VCG Holding Corp. Announces the Purchase of the Assets of Regale, Inc. in Raleigh, North Carolina
April 17 2007 - 9:12AM
Business Wire
VCG Holding Corp.(VCG) (AMEX:PTT), a nationwide owner/operator of
adult nightclubs, announced today that it has completed the
purchase of the assets of Regale, Inc. in Raleigh, North Carolina
on April 16, 2007. This purchased was previously announced as a
Southeast United States location. The club will operate under the
name �The Men�s Club�� under a trademark license with Hospitality
Licensing Corporation (HLC). HLC affiliates operate and maintain
nightclub operations of The Men�s Club� in Dallas, Houston and
Charlotte. The Men�s Club� has additional locations in Mexico City
and Guadalajara Mexico under an International License and Franchise
Agreement. The purchase the assets of the Raleigh location was
completed today under the terms of the purchase Agreement. The
purchase price was $10,100,000 cash and 9,747 shares of VCG common
stock. All contingencies were satisfied and all applicable permits
and licenses have been transferred to VCG�s subsidiary, Raleigh
Restaurant Concepts Inc. Based on due diligence, it is expected
that the Raleigh location will contribute $6,450,000 in gross
revenue and $3,000,000 in pretax cash flow annually. �This
acquisition is not only highly accretive, but also adds another
premier club to our upscale portfolio of clubs. The proceeds of the
recent private placement funded this acquisition. We are pleased to
have acquired such a great location with close to 50% pre tax
margins,� stated Troy Lowrie CEO and Chairman of VCG. Management
believes this acquisition will enable the company to meet the
previously disclosed guidance. About VCG Holding Corp. VCG Holding
Corp. is an owner, operator and consolidator of adult nightclubs
throughout the United States. The Company currently owns twelve
adult nightclubs and one upscale dance lounge. The night clubs are
located in Indianapolis, St. Louis, Denver, Colorado Springs, and
Louisville. Clarification We reported our fiscal 2006 earnings in a
press release April 3, 2007. We reported four levels of earning in
our 10KSB for fiscal 2006 and 2005. The press release was unclear
in its reporting of each of the levels of the earnings and earnings
per share. The following table lists all reported earnings per
shares for the years ended December 31, 2006 and 2005. Net income
from continuing operations � $ 718,360� � $ 1,520,363� Net income �
$ 414,479� � $ 1,115,676� Preferred dividend � $ (1,685,730) � $
(878,843) Net (loss) applicable to common shareholders � $
(1,271,251) � $ 236,833� Earnings per share � � � � Net income from
continuing operations � $ 0.09� � $ 0.17� Net income � $ 0.05� � $
0.13� Preferred dividend � $ (0.20) � $ (0.10) Net (loss)
applicable to common shareholders � $ (0.15) � $ 0.03�
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 2006, Quarterly Reports on Form
10-QSB 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.
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