VCG Holding Corp. (VCGH) Buys 313k Shares & Increases Buyback; Reduces Debt; Extends Debt Maturities

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January 12, 2009 9:25 AM EST

VCG Holding Corp. (Nasdaq: VCGH) announced several Q4 '08 accomplishments and outlined the Company's strategies for 2009.

2008 Q4 ACCOMPLISHMENTS
* Prepaid $1.4 million of long-term debt principal using Q4 free cash flow, reducing associated interest expense
* Extended the maturities of $5.7 million of liabilities to 2010 and beyond
* Repurchased 313,000 shares of common stock

2009 STRATEGIES
* Board of Directors authorizes additional $1.0 million share repurchase program
* Balance sheet focus: prepay debt principal; improve working capital ratio; repurchase stock, if appropriate; and consider high value acquisitions

Mr. Lowrie noted that long-term debt at December 31, 2008 was approximately $36.5 million, a decrease of $1.9 million from long-term debt of approximately $38.4 million at September 30, 2008. VCGH renegotiated the maturities of approximately $5.7 million of debt, extending terms to 2010 or beyond. The principal prepayments and note extensions reduced current portion of long-term debt to approximately $3.8 million at December 31, 2008 from approximately $7.3 million at September 30, 2008.

The Company also announced that its Board of Directors has authorized the repurchase of up to $1.0 million of VCGH common stock.

Mr. Lowrie continued, "Our ability to generate free cash gives us flexibility to pursue a variety of opportunities. We will continue to reduce our debt during 2009 through regular debt payments, and we will consider prepaying principal on selected debt obligations."

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VCG Holding Corp. is an owner, operator, and consolidator of adult nightclubs throughout the United States. The Company currently owns 20 adult nightclubs.