Rci Hospitality Holdings, Inc. · NASDAQ:RICK
Rci Hospitality — Q1 2025 Earnings Presentation
29 slides from Rci Hospitality's earnings presentation, Feb 10, 2025
Slide 1: Building a portfolio of well-managed, high cash-flowing nightclubs and sports-bar restaurants
Building a portfolio of well-managed, high cash-flowing nightclubs and sports-bar restaurants NASDAQ: RICK | 1Q25 Conference Call | February 10, 2025 | www.rcihospitality.com | @RCIHHinc
Slide 2: Today's Speakers
Today’s Speakers Eric Langan Bradley Chhay Mark Moran President & CEO Chief Financial Officer CEO RCI Hospitality Holdings, Inc. RCI Hospitality Holdings, Inc. Equity Animal @RicksCEO @BradleyChhay @itsmarkmoran 2
Slide 3: X Spaces Instructions
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Slide 4: 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 5: 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 6: Key Takeaways
Key Takeaways • Nightclubs: Total and same-store sales increased, while GAAP and non-GAAP segment operating profit were approximately level with 1Q24, despite absence of a club due to fire in July 1Q25 Results • Bombshells: Total sales declined as expected with sale/closure of underperformers, but G
Slide 7: Summary Results
Summary Results In Millions, Except EPS 1Q25 1Q24 Total revenues $71.5 $73.9 EPS $1.01 $0.77 Non-GAAP EPS* $0.80 $0.87 Other gains, net $(2.2) $0.0 Net cash provided by operating activities $13.3 $13.6 Free cash flow* $12.1 $12.7 Net income attributable to RCIHH common stockholders $9.0 $7.2 Adjuste
Slide 8: Nightclubs Segment
Nightclubs Segment Total Revenues ($M) Operating Margin As % of Segment Revenues $62.4 $62.8 GAAP Non-GAAP $60.9 $61.0 $61.7 $60.6 $59.4 50% $56.3 $57.0 40% 30% 20% 10% 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 1Q25 vs. 1Q24 ($M) Locations Contributing
Slide 9: Bombshells Segment
Bombshells Segment Total Revenues ($M) Operating Margin As % of Segment Revenues GAAP Non-GAAP $14.3 $14.4 25% $13.4 $13.6 $13.1 $12.7 $12.8 $11.9 —% $9.6 (25)% (50)% (75)% 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 1Q25 vs. 1Q24 ($M) Locations Contribu
Slide 10: Corporate Segment
Corporate Segment Expense ($M) Expense Margin As % of Total Revenues GAAP Non-GAAP GAAP Non-GAAP 14% $8.8 $7.5 $8.4 $7.1 $7.2 $7.1 $6.8 $6.8 12% $6.2 $6.3 $6.6 $6.6 $6.6 $6.3 $6.3 $6.3 $5.8 $5.5 10% 8% 6% 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 1Q25
Slide 11: GAAP Disclosure ($M)
GAAP Disclosure ($M) Quarter 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 Operating income (loss) $16.9 $13.4 $15.5 $5.6 $13.2 $4.7 $(2.5) $3.5 $13.9 Net cash provided by operating activities $14.9 $16.8 $15.3 $12.1 $13.6 $10.8 $15.8 $15.7 $13.3 Net income (loss) $10.2 $7.7 $9.1 $2.2 $7.2 $0.8 $(5.2
Slide 12: Cash, FCF & Adjusted EBITDA ($M)
Cash, FCF & Adjusted EBITDA ($M) Cash As % of Total Revenues $34.9 $34.7 Adj. EBITDA FCF $34.1 $32.4 30% 29% 29% $23.6 27% $22.8 26% $21.0 $21.2 $20.0 24% 24% 24% 22% 21% 19% 19% 18% 18% 17% 17% 15% 12% 12/31/22 3/31/23 6/30/23 9/30/23 12/31/23 3/31/24 6/30/24 9/30/24 12/31/24 1Q23 2Q23 3Q23 4Q23 1Q
Slide 13: Debt Metrics
Debt Metrics Debt, Net of Loan Costs ($M) Debt Maturities at 12/31/24 ($M) Amortization Schedule Non-Realty Balloon Realty Balloon $245.8 $243.8 $239.8 $245.4 $238.2 $234.1 $231.9 $235.5 $211.2 $5.7 $9.1 $6.2 $2.3 $3.7 $14.4 $14.9 $15.1 $15.2 $11.1 12/31/22 3/31/23 6/30/23 9/30/23 12/31/23 3/31/24 6
Slide 14: Capital Allocation Strategy
Capital Allocation Strategy Notes Share • Targeted % Buybacks: annual use of ~40% FCF FY25-29 • Strategy excludes completion of club and restaurant Share projects already Buybacks, Club in development Debt • We may deviate Acquisitions Reduction, from this ~40% strategy if other Dividends strategic
Slide 15: Our 5-Year Plan Summary
Our 5-Year Plan Summary* • Nightclubs – focus on core business operations and new acquisitions Operations • Bombshells – improve performance and finish units currently under development • We expect to generate $250M+ of cumulative FCF over the next 5 years Capital – 40% of FCF allocated to club acqu
Slide 16: Development Update
Development Update Project Location Status Bombshells (new) Denver, CO Opened January 2025 Chicas Locas (rebrand) El Paso, TX Targeting March 2025 open Interior construction underway Bombshells (new) Lubbock, TX Target opening March 2025 Completing final finish outs Rick’s Cabaret & Steakhouse (new)
Slide 17: Appendix
RCI HOSPITALITY HOLDINGS INC Appendix
Slide 18: Long-Term Performance
Long-Term Performance Fiscal Year ($M) 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 9-Year CAGR Total revenues $135.4 $134.9 $144.9 $165.7 $181.1 $132.3 $195.3 $267.6 $293.8 $295.6 9.1% Adjusted EBITDA $34.1 $34.5 $37.3 $44.4 $46.2 $22.4 $60.2 $86.7 $85.0 $72.6 8.8% % of revenues 25.2% 25.6% 25
Slide 19: Strategic Share Buybacks & Issuance
Strategic Share Buybacks & Issuance Cumulative Value of Shares Repurchased Average Price Shares Used for Fiscal Year Shares Value Per Share Used for Shares Per Share Acquisitions Repurchased Acquisitions 2015 225,280 $10.19 225,280 2016 747,081 $9.79 972,361 2017 89,685 $12.25 1,062,046 2018 -- -- 2
Slide 20: Debt Analysis (at 12/31/24, $M)
Debt Analysis (at 12/31/24, $M) Total of $238.3* Weighted Average Interest Rate (WAIR): 6.65% $62.6 Seller Financing (26.3% of total) • Secured by the respective clubs and real estate to which it applies • 5 Baby Dolls-Chicas Locas: $17.9 @ 7% WAIR • 11 Clubs: $16.5 @ 6% WAIR $150.6 Secured by Real
Slide 21: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures For the Three Months Ended In 000s December 31, 2024 December 31, 2023 Reconciliation of GAAP net income to Adjusted EBITDA Net income attributable to RCIHH common stockholders $ 9,024 $ 7,226 Income tax expense (benefit) 1,847 1,799 Interest expense, net 3,973 4,
Slide 22: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures For the Three Months Ended In 000s December 31, 2024 December 31, 2023 Reconciliation of GAAP net income to non-GAAP net income Net income attributable to RCIHH common stockholders $ 9,024 $ 7,226 Amortization of intangibles 580 659 Settlement of lawsuits 179 — St
Slide 23: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures For the Three Months Ended December 31, 2024 December 31, 2023 Reconciliation of GAAP diluted earnings per share to non-GAAP diluted earnings per share Diluted shares 8,920,774 9,367,151 GAAP diluted earnings per share $ 1.01 $ 0.77 Amortization of intangibles 0.0
Slide 24: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures For the Three Months Ended In 000s December 31, 2024 December 31, 2023 Reconciliation of GAAP operating income to non-GAAP operating income Income from operations $ 13,906 $ 13,165 Amortization of intangibles 580 659 Settlement of lawsuits 179 — Stock-based compen
Slide 25: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures For the Three Months Ended % of Total Revenues December 31, 2024 December 31, 2023 Reconciliation of GAAP operating margin to non-GAAP operating margin GAAP operating margin 19.5 % 17.8 % Amortization of intangibles 0.8 % 0.9 % Settlement of lawsuits 0.3 % 0.0 % S
Slide 26: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures For the Three Months Ended In 000s December 31, 2024 December 31, 2023 Reconciliation of net cash provided by operating activities to free cash flow Net cash provided by operating activities $ 13,344 $ 13,633 Less: Maintenance capital expenditures 1,276 983 Free c
Slide 27: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures For the Three Months Ended December 31, 2024 In 000s Nightclubs Bombshells Other Corporate Total Income (loss) from operations $ 20,882 $ 1,971 $ (171) $ (8,776) $ 13,906 Amortization of intangibles 574 1 — 5 580 Settlement of lawsuits 179 — — — 179 Stock-based co
Slide 28: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures in 000s For the Three Months Ended December 31, 2023 Nightclubs Bombshells Other Corporate Total Income (loss) from operations $ 20,369 $ 86 $ (196) $ (7,094) $ 13,165 Amortization of intangibles 591 63 — 5 659 Stock-based compensation — — — 470 470 Gain on sale o
Slide 29: 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 29
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