Well, here goes. I did this on Excel spreadsheet and if the columns
come out hosed, (they did and I will attempt to correct them
somewhat -- ack making it worse. You are on your own. Should be
able to figure it out however. Let me know if you cannot.) I will
delete this post and find another way to present the numbers. So if
this post is blank, you know why:
I still stick by my $.15 estimate for fourth quarter, although it is
hard to argue with the numbers below that show $.11 or $.12 for fourth
quarter. I have my original calculations at home, so I don't know
where they are different, but it doesn't really matter. I would
assert that these are probably at the lowest possible end of the
spectrum. It also shows $.44 for the annual number. I have
documented where I made assumptions. Simply changing the weighted
number of shares outstanding will change the numbers significantly
and I don't know how to figure that number.
Anyway, have at it:
Fourth Quarter 1997:
Revenue Profit
18 bingo halls fourth quarter
SC 11 - $360,000 Gross, $150,000 Pre tax profit 990,000.00 433,125.00
TX 3 - $210,000 Gross, $50,000 Pre tax profit 157,500.00 78,750.00
AL 4 - $400,000 Gross, $175,000 Pre tax profit 400,000.00 183,750.00
700 VGM's fourth quarter
Net per machine $19,300, Pre tax profit $7,000 3,377,500.00 1,286,250.00
Sub-Totals 4,925,000.00 1,981,875.00
Coporate Overhead $2-3 million, used $2.5 million (625,000.00)
Interest Income 6%
Started quarter with $1.7 million in cash, 3 months 25,500.00
Warrant call produced $11.4 million, 1 week 13,153.85
Total income 1,395,528.85
Taxes at 35% (488,435.10)
Net Income 907,093.75
Total income less $250,000 tax loss carryforward 1,145,528.85
Taxes @ 35% (400,935.10)
Net Income 994,593.75
Number of Shares:
5.867 million issued and outstanding end of 3rd quarter
9.50 million end of year, only one week outstanding.
Used 8 million to be conservative
On a fully taxes basis 0.1134
Using a $250,000 loss carryforward 0.1243
Annual
3rd quarter numbers 7,060,000.00 1,870,000.00
4th quarter w/o Darlington 2,995,000.00 1,220,625.00
Darlington 4,000,000.00 1,200,000.00
Corp Overhead 4th quarter (625,000.00)
Int Income 4th quarter 38,653.85
Net Income 3,704,278.85
Tax Loss Carryforward (2,578,000.00)
Taxable Income 1,126,278.85
Tax @ 35% (394,197.60)
Net Profit 3,310,081.25
Number of shares
7.5 million weighted shares (guess) 0.4413
Notes:
Number of halls from November Power Point Presentation.
Profit number per hall average from same.
Closed two TX halls from Conf Call. Those lost $120,000 and
$70,000 during the quarter. This changes the TX average numbers
Company stated that would have added $.05 per share. Assumed
they meant for third quarter. If so the TX average is closer to the
$100,000 average. I used $100,000 average for profit for TX halls.
Stated that 3rd quarter was slow and 4th quarter was up-ticking. I added
5% for the uptick portion.
Corporate overhead from Warrant Info Center
Other Revenues of 5% are figured into average bingo hall numbers
on the power point presentation.
Issues: The VGM's are advertised at $6,000 net profit per year average.
The VGM route machines were said to deliver $10,000 average profit.
Further, BNGO says they run higher than state averages. I used $7,000
for all machines.
Tax loss carryforward was $2,578,000 for the 1996 tax year. Taxable income
and financial income can vary and I used the tax loss carryforward against
financial income without adjustments for tax purposes.
Income through the third quarter was $1.87 million. Darlington will add income to
first three quarters. Darlington's projected three quarter income is as follows:
400 machines at $6,000 per machine equals $2.4 million. However, machines were
not in place all year as Darlington produced $4 million in revenue on 400 machines.
This is well below the $20,000 per machine. Speculation is that route machines are
split 50-50 with the establishment owner and that would then work out. If that is true,
then Darlington earned profits of $1,800,000 through three quarters. I don't believe that
number, but all they would have had to have earned was $717,000 through three quarters
to wipe out the tax loss carryforward. I think that salary and other expenses would leave us
with about a $250,000 loss carryforward to fourth quarter. This is a guess. Numbers have
been presented without any loss carryforward and with $250,000 loss carryforward.
Number of shares:
I have no idea how to figure average weighted number of shares etc as I have not
recently worked on a financial statement presentation for a public company.
Any help here would be appreciated. I used 9 million shares, but I think the weighted
average number will be less. |
