Century Casinos

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08.08.2018

Century Casinos, Inc. Announces Second Quarter 2018 Results

Colorado Springs, Colorado – August 8, 2018 – Century Casinos, Inc. (Nasdaq Capital Market®: CNTY) today announced its financial results for the three and six months ended June 30, 2018. 

 

Second Quarter 2018 Highlights*

  • Net operating revenue was $39.6 million, an increase of 6% from the three months ended June 30, 2017. 
  • Earnings from operations were $1.0 million, a decrease of 73% from the three months ended June 30, 2017.
  • Net earnings attributable to Century Casinos, Inc. shareholders was $0.3 million, a decrease of 82% from the three months ended June 30, 2017. 
  • Adjusted EBITDA** was $4.7 million, a decrease of 27% from the three months ended June 30, 2017. 
  • Earnings per share were $0.01.  
  • Book value per share*** at June 30, 2018 was $6.02.

 

The consolidated results for the three and six months ended June 30, 2018 and 2017 are as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the three months 

 

 

For the six months

Amounts in thousands, except per share data 

ended June 30,

 

 

ended June 30,

Consolidated Results:

 

 

2018

 

 

2017

 

% Change

 

 

2018

 

 

2017

 

% Change

Net Operating Revenue

 

$

39,648

 

$

37,330

 

6%

 

$

80,270

 

$

73,729

 

9%

Earnings from Operations

 

 

996

 

 

3,641

 

(73%)

 

 

4,249

 

 

8,133

 

(48%)

Net Earnings Attributable to Century Casinos, Inc. Shareholders

 

$

317

 

$

1,802

 

(82%)

 

$

1,244

 

$

3,962

 

(69%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA**

 

$

4,661

 

$

6,412

 

(27%)

 

$

11,226

 

$

13,131

 

(15%)

    

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings Per Share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and Diluted

 

$

0.01

 

$

0.07

 

(86%)

 

$

0.04

 

$

0.16

 

(75%)

 

 

 

 “This quarter represented an important period for the long-term success of the Company. We opened our casino in Bath, England in May; we laid the foundation of a land-based presence in Asia with our Vietnam project; and we are finally seeing stability in Poland where we now hold eight casino licenses,” Erwin Haitzmann and Peter Hoetzinger, Co-Chief Executive Officers of Century Casinos remarked. “We are pleased with the growth of net operating revenue driven by strong performances in Canada, which increased 5% in local currency, and Colorado, which increased 7%,” they continued. “Adjusted EBITDA was lower compared to prior year results due to additional non-recurring expenses related to the licensing situation in Poland and the opening of the casino in Bath”, Haitzmann and Hoetzinger concluded. 

 

 

Reportable Segment Results*

The table below shows the Company’s operating segments that are included in each of the Company’s reportable segments as of June 30, 2018:

 

 

Reportable Segment

Operating Segment

Canada

Century Casino & Hotel - Edmonton

Canada

Century Casino St. Albert

Canada

Century Casino Calgary

Canada

Century Downs Racetrack and Casino

Canada

Century Bets!

Canada

Century Mile Racetrack and Casino

United States

Century Casino & Hotel – Central City

United States

Century Casino & Hotel – Cripple Creek

Poland

Casinos Poland

Corporate and Other

Cruise Ships & Other

Corporate and Other

Century Casino Bath

Corporate and Other

Corporate Other

 

The Company’s net operating revenue increased by $2.3 million, or 6%, and by $6.5 million, or 9%, for the three and six months ended June 30, 2018, compared to the three and six months ended June 30, 2017. Following is a summary of the changes in net operating revenue by reportable segment for the three and six months ended June 30, 2018, compared to the three and six months ended June 30, 2017:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Operating Revenue

 

 

For the three months 

 

 

 

 

 

 

For the six months

 

 

 

 

 

 

 

ended June 30,

 

 

 

 

 

 

ended June 30,

 

 

 

 

 

Amounts in thousands

 

2018

 

2017

 

$ Change

 

% Change

 

2018

 

2017

 

$ Change

 

% Change

Canada

 

$

15,331

 

$

14,040

 

$

1,291

 

9%

 

$

30,004

 

$

27,202

 

$

2,802

 

10%

United States

 

 

8,476

 

 

7,943

 

 

533

 

7%

 

 

16,183

 

 

15,443

 

 

740

 

5%

Poland

 

 

14,567

 

 

14,287

 

 

280

 

2%

 

 

31,949

 

 

28,833

 

 

3,116

 

11%

Corporate and Other

 

 

1,274

 

 

1,060

 

 

214

 

20%

 

 

2,134

 

 

2,251

 

 

(117)

 

(5%)

Consolidated 

 

$

39,648

 

$

37,330

 

$

2,318

 

6%

 

$

80,270

 

$

73,729

 

$

6,541

 

9%

 


 

The Company’s earnings from operations decreased by ($2.6) million, or (73%), and by ($3.9) million, or (48%), for the three and six months ended June 30, 2018, compared to the three and six months ended June 30, 2017.  Following is a summary of the changes in earnings (loss) from operations by reportable segment for the three and six months ended June 30, 2018, compared to the three and six months ended June 30, 2017: 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings (Loss) from Operations

 

 

For the three months 

 

 

 

 

 

 

For the six months

 

 

 

 

 

 

 

ended June 30,

 

 

 

 

 

 

ended June 30,

 

 

 

 

 

Amounts in thousands

 

2018

 

2017

 

$ Change

 

% Change

 

2018

 

2017

 

$ Change

 

% Change

Canada

 

$

3,785

 

$

3,647

 

$

138

 

4%

 

$

7,340

 

$

6,694

 

$

646

 

10%

United States

 

 

1,548

 

 

1,346

 

 

202

 

15%

 

 

2,724

 

 

2,504

 

 

220

 

9%

Poland

 

 

(1,351)

 

 

636

 

 

(1,987)

 

(312%)

 

 

(329)

 

 

2,442

 

 

(2,771)

 

(114%)

Corporate and Other

 

 

(2,986)

 

 

(1,988)

 

 

(998)

 

(50%)

 

 

(5,486)

 

 

(3,507)

 

 

(1,979)

 

(56%)

Consolidated 

 

$

996

 

$

3,641

 

$

(2,645)

 

(73%)

 

$

4,249

 

$

8,133

 

$

(3,884)

 

(48%)

 

 

 

 

Net earnings attributable to Century Casinos, Inc. shareholders decreased by ($1.5) million, or (82%), and by ($2.7) million, or (69%), for the three and six months ended June 30, 2018, compared to the three and six months ended June 30, 2017. Following is a summary of the changes in net earnings (loss) attributable to Century Casinos, Inc. shareholders by reportable segment for the three and six months ended June 30, 2018, compared to the three and six months ended June 30, 2017: 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Earnings (Loss) Attributable to Century Casinos, Inc. Shareholders

 

 

For the three months 

 

 

 

 

 

 

For the six months

 

 

 

 

 

 

 

ended June 30,

 

 

 

 

 

 

ended June 30,

 

 

 

 

 

Amounts in thousands

 

2018

 

2017

 

$ Change

 

% Change

 

2018

 

2017

 

$ Change

 

% Change

Canada

 

$

1,947

 

$

1,823

 

$

124

 

7%

 

$

3,972

 

$

3,306

 

$

666

 

20%

United States

 

 

1,151

 

 

836

 

 

315

 

38%

 

 

2,025

 

 

1,553

 

 

472

 

30%

Poland

 

 

(776)

 

 

435

 

 

(1,211)

 

(278%)

 

 

(246)

 

 

1,518

 

 

(1,764)

 

(116%)

Corporate and Other

 

 

(2,005)

 

 

(1,292)

 

 

(713)

 

(55%)

 

 

(4,507)

 

 

(2,415)

 

 

(2,092)

 

(87%)

Consolidated 

 

$

317

 

$

1,802

 

$

(1,485)

 

(82%)

 

$

1,244

 

$

3,962

 

$

(2,718)

 

(69%)

 


 

Items deducted from or added to earnings from operations to arrive at net earnings (loss) attributable to Century Casinos, Inc. shareholders include interest income, interest expense, gains (losses) on foreign currency transactions and other, income tax expense and non-controlling interests. 

 

 

 

 

 

The Company’s Adjusted EBITDA** decreased by ($1.8) million, or (27%), and by ($1.9) million, or (15%), for the three and six months ended June 30, 2018 compared to the three and six months ended June 30, 2017. Following is a summary of the changes in Adjusted EBITDA** by reportable segment for the three and six months ended June 30, 2018 compared to the three and six months ended June 30, 2017:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA**

 

 

For the three months 

 

 

 

 

 

 

For the six months

 

 

 

 

 

 

 

ended June 30,

 

 

 

 

 

 

ended June 30,

 

 

 

 

 

Amounts in thousands

 

2018

 

2017

 

$ Change

 

% Change

 

2018

 

2017

 

$ Change

 

% Change

Canada

 

$

4,992

 

$

4,502

 

$

490

 

11%

 

$

9,702

 

$

8,381

 

$

1,321

 

16%

United States

 

 

2,091

 

 

1,964

 

 

127

 

7%

 

 

3,811

 

 

3,732

 

 

79

 

2%

Poland

 

 

153

 

 

1,574

 

 

(1,421)

 

(90%)

 

 

2,256

 

 

3,952

 

 

(1,696)

 

(43%)

Corporate and Other

 

 

(2,575)

 

 

(1,628)

 

 

(947)

 

(58%)

 

 

(4,543)

 

 

(2,934)

 

 

(1,609)

 

(55%)

Consolidated 

 

$

4,661

 

$

6,412

 

$

(1,751)

 

(27%)

 

$

11,226

 

$

13,131

 

$

(1,905)

 

(15%)

 

 

 

Balance Sheet and Liquidity

As of June 30, 2018, the Company had $54.4million in cash and cash equivalents and $54.3 million in outstanding debt on its balance sheet compared to $74.7million in cash and cash equivalents and $56.7 million in outstanding debt at December 31, 2017. The outstanding debt as of June 30, 2018 included $34.0 million related to the Company’s BMO Credit Agreement, $2.8 million of bank debt related to Casinos Poland, $2.6 million of bank debt related to Century Casino Bath, $0.3 million related to capital leases for Century Resorts Alberta, Century Casino Calgary, Century Casino St. Albert, Century Downs Racetrack and Casino (“CDR”) and Century Mile Racetrack and Casino, and $14.8 million related to a long-term land lease for CDR, net of $0.2 million in deferred financing costs. 

 

 

Conference Call Information

Today the Company will post a copy of its quarterly report on Form 10-Q filed with the SEC for the quarter ended June 30, 2018 on its website athttp://corporate.cnty.com/investor-relations/sec-filings. The Company will also post a presentation on the second quarter results on its website at http://corporate.cnty.com/investor-relations/presentations-and-interviews.

 

The Company will host its second quarter 2018 earnings conference call tomorrow, Thursday, August 9th, at 8:00 am MDT; 4:00 pm CEST, respectively. U.S. domestic participants should dial 1-844-244-9160. For all international participants, please use 330-931-4670to dial-in. Participants may listen to the call live at https://centurycasinos.adobeconnect.com/earningsreleaseor obtain a recording of the call on the Company’s website until August 31, 2018 at http://corporate.cnty.com/investor-relations/sec-filings.


 

(continued)

CENTURY CASINOS, INC. AND SUBSIDIARIES

FINANCIAL INFORMATION – US GAAP BASIS 

 

Condensed Consolidated Statements of Earnings 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  

For the three months 

For the six months

 

ended June 30,

ended June 30,

Amounts in thousands, except for per share information

 

2018

 

2017

 

2018

 

2017

Operating revenue:

 

 

 

 

 

 

 

 

 

 

 

 

Net operating revenue

 

$

39,648

 

$

37,330

 

$

80,270

 

$

73,729

Operating costs and expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Total operating costs and expenses

 

 

38,651

 

 

33,689

 

 

76,020

 

 

65,596

Loss from equity investment

 

 

(1)

 

 

 —

 

 

(1)

 

 

 —

Earnings from operations

 

 

 996 

 

 

 3,641 

 

 

 4,249 

 

 

 8,133 

Non-operating income (expense), net

 

 

 (885)

 

 

 (607)

 

 

 (1,838)

 

 

 (1,304)

Earnings before income taxes 

 

 

 111 

 

 

 3,034 

 

 

 2,411 

 

 

 6,829 

Income tax provision

 

 

 (14)

 

 

 (864)

 

 

 (993)

 

 

 (1,859)

Net earnings 

 

 

 97 

 

 

 2,170 

 

 

 1,418 

 

 

 4,970 

Net loss (earnings) attributable to non-controlling interests

 

 

 220 

 

 

 (368)

 

 

 (174)

 

 

 (1,008)

Net earnings attributable to Century Casinos, Inc. shareholders

 

$

 317 

 

$

 1,802 

 

$

 1,244 

 

$

 3,962 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share attributable to Century Casinos, Inc.:

 

 

 

 

 

 

 

 

 

 

 

 

  Basic 

 

$

0.01

 

$

0.07

 

$

0.04

 

$

0.16

  Diluted 

 

$

0.01

 

$

0.07

 

$

0.04

 

$

0.16

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares

 

 

 

 

 

 

 

 

 

 

 

 

  Basic 

 

 

29,376

 

 

24,466

 

 

29,369

 

 

24,460

  Diluted 

 

 

29,974

 

 

24,962

 

 

29,984

 

 

24,911

 


 

CENTURY CASINOS, INC. AND SUBSIDIARIES

FINANCIAL INFORMATION – US GAAP BASIS 

 

 

 

 

 

 

 

 

Condensed Consolidated Balance Sheets 

 

 

 

 

 

 

(Amounts in thousands)

 

 

 

 

 

 

 

 

June 30, 

 

December 31, 

 

 

2018

 

2017

Assets

 

 

 

 

 

 

Current assets

 

$

63,188

 

$

84,321

Property and equipment, net

 

 

169,809

 

 

152,778

Other assets

 

 

36,410

 

 

37,777

Total assets

 

$

269,407

 

$

274,876

 

 

 

 

 

 

 

Liabilities and Equity

 

 

 

 

 

 

Current liabilities

 

$

37,198

 

$

34,438

Non-current liabilities

 

 

47,960

 

 

53,120

Century Casinos, Inc. shareholders' equity

 

 

176,884

 

 

179,897

Non-controlling interests

 

 

7,365

 

 

7,421

Total liabilities and equity

 

$

269,407

 

$

274,876

 

 

CENTURY CASINOS, INC. AND SUBSIDIARIES

SUPPLEMENTAL INFORMATION

Constant Currency* Results (unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the three months 

 

 

 

For the six months

 

 

 

 

ended June 30,

 

 

 

ended June 30,

 

 

Amounts in thousands

 

 

2018

 

 

2017

 

% Change

 

 

2018

 

 

2017

 

% Change

Net operating revenue as reported (GAAP)

 

$

39,648

 

$

37,330

 

6%

 

$

80,270

 

$

73,729

 

9%

Foreign currency impact vs. 2017

 

 

(1,608)

 

 

 

 

 

 

 

(5,035)

 

 

 

 

 

Net operating revenue constant currency (non-GAAP)*

 

$

38,040

 

$

37,330

 

2%

 

$

75,235

 

$

73,729

 

2%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings from operations (GAAP)

 

$

996

 

$

3,641

 

(73%)

 

$

4,249

 

$

8,133

 

(48%)

Foreign currency impact vs. 2017

 

 

(16)

 

 

 

 

 

 

 

(230)

 

 

 

 

 

Earnings from operations constant currency (non-GAAP)*

 

$

980

 

$

3,641

 

(73%)

 

$

4,019

 

$

8,133

 

(51%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net earnings attributable to Century Casinos, Inc. shareholders as reported (GAAP)

 

$

317

 

$

1,802

 

(82%)

 

$

1,244

 

$

3,962

 

(69%)

Foreign currency impact vs. 2017

 

 

(10)

 

 

 

 

 

 

 

(61)

 

 

 

 

 

Net earnings attributable to Century Casinos, Inc. shareholders constant currency (non-GAAP)*

 

$

307

 

$

1,802

 

(83%)

 

$

1,183

 

$

3,962

 

(70%)

 

Gains and losses on foreign currency transactions are added back to net earnings in the Company’s Adjusted EBITDA** calculations. As such, there is no foreign currency impact to Adjusted EBITDA** when calculating Constant Currency* results.

Adjusted EBITDA Margins *** (unaudited)

 

 

 

 

 

 

 

 

 

 

For the three months 

For the six months

 

ended June 30,

ended June 30,

 

2018

2017

2018

2017

Canada

33%

32%

32%

31%

United States

25%

25%

24%

24%

Poland

1%

11%

7%

14%

Corporate and Other

(202%)

(154%)

(213%)

(130%)

Consolidated Adjusted EBITDA Margin

12%

17%

14%

18%

 

 

 

CENTURY CASINOS, INC. AND SUBSIDIARIES

SUPPLEMENTAL INFORMATION

Reconciliation of Adjusted EBITDA ** to Net Earnings (Loss) Attributable to Century Casinos, Inc. Shareholders by Reportable Segment. 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the three months ended June 30, 2018

Amounts in thousands

 

Canada

 

United States

 

Poland

 

Corporate and Other

 

Total

Net earnings (loss)

 

$

1,947

 

$

1,151

 

$

(776)

 

$

(2,005)

 

$

317

Interest expense (income), net

 

 

1,020

 

 

 

 

36

 

 

19

 

 

1,075

Income taxes (benefit)

 

 

684

 

 

397

 

 

(210)

 

 

(857)

 

 

14

Depreciation and amortization

 

 

798

 

 

546

 

 

673

 

 

153

 

 

2,170

Net earnings (loss) attributable to non-controlling interests

 

 

199

 

 

 

 

(389)

 

 

(30)

 

 

(220)

Non-cash stock-based compensation

 

 

 

 

 

 

 

 

232

 

 

232

Gain on foreign currency transactions and cost recovery income

 

 

(65)

 

 

 

 

(12)

 

 

(113)

 

 

(190)

Loss (Gain) on disposition of fixed assets

 

 

1

 

 

(3)

 

 

831

 

 

 

 

829

Pre-opening expenses

 

 

408

 

 

 

 

 

 

26

 

 

434

Adjusted EBITDA

 

$

4,992

 

$

2,091

 

$

153

 

$

(2,575)

 

$

4,661

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the three months ended June 30, 2017

Amounts in thousands

 

Canada

 

United States

 

Poland

 

Corporate and Other

 

Total

Net earnings (loss)

 

$

1,823

 

$

836

 

$

435

 

$

(1,292)

 

$

1,802

Interest expense (income), net

 

 

867

 

 

 

 

29

 

 

(8)

 

 

888

Income taxes (benefit)

 

 

794

 

 

510

 

 

198

 

 

(638)

 

 

864

Depreciation and amortization

 

 

845

 

 

618

 

 

472

 

 

83

 

 

2,018

Net earnings attributable to non-controlling interests

 

 

150

 

 

 

 

218

 

 

 

 

368

Non-cash stock-based compensation

 

 

 

 

 

 

 

 

126

 

 

126

Loss (gain) on foreign currency transactions and cost recovery income

 

 

13

 

 

 

 

(244)

 

 

(50)

 

 

(281)

Loss on disposition of fixed assets

 

 

10

 

 

 

 

241

 

 

 

 

251

Acquisition costs

 

 

 

 

 

 

 

 

151

 

 

151

Pre-opening expenses

 

 

 

 

 

 

225

 

 

 

 

225

Adjusted EBITDA

 

$

4,502

 

$

1,964

 

$

1,574

 

$

(1,628)

 

$

6,412

 

 


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the six months ended June 30, 2018

Amounts in thousands

 

Canada

 

United States

 

Poland

 

Corporate and Other

 

Total

Net earnings (loss)

 

$

3,972

 

$

2,025

 

$

(246)

 

$

(4,507)

 

$

1,244

Interest expense (income), net

 

 

1,959

 

 

 

 

110

 

 

18

 

 

2,087

Income taxes (benefit)

 

 

1,219

 

 

699

 

 

112

 

 

(1,037)

 

 

993

Depreciation and amortization

 

 

1,670

 

 

1,086

 

 

1,322

 

 

245

 

 

4,323

Net earnings (loss) attributable to non-controlling interests

 

 

328

 

 

 

 

(124)

 

 

(30)

 

 

174

Non-cash stock-based compensation

 

 

 

 

 

 

 

 

347

 

 

347

(Gain) loss on foreign currency transactions and cost recovery income

 

 

(138)

 

 

 

 

(181)

 

 

70

 

 

(249)

Loss on disposition of fixed assets

 

 

3

 

 

1

 

 

858

 

 

1

 

 

863

Pre-opening expenses

 

 

689

 

 

 

 

405

 

 

350

 

 

1,444

Adjusted EBITDA

 

$

9,702

 

$

3,811

 

$

2,256

 

$

(4,543)

 

$

11,226

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the six months ended June 30, 2017

Amounts in thousands

 

Canada

 

United States

 

Poland

 

Corporate and Other

 

Total

Net earnings (loss)

 

$

3,306

 

$

1,553

 

$

1,518

 

$

(2,415)

 

$

3,962

Interest expense (income), net

 

 

1,785

 

 

 

 

16

 

 

(12)

 

 

1,789

Income taxes (benefit)

 

 

1,324

 

 

951

 

 

612

 

 

(1,028)

 

 

1,859

Depreciation and amortization

 

 

1,648

 

 

1,228

 

 

1,044

 

 

183

 

 

4,103

Net earnings attributable to non-controlling interests

 

 

248

 

 

 

 

760

 

 

 

 

1,008

Non-cash stock-based compensation

 

 

 

 

 

 

 

 

235

 

 

235

Loss (gain) on foreign currency transactions and cost recovery income

 

 

31

 

 

 

 

(464)

 

 

(52)

 

 

(485)

Loss on disposition of fixed assets

 

 

11

 

 

 

 

241

 

 

3

 

 

255

Acquisition costs

 

 

28

 

 

 

 

 

 

152

 

 

180

Pre-opening expenses

 

 

 

 

 

 

225

 

 

 

 

225

Adjusted EBITDA

 

$

8,381

 

$

3,732

 

$

3,952

 

$

(2,934)

 

$

13,131

 

 

CENTURY CASINOS, INC. AND SUBSIDIARIES

SUPPLEMENTAL INFORMATION

*  The impact of foreign exchange rates is highly variable and difficult to predict.  The Company uses a Constant Currencybasis to show the impact from foreign exchange rates on current period revenue compared to prior period revenue using the prior period’s foreign exchange rates. In order to properly understand the underlying business trends and performance of the Company’s ongoing operations, management believes that investors may find it useful to consider the impact of excluding changes in foreign exchange rates from the Company’s net operating revenue, earnings from operations and net earnings (loss) attributable to Century Casinos, Inc. shareholders. Constant currency results are calculated by dividing the current quarter or year to date local currency segment results, excluding the local currency impact of foreign currency gains and losses, by the prior year’s average exchange rate for the quarter or year to date and comparing them to actual U.S. dollar results for the prior quarter or year to date. The average exchange rates for the current quarter and the prior year second quarter are reported in Item 1 of the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2018. Constant currency information is not a measure of financial performance under generally accepted accounting principles in the United States of America (GAAP) and should not be considered a substitute for net operating revenue, earnings from operations or net earnings attributable to Century Casinos, Inc. shareholders as determined in accordance with GAAP.

 

 

**  The Company definesAdjusted EBITDA as net earnings (loss) attributable to Century Casinos, Inc. shareholders before interest expense (income), net, income taxes (benefit), depreciation, amortization, non-controlling interest net earnings (loss) and transactions, pre-opening expenses, acquisition costs, non-cash stock-based compensation charges, asset impairment costs, (gain) loss on disposition of fixed assets, discontinued operations, (gain) loss on foreign currency transactions and other, gain on business combination and certain other one-time items, such as acquisition and disposition costs and gain or loss. Intercompany transactions consisting primarily of management and royalty fees and interest, along with their related tax effects, are excluded from the presentation of net earnings (loss) and Adjusted EBITDA reported for each segment. Not all of the aforementioned items occur in each reporting period, but have been included in the definition based on historical activity. These adjustments have no effect on the consolidated results as reported under GAAP. Adjusted EBITDA is not considered a measure of performance recognized under GAAP. Management believes that Adjusted EBITDA is a valuable measure of the relative performance of the Company and its properties. The gaming industry commonly uses Adjusted EBITDA as a method of arriving at the economic value of a casino operation. Management uses Adjusted EBITDA to compare the relative operating performance of separate operating units by eliminating the above mentioned items associated with the varying levels of capital expenditures for infrastructure required to generate revenue and the often high cost of acquiring existing operations. Adjusted EBITDA is used by the Company’s lending institution to gauge operating performance. The Company’s computation of Adjusted EBITDA may be different from, and therefore may not be comparable to, similar measures used by other companies within the gaming industry. Please see the reconciliation of Adjusted EBITDA to net earnings (loss) attributable to Century Casinos, Inc. shareholders above. 

 

*** The Company defines Adjusted EBITDA marginas Adjusted EBITDA divided by net operating revenue. Adjusted EBITDA margin is a non- GAAP measure. Management uses this margin as one of several measures to evaluate the efficiency of the Company’s casino operations.

 

 

 

 

 

CENTURY CASINOS, INC. AND SUBSIDIARIES

SUPPLEMENTAL INFORMATION

About Century Casinos, Inc.:

Century Casinos, Inc. is an international casino entertainment company that operates worldwide. The Company owns and operates Century Casino & Hotels in Cripple Creek and Central City, Colorado, and in Edmonton, Alberta, Canada and the Century Casino in Calgary and St. Albert, Alberta, Canada and in Bath, England. Through its Austrian subsidiary, Century Resorts Management GmbH (“CRM”), formerly Century Casinos Europe GmbH, the Company holds a 66.6% ownership interest in Casinos Poland Ltd., the owner of eight casino licenses throughout Poland. Six of the casinos in Poland are operating as of August 8, 2018. The Company, through CRM, also holds 75% ownership interests in bothCDR, which operates in the north metropolitan area of Calgary, Alberta, Canada, and Century Bets! Inc., which operates the pari-mutuel off-track horse betting network in southern Alberta, Canada. The Company holds a 51% ownership interest in Golden Hospitality Ltd., a company that manages a hotel and international entertainment and gaming club in Vietnam. The Company operates 13 ship-based casinos under agreements with four cruise ship owners. The Company, through CRM, also owns a 7.5% interest in, and provides consulting services to, Mendoza Central Entretenimientos S.A., a company that provides gaming-related services to Casino de Mendoza in Mendoza, Argentina. The Company is also developing Century Mile Racetrack and Casino in Edmonton, Alberta, Canada. The Companycontinues to pursue other international projects in various stages of development.

Century Casinos’ common stock trades on The Nasdaq Capital Market® under the symbol CNTY.

For more information about Century Casinos, visit our website at www.cnty.com. 

 

 

CENTURY CASINOS, INC. AND SUBSIDIARIES

SUPPLEMENTAL INFORMATION

This release may contain “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. These statements are based on the beliefs and assumptions of the management of Century Casinos based on information currently available to management. Such forward-looking statements include, but are not limited to, statements regarding future results of operations, operating efficiencies, synergies and operational performance, the prospects for and timing and costs of new projects, projects in development and other opportunities, including the Century Mile, Bermuda and Vietnam projects, debt repayment, investments in joint ventures, outcomes of legal proceedings, changes in our tax provisions or exposure to additional income tax liabilities, and plans for our casinos and our Company. Such forward-looking statements are subject to risks, uncertainties and other factors that could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. Important factors that could cause actual results to differ materially from the forward-looking statements include, among others, the risks described in the section entitled “Risk Factors” under Item 1A in our Annual Report on Form 10-K for the year ended December 31, 2017 and in subsequent periodic and current SEC filings we may make. Century Casinos disclaims any obligation to revise or update any forward-looking statement that may be made from time to time by it or on its behalf.

 

 

Files:
Exhibit_99.1_Earnings_Release_Q2_2018_FINAL.pdf (254 Ki)