VCG Holding Corp. Announces Completion of Purchase of LaBoheme Gentlemen's Cabaret in Denver, CO
27 December 2007 - 12:00AM
Business Wire
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. 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.
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