The Word is getting out
about this play, Anything they do between now and Nov 30 will be bonus. Here Is my favorite part of the research released. Scope for Valuation Upside. We are forecasting F2015 revenue of $8.0 million and EBITDA of $5.0 million. For F2016 we are forecasting revenue of $13.4 million and EBITDA of $9.2 million. This assumes primarily organic growth through internal cash flow and existing cash on the balance sheet with a machine footprint of 1,500 exiting F2016. However, given the Company’s high visibility recurring revenue model and debt capacity, Poydras has the opportunity to scale its machine footprint well beyond these levels. If the machine footprint in two years is between 2,000-3,000, using constant margins our sensitivity analysis suggests a range of potential stock values from $0.75-1.34 ($0.60-1.10 discounted). The three markets Poydras is currently focused on, Oklahoma, California and Louisiana, collectively have approximately 154K slots across tribal, routes, and commercial markets as per Eilers Research. The vast majority of the 69K slots in Oklahoma are in tribal casinos and the Louisiana route market has about 14K slots. For a 2,000-3,000 slot footprint across these territories, Poydras would require less than 2% of the total machine footprint. Exhibit 10 highlights stock price sensitivity to slot machine footprint.