Rci Hospitality Holdings, Inc. · NASDAQ:RICK
Rci Hospitality — Q3 2025 Earnings Presentation
26 slides from Rci Hospitality's earnings presentation, Aug 11, 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 | 3Q25 Conference Call | August 11, 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/1OdJrDOQobXKX 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 • Nightclubs: Revenues nearly level despite tariff and tax bill related economic uncertainty 3Q25 Results • Bombshells: Revenues reflected sale/divestiture of five underperformers, but increased from 2Q25 (YoY) • Profitability: Primarily benefited from absence of impairment charges par
Slide 7: Summary Results
Summary Results In Millions, Except EPS 3Q25 3Q24 9M25 9M24 Total revenues $71.1 $76.2 $208.5 $222.4 EPS $0.46 $(0.56) $1.84 $0.30 Non-GAAP EPS1 $0.77 $1.35 $2.23 $3.11 Impairments and other charges, net $2.3 $18.3 $2.2 $26.5 Net cash provided by operating activities $13.8 $15.8 $35.7 $40.2 Free cas
Slide 8: Nightclubs Segment
Nightclubs Segment Total Revenues ($M) Operating Margin As % of Segment Revenues $62.4 $62.8 $62.3 GAAP Non-GAAP $60.9 $61.0 $61.7 $60.6 $59.4 40% $57.5 30% 20% 10% 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 3Q25 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 3Q25 3Q25 vs. 3Q24 ($M) Locations Contributing to
Slide 9: Bombshells Segment
Bombshells Segment Total Revenues ($M) Operating Margin As % of Segment Revenues GAAP Non-GAAP $14.4 50% $13.6 $13.1 $12.7 $12.8 $11.9 25% $9.6 $8.2 $8.6 —% (25)% (50)% (75)% 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 3Q25 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 3Q25 3Q25 vs. 3Q24 ($M) Locations Contri
Slide 10: Corporate Segment
Corporate Segment Expense ($M) Expense Margin As % of Total Revenues GAAP Non-GAAP GAAP Non-GAAP 14% $8.8 $8.7 $7.1 $7.2 $7.1 $8.4 $8.3 $6.8 $6.8 12% $6.3 $6.6 $6.4 $6.6 $5.5 $6.3 $6.3 $5.8 $5.4 10% 8% 6% 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 3Q25 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 3Q25 3Q25
Slide 11: GAAP Disclosure ($M)
GAAP Disclosure ($M) Quarter 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 3Q25 Operating income (loss) $15.5 $5.6 $13.2 $4.7 $(2.5) $3.5 $13.9 $8.2 $8.7 Net cash provided by operating activities $15.3 $12.1 $13.6 $10.8 $15.8 $15.7 $13.3 $8.5 $13.8 Net income (loss) $9.1 $2.2 $7.2 $0.8 $(5.2) $0.2 $9.0 $3
Slide 12: Cash, FCF & Adjusted EBITDA ($M)
Cash, FCF & Adjusted EBITDA ($M) Cash As % of Total Revenues $34.9 $34.7 Adj. EBITDA Margin FCF Margin $32.4 $32.7 29% 27% $29.3 26% 24% 24% 24% $23.6 22% 22% 22% $21.0 $21.2 $20.0 19% 19% 18% 18% 17% 17% 15% 12% 11% 6/30/23 9/30/23 12/31/23 3/31/24 6/30/24 9/30/24 12/31/24 3/31/25 6/30/25 3Q23 4Q23
Slide 13: Debt Metrics
Debt Metrics Debt, Net of Loan Costs ($M) Debt Maturities at 6/30/25 ($M) Amortization Schedule Non-Realty Balloon Realty Balloon $243.8 $239.8 $245.4 $238.2 $241.5 $241.3 $234.1 $231.9 $235.5 $5.7 $13.4 $5.5 $2.3 $15.6 $16.2 $16.5 $16.6 $7.5 6/30/23 9/30/23 12/31/23 3/31/24 6/30/24 9/30/24 12/31/24
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 the remaining unit under development • We expect to generate $250M+ of cumulative FCF over the next 5 years Capital – 40% of FCF allocated to club a
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 $12.25 1,062,046 2018 -- -- 2
Slide 17: Development Update
Development Update Project Location Status Bombshells (new) Rowlett, TX Target opening summer 2025 Baby Dolls (new) West Fort Worth, TX Awaiting construction permits Plan to rebuild following July 2024 fire Baby Dolls (rebuild) Fort Worth, TX Awaiting engineering review of plans 17
Slide 18: Appendix
RCI HOSPITALITY HOLDINGS INC Appendix
Slide 19: Long-Term Performance
Long-Term Performance Fiscal Year ($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 (at 06/30/25, $M)
Debt Analysis (at 06/30/25, $M) Total of $243.8* Weighted Average Interest Rate (WAIR): 6.68% $67.3 Seller Financing (27.6% of total) • Secured by the respective clubs and real estate to which it applies • 5 Baby Dolls-Chicas Locas: $17.1 @ 7.0% WAIR • 11 Clubs: $15.9 @ 6.0% WAIR $151.7 Secured by R
Slide 21: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures (in thousands) Three Months Ended Nine Months Ended June 30, 2025 June 30, 2024 June 30, 2025 June 30, 2024 Reconciliation of GAAP net income (loss) to Adjusted EBITDA Net income (loss) attributable to RCIHH common stockholders $ 4,058 $ (5,233) $ 16,313 $ 2,767 I
Slide 22: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures (in thousands, except per share and number of shares data) Three Months Ended Nine Months Ended June 30, 2025 June 30, 2024 June 30, 2025 June 30, 2024 Reconciliation of GAAP diluted earnings (loss) per share to non-GAAP diluted earnings per share Diluted shares 8
Slide 23: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures (in thousands, except percentage data) Three Months Ended Nine Months Ended June 30, 2025 June 30, 2024 June 30, 2025 June 30, 2024 Reconciliation of GAAP operating margin to non-GAAP operating margin GAAP operating margin 12.2 % (3.3)% 14.8 % 6.9 % Amortization o
Slide 24: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures ($ in thousands) Three Months Ended June 30, 2025 Nightclubs Bombshells Other Corporate Total Income (loss) from operations $ 17,761 $ 87 $ (441) $ (8,694) $ 8,713 Amortization of intangibles 572 1 — 3 576 Settlement of lawsuits 3,281 — — — 3,281 Stock-based compe
Slide 25: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures ($ in thousands) Three Months Ended June 30, 2024 Nightclubs Bombshells Other Corporate Total Income (loss) from operations $ 13,640 $ (8,914) $ (108) $ (7,154) $ (2,536) Amortization of intangibles 578 16 — 4 598 Impairment of assets 7,619 10,312 — — 17,931 Settl
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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