VCG Holding to buy Jaguar’s Gold Club in Dallas

by PegNews wire

The nightclub went for $6.8 million.

DALLAS — VCG Holding Corp., a Colorado-based consolidator and operator of adult nightclubs, today announced that it has received its license for the previously announced acquisition of the Jaguar's Gold Club in Dallas, Texas. The company expects to complete the acquisition on April 14, 2008.

VCG purchased 100% of the stock of Manana Productions, Inc., the owner of the Jaguar's Gold Club in Dallas, for cash consideration of approximately $6.8 million. This purchase price represents 3.3 times the Club's EBITDA and VCG will finance the acquisition with available cash and debt. The purchase also includes the building, which is subject to a 25 year land lease.

The Jaguar's Gold Club is a Bring Your Own Bottle (BYOB) establishment, and is not subject to a liquor license or the state liquor tax. The Jaguar's Gold Club has been open for over two years and is on pace to generate annual revenues of approximately $5.0 million and pretax operating profits of around $2.0 million in 2007.

Troy Lowrie, Chairman and CEO of VCG Holding, stated, "We are pleased that this acquisition is nearing completion, as the issuance of the license took longer than originally anticipated. The Jaguar's Club will be immediately accretive to our earnings for 2008. With the addition of this Club, we have added to our footprint in Texas and now own two Texas clubs. The BYOB business model is very attractive to the Company because of its high level of profitability. Of the 19 clubs we own and operate three, fall under this operating model."

Mr. Lowrie concluded, "I would like to use this opportunity to discuss the release earlier today regarding the delay in filing our 2007 fourth-quarter and year-end financial results. We are disappointed that we were not able to file our results on time, and will work diligently to improve our accounting structure and standards in order to file on time in the future. I would like to stress that this delay has nothing to do with any errors in accounting and we believe that we will exceed our 2007 earnings guidance of $0.43 per diluted share."

Source: VCG Holding Corp.