Affinity Gaming reported its sixth straight quarter of EBIDTA growth at 17.3 percent during the second quarter of 2016.
Net revenues fell by 6.8 percent compared to a year earlier, but more cost-efficient management and refined marketing efforts overcame the shortfall.
“Our focus on elevating the effectiveness of our promotional campaigns and refining our marketing programs is leading to higher margin revenue at our properties, which when combined with process improvements and realized cost efficiencies drove a 10.1 percent increase in 2016 second quarter Adjusted EBITDA to $19.4 million,” Affinity CEO Michael Silberling told analysts during a recent conference call.
Silberling said Affinity is well-positioned for the second half of the year and in July posted its strongest month for EBITDA.
Z Capital Partners, which owns more than 41 percent of Affinity shares, is trying to buy out the firm’s other shares at $17.35 each, which suggests a company value of amore than $560 million.
“We have always believed that Affinity Gaming needs a singular voice and direction with a long-term capital partner to position it for future growth,” Z Capital CEO James Zenni said in a statement on August 1.
Zenni said the private equity firm’s offer provides “substantial and immediate value” for Affinity’s shareholders.
Z Capital last year tried to buy Affinity Gaming for $9.75 a share, which shareholders rejected.
