The company retained MDD to quantify the damages. The situation was somewhat complicated because we had no historical figures to rely on in order to determine what revenue was lost as a result of the collision.
Fortunately, we were able to use other sources of data to reasonably determine lost revenue; these included gaming activity in the vicinity, the company’s predicted market share and the earnings for the company post-delay.
Equally important, we were able to segregate the revenues and costs associated with the hotel from those associated with the riverboat. This enabled us to isolate the lost earnings that were solely attributed to the damage of the vessel.
MDD also performed a thorough analysis of claimed extra expenses. We classified them as ordinary operating expenses, capital-type (non-expense) items, out-of-period expenses and math errors.