Affinity Gaming releases Q4, full year financial results

Driven primarily by operating and marketing efficiencies, Affinity generated a 31.0% year-over-year increase in operating income, excluding an $20.2 million goodwill impairment in the fourth quarter and 59.8% year-over-year growth in operating income before the goodwill impairment for the twelve-month period.

Adjusted EBITDA improved 15.2% and 29.8%, respectively, for the three- and twelve-month periods ended December 31, 2015 compared with the same periods in 2014.

Fourth Quarter 2015 results

Net revenue for the quarter ended December 31, 2015 was $92.9 million, compared to net revenue of $92.2 million for the quarter ended December 31, 2014, an increase of 0.7%.

Adjusted EBITDA during the fourth quarter of 2015 was $13.1 million, compared to $11.4 million during the same quarter of 2014, an increase of 15.2%.

Adjusted EBITDA from properties, which excludes corporate overhead, increased $3.4 million, or 21.9% during the fourth quarter of 2015 as compared to the same period in 2014.

Full year 2015 financial summary

Net revenue for the year ended December 31, 2015 was $393.3 million, compared to net revenue of $385.9 million for the year ended December 31, 2014, an increase of 1.9%.

Gross revenue for 2015 decreased $2.6 million, or 0.6%, year-over-year, primarily on reduced food and beverage, fuel and retail and other revenue. Promotional allowances were $47.8 million for the year ended December 31, 2015, a decrease of $10.0 million from the same period in the prior year.

Adjusted EBITDA grew 29.8%, or $15.0 million, for the year ended December 31, 2015, to $65.6 million, compared to Adjusted EBITDA of $50.5 million for the same period in 2014. Results for the year ended December 31, 2015 were most significantly impacted by the 53.7% year-over-year improvement in Adjusted EBITDA in the Nevada segment. 

The company’s continued focus to streamline operating and marketing activities resulted in meaningful improvement in the Nevada region. Adjusted EBITDA margin for the year ended December 31, 2015 increased to 16.7%, an increase of approximately 360 basis points compared to the same period in 2014.

“Our strong fourth quarter results and our fifth consecutive quarter of Adjusted EBITDA growth reflect management’s ongoing initiatives to drive operating efficiencies along with our successful rationalization of marketing promotions and spending across the portfolio,” said Michael Silberling, Affinity’s Chief Executive Officer. “The rise in quarterly net revenues, combined with our disciplined operating approach, drove a 15.2% increase in Adjusted EBITDA to $13.1 million, and a 170 basis point expansion in Adjusted EBITDA margin, reflecting growth in each of our three regional operating segments.

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