Revenue, cash flow increase for Affinity Gaming
Casino operator Affinity Gaming experienced a nearly 1 percent increase in the revenue in the first quarter, but saw its cash flow jump more than 30 percent.
In a statement Friday, Las Vegas-based Affinity, which owns the three Primm resorts and the off-Strip Silver Sevens, said the cash flow jump in the quarter that ended March 31 was due to a “rationalization of promotional campaigns and the refinement in certain marketing programs.”
Affinity CEO Michael Silberling said the Primm properties benefited from increased drive in traffic from California as well as operational changes.
“The quarterly results reflect the early success of our previously announced initiatives designed to enhance efficiency and improve effectiveness of our promotional efforts,” Silberling said.
In the quarter, Affinity said net revenue of $97.2 million was 0.7 percent higher than the net revenue of $96.6 million from a year ago. Adjusted cash flow was $18.2 million, an increase of 30.3 percent.
Affinity is not publicly traded, but had publicly owned debt. The company has 11 casinos in four states; five in Nevada, three in Colorado, two in Missouri and one in Iowa.
Affinity said its Colorado properties grew revenue 4.4 percent, due to “more focused marketing campaigns and fewer snow days.”
Z Capital Partners, Affinity’s largest shareholder, offered in early April to purchase the remaining shares of the company for $9.75 per share in cash.
In a statement, Affinity said the company’s formed a committee of independent directors to review the proposal and other strategic alternatives.
Contact reporter Howard Stutz at hstutz@reviewjournal.com or 702-477-3871. Follow @howardstutz on Twitter.
