Transcript New Rick’s Logo - RCI Hospitality Holdings Inc

SAFE HARBOR
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" subject to the safe harbor created by the Private Securities
Litigation Reform Act of 1995. Where possible, the words "believe," "expect," "anticipate," "intent,"
"would," "will," "planned," "estimated," "potential," "goal," "outlook," and similar expressions, as they
relate to the company or its management have been used to identify such forward-looking
statements. All forward-looking statements reflect only current beliefs and assumptions with respect
to future business plans, prospects, decisions and results, and are based on information currently
available to the company. Accordingly, the statements are subject to significant risks, uncertainties
and contingencies, which could cause the company‘s actual operating results, performance or
business plans or prospects to differ materially from those expressed in, or implied by, these
statements. Such risks, uncertainties and contingencies include, but are not limited to, risks and
uncertainties associated with (i) operating and managing an adult business, (ii) the business
climates in cities where the company operates, (iii) the success or lack thereof in launching and
building the company’s businesses, (iv) the operational and financial results of the company's adult
nightclubs, (v) conditions relevant to real estate transactions, (vi) the loss of key personnel, and (vii)
laws governing the operation of adult entertainment businesses. Additional factors that could cause
the company’s results to differ materially from those described in the forward-looking statements are
described in forms filed with the SEC from time to time and available at www.ricksinvestor.com or
on the SEC's internet website at www.sec.gov. Unless required by law, Rick's Cabaret does not
undertake any obligation to update publicly any forward-looking statements, whether as a result of
new information, future events, or otherwise.
Definition of Adjusted EBITDA
During this Conference Call you may hear us refer to Adjusted
EBITDA. We consider Adjusted EBITDA to be a key metric to
measure our performance. It is a financial statement measure
that was not derived in accordance with GAAP. In calculating
Adjusted EBITDA the company excludes the largest recurring
non-cash charge, depreciation, amortization and impairment
charges. Adjusted EBITDA provides a core operational
performance measurement that compares results without the
need to adjust for Federal, state and local taxes, which have
considerable variation between domestic jurisdictions. Also,
the company excludes interest cost in the calculation of
Adjusted EBITDA. The results are, therefore, without
consideration of financing alternatives of capital employed.
The company uses Adjusted EBITDA as one guideline to
assess unleveraged performance return on investments.
Adjusted EBITDA is also the target benchmark for acquisitions
of nightclubs.
CONFERENCE CALL OVERVIEW
December 14, 2O11
• Summary of Q4 & FY ’11
• Chief Drivers of Revenue Increase
• Chief Drivers of Net Income Increase
• Outlook for 2012
• Q&A
SNAPSHOT: Q4 ’11 vs.‘1O
For the Quarter Ending Sept. 30, 2011
• Q4 ‘11 Revenue $21.5m vs $19.1m, a
12.7% Increase over Q4 ’10
• Q4 Net Income $2.0m vs. Loss of
($12.5m) in Q4 ’10
• Adjusted EBITDA in Q4 $5.5m vs
$4.4m, a 24.7% Gain over Q4 ’10
• Diluted EPS $.20 vs. ($1.24) in Q4 ’10
SNAPSHOT: FY ’11 vs ‘10
For the Year Ending Sept. 30, 2011
• FY ‘11 Revenue $83.5m, Up 12.7%, vs $74.0m
in FY ’10
• FY ’11 Net Income $7.8m vs. Loss of ($8.0m)
• FY ’11 EPS from Continuing Operations $1.01,
a 165% increase vs. $.38
• Fully Diluted EPS $.79 vs. ($.82)
• Adjusted EBITDA $23.6m, Up 32% vs. $17.9m
• Net Cash Provided by Operating Activities
Increased to $18.9m from $17.3m
• Operating Margins 22.5% vs. 20.2%
REASONS FOR IMPROVEMENT
 Experiencing a Return to ‘Normal’ Growth
and Performance in Major Markets
 Same Club Comp Sales Increased 4.9% for
the Year
 The ‘Whale’ Spender Returning in Bigger
Clubs…“Regular” Customers in Smaller
Clubs
 Recently Acquired Clubs Contributing as
Expected
Current Update
• New Acquisitions in Dallas/Ft Worth
Expand Footprint in Important Market
• Club Onyx Philadelphia Continues
Rebuild with Extended Operating Hours
• Rick’s Cabaret/Indianapolis Gearing
for Super Bowl ’12
• TABC Hearing for Rick’s Cabaret/DFW
Was Held in June, Still Awaiting
Issuance
DEBT UPDATE
 Current debt 9/30/11 was $35.6m
 We Reduced Debt by $6.9m in 12
Months ended 9/30/11
 We will Pay Down $5.5m in Fiscal ’12
 We Continue to Explore Refinancing
of Our Real Estate Debt
Forward Growth Strategy
• Continue Emphasis on Organic
Growth & Cash Generation
• Continuing to Explore Accretive
Acquisitions
• Lots of Opportunities; We Seek Right
Clubs at Right Prices
Outlook
• If Current Trends Continue & Economy
Cooperates, ‘12 May Be a Very Strong
Year
• Our Stock Remains Undervalued – It
May Improve with Strong Back-to-Back
Quarters
• We Are Not Issuing Any Formal
Guidance At This Time
THANK YOU!
Be Sure To Visit Rick’s Cabaret/NYC Tonight for
Some Personal Due Diligence