Mr. Cleary: The company was formed in 1988 as a general equipment lessor. PDS began doing some leasing and finance transactions in the gaming industry in the early 1990s, and we realized that we, as a relatively small, independent leasing company, had found a niche where we could command some better margins. We elected to focus on the gaming industry entirely in approximately 1994. So from that point forward we have focused solely on the gaming industry. The company today generates three-quarters of its revenues and profits essentially via leasing slot machines and related equipment to casinos. The company's second division is called Casino Slot Exchange, which re-markets used slot machines. Then we have two other smaller divisions that we're just starting up. The first of those two would be the table games division, which markets proprietary electronic table games to casinos, and the fourth is actually casino operations. We own a small casino up in Reno, Nevada, and the idea there is that by operating a small casino we'll stay in closer touch with the equipment that is better and the equipment that is falling out of favor. That will help us manage our portfolio of slot equipment.
TWST: How does the business break down into the various divisions?
Mr. Cleary: As I said, approximately three-quarters of it is in the
finance and lease division. The company in the last year or two
generated between 50 million and 60 million in revenue, so 35 million
to 40 million of it is going to come through the finance and lease
division; 12 million to 14 million comes from the Casino Slot
Exchange, which, again, is the re-marketing of used slot equipment; and
then the casino division generates maybe 1 million in revenue, and the
table games division is really just getting started.
Tickers included in this excerpt: PDSG
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