RAINFOREST CAFE Message Board

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Non-Tech : RAINFOREST CAFE

RAIN 6.480

+9.6%

Dec 18 3:57 PM EST

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To: Dennis Vail who wrote (3972)	2/4/1998 9:52:00 PM
From: Czechsinthemail	Read Replies (2) of 4704

Dennis, Thanks for the recap. Did the conference call address the slow growth of revenues? I have some concern that the company isn't doing a very good job of maintaining sales momentum, which may be a key part of dropping same store sales: people may come back to the restaurant but not buy any retail items. About the stock buyback: Stock buyback: Since the 1/7 crash RAIN has bought back 730,000 common shares and 545,000 more shares in puts. RAIN now is holding 1.4 million shares in puts sales. The company has $110 million in cash and investments. Between $ 80 and $90 million in capital expenditures are planned for 1998. Do you know if RAIN still had outstanding puts at the time of the crash? If so, they may have ending up buying a lot of shares at a relatively high price (by current standards). I'm wondering about the average price on those 730,000 shares. Also, if they are planning $80 to $90 million in capital expenditures, that should use up the lion's share of existing cash and equivalents. I'm wondering if that will be sufficient to fund share repurchases and expansion without recourse to further debt or equity financing. regards, Baird

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