Affinity Gaming - FORM 8-K - EX-99.2 - EXHIBIT 99.2 - June 6, 2016

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EX-99.1 - EXHIBIT 99.1 - Affinity Gamingex991-pressreleaserefinance.htm
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EXHIBIT 99.1


Selected Financial Results


Cash and cash equivalents

As of April 30, 2016, cash and cash equivalents were $170.6 million, of which $115.9 million is not used in day to day operations. The remaining cash and cash equivalents at our properties includes $35 million is cage cash and $20 million at local operating accounts.


Reconciliation of Non-GAAP Financial Measures (1) 

The following tables reconcile Operating Income to Adjusted EBITDA and Covenant EBITDA (in thousands):

Year Ended December 31, 2013
 
Nevada
 
Midwest
 
Colorado
 
Corporate and Other
 
Total
Operating Income from Continuing Operations
$
10,590

 
$
26,918

 
$
3,264

 
$
(11,773
)
 
$
28,999

Add back:
 
 
 
 
 
 
 
 
 
  Depreciation and Amortization
14,729

 
7,023

 
5,058

 
999

 
27,809

Share-Based Compensation
—

 
—

 
—

 
1,169

 
1,169

Write-Downs, Reserves and Recoveries
3,125

 
3,100

 
—

 
(1,459
)
 
4,766

Goodwill and Other Impairments
165

 
—

 
—

 
—

 
165

Adjusted EBITDA
28,609

 
37,041

 
8,322

 
(11,064
)
 
62,908

Add Back: Non-Recurring Expenses
—

 
—

 
—

 
1,138

 
1,138

Covenant EBITDA
$
28,609

 
$
37,041

 
$
8,322

 
$
(9,926
)
 
$
64,046

 
 
 
 
 
 
 
 
 
 
Year Ended December 31, 2014
 
Nevada
 
Midwest
 
Colorado
 
Corporate and Other
 
Total
Operating Income from Continuing Operations
$
11,980

 
$
26,548

 
$
(531
)
 
$
(16,061
)
 
$
21,936

Add back:
 
 
 
 
 
 
 
 
 
  Depreciation and Amortization
14,650

 
7,582

 
5,124

 
1,223

 
28,579

Share-Based Compensation
—

 
—

 
—

 
455

 
455

Write-Downs, Reserves and Recoveries
(448
)
 
—

 
 
 
24

 
(424
)
Adjusted EBITDA
26,182

 
34,130

 
4,593

 
(14,359
)
 
50,546

Add Back: Non-Recurring Expenses
—

 
—

 
—

 
4,108

 
4,108

Covenant EBITDA
$
26,182

 
$
34,130

 
$
4,593

 
$
(10,251
)
 
$
54,654

 
 
 
 
 
 
 
 
 
 




Year Ended December 31, 2015
 
Nevada
 
Midwest
 
Colorado
 
Corporate and Other
 
Total
Operating Income from Continuing Operations
$
25,378

 
$
31,056

 
$
(20,272
)
 
$
(21,341
)
 
$
14,821

Add back:
 
 
 
 
 
 
 
 
 
  Depreciation and Amortization
14,883

 
7,682

 
5,264

 
1,199

 
29,028

Share-Based Compensation
—

 
—

 
—

 
1,206

 
1,206

Write-Downs, Reserves and Recoveries
(12
)
 
—

 
58

 
255

 
301

Goodwill and Other Impairments
—

 
—

 
20,229

 
—

 
20,229

Adjusted EBITDA
40,249

 
38,738

 
5,279

 
(18,681
)
 
65,585

Add Back: Non-Recurring Expenses
—

 
—

 
—

 
2,956

 
2,956

Covenant EBITDA
$
40,249

 
$
38,738

 
$
5,279

 
$
(15,725
)
 
$
68,541

 
 
 
 
 
 
 
 
 
 

Last Twelve Months Ended April 30, 2016
 
Nevada
 
Midwest
 
Colorado
 
Corporate and Other
 
Total
Operating Income from Continuing Operations
$
28,643

 
$
32,291

 
$
(20,890
)
 
$
(22,183
)
 
$
17,861

Add back:
 
 
 
 
 
 
 
 
 
  Depreciation and Amortization
14,828

 
7,846

 
5,499

 
1,106

 
29,279

Share-Based Compensation
—

 
—

 
—

 
1,441

 
1,441

Write-Downs, Reserves and Recoveries
(63
)
 
(5
)
 
—

 
296

 
228

Goodwill and Other Impairments
—

 
—

 
20,229

 
—

 
20,229

Adjusted EBITDA
43,408

 
40,132

 
4,838

 
(19,340
)
 
69,038

Add Back: Non-Recurring Expenses
—

 
—

 
—

 
2,702

 
2,702

Covenant EBITDA
$
43,408

 
$
40,132

 
$
4,838

 
$
(16,638
)
 
$
71,740


(1) The Company uses certain non-GAAP financial measures to evaluate various aspects of its business. Adjusted EBITDA and Covenant EBITDA are non-GAAP financial measures and should be considered in addition to, not as a substitute for, net income reported in accordance with GAAP. These terms, as defined by Affinity Gaming, may not be comparable to similarly titled measures used by other companies. Adjusted EBITDA is earnings before interest expense, net; income tax; depreciation and amortization; share-based compensation expense; pre-opening costs; write downs, reserves and recoveries; loss on extinguishment or modification of debt; loss on impairment of assets; gains or losses on the disposition of assets; and restructuring and reorganization costs. Covenant EBITDA is Adjusted EBITDA before non-recurring expenses. The Company uses these non-GAAP financial measures of profit and loss to manage the operational performance of each geographical region in which it operates, to analyze corporate expenses, and to discuss its results with the investment community. The Company has chosen to provide this information to investors to enable them to perform more meaningful comparisons of past, present and future operating results and as a means to evaluate the results of core on-going operations. The Company has historically reported Adjusted EBITDA to its investors and believes that the continued inclusion of Adjusted EBITDA as well as Covenant EBITDA provides consistency in its financial reporting. The Company uses these Non-GAAP financial measures because it believes the metrics are useful to investors in allowing greater transparency related to a significant measure used by management in their financial and operational decision-making. Adjusted EBITDA and Covenant EBITDA are among the more significant factors in management’s internal evaluation of total company and individual property performance, the evaluation of incentive compensation related to property management, and the annual budget process. Management also uses these Non-GAAP Financial Measures in the evaluation of potential acquisitions and dispositions. Externally, the Company believes these measures continue to be used by investors in their assessment of the Company’s operating performance and the valuation of the Company. In future periods, the calculation of Adjusted EBITDA may be different than above.


Affinity Gaming Reports