EX-99.1
10
a07-31953_4ex99d1.htm
EX-99.1
Exhibit 99.1
PRESS
RELEASE
VCG Holding Corp. Announces Completion of Purchase of LaBoheme
Gentlemen's Cabaret in Denver, CO
-
5
th
Acquisition in Denver
-
12
th
Acquisition this Year
DENVER (BUSINESS WIRE) December 26,
2007 -
VCG Holding Corp. (AMEX: PTT)
, a
growing and leading consolidator and operator of adult nightclubs, today
announced that it has completed its previously announced acquisition of
LaBoheme Gentlemen's Cabaret in Denver, CO.
The definitive agreement for this acquisition was previously announced
in a press release dated December 6, 2007.
The Company received its liquor license and took over full operations on
December 21, 2007.
VCG Holding has purchased
all of the assets including intellectual property from 1443 Corp., the owner of
LaBoheme, for $5.0 million. The Company
paid 3.6 times EBITDA and funded the acquisition through cash and lines of
credit. In the previous 12 months, the
club generated revenues of approximately $3.5 million and operating profits on
a pro forma basis in excess of $1.4 million.
LaBoheme is a 12,000
square feet club and is directly across from the Denver convention center's
main entrance. The club's EBITDA for
2007 is expected to be $1.4 million with add backs. VCG Holding's management estimates that EBITDA
for 2008 will be over $1.5 million, as a result of the major events in the
Denver area for 2008 and the realization of operating and marketing
efficiencies. Further, the Company
expects to realize similar operating and marketing efficiencies at its other
Denver area clubs.
Troy Lowrie, Chairman and
CEO of VCG Holding, stated, "With this acquisition VCG Holding now has five
Denver area locations, including the only two downtown locations in the
city. We expect all of our locations in
Denver to have a very good year in 2008 with a number of events occurring in
the city including the Democratic National Convention in August, as well as
other major conventions.
"The LaBoheme acquisition
demonstrates our business plan of clustering club locations in major metropolitan
markets. This technique allows key
management to oversee multiple locations and gain efficiencies in our
operations. We now have five locations
in both Denver and St. Louis, and we expect to expand our cluster operating
model to the other cities during the next few years. This acquisition brings the total number of
acquisitions in 2007 to 12 clubs. Being
one of a few adult entertainment consolidators, we look forward to more
accretive acquisitions in 2008 and beyond", concluded Mr. Lowrie.
About VCG Holding Corp.
VCG Holding Corp. is an
owner, operator and consolidator of adult nightclubs throughout the United
States. The Company currently owns 19 adult nightclubs and one upscale dance
lounge. The night clubs are located in Indianapolis, IN, St. Louis, MO, Denver
and Colorado Springs, CO, Ft. Worth and Dallas, TX, Raleigh, NC, Minneapolis,
MN, Louisville, KY, Portland, ME, and Miami, FL.
390 Union Blvd. | Suite
540 | Lakewood, CO 80228 | ph: 303.934.2424 | fx: 303.922.0746 | 1.800.627.8243
|
www.vcgh.com
Forward-Looking Statements:
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-KSB
for the year ended December 31, 2006. 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.
Contact:
Troy H. Lowrie, CEO
Brent Lewis, CFO
VCG Holding Corporation
390 Union Blvd, Suite 540
Lakewood, Colorado 80228
Telephone
303.934.2424
Facsimile
303-922.0746
Email:
tlowrie@vcgh.com
blewis@vcgh.com

EX - 99 . 1 10 a07 - 31953 _ 4ex99d1 . htm EX - 99 . 1 Exhibit 99 . 1 PRESS RELEASE VCG Holding Corp . Announces Completion of Purchase of LaBoheme Gentlemen 's Cabaret in Denver , CO - 5 th Acquisition in Denver - 12 th Acquisition this Year DENVER ( BUSINESS WIRE ) December 26 , 2007 - VCG Holding Corp . ( AMEX : PTT ) , a growing and leading consolidator and operator of adult nightclubs , today announced that it has completed its previously announced acquisition of LaBoheme Gentlemen 's Cabaret in Denver , CO . The definitive agreement for this acquisition was previously announced in a press release dated December 6 , 2007 . The Company received its liquor license and took over full operations on December 21 , 2007 . VCG Holding has purchased all of the assets including intellectual property from 1443 Corp . , the owner of LaBoheme , for $ 5.0 million . The Company paid 3 . 6 times EBITDA and funded the acquisition through cash and lines of credit . In the previous 12 months , the club generated revenues of approximately $ 3.5 million and operating profits on a pro forma basis in excess of $ 1.4 million . LaBoheme is a 12,000 square feet club and is directly across from the Denver convention center 's main entrance . The club 's EBITDA for 2007 is expected to be $ 1.4 million with add backs . VCG Holding 's management estimates that EBITDA for 2008 will be over $ 1.5 million , as a result of the major events in the Denver area for 2008 and the realization of operating and marketing efficiencies . Further , the Company expects to realize similar operating and marketing efficiencies at its other Denver area clubs . Troy Lowrie , Chairman and CEO of VCG Holding , stated , " With this acquisition VCG Holding now has five Denver area locations , including the only two downtown locations in the city . We expect all of our locations in Denver to have a very good year in 2008 with a number of events occurring in the city including the Democratic National Convention in August , as well as other major conventions . " The LaBoheme acquisition demonstrates our business plan of clustering club locations in major metropolitan markets . This technique allows key management to oversee multiple locations and gain efficiencies in our operations . We now have five locations in both Denver and St . Louis , and we expect to expand our cluster operating model to the other cities during the next few years . This acquisition brings the total number of acquisitions in 2007 to 12 clubs . Being one of a few adult entertainment consolidators , we look forward to more accretive acquisitions in 2008 and beyond " , concluded Mr . Lowrie . About VCG Holding Corp . VCG Holding Corp . is an owner , operator and consolidator of adult nightclubs throughout the United States . The Company currently owns 19 adult nightclubs and one upscale dance lounge . The night clubs are located in Indianapolis , IN , St . Louis , MO , Denver and Colorado Springs , CO , Ft . Worth and Dallas , TX , Raleigh , NC , Minneapolis , MN , Louisville , KY , Portland , ME , and Miami , FL . 390 Union Blvd. | Suite 540 | Lakewood , CO 80228 | ph : 303 . 934 . 2424 | fx : 303 . 922 . 0746 | 1 . 800 . 627 . 8243 | www.vcgh.com Forward - Looking Statements : 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 - KSB for the year ended December 31 , 2006 . 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 . Contact : Troy H . Lowrie , CEO Brent Lewis , CFO VCG Holding Corporation 390 Union Blvd , Suite 540 Lakewood , Colorado 80228 Telephone 303 . 934 . 2424 Facsimile 303 - 922 . 0746 Email : tlowrie@vcgh.com blewis@vcgh.com
O O O O O O O O O O O O O O O O O O O O O O O O B-Parties.BUYING_COMPANY I-Parties.BUYING_COMPANY I-Parties.BUYING_COMPANY I-Parties.BUYING_COMPANY O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O B-Parties.BUYING_COMPANY I-Parties.BUYING_COMPANY I-Parties.BUYING_COMPANY I-Parties.BUYING_COMPANY O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O B-Parties.BUYING_COMPANY I-Parties.BUYING_COMPANY O O O O O O O O O O B-Parties.SELLING_COMPANY I-Parties.SELLING_COMPANY I-Parties.SELLING_COMPANY O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O B-Generic_Info.ANNUAL_REVENUES I-Generic_Info.ANNUAL_REVENUES O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O B-Parties.BUYING_COMPANY I-Parties.BUYING_COMPANY O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O