Question-and-Answer Session
Operator
(Operator instructions) Our first question is from Eric Wold with Merriman Curhan Ford. Please go ahead with your question.
Eric Wold – Merriman Curhan Ford
Hey, good afternoon, Eric.
Eric Langan
Hey, good afternoon. What do you do? You got it fast. You’re always like one of the first ones in there.
Eric Wold – Merriman Curhan Ford
Sorry, it could be –
Eric Langan
That’s great, appreciate it.
Eric Wold – Merriman Curhan Ford
I apologize for the noise in the background, I’m at the airport. But a couple questions. I guess the first one you mentioned looking into a couple of things that some of the clubs to obviously correct them or stem losses. How many clubs are actually losing money?
Eric Langan
Three that are major concern right now. Our Austin location and two of our rather small locations, one in Houston and one in San Antonio, are the main problems.
Eric Wold – Merriman Curhan Ford
Okay. And then I guess a couple thoughts on specific markets, New York City, what are your thoughts there going into this year with Sapphire that was taking over the Fort Worth, already they are looking to go towards east? And how much are --?
Eric Langan
Those are probably their 4,000 square foot clubs. I mean, they are pretty insignificant. Yes, they put out flashy press releases, but the reality of it is, they are operating at 60/40 in the east side. I don’t know how much money they are going to spend on that. Eventually that lawsuit is going to come to – that phase, that lawsuit is going to come to a close. I don’t know how much money they are willing to risk. With the opportunity that they may have to close some day, that loophole goes away. But – I mean, we’re really not concerned with Sapphire right now. We’re more concerned with Hustler and Penthouse, the other two major competitors in that market. Everywhere they have 10,000 square feet. But I feel there is enough business in New York City for everyone. Our business is continuing to grow. We are getting market share, we are gaining market share every month. Some of our big customers aren’t paying us much money, but we are getting so many more customers. And that’s why we’ve decided (inaudible) got an unbelievable iconic we put up for two months. Basically that leaked out in March, but they didn’t have anybody for these two months. So it’s hard for them to get a big (inaudible). We are happy to do it for the two months. I think we got (inaudible) couple of billboards just over on the Long Island Expressway coming into the Midtown Tunnel, which will hopefully get us some more of that bridge and tunnel business on the weekends and build our weekends up. Those are the days we can – we have the most capacity to club, like Friday nights and Saturday nights and Sunday nights. So we’re doing things to build those nights up, get more tourists in there on the weekend.
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