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 forwardlooking 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
May 10, 2012
• Summary of Q2
• Chief Drivers of Revenue,
Earnings, EBITDA & Cash Flow
• Discussion of Acquisition
Program
• Outlook for Remainder of 2012
• Q&A
SNAPSHOT: Q2 ‘12 vs ‘11
• Q2 ‘12 Revenue $25.4 million vs $21.6
million in Q2 ‘11, a 17.8% Increase
• Q2 ’12 Same Store Sales Rose 8.1% over
Q2 ‘11, to $22.6 million
• Q2 ’12 Net Income (Without Legal Settlement)
$3.3 million vs. $2.9 in Q2 ’11
• Q2 ’12 Adjusted EBITDA* $7.5 million (Without
Legal Settlement), vs. $6.9 million
• Net Cash Provided by Operating Activities in
the Six Months Ended March 31, 2012 Was
$12.0 million Compared to $8.5 million
… SNAPSHOT (Cont.)
• Q2 ’12 Expenses Include One-Time
$1.8 million Reserve to Settle
Shareholder Lawsuit
• Exclusive of Legal Settlement,
Operating Margins Improved to 22.2%
vs. 19.8% in Previous Quarter
Current Update
• Rick’s Cabaret/DFW Grand Opening
Party This Week – Great Start
• Silver City Cabaret Gives Us Further
Strength in DFW Metroplex
• Basketball Crowds Are Back
• Have Implemented Minor Price
Increases in Recent Weeks
DEBT UPDATE
 Current Debt 3/31/12 at $47 million, $27.9
million of Which is Real Estate
 Reduced Debt by $2.9 million in
Three Months ended 3/31/13
 $6 million To Be Paid Down Over
Next Year
Forward Growth Strategy
• Have Focused Our Search On
Multi-Club Operators
• Will Continue Emphasis on Organic
Growth & Cash Generation
• Goal Is Accretive Acquisitions
Adding Quickly to Bottom Line
Performance
Outlook
• We Continue to Produce Solid &
Consistent Numbers
• Examining Several Opportunities for
Significant Growth of Top and Bottom
Lines
• Clubs Acquired in Past Year Meeting
or Exceeding Expectations
• Remain Highly Confident in Our
Management & Our Business Model
THANK YOU!
If you are in the New York Area Please Attend
Tonight’s Due Diligence Ball at Rick’s Cabaret,
50 West 33rd Street