Rci Hospitality Holdings, Inc. · NASDAQ:RICK
Rci Hospitality — Granite Conference Series July 2022
12 slides from Rci Hospitality's conference presentation, Jul 13, 2022
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 Granite Conference Series July 13-14, 2022 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: Strong Portfolio of Hospitality Venues
Strong Portfolio of Hospitality Venues Nightclubs • 74% of revenue for TTM ended 3/31/22 • 49 clubs in 13 states, many in top 20 US markets • Well-known brands with restaurants Overview • Own and franchise 61 nightclubs and restaurants • Founded in 1983 • IPO on Nasdaq in 1995 Growth Drivers • Consu
Slide 5: Great Business Model
Great Business Model Strong Cash Generation (TTM ended 3/31/22) • High gross profit margin (85.4%) • Fast cash conversion cycle • Low maintenance capex ($4.8M) Nightclubs • High barriers to entry • Few municipalities issue new licenses Bombshells • Ultimate experience for casual dining, sports viewi
Slide 6: Capital Allocation Strategy Is Key
Capital Allocation Strategy Is Key* * We may deviate from this strategy if other strategic rationale warrants • Repurchase shares when FCF yield is more than 10% • Develop critical mass, market awareness, and sell franchises • Structure investments in new units to generate annual cash on cash return
Slide 7: Impressive Track Record
10.41 10.23 9.74 9.72 9.66 9.20 9.01 FY15 FY16 FY17 FY18 FY19 FY20 FY21 Impressive Track Record $14.9 $18.5 $19.3 $23.2 $33.3 $13.5 $36.1 FY15 FY16 FY17 FY18 FY19 FY20 FY21 Free Cash Flow ($M)1 11.0% 13.7% 13.3% 14.0% 18.4% 10.2% 18.5% FY15 FY16 FY17 FY18 FY19 FY20 FY21 FCF as % of Revenues1 Diluted
Slide 8: Nightclubs: Significant Acquisition Opportunities
Nightclubs: Significant Acquisition Opportunities Market • 2,200 clubs / ~500 meet our acquisition criteria • We are one of the largest, but our market share is minimal • Long-term owners interested in selling • We are the acquirer of choice Financial Dynamics • Buy earnings accretive clubs at 3-5x
Slide 9: Bombshells: Next Generation Sports Bar Concept
Bombshells: Next Generation Sports Bar Concept More Upscale • Better quality food, service and experience • Big HDTVs, scratch kitchen, free Wi-Fi, USB charging stations, DJs • 4 Dayparts: Lunch, happy hour, dinner, late night • Late night drives high AUVs and industry-leading margins 9 High Impact
Slide 10: Recent Cash, FCF & Adjusted EBITDA Performance
2% 1% 12% 15% 20% 22% 15% 25% 17% 20% -13% 15% 23% 31% 35% 32% 29% 31% 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 FCF Adj. EBITDA $8.0 ($1.9) $4.4 $8.7 $13.6 $20.4 $17.6 $18.0 $19.9 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 Recent Cash, FCF & Adjusted EBITDA Performance ($M) $9.8 $14.8 $15.6 $1
Slide 11: Progress Continues (3Q & 9M Ended 6/30/22)
Progress Continues (3Q & 9M Ended 6/30/22) 11 ($ in Millions) 3Q22 Total Sales Total Sales vs. 3Q21 Same-Store Sales vs. 3Q21* Combined $70.1 +23.7% -0.1% Nightclubs $54.3 +33.8% +4.8% Bombshells $15.8 -1.9% -12.3% ($ in Millions) 9M22 Total Sales Total Sales vs. 9Q21 Same-Store Sales vs. 9M21* Comb
Slide 12: 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 Contact Information
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