RCI Hospitality Holdings, Inc. · NASDAQ:RICK
RCI Hospitality — Investor Presentation (August 2021)
17 slides from RCI Hospitality's investor presentation, Aug 19, 2021
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 Investor Presentation August 19, 2021 www.rcihospitality.com
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: What We Do
What We Do • Building a portfolio of well-managed, high cash-flowing nightclubs and restaurants Overview • Founded 1983, IPO and Nasdaq listing in 1995 • 38 clubs – Many of the industry’s best in top US markets Nightclubs • Segment % of annual revenues: 82% in FY19, 67% in FY20, 69% in 9M21 • Recent
Slide 5: Great Business
Great Business Strong Cash Generation Total Revenues (FY20) • High gross profit margin (86.2% in FY19, 85.3% in FY20, 84.4% in 9M21) • Fast inventory turnover Entertainment Alcoholic Services Beverages • Low maintenance capex ($3.9M in FY19, $2.2M in FY20, $4.6 in 9M21) 31% 45% Clubs: Barriers to En
Slide 6: Capital Allocation Strategy
Capital Allocation Strategy* • Repurchase shares when FCF yield is more than 10% Buy Back Shares M&A Organic Buy More Judiciously of the Right Expand Nightclubs Bombshells • Buy good, solid, cash Drive Value • Develop critical mass, flowing clubs at 3-5x market awareness, adjusted EBITDA with 10-15%
Slide 7: Major Transformation
Major Transformation Pre-2016 Changed Defined & Invested Eliminated Today Disposed Approach Focused on Adopted in the Right Equity of Under- to Club Cash Flow growing top Capital People, Financing & Performing Purchases Growth line, not Allocation Systems & Used Debt Locations & New Machine FCF Stra
Slide 8: Strong Track Record FY15-19 (Pre-Pandemic)
Strong Track Record FY15-19 (Pre-Pandemic) $33.3 Free Cash Flow ($M)1 FCF as % of Revenues 18.4% $23.2 $19.3 $18.5 14.0% 13.7% 13.3% $14.9 11.0% FY15 FY16 (adjusted)2 FY17 FY18 FY19 FY15 FY16 (adjusted)2 FY17 FY18 FY19 Total Sales / Location ($K)3 Diluted Weighted Average Shares Outstanding (M) 10.4
Slide 9: Two-Year Progress
Two-Year Progress Nightclubs Revenues ($M) Bombshells Revenues ($M) $16.1 $41.0 $15.5 $37.9 $37.9 $35.9 $13.0 $13.1 $31.4 $30.8 $10.4 $25.2 $8.8 $8.5 $8.8 $8.5 $13.1 $6.0 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 Free Cash Flow ($M) $13.0 Diluted Weigh
Slide 10: Nightclubs: Significant Acquisition Opportunities
Nightclubs: Significant Acquisition Opportunities Market Our Top Club Brands • 2,200 clubs / ~500 meet our acquisition criteria • We are one of the largest, but our market share is ~2% Elegant clubs with restaurants • Long-term owners interested in selling • We are the acquirer of choice as the only
Slide 11: Bombshells: Why It's Working
Bombshells: Why It’s Working Upscale Sports Bar Entertainment Experience • Better quality food, service and experience • Appeals to men, women, families, friends, singles, couples, millennials • Large venues: ~8K sq. ft. inside + ~2K sq. ft. patio outside • Big HDTVs, scratch kitchen, free Wi-Fi, US
Slide 12: AdmireMe
AdmireMe • Social media platform • Enables “creators” to post content and receive payment from their "admirers" • Comparable to OnlyFans • Looking at FY 2022 launch www.admireme.com 12
Slide 13: Key Takeaways
Key Takeaways 1. Proven capital allocator and FCF compounder 2. FY21 performance to date has rebounded across the board 3. Positioned to roll up the multibillion-dollar adult nightclub industry 4. Fast growing sports bar/restaurant concept in Bombshells 5. Substantial insider ownership 13
Slide 14: Appendix
Appendix NASDAQ: RICK Investor Presentation August 19, 2021 www.rcihospitality.com
Slide 15: Record Setting Performance
Record Setting Performance In 3Q21 Achieved Record Levels in 8 of 13 Key Indicators Total 3Q21 vs. 3Q19 Change Total 3Q21 vs. 3Q20 Change Record All-Time High ($ in millions, except EPS) 3Q21 3Q19 $ % 3Q20 $ % Period Amount Revenue Consolidated $57.9 $47.0 $10.8 23.0% $14.7 $43.1 293.0% 3Q21 $57.9 N
Slide 16: Non-GAAP Reconciliations
Non-GAAP Reconciliations* Reconciliation of GAAP diluted earnings (loss) per share to non-GAAP diluted earnings per share 9M21 FY20 FY19 Diluted shares (in 000s) 9,006 9,199 9,657 GAAP diluted earnings (loss) per share $ 3.11 $ (0.66) $ 2.10 Amortization of intangibles 0.02 0.07 0.06 Settlement of l
Slide 17: 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 17
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