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Non-Tech : Littlefield Corporation (LTFD) -- Ignore unavailable to you. Want to Upgrade?

To: Nittany Lion who wrote (7544)	2/23/1998 8:24:00 AM
From: SE	Read Replies (1) \| Respond to of 10368

A while back someone asked me to do my estimates without the VGM's in the picture...base it just on bingo halls. In my discussion with JTO I told him I was using $125,000 average profit per bingo hall. He stated that that might be a little low unless you consider the 6 recently closed halls. So, my range was $125,000 to $150,000. Let's use $140,000. If you make $140,000 per bingo hall and divide that by 9.2 million shares you get to .015 cents per share per hall owned per year. With 14 owned that would be $.21 for the year. Remember that corporate expenses run $2 to $3 million. If VGM's were out of the picture, I would say the expenses would run closer to $2 million than $3 million. Let's say $2.5 million. Divided by number of shares of 9.2 million gives .27 cents per share in expenses. So to break even on just bingo halls we need 18 bingo halls. Hope that helps whoever it was that asked the question and it highlights the importance of VGM's. If we get to 30 halls by year-end...and I think this could be a low number, but in order to be conservative, that would be $.45 in earnings and $.27 in expense or $.18 before tax. Tax would take 35% so that would leave $.12 per share just from bingo halls. The thing to remember is that VGM earnings will not be gone till June 1999, if they are eliminated at all. So in order to really get a good picture of the company's makeup with just bingo halls, you need to be able to project how many halls the company will own at the end of 1999. Since I am unable to do that, I will leave the number crunching up to you. -Scott