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Canadian Investing / Canada (General)


Subject:  Re: Craze Is Creating Investment Opportunities Date:  3/6/1998  1:44 PM
Author:  stoxx Number:  514 of 64723

Its disappointing to see your "guessing" and mathematical skills leave something to be desired. Maybe you've never played recreational ice hockey before. Due to the huge demand, the ice is often only available after midnight, if at all, for rentals.

Let's be a little more realistic in our estimate of revenues from ice rentals. Using the numbers from the Jan. 98 Barron's article, the average rink is open 360 days, nearly 24 hours a day. For the purpose our our estimates, let's say an International Training Rink is open 360 days/yr with ice utilization of 18 hours/day, and use a more conservative $200/hr for ice time. (Showing calculations as 360 x 18 x $200 ). Let's see, this adds up to: (drum roll, please!!!) $ 1.296 million in revenue per ice sheet!!! Cha-ching !!! In general, ice time contributes 60% of a rink's revenue while concessions, shops, etc.. contribute about another 40%. This contribution would add another $518K to revenues. So, our 'rinky-dinky-rink' has estimated revenues of $1.8 million, with profit margins, according to Barron's, of more than 50%.
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