Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Lawrence Klatzkin - Jefferies & Co.
Lawrence Klatzkin - Jefferies & Co.
A couple of questions. One, Florida law changes, what you are working on and if you don’t get it what should we be expecting for Pompano?
Virginia McDowell
We are actually having conversations with Florida legislators as we speak. At the top of our list is some type of tax relief in the next legislative session. If that doesn’t occur, we face continuing trouble with our playing field there and we are just going to have to continue to look at what our options are in terms of reducing our costs.
Lawrence Klatzkin - Jefferies & Co.
This is your worst quarter seasonally, so we shouldn’t expect a negative EBITDA going for the rest of the year.
Virginia McDowell
The snowbirds are returning now. We are going into what would be our strongest quarter, but it all depends. We are continuing to face pressure from the Seminoles, both from a [permissionable] environment and as far as table games are concerned.
Lawrence Klatzkin - Jefferies & Co.
In Iowa the two casinos seem to have some effective success with the electronic table games. Can you put those in?
Virginia McDowell
We have been working on it. We actually have been working with the state and within the last month or so we found out that we had a slight setback on that, so we are still going to work for approval.
Lawrence Klatzkin - Jefferies & Co.
After tax, how much will you receive on the insurance proceeds?
Dale R. Black
It’s a little complicated on the tax situation, but just the impact of the settlement, without any other changes because of our overall performance or anything, could be in the neighborhood of mid-30s, on the impact of the settlement itself.
What we are receiving in cash is a $95.0 million check but the total settlement for the entire claim is about $225.0 million. We have received $130.0 million prior, so we are in the process of calculating what our actual gain would be.
Like I said, it’s a little complicated between what ultimately ends up being related to the property and what ends up being business interruption.
Lawrence Klatzkin - Jefferies & Co.
So $60.0 million to $65.0 million net could be a good number?
Dale R. Black
Yes, like I said, if you just consider this in a vacuum without any other impact from our other operations or anything else that might happen.
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