Rci Hospitality Holdings, Inc. · NASDAQ:RICK
Rci Hospitality — ICR Conference 2022
15 slides from Rci Hospitality's conference presentation, Jan 10, 2022
Slide 1: RCI Hospitality Holdings - ICR Conference
RCI HOSPITALITY HOLDINGS INC Building a portfolio of well-managed, high cash-flowing nightclubs and restaurants £Q2 RCI HOSPITALITY HOLDINGS INC. 25 ® Nasdaq 1995-2020 NASDAQ: RICK ICR Conference January 10-12, 2022 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: Strong Portfolio of Hospitality Venues
Strong Portfolio of Hospitality Venues Overview Bombshells Growth Drivers . 60 well-managed, high cash-flowing bars and restaurants + Founded in 1983 + IPO and Nasdaq listing in 1995 + Original business — 70% of FY21 sales + 49 locations in 13 states, many in top 20 US markets + Many are well-known
Slide 5: Capital Allocation Strategy
Capital Allocation Strategy* + Repurchase shares when FCF yield is more than 10% Buy Back Shares M&A Organic Buy Mo Methodically of the Righ Expand Nightclubs Bombshells + Buy good, solid, cash y Drive Value id + Develop critical mass, flowing clubs at 3-5x . market awareness, adjusted EBITDA with 1
Slide 6: Pre-2016 to Today
Pre-2016 Focused on Growth of Revenue, not Free Cash Flow Defined & Adopted Capital Allocation Strategy Invested in the Right People, Systems & Processes Disposed of Under- Performing Locations Changed Approach to Club Purchases & New Bombshells Focused on Using Debt vs. Equity Today Highly Scalable
Slide 7: Impressive Track Record & Covid Rebound
Impressive Track Record & Covid Rebound Free Cash Flow ($M)' rr FCF as % of Revenues’ $333 18.4% 18.5% +750 BPS +16% 3232 CAGR ne i i $13.5 i LI] 10% mis YG OY FYIB FYI9 FY20 FY21 FYI5 FYI6 FYI7 FY18 FvI9 Fy20 Fv21 4Q Sales / Location ($K)? Diluted Weighted Average Shares Outstanding (M) $1,194 10.4
Slide 8: Better quality food, service and experience
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 Immediately recognizable Signals fun, friendliness and comfort to all walks of lif
Slide 9: Bombshells: FY21 Record Year
ny, WHISTAIRANT & BANK Bombshells: FY21 Record Year $56.6 Revenues ($M) Units at Year End 10 10 $43.2 8 +32% cone : +19% CAGR _ 5 CAGR if L FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21 Operating Margin 23.4% Income from Operations ($M) $13.3 $9.2 6 +700 16.4% +44% BPS CAGR $3.4 | = 7 rir FY18 F
Slide 10: Bombshells: Favorable Metrics
Bombshells: Favorable Metrics ESTAMRANT & HAN Revenue growth (last 5 years) 201% $4.4 $4.3 AUV' growth (last 5 years) 28% Unit growth (last 5 years) 100% Liquor / food sales (most recent year) 57% | 42% Sales / square foot (most recent year) $461 +40% FY21 vs. FY19 Gross margin (most recent year) 76
Slide 11: Bombshells: Highly Profitable Target Return Models
Bombshells: Highly Profitable Target Return Models Targeted results based on our experience developing Bombshells. Actual performance of individual locations will vary based on differences between each location's size, cost of real estate, lease terms, level of construction and/or retrofitting of th
Slide 12: Bombshells: Targeting More Locations Next Years
Bombshells: Targeting 15 More Locations Next 3 Years z History - Built 5 the first 5 years - Then 5 more in 4 years FY21 launched plan to develop the next 10 in 3 years - Growth is self-funding — Opened 2" Dallas location in December 2021 - Contracted to buy: 2 more Dallas sites, 1 more Houston site
Slide 13: 1Q22 Sales: Growth Continues
1Q22 Sales: Growth Continues Combined $61.1 +62% Nightclubs | $46.3| +87% Bombshells $14.8 +14% a a ee ee a a ee ee es ee ee ee ee ee I Bombshells benefited from new Arlington, TX location opened early December Nightclubs benefited from 12 clubs acquired mid-October and early November No Omicron eff
Slide 14: WHISTAIRANT & BANK
WHISTAIRANT & BANK + Store Locations: + Franchise Support: * Company Info: RCI HOSPITALITY 14 HOLDINGS INC
Slide 15: 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 A RESTAURANT & BARK RCI HOSPITALITY 15 HOLDINGS INC