Rci Hospitality Holdings, Inc. · NASDAQ:RICK
Rci Hospitality — Investor Presentation (October 2021)
18 slides from Rci Hospitality's investor presentation, Oct 12, 2021
Slide 1: RCI Hospitality Holdings Investor Presentation
cQ@2. RC| HOSPITALITY HOLDINGS INC. 25 j* Nasdaq 1995-2020 Building a portfolio of well-managed, high cash-flowing nightclubs and restaurants RCI HOSPITALITY HOLDINGS INC NASDAQ: RICK Investor Presentation October 12-13, 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 + Founded in 1983, IPO and Nasdaq listing in 1995 Overview + 37 clubs‘ — Many of the industry's best in top US markets + Segment % of annual revenues: 82% in FY19, 67% in FY20, 69% in 9M21 + Recently sign
Slide 5: Great Business
Great Business Total Revenues (FY20) Strong Cash Generation + High gross margin (86.2% in FY19, 85.3% in FY20, 84.4% in 9M21) Entertainment + Fast inventory turnover Services Alcoholic Beverages 9 45% + Low maintenance capex ($3.9M in FY19, $2.2M in FY20, $4.6 in 9M21) alee Barriers to Entry + Clubs
Slide 6: Capital Allocation Strategy
Capital Allocation Strategy* C) RCI HOSPITALITY HOLDINGS INC + Repurchase shares when FCF + Buy good, solid, cash | Drive Value id + Develop critical mass, yield is more than 10% Buy Back Shares M&A Organic Buy More Judiciously of the Right Expand Nightclubs Bombshells flowing clubs at 3-5x . market
Slide 7: Pre-2016 vs Today
Pre-2016 ; Changed Eliminated Today = Pee eS Disposed Approach Equity Highly Fopused on e g of Under- fo Club Financing’ [ff Scalable growing top Capital Fesiale. Performing Purchases & Used Cash Flow line, not Allocation Systems & FCF Strategy Branaeees Locations & New Debt Growth Bombshells Instea
Slide 8: Strong Track Record FY15-19 (Pre-Pandemic)
Strong Track Record FY15-19 (Pre-Pandemic) Free Cash Flow ($M)* $335 FCF as % of Revenues 18.4% $23.2 $193 S185 am ay 133% sue il ° FYI FY16 (adusted)2 FvI7 FYI8 Fy19 FvI5 FY16 (adjusted 2 ri Fie FYI Total Sales / Location ($k)? Diluted Weighted Average Shares Outstanding (M) $1,004 ana 1023 i L] :
Slide 9: Two-Year Progress
Two-Year Progress Nightclubs Revenues ($M) Bombshells Revenues ($M) $410 $155 $979 $379 sisi $13.0 $13.1 zara. 4at9. 1020» 2020 3020 4020 1021 20213021 3019 4a19 = 1020-2020 3020 4020 1a2t_ 2021 Free Cash Flow ($M) $130 Diluted Weighted Average Shares Outstanding (M) 9.62 9.62 sar 40191020 RCI HOSPI
Slide 10: 4Q21 & FY21 Nightclubs & Bombshells Sales
4Q21 & FY21 Nightclubs & Bombshells Sales + Record 4Q and annual combined club and restaurant sales in FY21 * Record 4Q21 and FY21 Florida club sales (+51.1% and +38.4% vs. 4Q19 and FY19, respectively) * Bombshells record annual sales in FY21 $ in Millions 4Q21 4Q21 vs. 4Q20| 4Q21 vs. 4Q19 Combined
Slide 11: Nightclubs: Significant Acquisition Opportunities
Nightclubs: Significant Acquisition Opportunities Market Our Top Club Brands + 2,000 clubs / ~500 meet our acquisition criteria + Weare one of the largest, but our market share is ~2-3% Elegant clubs with restaurants CABARET + Long-term owners interested in selling + Weare the acquirer of choice as
Slide 12: Bombshells: Growth Plan
Bombshells: Growth Plan Upscale Sports Bar + Better quality food, service, entertaining 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 charging stations,
Slide 13: AdmireMe
AdmireMe RCI HOSPITALITY HOLDINGS INC Social media platform Enables “creators” to post content and receive payment from their "admirers" Comparable to OnlyFans Total upfront investment about $500K Looking at FY22 launch www.admireme.com 13
Slide 14: Upcoming priorities: acquisitions, Bombshells, AdmireMe launch
Close and integrate club acquisitions: Will expand unit count by +30% Reopen two existing clubs being rebuilt or reformatted Open two new Bombshells (one company-owned, one franchised) to expand our locations by 20% Solidify plans to open three more Bombshells (two company- owned, one franchised) La
Slide 15: Appendix
RCI HOSPITALITY HOLDINGS INC Appendix NASDAQ: RICK Investor Presentation October 12-13, 2021 www.rcihospitality.com
Slide 16: Record Setting Performance
Record Setting Performance In 3Q21 Achieved Record Levels in 8 of 13 Key Indicators ($ in millions, except EPS) Revenue" Consolidated $47.0 $10.8 23.0% $14.7 $43.1 293.0% Nightclubs $37.9 $3.1 8.3% $6.0 $35.0 582.4% Bombshells $8.8 $7.3 83.6% $8.5 $7.5 88.5% Income (loss) from Operations Consolidate
Slide 17: Non-GAAP Reconciliations
Non-GAAP Reconciliations* Reconciliation of GAAP diluted earnings (loss) per share to non-GAAP diluted earnings per share 921 FY20 FY19 Diluted shares (in 000s) 9,006 9,199 9,657 GAAP diluted earnings (loss) per share $ 311 § (0.66) $ 210 Amortization of intangibles 0.02 0.07 0.06 Settlement of laws
Slide 18: 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 Cl HOSPITALITY \OLDINGS INC 18
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