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Non-Tech : NORE - High Tech Bingo Equipment - Online Bingo -- Ignore unavailable to you. Want to Upgrade?

To: David Johnson who wrote (200)	1/6/1998 9:33:00 AM
From: Ed Pettee	Read Replies (1) \| Respond to of 7701

David -AsI understand it the parnership called "Golden Games" was set up. You have LYMCA as the key Ven-Land link, run by Frederico Fernandez, and Noram and Sharp. The distribution of profits that I understand is Noram and Sharp to equally split 60% (30 each) LYMCA is at 30% and Frederico is at 10%. This is net revenue after operating expenses. In an earlier post Jeff stated that the revenue would be distributed every 15 days. The contracts were reviewed by the attorney James Gagel who also visited locations on Dec. 2nd. Take a look at his report on the web site. Somebody else may be able to add further to this. I dont believe it is considered a dividend, just a distribution of the bottom line profits. If the conservative projection of $12 million in net revenue comes true this results in a significant infusion of cash especially in the last 2 qtrs of this year. I took the latest info Jeff provided of $300 Gross Revenue per day per machine, and carried that out with 105 machines in Jan.-110 each month for the next 8 months and 105 for the last 3 months for 1300 machines by Dec 1st. The bottom line net revenue comes real close to the $12 million net revenue which is in all the press releases.I got $11,975,000 and my estimate of machines per month could be off slightly having been told 100 machines per month, but you have to fit that to the 1300 total. The last months of the year of course have significant revenue as more and more machines are put into place. For example if you assume that all 1300 machines are in place on Dec 1st and they are using the conservative # of $300 dollars per day (remember Sharps # is #600 per day) you get $300x 1300 per day in Gross Revenues or $390,000 times 31 days= $12,090,000. Prizes are paid out at75% ($9,067,500) leaving Gross Profits of $3,022,500. Operating costs are being set at 38.03% for the first year ($1,149,456)leaving Net Revenues at $1,873,044 of which Noram is getting 30% or $561,913. For one month this is quite substantial considering that Sharp says the daily Gross will be $600 or double the #s being used. If you look at the second and third year estimates using these same projections the #s go off the chart. I still believe it is a case of waiting to see what the first Quarter numbers come in at before getting to enthused about the projected nimbers.