VCG Holding Corp. Announces 2009 Third Quarter Financial Results
samsung1
Ohio
DENVER, Nov. 12, 2009 (GLOBE NEWSWIRE) -- VCG Holding Corp. (Nasdaq:VCGH), a growing and leading consolidator and operator of adult nightclubs, today announced financial results for the third quarter ended September 30, 2009 (see attached tables).
Troy Lowrie, Chairman and Chief Executive Officer, stated, "We achieved solid operating results for the third quarter and first nine months of 2009. Despite a challenging economic environment, we generated nearly $14.0 million in revenues for the third quarter. The elasticity of our tiered venue model -- where a decline in revenues caused by fewer patrons at our high-amenity A clubs is offset by the increased margins generated at our more affordable B and C venues - in combination with improved cost efficiencies throughout the Company has allowed us to remain profitable, produce EBITDA margins of 17.1%, and generate free cash flow of $3.8 million for the first nine months of 2009."
Third Quarter Financial Results
Total revenue for third quarter of 2009 declined to $13.9 million from $15.2 million in the third quarter of 2008. The decline in revenue was due to lower sales of alcohol, food and merchandise, and service revenue, which includes wristband sales, suite rentals, tab and tip fees, and dance dollar and boutique programs.
Cost of goods sold (the cost of alcohol, food and merchandise) decreased by approximately 18.4% or $0.3 million compared to the third quarter of 2008. This decrease was larger than the corresponding revenue decrease for the quarter, indicating stronger gross profit margins which reflect the benefits of the Company's tiered venue operating model, where the Company's "C" clubs have a lower cost of sales percentage and higher gross profit compared to clubs that serve alcohol.
Total operating expenses increased 4.0% to $11.8 million from $11.4 million in the third quarter of 2008. The increase in total operating expenses was mostly due to higher taxes and permit fees, increased rent, insurance, and other professional fees. This increase was offset by decreases in cost of goods sold, charge card and bank fees, legal fees, advertising and marketing, utilities, repair and maintenance, and other expenses, including janitorial, supplies and automotive expenses.
Operating income in the 2009 third quarter was $2.0 million, down from $3.8 million in the same period last year.
Net income for the third quarter of 2009 was $632,227, or $0.04 per diluted share, as compared to net income of $1.8 million, or $0.10 per diluted share, in the third quarter of 2008.
EBITDA for the third quarter of 2009 was $2.1 million as compared to $4.1 million for third quarter of 2008.
First Nine Months Financial Results
Total revenue for the nine months ended September 30, 2009 declined to $41.6 million compared to $43.2 million for the same period in 2008 due to lower sales of alcohol, food and merchandise, which was offset by an increase in service revenues.
Cost of goods sold (the cost of alcohol, food and merchandise) declined by approximately 16.6% or $0.9 million compared to the same period last year, due primarily to tighter inventory controls and the benefits of the Company's tiered venue operating model.
Total operating expenses increased 7.1% to $35.2 million in the first nine months of 2009 from $32.9 million in the same period last year. The increase in total operating expenses was mostly due to an additional building impairment charge of $268,000 related to the sale of the Arizona property, as well as higher taxes and permit fees, increased rent, higher legal fees, other professional fees, repairs and maintenance, and a $422,552 increase in other expenses, including janitorial, supplies and automotive expenses. These increases were offset by a decline in cost of goods sold, charge card and bank fees, advertising and marketing, and utilities.
Operating income for the first nine months of 2009 was $6.4 million, down from $10.3 million in the same period last year.
Net income for the first nine months of 2009 was $2.0 million, or $0.12 per diluted share, as compared to net income of $4.8 million, or $0.26 per diluted share for the first nine months of 2008.
EBITDA for the first nine months of 2009 was $7.3 million as compared to $10.9 million for the same period in 2008.
Q3 2009 Financial Results Overview
* Revenues of $13.9 million
- Same stores sales increased for 6 clubs by 1.4% to 9.2%
compared to the same period in 2008
* Operating income of $2.0 million
* Net income of $0.6 million, or $0.04 per share
* EBITDA of $2.1 million
* Free cash flow of $1.2 million
First Nine Months 2009 Financial Results Overview
* Revenues of $41.6 million
* Operating income of $6.4 million
* Net income of $2.0 million, or $0.12 per share
* EBITDA of $7.3 million
* Free cash flow of $3.8 million
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Troy Lowrie, Chairman and Chief Executive Officer, stated, "We achieved solid operating results for the third quarter and first nine months of 2009. Despite a challenging economic environment, we generated nearly $14.0 million in revenues for the third quarter. The elasticity of our tiered venue model -- where a decline in revenues caused by fewer patrons at our high-amenity A clubs is offset by the increased margins generated at our more affordable B and C venues - in combination with improved cost efficiencies throughout the Company has allowed us to remain profitable, produce EBITDA margins of 17.1%, and generate free cash flow of $3.8 million for the first nine months of 2009."
Third Quarter Financial Results
Total revenue for third quarter of 2009 declined to $13.9 million from $15.2 million in the third quarter of 2008. The decline in revenue was due to lower sales of alcohol, food and merchandise, and service revenue, which includes wristband sales, suite rentals, tab and tip fees, and dance dollar and boutique programs.
Cost of goods sold (the cost of alcohol, food and merchandise) decreased by approximately 18.4% or $0.3 million compared to the third quarter of 2008. This decrease was larger than the corresponding revenue decrease for the quarter, indicating stronger gross profit margins which reflect the benefits of the Company's tiered venue operating model, where the Company's "C" clubs have a lower cost of sales percentage and higher gross profit compared to clubs that serve alcohol.
Total operating expenses increased 4.0% to $11.8 million from $11.4 million in the third quarter of 2008. The increase in total operating expenses was mostly due to higher taxes and permit fees, increased rent, insurance, and other professional fees. This increase was offset by decreases in cost of goods sold, charge card and bank fees, legal fees, advertising and marketing, utilities, repair and maintenance, and other expenses, including janitorial, supplies and automotive expenses.
Operating income in the 2009 third quarter was $2.0 million, down from $3.8 million in the same period last year.
Net income for the third quarter of 2009 was $632,227, or $0.04 per diluted share, as compared to net income of $1.8 million, or $0.10 per diluted share, in the third quarter of 2008.
EBITDA for the third quarter of 2009 was $2.1 million as compared to $4.1 million for third quarter of 2008.
First Nine Months Financial Results
Total revenue for the nine months ended September 30, 2009 declined to $41.6 million compared to $43.2 million for the same period in 2008 due to lower sales of alcohol, food and merchandise, which was offset by an increase in service revenues.
Cost of goods sold (the cost of alcohol, food and merchandise) declined by approximately 16.6% or $0.9 million compared to the same period last year, due primarily to tighter inventory controls and the benefits of the Company's tiered venue operating model.
Total operating expenses increased 7.1% to $35.2 million in the first nine months of 2009 from $32.9 million in the same period last year. The increase in total operating expenses was mostly due to an additional building impairment charge of $268,000 related to the sale of the Arizona property, as well as higher taxes and permit fees, increased rent, higher legal fees, other professional fees, repairs and maintenance, and a $422,552 increase in other expenses, including janitorial, supplies and automotive expenses. These increases were offset by a decline in cost of goods sold, charge card and bank fees, advertising and marketing, and utilities.
Operating income for the first nine months of 2009 was $6.4 million, down from $10.3 million in the same period last year.
Net income for the first nine months of 2009 was $2.0 million, or $0.12 per diluted share, as compared to net income of $4.8 million, or $0.26 per diluted share for the first nine months of 2008.
EBITDA for the first nine months of 2009 was $7.3 million as compared to $10.9 million for the same period in 2008.
Q3 2009 Financial Results Overview
* Revenues of $13.9 million
- Same stores sales increased for 6 clubs by 1.4% to 9.2%
compared to the same period in 2008
* Operating income of $2.0 million
* Net income of $0.6 million, or $0.04 per share
* EBITDA of $2.1 million
* Free cash flow of $1.2 million
First Nine Months 2009 Financial Results Overview
* Revenues of $41.6 million
* Operating income of $6.4 million
* Net income of $2.0 million, or $0.12 per share
* EBITDA of $7.3 million
* Free cash flow of $3.8 million
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3 comments
So the whales are nursing their stock market portfolios and staying away, while the working class are being squeezed for more revenue via an increase in the cost of soda? And Igor now has to clean all clubs because the other staff has been fired?
"Net income for the first nine months of 2009 was $2.0 million, or $0.12 per diluted share, as compared to net income of $4.8 million, or $0.26 per diluted share for the first nine months of 2008."
Yeeeesh! That's down more than 50%. All-in-all though, probably better than LNET's results.