posted
Headliners Releases Fiscal First Quarter 2006 Update: An Impressive Rise in Revenue of Over 300% Tuesday May 16, 8:00 am ET
MONTCLAIR, NJ--(MARKET WIRE)--May 16, 2006 -- Headliners Entertainment Group Inc. (OTC BB:HLEG.OB - News), an integrated entertainment management company that owns and operates 4 Dance Clubs and 2 Comedy Clubs, announced its first quarter results for 2006 today, reporting that revenues increased by over 300% when compared to the same period in 2005. ADVERTISEMENT
Headliners reported revenues of $1,874,768 for the first quarter of 2006 compared to revenue of $446,703 in the first quarter of 2005. This represents an over 300% increase in revenues. The company also posted $1,238,643 in Gross Profit during the first quarter of 2006, compared to a Gross Profit of $294,013 for the same period in 2005. These figures dramatically show the results of management's decision to refocus the core business of Headliners from comedy clubs to include dance-oriented venues.
The transition of Headliners' business has resulted in a marked disparity between revenues and expenses. During the first quarter of 2006, the company incurred general and administrative expenses totaling $1,936,752, which exceeded the gross profit by $698,109.
During the first quarter of 2006, operations consumed $235,605 in cash. However, in the second half of 2005, operations produced $458,525 in cash. The improved cash flow in the second half of the year resulted from taking full managerial control over the six dance clubs during the summer of 2005. The company believes that the negative cash flow from operations in the first quarter is not indicative of the direction of the business operations, but reflects the troubles at the Jackson, MS, club that were resolved when the location was closed in April and additionally from the seasonality of the business; historically, the first quarter of the year is the slowest period for club operations.
''Our expenses remain disproportionate to our revenue. As a result, we realized a net loss of $1,849,753 for the first quarter of 2006. However the new direction in our operation bodes well for the future. I believe that the acquisition of the dance clubs, the opening of the new Red Cheetah in Montclair, and our new ventures, including the media distribution of the Rascal's library, will combine to serve as a platform for profitable operations. I believe that this is an achievable goal." Ed Rodriguez, Headliners CEO, commented and continued to say, "I do not expect that we will require additional capital during the next 12 months, except in connection with new development projects we may undertake."
Once the current period of rapid expansion is subsided, the capital requirements will be much easier to manage. Once clubs are established, they either operate profitable or are closed. Capital requirements of ongoing operations should not be significant. Headliners plan is to continue to expand, but at a pace commensurate with available capital and capital commitments, either from equity sources or secured lending sources.
For all Headliners investor relations needs, investors are asked to visit the Headliners IR Hub at http://www.agoracom.com/IR/Headliners where they can post questions and receive answers within the same day, or simply review questions and answers posted by other investors. Alternatively, investors are able to e-mail all questions and correspondence to HLEG*agoracom.com where they can also request addition to the investor e-mail list to receive all future press releases and updates in real time.
About Headliners Entertainment Inc.
Headliners is an entertainment management company that owns and operates 2 Comedy Clubs and 4 Dance Clubs. Headliners Entertainment owns a library of more than 200 hours of stand up comedy routines performed by today's top entertainers, and it has also started taping a new Rascals Comedy Hour. Headliners has also entered into contracts with:
-- MSN Video Downloads; -- TVNet wired and wireless digital video download service; -- Windows Media; -- XM Satellite Radio; XM Comedy; -- SmartVideo Technologies, a mobile entertainment service provider that offers fully synched, full-motion audio and video programs to viewers with mobile electronic devices.
IP: Logged |
posted
The company itself is very legit, they run a group of bars here in Louisville that do very well... I think this gaps to .02 tomorrow...
IP: Logged |
posted
Just started looking at this and I do like the charts and think it will gap to around .02 on Monday on the strength it showed late Friday. Difficult to tell if this will gap and run or gap run a little and retrace. Worth keeping an eye on.
IP: Logged |