RCI Hospitality Holdings, Inc. · NASDAQ:RICK
RCI Hospitality — LD Micro Presentation 2021
14 slides from RCI Hospitality's conference presentation, Jun 8, 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 LD Micro Presentation June 8, 2021 www.rcihospitality.com
Slide 2: Forward-Looking Statements
Forward-Looking Statements This document 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 underlyin
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 • Major brands: Rick’s, Tootsie’s, Scarlett’s, XTC, Jaguars, Club Onyx • % of
Slide 5: Great Business
Great Business Strong Cash Generation Total Revenues (FY20) • High gross profit margin (86.2% in FY19, 85.3% in FY20, 84.2% in 6M21) • Fast inventory turnover Entertainment Alcoholic Services Beverages • Low maintenance capex ($3.9M in FY19, $2.2M in FY20, $2.6 in 6M21) 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 • Structure investments flowing clubs at 3-5x in new units to adjusted EBITDA with 10-15% ge
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: Progress Through COVID-19
Progress Through COVID-19 Nightclubs Revenues ($M) Bombshells Revenues ($M) $15.5 3Q21 Sales Update $37.9 $37.9 $35.9 $13.0 $13.1 • April: Club and $31.4 $30.8 restaurant sales $10.4 only slightly below $25.2 $8.8 $8.5 $8.8 $8.5 March • May: Set record for highest monthly $13.1 club and restaurant s
Slide 10: Bombshells: Why It's Working
Bombshells: Why It’s Working More Upscale Than Traditional Sports Bars • 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, USB
Slide 11: 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 onl
Slide 12: Key Takeaways
Key Takeaways Overview • Capital allocation / FCF strategy proven effective • Positive net cash from operating activities and FCF during COVID • Refinancing of real estate debt expected to increase FCF Bombshells • Concept proven to work even through COVID • Plans to double number of owned locations
Slide 13: Non-GAAP Reconciliations
Non-GAAP Reconciliations* Reconciliation of GAAP diluted earnings (loss) per share to non-GAAP diluted earnings per share 6M21 FY20 FY19 Diluted shares (in 000s) 9,010 9,199 9,657 GAAP diluted earnings (loss) per share $ 1.75 $ (0.66) $ 2.10 Amortization of intangibles 0.02 0.07 0.06 Settlement of l
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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