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Gaming Guru

Howard Stutz

Colorado casinos boost fourth-quarter revenues for Affinity Gaming

2 April 2013

LAS VEGAS -- Casino operator Affinity Gaming grew revenues 4.6 percent in the fourth quarter, primarily through the company’s three casinos in Colorado that were purchased last year.

The Las Vegas-based company said Monday that total revenues increased to $97.7 million in the quarter that ended Dec. 31, compared with $93.4 million in the same quarter a year ago.

Affinity Gaming is facing a potential proxy fight over control of the company by its two largest shareholders, which have submitted separate proposals for changing the makeup of the board of directors.

Illinois-based private equity firm Z Capital Partners, which controls 30.5 percent of Affinity, intends to nominate three candidates for election to the company’s five-person board.

Silver Point Capital, a Connecticut-based hedge fund that owns 24.9 percent of Affinity, is proposing the board be expanded to seven members.

Affinity operates 12 casinos in four states: Nevada, Colorado, Iowa and Missouri. In Nevada, Affinity operates six casinos, including the off-Strip Terrible’s and the three Primm properties at the California-Nevada border.

Affinity said revenues of $6.9 million from the casinos in Black Hawk, Colo., which the company acquired in an asset swap with Golden Gaming, helped offset a $1.4 million decrease in fuel sales and related revenues in the company’s Primm properties.

Net income for the quarter was just $522,000, compared with $4.24 million in the same quarter a year ago.

For all of 2012, Affinity said, net revenues grew 6.5 percent to $403.2 million.

In addition to the asset swap with Golden, in which Affinity gave up its Nevada slot machine route operation business, the company sold several casinos in Northern Nevada.

“We spent a great deal of effort this year executing a transition plan that included entry into a new gaming market, divesting of our non-core operations, refinancing our long-term debt and most importantly, continually improving our properties and operating results,” Affinity Chief Executive Officer David Ross said in a statement.