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To: SE who wrote (6746)	1/25/1998 4:48:00 PM
From: Ed Pettee	Respond to of 10368

Scott-- The quarterly numbers look good. I might add that in an earlier discussion with G. Harrison he confirmed that the published # of $4.0 million for 400 route machines came from the 50/50 split giving the $10000. He reminded me that he pays $800000 per year in license fees ($2000 per machine) since he controls the licence. So that would get you to $8000.0 before his expenses and I think your $1000 in expenses is resonable for $7000 since most of the expenses are borne on the operators side. This is of course different from the Mims operation where you start with the state average of $19,000.

To: SE who wrote (6746)	1/26/1998 12:29:00 AM
From: Alex Greenland	Read Replies (1) \| Respond to of 10368

In regard to the aqusitions are you counting them under the purchase method or pooling of interests method? If they are counted under the purchasing method you would also have to account for the goodwill incurred through these aqusitions. This would lower earnings per share but keep cash flow unaffected. Just a thought. Alex G.

To: SE who wrote (6746)	1/26/1998 9:18:00 AM
From: Nittany Lion	Read Replies (1) \| Respond to of 10368

Scott, It looks like we need $10 million more in revenue to = .65/sh. after tax. This means that they would have to add 1000 VGMs to your 52 Bingo Centers (1000x $19300 /2 for ave. yearly revenue of $9.65 million). This then would total $38 million in gross revenue. So, if they add 1 bingo hall per week and if they add 1000 VGMs and if they can keep net profit margin at least 25% (condidering add'l S.C. tax etc.) then 1998 income/share could be .65. Without trying to be cynical, I think we are just trying to work with too many unknown variables this early in the year. Not that all this couldn't happen - especially with $11.4 million to work with. They could announce a 1000 VGM deal tomorrow for that matter. However, I would rather err on the side of caution. Remember, they originally said they wanted to end 1997 with 25-30 Bingo Halls - there were 18. And yes, I did vote for Nixon, Ford, Reagan, Bush and Dole even tho I felt Bush wasn't conservative enough. (ggg) Gary BTW, I know this doesn't ease the pain any less but it was one of the better Super Bowl games in recent years.