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Author: TMFEdible Big red star, 1000 posts Supernova Phoenix 1
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Subject: Re: Defending Dave and Busters, The Street and M Date: 12/19/1999 12:42 AM
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Ed, great analysis. Two quick comments. One is that, of course no one is expecting $1.21 anymore. That's obsolete and will continue to shrink as the downward revisions come in. Bank of America and Jefferies, each who were expecting $1.45 next year, dropped to $1 and $0.73 respectively for next year.

So the net income will be substantially less to support expansion. However, there's a problem with that. You can't use net income and add it to cash because that's only paper money. You need to look at cash flow. Next year DAB will have about $20 million in depreciation. That gets added back into cash (becuase it was spent already, it's just how it is amortized on the financial statements).

So they do have enough to open four units next year, but not by much.

Rick
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