RCI Hospitality Holdings, Inc. · NASDAQ:RICK
RCI Hospitality — Granite Conference Series 2023
15 slides from RCI Hospitality's conference presentation, January 2023
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 | Granite Conference Series | January 11-12, 2023 | www.rcihospitality.com | @RCIHHinc
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: Executive Summary
Executive Summary What We What We Key to Our Growth Management Moat Change Do Really Do Success Opportunity Expertise Transforming Leader in the Free cash flow Disciplined Adult Large runway to Deep bench of industry from nightclub-bar- per share capital nightclub buy clubs & industry, IT, “strip cl
Slide 5: Strong Portfolio of Hospitality Venues
Strong Portfolio of Hospitality Venues • Own and franchise 67 nightclubs and restaurants (12/31/22) Overview • Founded in 1983 • Nasdaq IPO in 1995 • 54 clubs in 13 states (12/31/22) Nightclubs • Well-known brands, many with restaurants • 77% of revenues (TTM ended 9/30/22) • Fast-growing, sports ba
Slide 6: Impressive Track Record Since Launching Capital Allocation Strategy End of FY15
Impressive Track Record Since Launching Capital Allocation Strategy End of FY15 Free Cash Flow ($M)1 $58.9 FCF as % of Revenues1 22.0% +22% 18.4% 18.5% +1,100 $36.1 CAGR $33.3 BPS 13.7% 14.0% $23.2 13.3% $18.5 $19.3 $14.9 11.0% $13.5 10.2% FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY15 FY16 FY17 FY18
Slide 7: Solid Recent Performance ($M)
Solid Recent Performance ($M) $38.1 $37.5 Cash $35.7 $36.0 As % of Total Revenues1 35% 35% $29.1 34% 31% 32% 31% 29% $20.2 23% $17.0 $18.0 $15.6 25% 25% 22% 20% 20% 15% 17% 12% 15% 15% FCF Adj. EBITDA 9/30/20 12/31/20 3/31/21 6/30/21 9/30/21 12/31/21 3/31/22 6/30/22 9/30/22 4Q20 1Q21 2Q21 3Q21 4Q21
Slide 8: Capital Allocation Strategy
Capital Allocation Strategy1 FY22 • Repurchase shares when • $15.1M cash deployed FCF yield is more than 10% • 268,185 shares repurchased Buy Back • $56.29 average price/share Shares M&A Organic Buy More Methodically of the Right Expand FY22 • $141.8M capital deployed Nightclubs Bombshells FY22 ($45
Slide 9: Great Business Model (TTM ended 9/30/22)
Great Business Model (TTM ended 9/30/22) Total Revenues Strong Cash Generation (TTM ended 9/30/22) • High gross profit margin (86.5%) Entertainment Alcoholic Beverages • Fast cash conversion cycle Services 35% 42% • Low maintenance capex ($5.6M) Nightclubs • High barriers to entry • Few municipaliti
Slide 10: Nightclubs: Significant Acquisition Opportunities
Nightclubs: Significant Acquisition Opportunities Market Our Top Club Brands • 2,200 clubs / ~500 meet our acquisition criteria Elegant clubs with restaurants • We are one of the largest, but our market share is minimal • Long-term owners interested in selling, we are the acquirer of choice Financia
Slide 11: Rick's Cabaret Steakhouse & Casino
Rick’s Cabaret Steakhouse & Casino The • 4-story, 30,000 sq-ft building in historic Central City, CO Acquisition • Paid $2.4M cash for property The • 1 of 3 Colorado cities with legalized gambling Central City • $1B wagered on slots Market1 • Generated +$80M in adjusted gross proceeds • Club with a
Slide 12: Bombshells: Next Generation Sports Bar Concept
Bombshells: Next Generation Sports Bar Concept More Upscale High Impact Branding • Better quality food, service and experience • Immediately recognizable • Big HDTVs, scratch kitchen, free Wi-Fi, USB charging stations, DJs • Signals fun, friendliness and comfort to all walks of life • 4 Dayparts: Lu
Slide 13: 1Q23 Nightclub & Bombshells Sales
1Q23 Nightclub & Bombshells Sales ($ in Millions) 1Q23 Total Sales Total Sales vs. 1Q22 SSS vs. 1Q22 SSS vs. 1Q20 Combined $69.2 +13.3% -2.7% +8.6% Nightclubs $55.9 +20.7% +1.2% +10.0% Bombshells $13.3 -9.7% -13.9% +3.6% 13
Slide 14: Highly Experienced Management
Highly Experienced Management Eric Langan Travis Reese Bradley Chhay President & CEO Executive Vice President Chief Financial Officer Director since 1998, EVP and Director since Joined RCI in 2015 as President & CEO since 1999, also served as Controller, upgraded 1999, in the adult Director of Techn
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 15
RCI Hospitality Holdings — Granite Conference Series 2023 on 6ix