Rci Hospitality Holdings, Inc. · NASDAQ:RICK
Rci Hospitality — Ricks Cabaret International — Investor Presentation (December 2009)
17 slides from Rci Hospitality's investor presentation, Dec 3, 2009
Slide 1: Rick's Cabaret
Slide 2: Safe Harbor
SAFE HARBOR • 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. Actual r
Slide 3: Rick's Cabaret Overview
RICK’S CABARET OVERVIEW Rick’s Cabaret is the Premier Upscale Gentlemen’s Club Operator • 18 Clubs in Major Markets: New York City, Miami, Dallas-Ft. Worth, Philadelphia, Houston, Minneapolis, Las Vegas • Key Brand: Rick’s Cabaret • High Margins & Strong Cash Flow • Compound EBITDA Growth Last 5 Yea
Slide 4: Our Consolidation Story
• Much of Rick’s Growth Since 2005 has Been Through Acquisitions • NYC & Miami Clubs Are Our Home Runs • Cash On Hand and Demonstrated Ability to Raise Capital Are Powerful Tools • Leading Consolidation of $2B Gentlemen’s Club Industry • Seven Transactions in 2008-2009 OUR CONSOLIDATION STORY
Slide 5: The Tipping Point
Purchase of Midtown Manhattan Club in 2005 Brought Wall Street Attention to RICK Stock • Investment Pros See RICK First Hand …‘Due Diligence’ Parties Legendary • Club is Exceptionally Profitable> $12 mm+ Revenue Run-rate, High Margins, Strong Growth • Proximity to Madison Sq. Garden a Huge Plus • Da
Slide 6: Miami Club Acquisition
• Acquired Nov. ’07 for $25.5mm (2.2x EBITDA) • One of a kind: all nude with liquor ; open ‘til 6 am • 74,000 sq ft on two levels; valet parking for 1,500 cars; • Immediately accretive - highly profitable from day one; • Revenue Growth 25%+ over previous owner run rate by upgrading VIP services • Na
Slide 7: Rick's Cabaret Las Vegas
RICK’S CABARET LAS VEGAS • Acquired 25,000 sq. foot club, just off The Strip in September ‘08 • Marketing Initiatives , High Margin VIP Focus , Catering to Locals and Cost Controls are Having Positive Impact • Revenues Now Up and Will be Strong Contributor as Vegas Market Turns Around
Slide 8: Dallas/Ft. Worth Market: New Acquisitions in DFW
DALLAS/FT. WORTH MARKET NEW ACQUISITIONS IN DFW • XTC Cabaret - - Exceptional Club Near Sports Stadiums and hip Uptown Area • Club Onyx Dallas - - Has Become Top Upscale Club for African-American Clientele • Rick’s Ft. Worth - - Two-level Upscale Club on West Side Just off I-30. • Cabaret North - Ne
Slide 9: What Makes Rick's Unique?
WHAT MAKES RICK’S UNIQUE? • Strong Financial Controls > Proprietary Cash Management Similar to Casino Industry . Credit Cards = Half of our Sales • Entertainers > Independent Contractors Pay Us a Facilities Use Fee • “Concierge Hospitality” + Customer Service > Builds Loyalty, Repeat VIP Business •
Slide 10: Financial Summary
FINANCIAL SUMMARY Fiscal Year Financial Summary Revenues $13.9 $14.8 $24.5 $32.0 $59.9 44.2% y-o-y growth 7.0% 65.2% 30.7% 87.2% EBITDA 1.9 0.9 4.1 5.7 16.3 71.6% Margin % 13.5% 6.0% 16.8% 17.8% 27.1% Net Income 0.8 (0.2) 1.8 3.1 7.7 77.3% Margin % 5.6% (1.5%) 7.2% 9.5% 12.8% Number of Clubs
Slide 11: How We Make Money
HOW, WEIMAKE'MONEY, INTERNET - 077 ALCOHOL - 38.47% J menia 11% FOOD & MERCH - 7.97 OTHER = 3.47 SERVICE = 48.47,
Slide 12: Cash Flow & Liquidity Summary
CASH FLOW & LIQUIDITY SUMMARY • Rick’s Raised $7.2 mm in August through Convertible Debenture • Company’s Current Cash Position at about $13 mm • Strong Cash Flows Add to Liquidity
Slide 13: Our Debt Profile
OUR DEBT PROFILE • Real Estate Backed Loans: $15.3 mm, Will Be Retired by 2014 • Tootsie’s Cabaret Owner Purchase Note: $10mm @14% Due Nov. 2012 • Raised $7.2mm in August, Payable in Quarterly Payments at 10% over 3 Years; Will Retire by August 2012, or Convert at $8.75
Slide 14: Our Management Team
• IT executive, Director of Internet Division • Degree in Aeronautical Science OUR MANAGEMENT TEAM • CPA President / Owner Pringle Jenkins & Associates, P.C. • Degree in Business Administration Director Steven L. Jenkins Background Title Name • Noted First Amendment Attorney • Former President First
Slide 15: Our Long-Term Growth Strategy
OUR LONG-TERM GROWTH STRATEGY • Focus on core competency - - become top club in each market • Increase operating efficiency & raise gross margins • Leverage our strong marketing skills • Emphasize transparency, rigorous cash control • Build brand awareness/brand equity • Highly selective acquisition
Slide 16: Summary
SUMMARY • Attractive Industry > We Operate Top Clubs in Major Markets • Unique Business Model > Great Margins + Financial Controls • Growth from Rollup of Fragmented Industry > Big Pipeline of Targets …. • Non-Capital Intensive > Cash Flows Consistently Strong • Management > Depth + Experience
Slide 17: Thank You!
THANK YOU! PLEASE BE SURE TO VISIT RICK’S CABARET LOCATIONS FOR ADDITIONAL DUE DILIGENCE
Ricks Cabaret International — Investor Presentation (December 2009) on 6ix