Attached files
| file | filename |
|---|---|
| 8-K - RICK'S CABARET INTERNATIONAL, INC 8-K 12-3-2009 - RCI HOSPITALITY HOLDINGS, INC. | form8k.htm |
SAFE
HARBOR
• This
presentation may contain forward-looking statements that
are covered under the provisions of Section 27A of the
Securities Act of 1933 regarding Safe Harbor statements.
Forward-looking statements may involve revenue, income
and other business activities of Rick's Cabaret. Actual results
could differ materially from those projected in the forward-
looking statements as a result of many factors, including but
not limited to the risks associated with operating an adult
business, our ability to complete the acquisitions of new
business units, business climates in cities where we operate,
the success or lack thereof in building the company's
businesses, and numerous other factors. Under provisions of
the Safe Harbor section, the company is under no obligation to
correct, update or amend oral statements. Definitive
information about the company is presented on the
company's Website, www.ricks.com, and in filings made to the
SEC, which are also available on the Website.
are covered under the provisions of Section 27A of the
Securities Act of 1933 regarding Safe Harbor statements.
Forward-looking statements may involve revenue, income
and other business activities of Rick's Cabaret. Actual results
could differ materially from those projected in the forward-
looking statements as a result of many factors, including but
not limited to the risks associated with operating an adult
business, our ability to complete the acquisitions of new
business units, business climates in cities where we operate,
the success or lack thereof in building the company's
businesses, and numerous other factors. Under provisions of
the Safe Harbor section, the company is under no obligation to
correct, update or amend oral statements. Definitive
information about the company is presented on the
company's Website, www.ricks.com, and in filings made to the
SEC, which are also available on the Website.
RICK’S
CABARET OVERVIEW
Rick’s
Cabaret is the Premier Upscale
Gentlemen’s
Club Operator
• 18
Clubs in Major Markets: New York City, Miami,
Dallas-Ft.
Worth, Philadelphia, Houston,
Minneapolis,
Las Vegas
• Key
Brand: Rick’s
Cabaret
• High
Margins & Strong Cash Flow
• Compound
EBITDA Growth Last 5 Years
Exceeds
70 %
• Much
of Rick’s Growth Since 2005 has Been
Through Acquisitions
Through Acquisitions
• NYC
& Miami Clubs Are Our Home
Runs
• Cash
On Hand
and Demonstrated Ability
to
Raise Capital Are Powerful Tools
Raise Capital Are Powerful Tools
• Leading
Consolidation
of $2B Gentlemen’s
Club Industry
Club Industry
• Seven
Transactions in 2008-2009
OUR
CONSOLIDATION STORY
Purchase
of Midtown Manhattan Club in 2005
Brought
Wall Street Attention to RICK Stock
• Investment
Pros See RICK First Hand …‘Due
Diligence’ Parties Legendary
Diligence’ Parties Legendary
• Club
is Exceptionally Profitable> $12 mm+
Revenue Run-rate, High Margins, Strong
Growth
Revenue Run-rate, High Margins, Strong
Growth
• Proximity
to Madison Sq. Garden a Huge Plus
• Daily
Mention
on
“The Howard Stern Show”
• Playboy.com
says:
“Best Strip Club in NYC”
THE
TIPPING POINT
• Acquired
Nov. ’07 for $25.5mm
(2.2x EBITDA)
• One of
a kind: all
nude with liquor;
open
‘til
6 am
• 74,000 sq
ft
on two levels; valet parking for
1,500
cars;
• Immediately
accretive
-
highly profitable from
day
one;
• Revenue
Growth 25%+
over previous owner
run
rate by upgrading VIP services
• Named
Best
Strip Club in S.E.
in ’09
• Will
See New Records with Super
Bowl
and
Pro
Bowl
in Feb. ’10
RICK’S
CABARET LAS VEGAS
• Acquired
25,000 sq. foot club, just off The
Strip in September ‘08
Strip in September ‘08
• Marketing
Initiatives,
High
Margin VIP Focus,
Catering to Locals and Cost Controls are
Having Positive Impact
Catering to Locals and Cost Controls are
Having Positive Impact
• Revenues
Now Up and Will be Strong
Contributor as Vegas Market Turns Around
Contributor as Vegas Market Turns Around
DALLAS/FT.
WORTH MARKET
NEW
ACQUISITIONS IN DFW
• XTC
Cabaret
- Exceptional Club Near Sports
Stadiums and hip Uptown Area
Stadiums and hip Uptown Area
• Club
Onyx Dallas
- Has Become Top Upscale Club
for African-American Clientele
for African-American Clientele
• Rick’s
Ft. Worth
- Two-level Upscale Club on West
Side Just off I-30.
Side Just off I-30.
• Cabaret
North -
Newest Purchase, Off I-820 and I-
35W
35W
WHAT
MAKES RICK’S UNIQUE?
• Strong
Financial Controls
> Proprietary Cash
Management Similar to Casino Industry. Credit
Cards = Half of our Sales
Management Similar to Casino Industry. Credit
Cards = Half of our Sales
• Entertainers
> Independent
Contractors Pay Us
a Facilities Use Fee
a Facilities Use Fee
• “Concierge
Hospitality” + Customer Service
>
Builds Loyalty, Repeat VIP Business
Builds Loyalty, Repeat VIP Business
• Quality
Control
> Enhanced Brand
Value
• Strongest
Player in Sector Rollup
> Have Cash
and Funding Strength Unmatched in Industry
and Funding Strength Unmatched in Industry
FINANCIAL
SUMMARY
Fiscal
Year Financial Summary
Revenues
$13.9
$14.8
$24.5
$32.0
$59.9
44.2%
y-o-y
growth
7.0%
65.2%
30.7%
87.2%
EBITDA
1.9
0.9
4.1
5.7
16.3
71.6%
Margin
%
13.5%
6.0%
16.8%
17.8%
27.1%
Net
Income
0.8
(0.2)
1.8
3.1
7.7
77.3%
Margin
%
5.6%
(1.5%)
7.2%
9.5%
12.8%
Number of
Clubs
7
9
13
14
19
As of
June 30, 2009
CASH
FLOW & LIQUIDITY SUMMARY
• Rick’s
Raised $7.2 mm in
August through Convertible
Debenture
August through Convertible
Debenture
• Company’s
Current Cash
Position at about $13 mm
Position at about $13 mm
• Strong
Cash Flows Add to
Liquidity
Liquidity
OUR
DEBT PROFILE
• Real
Estate Backed Loans: $15.3
mm,
Will Be
Retired by 2014
• Tootsie’s
Cabaret Owner Purchase
Note:
$10mm @14% Due Nov. 2012
• Raised
$7.2mm in August, Payable in
10
Quarterly Payments at 10% over 3
Years; Will
Retire by August 2012, or
Convert
at $8.75
• IT
executive, Director of Internet Division
• Degree in
Aeronautical Science
OUR
MANAGEMENT TEAM
• CPA President
/ Owner Pringle
Jenkins & Associates, P.C.
• Degree in
Business Administration
Director
Steven
L. Jenkins
Background
Title
Name
• Noted First
Amendment Attorney
• Former
President First Amendment Lawyers Assn.
Director
Luke
Lirot
• 20+ Years
Hospitality Industry Management Experience
• Degree in
Business Administration
Director
of Operations
Ed
Anakar
• 20+ years
industry experience as owner/operator
• Founder /
Director of Adult
Club Executives (ACE)
President,
CEO & Director
Eric
Langan
• Founded
Rick's in 1983; CEO until 1999
• Bachelor of
Laws (Honours) (1973) - London School of Economics
• Master of
Laws (1975) Osgoode Hall Law School, York University
Founder
/ Director
Robert
L. Watters
• Audit
Partner, KPMG; CFO of CDT Systems,
Inc. (CDTN),
• Texas
State University (1972)
CFO
Phillip
K. Marshall
• Former Exec
VP Thomson Financial/Publisher American Banker
• Dartmouth
College / University of Southampton (UK)
Investor
& Media Relations
Alan
Priaulx
• Over 20
years of legal experience
• B.S. and
J.D. from the University of Houston
General
Counsel
Brenda
Stanfield
VP/Director
Travis
Reese
OUR
LONG-TERM GROWTH
STRATEGY
STRATEGY
• Focus
on core
competency
- become top
club in each market
club in each market
• Increase
operating
efficiency
& raise
gross
margins
• Leverage
our strong marketing
skills
• Emphasize
transparency, rigorous
cash
control
• Build
brand awareness/brand equity
• Highly
selective
acquisitions
• Focus
on metro
areas:
business traffic /
conventions / tourism / pro sports
conventions / tourism / pro sports
• Purchase
at 3x
- 5x
EBITDA
• Quickly
Accretive
• Flexible
funding models
Organic
Growth
Acquisition
Growth
SUMMARY
• Attractive
Industry
>
We
Operate Top Clubs in
Major
Markets
•
Unique
Business Model
>
Great
Margins
+
Financial
Controls
•
Growth
from Rollup of Fragmented Industry
>
Big
Pipeline of Targets ….
•
Non-Capital
Intensive >
Cash Flows
Consistently
Strong
•
Management
> Depth
+ Experience
THANK
YOU!
PLEASE
BE SURE TO VISIT
RICK’S
CABARET LOCATIONS
FOR
ADDITIONAL DUE DILIGENCE
ADDITIONAL DUE DILIGENCE