Rci Hospitality Holdings, Inc. · NASDAQ:RICK
Rci Hospitality — Q1 2021 Earnings Presentation
14 slides from Rci Hospitality's earnings presentation, Feb 9, 2021
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 1Q21 Conference Call February 9, 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: Today’s News
Today’s News • Best performance since the pandemic began • Total revenues of $38.4M, up 33% from 4Q20 1Q21 • GAAP EPS of $1.07 and non-GAAP EPS of $0.39 Highlights • Weighted average shares outstanding declined 3.3% year-over-year • $17.0M cash at December 31, 2020 • Net cash from operating activiti
Slide 5: Nightclubs Segment
Nightclubs Segment Revenues ($M) Operating Margin As % of Total Revenues $37.0 $37.9 $37.9 60% GAAP Non-GAAP $35.9 $31.4 40% $25.2 20% 0% $13.1 -20% $6.0 -40% -60% 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 1Q21 vs. 4Q20 Period Location Status • Continued rebound
Slide 6: Bombshells Segment
Bombshells Segment Revenues ($M) $15.5 Operating Margin As % of Total Revenues $13.0 36% GAAP Non-GAAP $10.4 30% $8.8 $8.5 $8.8 $8.5 24% $7.5 18% 12% 6% 0% 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 1Q21 vs. 1Q20 Period Location Status 2Q19 8th store opened March
Slide 7: Analysis of 1Q21 Statement of Operations
Analysis of 1Q21 Statement of Operations Item Comment (Comps are YoY) Explanation Cost of Goods Sold 16.2% of revenues vs. 14.0% • Higher food and lower service revenues in sales mix Salaries and Wages 29.9% of revenues vs. 27.3% • Impact of fixed salaries compared to lower revenues • Cost-savings i
Slide 8: Cash, FCF & Balance Sheet Trends ($M)
Cash, FCF & Balance Sheet Trends ($M) Cash $17.0 Debt $15.6 $14.8 $14.1 $149.8 $13.2 $146.6 $11.0 $143.5 $142.7 $9.8 $141.8 $141.4 $140.4 $8.3 $134.8 3/31/19 6/30/19 9/30/19 12/31/19 3/31/20 6/30/20 9/30/20 12/31/21 3/31/19 6/30/19 9/30/19 12/31/19 3/31/20 6/30/20 9/30/20 12/31/20 Free Cash Flow Cur
Slide 9: Debt (as of 12/31/20, $ in millions)
Debt (as of 12/31/20, $ in millions) Total of $136.0* Weighted Average Interest Rate (WAIR): 6.70% $25.2 Seller Financing (18.5% of total) • Secured by the respective clubs • Scarlett’s: $15.4 @ 7.41% WAIR • VIP’s & Blush: $9.8 @ 7.48% WAIR $86.3 Secured by Real Estate (63.4%) $13.7 Unsecured Debt (
Slide 10: Debt Manageability
Debt Manageability Quarter Actions Debt Maturities as of 12/31/20 ($M) • $1.7M of the $1.9M non-realty balloon deferred to FY22 and Amortization Schedule Realty Balloon Non-Realty Balloon 1Q21 $0.02M paid down • $4.9M of $5.4M in SBA loans forgiven along with $29K interest • $378K SBA loan forgiven
Slide 11: Bombshells Expansion
Bombshells Expansion Bombshells “The Next 10” • COVID-19 creates unique and compelling opportunity to access prime locations not previously available and/or buy/lease at significantly lower prices • Open 10 new units over the next 36 months if we find the right locations and structure the developmen
Slide 12: Capital Allocation Strategy
Capital Allocation Strategy* • Repurchase shares when FCF • …But during the pandemic, yield is more than 10%... acquire shares using the Buy Back same formula, but only if Shares cash exceeds $16M M&A Organic Buy More Judiciously of the Right Expand Nightclubs Bombshells • Buy good, solid, cash Driv
Slide 13: FY21 Accomplishments to Date
FY21 Accomplishments to Date • Business is recovering – Continued sequential rebound in Nightclubs – Continued strong YoY performance in Bombshells – Solid cash position – More clubs being allowed to reopen • Executing on our Capital Allocation Strategy – Pursue club acquisitions – Develop Bombshell
Slide 14: 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 14
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