DENVER, April 15, 2010 (GLOBE NEWSWIRE) -- VCG Holding Corp. (Nasdaq:VCGH) ("VCG"), a growing and leading consolidator and operator of adult nightclubs, today provided an update to investors.
Troy Lowrie, Chairman and Chief Executive Officer of VCG, commented, "The events of the last several quarters have afforded us the opportunity to take a hard look at our business and challenge ourselves to find ways to drive sustained, significant operating improvement. I'm very proud of the distinguishable results generated by our employees, as well as the continuing patronage of our customers. We have entered 2010 both energized and confident that our distinct business model, customer-centric operating focus, and team of dedicated professionals will allow us to continue to succeed in a vibrant national marketplace. As reflected in our results for 2009, we have taken the steps necessary to mitigate the impact of a weak national economy, while reporting profitable operations, strong free cash flow and an improved debt profile."
Mr. Lowrie noted:
- VCG implemented a number of new, club-level revenue streams during 2009 to help offset customer migration to less expensive "C" venues from "A" and "B" locations. The Company's success in this regard was reflected by a 6.3% increase in service revenue during 2009.
- Operating income for 2009 was $5.1 million, and net income totaled $0.7 million, or $0.04 per share. Excluding $2.0 million of non-cash impairment charges and $0.9 million in costs related to advisory fees and change in control, operating income was $8.1 million and net income was $3.7 million, or $0.21 per share.
- Adjusted EBITDA (excluding the above-referenced non-cash impairment charges) was $8.4 million in 2009.
- Total long term debt declined to $30.8 million at December 31, 2009 from $36.5 million at December 31, 2008.
- Cash at December 31, 2009 improved to $2.7 million.
- VCG repurchased 444,655 shares of common stock at an average price per share of $1.96.
Mr. Lowrie concluded, "During 2010, VCG will continue to focus on generating free cash flow, optimizing the operations of its 20 gentlemen's clubs, and further reducing long term debt. We will also continue to review, on a very selective basis, strategic acquisitions in new and existing markets. We will apply stringent criteria to any proposed transaction, which will include that the acquisition be immediately accretive, enhance the stability and visibility of our cash flows, and strengthen our management team."
ABOUT VCG HOLDING CORP.
VCG Holding Corp. is an owner, operator, and consolidator of adult nightclubs throughout the United States. The Company currently owns 20 adult nightclubs. The nightclubs are located in Anaheim, Indianapolis, St. Louis, Denver, Colorado Springs, Ft. Worth, Dallas, Raleigh, Minneapolis, Louisville, Miami, and Portland, ME.
The VCG Holding Corp. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=5105
FORWARD LOOKING STATEMENT
Certain statements in this release are forward-looking statements within the meaning of the Securities Litigation Reform Act of 1995. Such statements are based on current expectations, estimates and projections about the Company's business based, in part, on assumptions made by management. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements due to numerous factors identified from time to time in the Company's reports with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the year ended December 31, 2009. All forward-looking statements attributable to us or any persons acting on our behalf are expressly qualified in their entirety by these cautionary statements. All guidance and forward-looking statements in this press release are made as of the date hereof and we do not undertake any obligation to update any forecast or forward-looking statements, except as may be required by law.