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Non-Tech : RAINFOREST CAFE
RAIN 5.000-14.4%Jan 2 9:30 AM EST

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To: robert packman who wrote (908)10/6/1996 5:49:00 AM
From: Dennis Vail   of 4704
 
Bob,

I guess we'll know soon enough about 3Q.I've been pondering the fourth quarter myself and O'Dowd's statement that "We'll close out '96 with a $95 million run rate"That's about $24 million in revenues a quarter.Of course,Sawgrass will only be open for half the quarter and Tyson's missed the first two days.Also,it will take both a week or so to get up to speed.So take away $2-$2.5 million and there's still $21.5-$22 million in revenues for 4Q.With a 18.6% profit margin thats $4 million in operating income and $2.6 million in income after taxes.Based on 17.3 million shares thats $.15/share.Then there should be a couple cents a share extra due to interest income exceeding general administrative costs.
That's the one to watch though,General,Administrative and Development costs.At any rate,I found Mr. O'Dowd's comments supportive of my own speculations that we'll exceed estimates quarter after quarter for the foreseeable future.

Regards,
Dennis
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