1. Will you detail how you arrived at $6,000/VGM minimum?
The $6,000 figure came from the Nov Power Point presentation. It was laid out like so:
Net Hold Per Machine Per Year $19,300
Annual Labor Costs $10,800
Annual Licenses/Other Costs $ 2,500
Pre-Tax Operating Profit Per Mach $ 6,000
The 19,300 was denoted as State average per machine. It also noted that company results exceed State average.
Also in the warrant Q&A the company notes that pre-tax profit per machine is being $5,000 and $7,000.
Further, I believe the Darlington route machines are roughly $19,300 gross and they split it 50-50% with the location. Therefore I believe they make considerably more than the $6,000 on the route machines, but I may be wrong on this point. I believe what I just stated about route machines was detailed in posts on this thread, and I have no other backing for it. See post #4073.
GO PACK GO!
-Scott |
