Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Justin Sebastiano with Morgan Joseph.
Justin Sebastiano - Morgan Joseph & Co
As far as just some housekeeping, travel expense, that should fall I guess after FireKeepers opens or do you think you’ll have to go to the property as often as you have been going since the development?
Mark Miller
It will definitely fall after the casino opens. Andre is spending quite a bit of time there. We’re making sure that we’ve got all hands on deck so between now and opening we’re going to spend a lot of time there but after opening I think it will start to drop off.
Justin Sebastiano - Morgan Joseph & Co
So SG&A should be able to come down late ’09 and going into 2010?
Mark Miller
Yes, to some extent. Remembering that those costs are GEM expenses and we’re only bearing half of them. The travel is not a huge number right now.
Justin Sebastiano - Morgan Joseph & Co
Then I get the hirings, the personnel hirings at FireKeepers... I know the GM I guess is on your payroll but the guys that you are looking to hire now, is that all going on the tribe’s payroll?
Mark Miller
That’s correct, it’s all part of the FDA but remember that we didn’t have a GM on our books last year so GEM has GM payroll expense this year that it did not have. That’s probably the most significant expense that’s being borne this year by GEM that was not being borne last year.
Justin Sebastiano - Morgan Joseph & Co
And then as far as naval activity in Fallon, is there any visibility there? Are you seeing... Do you have a schedule or do you have...
Mark Miller
No, we don’t get a schedule. We don’t have people who have contacts on the base and we get some intelligence on what the naval activity is going to be. There is a large group there now. They’ve been there since the very end of October and we expect them to be there for another week or so. [inaudible]
I think the challenge right now is I think people are adjusting their multiples. I’m not sure that they’ve come to the five that you mentioned, but we are seeing some rationalization of expectations. The biggest question right now is what is the actual EBITDA run rate of a particular property and to the extent that we are seeing downward trends in EBITDA, where is it really going to land, what is a fair benchmark for the property’s EBITDA?
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