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Affinity Gaming reverses loss, grows revenues in third quarter14 November 2012
By Howard Stutz
Affinity, which operates the three Primm casinos and the off-Strip Terrible's, said its adjusted net income was $1.5 million for the quarter that ended Sept. 30, which reversed an adjusted net loss of $600,000 in the same quarter a year ago.
Affinity discontinued results from several operations. When the net loss of $8.9 million is factored in, the company said its net loss for the quarter was almost $7.5 million, compared with a net loss of $2.3 million a year ago.
The company said revenues were $100.7 million in the quarter, compared with $89 million a year ago.
In Nevada, Affinity said its total revenue was $6.8 million in the quarter, up from almost $6.5 million in the 2011 third quarter.
Affinity reports because the company has publicly owned debt.
Affinity operates casinos in Nevada, Iowa, Missouri and Colorado.
The company's three casinos in Black Hawk, Colo., were acquired from Golden Gaming in an asset swap.
The casinos were managed by Golden until Affinity was licensed last month.
During the quarter, Affinity collected $2.4 million in lease payments.
"Each quarter this year has shown encouraging results from our core operations, and this quarter was no exception," Affinity Chief Executive Officer David Ross said in a statement.
During the quarter Affinity agreed to sell three Northern Nevada casinos for $19.2 million to a private investment group.
The deal is expected to close early next year.
"We view this transaction as an incremental positive as it provides proceeds to the company that can be used to pursue a larger acquisition in a well-protected market with some (cash flow) growth prospects." Deutsche Bank gaming analyst Andrew Zarnett said in a research note.
Zarnett said Affinity's quarterly earnings were "not entirely comparable" because the period also took into account the temporary closure of one of the company's Missouri casinos a year ago.
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