VCG Holding Corp. Announces Record Second Quarter Results

  
    
  
  
    
      VCG Holding Corp. (AMEX:PTT), a leading consolidator and operator of 
      adult nightclubs, today announced its financial results for the quarter 
      ended June 30, 2007.
    
    
      Total revenues for the three months ended June 30, 2007 increased 138% 
      to $9.52 million from $4.0 million for the same fiscal period 2006. Net 
      cash provided by operating activities in the three months ended June 30, 
      2007 totaled $2.4 million, up substantially from $114,000 for the three 
      months ended June 30, 2006.
    
    
      The Company reported income applicable to common shareholders of $1.74 
      million, or $0.11 per share, for the three months ended June 30, 2007 as 
      compared with income applicable to common shareholders of $315,000 or 
      $0.04 per share for the second quarter of 2006.
    
    
      As of June 30, 2007, VCG had stockholder's equity of $41.7 million as 
      compared to $12.8 million at December 31, 2006.
    
    
      The Company had pro forma income that included the results from its 
      seven acquisitions and the related anticipated cost of financing. On a 
      pro forma basis, revenues for the three months ended June 30, 2007 would 
      have been $10.6 million. Pro forma income applicable to common 
      shareholders for the second quarter would have been $2.02 million, or 
      $0.12 per share.
    
    
      “We are pleased with the strong increases in 
      revenues and net income that we reported in our second quarter,” 
      said Chairman and CEO Troy Lowrie. “These 
      results indicate that our acquisition strategy is working and we are 
      confident that we have untold opportunities to grow through accretive 
      acquisitions. We are reaffirming our EPS guidance for 2007 of $0.43 per 
      share and our 2008 run rate EPS of $0.68 per share. In addition, the 
      filing of the acquisition 8-K/A’s and this 
      10QSB should bring us in compliance with the American Stock Exchange.”
    
    
      Management will host a webcast and conference call to discuss second 
      quarter results Wednesday August 15th at 9:00 a.m. ET. The presentation 
      can be accessed at www.viavid.net, 
      or participants can call 1-888-802-2269 (domestic) or 1-913-312-1272 
      (international). A recording of the conference call will be available 
      until August 22, 2007 by dialing 1-888-203-1112 or 1-719-457-0820 for 
      international callers, and entering the passcode of 5233343.
    
    
      
        
          
            Financial Tables:
          
        
      
      
        
        
        
           
        
      
      
        
          
            Summary Financial Information
          
        
        
        
      
      
        
        
        
        
        
        
        
          June 30,
        
        
        
        
        
      
      
        
          Income Statement Data
        
        
        
        
        
        
          2006
        
        
        
        
        
        
          2007
        
        
        
        
          % Change
        
      
      
        
          Total Revenue
        
        
        
        
          $
        
        
          7,827,455
        
        
        
        
          $
        
        
          15,904,372
        
        
        
        
          103.2
        
      
      
        
          Cost of Sales
        
        
        
        
        
        
          1,171,978
        
        
        
        
        
        
          2,173,770
        
        
        
        
          85.5
        
      
      
        
          SG&A
        
        
        
        
        
        
          4,951,363
        
        
        
        
        
        
          9,883,582
        
        
        
        
          99.6
        
      
      
        
          Income from operations
        
        
        
        
        
        
          1,704,114
        
        
        
        
        
        
          3,847,020
        
        
        
        
          82.0
        
      
      
        
          Interest Expense
        
        
        
        
        
        
          681,676
        
        
        
        
        
        
          1,118,686
        
        
        
        
          64.1
        
      
      
        
          Net Income from continuing operations
        
        
        
        
        
        
          1,033,504
        
        
        
        
        
        
          2,774,926
        
        
        
        
          168.5
        
      
      
        
          Preferred Dividend
        
        
        
        
        
        
          447,256
        
        
        
        
        
        
          --
        
        
        
        
          N/A
        
      
      
        
          Net income applicable to common shareholders
        
        
        
        
          $
        
        
          455,513
        
        
        
        
          $
        
        
          2,752,203
        
        
        
        
          504.2
        
      
      
        
          Net Income from continuing operations per share
        
        
        
        
          $
        
        
          0.12
        
        
        
        
          $
        
        
          0.17
        
        
        
        
        
      
      
        
          Preferred Dividend
        
        
        
        
        
        
          (0.05)
        
        
        
        
        
        
          --
        
        
        
        
        
      
      
        
          Net (loss) applicable to common shareholders
        
        
        
        
          $
        
        
          0.05
        
        
        
        
          $
        
        
          0.17
        
        
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Balance Sheet Data
        
        
        
        
        
        
          
            December 31,2006
          
          
             
          
        
        
        
        
        
        
          
            June 30,2007
          
          
             
          
        
        
        
        
        
      
      
        
          Current Assets
        
        
        
        
          $
        
        
          3,518,641
        
        
        
        
          $
        
        
          6,820,523
        
        
        
        
        
      
      
        
          Net Property, Plant, and Equipment
        
        
        
        
        
        
          12,025,627
        
        
        
        
        
        
          22,002,204
        
        
        
        
        
      
      
        
          Other Assets
        
        
        
        
        
        
          19,535,430
        
        
        
        
        
        
          44,882,449
        
        
        
        
        
      
      
        
          Total Assets
        
        
        
        
          $
        
        
          35,079,698
        
        
        
        
          $
        
        
          73,705,176
        
        
        
        
        
      
      
        
          Current Liabilities
        
        
        
        
          $
        
        
          3,783,339
        
        
        
        
          $
        
        
          4,522,386
        
        
        
        
        
      
      
        
          Total Liabilities
        
        
        
        
          $
        
        
          21,313,043
        
        
        
        
          $
        
        
          28,381,546
        
        
        
        
        
      
      
        
          Preferred Stock
        
        
        
        
          $
        
        
          325,000
        
        
        
        
          $
        
        
          --
        
        
        
        
        
      
      
        
          Shareholders Equity
        
        
        
        
          $
        
        
          12,795,623
        
        
        
        
          $
        
        
          41,662,889
        
        
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Cash Flow Data
        
        
        
        
        
        
          June 30,

          
            2006
          
        
        
        
        
        
        
          June 30,

          
            2007
          
        
        
        
        
        
      
      
        
          Cash Flow from Operating Activities
        
        
        
        
          $
        
        
          1,237,436
        
        
        
        
          $
        
        
          3,460,040
        
        
        
        
        
      
      
        
          Cash Flow from (used) Investing Activities
        
        
        
        
          $
        
        
          334,179
        
        
        
        
          $
        
        
          (27,444,660)
        
        
        
        
        
      
      
        
          Cash Flow from (used) Financing Activities
        
        
        
        
          $
        
        
          (1,418,567)
        
        
        
        
          $
        
        
          28,169,242
        
        
        
        
        
      
    
    
      About VCG Holding Corp.
    
    
      VCG Holding Corp. is an owner, operator and consolidator of adult 
      nightclubs throughout the United States. The Company currently owns 
      fourteen adult nightclubs and one upscale dance lounge. The night clubs 
      are located in Indianapolis, St. Louis, Denver, Colorado Springs, 
      Raleigh, Minneapolis, 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 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.