NOTE 13. CONDENSED CONSOLIDATED GUARANTOR DATA

All of our current and future domestic subsidiaries which guarantee the New Credit Facility also fully and unconditionally guarantee our payment obligations under the 2018 Notes on a senior unsecured basis (see Note 8 for more information regarding our debt). All of the guarantees are joint and several, and all of the guarantor subsidiaries are wholly-owned by us.

We prepared and are presenting the condensed consolidating financial statements in this footnote using the same accounting policies which we used to prepare the financial information located elsewhere in our unaudited condensed consolidated interim financial statements and related footnotes. Although Affinity Gaming Finance Corp. (“AG Finance”), a wholly-owned subsidiary of the Company, is a co-issuer of the 2018 Notes, we present our indebtedness as an obligation of Affinity Gaming only. AG Finance reflects no activity during any period presented, and we did not have any non-guarantor subsidiaries during any period presented.

Affinity Gaming

Unaudited Condensed Consolidating Balance Sheet

March 31, 2016

(in thousands)



	Affinity Gaming (Co-Issuer)		AG Finance (Co-Issuer)		Guarantor Subsidiaries		Eliminating Entries			Total
ASSETS
Cash and cash equivalents	$	112,944	$	—	$	56,068	$	—		$	169,012
Restricted cash	469		—		139		—			608
Accounts receivable, net	162		—		2,473		—			2,635
Income tax receivable	16		—		—		—			16
Prepaid expense	1,164		—		8,395		—			9,559
Inventory	—		—		2,740		—			2,740
Total current assets	114,755		—		69,815		—			184,570
Property and equipment, net	1,474		—		245,874		—			247,348
Intercompany receivables	—		—		115,601		(115,601		)	—
Investment in subsidiaries	558,229		—		—		(558,229		)	—
Other assets, net	1,973		—		1,527		—			3,500
Intangibles, net	—		—		123,416		—			123,416
Goodwill	—		—		48,287		—			48,287
Total assets	$	676,431	$	—	$	604,520	$	(673,830	)	$	607,121

LIABILITIES AND OWNERS’ EQUITY
Accounts payable	$	1,562	$	—	$	7,143	$	—		$	8,705
Intercompany payables	115,601		—		—		(115,601		)	—
Accrued interest	6,854		—		—		—			6,854
Accrued expense	754		—		22,446		—			23,200
Current maturities of long-term debt	11,494		—		—		—			11,494
Other current liabilities	—		—		15		—			15
Total current liabilities	136,265		—		29,604		(115,601		)	50,268
Long-term debt, less current portion	364,878		—		—		—			364,878
Other liabilities	1,290		—		545		—			1,835
Deferred income taxes	232		—		16,142		—			16,374
Total liabilities	502,665		—		46,291		(115,601		)	433,355

Common stock	20		—		—		—			20
Other equity	173,746		—		558,229		(558,229		)	173,746
Total owners’ equity	173,766		—		558,229		(558,229		)	173,766
Total liabilities and owners’ equity	$	676,431	$	—	$	604,520	$	(673,830	)	$	607,121

Affinity Gaming

Condensed Consolidating Balance Sheet

December 31, 2015

(in thousands)



	Affinity Gaming (Co-Issuer)		AG Finance (Co-Issuer)		Guarantor Subsidiaries		Eliminating Entries			Total
ASSETS
Cash and cash equivalents	$	106,384	$	—	$	51,395	$	—		$	157,779
Restricted cash	469		—		139		—			608
Accounts receivable, net	220		—		2,997		—			3,217
Income tax receivable	16		—		—		—			16
Prepaid expense	1,813		—		8,266		—			10,079
Inventory	—		—		2,798		—			2,798
Total current assets	108,902		—		65,595		—			174,497
Property and equipment, net	2,002		—		249,906		—			251,908
Intercompany receivables	—		—		110,150		(110,150		)	—
Investment in subsidiaries	551,953		—		—		(551,953		)	—
Other assets, net	1,974		—		1,556		—			3,530
Intangibles, net	—		—		124,042		—			124,042
Goodwill	—		—		48,287		—			48,287
Total assets	$	664,831	$	—	$	599,536	$	(662,103	)	$	602,264

LIABILITIES AND OWNERS’ EQUITY
Accounts payable	$	3,483	$	—	$	9,737	$	—		$	13,220
Intercompany payables	110,150		—		—		(110,150		)	—
Accrued interest	2,327		—		—		—			2,327
Accrued expense	1,455		—		22,703		—			24,158
Current maturities of long-term debt	11,383		—		—		—			11,383
Other current liabilities	—		—		23		—			23
Total current liabilities	128,798		—		32,463		(110,150		)	51,111
Long-term debt, less current portion	364,204		—		—		—			364,204
Other liabilities	1,397		—		535		—			1,932
Deferred income taxes	173		—		14,585		—			14,758
Total liabilities	494,572		—		47,583		(110,150		)	432,005

Common stock	20		—		—		—			20
Other equity	170,239		—		551,953		(551,953		)	170,239
Total owners’ equity	170,259		—		551,953		(551,953		)	170,259
Total liabilities and owners’ equity	$	664,831	$	—	$	599,536	$	(662,103	)	$	602,264

Affinity Gaming

Unaudited Condensed Consolidating Statement of Operations

Quarter ended March 31, 2016

(in thousands)



	Affinity Gaming (Co-Issuer)			AG Finance (Co-Issuer)		Guarantor Subsidiaries			Eliminating Entries			Total
REVENUE
Casino	$	—		$	—	$	71,883		$	—		$	71,883
Food and beverage	—			—		10,824			—			10,824
Lodging	—			—		6,398			—			6,398
Fuel and retail	—			—		12,140			—			12,140
Other	—			—		3,314			—			3,314
Total revenue	—			—		104,559			—			104,559
Promotional allowances	—			—		(8,809		)	—			(8,809		)
Net revenue	—			—		95,750			—			95,750
EXPENSE
Casino	—			—		27,381			—			27,381
Food and beverage	—			—		10,792			—			10,792
Lodging	—			—		4,348			—			4,348
Fuel and retail	—			—		8,297			—			8,297
Other	—			—		1,507			—			1,507
General and administrative	—			—		18,713			—			18,713
Depreciation and amortization	245			—		7,139			—			7,384
Corporate	4,884			—		—			—			4,884
Write downs, reserves and recoveries	24			—		28			—			52
Total expense	5,153			—		78,205			—			83,358
Operating income (loss)	(5,153		)	—		17,545			—			12,392
Other income (expense)
Interest expense, net	(7,665		)	—		—			—			(7,665		)
Intercompany interest income	7,738			—		—			(7,738		)	—
Intercompany interest expense	—			—		(7,738		)	7,738			—
Income from equity investments in subsidiaries	6,276			—		—			(6,276		)	—
Total other expense, net	6,349			—		(7,738		)	(6,276		)	(7,665		)
Income (loss) before income tax	1,196			—		9,807			(6,276		)	4,727
Benefit (provision) for income taxes	1,915			—		(3,531		)	—			(1,616		)
Net income (loss)	$	3,111		$	—	$	6,276		$	(6,276	)	$	3,111

Affinity Gaming

Unaudited Condensed Consolidating Statement of Operations

Quarter ended March 31, 2015

(in thousands)



	Affinity Gaming (Co-Issuer)			AG Finance (Co-Issuer)		Guarantor Subsidiaries			Eliminating Entries			Total
REVENUE
Casino	$	—		$	—	$	75,097		$	—		$	75,097
Food and beverage	—			—		11,961			—			11,961
Lodging	—			—		7,032			—			7,032
Fuel and retail	—			—		12,576			—			12,576
Other	—			—		2,895			—			2,895
Total revenue	—			—		109,561			—			109,561
Promotional allowances	—			—		(12,583		)	—			(12,583		)
Net revenue	—			—		96,978			—			96,978
EXPENSE
Casino	—			—		29,734			—			29,734
Food and beverage	—			—		11,827			—			11,827
Lodging	—			—		3,909			—			3,909
Fuel and retail	—			—		9,264			—			9,264
Other	—			—		1,530			—			1,530
General and administrative	—			—		18,717			—			18,717
Depreciation and amortization	311			—		6,852			—			7,163
Corporate	3,937			—		—			—			3,937
Write downs, reserves and recoveries	—			—		135			—			135
Total expense	4,248			—		81,968			—			86,216
Operating income (loss)	(4,248		)	—		15,010			—			10,762
Other income (expense)
Interest expense, net	(7,605		)	—		—			—			(7,605		)
Intercompany interest income	7,648			—		—			(7,648		)	—
Intercompany interest expense	—			—		(7,648		)	7,648			—
Income from equity investments in subsidiaries	(560		)	—		—			560			—
Total other income (expense), net	(517		)	—		(7,648		)	560			(7,605		)
Income (loss) before income tax	(4,765		)	—		7,362			560			3,157
Benefit (provision) for income taxes	4,525			—		(7,922		)	—			(3,397		)
Net income (loss)	$	(240	)	$	—	$	(560	)	$	560		$	(240	)

Affinity Gaming

Unaudited Condensed Consolidating Statement of Cash Flows

Three Months Ended March 31, 2016

(in thousands)



	Affinity Gaming (Co-Issuer)			AG Finance (Co-Issuer)		Guarantor Subsidiaries			Total
Net cash (used in) provided by operating activities	$	(5,965	)	$	—	$	21,744		$	15,779

Cash flows from investing activities:
Proceeds from sale of property and equipment	—			—		17			17
Purchases of property and equipment	(846		)	—		(3,636		)	(4,482		)
Net cash used in investing activities	$	(846	)	$	—	$	(3,619	)	$	(4,465	)

Cash flows from financing activities:
Change in intercompany accounts	13,444			—		(13,444		)	—
Payments on capital lease	—			—		(8		)	(8		)
Repurchases of vested share-based awards	(73		)	—		—			(73		)
Net cash provided by (used in) financing activities	$	13,371		$	—	$	(13,452	)	$	(81	)

Net increase in cash and cash equivalents	6,560			—		4,673			11,233

Cash and cash equivalents
Beginning of year	106,384			—		51,395			157,779
End of period	$	112,944		$	—	$	56,068		$	169,012

Affinity Gaming

Unaudited Condensed Consolidating Statement of Cash Flows

Three Months Ended March 31, 2015

(in thousands)



	Affinity Gaming (Co-Issuer)			AG Finance (Co-Issuer)		Guarantor Subsidiaries			Total
Net cash (used in) provided by operating activities	$	(587	)	$	—	$	18,748		$	18,161

Cash flows from investing activities:
Proceeds from sale of property and equipment	—			—		1			1
Purchases of property and equipment	(288		)	—		(2,837		)	(3,125		)
Net cash used in investing activities	$	(288	)	$	—	$	(2,836	)	$	(3,124	)

Cash flows from financing activities:
Change in intercompany accounts	10,789			—		(10,789		)	—
Payments on capital lease	—			—		(8		)	(8		)
Repurchases of vested share-based awards	(47		)	—		—			(47		)
Net cash provided by (used in) financing activities	$	10,742		$	—	$	(10,797	)	$	(55	)

Net increase in cash and cash equivalents	9,867			—		5,115			14,982

Cash and cash equivalents
Beginning of year	88,737			—		46,438			135,175
End of period	$	98,604		$	—	$	51,553		$	150,157