VCG Holding Corp Announces Earnings Guidance for 2007, 2008, and 2009
January 10 2007 - 4:12PM
Business Wire
VCG Holding Corp. (AMEX: PTT), a leading consolidator and operator
of adult nightclubs, announced today its earnings guidance for its
fiscal years ending December 31, 2007, 2008, and 2009. The
estimated total consolidated revenue for the fiscal year ending
December 31, 2007 is $40.8 million, the estimated total
consolidated revenue for the fiscal year ending December 31, 2008
is $66.3 million, and the estimated consolidated revenue for the
year ending December 31, 2009 is $92.0 million. The Company
estimates that the fiscal year ending December 31, 2007 net income
to be $8.6 million, or $0.50 per share, estimated net income to
$13.2 million, or $0.72 per share, for the fiscal year ending
December 31, 2008, and estimated net income to $18.2 million, or
$0.97 per share, for the fiscal year ending December 31, 2009. The
estimated net income for the year ending December 31, 2007 includes
income tax expense lower than the normal rate because of net
operating loss carry forwards and tax credits forward and the
affect of these factors is approximately $0.12 per share. The
Company also estimates its income from operations to be $11.7
million for the fiscal year ending December 31, 2007, estimates its
income from operations to be $22.2 million for the fiscal year
ending December 31, 2008, and estimated income from operations to
be $29.7 million for the same period of 2009. Net operating cash
flow, defined as income from operations plus depreciation and
amortization, is estimated to be $13.0 million for the fiscal year
ending December 31, 2007, $24.2 million for the fiscal year ending
December 31, 2008 and $32.5 million for the fiscal year ending
December 31, 2009. The Company�s estimates are based on
management�s budgets and estimates for its eight owned clubs, and
the five managed clubs being acquired in 2007. We have assumed that
we will acquire the clubs in Chicago and Minnesota that have
letters of intents and expected to be purchased in the first
quarter of 2007 and two other acquisitions in 2007. The estimates
for 2008 are based on management�s budgets and estimates for the
2007 clubs and acquisition plans for five additional club purchases
in 2008; and, the estimates for 2009 are based on management�s
budgets and estimates for the 2008 clubs and acquisition plans for
five additional club purchases in 2009. Other factors that could
impact these earnings estimates could include and are not limited
to our ability to complete the planned acquisitions, convert the
minority interest owners, obtain satisfactory financing, and obtain
the expected grow rate in our existing clubs. The Company does
anticipate normal debt service for the years ended December 31,
2007, 2008 and 2009. VCG anticipates the sale of common stock
during the year ended December 31, 2007 as part of its financing
plan. If any changes in these activities were to occur during the
periods in question the results of the Company�s operations would
be affected and the Company would amend the guidance estimates.
Troy Lowrie, Chairman and Chief Executive Officer of VCG Holding
Corp., stated, �We have continued to execute upon our operating
strategy and will continue to reduce our debt, look for additional
ways to improve earnings and increase revenue. We plan to continue
to execute upon our two-prong growth strategy to increase
shareholder value by acquiring nightclubs within our existing
markets or in other desirable locations at a purchase price of less
than four times cash flow and managing and improving our existing
club�s performance to maintain same store growth and increase
profitability.� About VCG Holding Corp. VCG Holding Corp. is an
owner, operator and consolidator of adult nightclubs throughout the
United States. The Company currently owns eight adult nightclubs,
one upscale dance lounge and operates five other adult nightclubs
under management agreements. The owned and managed clubs are
located in Indianapolis, St. Louis, Denver, Colorado Springs,
Phoenix, and Louisville. 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 2005,
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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