Affinity Gaming Chief Executive Officer David Ross recently said bad weather had a lot to do with the company’s first quarter revenue declines. “Our first quarter 2014 performance was impacted by extreme weather conditions across several of our regions, increased competition and soft consumer trends,” Ross said. Affinity officials said revenue for the period ending March 31 fell 4.4 percent to .6 million, and cash flow dropped 22.9 percent.
Bad weather was to blame for declining revenue at Affinity’s Missouri and Iowa casinos, which fell by 5.9 percent. In Colorado revenue at the company’s Golden Gulch Casino in Black Hawk dropped a dramatic 45.7 percent.
In Nevada, revenue fell .7 percent to $57.1 million; the company owns five properties there, including the off-Strip Silver Sevens and the three Primm resorts. Officials said a 25.6 percent increase in promotional spending on “aggressive campaigns” aimed at increasing visitors and spending in the Las Vegas market caused the revenue declines.
Affinity said it cut corporate expenses by 11.3 percent in the quarter. In addition, Ross said he would leave the company by July. A replacement has not yet been named.
Also last month, Affinity’s top two shareholders said in filings with the Securities and Exchange Commission they were in talks to settle board infighting over control of the company. Private equity firm Z Capital of Illinois holds a 30.5 percent stake in the company and Connecticut-based hedge fund Silver Point Capital owns 24.9 percent.
“Despite the tough operating environment, we remain focused on further improving our existing properties, implementing strategic cost containment measures where necessary without sacrificing customer service,” Ross said.
Affinity operates 11 casinos in Nevada, Colorado, Missouri and Iowa.
