Adult-nightclub operator VCG posts higher Q3 earnings
samsung1
Ohio
Adult-nightclub operator VCG Holding Corp. Friday reported a higher third-quarter profit on a rise in revenue.
Lakewood-based VCG (NASDAQ: VCGH) owns 19 adult nightclubs, including Denver's Diamond Cabaret, La Boheme, Penthouse Club and two PTs.
Attributable net income for the most recent quarter was $1,918,482, or 12 cents a share, up from $632,227, or 4 cents a share, in the same quarter of 2009.
Income from continuing operations was $1,527,437, or 9 cents a share, up from $759,300, or 3 cents a share, in the year-ago quarter. In July, early in the third quarter, VCG sold its Jaguar's Gold Club in Fort Worth, Texas, to a unit of Rick's Cabaret International Inc.
Revenue for the third quarter rose to $14,384,186 from $13,408,673 a year earlier.
In particular, the company saw a 19.8 percent rise in "service revenue," including "table side services, wristband access to special areas, table dances, and suite fees," VCG said in a statement. But alcohol sales revenue declined.
Troy Lowrie, VCG's chairman and CEO, said the company saw same-store sales rise at 15 of its clubs.
Earlier this week, VCG announced that its board has agreed to a takeover bid by Lowrie and President and COO Michael Ocello, who plan to take the company private.
Lowrie and Ocello are offering to buy up all publicly held shares in the company. The deal still must be approved by shareholders other than Lowrie, who controls about a third of the company's 16 million shares of common stock already.
http://www.bizjournals.com/denver/news/2…
Lakewood-based VCG (NASDAQ: VCGH) owns 19 adult nightclubs, including Denver's Diamond Cabaret, La Boheme, Penthouse Club and two PTs.
Attributable net income for the most recent quarter was $1,918,482, or 12 cents a share, up from $632,227, or 4 cents a share, in the same quarter of 2009.
Income from continuing operations was $1,527,437, or 9 cents a share, up from $759,300, or 3 cents a share, in the year-ago quarter. In July, early in the third quarter, VCG sold its Jaguar's Gold Club in Fort Worth, Texas, to a unit of Rick's Cabaret International Inc.
Revenue for the third quarter rose to $14,384,186 from $13,408,673 a year earlier.
In particular, the company saw a 19.8 percent rise in "service revenue," including "table side services, wristband access to special areas, table dances, and suite fees," VCG said in a statement. But alcohol sales revenue declined.
Troy Lowrie, VCG's chairman and CEO, said the company saw same-store sales rise at 15 of its clubs.
Earlier this week, VCG announced that its board has agreed to a takeover bid by Lowrie and President and COO Michael Ocello, who plan to take the company private.
Lowrie and Ocello are offering to buy up all publicly held shares in the company. The deal still must be approved by shareholders other than Lowrie, who controls about a third of the company's 16 million shares of common stock already.
http://www.bizjournals.com/denver/news/2…
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http://www.vcgh.com/ourclubs.aspx
ss1- So, what are you thinking about VCG clubs? Or purchasing VCG stock?
Myself: For the longest time, VCG (almost all PT's named clubs) was my fave corporate chain. (If that is possible without being too much of an oxymoron). They'd consistently provided more of an upscale lean without a lot of the upscale BS. This based mostly on pre-Tuscl experience with 6 clubs in 4 different metro areas.
In the last 2-3 years, they seem more interested in remodeling clubs/buying out existing clubs, jacking up the prices(they weren't bargain basement to start with, mostly average for area), and instituting PITA Policies/Practices. My experience with 1 club (PT's Indy- travel patterns don't take me to ESL anymore) has been a club that went from being fun to one with markedly higher prices than other area clubs . I wonder if VCG is going much further down the road of being just another corporate chain. At least they haven't started clipping songs too much like a couple of other chains do.
I'm curious what other posters experiences have been, and also if recently bought out clubs have been improved, or worsened as a result of the buyout. Eg- Was prior mediocre club upgraded overall, or was it a case of prior popular unique local club being quashed in reinvented corporate cookie cutter approach??
Not a bad place, if you know what you're in for when you go in, but it ain't a budget fuck shop by any means.
Ummmm, did I say that VCGH was the only stock down from 2007? Nope. Purchase that dog of a stock at your own risk.