Rci Hospitality Holdings, Inc. · NASDAQ:RICK
Rci Hospitality — Granite Conference Series 2022
14 slides from Rci Hospitality's conference presentation, Oct 12, 2022
Slide 1: Building a portfolio of well-managed, high cash-flowing nightclubs and restaurants
NASDAQ: RICK | Granite Conference Series | October 12-13, 2022 | www.rcihospitality.com Building a portfolio of well-managed, high cash-flowing nightclubs and restaurants
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: Executive Summary
Executive Summary What We Do What We Really Do Key to Our Success Key Business Feature Growth Opportunity Management Expertise Leader in the nightclub-bar- restaurant business Free cash flow per share compounder Disciplined capital allocation strategy Adult nightclub licensure moat Large runway to b
Slide 5: Strong Portfolio of Hospitality Venues
Strong Portfolio of Hospitality Venues Nightclubs • 52 clubs in 13 states (as of 9/30/22), many in top 20 US markets • Well-known brands with restaurants • 76% of revenues (as of TTM ended 6/30/22) Overview • Own and franchise 64 nightclubs and restaurants • Founded in 1983 • IPO on Nasdaq in 1995 G
Slide 6: Impressive Track Record Since Implementing Capital Allocation Strategy
10.41 10.23 9.74 9.72 9.66 9.20 9.01 FY15 FY16 FY17 FY18 FY19 FY20 FY21 Impressive Track Record Since Implementing Capital Allocation Strategy $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 FY
Slide 7: Capital Allocation Strategy
Capital Allocation Strategy* * 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 of at
Slide 8: Great Business Model
Great Business Model (TTM ended 6/30/22) Strong Cash Generation • High gross profit margin (86.1%) • Fast cash conversion cycle • Low maintenance capex ($3.7M) Nightclubs • High barriers to entry • Few municipalities issue new licenses Bombshells • Ultimate experience for casual dining, sports viewi
Slide 9: Nightclubs: Significant Acquisition Opportunities
Nightclubs: Significant Acquisition Opportunities Market • 2,200 clubs / ~500 meet our acquisition criteria • We are one of the largest, but our market share is minimal • Long-term owners interested in selling • We are the acquirer of choice Financial Dynamics • Buy earnings accretive clubs at 3-5x
Slide 10: Bombshells: Next Generation Sports Bar Concept
Bombshells: Next Generation Sports Bar Concept More Upscale • Better quality food, service and experience • Big HDTVs, scratch kitchen, free Wi-Fi, USB charging stations, DJs • 4 Dayparts: Lunch, happy hour, dinner, late night • Late night drives high AUVs and industry-leading margins 10 High Impact
Slide 11: Recent Performance ($M)
1% 12% 15% 20% 22% 15% 25% 17% 25% -13% 15% 23% 31% 35% 32% 29% 31% 35% 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 FCF Adj. EBITDA ($1.9) $4.4 $8.7 $13.6 $20.4 $17.6 $18.0 $19.9 $24.6 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 Recent Performance ($M) $14.8 $15.6 $17.0 $20.2 $29.1 $35.7 $18.0 $38
Slide 12: Progress Continues (4Q & Year Ended 9/30/22)
Progress Continues (4Q & Year Ended 9/30/22) 12 ($ in Millions) 4Q22 Total Sales Total Sales vs. 4Q21 Same-Store Sales vs. 4Q21* Combined $70.0 +28.8% -1.3% Nightclubs $56.1 +40.4% +3.2% Bombshells $13.9 -3.6% -13.3% ($ in Millions) FY22 Total Sales Total Sales vs. FY21 Same-Store Sales vs. FY21* Co
Slide 13: Highly Experienced Management
Highly Experienced Management 13 Eric Langan President & CEO Travis Reese Executive Vice President Bradley Chhay Chief Financial Officer Director since 1998, President & CEO since 1999, in the adult nightclub business since 1989 EVP and Director since 1999, also served as Director of Technology, cre
Slide 14: 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 14
RCI Hospitality Holdings — Granite Conference Series 2022 on 6ix