VCG Holding Corp. (NASDAQ: VCGH), a growing and leading
consolidator and operator of adult nightclubs, today announced
financial results for the first quarter ended March 31, 2008. Total
revenue, for the three months ended March 31, 2008, increased 109%
to $13.3 million from $6.4 million for the same 2007 period. Cash
flow from operating activities was up 69% from $1.1 million to $1.8
million. Income from continuing operations of $2.9 million for the
three months ended March 31, 2008 was up 102% compared with $1.4
million for the same period last year. Net income was $1.3 million,
or $0.08 per basic share and $0.07 per fully diluted share on a
fully taxed basis for the three months ended March 31, 2008. For
the same period in 2007, net income was $1.0 million, or $0.07 per
basic and fully diluted share. Comparable store sales increased
6.4% for the same 12 stores that VCG operated during the 2007 first
quarter. Total income taxes in the 2008 first quarter were
significantly higher ($650,000) compared to the same period of
2007, which were $150,000. Had the first quarter of 2007 been fully
taxed, the first quarter 2008 EPS fully diluted earnings per share
would have been $0.07 versus $0.05 or a 40% increase in 2008 fully
taxed earnings per share. The number of weighted average shares
outstanding increased by 19% from the first quarter of 2007 to the
first quarter of 2008 and the number of fully diluted weighted
shares outstanding increased by 18% from the issuance of common
stock for specific acquisitions and for certain services. Troy
Lowrie, Chairman and Chief Executive Officer, stated, �2008 is off
to a great start with our first quarter results. Despite harsh
winter weekends in the Midwest and Northeast, organic growth of
same store sales was above expectations and that trend has been
continuing strong in the second quarter as well as the increases of
cash flow from operating activities. As previously, announced, the
Jaguar acquisition that closed April 14, will produce approximately
$5.0 million in annual revenues if we had owned it since the
beginning of this year and an annual EBITDA of $2.0 million. As
stated previously, including this acquisition, the Company�s 2008
revenues from existing stores owned by the company should continue
to approximate $57.0 million in revenue and $16.0 million of
EBITDA. While we continue to affirm our guidance of $0.40 -0.43 per
share for 2008�s earnings with just existing stores, with the
robust start of the second quarter, we are very optimistic about
the Company�s business outlook for the remainder of the year.
Moreover, the earnings growth leverage of our business model, our
previously announced acquisitions in process and the long-term
pipeline of acquisition opportunities to provide growth, we
continue to believe that the Company is undervalued.� Management
will host a webcast and conference call to discuss the
first-quarter and three month results today, Monday, May 12, 2008
at 2:00 p.m. ET. The presentation can be accessed at vcgh.com and
clicking on the investor relations header, or participants can call
1-877-591-4949 (domestic) or 1-719-325-4894 (international). A
recording of the conference call will be available until midnight
May 15, 2008 by dialing 1-888-203-1112, or 1-719-457-0820 for
international callers, and entering the confirmation number of
9146969. About VCG Holding Corp. VCG Holding Corp. is an owner,
operator and consolidator of adult nightclubs throughout the United
States. The Company currently owns 19 adult nightclubs and one
upscale dance lounge. The nightclubs are located in Indianapolis,
IN, St. Louis, MO, Denver and Colorado Springs, CO, Ft. Worth and
Dallas, TX, Raleigh, NC, Minneapolis, MN, Louisville, KY, Portland,
ME and Miami, FL. Forward-Looking Statements: Statements contained
in this press release concerning future results, performance or
expectations are forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section
21E of the Securities Exchange Act of 1934, as amended. These
statements include statements regarding the intent, belief or
current expectations of the Company and members of its management
team, as well as assumptions on which such statements are based.
All forward-looking statements in this press release are based upon
information available to the Company on the date of this press
release. Forward-looking statements involve a number of risks and
uncertainties, and other factors, that could cause actual results,
performance or developments to differ materially from those
expressed or implied by those forward-looking statements including
the following: failure of facts to conform to necessary management
estimates and assumptions; the Company�s ability to identify and
secure suitable locations for new nightclubs on acceptable terms,
open the anticipated number of new nightclubs on time and within
budget, achieve anticipated rates of same-store sales, hire and
train additional nightclub personnel and integrate new nightclubs
into its operations; the continued implementation of the Company�s
business discipline over a large nightclub base; unexpected
increases in cost of sales or employee, pre-opening or other
expenses; the economic conditions in the new markets into which the
Company expands and possible uncertainties in the customer base in
these areas; fluctuations in quarterly operating results;
seasonality; changes in customer spending patterns; the impact of
any negative publicity or public attitudes; competitive pressures
from other national and regional nightclub chains; business
conditions, such as inflation or a recession, or other negative
effect on nightclub patterns, or some other negative effect on the
economy, in general, including (without limitation) growth in the
nightclub industry and the general economy; changes in monetary and
fiscal policies, laws and regulations; war, insurrection and/or
terrorist attacks on United States soil; and other risks identified
from time to time in the Company�s SEC reports, including the
Annual Report on Form 10-KSB for 2007, Quarterly Reports on Form
10-Q and Current Reports on Form 8-K, registration statements,
press releases and other communications. The Company undertakes no
obligation to update or revise forward-looking statements to
reflect changed assumptions, the occurrence of unanticipated events
or changes to future operating results over time. Financial Tables:
Summary Financial Information VCG HOLDING CORP. INCOME STATEMENT
DATA � � � Three Months Ended � � March 31, 2007 � March 31, 2008
Total Revenue � $ 6,387,396 � � $ 13,325,955 � Cost of Sales � �
883,616 � � � 1,848,547 � SG&A � � 4,091,285 � � � 8,612,439 �
Income from operations � � 1,412,495 � � � 2,864,969 � Other income
(expense) � � (201,313 ) � � (769,932 ) Income from continuing
operations before income taxes � � 1,211,182 � � � 2,095,037 �
Total income tax expense � � 150,000 � � � 650,002 � Minority
interest � � (33,244 ) � � (111,383 ) Net income from continuing
operations � � 1,027,938 � � � 1,333,652 � Loss from discontinued
operations � � (15,085 ) � � 0 � Net income � $ 1,012,853 � � $
1,333,652 � Basic income per common share � $ 0.07 � � $ 0.08 �
Fully diluted income per common share � $ 0.07 � � $ 0.07 �
Weighted average shares outstanding � � 14,606,729 � � � 17,431,035
� Fully diluted weighted average shares outstanding � � 15,213,684
� � � 17,932,402 � VCG HOLDING CORP. SUMMARIZED BALANCE SHEET DATA
� � December 31, March 31, 2007 2008 Total Current Assets $
5,047,086 $ 5,590,460 Property, Plant, Equip (net) 24,517,181
25,022,323 Other Assets � 64,633,289 � 65,164,266 Total Assets $
94,197,556 $ 95,777,049 � Total Current Liabilities $ 11,904,008 $
11,308,299 Long-term Liabilities (includes capitalized leases)
22,566,274 22,140,829 Minority Interest � 3,662,767 � 3,605,606
Total Liabilities 38,133,049 37,054,734 Total Stockholder's Equity
� 56,064,507 � 58,722,315 Total Liabilities and Stockholders'
Equity $ 94,197,556 $ 95,777,049
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