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AFFINITY GAMING FILES (8-K) Disclosing Regulation FD Disclosure

July 1, 2014



Item 7.01 Regulation FD Disclosure.

Preliminary Results for Fiscal Quarter Ended June 30, 2014

Based on the information available to us as of the date of this Form 8-K, we estimate our net revenue for the fiscal quarter ending June 30, 2014 will be between $95.6 million and $99.4 million, as compared to $100.3 million for the fiscal quarter ended June 30, 2013, and we estimate our Adjusted EBITDA for the fiscal quarter ending June 30, 2014 will be between $12.5 million and $13.0 million, as compared to $17.8 million for the fiscal quarter ending June 30, 2013. Based on such estimates and the information available to us as of the date of this Form 8-K, we anticipate that, as of June 30, 2014, an event of default will have occurred under our senior secured credit facility due to non-compliance with certain financial covenants contained therein. We are working with our advisors and lenders to reach a solution to this matter, which solution may include an amendment, waiver or refinancing. We are, and expect to remain, current on all obligations, including those under both our senior secured credit facility and our senior unsecured notes due 2018. The following tables reconcile projected/actual operating income from continuing operations to projected/actual Adjusted EBITDA from continuing operations (in millions): Fiscal Quarter Ending June 30,



2014 - Low End of Range

Operating Income



Write Downs,

from Continuing Depreciation and



Share-Based Reserves and

Operations Amortization Compensation Recoveries Adjusted EBITDA Continuing operations $ 5.0 $ 6.9 $ 0.1 $ 0.5 $ 12.5 Fiscal Quarter Ending June 30, 2014 - High End of Range Operating Income



Write Downs,

from Continuing Depreciation and



Share-Based Reserves and

Operations Amortization Compensation Recoveries Adjusted EBITDA Continuing operations $ 5.5 $ 6.9 $ 0.1 $ 0.5 $ 13.0 Fiscal Quarter Ending June 30, 2013 Write Downs, Operating Income from Depreciation and Share-Based Reserves and Continuing Operations Amortization Compensation Recoveries Adjusted EBITDA Continuing operations $ 9.1 $ 6.7 $ 0.4 $ 1.6 $ 17.8



Estimated Expense Related to Second Data Security Breach

Based on information available to us as of the date of this Form 8-K, we estimate the incremental expense associated with the second data breach will be approximately $900,000 for the fiscal year ending December 31, 2014. We disclosed the second data breach in the Form 8-K we filed on May 16, 2014.

Additional Financial Information

We expect our cash balance as of June 30, 2014 to be between approximately $135 million and $137 million, and we have debt with a total principal amount of $382.7 million, comprised of the $182.7 million outstanding under the senior secured credit facility and the $200 million of senior unsecured notes outstanding, as of June 30, 2014.



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Source: Edgar Glimpses


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