Affinity Gaming posts fourth-quarter profit

Las Vegas-based Affinity Gaming LLC rebounded to profitability in the fourth quarter of 2011, according to the company’s filings to the Securities and Exchange Commission.

Affinity, formerly Herbst Gaming, reported earnings of $3.8 million on revenue of $105.7 million for the quarter that ended Dec. 31 compared with a loss of $73.8 million on revenue of $101 million in the final quarter of 2010.

Affinity emerged from Chapter 11 bankruptcy protection on Dec. 31 and is under new ownership.

The company, which operates Las Vegas’ Terrible’s casino, sold its Searchlight casino and a portion of its slot route operations affiliated with Terrible Herbst convenience stores to Las Vegas-based JETT Gaming LLC on Feb. 27. Two days later, It sold the remainder of its slot route operations and its two Pahrump casinos to Golden Gaming, a Las Vegas tavern operator that owns the PT’s Pub franchise.

In connection with the Golden Gaming deal, Affinity acquired from Golden the Golden Mardi Gras, Golden Gates and Golden Gulch casinos in Black Hawk, Colo., and leased them back to Golden until Affinity is licensed in Colorado, which is expected to occur in the second half of 2012.

Between the two transactions, Affinity will pay Golden $4.2 million.

For all of 2011, Affinity reported earnings of $7.3 million on revenue of $431.9 million compared with earnings of $385.7 million on revenue of $431.9 million in 2010. The company’s 2010 revenue included proceeds from asset sales in the bankruptcy.

Gaming

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