Rick's Cabaret BMC 092711 F

8/3/2019 Rick's Cabaret BMC 092711 F

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SAFE HARBOR

Certain statements contained in this presentation regarding Rick's future operating resultsor performance or business plans or prospects and any other statements notconstituting historical fact are "forward-looking statements" subject to the safe harborcreated by the Private Securities Litigation reform Act of 1995. Where possible, thewords "believe," "expect," "anticipate," "intent," "would," "will," "planned," "estimated,""potential," "goal," "outlook," and similar expressions, as they relate to the company orits management have been used to identify such forward-looking statements. All

forward-looking statements reflect only current beliefs and assumptions with respect tofuture business plans, prospects, decisions and results, and are based on informationcurrently available to the companies. Accordingly, the statements are subject tosignificant risks, uncertainties and contingencies, which could cause the companies'actual operating results, performance or business plans or prospects to differ materiallyfrom those expressed in, or implied by, these statements. Such risks, uncertaintiesand contingencies include, but are not limited to, statements about the benefits of themerger, including future financial and operating results, the companys plans,

objectives and expectations and other intentions and other statements that are nothistorical facts. Additional factors that could cause the companys results to differmaterially from those described in the forward-looking statements are described inperiodic and current reports filed with the SEC from time to time and available on theSEC's internet website at www.sec.gov or at www.ricksinvestor.com. Unless requiredby law, Rick's does not undertake any obligation to update publicly any forward-lookingstatements, whether as a result of new information, future events, or otherwise.
http://www.sec.gov/http://www.ricksinvestor.com/http://www.ricksinvestor.com/http://www.sec.gov/


3/15

Ricks Cabaret Subsidiaries Own

Premier Upscale Gentlemens Clubs

22 Clubs in Major Markets: New York City, Miami,

Dallas-Ft. Worth, Philadelphia, Houston,

Minneapolis, Indianapolis

Key Brands: Ricks Cabaret + Tootsies + Club Onyx

High Margins & Strong Cash Flow

Compound Annual EBITDA Growth

Last 5 Years = 46%

OVERVIEW


4/15

RICK SNAPSHOT

Market NASDAQ Global

Shares Outstanding 9.7 mm

52 Week Share Price Range : $6.20-$11.45

Institutional Ownership (09-21-11) 25.75%

Insider Ownership(09-21-11) 12.62%


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IT executive, Director of Internet Division

Degree in Aeronautical Science from Texas State Technical College

OUR MANAGEMENT TEAMBackgroundTitleName

20+ Years Hospitality Industry Management Experience

Business Admin Degree Houston CCDirector of OperationsEd Anakar

20+ years industry experience as owner/operator

Founder / Director of Adult Club Executives (ACE)President, CEO & DirectorEric Langan

Audit Partner, KPMG; CFO of CDT Systems, Inc. (CDTN),

Texas State University (1972)

CFOPhillip K. Marshall

Former Exec VP Thomson Financial/Publisher American Banker

Dartmouth College / University of Southampton (UK)Investor & Media Relations

VP/DirectorTravis Reese

Allan Priaulx


6/15

WHAT MAKES RICKS UNIQUE?

Strong Financial Controls & Proprietary CashManagement Similar to Casino Industry

Most Entertainers Are Independent

Contractors Who Pay Us a Facilities Use Fee Quality Control = Enhanced Brand Value

Concierge Hospitality Model + Customer

Service Builds Loyalty, Assures RepeatBusiness by Cultivating VIP Customers

High Barriers to Entry for Competitors


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STRONG PERFORMANCEHIGH EARNINGS QUALITY

(First Nine Months through 6/30/2011)($000 omitted)

Revenues Sales of alcoholic beverages $ 24,312 Sales of food and merchandise 5,469 Service revenues 28,637 Internet revenues 359 Media revenues 585 Other 2,678 Total Revenues through 6/30/2011 $ 62,040

Y-o-Y Revenue Growth 12.9%Income From Continuing Operations 8,191

Y-o-Y Continuing Ops Income Growth 53.2%

Adjusted EBITDA* $ 18,447Y-o-Y Adjusted EBITDA Growth 33.6%

*Adjusted EBITDA is a financial statement measure that was not derived in accordance with GAAP. We use adjusted EBITDA (earnings fromcontinuing operations before interest expense, income taxes, depreciation, amortization and impairment charges) as a non-GAAP performancemeasure. In calculating adjusted EBITDA, we exclude our largest recurring non-cash charge, depreciation, amortization and impairmentcharges. 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, we exclude interest cost in our calculation ofadjusted EBITDA. The results are, therefore, without consideration of financing alternatives of capital employed. We use adjusted EBITDA asone guideline to assess our unleveraged performance return on our investments. Adjusted EBITDA is also the target benchmark for ouracquisitions of nightclubs.


9/15

9 MO 11 vs. 10SAME STORE

Same Club Sales* $54.7mm in first 9months 11, vs. $52.0mm in 10, a 5.1%Gain

Net Same Club Income* First 9 months

$17.6mm, vs. $14.7mm, up 19.6% Dueto Increased Revenue, Tighter OverallSpending Controls

*Without Las Vegas


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9 Mo 11 OPERATING HIGHLIGHTS

REVENUE INCREASES

Aggressive Marketing Campaigns DuringNBA Championship series in Dallas &

Miami Strong Quarters in Miami & New York

City, San Antonio, Minneapolis Selective Price Increases Contributions from New Clubs


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9 Mo11 OPERATING HIGHLIGHTS

BOTTOM LINE

Continuing Focus on Improving the

Bottom Line Is Paying Off

Continue to Manage OperatingExpenses

Better Use of Purchasing Power Regional Efficiencies Lean Corporate Structure Elimination of Las Vegas Drag


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CURRENT DEBT OVERVIEW

Converted $9.7mm Convertible Debentures to1.3mm Shares of RICK so far in 2011

Tootsies Cabaret $10mm Owner Purchase NoteNow Amortizing and Reduced to $9.6mm

Real Estate Backed Loans = $16.0mm;

Common Stock Subject to Put Rights; Maximum$4.0mm if Stock Price were Zero (as of 6-30-11)Using Free Cash Flow to Continue Buying BackPuts and Taking Stock Out of Market(Meanwhile Enjoying Interest Free Debt)


13/15

New York City Continues

Strong Growth, Month-on-Month Gains

Quality Customers in the Club &More Frequent Visits by Regulars

Continually rated #1 Club in NYC

RECORD MONTHS


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GROWTH STRATEGY

We Are Generating ~ $1.5mm CashMonthly

Marketplace Perceives Us As THESerious Buyer

We Will Continue to Acquire in the 3-5xEBITDA Purchase Range

Seeking Properties That Will BeAccretive to Earnings

Will Consider Greenfield


15/15

THANK YOU!Visit Ricks Cabaret NYC for Additional

Due Diligence * 50 W. 33rd St.

For more information please visitwww.ricksinvestor.com
http://www.ricksinvestor.com/http://www.ricksinvestor.com/http://www.ricksinvestor.com/

Rick's Cabaret BMC 092711 F

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