Document and Entity Information
v0.0.0.0
Document and Entity Information
 9 Months Ended
Sep. 30, 2013
Oct. 25, 2013
Document and Entity Information [Abstract]    
Document Type 10-Q  
Amendment Flag false  
Document Period End Date Sep. 30, 2013  
Document Fiscal Year Focus 2013  
Document Fiscal Period Focus Q3  
Entity Registrant Name CENTURY CASINOS INC /CO/  
Entity Central Index Key 0000911147  
Current Fiscal Year End Date --12-31  
Entity Filer Category Smaller Reporting Company  
Entity Common Stock, Shares Outstanding   24,377,761

Condensed Consolidated Balance Sheets
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Condensed Consolidated Balance Sheets (USD $)
In Thousands, unless otherwise specified
Sep. 30, 2013
Dec. 31, 2012
ASSETS    
Cash and cash equivalents $ 30,447 $ 24,747
Receivables, net 847 700
Prepaid expenses 765 608
Inventories 490 311
Other current assets 96 86
Deferred income taxes 420 83
Restricted cash 268 0
Total current assets 33,333 26,535
Property and equipment, net 113,726 99,526
Goodwill 13,133 4,941
Equity investment 0 3,346
Deferred income taxes 3,197 2,145
Casino licenses 2,309 0
Trademark 2,059 104
Notes receivable 500 0
Security deposits 712 77
Other assets 373 401
Restricted cash 0 261
Total assets 169,342 137,336
LIABILITIES AND SHAREHOLDERS' EQUITY    
Current portion of long-term debt 6,234 372
Accounts payable and accrued liabilities 6,628 6,379
Accrued payroll 4,291 2,806
Taxes payable 4,083 3,413
Contingent liability (Note 3) 5,868 0
Deferred income taxes 101 101
Total current liabilities 27,205 13,071
Long-term debt, less current portion 9,783 3,192
Taxes payable 237 237
Deferred income taxes 3,571 2,680
Total liabilities 40,796 19,180
Commitments and Contingencies      
Shareholders' Equity:    
Preferred stock; $0.01 par value; 20,000,000 shares authorized; no shares issued or outstanding 0 0
Common stock; $0.01 par value; 50,000,000 shares authorized; 24,377,761 and 24,243,926 shares issued; 24,377,761 and 24,128,114 outstanding 244 243
Additional paid-in capital 75,116 75,388
Retained earnings 44,630 38,238
Accumulated other comprehensive earnings 2,859 4,569
Treasury stock - 0 and 115,812 shares at cost 0 (282)
Total Century Casinos shareholders' equity 122,849 118,156
Noncontrolling interest 5,697 0
Total equity 128,546 118,156
Total liabilities and shareholders' equity $ 169,342 $ 137,336

Condensed Consolidated Balance Sheets (Parenthetical)
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Condensed Consolidated Balance Sheets (Parenthetical) (USD $)
Sep. 30, 2013
Dec. 31, 2012
Condensed Consolidated Balance Sheets [Abstract]    
Preferred stock, par value $ 0.01 $ 0.01
Preferred stock, shares authorized 20,000,000 20,000,000
Preferred stock, shares issued 0 0
Preferred stock, shares outstanding 0 0
Common stock, par value $ 0.01 $ 0.01
Common stock, shares authorized 50,000,000 50,000,000
Common stock, shares issued 24,377,761 24,243,926
Common stock, shares outstanding 24,377,761 24,128,114
Treasury stock, shares 0 115,812

Condensed Consolidated Statements of Earnings
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Condensed Consolidated Statements of Earnings (USD $)
In Thousands, except Share data, unless otherwise specified
 3 Months Ended 9 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Sep. 30, 2013
Sep. 30, 2012
Operating revenue:        
Gaming $ 26,758 $ 16,778 $ 68,603 $ 47,746
Hotel, bowling, food and beverage 3,141 3,189 9,554 9,645
Other 923 1,041 2,802 3,086
Gross revenue 30,822 21,008 80,959 60,477
Less: Promotional allowances (1,996) (2,285) (5,795) (6,395)
Net operating revenue 28,826 18,723 75,164 54,082
Operating costs and expenses:        
Gaming 13,959 7,954 34,401 22,645
Hotel, bowling, food and beverage 2,691 2,534 7,787 7,391
General and administrative 9,121 5,385 22,678 16,010
Depreciation and amortization 1,685 1,178 4,671 3,535
Total operating costs and expenses 27,456 17,051 69,537 49,581
(Losses) earnings from equity investment 0 (57) (128) 381
Earnings from operations 1,370 1,615 5,499 4,882
Non-operating income (expense):        
Gain on business combination 0 0 2,074 0
Interest income 7 7 18 36
Interest expense (206) (57) (550) (600)
Gain (loss) on foreign currency transactions and other 66 (36) 234 (19)
Non-operating (expense) income, net (133) (86) 1,776 (583)
Earnings before income taxes and non-controlling interest 1,237 1,529 7,275 4,299
Income tax provision 132 343 685 832
Net earnings 1,105 1,186 6,590 3,467
Less: Net earnings attributable to noncontrolling interest 32 0 198 0
Net earnings attributable to Century Casinos, Inc. shareholders $ 1,073 $ 1,186 $ 6,392 $ 3,467
Earnings per share attributable to Century Casinos, Inc. shareholders - basic and diluted:        
Basic $ 0.04 $ 0.05 $ 0.26 $ 0.14
Diluted $ 0.04 $ 0.05 $ 0.26 $ 0.14
Weighted average shares outstanding - basic 24,249 24,117 24,334 24,117
Weighted average shares outstanding - diluted 24,413 24,140 24,464 24,318

Condensed Consolidated Statements of Comprehensive Earnings (Loss)
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Condensed Consolidated Statements of Comprehensive Earnings (Loss) (USD $)
In Thousands, unless otherwise specified
 3 Months Ended 9 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Sep. 30, 2013
Sep. 30, 2012
Condensed Consolidated Statements of Comprehensive Earnings (Loss) [Abstract]        
Net earnings $ 1,105 $ 1,186 $ 6,590 $ 3,467
Other comprehensive earnings (loss), net of tax:        
Foreign currency translation adjustments 2,025 2,041 (1,425) 1,751
Other comprehensive earnings (loss) 2,025 2,041 (1,425) 1,751
Comprehensive earnings 3,130 3,227 5,165 5,218
Less: Comprehensive earnings attributable to non-controlling interest 394 0 285 0
Comprehensive earnings attributable to Century Casinos shareholders $ 2,736 $ 3,227 $ 4,880 $ 5,218

Condensed Consolidated Statements Of Shareholders' Equity
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Condensed Consolidated Statements Of Shareholders' Equity (USD $)
In Thousands, except Share data
Common Stock [Member]
Additional Paid-in Capital [Member]
Accumulated Other Comprehensive Income [Member]
Retained Earnings [Member]
Treasury Stock [Member]
Total Century Casinos Shareholders' Equity [Member]
Noncontrolling Interest [Member]
Total
BALANCE at Dec. 31, 2011 $ 240 $ 75,144 $ 3,291 $ 34,147 $ (282) $ 112,540 $ 0 $ 112,540
Shares, BALANCE at Dec. 31, 2011 23,877,362              
Net earnings 0 0 0 3,467 0 3,467 0 3,467
Foreign currency translation adjustments 0 0 1,751 0 0 1,751 0 1,751
Amortization of stock based compensation 0 0 0 0 0   0 0
Exercise of stock options 2 238 0 0 0 240 0 240
Exercise of stock options, shares 240,000              
BALANCE at Sep. 30, 2012 242 75,382 5,042 37,614 (282) 117,998 0 117,998
Shares, BALANCE at Sep. 30, 2012 24,117,362              
BALANCE at Dec. 31, 2012 243 75,388 4,569 38,238 (282) 118,156 0 118,156
Shares, BALANCE at Dec. 31, 2012 24,128,114             24,128,114
Net earnings 0 0 0 6,392 0 6,392 198 6,590
Foreign currency translation adjustments 0 0 (1,512) 0 0 (1,512) 87 (1,425)
Amortization of stock based compensation 0 8 0 0 0 8 0 8
Noncontrolling interest 0 0 0 0 0 0 5,214 5,214
Exercise of stock options 1 (280) 0 0 282 3 0 3
Exercise of stock options, shares 249,647              
BALANCE at Sep. 30, 2013 $ 244 $ 75,116 $ 3,057 $ 44,630 $ 0 $ 123,047 $ 5,499 $ 128,546
Shares, BALANCE at Sep. 30, 2013 24,377,761             24,377,761

Condensed Consolidated Statements of Cash Flows
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Condensed Consolidated Statements of Cash Flows (USD $)
In Thousands, unless otherwise specified
 9 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Cash Flows from Operating Activities:    
Net earnings $ 6,590 $ 3,467
Adjustments to reconcile net earnings to net cash provided by operating activities:    
Depreciation and amortization 4,671 3,535
Gain on business combination (2,074) 0
Loss on disposition of fixed assets 266 22
Amortization of stock-based compensation 11 0
Amortization of deferred financing costs 62 131
Deferred taxes (498) 386
Earnings (losses) from unconsolidated subsidiary 128 (381)
Changes in Operating Assets and Liabilities, net of assets/liabilities acquired in business combination:    
Receivables 488 151
Prepaid expenses and other assets 54 (13)
Accounts payable and accrued liabilities (1,193) (685)
Inventories (38) (25)
Other operating assets (128) (46)
Other operating liabilities (223) 0
Accrued payroll (237) 131
Taxes payable (1,398) (769)
Net cash provided by operating activities 6,481 5,904
Cash Flows from Investing Activities:    
Purchases of property and equipment (2,144) (2,578)
Acquisition of Casinos Poland, net of cash acquired (4,580) 0
Proceeds from disposition of assets 53 6
Funds advanced for projects (500) 0
Net cash used in investing activities (7,171) (2,572)
Cash Flows from Financing Activities:    
Proceeds from borrowings 9,322 3,626
Payment of deferred financing costs 0 (396)
Principal repayments (2,806) (9,124)
Proceeds from exercise of options 0 240
Net cash provided by (used in) financing activities 6,516 (5,654)
Effect of Exchange Rate Changes on Cash (126) 37
Increase (Decrease) in Cash and Cash Equivalents 5,700 (2,285)
Cash and Cash Equivalents at Beginning of Period 24,747 25,192
Cash and Cash Equivalents at End of Period 30,447 22,907
Supplemental Disclosure of Cash Flow Information:    
Interest paid 494 535
Income taxes paid $ 1,662 $ 366

Description Of Business And Basis Of Presentation
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Description Of Business And Basis Of Presentation
 9 Months Ended
Sep. 30, 2013
Description Of Business And Basis Of Presentation [Abstract]  
Description Of Business And Basis Of Presentation

1.DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION

 

Century Casinos, Inc. (“CCI” or the “Company”) is an international casino entertainment company. As of September 30, 2013, the Company owned casino operations in North America, managed cruise ship-based casinos on international waters, and had a management contract to manage the casino in the Radisson Aruba Resort, Casino & Spa. In addition, on April 8, 2013, the Company’s subsidiary Century Casinos Europe GmbH (“CCE”) acquired from LOT Polish Airlines an additional 33.3% ownership interest in Casinos Poland Ltd (“CPL”).  The Company currently owns 66.6% of CPL, and on April 8, 2013 began consolidating CPL as a majority-owned subsidiary for which the Company has a controlling financial interest (Note 3).

 

The accompanying condensed consolidated financial statements and related notes have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) for interim financial reporting, the rules and regulations of the Securities and Exchange Commission which apply to interim financial statements and the instructions to Form 10-Q and Rule 8-03 of Regulation S-X. Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with US GAAP have been condensed or omitted. Certain reclassifications have been made to the prior year financial statements to conform to the current presentation. These reclassifications had no effect on previously reported results of operations or retained earnings. The accompanying condensed consolidated financial statements include the accounts of the Company and its subsidiaries. All intercompany transactions and balances have been eliminated.

 

In the opinion of management, all adjustments considered necessary for fair presentation of financial position, results of operations and cash flows of the Company have been included. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2012. The results of operations for the period ended September 30, 2013 are not necessarily indicative of the operating results for the full year.

 

Presentation of Foreign Currency Amounts

 

The Company’s functional currency is the U.S. dollar (“USD” or “$”).  Foreign subsidiaries with a functional currency other than the U.S. dollar translate assets and liabilities at current exchange rates at the end of the reporting periods, while income and expense accounts are translated at average exchange rates for the respective periods.  The Company and its subsidiaries enter into various transactions made in currencies different from their functional currencies.  These transactions are typically denominated in the Canadian dollar (“CAD”), Euro (“EUR”) and Polish zloty (“PLN”).  Gains and losses resulting from changes in foreign currency exchange rates related to these transactions are included in income from operations as they occur. 

 

The exchange rates to the U.S. dollar used to translate balances at the end of the reported periods are as follows:

 

 

 

 

 

 

 

 

 

 

 

September 30,

 

December 31,

 

September 30,

Ending Rates

 

2013

 

2012

 

2012

Canadian dollar (CAD)

 
1.0285 

 
0.9949 

 
0.9837 

Euros (EUR)

 
0.7389 

 
0.7584 

 
0.7779 

Polish zloty (PLN)

 
3.1214 

 
3.0996 

 
3.1780 

Source: Pacific Exchange Rate Service

 

 

 

 

 

 

 

 

The average exchange rates to the U.S. dollar used to translate balances during each reported period are as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the three months

ended September 30,

 

 

 

For the nine months

ended September 30,

 

 

Average Rates

 

2013

 

2012

 

% Change

 

2013

 

2012

 

% Change

Canadian dollar (CAD)

 
1.0389 

 
0.9951 

 
(4.4%)

 
1.0237 

 
1.0023 

 
(2.1%)

Euros (EUR)

 
0.7549 

 
0.7990 

 
5.5% 

 
0.7594 

 
0.7805 

 
2.7% 

Polish zloty (PLN)

 
3.2054 

 
3.3019 

 
2.9% 

 
3.1884 

 
3.2822 

 
2.9% 

Source: Pacific Exchange Rate Service

 

 

 

 

 

 

 

 

 

 

 

 

 


Description Of Business And Basis Of Presentation (Tables)
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Description Of Business And Basis Of Presentation (Tables)
 9 Months Ended
Sep. 30, 2013
Description Of Business And Basis Of Presentation [Abstract]  
Exchange Rates

 

 

 

 

 

 

 

 

 

September 30,

 

December 31,

 

September 30,

Ending Rates

 

2013

 

2012

 

2012

Canadian dollar (CAD)

 
1.0285 

 
0.9949 

 
0.9837 

Euros (EUR)

 
0.7389 

 
0.7584 

 
0.7779 

Polish zloty (PLN)

 
3.1214 

 
3.0996 

 
3.1780 

Source: Pacific Exchange Rate Service

 

 

 

 

 

 

 

Average Exchange Rates

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the three months

ended September 30,

 

 

 

For the nine months

ended September 30,

 

 

Average Rates

 

2013

 

2012

 

% Change

 

2013

 

2012

 

% Change

Canadian dollar (CAD)

 
1.0389 

 
0.9951 

 
(4.4%)

 
1.0237 

 
1.0023 

 
(2.1%)

Euros (EUR)

 
0.7549 

 
0.7990 

 
5.5% 

 
0.7594 

 
0.7805 

 
2.7% 

Polish zloty (PLN)

 
3.2054 

 
3.3019 

 
2.9% 

 
3.1884 

 
3.2822 

 
2.9% 

Source: Pacific Exchange Rate Service

 

 

 

 

 

 

 

 

 

 

 

 

 


Description Of Business And Basis Of Presentation (Narative) (Details)
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Description Of Business And Basis Of Presentation (Narative) (Details)
 9 Months Ended 0 Months Ended
Sep. 30, 2013
Apr. 08, 2013
Casinos Poland Ltd [Member]
Sep. 30, 2013
Casinos Poland Ltd [Member]
Description Of Business And Basis Of Presentation [Line Items]      
Noncontrolling Interest, Ownership Percentage by Parent 66.60%   66.60%
Additional CPL percentage to acquire - agreement between CCE and LOT Polish Airlines 33.30% 33.30%  

Description Of Business And Basis Of Presentation (Exchange Rates) (Details)
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Description Of Business And Basis Of Presentation (Exchange Rates) (Details)
Sep. 30, 2013
Dec. 31, 2012
Sep. 30, 2012
Canadian Dollar [Member]
      
Description Of Business And Basis Of Presentation [Line Items]      
Exchange rate 1.0285 0.9949 0.9837
Euros [Member]
      
Description Of Business And Basis Of Presentation [Line Items]      
Exchange rate 0.7389 0.7584 0.7779
Polish Zloty [Member]
      
Description Of Business And Basis Of Presentation [Line Items]      
Exchange rate 3.1214 3.0996 3.1780

Description Of Business And Basis Of Presentation (Average Exchange Rates) (Details)
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Description Of Business And Basis Of Presentation (Average Exchange Rates) (Details)
 3 Months Ended 9 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Sep. 30, 2013
Sep. 30, 2012
Canadian Dollar [Member]
        
Description Of Business And Basis Of Presentation [Line Items]        
Average Rates 1.0389 0.9951 1.0237 1.0023
Average Rates % Change (4.40%)   (2.10%)  
Euros [Member]
        
Description Of Business And Basis Of Presentation [Line Items]        
Average Rates 0.7549 0.7990 0.7594 0.7805
Average Rates % Change 5.50%   2.70%  
Polish Zloty [Member]
        
Description Of Business And Basis Of Presentation [Line Items]        
Average Rates 3.2054 3.3019 3.1884 3.2822
Average Rates % Change 2.90%   2.90%  

Recently Issued Accounting Pronouncement
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Recently Issued Accounting Pronouncement
 9 Months Ended
Sep. 30, 2013
Recently Issued Accounting Pronouncement [Abstract]  
Recently Issued Accounting Pronouncement

2. RECENTLY ISSUED ACCOUNTING PRONOUNCEMENT

 

In July 2013, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2013-11, Income Taxes. This update applies to the presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. The Company is currently assessing the impact of this FASB update and is considering applying the update for the year ended December 31, 2013.

 


Acquisition
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Acquisition
 9 Months Ended
Sep. 30, 2013
Acquisition [Abstract]  
Acquisition

3.ACQUISITION

 

Casinos Poland

On April 8, 2013, the Company’s subsidiary CCE acquired from LOT Polish Airlines an additional 33.3% ownership interest in CPL for cash consideration of $6.8 million. The acquisition of CPL furthers the Company’s mission to grow and develop mid-size casinos and increase company value. CPL is the owner and operator of nine casinos throughout Poland with a total of 354 slot machines and 69 gaming tables.  The Company paid for the purchase through borrowings under its credit agreement with the Bank of Montreal (“BMO Credit Agreement”) (Note 6). There was no contingent consideration for the transaction.

 

Prior to April 8, 2013, the Company owned 33.3% of CPL and accounted for the ownership interest as an equity investment. The Company currently owns a 66.6%  interest in CPL and on April 8, 2013 began consolidating CPL financial information as a majority-owned subsidiary for which the Company has a controlling financial interest. As a result, the Company changed its accounting for CPL from an equity method investment to a consolidated subsidiary. CPL contributed a total of $22.0 million in net operating revenue and $0.4 million in earnings from the date of acquisition through September 30, 2013. Polish Airports Company (“Polish Airports”) owns the remaining 33.3% ownership interest in CPL and the Company accounts for and reports the Polish Airports ownership interest as a non-controlling financial interest.

 

Upon consolidation, the fair value of the Company’s initial 33.3% equity investment was determined to be $5.2 million as of the acquisition date. The $5.2 million was greater than the carrying value of the equity investment, resulting in a gain of $2.1 million, net of foreign currency translation. The Company recorded the gain in “Gain on business combination” in the second quarter 2013 consolidated statement of earnings. The fair value was determined based on the controlling interest obtained through the additional 33.3% interest acquired and on the Company’s internal valuation of CPL using the following methods, which the Company believes provide the most appropriate indicators of fair value: 

·

relief from royalty method; 

·

replacement cost method; 

·

direct market value approach and direct and indirect cost approach; and

·

sales comparison approach, income approach and cost approach.

 

 

 

 

Amounts in thousands (in USD)

Total

Investment fair value - April 8, 2013
$
5,214 

Investment book value at April 8, 2013
(3,027)

Gain on business combination including foreign currency translation
2,187 

Less: foreign currency translation
(113)

Gain on business combination
$
2,074 

 

 

 

Details of the purchase in the table below are based on estimated fair values of assets and liabilities as of April 8, 2013, the date of acquisition. Allocation of the purchase consideration is preliminary and subject to adjustment as the Company obtains additional information during the measurement period (a period up to one year from the date of acquisition) that could change the fair value allocation as of the acquisition date.

 

 

 

Acquisition Date

April 8, 2013

 

 

Amounts in thousands

 

Purchase consideration:

 

Cash paid
$
6,780 

Acquisition-date fair value of the previously held equity interest
5,214 

Total purchase consideration, including fair value of previously held equity interest
$
11,994 

The assets and liabilities recognized as a result of the acquisition are as follows:

 

 

 

 

Cash
$
2,200 

Accounts receivable
638 

Deferred tax assets - current

201 

Prepaid expenses
222 

Inventory
155 

Other current assets
3 

Property and equipment
17,922 

Licenses
2,533 

Trademark
1,924 

Deferred tax assets, non-current
1,034 

Other long-term assets
448 

Current portion of long-term debt
(4,033)

Accounts payable and accrued liabilities
(2,236)

Contingent liability
(5,500)

Accrued payroll
(1,272)

Taxes payable
(2,073)

Long-term debt, less current portion
(1,921)

Deferred income taxes, non-current
(1,258)

Net identifiable assets acquired

8,987 

 

 

Less: Non-controlling interest
(5,214)

Add: Goodwill
8,221 

Net assets acquired
$
11,994 

 

The Company accounted for the transaction as a step acquisition, and accordingly, CPL's assets of $27.3 million (including $2.2 million in cash) and liabilities of $18.3 million were included in the Company's consolidated balance sheet at April 8, 2013. The goodwill is attributable to the expected synergies and economies of scale of incorporating CPL with the Company.  The acquisition also combines the specialties of the Company’s management expertise in the gaming industry with the brand awareness of Casinos Poland. Goodwill is not a tax deductible item for the Company.    

 

 

Non-controlling interest

The Company recognized the Polish Airports non-controlling interest in CPL at its fair value as of the acquisition. The Company estimated the fair value of the non-controlling interest by determining the value of a controlling interest in the entity. Having control over a company gives additional rights to the holder of the controlling interest as opposed to the holder of the non-controlling interest. The Company then applied a 22.5% discount for lack of control to determine the value of the non-controlling interest.

 

The discount for lack of control was estimated based on an analysis of the transactions in the casinos and gaming industry in the past five years. The resulting value of the non-controlling interest was PLN 16.5 million ($5.2 million).

 

Purchase Consideration – cash outflow

 

 

 

 

Outflow of cash to acquire subsidiary, net of cash acquired

 

Cash consideration
$
6,780 

Less: balances acquired
(2,200)

Outflow of cash - investing activities
$
4,580 

 

Acquisition-related costs

The Company incurred acquisition costs of approximately $0.2 million during the second and third quarters of 2013. These costs include legal, accounting and valuation fees and have been recorded as general and administrative expenses.

 

Contingent liability

 

In March 2011, the Polish Internal Revenue Service (“Polish IRS”) conducted a tax audit of CPL to review the calculation and payment of personal income tax by CPL employees covering January 2011. Based on this audit, the Polish IRS concluded that CPL should calculate, collect and remit to the Polish IRS personal income tax on tips received by CPL employees from casino customers. After proceedings between CPL and the Polish IRS, the Director of the Tax Chamber in Warsaw confirmed the opinion of the Polish IRS on November 19, 2012, and on November 30, 2012 CPL paid PLN 125,269 (less than $0.1 million) to the Polish IRS resulting from the decision. CPL appealed the decision to the Regional Administrative Court in Warsaw on December 21, 2012. On September 16, 2013, the Regional Administrative Court in Warsaw denied CPL’s appeal. CPL plans to appeal the decision to the Supreme Administration Court. If the Supreme Administration Court ultimately decides against CPL, the Company believes that the Polish IRS may seek to assess a liability for all periods from January 2007 to present. A final decision is not expected in 2013. Similar litigation involving competitors concerning the treatment of tips is ongoing.

 

Management has determined that it is reasonably possible that the litigation will be unfavorable for CPL. Accounting guidance requires pre-acquisition contingent liabilities to be recognized at fair value at the acquisition date if the liability can be determined. Based on management’s assessment using a probability weighted cash flow analysis, the fair value of the potential liability for all open periods is estimated at PLN 18.3 million ($5.9 million). As a result, PLN 18.3 million ($5.9 million) has been recorded as a contingent liability as of September 30, 2013 on the condensed consolidated balance sheets.

 

Pro Forma Results

The following table provides unaudited pro forma information of the Company as if the acquisition of CPL had occurred at the beginning of the periods presented. This pro forma information is not necessarily indicative of the combined results of operations that actually would have been realized had the acquisition been consummated during the periods for which the pro forma information is presented, or of future results.

 

 

 

 

 

 

 

 

 

 

 

 

 

For the three months

ended September 30,

 

For the nine months

ended September 30,

 

 

2013

 

2012

 

2013

 

2012

Net operating revenue

 
$
28,826 

 
$
28,676 

 
$
80,595 

 
$
85,392 

Net earnings

 
$
974 

 
$
910 

 
$
6,245 

 
$
3,459 

Basic and diluted earnings per share

 
$
0.04 

 
$
0.04 

 
$
0.25 

 
$
0.14 

 


Acquisition (Tables)
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Acquisition (Tables)
 9 Months Ended
Sep. 30, 2013
Acquisition [Abstract]  
Gain On Business Combination

 

 

Amounts in thousands (in USD)

Total

Investment fair value - April 8, 2013
$
5,214 

Investment book value at April 8, 2013
(3,027)

Gain on business combination including foreign currency translation
2,187 

Less: foreign currency translation
(113)

Gain on business combination
$
2,074 

 

Total Purchase Consideration

 

 

Acquisition Date

April 8, 2013

 

 

Amounts in thousands

 

Purchase consideration:

 

Cash paid
$
6,780 

Acquisition-date fair value of the previously held equity interest
5,214 

Total purchase consideration, including fair value of previously held equity interest
$
11,994 

 

Assets And Liabilities Recognized As A Result Of The Acquisition

 

 

Cash
$
2,200 

Accounts receivable
638 

Deferred tax assets - current

201 

Prepaid expenses
222 

Inventory
155 

Other current assets
3 

Property and equipment
17,922 

Licenses
2,533 

Trademark
1,924 

Deferred tax assets, non-current
1,034 

Other long-term assets
448 

Current portion of long-term debt
(4,033)

Accounts payable and accrued liabilities
(2,236)

Contingent liability
(5,500)

Accrued payroll
(1,272)

Taxes payable
(2,073)

Long-term debt, less current portion
(1,921)

Deferred income taxes, non-current
(1,258)

Net identifiable assets acquired

8,987 

 

 

Less: Non-controlling interest
(5,214)

Add: Goodwill
8,221 

Net assets acquired
$
11,994 

 

Purchase Consideration - Cash Outflow

 

 

Outflow of cash to acquire subsidiary, net of cash acquired

 

Cash consideration
$
6,780 

Less: balances acquired
(2,200)

Outflow of cash - investing activities
$
4,580 

 

Pro Forma Results

 

 

 

 

 

 

 

 

 

 

 

For the three months

ended September 30,

 

For the nine months

ended September 30,

 

 

2013

 

2012

 

2013

 

2012

Net operating revenue

 
$
28,826 

 
$
28,676 

 
$
80,595 

 
$
85,392 

Net earnings

 
$
974 

 
$
910 

 
$
6,245 

 
$
3,459 

Basic and diluted earnings per share

 
$
0.04 

 
$
0.04 

 
$
0.25 

 
$
0.14 

 


Acquisition (Narrative) (Details)
v0.0.0.0
Acquisition (Narrative) (Details)
 0 Months Ended 3 Months Ended 9 Months Ended 0 Months Ended 9 Months Ended 0 Months Ended 3 Months Ended 9 Months Ended
Apr. 08, 2013
USD ($)
Sep. 30, 2013
USD ($)
Sep. 30, 2012
USD ($)
Sep. 30, 2013
USD ($)
Sep. 30, 2012
USD ($)
Apr. 07, 2013
USD ($)
Dec. 31, 2012
USD ($)
Apr. 08, 2013
Polish Airports [Member]
USD ($)
Apr. 08, 2013
Polish Airports [Member]
PLN
Sep. 30, 2013
Polish Airports [Member]
Apr. 08, 2013
Casinos Poland Ltd [Member]
USD ($)
Sep. 30, 2013
Casinos Poland Ltd [Member]
USD ($)
Sep. 30, 2013
Casinos Poland Ltd [Member]
USD ($)
item
Sep. 30, 2013
Casinos Poland Ltd [Member]
PLN
item
Apr. 07, 2013
Casinos Poland Ltd [Member]
Additional ownership acquired       33.30%             33.30%        
Cash paid           $ 6,780,000         $ 6,800,000        
Number of casinos                         9 9  
Number of slot machines                         354 354  
Number of gaming tables                         69 69  
Ownership percentage prior to acquisition                             33.30%
Ownership interest in CPL   66.60%   66.60%           33.30%     66.60% 66.60%  
Net operating revenue contributed by CPL                       22,000,000      
Earnings contributed by CPL                       400,000      
Remaining ownership interest in CPL   0   0     3,346,000                
Fair value of initial equity investment 5,214,000           (3,027,000)       5,200,000        
Gain on business combination 2,074,000 0 0 2,074,000 0               2,100,000    
Assets carried in balance sheet                     27,300,000        
Cash included in assets carried in balance sheet                     2,200,000        
Liabilities carried in balance sheet                     18,300,000        
Percentage of discount or reverse control premium to determine the value of the non-controlling interest               22.50% 22.50%            
Number of years of transactions analyzed                   5 years          
Resulting value of noncontrolling interest               5,200,000 16,500,000            
Acquisition costs       200,000                      
Paid to the Polish IRS resulting from the decision                         100,000 125,269  
Contingent liability   $ 5,868,000   $ 5,868,000     $ 0             18,300,000  

Acquisition (Gain On Business Combination) (Details)
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Acquisition (Gain On Business Combination) (Details) (USD $)
In Thousands, unless otherwise specified
 0 Months Ended 3 Months Ended 9 Months Ended
Apr. 08, 2013
Sep. 30, 2013
Sep. 30, 2012
Sep. 30, 2013
Sep. 30, 2012
Dec. 31, 2012
Acquisition [Abstract]            
Investment fair value $ 5,214         $ (3,027)
Gain on business combination including foreign currency translation 2,187          
Less: foreign currency translation (113)          
Gain on business combination $ 2,074 $ 0 $ 0 $ 2,074 $ 0  

Acquisition (Purchase Consideration) (Details)
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Acquisition (Purchase Consideration) (Details) (USD $)
In Thousands, unless otherwise specified
Apr. 07, 2013
Acquisition [Abstract]  
Cash paid $ 6,780
Acquisition-date fair value of the previously held equity interest 5,214
Total purchase consideration $ 11,994

Acquisition (Assets And Liabilities Recognized As A Result Of The Acquisition) (Details)
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Acquisition (Assets And Liabilities Recognized As A Result Of The Acquisition) (Details) (USD $)
In Thousands, unless otherwise specified
Apr. 07, 2013
Business Acquisition [Line Items]  
Assets recognized $ 2,200
Net identifiable assets acquired 8,987
Less: Non-controlling interest (5,214)
Add: Goodwill 8,221
Net assets acquired 11,994
Accounts Receivable [Member]
  
Business Acquisition [Line Items]  
Assets recognized 638
Deferred Tax Assets Current [Member]
  
Business Acquisition [Line Items]  
Assets recognized 201
Prepaid Expenses [Member]
  
Business Acquisition [Line Items]  
Assets recognized 222
Inventory [Member]
  
Business Acquisition [Line Items]  
Assets recognized 155
Other Current Assets [Member]
  
Business Acquisition [Line Items]  
Assets recognized 3
Property And Equipment [Member]
  
Business Acquisition [Line Items]  
Assets recognized 17,922
Licenses [Member]
  
Business Acquisition [Line Items]  
Assets recognized 2,533
Trademark [Member]
  
Business Acquisition [Line Items]  
Assets recognized 1,924
Deferred Tax Assets, Noncurrent [Member]
  
Business Acquisition [Line Items]  
Assets recognized 1,034
Other Long-Term Assets [Member]
  
Business Acquisition [Line Items]  
Assets recognized 448
Current Portion Of Long-Term Debt [Member]
  
Business Acquisition [Line Items]  
Liabilities recognized (4,033)
Accounts Payable And Accrued Liabilities [Member]
  
Business Acquisition [Line Items]  
Liabilities recognized (2,236)
Contingent Liability [Member]
  
Business Acquisition [Line Items]  
Liabilities recognized (5,500)
Accrued Payroll [Member]
  
Business Acquisition [Line Items]  
Liabilities recognized (1,272)
Taxes Payable [Member]
  
Business Acquisition [Line Items]  
Liabilities recognized (2,073)
Long-Term Debt, Less Current Portion [Member]
  
Business Acquisition [Line Items]  
Liabilities recognized (1,921)
Deferred Income Taxes, Noncurrent [Member]
  
Business Acquisition [Line Items]  
Liabilities recognized $ (1,258)

Acquisition (Purchase Consideration - Cash Outflow) (Details)
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Acquisition (Purchase Consideration - Cash Outflow) (Details) (USD $)
In Thousands, unless otherwise specified
 0 Months Ended 9 Months Ended
Apr. 07, 2013
Sep. 30, 2013
Sep. 30, 2012
Acquisition [Abstract]      
Cash consideration $ 6,780    
Less: cash balances acquired (2,200)    
Outflow of cash - investing activities $ 4,580 $ 4,580 $ 0

Acquisition (Pro Forma Information) (Details)
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Acquisition (Pro Forma Information) (Details) (USD $)
In Thousands, except Per Share data, unless otherwise specified
 3 Months Ended 9 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Sep. 30, 2013
Sep. 30, 2012
Acquisition [Abstract]        
Net operating revenue $ 28,826 $ 28,676 $ 80,595 $ 85,392
Net earnings $ 974 $ 910 $ 6,245 $ 3,459
Basic and diluted earnings per share $ 0.04 $ 0.04 $ 0.25 $ 0.14

Goodwill And Intangible Assets
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Goodwill And Intangible Assets
 9 Months Ended
Sep. 30, 2013
Goodwill And Intangible Assets [Abstract]  
Goodwill And Intangible Assets

4.GOODWILL AND INTANGIBLE ASSETS

 

Goodwill

We test goodwill for impairment as of October 1 each year, or more frequently as circumstances indicate it is necessary.  Testing compares the estimated fair values of our reporting units to the reporting units’ carrying values.  Our reporting units with goodwill balances as of September 30, 2013 include our Edmonton casino property and our CPL casino operations.  We consider a variety of factors when estimating the fair value of our reporting units, including estimates about the future operating results of each reporting unit, various market analyses, and recent sales of comparable businesses, if such information is available to us.  The Company makes a variety of estimates and judgments about the relevance and comparability of these factors to the reporting units in estimating the fair value of our reporting units.

Changes in the carrying amount of goodwill related to the Company’s Edmonton property and CPL for the nine months ended September 30, 2013 are as follows:

 

 

 

 

 

Amounts in thousands

Edmonton

Casinos Poland

Total

Balance – January 1, 2013
$
4,941 
$
0 
$
4,941 

Purchase of Casinos Poland
0 
8,221 
8,221 

Effect of foreign currency translation
(161)
132 
(29)

Balance – September 30, 2013
$
4,780 
$
8,353 
$
13,133 

 

Goodwill related to the purchase of additional ownership in CPL was $8.4 million as of September 30, 2013 (Note 3).

 

Intangible Assets

 

Trademarks

The Company currently owns two trademarks, the Century Casinos trademark and the Casinos Poland trademark. As of April 8, 2013, the Company began reporting the Casinos Poland trademark as an intangible asset on the Company’s condensed consolidated balance sheets. As of September 30, 2013, the carrying amounts of the trademarks were as follows:

 

 

 

 

Amounts in thousands

 

Century Casinos

$
104 

Casinos Poland
1,955 

Total

$
2,059 

 

The Company has determined both trademarks have indefinite useful lives and therefore the trademarks are not amortized.

 

Casino Licenses

Casinos Poland currently has nine casino licenses each with an original term of six years. As of April 8, 2013, the Company began reporting the Polish casino licenses as intangible assets on the Company’s condensed consolidated balance sheets. Changes in the carrying amount of the Casinos Poland licenses from the date of acquisition to September 30, 2013 are as follows:

 

 

 

 

Amounts in thousands

 

Balance – April 8, 2013
$
2,533 

Amortization

(255)

Effect of foreign currency translation
31 

Balance – September 30, 2013
$
2,309 

 

As of September 30, 2013, estimated amortization expense for the CPL casino licenses over the next five years is as follows:

 

 

 

 

 

 

Amounts in thousands

 

2013
138 

2014
550 

2015
550 

2016
513 

2017
419 

 

Such estimates do not reflect the impact of future foreign exchange rate changes or the renewal of the licenses. The weighted average period before the next renewal is 4.2 years.


Goodwill And Intangible Assets (Tables)
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Goodwill And Intangible Assets (Tables)
 9 Months Ended
Sep. 30, 2013
Goodwill And Intangible Assets [Abstract]  
Changes In The Carrying Amount Of Goodwill

 

 

 

 

Amounts in thousands

Edmonton

Casinos Poland

Total

Balance – January 1, 2013
$
4,941 
$
0 
$
4,941 

Purchase of Casinos Poland
0 
8,221 
8,221 

Effect of foreign currency translation
(161)
132 
(29)

Balance – September 30, 2013
$
4,780 
$
8,353 
$
13,133 

 

Trademarks

 

 

Amounts in thousands

 

Century Casinos

$
104 

Casinos Poland
1,955 

Total

$
2,059 

 

Intangible Asset

 

 

Amounts in thousands

 

Balance – April 8, 2013
$
2,533 

Amortization

(255)

Effect of foreign currency translation
31 

Balance – September 30, 2013
$
2,309 

 

Estimated Amortization Expense

 

 

 

 

Amounts in thousands

 

2013
138 

2014
550 

2015
550 

2016
513 

2017
419 

 


Goodwill And Intangible Assets (Narrative) (Details)
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Goodwill And Intangible Assets (Narrative) (Details) (Casinos Poland Ltd [Member], USD $)
In Millions, unless otherwise specified
 9 Months Ended
Sep. 30, 2013
item
Casinos Poland Ltd [Member]
  
Goodwill related to purchase of additional ownership in CPL $ 8.4
Number of casino licenses 9
Term of casino licenses, years 6 years
Weighted-average period before the next renewal of casino licenses 4 years 2 months 12 days

Goodwill And Intangible Assets (Changes In The Carrying Amount Of Goodwill) (Details)
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Goodwill And Intangible Assets (Changes In The Carrying Amount Of Goodwill) (Details) (USD $)
In Thousands, unless otherwise specified
 9 Months Ended
Sep. 30, 2013
Balance $ 4,941
Purchase of Casinos Poland 8,221
Effect of foreign currency translation (29)
Balance 13,133
Edmonton [Member]
  
Balance 4,941
Purchase of Casinos Poland 0
Effect of foreign currency translation (161)
Balance 4,780
Casinos Poland Ltd [Member]
  
Balance 0
Purchase of Casinos Poland 8,221
Effect of foreign currency translation 132
Balance $ 8,353

Goodwill And Intangible Assets (Trademarks) (Details)
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Goodwill And Intangible Assets (Trademarks) (Details) (USD $)
In Thousands, unless otherwise specified
Sep. 30, 2013
Dec. 31, 2012
Total trademarks $ 2,059 $ 104
Century Casinos [Member]
    
Total trademarks 104  
Casinos Poland Ltd [Member]
    
Total trademarks $ 1,955  

Goodwill And Intangible Assets (Intangible Asset) (Details)
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Goodwill And Intangible Assets (Intangible Asset) (Details) (USD $)
In Thousands, unless otherwise specified
 6 Months Ended
Sep. 30, 2013
Dec. 31, 2012
Sep. 30, 2013
Casinos Poland Ltd [Member]
Balance $ 2,309 $ 0 $ 2,533
Amortization     (255)
Effect of foreign currency translation adjustments     31
Balance $ 2,309 $ 0 $ 2,309

Goodwill And Intangible Assets (Estimated Amortization Expense) (Details)
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Goodwill And Intangible Assets (Estimated Amortization Expense) (Details) (USD $)
In Thousands, unless otherwise specified
Sep. 30, 2013
Goodwill And Intangible Assets [Abstract]  
2013 $ 138
2014 550
2015 550
2016 513
2017 $ 419

Promotional Allowances
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Promotional Allowances
 9 Months Ended
Sep. 30, 2013
Promotional Allowances [Abstract]  
Promotional Allowances

5.PROMOTIONAL ALLOWANCES

 

Hotel accommodations, bowling and food and beverage furnished without charge to customers are included in gross revenue at a value which approximates retail and are then deducted as complimentary services to arrive at net operating revenue.

 

The Company issues coupons for the purpose of generating future revenue. The cost of the coupons redeemed is applied against the revenue generated on the day of the redemption. In addition, members of the Company’s casinos’ player clubs earn points based on, among other things, their volume of play at the Company’s casinos. Players can accumulate points over time that they may redeem at their discretion under the terms of the program. Points can be redeemed for cash and/or various amenities at the casino, such as meals, hotel stays and gift shop items. The cash value of the points is offset against the revenue in the period in which the points were earned. The value of unused or unredeemed points is included in accounts payable and accrued liabilities on the Company’s condensed consolidated balance sheets. The expiration of unused points results in a reduction of the liability. The outstanding balance of this liability was $0.9 million as of September 30, 2013 and $1.0 million as of December 31, 2012.

 

Promotional allowances presented in the condensed consolidated statements of earnings include the following:

 

 

 

 

 

 

 

 

 

 

 

 

 

For the three months ended September 30,

 

For the nine months ended September 30,

 

 

2013

 

2012

 

2013

 

2012

Amounts in thousands

 

 

 

 

 

 

 

 

Hotel, bowling, food & beverage

 
$
980 

 
$
1,020 

 
$
2,776 

 
$
2,918 

Coupons

 
522 

 
602 

 
1,536 

 
1,543 

Player points

 
494 

 
663 

 
1,483 

 
1,934 

Total promotional allowances

 
$
1,996 

 
$
2,285 

 
$
5,795 

 
$
6,395 

 


Promotional Allowances (Tables)
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Promotional Allowances (Tables)
 9 Months Ended
Sep. 30, 2013
Promotional Allowances [Abstract]  
Schedule Of Promotional Allowances

 

 

 

 

 

 

 

 

 

 

 

For the three months ended September 30,

 

For the nine months ended September 30,

 

 

2013

 

2012

 

2013

 

2012

Amounts in thousands

 

 

 

 

 

 

 

 

Hotel, bowling, food & beverage

 
$
980 

 
$
1,020 

 
$
2,776 

 
$
2,918 

Coupons

 
522 

 
602 

 
1,536 

 
1,543 

Player points

 
494 

 
663 

 
1,483 

 
1,934 

Total promotional allowances

 
$
1,996 

 
$
2,285 

 
$
5,795 

 
$
6,395 

 


Promotional Allowances (Details)
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Promotional Allowances (Details) (USD $)
 3 Months Ended 9 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Sep. 30, 2013
Sep. 30, 2012
Dec. 31, 2012
Promotional Allowances [Line Items]          
Total Promotional Allowances $ 1,996,000 $ 2,285,000 $ 5,795,000 $ 6,395,000  
Outstanding balance of promotional balance liability 900,000   900,000   1,000,000
Hotel, Bowling, Food and Beverage [Member]
          
Promotional Allowances [Line Items]          
Total Promotional Allowances 980,000 1,020,000 2,776,000 2,918,000  
Coupons [Member]
          
Promotional Allowances [Line Items]          
Total Promotional Allowances 522,000 602,000 1,536,000 1,543,000  
Player Points [Member]
          
Promotional Allowances [Line Items]          
Total Promotional Allowances $ 494,000 $ 663,000 $ 1,483,000 $ 1,934,000  

Long-Term Debt
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Long-Term Debt
 9 Months Ended
Sep. 30, 2013
Debt Disclosure [Abstract]  
Long-Term Debt

6.  LONG-TERM DEBT

 

Long-term debt as of September 30, 2013 and December 31, 2012 consisted of the following:

 

 

 

 

 

 

September 30,

 

December 31,

Amounts in thousands

2013

 

2012

Credit agreement – Bank of Montreal
$
9,862 

 
$
3,564 

Credit agreement - Casinos Poland
2,667 

 

 -

Credit facilities - Casinos Poland
3,262 

 

 -

Capital leases - Casinos Poland
226 

 

 -

Total long-term debt
16,017 

 
3,564 

Less current portion

(6,234)

 
(372)

Long-term portion
$
9,783 

 
$
3,192 

 

As of September 30, 2013, scheduled maturities related to long-term debt are as follows:

 

 

 

 

 

 

 

 

Amounts in thousands

Bank of Montreal

 

Casinos Poland

2013
$
267 

 
$
3,832 

2014
1,070 

 
1,539 

2015
1,070 

 
765 

2016
1,070 

 
19 

2017 and thereafter
6,385 

 
0 

Total
$
9,862 

 
$
6,155 

 

The consolidated weighted average interest rate on all Company debt was 4.4% for the nine months ended September 30, 2013.

 

Credit Agreement – Bank of Montreal

On May 23, 2012, the Company, through its Canadian subsidiaries, entered into a CAD 28.0 million ($27.5 million) credit agreement with the Bank of Montreal (the “BMO Credit Agreement”). On May 23, 2012, the Company borrowed $3.7 million from the BMO Credit Agreement to repay the Company’s mortgage loan related to the Edmonton property (the “Edmonton Mortgage”). The Company can also use the proceeds to pursue the development or acquisition of new gaming opportunities and for general corporate purposes. The BMO Credit Agreement has a term of five years and is guaranteed by the Company. On February 21, 2013, the Company borrowed an additional $7.3 million to pay for the additional 33.3% investment in CPL (Note 3).  The shares of the Company’s subsidiaries in Edmonton and Calgary are pledged as collateral for the BMO Credit Agreement. The BMO Credit Agreement contains a number of financial covenants applicable to the Canadian subsidiaries, in addition to covenants restricting their incurrence of additional debt. The Company was in compliance with all covenants of the BMO Credit Agreement as of September 30, 2013. As of September 30, 2013, the amount outstanding was $9.9 million and the Company had approximately $14.9 million available under the BMO Credit Agreement. The $11.0 million the Company has borrowed cannot be re-borrowed once it is repaid. 

 

Amortization expenses relating to deferred financing charges were less than $0.1 million for both the three months ended September 30, 2013 and the three months ended September 30, 2012 and $0.1 million for both the nine months ended September 30, 2013 and the nine months ended September 30, 2012. These costs are included in interest expense in the condensed consolidated statements of earnings.

 

The Company pays a floating interest rate on its borrowings under the BMO Credit Agreement. As of September 30, 2013, the interest rate under the BMO Credit Agreement was 4.0%.

 

Casinos Poland

Through the CPL acquisition, the Company acquired an additional $6.2 million in debt as of September 30, 2013. The debt includes two bank loans, two bank lines of credit and nine capital lease agreements. 

 

The first bank loan is with Bank Pocztowy. CPL entered into the five-year term loan in 2010 at an interest rate of Warsaw Interbank Offered Rate (“WIBOR”) plus 3.0%. Proceeds from the loan were used to refinance the loan provided to CPL by ING Bank Slaski and finance current operations. As of September 30, 2013, the amount outstanding was $1.6 million, and CPL had no further borrowing availability under the loan. The loan matures in November 2015. The second bank loan is with BRE Bank. CPL entered into the 2-year term loan in 2012 at an interest rate of WIBOR plus 2.5%. Proceeds from the loan were used to finance current operations. As of September 30, 2013, the amount outstanding was $1.1 million, and CPL had no further borrowing availability under the loan. The BRE Bank loan matures in September 2014. The BRE Bank loan agreement contains a number of financial covenants applicable to CPL, in addition to covenants restricting incurrence of additional debt. CPL complied with all covenants of the BRE Bank agreement as of September 30, 2013.

 

The two bank lines of credit are short-term facilities. CPL used both lines of credit to finance current operations. The first line of credit is with BRE Bank, which is a short-term revolving credit facility entered into in 2004 and renewed on a yearly basis. The last renewal approved in February 2013 at an interest rate of WIBOR plus 2.0%. As of September 30, 2013, the amount outstanding was $0.6 million and CPL had no availability under the agreement. The BRE Bank facility contains a number of financial covenants applicable to CPL, in addition to covenants restricting incurrence of additional debt. CPL complied with all covenants of the BRE Bank line of credit as of September 30, 2013. The second line of credit is with BPH Bank, which also is a short-term revolving credit facility that was entered into in 2012 at an interest rate of WIBOR plus 1.95%. As of September 30, 2013, the amount outstanding was $2.7 million and CPL has approximately $0.2 million available under the agreement. The BPH Bank facility contains a number of financial covenants applicable to CPL, in addition to covenants restricting incurrence of additional debt. CPL complied with all covenants of the BPH Bank line of credit as of September 30, 2013.

 

CPL’s remaining debt consists of nine capital lease agreements. The lease agreements are for various vehicles and television systems that are replaced on an ongoing basis. As of September 30, 2013, the amount outstanding was $0.2 million.  


Long-Term Debt (Narrative) (Details)
v0.0.0.0
Long-Term Debt (Narrative) (Details)
 9 Months Ended 0 Months Ended 9 Months Ended 3 Months Ended 9 Months Ended
Sep. 30, 2013
USD ($)
item
loan
Sep. 30, 2012
USD ($)
Apr. 08, 2013
Casinos Poland Ltd [Member]
Feb. 21, 2013
BMO Credit Agreement [Member]
USD ($)
May 23, 2012
BMO Credit Agreement [Member]
USD ($)
Sep. 30, 2013
BMO Credit Agreement [Member]
USD ($)
May 23, 2012
BMO Credit Agreement [Member]
CAD ($)
Sep. 30, 2013
Loan With Bank Pocztowy [Member]
USD ($)
Sep. 30, 2013
Loan With BRE Bank [Member]
USD ($)
Sep. 30, 2013
Line Of Credit With BRE Bank [Member]
USD ($)
Sep. 30, 2013
Line Of Credit With BPH Bank [Member]
USD ($)
Sep. 30, 2013
Amortization of Deferred Financing Charges [Member]
USD ($)
Sep. 30, 2012
Amortization of Deferred Financing Charges [Member]
USD ($)
Sep. 30, 2013
Amortization of Deferred Financing Charges [Member]
USD ($)
Sep. 30, 2012
Amortization of Deferred Financing Charges [Member]
USD ($)
Debt Instrument [Line Items]                              
Weighted average interest rate on borrowings 4.40%                            
Maximum borrowing capacity         $ 27,500,000   $ 28,000,000                
Term of credit agreement         5 years                    
Line of credit facility amount drawn to repay Edmonton mortgage         3,700,000                    
Line of credit facility amount drawn to pay for additional equity investment       7,300,000                      
Additional ownership acquired 33.30%   33.30% 33.30%                      
Line of credit facility amount outstanding           9,900,000       600,000 2,700,000        
Line of credit facility amount available for borrowing           14,900,000         200,000        
Line of credit facility amount that cannot be reborrowed once repaid           11,000,000                  
Amortization of deferred financing costs 62,000 131,000                   100,000 100,000 100,000 100,000
Interest rate           4.00%                  
Additional debt acquired during period 6,200,000                            
Number of bank loans 2                            
Number of bank lines of credit 2                            
Number of capital lease agreements 9                            
Debt instrument, term               5 years 2 years            
Interest rate percentage points above WIBOR               3.00% 2.50% 2.00% 1.95%        
Amount outstanding               1,600,000 1,100,000            
Capital lease agreements $ 200,000                            

Long-Term Debt (Schedule of Long-term Debt) (Details)
v0.0.0.0
Long-Term Debt (Schedule of Long-term Debt) (Details) (USD $)
In Thousands, unless otherwise specified
Sep. 30, 2013
Dec. 31, 2012
Debt Instrument [Line Items]    
Total long-term debt $ 16,017 $ 3,564
Less: current portion (6,234) (372)
Long-term portion 9,783 3,192
BMO Credit Agreement [Member]
    
Debt Instrument [Line Items]    
Total long-term debt 9,862 3,564
Credit Agreements - Casinos Poland [Member]
    
Debt Instrument [Line Items]    
Total long-term debt 2,667  
Credit Facilities - Casinos Poland [Member]
    
Debt Instrument [Line Items]    
Total long-term debt 3,262  
Capital Leases - Casinos Poland [Member]
    
Debt Instrument [Line Items]    
Total long-term debt $ 226  

Long-Term Debt (Schedule of Maturities of Long-term Debt) (Details)
v0.0.0.0
Long-Term Debt (Schedule of Maturities of Long-term Debt) (Details) (USD $)
In Thousands, unless otherwise specified
Sep. 30, 2013
Dec. 31, 2012
Total long-term debt $ 16,017 $ 3,564
Edmonton [Member]
    
2013 267  
2014 1,070  
2015 1,070  
2016 1,070  
2017 and thereafter 6,385  
Total long-term debt 9,862  
Casinos Poland Ltd [Member]
    
2013 3,832  
2014 1,539  
2015 765  
2016 19  
2017 and thereafter 0  
Total long-term debt $ 6,155  

Financing Arrangements For Project Investments
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Financing Arrangements For Project Investments
 9 Months Ended
Sep. 30, 2013
Financing Arrangements For Project Investments [Abstract]  
Financing Arrangements For Project Investments

7.  FINANCING ARRANGEMENTS FOR PROJECT INVESTMENTS

 

Calgary

On November 30, 2012, CCE signed credit and management agreements with United Horsemen of Alberta Inc. (“UHA”) in connection with the development of a proposed Racing Entertainment Center (“REC”) in Balzac, north metropolitan area of Calgary, Alberta, Canada. We would manage the REC upon completion.

 

CCE has agreed to loan to UHA up to CAD 13 million for the exclusive use of developing the REC project. The loan has an interest rate of LIBOR plus 800 basis points and a term of five years and is convertible at CCE’s option into an ownership position in UHA of up to 60%. The loan is secured by a leasehold mortgage on the REC property and a pledge of UHA’s stock by the majority of UHA shareholders. We intend to fund the loan with borrowings under our BMO Credit Agreement.

 

As of September 30, 2013, we paid $0.2 million in deferred financing costs related to legal fees incurred for the UHA loan and placed $0.3 million in escrow related to UHA credit agreement.  In October 2013, the $0.2 million in deferred financing costs were converted to the first advance on the UHA credit agreement, the $0.3 million in escrow was released to UHA under the UHA credit agreement and an additional $0.3 million was advanced to UHA under the UHA credit agreement for operational expenses. Once the REC is developed and operational and for as long as CCE has not converted the UHA loan into a majority ownership position in UHA, CCE will receive 60% of UHA’s net profit before tax as a management fee.

 

After UHA and CCE signed the credit and management agreements,  litigation was brought by a third party against UHA relating to prior business arrangements between that party and UHA seeking to block the REC project. CCE was not a party to the litigation. The litigation has been settled, allowing the REC project to move forward.  

 

CCE is currently negotiating with UHA to loan additional monies needed to fund the REC project, estimated at CAD 11 million, and the Company is in negotiations with BMO for an additional credit facility under the BMO credit agreement that would be used to fund the additional UHA loan.

 

The REC project is subject to development and licensing approvals from the Alberta Gaming and Liquor Commission (“AGLC”). Horse Racing Alberta, the governing authority for horseracing in Alberta, has approved the REC project and approved a license. We anticipate that UHA will complete the REC in 12 to 18 months.

 

 

Southeast Asia

On February 5, 2013, the Company signed a credit agreement and loaned $0.5 million to an Asian company in connection with a proposed casino project in Southeast Asia. The credit agreement has an interest rate of LIBOR plus 8% and a term of three years. Interest revenue is payable quarterly. As of September 30, 2013, less than $0.1 million has been recorded as interest revenue. Principal payments are payable quarterly with the first payment due on June 30, 2014.  The $0.5 million loan is included in notes receivable on the condensed consolidated balance sheets. The Company has completed due diligence on the project and has decided not to move forward with the project. Repayment terms of the $0.5 million loan in connection with the project will remain the same.

 


Financing Arrangements For Project Investments (Details)
v0.0.0.0
Financing Arrangements For Project Investments (Details)
In Millions, unless otherwise specified
 9 Months Ended 1 Months Ended 9 Months Ended 9 Months Ended
Sep. 30, 2013
USD ($)
Sep. 30, 2013
United Horsemen Of Alberta Inc. [Member]
USD ($)
Sep. 30, 2013
United Horsemen Of Alberta Inc. [Member]
CAD ($)
Sep. 30, 2013
United Horsemen Of Alberta Inc. [Member]
Loan A [Member]
USD ($)
Oct. 31, 2013
United Horsemen Of Alberta Inc. [Member]
Loan A [Member]
Subsequent Event [Member]
USD ($)
Sep. 30, 2013
Asian Company [Member]
USD ($)
Feb. 05, 2013
Asian Company [Member]
USD ($)
Sep. 30, 2013
Minimum [Member]
Sep. 30, 2013
Maximum [Member]
Anticipated completion of Racing Entertainment Center               12 months 18 months
Development loan     $ 13.0       $ 0.5    
Interest rate percentage points above LIBOR     8.00%     8.00%      
Maximum potential ownership interest in UHA   60.00%              
Additional loan being negotiated     11            
Deferred financing costs converted to loan advance         0.2        
Escrow released to debtor         0.3        
Advance to debtor for operational expenses         0.3        
Interest revenue recorded           0.1      
Loan maturity period   5 years       3 years      
Loan included in notes receivable 0.5                
Payment of deferred financing costs   0.2              
Amount placed in escrow       $ 0.3          
Management fee as a percentage of net profit before tax of debtor upon completion of project   60.00%              

Income Taxes
v0.0.0.0
Income Taxes
 9 Months Ended
Sep. 30, 2013
Income Taxes [Abstract]  
Income Taxes

 

8.INCOME TAXES

 

The Company records deferred tax assets and liabilities based on the difference between the financial statement and income tax basis of assets and liabilities using the enacted statutory tax rate in effect for the year these differences are expected to be taxable or reversed. Deferred income tax expenses or credits are based on the changes in the asset or liability from period to period. The recorded deferred tax assets are reviewed for impairment on a quarterly basis by reviewing the Company’s internal estimates for future taxable income.

 

As of September 30, 2013, the Company had a valuation allowance for its U.S. deferred tax assets of $4.8 million, a $0.8 million valuation allowance on deferred tax assets related to its Calgary property and a $0.9 million valuation allowance on the CCE deferred tax assets due to the uncertainty of future taxable income. The Company assesses the continuing need for a valuation allowance that results from uncertainty regarding its ability to realize the benefits of the Company’s deferred tax assets. The ultimate realization of deferred income tax assets depends on generation of future taxable income in the jurisdiction where the assets are present during the periods in which those temporary differences become deductible. If the Company concludes that its prospects for the realization of its deferred tax assets changes, the Company will then adjust its valuation allowance as appropriate after considering the following factors: 

 

·

The level of historical taxable income and projections for future taxable income in the jurisdiction where the assets are present over periods in which the deferred tax assets would be deductible; 

·

Accumulation of net income before tax utilizing a look-back period of three years, and

·

Implementation of all tax planning strategies.

The Company’s provision for income taxes from operations consists of the following:

 

 

 

 

 

 

 

Amounts in thousands

 

For the nine months

ended September 30,

 

 

2013

 

2012

U.S. Federal - Current

 
$
0 

 
$
169 

U.S. Federal - Deferred

 
0 

 
0 

Provision for U.S. federal income taxes

 
0 

 
169 

 

 

 

 

 

Foreign - Current

 
$
1,183 

 
$
277 

Foreign - Deferred

 
(498)

 
386 

Provision for foreign income taxes

 
685 

 
663 

Total provision for income taxes

 
$
685 

 
$
832 

 

 

The Company’s pre-tax income by jurisdiction is summarized in the table below:

 

 

 

 

 

 

 

For the nine months

 

For the nine months

Amounts in thousands

 

ended September 30, 2013

 

ended September 30, 2012

   

 

Pre-tax income

 

Pre-tax income

Canada

 
$
3,771 

 
$
2,145 

United States

 
592 

 
640 

Mauritius

 
271 

 
322 

Austria

 
301 

 
902 

Poland

 
2,340 

 
290 

Total

 
$
7,275 

 
$
4,299 

 

 

 

 

 

 

 

 

 

 

The Company’s worldwide effective income tax rate is 9.4%. A substantial portion of the Company’s earnings are from Canada, which has a 25%  income tax rate.  In addition, the effective income tax rate in Poland is significantly lower than the statutory rate of 19% due to the $2.1 million gain related to the CPL acquisition, which is not taxable. Finally, the movement of exchange rates for intercompany loans denominated in U.S. dollars further impacts the Company’s effective income tax rate because foreign currency gains and losses generally are not taxed until realized. Therefore, the Company’s overall effective income tax rate can be significantly impacted by foreign currency gains or losses.


Income Taxes (Tables)
v0.0.0.0
Income Taxes (Tables)
 9 Months Ended
Sep. 30, 2013
Income Taxes [Abstract]  
Provision For Income Taxes From Operations

 

 

 

 

 

Amounts in thousands

 

For the nine months

ended September 30,

 

 

2013

 

2012

U.S. Federal - Current

 
$
0 

 
$
169 

U.S. Federal - Deferred

 
0 

 
0 

Provision for U.S. federal income taxes

 
0 

 
169 

 

 

 

 

 

Foreign - Current

 
$
1,183 

 
$
277 

Foreign - Deferred

 
(498)

 
386 

Provision for foreign income taxes

 
685 

 
663 

Total provision for income taxes

 
$
685 

 
$
832 

 

Pre-Tax Income (Loss) By Jurisdiction

 

 

 

 

 

 

 

For the nine months

 

For the nine months

Amounts in thousands

 

ended September 30, 2013

 

ended September 30, 2012

   

 

Pre-tax income

 

Pre-tax income

Canada

 
$
3,771 

 
$
2,145 

United States

 
592 

 
640 

Mauritius

 
271 

 
322 

Austria

 
301 

 
902 

Poland

 
2,340 

 
290 

Total

 
$
7,275 

 
$
4,299 

 

 

 

 

 

 

 

 

 

 

 


Earnings Per Share (Anti-Dilutive Stock Options Not Included In The Calculation Of Weighted Average Shares Outstanding) (Details)
v0.0.0.0
Earnings Per Share (Anti-Dilutive Stock Options Not Included In The Calculation Of Weighted Average Shares Outstanding) (Details)
 3 Months Ended 9 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Sep. 30, 2013
Sep. 30, 2012
Earnings Per Share [Abstract]        
Stock options 68 887 68 887

Earnings Per Share
v0.0.0.0
Earnings Per Share
 9 Months Ended
Sep. 30, 2013
Earnings Per Share [Abstract]  
Earnings Per Share

9.EARNINGS PER SHARE

 

The calculation of basic earnings per share considers only weighted average outstanding common shares in the computation. The calculation of diluted earnings per share gives effect to all potentially dilutive securities. The calculation of diluted earnings per share is based upon the weighted average number of common shares outstanding during the period, plus, if dilutive, the assumed exercise of stock options using the treasury stock method. Weighted average shares outstanding for the three and nine months ended September 30, 2013 and 2012 were as follows:

 

 

 

 

 

 

 

 

 

 

For the three months

ended September 30,

 

For the nine months

ended September 30,

Amounts in thousands

2013

 

2012

 

2013

 

2012

Weighted average common shares, basic

24,249 

 
24,117 

 
24,334 

 
24,117 

Dilutive effect of stock options

164 

 
23 

 
130 

 
201 

Weighted average common shares, diluted

24,413 

 
24,140 

 
24,464 

 
24,318 

 

The following stock options are anti-dilutive and have not been included in the weighted average shares outstanding calculation:

 

 

 

 

 

 

 

 

 

 

 

For the three months

ended September 30,

 

For the nine months

ended September 30,

Amounts in thousands

2013

 

2012

 

2013

 

2012

Stock options

68 

 
887 

 
68 

 
887 

 


Earnings Per Share (Tables)
v0.0.0.0
Earnings Per Share (Tables)
 9 Months Ended
Sep. 30, 2013
Earnings Per Share [Abstract]  
Schedule Of Weighted Average Shares Outstanding

 

 

 

 

 

 

 

 

 

For the three months

ended September 30,

 

For the nine months

ended September 30,

Amounts in thousands

2013

 

2012

 

2013

 

2012

Weighted average common shares, basic

24,249 

 
24,117 

 
24,334 

 
24,117 

Dilutive effect of stock options

164 

 
23 

 
130 

 
201 

Weighted average common shares, diluted

24,413 

 
24,140 

 
24,464 

 
24,318 

 

Anti-Dilutive Stock Options Not Included In The Calculation Of Weighted Average Shares Outstanding

 

 

 

 

 

 

 

 

 

For the three months

ended September 30,

 

For the nine months

ended September 30,

Amounts in thousands

2013

 

2012

 

2013

 

2012

Stock options

68 

 
887 

 
68 

 
887 

 


Earnings Per Share (Schedule Of Weighted Average Shares Outstanding) (Details)
v0.0.0.0
Earnings Per Share (Schedule Of Weighted Average Shares Outstanding) (Details)
 3 Months Ended 9 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Sep. 30, 2013
Sep. 30, 2012
Earnings Per Share [Abstract]        
Weighted average common shares, basic 24,249 24,117 24,334 24,117
Dilutive effect of stock options 164 23 130 201
Weighted average common shares, diluted 24,413 24,140 24,464 24,318

Income Taxes (Narrative) (Details)
v0.0.0.0
Income Taxes (Narrative) (Details) (USD $)
 0 Months Ended 3 Months Ended 9 Months Ended
Apr. 08, 2013
Sep. 30, 2013
Sep. 30, 2012
Sep. 30, 2013
Sep. 30, 2012
Income Taxes [Line Items]          
Look-back period       3 years  
Effective tax rate       9.40%  
Gain on business combination $ 2,074,000 $ 0 $ 0 $ 2,074,000 $ 0
Casinos Poland Ltd [Member]
          
Income Taxes [Line Items]          
Gain on business combination       2,100,000  
United States [Member]
          
Income Taxes [Line Items]          
Valuation allowance   4,800,000   4,800,000  
Calgary [Member]
          
Income Taxes [Line Items]          
Valuation allowance   800,000   800,000  
Century Casinos Europe GmbH [Member]
          
Income Taxes [Line Items]          
Valuation allowance   $ 900,000   $ 900,000  
Canada [Member]
          
Income Taxes [Line Items]          
Statutory tax rate       25.00%  
Poland [Member]
          
Income Taxes [Line Items]          
Effective tax rate       19.00%  

Income Taxes (Provision For Income Taxes From Operations) (Details)
v0.0.0.0
Income Taxes (Provision For Income Taxes From Operations) (Details) (USD $)
In Thousands, unless otherwise specified
 3 Months Ended 9 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Sep. 30, 2013
Sep. 30, 2012
Income Taxes [Abstract]        
U.S. Federal - Current     $ 0 $ 169
U.S. Federal - Deferred     0 0
Provision for U.S. federal income taxes     0 169
Foreign - Current     1,183 277
Foreign - Deferred     (498) 386
Provision for foreign income taxes     685 663
Total provision for income taxes $ 132 $ 343 $ 685 $ 832

Income Taxes (Pre-Tax Income (Loss) By Jurisdiction) (Details)
v0.0.0.0
Income Taxes (Pre-Tax Income (Loss) By Jurisdiction) (Details) (USD $)
In Thousands, unless otherwise specified
 3 Months Ended 9 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Sep. 30, 2013
Sep. 30, 2012
Income Taxes [Line Items]        
Pre-tax income (loss) $ 1,237 $ 1,529 $ 7,275 $ 4,299
Canada [Member]
        
Income Taxes [Line Items]        
Pre-tax income (loss)     3,771 2,145
United States [Member]
        
Income Taxes [Line Items]        
Pre-tax income (loss)     592 640
Mauritius [Member]
        
Income Taxes [Line Items]        
Pre-tax income (loss)     271 322
Austria [Member]
        
Income Taxes [Line Items]        
Pre-tax income (loss)     301 902
Poland [Member]
        
Income Taxes [Line Items]        
Pre-tax income (loss)     $ 2,340 $ 290

Fair Value Measurements
v0.0.0.0
Fair Value Measurements
 9 Months Ended
Sep. 30, 2013
Fair Value Measurements [Abstract]  
Fair Value Measurements

10. FAIR VALUE MEASUREMENTS

 

The Company follows fair value measurement authoritative accounting guidance for all assets and liabilities measured at fair value. That authoritative accounting guidance defines fair value as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the measurement date. Market or observable inputs are the preferred sources of values, followed by assumptions based on hypothetical transactions in the absence of market inputs. The fair value hierarchy for grouping these assets and liabilities is based on the significance level of the following inputs:

 

·

Level 1 – quoted prices in active markets for identical assets or liabilities

·

Level 2 – quoted prices in active markets for similar assets or liabilities, quoted prices for identical or similar instruments in markets that are not active, and model-derived valuations whose inputs are observable or whose significant value drivers are observable

·

Level 3 – significant inputs to the valuation model are unobservable

A financial instrument’s categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement.  The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability.  The Company reflects transfers between the three levels at the beginning of the reporting period in which the availability of observable inputs no longer justifies classification in the original level. 

 

Recurring Fair Value Measurements

We had no assets or liabilities measured at fair value on a recurring basis as of 9/30/13 and 12/31/12. 

 

Nonrecurring Fair Value Measurements

We have applied the provisions of the fair value measurement standard to our nonrecurring, non-financial assets and liabilities measured at fair value.  These assets and liabilities consist of those acquired by the Company in connection with our increased ownership in CPL. These assets are not measured at fair value on an ongoing basis, but are subject to fair value measurement only in certain circumstances.  The following table presents information about our non-financial assets and liabilities measured at fair value on a nonrecurring basis as of September 30, 2013, aggregated by the level in the fair value hierarchy within which those assets fall.  

 

 

 

 

 

 

 

Level 1

Level 2

Level 3

Contingent liability
$
0 
$
0 
$
5,868 

Noncontrolling interest
$
0 
$
0 
$
5,412 

Property and equipment, net
$
0 
$
0 
$
17,619 

Casino licenses
$
0 
$
0 
$
2,309 

Trademark
$
0 
$
0 
$
1,955 

 

There were no assets or liabilities measured at fair value at December 31, 2012.

 

Contingent liability – Level 3 fair value measurements include the measurement of the contingent liability recorded for CPL. The company measures the fair value of the contingent liability using a probability weighted cash flow analysis. Because of the significance of the unobservable inputs in the fair value measurements of the liability, such measurements have been classified as Level 3.

 

Noncontrolling interest - Noncontrolling interests are measured primarily by a market comparables analysis that considers key financial inputs and recent public and private transactions and other available measures.

 

Property and equipment, net –The Company measured the fair value of property and equipment by using the direct market value approach and the direct and indirect cost approach. Because of the significance of the unobservable inputs in the fair value measurements of the liability, such measurements have been classified as Level 3.

 

Casino licenses– The Company measured casino licenses acquired from CPL by using a replacement cost method. Because of the significance of the unobservable inputs in the fair value measurements of the liability, such measurements have been classified as Level 3.

 

Trademark – The Company measured the Casinos Poland trademark acquired from CPL by using the relief from royalty method. Because of the significance of the unobservable inputs in the fair value measurements of the liability, such measurements have been classified as Level 3.

 

Long-term debt – The carrying value of the Company’s long-term debt approximates fair value at September 30, 2013 and December 31, 2012 because it bears interest at the lenders’ variable rate. 

 

Other Estimated Fair Value Measurements – The estimated fair value of our other assets and liabilities, such as cash and cash equivalents, accounts receivable, inventory, accrued payroll and accounts payable, have been determined to approximate carrying value based on the short-term nature of those financial instruments.    


Fair Value Measurements (Tables)
v0.0.0.0
Fair Value Measurements (Tables)
 9 Months Ended
Sep. 30, 2013
Fair Value Measurements [Abstract]  
Nonrecurring Fair Value Measurements

 

 

 

 

 

Level 1

Level 2

Level 3

Contingent liability
$
0 
$
0 
$
5,868 

Noncontrolling interest
$
0 
$
0 
$
5,412 

Property and equipment, net
$
0 
$
0 
$
17,619 

Casino licenses
$
0 
$
0 
$
2,309 

Trademark
$
0 
$
0 
$
1,955 

 


Fair Value Measurements (Details)
v0.0.0.0
Fair Value Measurements (Details) (USD $)
In Thousands, unless otherwise specified
Sep. 30, 2013
Dec. 31, 2012
Contingent liability $ 5,868 $ 0
Noncontrolling interest 5,697 0
Property and equipment, net 113,726 99,526
Casino licenses 2,309 0
Trademark 2,059 104
Level 1 [Member]
    
Contingent liability 0  
Noncontrolling interest 0  
Property and equipment, net 0  
Casino licenses 0  
Trademark 0  
Level 2 [Member]
    
Contingent liability 0  
Noncontrolling interest 0  
Property and equipment, net 0  
Casino licenses 0  
Trademark 0  
Level 3 [Member]
    
Contingent liability 5,868  
Noncontrolling interest 5,412  
Property and equipment, net 17,619  
Casino licenses 2,309  
Trademark 1,955  
Century Casinos [Member]
    
Trademark $ 104  

Segment Information
v0.0.0.0
Segment Information
 9 Months Ended
Sep. 30, 2013
Segment Information [Abstract]  
Segment Information

11.SEGMENT INFORMATION

 

The Company has determined that its operation of casino facilities, which includes the provision of gaming, hotel accommodations, dining facilities and other amenities, can be aggregated as one reportable segment.

 

The following summary provides information regarding the Company’s principal geographic areas:

 

 

 

 

 

 

 

 

 

Long Lived Assets

 

 

At September 30,

 

At December 31,

Amounts in thousands

 

2013

 

2012

   

 

 

 

 

United States

 
$
54,662 

 
$
55,442 

International:

 

 

 

 

   Canada

 
$
47,178 

 
$
49,754 

Europe

 
33,287 

 
4,157 

   International waters

 
882 

 
1,187 

Total international

 
81,347 

 
55,098 

Total

 
$
136,009 

 
$
110,540 

 

 

 

 

 

 

 

 

 

 

 

 

   

 

Net Operating Revenue

   

 

For the three months

ended September 30, 

 

For the nine months

ended September 30, 

Amounts in thousands

 

2013

 

2012

 

2013

 

2012

United States

 
$
7,870 

 
$
8,434 

 
$
22,790 

 
$
23,553 

International:

 

 

 

 

 

 

 

 

   Canada

 
$
8,023 

 
$
8,428 

 
$
25,148 

 
$
25,371 

   Europe

 
11,115 

 
0 

 
21,985 

 
0 

   International waters

 
1,731 

 
1,778 

 
4,968 

 
4,919 

  Aruba

 
87 

 
83 

 
273 

 
239 

Total international

 
20,956 

 
10,289 

 
52,374 

 
30,529 

Total

 
$
28,826 

 
$
18,723 

 
$
75,164 

 
$
54,082 

 

 

 

 


Segment Information (Tables)
v0.0.0.0
Segment Information (Tables)
 9 Months Ended
Sep. 30, 2013
Segment Information [Abstract]  
Schedule of Long-Lived Assets, by Geographical Areas

 

 

 

 

 

 

 

Long Lived Assets

 

 

At September 30,

 

At December 31,

Amounts in thousands

 

2013

 

2012

   

 

 

 

 

United States

 
$
54,662 

 
$
55,442 

International:

 

 

 

 

   Canada

 
$
47,178 

 
$
49,754 

Europe

 
33,287 

 
4,157 

   International waters

 
882 

 
1,187 

Total international

 
81,347 

 
55,098 

Total

 
$
136,009 

 
$
110,540 

 

Schedule of Revenue from External Customers, by Geographical Areas

 

 

 

 

 

 

 

 

 

   

 

Net Operating Revenue

   

 

For the three months

ended September 30, 

 

For the nine months

ended September 30, 

Amounts in thousands

 

2013

 

2012

 

2013

 

2012

United States

 
$
7,870 

 
$
8,434 

 
$
22,790 

 
$
23,553 

International:

 

 

 

 

 

 

 

 

   Canada

 
$
8,023 

 
$
8,428 

 
$
25,148 

 
$
25,371 

   Europe

 
11,115 

 
0 

 
21,985 

 
0 

   International waters

 
1,731 

 
1,778 

 
4,968 

 
4,919 

  Aruba

 
87 

 
83 

 
273 

 
239 

Total international

 
20,956 

 
10,289 

 
52,374 

 
30,529 

Total

 
$
28,826 

 
$
18,723 

 
$
75,164 

 
$
54,082 

 


Segment Information (Schedule of Long-Lived Assets, by Geographical Areas) (Details)
v0.0.0.0
Segment Information (Schedule of Long-Lived Assets, by Geographical Areas) (Details) (USD $)
In Thousands, unless otherwise specified
Sep. 30, 2013
Dec. 31, 2012
Segment Reporting Information [Line Items]    
Long Lived Assets $ 136,009 $ 110,540
United States [Member]
    
Segment Reporting Information [Line Items]    
Long Lived Assets 54,662 55,442
Canada [Member]
    
Segment Reporting Information [Line Items]    
Long Lived Assets 47,178 49,754
Europe [Member]
    
Segment Reporting Information [Line Items]    
Long Lived Assets 33,287 4,157
International Waters [Member]
    
Segment Reporting Information [Line Items]    
Long Lived Assets 882 1,187
International [Member]
    
Segment Reporting Information [Line Items]    
Long Lived Assets $ 81,347 $ 55,098

Segment Information (Schedule of Revenue from External Customers Long-Lived Assets, by Geographical Areas) (Details)
v0.0.0.0
Segment Information (Schedule of Revenue from External Customers Long-Lived Assets, by Geographical Areas) (Details) (USD $)
In Thousands, unless otherwise specified
 3 Months Ended 9 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Sep. 30, 2013
Sep. 30, 2012
Segment Reporting Information [Line Items]        
Net Operating Revenue $ 28,826 $ 18,723 $ 75,164 $ 54,082
United States [Member]
        
Segment Reporting Information [Line Items]        
Net Operating Revenue 7,870 8,434 22,790 23,553
Canada [Member]
        
Segment Reporting Information [Line Items]        
Net Operating Revenue 8,023 8,428 25,148 25,371
Europe [Member]
        
Segment Reporting Information [Line Items]        
Net Operating Revenue 11,115 0 21,985 0
International Waters [Member]
        
Segment Reporting Information [Line Items]        
Net Operating Revenue 1,731 1,778 4,968 4,919
Aruba [Member]
        
Segment Reporting Information [Line Items]        
Net Operating Revenue 87 83 273 239
International [Member]
        
Segment Reporting Information [Line Items]        
Net Operating Revenue $ 20,956 $ 10,289 $ 52,374 $ 30,529