CORRECTING and REPLACING VCG Holding Corp. Announces the Purchase of the Assets of Regale, Inc. in Raleigh, North Carolina
April 17 2007 - 9:56AM
Business Wire
Fifth graph, second sentence of release should read: We reported
four levels of earning in our 10KSB for fiscal 2005 and 2006. (sted
We reported four levels of earning in our 10KSB for fiscal 2006 and
2005.). Fifth graph, forth sentence of release should read: The
following table lists all reported earnings per shares for the
years ended December 31, 2005 and 2006. (sted The following table
lists all reported earnings per shares for the years ended December
31, 2006 and 2005.). Additionally, add the 2005 and 2006 headers
above the table. The corrected release reads: VCG HOLDING CORP.
ANNOUNCES THE PURCHASE OF THE ASSETS OF REGALE, INC. IN RALEIGH,
NORTH CAROLINA 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 2005 and 2006. 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, 2005 and 2006. 2005� 2006�
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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