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Gaming Guru

David Ferrara

Affinity Gaming blames weather, economy for 2013 revenue slide

31 March 2014

LAS VEGAS -- Las Vegas-based Affinity Gaming on Friday reported a continued slide in earnings across 11 properties last year.

Affinity’s total revenue for the year fell to $390.5 million in 2013, according to the latest earnings report.

That is down $12.7 million, or 3.1 percent, from the $403.2 million in earnings reported in 2012. Fourth-quarter 2013 revenue was $90 million, down $7.7 million from the same period the prior year.

Affinity’s five Nevada properties saw revenue decline 13 percent, to $52.1 million from $59.9 million, during the final three months of 2013.

Affinity operates the off-strip Silver Sevens Hotel & Casino, along with three Primm resorts and Rail City Casino in Sparks. The company also runs six casinos in Iowa, Missouri and Colorado.

The slip in Nevada was mostly attributed to declining visitation in Primm.

David Ross, Affinity’s CEO, pointed to a stagnant economy and harsh winter weather with regard to its other properties, but said he is hopeful about 2014.

“We continued to be affected in the fourth quarter by soft economic conditions, as well as inclement weather in December,” Ross said in a statement.

“We continue to focus on maximizing the profitability of our operations in 2014 while providing first-class service to our patrons. While the operating environment has been tough, we are well positioned in the markets in which we operate, and we remain the preferred entertainment choice of our loyal customers.”

Ross said customers responded well to 2013 renovations at Affinity’s properties in Colorado, but the company still saw revenue slip 25.2 percent there in the fourth quarter.

The woes were blamed on fall flooding and heavy snow in December.

Ross has announced that he plans to leave Affinity in July.

The company, founded in 2010 after the bankruptcy and reorganization of Herbst Gaming, is not publicly traded but has publicly owned debt.

Affinity expects $12.5 million to $13.5 million in earnings in the first quarter of 2014.