Rci Hospitality Holdings, Inc. · NASDAQ:RICK
Rci Hospitality — Q2 2025 Earnings Presentation
26 slides from Rci Hospitality's earnings presentation, May 12, 2025
Slide 1: Building a portfolio of well-managed, high cash-flowing nightclubs and sports-bar restaurants
Building a portfolio of well-managed, high cash-flowing nightclubs and sports-bar restaurants NASDAQ: RICK | 2Q25 Conference Call | May 12, 2025 | www.rcihospitality.com | @RCIHHinc
Slide 2: Today's Speakers
Today’s Speakers Eric Langan Bradley Chhay Mark Moran President & CEO Chief Financial Officer CEO RCI Hospitality Holdings, Inc. RCI Hospitality Holdings, Inc. Equity Animal @RicksCEO @BradleyChhay @itsmarkmoran 2
Slide 3: X Spaces Instructions
X Spaces Instructions • Log in to: X (formerly Twitter) • Select this X Space: https://x.com/i/spaces/1djGXVvkXgkxZ Or • To ask a question during Q&A: You will need to join the Space with a mobile phone • To listen only: You can join the Space with a personal computer 3
Slide 4: 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 5: 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 6: Key Takeaways
Key Takeaways • Revenues: Primarily reflected sale/divestiture of five underperforming Bombshells segment locations and 2Q25 effect of severe January-February weather on SSS, partially offset improving trends in March Results (YoY) • Profitability: Primarily reflected lower SSS, lower costs from sal
Slide 7: Summary Results
Summary Results In Millions, Except EPS 2Q25 2Q24 6M25 6M24 Total revenues $65.9 $72.3 $137.4 $146.2 EPS $0.36 $0.08 $1.38 $0.85 Non-GAAP EPS1 $0.65 $0.90 $1.46 $1.76 Impairments and other charges (gains), net $2.1 $8.2 $(0.1) $8.2 Net cash provided by operating activities $8.5 $10.8 $21.9 $24.5 Fre
Slide 8: Nightclubs Segment
Nightclubs Segment Total Revenues ($M) Operating Margin As % of Segment Revenues $62.4 $62.8 GAAP Non-GAAP $60.9 $61.0 $61.7 $60.6 $59.4 50% $57.0 $57.5 40% 30% 20% 10% 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 2Q25 vs. 2Q24 ($M) Locations Contributing
Slide 9: Bombshells Segment
Bombshells Segment Total Revenues ($M) Operating Margin As % of Segment Revenues GAAP Non-GAAP $14.3 $14.4 50% $13.6 $13.1 $12.7 $12.8 $11.9 25% $9.6 $8.2 —% (25)% (50)% (75)% 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 2Q25 vs. 2Q24 ($M) Locations Contr
Slide 10: Corporate Segment
Corporate Segment Expense ($M) Expense Margin As % of Total Revenues GAAP Non-GAAP GAAP Non-GAAP 14% $8.8 $7.1 $7.2 $7.1 $8.4 $6.8 $6.8 12% $6.2 $6.3 $6.6 $6.6 $5.5 $6.3 $6.3 $6.3 $5.8 $5.5 $5.4 10% 8% 6% 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 2Q25
Slide 11: GAAP Disclosure ($M)
GAAP Disclosure ($M) Quarter 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 Operating income (loss) $13.4 $15.5 $5.6 $13.2 $4.7 $(2.5) $3.5 $13.9 $8.2 Net cash provided by operating activities $16.8 $15.3 $12.1 $13.6 $10.8 $15.8 $15.7 $13.3 $8.5 Net income (loss) $7.7 $9.1 $2.2 $7.2 $0.8 $(5.2) $0.2 $
Slide 12: Cash, FCF & Adjusted EBITDA ($M)
Cash, FCF & Adjusted EBITDA ($M) Cash As % of Total Revenues $34.9 $34.7 Adj. EBITDA Margin FCF Margin $32.4 $32.7 30% 29% 27% $23.6 26% $22.8 24% 24% 24% $21.0 $21.2 $20.0 21% 22% 22% 19% 18% 18% 17% 17% 15% 12% 11% 3/31/23 6/30/23 9/30/23 12/31/23 3/31/24 6/30/24 9/30/24 12/31/24 3/31/25 2Q23 3Q23
Slide 13: Debt Metrics
Debt Metrics Debt, Net of Loan Costs ($M) Debt Maturities at 3/31/25 ($M) Amortization Schedule Non-Realty Balloon Realty Balloon $245.8 $243.8 $239.8 $245.4 $238.2 $241.5 $234.1 $231.9 $235.5 $5.7 $9.1 $5.5 $2.3 $4.4 $14.8 $15.4 $15.6 $15.7 $8.5 3/31/23 6/30/23 9/30/23 12/31/23 3/31/24 6/30/24 9/30
Slide 14: Capital Allocation Strategy
Capital Allocation Strategy Notes Share • Targeted % Buybacks: annual use of ~40% FCF FY25-29 • Strategy excludes completion of club and restaurant Share projects already Buybacks, Club in development Debt • We may deviate Acquisitions Reduction, from this ~40% strategy if other Dividends strategic
Slide 15: Our 5-Year Plan Summary
Our 5-Year Plan Summary* • Nightclubs – focus on core business operations and new acquisitions Operations • Bombshells – improve performance and finish units currently under development • We expect to generate $250M+ of cumulative FCF over the next 5 years Capital – 40% of FCF allocated to club acqu
Slide 16: Strategic Share Buybacks & Issuance
Strategic Share Buybacks & Issuance Cumulative Value of Shares Repurchased Average Price Shares Used for Fiscal Year Shares Value Per Share Used for Shares Per Share Acquisitions Repurchased Acquisitions 2015 225,280 $10.19 225,280 2016 747,081 $9.79 972,361 2017 89,685 $12.25 1,062,046 2018 -- -- 2
Slide 17: Development Update
Development Update Project Location Status Bombshells (new) Denver, CO Opened January 2025 Chicas Locas (rebrand/reformat) El Paso, TX Opened March 2025 Bombshells (new) Lubbock, TX Target opening late May-early June 2025 Rick’s Cabaret & Steakhouse (new) Central City, CO Target opening early June 2
Slide 18: Appendix
RCI HOSPITALITY HOLDINGS INC Appendix
Slide 19: Long-Term Performance
Long-Term Performance Fiscal Year ($M) 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 9-Year CAGR Total revenues $135.4 $134.9 $144.9 $165.7 $181.1 $132.3 $195.3 $267.6 $293.8 $295.6 9.1% Adjusted EBITDA $34.1 $34.5 $37.3 $44.4 $46.2 $22.4 $60.2 $86.7 $85.0 $72.6 8.8% % of revenues 25.2% 25.6% 25
Slide 20: Debt Analysis
Debt Analysis (at 3/31/25, $M) Total of $244.1* Weighted Average Interest Rate (WAIR): 6.67% $66.0 Seller Financing (27.0% of total) • Secured by the respective clubs and real estate to which it applies • 5 Baby Dolls-Chicas Locas: $17.5 @ 7% WAIR • 11 Clubs: $16.2 @ 6% WAIR $152.5 Secured by Real E
Slide 21: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures (in thousands) For the Three Months Ended For the Six Months Ended March 31, 2025 March 31, 2024 March 31, 2025 March 31, 2024 Reconciliation of GAAP net income to Adjusted EBITDA Net income attributable to RCIHH common stockholders $ 3,231 $ 774 $ 12,255 $ 8,000
Slide 22: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures (in thousands, except per share and number of shares data) For the Three Months Ended For the Six Months Ended March 31, 2025 March 31, 2024 March 31, 2025 March 31, 2024 Reconciliation of GAAP diluted earnings per share to non-GAAP diluted earnings per share Dilu
Slide 23: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures (in thousands, except percentage data) For the Three Months Ended For the Six Months Ended March 31, 2025 March 31, 2024 March 31, 2025 March 31, 2024 Reconciliation of GAAP operating margin to non-GAAP operating margin GAAP operating margin 12.4 % 6.4 % 16.1 % 12
Slide 24: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures ($ in thousands) For the Three Months Ended March 31, 2025 Nightclubs Bombshells Other Corporate Total Income (loss) from operations $ 14,603 $ (227) $ (680) $ (5,525) $ 8,171 Amortization of intangibles 572 1 — 4 577 Impairment of assets 1,780 — — — 1,780 Settlem
Slide 25: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures ($ in thousands) For the Three Months Ended March 31, 2024 Nightclubs Bombshells Other Corporate Total Income (loss) from operations $ 11,021 $ 699 $ (277) $ (6,786) $ 4,657 Amortization of intangibles 589 47 — 4 640 Impairment of assets 8,033 — — — 8,033 Settleme
Slide 26: Contact Information
Contact Information Corporate Office 10737 Cutten Road Houston, TX 77066 Phone: (281) 397-6730 Investor Relations Gary Fishman (gfishman@pondel.com) Michael Wichman (mwichman@pondel.com) Phone: 212-883-0655 IR Website www.rcihospitality.com Nasdaq: RICK 26
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