RCI Hospitality Holdings, Inc. · NASDAQ:RICK
RCI Hospitality — Rick's Cabaret International — Investor Presentation (January 2014)
19 slides from RCI Hospitality's investor presentation, January 2014
Slide 1: Rick's Cabaret International, Inc. Investor Presentation
Rick's Cabaret International, Inc. (NASDAQ: RICK) Investor Presentation January 2014
Slide 2: Forward Looking Statements
January 2014 Investor Presentation Forward Looking Statements Certain statements contained in this presentation regarding Rick's Cabaret future operating results or performance or business plans or prospects and any other statements not constituting historical fact are "forward-looking statements" s
Slide 3: Explanation of Non-GAAP Terms
January 2014 Investor Presentation Explanation of Non-GAAP Terms Non-GAAP Net Income and Non-GAAP Net Income per Diluted Share (referred to as “Non- GAAP EPS” herein). We exclude from GAAP net income and GAAP net income per diluted share amortization of intangibles, patron taxes, income tax expense,
Slide 4: Investor Snapshot
January 2014 Investor Presentation – Overview Investor Snapshot Quick Facts • Nation’s leading hospitality company in adult gentlemen’s clubs and • Founded 1994 sports bars/restaurants • Based in Houston • Customers: Focus on friendly, entertaining, quality experience • NASDAQ listed • Shareholders:
Slide 5: Investment Thesis
January 2014 Investor Presentation – Overview Investment Thesis Adult Clubs Bar/Restaurants • Consolidation and growth of a classic • Leverages core expertise and infrastructure American form of entertainment into a Enables us to maximize revenues and national, professionally managed chain profits
Slide 6: Seasoned Management Team
January 2014 Investor Presentation – Overview Seasoned Management Team Years Name Title Background With Rick’s Eric S. Langan Chairman, CEO & 15 • 20+ years industry experience as President owner/operator • Founder / Director of Adult Club Executives (ACE) Phillip K. Marshall Chief Financial 6 • Aud
Slide 7: EBITDA Growing Faster than Revenues
January 2014 Investor Presentation – Overview EBITDA Growing Faster than Revenues ($ in millions) Revenues EBITDA $120 $30 $112 $28 $100 $95 $25 $24 $24 $83 $83 $80 $76 $20 $18 $15 $60 $15 10.3% CAGR 16.7% CAGR $40 $10 FY09 FY10 FY11 FY12 FY13 FY09 FY10 FY11 FY12 FY13 • Generates cash for acquisitio
Slide 8: But Significantly Undervalued vs. Industry
January 2014 Investor Presentation – Overview But Significantly Undervalued vs. Industry Leisure Industry RICK Difference (includes Restaurants) Growth & Profitability Sales - 5 Yr Growth Rate (%) 11.6 4.3 172% Gross Margin (TTM) (%) 87.5 36.5 140% EBITD Margin (TTM) (%) 33.3 21.2 57% Valuation P/E
Slide 9: Operating Strengths
January 2014 Investor Presentation – The Business Operating Strengths Key Factor Comment • Buy liquor, food, advertising and other 1. Efficiencies of scale services at increasingly lower unit costs • Expands market by reaching wider, more varied types of customers 2. Multiple brands and formats • Fa
Slide 10: High Gross Margins (FY13)
January 2014 Investor Presentation – The Business High Gross Margins (FY13) Category Comment % of Revenue Gross Margin Service • Cover charges 44.0% Approaching • Patron charges 100% • Dancers • Room rentals Alcohol • Liquor 40.6% 78.5% • Beer • Wine Food & • Food 9.3% 54.0% Merchandise • Non-alcoho
Slide 11: Multiple Adult Club Brands
January 2014 Investor Presentation – The Business Multiple Adult Club Brands XTC and Rick’s Cabaret Club Onyx Tootsies Jaguars Vivid Temptations • Flagship brand • Upscale • Casual • Unique facility • Lively clubs • Our newest • High-end clubs nightclubs atmosphere • 74,000 sq. ft. • Leverages with
Slide 12: New Sports Bar/Restaurant Brands
January 2014 Investor Presentation – The Business New Sports Bar/Restaurant Brands Restaurant Model Bombshells Ricky Bobby Restaurant & Bar Sports Saloon • $1.2 M start up costs • $3 M annual revenues • 15-25% operating margins • Multiple locations in a single market • Lease vs. own • Military theme
Slide 13: Geographic Strategy
January 2014 Investor Presentation – The Business Geographic Strategy Real Estate • Company owns real estate for 85% of its facilities Minneapolis • Adult club licenses New York City typically tied to the Philadelphia physical location Indianapolis Charlotte Los Angeles Phoenix Dallas Austin New Orl
Slide 14: Creating Company/Shareholder Value
January 2014 Investor Presentation – The Future Creating Company/Shareholder Value Units Open at End of Each Fiscal Year • Maximize existing club licenses and 26% CAGR, FY2003-2013 properties 39 • Acquire new adult clubs 34 Continue to look at several targets Not indiscriminate buyers 500 club
Slide 15: New & Planned Locations
January 2014 Investor Presentation – The Future New & Planned Locations Current Status Quarter Brand Location • 42 adult club and 4Q13-Opened Temptations (AC) Beaumont, TX bar/restaurant 4Q13-Opened Vivid Cabaret (AC) Los Angeles, CA locations • 4 in various stages 1Q14-Opened Jaguars (AC) Houston,
Slide 16: Unlocking Real Estate Value
January 2014 Investor Presentation – The Future Unlocking Real Estate Value • New York Transaction Contract to buy 50 W33rd Street location for $10M over next 5 years Sold residential air rights to third party for $8 M, enabling us to reduce monthly lease to $100K for next 5 years vs. $180K • RE
Slide 17: Balance Sheet Update
January 2014 Investor Presentation – The Future Balance Sheet Update (9-30-13 vs. 9-30-12, $ in millions) Total Permanent $100 Stockholders’ Equity • Cash: Nearly doubled to $10.7 $90 $97.1 • LT Debt: $78.6 $38.7 real estate debt $80 $87.6 $29.2 sub level debt from acquisitions $70 $7.2 parent
Slide 18: FY14 Guidance and Big Sports Events
January 2014 Investor Presentation – The Future FY14 Guidance Big Sports • Revenues Events Continuing to target 20% to 30% annual growth Growth from existing clubs and restaurants, and ones expected to 2014 open in 2014 Event Location Potential upside from major sporting events Pro Football’s
Slide 19: Contact Information
January 2014 Investor Presentation – Investor Relations Contact Information Principal Corporate Office 10959 Cutten Road Houston, TX 77066 Phone: (281) 397-6730 Investor Relations Gary Fishman Steven Anreder Phone: (212) 532-3232 IR Website www.ricksinvestor.com NasdaqGM: RICK 19
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