Question-and-Answer Session
Operator
(Operator Instructions) Our first question comes from Marco Rodriguez - Stonegate Securities, Inc.
Marco Rodriguez - Stonegate Securities, Inc.
I wonder if I could ask kind of a high level macro environment question. If you could provide a little bit more color by your different clubs, what kind of impacts are you seeing right now?
Troy H. Lowrie
What we’ve seen is in our A level clubs, the very upscale clubs, a decrease in the big spenders. We don’t have that person who’s spending $2,000 or $3,000 in a night as often as they used to. But what we’re seeing is about a 10% increase in the B and C model where we’re getting more frequency and some higher ticket averages from the blue collar guy. So we’re still getting our overall comp store increases just in a little bit different way than we did a year ago.
Marco Rodriguez - Stonegate Securities, Inc.
Looking at the map you provided on slide 3, are there particular regions that are performing a little bit better or not so much?
Troy H. Lowrie
I really couldn’t break out one specific market that we’re concerned about. Everything’s performing pretty well. There are some clubs that are performing better than others but as a whole I honestly can’t say that we’ve felt an economic impact except for the real big spenders in the A model.
Marco Rodriguez - Stonegate Securities, Inc.
If you could provide a little bit more color in terms of the acquisition strategy. Obviously part of your strategy is this clustering aspect. I was wondering if you could possibly provide a little bit more information as far as what regions you might be most interest in acquiring more clubs in?
Troy H. Lowrie
Right now we’re one off in California with Anaheim. We’d like to develop the California market. We’ve been in Indianapolis for over 20 years now without a second store. We’d love to have a second or third store in Indianapolis. There are a few stores we could get in possibly Minneapolis. Obviously Miami is a market with 30 or 40 clubs that we’re one right now. So there are a lot of good opportunities.
Although I think this industry’s recession proof, I also think there is some fear in some of the sellers out there that things might not be as good as they used to be. I truly believe that we’re going to get some better opportunities out of the poor economic times that possibly you could buy things at a lower multiple, we could get better financing from the sellers than we thought, so
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