Question-and-Answer Session
Operator
Thank you. (Operator instructions.) We'll go first to the Bill Benjes with Lantern Lane Capital.
Bill Benjes - Lantern Lane Capital
Morning, guys.
Anthony M. Sanfilippo
Good morning.
Patrick Ramsey
Good morning.
Bill Benjes - Lantern Lane Capital
How are you?
Anthony M. Sanfilippo
I'm doing fine.
Bill Benjes - Lantern Lane Capital
Anthony, a question for you, I'm encouraged by what you're saying about CapEx going from 25 in this quarter down to more like 5 million on a annual – on a quarterly basis. I'm just curious how that plays into rolling out your games, your Class III games in different jurisdictions.
Are you planning on all of those games being sold or are you planning on them being placed on a rev share model and how does that you know is that factored into your $5 million quarter number?
Anthony M. Sanfilippo
Well, that’s a good question. As you heard Mick explain that there are customers who have healthy financial situations. They would be likely to purchase the equipment but we would also look at those that we thought, if in a rev share situation, that it would be a good investment for us to spend that capital to place machines on the floor.
We realize that we have to get trial right now. We've got to have people take a look at our games and they need to speak for themselves from a performance standpoint. The 5 million has a – per quarter has a mix in it of both some rev share games, in discussing Mick his initial rollout, and a lot it is going to be – the difference is going to be the situation that we run into.
But today when we look at sort of the heavy lifting of capital spend came in the first quarter, that under the scenario we've talked with you about, we think with the games that we are most likely to place that we'll have a much lower capital spend the rest of the year.
You know we continue to tell you that we are focused on free cash flow. We're focused on paying down our debt. We're focused on being extremely careful with every, not only capital dollar, but any dollar that gets spent in this organization.
Bill Benjes - Lantern Lane Capital
Great. So that the 5 million a quarter does have your current plan as far as mix between game sales and placements for the next few quarters?
- To read the full transcript on Seeking Alpha, click here »
