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SCOH SCORES HOLDING COMPANY, INC.
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Scores Holding Company Announces That Improved Performance in the 2nd Quarter Shows an Increase in Its Net Sales by 98% and Reduction in Its Costs by 50%
THURSDAY , AUGUST 28, 2003 07:30 AM
NEW YORK, Aug 28, 2003 (BUSINESS WIRE) -- Scores Holding Company Inc. (the "Company") (OTC Bulletin Board: SCOH) announced today that for the three-month periods ended June 30, 2003 and June 30, 2002, we had revenue of $288,473 and $6,250, respectively. For the six-month periods ended June 30, 2003 and June 30, 2002, we had revenue of $805,745 and $56,250 respectively. The increase in revenue was due to the revenues generated from sales of the Diamond Dollar rights in the independently owned Scores Showroom pursuant to the assignment agreement between us. Our cost of goods sold for the three-month periods ended June 30, 2003 and June 30, 2002 was $231,027 and $0, respectively. Our cost of goods sold was $461,922 for the six-month period ended June 30, 2003 and $0 for the six-month period ended June 30, 2002. The increase in cost of goods sold was due to the costs associated with the diamond dollars program. We incurred general and administrative expenses of $423,130 and $711,001 for the three-month periods ended June 30, 2003 and June 30, 2002, respectively. The decrease in general and administrative expenses was primarily attributable to legal, consulting, rent and salary expenses that the Company is no longer responsible for due to the unwinding agreement involving our former subsidiary, Go West Entertainment. We incurred general and administrative expenses of $1,005,531 for the six-months ended June 30, 2003 and $925,613 for the six-months ended June 30, 2002. For the three-month periods ended June 30, 2003 and June 30, 2002, we had interest income of $8,743 and $337 respectively. The increase in interest income was due to the note due from Go West Entertainment issued under the unwinding agreement. For the six-months ended June 30, 2003 we had interest expense of $6,872 compared to interest income of $674 for the six-months ended June 30, 2002. The increase in interest expense was due to expenses incurred in financing activities undertaken by us relating to the issuance of debentures and notes payable. For the three-months ended June 30, 2003 and June 30, 2002, we had a net loss of $352,801 or $.02 per share and $704,414, or $.04 per share, respectively. For the six-months ended June 30, 2003, we had a net loss of $655,440 or approximately $.04 per share as compared to a net loss of $868,689 or $.05 per share, for the six-months ended June 30, 2002.
"We are very pleased that we achieved our two main goals for the 2nd quarter, namely increasing our net sales by 98% and reducing our costs by 50% in order to better position ourselves for profitable growth in the future," said Chairman and Chief Executive Officer Richard Goldring.
"Looking ahead, we expect the net income from operations to continue to grow in 2003. We expect to report a profit for the year with Club Licensing revenues projected to show double-digit growth in the 3rd and 4th quarters as a result of the continued cash generating power of SCORES SHOWROOM in New York City. SCORES SHOWROOM is expected to generate $500,000 in licensing fees for the Company in the 3rd and 4th quarters. We believe that the opening of SCORES CHICAGO and SCORES WEST in the 4th quarter could generate an additional $150,000 to $200,000 in quarterly licensing fees to the Company. "
The Company owns the brand and intellectual property associated with the "SCORES" trademark, which is the most recognizable name in adult nightclub entertainment. Since our recent restructuring our new business strategy will be to focus our efforts to actively market the "SCORES" brand name in order to take full commercial advantage of the name and its recognition value. We will continue to seek, through Entertainment Management Services Inc. our Master Licensee, to generate revenue by granting licenses to use the "SCORES" brand name to adult entertainment nightclubs. We will also shift our focus to take advantage of merchandising opportunities as well as opportunities in other media outlets.
On March 31, 2003, we entered into a Master License Agreement (the "Master License") with Entertainment Management Systems, Inc. ("EMS"). The Master License grants to EMS the exclusive worldwide license to use and to grant sublicenses to use the "SCORES" trademarks in connection with the ownership and operation of upscale, adult-entertainment cabaret night clubs/restaurants and for the sale of merchandise by such establishments. Merchandise must relate to the nightclub that sells it, and may be sold at the nightclub, on an internet site maintained by the nightclub, by mail order and by catalogue. The term of the Master License is twenty years. EMS has the option to renew the Master License for six consecutive five-year terms. We will receive royalties equal to 4.99% of the gross revenues of all sublicensed clubs that are controlled by EMS. Sublicenses are currently in effect with three adult nightclubs, SCORES SHOWROOM in New York City, SCORES WEST in New York City and SCORES CHICAGO.
Safe Harbor Statement
Certain statements made herein that are not historical are forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995 and may contain forward-looking statements, with words such as "anticipate," "believe," "expect," "future," "may," "will," "should," "plan," "projected," "intend," and similar expressions to identify forward-looking statements. These statements are based on the Company's beliefs and the assumptions it made using information currently available to it. Because these statements reflect the Company's current views concerning future events, these statements involve risks, uncertainties and assumptions. The actual results could differ materially from the results discussed in the forward-looking statements. In any event, undue reliance should not be placed on any forward-looking statements, which apply only as of the date of this press release. Accordingly, reference should be made to the Company's periodic filings with the Securities and Exchange Commission.
SOURCE: Scores Holding Company Inc.
CONTACT: Scores Holding Company, Inc.
Richard Goldring, 212-868-4900
info@scoresholding.com
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