins 87% Fast Cash Conversion Cycles Low Cost of Occupancy 8% Low Maintenance Capex 3% High Free Cash Flow 20% Access to Bank & Seller Financing Acquire & Build More Clubs & Restaurants Revenue Mix Leads to High Gross Profit
Slide 7: Capital Allocation Strategy Guides Our Growth
Capital Allocation Strategy Guides Our Growth1 1) We may deviate from this strategy if other strategic rationale warrants • Repurchase shares when FCF yield is more than 10% • Develop critical mass, market awareness, and sell franchises • Structure investments in new units to generate annual cash on
Slide 8: Strategic Share Buybacks & Issuance
Strategic Share Buybacks & Issuance Fiscal Year Repurchased Shares Average Price Per Share Cumulative Shares Repurchased Cumulative Average Price Per Share Shares Used for Acquisitions Value Per Share Cumulative Shares Used for Acquisitions Cumulative Value of Shares Used in Acquisitions 2015 225,28
Slide 9: Some of Our Top Brands
Some of Our Top Brands 9 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
Slide 10: Well-Positioned in Attractive Markets
Well-Positioned in Attractive Markets 10 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
Slide 11: Casinos Leverage Our Expertise
Casinos Leverage Our Expertise Concept • Few casinos offer entertainment outside of Las Vegas and Atlantic City • Leverages our clubs and restaurants expertise Plan • Develop locations in Central City, CO • Rick’s Cabaret Steakhouse & Casino ( 0K sq ft) • Bombshells Sports Casino (20K sq ft) US Mark
Slide 12: The Rick's Casino Opportunity
The Rick’s Casino Opportunity1 The Investment • $2.4M for building and real estate • Approximately $9.0M anticipated to finish the location • Expect to feature 200 slot machines Our Math • Excluding casino, similar-sized RCI club generates $8-$10M annual revenue • Central City slots average $131/day
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 New Club • Fort Worth, TX • Remodeling in progress • Anticipate opening in FY24 Replacement Club • Lubbock, TX • Anticipate opening i
Slide 14: 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 Contact Information 14
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