Rci Hospitality Holdings, Inc. · NASDAQ:RICK
Rci Hospitality — Ricks Cabaret International — Investor Presentation (June 2009)
16 slides from Rci Hospitality's investor presentation, Jun 9, 2009
Slide 1: Rick's Cabaret
Slide 2: Safe Harbor
SAFE HARBOR • This presentation may contain forward-looking statements that are covered under the provisions of Section 27A of the Securities Act of 1933 regarding Safe Harbor statements. Forward-looking statements may involve revenue, income and other business activities of Rick's Cabaret. Actual r
Slide 3: Rick's Cabaret Overview
RICK’S CABARET OVERVIEW • Rick’s Cabaret is the Premier Operator of Upscale Gentlemen’s Clubs - 18 Clubs Nationwide • Key Brand: Rick’s Cabaret - Upscale (7) • Owns other brands serving specific audiences: - Club Onyx - Upscale African-American (4) - XTC Cabaret - Blue-collar/College (5) - Tootsie’s
Slide 4: 'RICK' Snapshot
‘RICK’ SNAPSHOT Market NASDAQ Global Shares Outstanding 9.3M Share Price Increase Since Jan 1: 69% P/E TTM 4.01 Institutional Ownership 17.2% Insider Ownership 16.7%
Slide 5: Rick's Financial Summary
RICK’S Financial Summary Financial Summary Revenues $13.9 $14.8 $24.5 $32.0 $59.9 44.2% y-o-y growth 7.0% 65.2% 30.7% 87.2% EBITDA 1.9 0.9 4.1 5.7 16.3 71.6% Margin % 13.5% 6.0% 16.8% 17.8% 27.1% Net Income 0.8 (0.2) 1.8 3.1 7.7 77.3% Margin % 5.6% (1.5%) 7.2% 9.5% 12.8% Number of Clubs
Slide 6: Strong Operational Base
STRONG OPERATIONAL BASE • Financial Controls > System-wide proprietary cash management modelled on casino industry • Credit Cards > Make Up significant portion of our sales • Entertainers > Are Independent Contractors who pay us a facilities use fee • Quality Control > Enhances brand value • Casino
Slide 7: How We Make Money
HOW, WEIMAKE'MONEY, INTERNET - 1.17% ALCOHOL - 37.57%. FOOD & MERCH - 8.47%: SERVICE - 4875
Slide 8: The Rick's Roll Up Story
• Much of Rick’s Growth in Past 5 Years has been through Acquisitions • Entry Into Major New Markets (NYC, Miami, Las Vegas, Philadelphia, Dallas) • NYC & Miami Clubs Are Our Home Runs • Improving Las Vegas Is Current Focus of Our Attention • Consolidation of $2B Gentlemen’s Club Industry Will Resum
Slide 9: Our First Big Buy: Midtown Manhattan Club
• Acquired Midtown Manhattan Club in 2005 - We are Now #1 Club in the City • Brought Wall Street Attention to RICK Stock • Investment Pros Got to See First Hand How Our Business Model Works • ‘Due Diligence’ Parties Becoming Legendary - Proximity to M.S.G. a Huge Plus • Club is Exceptionally Profita
Slide 10: Acquired November 2007 Club
• Acquired Nov. ‘07; 74 ,000 sq ft on two levels, parking for 1,500 cars ; • One of a kind - open to 6 am daily - all nude with liquor ; • Transaction value: $25.5mm (2.2x EBITDA) • Immediately accretive - Highly Profitable from Day One; • Revenue Growth 25%+ over Previous Owner Is Result of Caterin
Slide 11: Positive Developments (Las Vegas)
Positive Developments • Acquired 25,000 sq. foot club, just off The Strip in September ‘08 • Vegas Economy plunged immediately after our acquisition • Positive Impact of New Marketing Initiatives, High Margin VIP Focus , Catering to Locals and Cost controls are Having Impact • Will be Strong Contrib
Slide 12: Dallas, Philly Conversions
Dallas,Philly Conversions WE HAVE ADDRESSED CHALLENGES OF NEW ACQUISITIONS IN PHILLY & DALLAS • Rick’s Philadelphia Converted to Club Onyx - Near All Pro Sports Stadiums ( Phillies , 76ers , Eagles , Flyers ) • Rick’s Dallas Converted to XTC Cabaret - Exceptional Club Near Sports Stadiums and hip Up
Slide 13: Our Long-Term Growth Strategy
OUR LONGTERM GROWTH STRATEGY • Focus on core competency - become top club in each market • Increase operating efficiency & raise gross margins • Leverage our strong marketing skills • Emphasize transparency, rigorous cash control • Build brand awareness/brand equity • Maintain lean operating system
Slide 14: Our Management Team
• IT executive, Director of Internet Division • Degree in Aeronautical Science from Texas State Technical College OUR MANAGEMENT TEAM • President, owner, and CPA of Pringle Jenkins & Associates, P.C. • BBA Degree (1979) from Texas A&M University Director Steven L. Jenkins Background Title Name • Not
Slide 15: Summary
SUMMARY • Attractive Industry > Big Clubs Thriving in Recession • Unique Business Model > Great Margins + Strong Financial Controls • Non-Capital Intensive > Strong Cash Flow • Significant Barriers to Entry Limit Competition * Strict Zoning Ordinances & * Tough Sexually Oriented Business (SOB) Licen
Slide 16: Thank You!
THANK YOU! PLEASE BE SURE TO ATTEND THE DUE DILIGENCE EVENT AT TOOTSIE’S CABARET TONIGHT, JUNE 9, 2009 .
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