RICK - RCI Hospitality (RICK) - NobleCon 18 Presentation

NobleCon 18. RCI CEO Eric Langan presented at NobleCon 18. The Company highlighted its strategy of building a portfolio of well managed, high cash flowing nightclubs and restaurants. A rebroadcast is available at https://noble.mediasite.com/mediasite/Catalog/Full/4ec6170801b441318e66ea53d53540a421 .Portfolio of Hospitality Venues. RCI has built a strong portfolio of 49 Gentlemen's Clubs across 13 states and 11 Bombshells restaurants. These business feature strong cash generation, real estate ownership, and barriers to entry, specifically in the Gentlemen's Clubs segment.Bombshells Growth. RCI is actively looking at seven sites across Austin, Dallas, Phoenix, and major metropolitan areas of Florida for owned locations, while the first franchise location is expected to open soon. RCI remains in active negotiations for additional franchisees with five different groups. Management's goal is for 80-100 locations over the next five years.On the Hunt. RCI remains on the hunt for additional Gentlemen's Clubs acquisitions, with a goal of adding $20 million of annual EBITDA. There are roughly 500 locations across the U.S. that meet RCI's acquisition criteria. Given the Company's access to capital and ability to issue stock, we continue to believe RCI remains the buyer of choice for owner's seeking to cash out of the industry.Maintain Outperform. We are maintaining our Outperform rating and $100 12-month price target. RCI is the only publicly traded Gentlemen's club operator with a fast growing military themed sports bar and restaurant chain. We believe the unique combination, with significant inorganic and organic growth opportunities, presents investors with a favorable risk/reward opportunity. Read More >>