Lakewood, Colo.-based VCG, which has 325 employees at five nightclubs it operates, penned total revenues at $12.2 million for the branded clubs PT’s Showclub, Diamond Cabaret and The Penthouse Club in Denver, Phoenix, Indianapolis, Memphis and St. Louis. In comparison, the company had revenue at $10.1 million in fiscal year 2003.
The higher revenue, however, amounted to a net loss after taxes. VCG recorded a loss of $1.27 million in 2004 as compared with $1.15 million gain for the same period in 2003, according to a filing with the Securities and Exchange Commission.
VCG attributed the negative net income figure to delays in construction of its nightclub in Phoenix, loss on the sale of its Memphis club and termination fees for deals it made with club owners in Minnesota and Hawaii.
CEO Troy Lowrie said the company is continuing its aggressive business plan by “acquiring two to four nightclubs per year within our existing markets or in other desirable locations at a purchase price of less than five times cash flow.”
"[The fiscal year 2004] was an important year for VCG,” said Lowrie, who owns more than 60 percent of the company’s stock. “In addition to listing of our common stock on the American Stock Exchange, we doubled our number of nightclubs we own with the acquisitions of three Denver nightclubs, including Centerfolds, Penthouse and Diamond Cabaret, and the construction and opening of a Penthouse Club in Phoenix.”
Since its beginning in 2002, VCG has acquired existing strip clubs and refurbished their appearance both in the interior and exterior.
In addition to exotic dancers, the clubs offer dining and bar services, as well as VIP rooms intended for entertaining business clients.
