AFFINITY GAMING ANNOUNCES THIRD QUARTER NET REVENUE
INCREASES 2.7% AND ADJUSTED EBITDA RISES 33%
2015 Third Quarter Marks Third Consecutive Period of Adjusted EBITDA
Growth of 30%+ and All Operating Segments Generated Adjusted EBITDA Growth in Q3
Las Vegas, NV - November 10, 2015 - Affinity Gaming (“Affinity” or the “Company”) today announced results for the quarter ended September 30, 2015. Driven primarily by improving operating and marketing efficiencies, Affinity generated a 73.6% year-over-year increase in operating income in the third quarter and a 66.1% year-over-year increase in operating income for the nine-month period. Adjusted EBITDA improved 33.0% and 34.0%, respectively, for the three and nine month periods ending in 2015 compared with the same periods in 2014.
“Our strong third quarter results reflect management’s ongoing initiatives to drive operating efficiencies and Adjusted EBITDA growth along with our successful rationalization of marketing promotions and spending across the portfolio,” said Michael Silberling, Affinity’s Chief Executive Officer. “The 2.7% rise in quarterly net revenues, combined with our disciplined operating approach, drove a 33.0% increase in Adjusted EBITDA to $16.6 million, reflecting growth in each of our three regional operating segments and our third consecutive quarter of Adjusted EBITDA growth of 30% or greater. In addition, our success in driving operating efficiencies led to a 370 basis point improvement in Adjusted EBITDA margin to 16.3%. While our year-to-date success has been impressive, we believe our plans to implement additional operating efficiency initiatives will continue to deliver material improvements in our consolidated Adjusted EBITDA and margins.
“Our operating improvements were broad based as all of our properties achieved year over year Adjusted EBITDA growth in the quarter with the exception of our Lakeside property that is experiencing cannibalization from a new competitor. More than half our properties delivered double or triple digit Adjusted EBITDA growth rates. Overall results benefited from an increased customer counts and trips at higher play levels combined with our ongoing focus to engage with customers that generate profitable revenue. I would like to commend all of the property operation team members and corporate staff at Affinity for their commitment to our plans for growth, customer service and the enhancement of shareholder value. With strong third quarter and year-to-date results, we remain confident of our full-year guidance for $65-$68 million in Adjusted EBITDA, which at the mid-point of the range would represent a 31.6% increase over 2014 full year results.”
The following information was filed by Affinity Gaming (AFGA) on Tuesday, November 10, 2015 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.
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Ticker: AFGA CIK: 1499268 Form Type:10-Q Quarterly Report Accession Number: 0001628280-15-008729 Submitted to the SEC: Fri Nov 13 2015 1:16:38 PM EST Accepted by the SEC: Fri Nov 13 2015 Period: Wednesday, September 30, 2015 Industry: Hotels And Motels