Document and Entity Information
| Document and Entity Information | 6 Months Ended | |
|---|---|---|
| Jun. 30, 2012 | Jul. 27, 2012 | |
| Document and Entity Information [Abstract] | ||
| Document Type | 10-Q | |
| Amendment Flag | false | |
| Document Period End Date | Jun. 30, 2012 | |
| Document Fiscal Year Focus | 2012 | |
| Document Fiscal Period Focus | Q2 | |
| Entity Registrant Name | CENTURY CASINOS INC /CO/ | |
| Entity Central Index Key | 0000911147 | |
| Current Fiscal Year End Date | --06-30 | |
| Entity Filer Category | Smaller Reporting Company | |
| Entity Common Stock, Shares Outstanding | 24,233,174 |
Condensed Consolidated Balance Sheets
Condensed Consolidated Balance Sheets (Parenthetical)
| Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Jun. 30, 2012 | Dec. 31, 2011 |
|---|---|---|
| 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 | 24,233,174 | 23,993,174 |
| Common stock, shares outstanding | 24,117,362 | 23,877,362 |
| Treasury stock, shares | 115,812 | 115,812 |
Condensed Consolidated Statements of Earnings
| Condensed Consolidated Statements of Earnings (USD $) In Thousands, except Per Share data, unless otherwise specified | 3 Months Ended | 6 Months Ended | ||
|---|---|---|---|---|
| Jun. 30, 2012 | Jun. 30, 2011 | Jun. 30, 2012 | Jun. 30, 2011 | |
| Operating revenue: | ||||
| Gaming | $ 15,709 | $ 15,928 | $ 30,968 | $ 30,753 |
| Hotel, bowling, food and beverage | 3,135 | 3,141 | 6,456 | 6,384 |
| Other | 1,103 | 1,004 | 2,046 | 1,939 |
| Gross revenue | 19,947 | 20,073 | 39,470 | 39,076 |
| Less: Promotional allowances | (2,156) | (2,071) | (4,110) | (3,959) |
| Net operating revenue | 17,791 | 18,002 | 35,360 | 35,117 |
| Operating costs and expenses: | ||||
| Gaming | 7,459 | 7,341 | 14,692 | 14,272 |
| Hotel, bowling, food and beverage | 2,420 | 2,553 | 4,857 | 5,064 |
| General and administrative | 5,320 | 5,848 | 10,624 | 11,216 |
| Depreciation | 1,180 | 1,665 | 2,358 | 3,306 |
| Total operating costs and expenses | 16,379 | 17,407 | 32,531 | 33,858 |
| Earnings from equity investment | 283 | 382 | 438 | 474 |
| Earnings from operations | 1,695 | 977 | 3,267 | 1,733 |
| Non-operating income (expense): | ||||
| Interest income | 23 | 5 | 29 | 7 |
| Interest expense | (395) | (197) | (543) | (443) |
| Gains on foreign currency transactions and other | 22 | 114 | 17 | 189 |
| Non-operating income (expense), net | (350) | (78) | (497) | (247) |
| Earnings before income taxes | 1,345 | 899 | 2,770 | 1,486 |
| Income tax provision | 197 | 255 | 489 | 478 |
| Net earnings | $ 1,148 | $ 644 | $ 2,281 | $ 1,008 |
| Earnings per share: | ||||
| Basic | $ 0.05 | $ 0.03 | $ 0.10 | $ 0.04 |
| Diluted | $ 0.05 | $ 0.03 | $ 0.09 | $ 0.04 |
Condensed Consolidated Statements of Comprehensive Earnings
| Condensed Consolidated Statements of Comprehensive Earnings (USD $) In Thousands, unless otherwise specified | 3 Months Ended | 6 Months Ended | ||
|---|---|---|---|---|
| Jun. 30, 2012 | Jun. 30, 2011 | Jun. 30, 2012 | Jun. 30, 2011 | |
| Condensed Consolidated Statements of Comprehensive Earnings [Abstract] | ||||
| Net earnings | $ 1,148 | $ 644 | $ 2,281 | $ 1,008 |
| Foreign currency translation adjustments | (1,357) | 80 | (290) | 1,374 |
| Comprehensive (loss) earnings | $ (209) | $ 724 | $ 1,991 | $ 2,382 |
Condensed Consolidated Statements of Cash Flows
Description Of Business And Basis Of Presentation
| Description Of Business And Basis Of Presentation | 6 Months Ended |
|---|---|
| Jun. 30, 2012 | |
| 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 June 30, 2012, the Company owned casino operations in North America; managed cruise ship-based casinos on international waters; and owned a management contract to manage the casino in the Radisson Aruba Resort, Casino & Spa. The Company also owns a 33.3% ownership interest in Casinos Poland Ltd (“CPL”), the owner and operator of eight casinos in Poland. The Company continues to pursue other projects in various stages of development.
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. 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 and 10-K/A for the year ended December 31, 2011. The results of operations for the period ended June 30, 2012 are not necessarily indicative of the operating results for the full year.
Presentation of Foreign Currency Amounts
Dollar amounts reported in this quarterly report are in U.S. dollars (“USD”) unless otherwise indicated. Transactions that are denominated in a foreign currency, which include the Canadian dollar (“CAD”), Euro (“€”) and Polish zloty (“PLN”) are translated and recorded at the exchange rate in effect on the date of the transaction. Commitments that are denominated in a foreign currency and all balance sheet accounts other than shareholders’ equity are translated and presented based on the exchange rate between such foreign currency and the U.S. dollar at the end of the reported periods. Current period transactions affecting the profit and loss of operations conducted in foreign currencies are valued at the average exchange rate between such foreign currency and the U.S. dollar for the period in which they are incurred.
The exchange rates to the U.S. dollar used to translate balances at the end of the reported periods are as follows:
The average exchange rates to the U.S. dollar used to translate balances during each reported period are as follows:
|
Description Of Business And Basis Of Presentation (Tables)
| Description Of Business And Basis Of Presentation (Tables) | 6 Months Ended |
|---|---|
| Jun. 30, 2012 | |
| Description Of Business And Basis Of Presentation [Abstract] | |
| Exchange Rates | |
| Average Exchange Rates |
Description Of Business And Basis Of Presentation (Narative) (Details)
| Description Of Business And Basis Of Presentation (Narative) (Details) (Casinos Poland Ltd [Member]) | Jun. 30, 2012 |
|---|---|
| Casinos Poland Ltd [Member] | |
| Description Of Business And Basis Of Presentation [Line Items] | |
| Ownership percentage | 33.30% |
Description Of Business And Basis Of Presentation (Exchange Rates) (Details)
| Description Of Business And Basis Of Presentation (Exchange Rates) (Details) | Jun. 30, 2012 | Dec. 31, 2011 |
|---|---|---|
| Canadian Dollar [Member] | ||
| Description Of Business And Basis Of Presentation [Line Items] | ||
| Exchange rate | 1.0191 | 1.0170 |
| Euros [Member] | ||
| Description Of Business And Basis Of Presentation [Line Items] | ||
| Exchange rate | 0.7894 | 0.7709 |
| Polish Zloty [Member] | ||
| Description Of Business And Basis Of Presentation [Line Items] | ||
| Exchange rate | 3.3885 | 3.4174 |
Description Of Business And Basis Of Presentation (Average Exchange Rates) (Details)
| Description Of Business And Basis Of Presentation (Average Exchange Rates) (Details) | 3 Months Ended | 6 Months Ended | ||
|---|---|---|---|---|
| Jun. 30, 2012 | Jun. 30, 2011 | Jun. 30, 2012 | Jun. 30, 2011 | |
| Canadian Dollar [Member] | ||||
| Description Of Business And Basis Of Presentation [Line Items] | ||||
| Average exchange rate | 1.0104 | 0.9678 | 1.0060 | 0.9769 |
| Change in average foreign currency rate | (4.4) | (3.0) | ||
| Euros [Member] | ||||
| Description Of Business And Basis Of Presentation [Line Items] | ||||
| Average exchange rate | 0.7796 | 0.6947 | 0.7712 | 0.7130 |
| Change in average foreign currency rate | (12.2) | (8.2) | ||
| Polish Zloty [Member] | ||||
| Description Of Business And Basis Of Presentation [Line Items] | ||||
| Average exchange rate | 3.3181 | 2.7495 | 3.2724 | 2.8180 |
| Change in average foreign currency rate | (20.7) | (16.1) | ||
Equity Investment In Unconsolidated Subsidiary
| Equity Investment In Unconsolidated Subsidiary | 6 Months Ended | |||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Jun. 30, 2012 | ||||||||||||||||||||||||||||||||||||
| Equity Investment In Unconsolidated Subsidiary [Abstract] | ||||||||||||||||||||||||||||||||||||
| Equity Investment In Unconsolidated Subsidiary | 2. EQUITY INVESTMENT IN UNCONSOLIDATED SUBSIDIARY
Following is the summarized financial information of CPL as of June 30, 2012 and December 31, 2011 and for the three and six months ended June 30, 2012 and 2011:
The Company’s maximum exposure to losses at June 30, 2012 was $3.2 million, the value of its equity investment in CPL.
Changes in the carrying amount of the investment in CPL during the six months ended June 30, 2012 are as follows:
| |||||||||||||||||||||||||||||||||||
Equity Investment In Unconsolidated Subsidiary (Tables)
| Equity Investment In Unconsolidated Subsidiary (Tables) | 6 Months Ended |
|---|---|
| Jun. 30, 2012 | |
| Equity Investment In Unconsolidated Subsidiary [Abstract] | |
| Summarized Financial Information | |
| Operating Results | |
| Changes In Carrying Amount Of Investment |
Equity Investment In Unconsolidated Subsidiary (Summarized Financial Information) (Details)
| Equity Investment In Unconsolidated Subsidiary (Summarized Financial Information) (Details) (USD $) In Thousands, unless otherwise specified | Jun. 30, 2012 | Dec. 31, 2011 |
|---|---|---|
| Equity Investment In Unconsolidated Subsidiary [Abstract] | ||
| Current assets | $ 4,631 | $ 4,061 |
| Noncurrent assets | 13,114 | 9,523 |
| Current liabilities | 8,140 | 4,393 |
| Noncurrent liabilities | $ 2,057 | $ 3,230 |
Equity Investment In Unconsolidated Subsidiary (Operating Results) (Details)
| Equity Investment In Unconsolidated Subsidiary (Operating Results) (Details) (USD $) In Thousands, unless otherwise specified | 3 Months Ended | 6 Months Ended | ||
|---|---|---|---|---|
| Jun. 30, 2012 | Jun. 30, 2011 | Jun. 30, 2012 | Jun. 30, 2011 | |
| Equity Investment In Unconsolidated Subsidiary [Abstract] | ||||
| Net operating revenue | $ 10,911 | $ 13,663 | $ 21,357 | $ 25,199 |
| Net earnings | $ 849 | $ 1,147 | $ 1,313 | $ 1,422 |
Equity Investment In Unconsolidated Subsidiary (Changes In Carrying Amount Of Investment) (Details)
| Equity Investment In Unconsolidated Subsidiary (Changes In Carrying Amount Of Investment) (Details) (USD $) In Thousands, unless otherwise specified | 3 Months Ended | 6 Months Ended | ||
|---|---|---|---|---|
| Jun. 30, 2012 | Jun. 30, 2011 | Jun. 30, 2012 | Jun. 30, 2011 | |
| Equity Investment In Unconsolidated Subsidiary [Abstract] | ||||
| Balance - January 1, 2012 | $ 2,756 | |||
| Equity Earnings | 283 | 382 | 438 | 474 |
| Effect of foreign currency translation | 15 | |||
| Balance - June 30, 2012 | $ 3,209 | $ 3,209 | ||
Goodwill
| Goodwill | 6 Months Ended |
|---|---|
| Jun. 30, 2012 | |
| Goodwill [Abstract] | |
| Goodwill |
Changes in the carrying amount of goodwill related to the Company’s Edmonton property for the six months ended June 30, 2012 are as follows:
|
Goodwill (Tables)
| Goodwill (Tables) | 6 Months Ended |
|---|---|
| Jun. 30, 2012 | |
| Goodwill [Abstract] | |
| Changes In The Carrying Amount Of Goodwill |
Goodwill (Changes In The Carrying Amount Of Goodwill) (Details)
| Goodwill (Changes In The Carrying Amount Of Goodwill) (Details) (USD $) In Thousands, unless otherwise specified | 6 Months Ended |
|---|---|
| Jun. 30, 2012 | |
| Goodwill [Abstract] | |
| Balance - January 1, 2012 | $ 4,833 |
| Effect of foreign currency translation | (10) |
| Balance - June 30, 2012 | $ 4,823 |
Long-Term Debt
| Long-Term Debt | 6 Months Ended | |||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Jun. 30, 2012 | ||||||||||||||||||||||||||||
| Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||
| Long-Term Debt |
Long-term debt at June 30, 2012 and December 31, 2011 consisted of the following:
Credit Agreement- Bank of Montreal
On May 23, 2012, the Company, through its subsidiaries Century Resorts Alberta, Inc. (“CRA”) and Century Casino Calgary Inc. (“CAL”) entered into a CAD 28.0 million ($27.5 million) credit agreement with the Bank of Montreal (the “BMO Credit Agreement”). Proceeds from the BMO Credit Agreement were used to repay the Company’s mortgage debt related to the Edmonton property (the “Edmonton Mortgage”) and will also be used 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.
The BMO Credit Agreement consists of three credit facilities to be utilized as follows: 1. Credit Facility A is a CAD 1.0 million ($1.0 million) revolving credit facility to be used for the costs of the financing, ongoing working capital requirements and operating regulatory requirements. 2. Credit Facility B is a CAD 25.0 million ($24.5 million) committed, non-revolving, reducing standby facility. Up to CAD 11 million ($10.8 million) of the Credit Facility B may be used to repay all or part of the Edmonton Mortgage with the remainder available for working capital requirements and general corporate purposes. As described below, CAD 3.7 million ($3.6 million) was drawn down under Credit Facility B and was used, with cash on hand, to repay in full the Edmonton Mortgage.
Once the principal balance of the advance under Credit Facility B has been repaid, it cannot be re-borrowed.
3. Credit Facility C is a CAD 2.0 million ($2.0 million) treasury management risk facility as defined by the BMO Credit Agreement. As of June 30, 2012, the Company had approximately CAD 24.3 million ($23.8 million) available for borrowing under the BMO Credit Agreement.
The BMO Credit Agreement bears interest based on credit facilities as follows:
1. Advances under Credit Facility A may be in the form of : i. Advances denominated in CAD and bearing interest at the lender’s floating rate for loans made in CAD plus a margin as defined by the BMO Credit Agreement, and/or ii. Advances denominated in USD and bearing interest at the lender’s floating rate for loan made in USD plus a margin as defined by the BMO Credit Agreement, and/or iii. Issuances of a CAD Letter of Credit (maximum face value CAD 100,000), bearing interest at a floating margin rate as defined by the BMO Credit Agreement. 2. Advances under Credit Facility B may be in the form of: i. Advances denominated in CAD and bearing interest at the lender’s floating rate for loans made in CAD plus a margin as defined by the BMO Credit Agreement (CAD 500,000 minimum and CAD 100,000 increments thereafter); ii. Advances denominated in USD and bearing interest at the lender’s floating rate for loans made in USD plus a margin as defined by the BMO Credit Agreement ($500,000 minimum and $100,000 increments thereafter); iii. Advances denominated in USD and bearing interest at the LIBOR rate fixed for 1-6 months ($1 million minimum and $500,000 increments thereafter); and/or iv. A Bankers Acceptance denominated in CAD and bearing interest at a fixed rate as defined by the BMO Credit Agreement for 1-6 months (CAD 1 million minimum and CAD 500,000 increments thereafter). 4. Any funds that are not drawn down under either Credit Facility A or B are classified as a CAD Standby Facility.
Mortgage - Edmonton
On May 23, 2012, the Company repaid the outstanding balance of approximately $6.3 million on the Edmonton Mortgage. The repayment consisted of $6.1 million in principal and interest due on the Edmonton Mortgage and $0.2 million in prepayment penalties and unamortized deferred financing charges. This loan payoff was funded with a $3.6 million borrowing under the BMO Credit Agreement and $2.7 million of cash on hand. The repayment by the Company terminated the Edmonton Mortgage.
Deferred financing charges, which are reported as a component of other assets, are summarized as follows:
Amortization expense relating to deferred financing charges was $0.1 million for both the six months ended June 30, 2012 and June 30, 2011, and is included in interest expense in the accompanying condensed consolidated statement of earnings.
As of June 30, 2012, the Company was in compliance with all covenants related to its borrowings. Covenants of the BMO Credit Agreement include the following:
a) Senior Funded Debt to EBITDA Ratio as defined by the BMO Credit Agreement may not be greater than 3.00:1.00; b) Fixed Charge Coverage Ratio as defined by the BMO Credit Agreement may not be less than 1.20:1.00; c) CRA and CAL combined shareholder’s equity may not be less than CAD 20 million; and d) Capital expenditures in any fiscal year may not exceed CAD 4.0 million in aggregate, without the lender’s consent.
The consolidated weighted average interest rate on all borrowings for the Company was 17.2% for the six months ended June 30, 2012. The Company currently pays a floating interest rate on its borrowings under the BMO Credit Agreement. The current interest rate is approximately 4.0%. The weighted average interest rate is higher than the 7.0% interest rate of the Edmonton Mortgage and the 4.0% interest rate under on the BMO Credit Agreement because the Company wrote off a total of $0.1 million in deferred financing costs and paid $0.2 million in prepayment penalties in May 2012 in connection with the repayment of the Edmonton Mortgage.
As of June 30, 2012, scheduled maturities of the long-term debt is as follows:
|
Long-Term Debt (Tables)
| Long-Term Debt (Tables) | 6 Months Ended |
|---|---|
| Jun. 30, 2012 | |
| Debt Disclosure [Abstract] | |
| Schedule of Long-term Debt | |
| Schedule of Deferred Financing Charges | |
| Schedule of Maturities of Long-term Debt |
Long-Term Debt (Narrative) (Details)
| Long-Term Debt (Narrative) (Details) | 6 Months Ended | 6 Months Ended | 6 Months Ended | 6 Months Ended | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Jun. 30, 2012 USD ($) | Jun. 30, 2011 USD ($) | May 23, 2012 | Jun. 30, 2012 Edmonton Mortgage [Member] USD ($) | Jun. 30, 2012 BMO Credit Agreement [Member] CAD ($) | Jun. 30, 2012 BMO Credit Agreement [Member] USD ($) | May 23, 2012 BMO Credit Agreement [Member] USD ($) | May 23, 2012 BMO Credit Agreement [Member] CAD ($) | Jun. 30, 2012 CRA and CAL [Member] CAD ($) | Jun. 30, 2012 Credit Facility A [Member] USD ($) | Jun. 30, 2012 Credit Facility A [Member] CAD ($) | Jun. 30, 2012 Credit Facility B [Member] USD ($) | Jun. 30, 2012 Credit Facility B [Member] CAD ($) | Jun. 30, 2012 To Be Used To Repay Edmonton Mortgage [Member] USD ($) | Jun. 30, 2012 To Be Used To Repay Edmonton Mortgage [Member] CAD ($) | Jun. 30, 2012 Credit Facility C [Member] USD ($) | Jun. 30, 2012 Credit Facility C [Member] CAD ($) | Jun. 30, 2012 Amortization of Deferred Financing Charges [Member] USD ($) | Jun. 30, 2011 Amortization of Deferred Financing Charges [Member] USD ($) | |
| Long Term Debt [Line Items] | |||||||||||||||||||
| Repayment of mortgage | $ 6,300,000 | ||||||||||||||||||
| Cash | 2,700,000 | ||||||||||||||||||
| Secured Debt | 3,600,000 | ||||||||||||||||||
| Principal and interest payment | 6,100,000 | 6,100,000 | |||||||||||||||||
| Early termination penalty | 200,000 | 200,000 | |||||||||||||||||
| Unamortized finance charges written off | 100,000 | ||||||||||||||||||
| Amount of credit agreement | 27,500,000 | 28,000,000 | 1,000,000 | 1,000,000 | 24,500,000 | 25,000,000 | 10,800,000 | 11,000,000 | 2,000,000 | 2,000,000 | |||||||||
| Term of credit agreement | 5 years | ||||||||||||||||||
| Line of credit facility amount drawn to repay Edmonton mortgage | 3,600,000 | 3,700,000 | |||||||||||||||||
| Line of credit facility amount available for borrowing | 24,300,000 | 23,800,000 | |||||||||||||||||
| Amortization of deferred financing costs | 110,000 | 45,000 | 100,000 | 100,000 | |||||||||||||||
| Weighted average interest rate on borrowings | 17.20% | 17.20% | |||||||||||||||||
| Interest rate | 7.00% | 4.00% | |||||||||||||||||
| Anticipated floating rate | 4.00% | ||||||||||||||||||
| Senior funded debt to EBITDA ratio | 3.00 | ||||||||||||||||||
| Minimum fixed charge coverage ratio | 1.20 | ||||||||||||||||||
| Shareholder's equity | 20,000,000 | ||||||||||||||||||
| Maximum capital expenditures | $ 4,000,000 | ||||||||||||||||||
| Line of credit facility description | Longer term fixed rates of interest, up to and including the full five year term of the BMO Credit Agreement, can be achieved through the use of interest rate swaps with a deemed risk up to the maximum amount of Credit Facility C. As of June 30, 2012, no interest rate swaps were in use by the Company.Any funds that are not drawn down under either Credit Facility A or B are classified as a CAD Standby Facility. | Advances under Credit Facility A may be in the form of : Advances denominated in CAD and bearing interest at the lender's floating rate for loans made in CAD plus a margin as defined by the BMO Credit Agreement, and/or Advances denominated in USD and bearing interest at the lender's floating rate for loan made in USD plus a margin as defined by the BMO Credit Agreement, and/or Issuances of a CAD Letter of Credit (maximum face value CAD 100,000), bearing interest at a floating margin rate as defined by the BMO Credit Agreement. | Advances under Credit Facility A may be in the form of : Advances denominated in CAD and bearing interest at the lender's floating rate for loans made in CAD plus a margin as defined by the BMO Credit Agreement, and/or Advances denominated in USD and bearing interest at the lender's floating rate for loan made in USD plus a margin as defined by the BMO Credit Agreement, and/or Issuances of a CAD Letter of Credit (maximum face value CAD 100,000), bearing interest at a floating margin rate as defined by the BMO Credit Agreement. | Advances under Credit Facility B may be in the form of: Advances denominated in CAD and bearing interest at the lender's floating rate for loans made in CAD plus a margin as defined by the BMO Credit Agreement (CAD 500,000 minimum and CAD 100,000 increments thereafter); Advances denominated in USD and bearing interest at the lender's floating rate for loans made in USD plus a margin as defined by the BMO Credit Agreement ($500,000 minimum and $100,000 increments thereafter); Advances denominated in USD and bearing interest at the LIBOR rate fixed for 1-6 months ($1 million minimum and $500,000 increments thereafter); and/or A Bankers Acceptance denominated in CAD and bearing interest at a fixed rate as defined by the BMO Credit Agreement for 1-6 months (CAD 1 million minimum and CAD 500,000 increments thereafter). | Advances under Credit Facility B may be in the form of: Advances denominated in CAD and bearing interest at the lender's floating rate for loans made in CAD plus a margin as defined by the BMO Credit Agreement (CAD 500,000 minimum and CAD 100,000 increments thereafter); Advances denominated in USD and bearing interest at the lender's floating rate for loans made in USD plus a margin as defined by the BMO Credit Agreement ($500,000 minimum and $100,000 increments thereafter); Advances denominated in USD and bearing interest at the LIBOR rate fixed for 1-6 months ($1 million minimum and $500,000 increments thereafter); and/or A Bankers Acceptance denominated in CAD and bearing interest at a fixed rate as defined by the BMO Credit Agreement for 1-6 months (CAD 1 million minimum and CAD 500,000 increments thereafter). | ||||||||||||||
| Borrowing covenants | Senior Funded Debt to EBITDA Ratio as defined by the BMO Credit Agreement may not be greater than 3.00:1.00; Fixed Charge Coverage Ratio as defined by the BMO Credit Agreement may not be less than 1.20:1.00; CRA and CAL combined shareholder's equity may not be less than CAD 20 million; and Capital expenditures in any fiscal year may not exceed CAD 4.0 million in aggregate, without the lender's consent. | ||||||||||||||||||
Long-Term Debt (Schedule of Long-term Debt) (Details)
| Long-Term Debt (Schedule of Long-term Debt) (Details) In Thousands, unless otherwise specified | Jun. 30, 2012 USD ($) | Jun. 30, 2012 CAD ($) | Dec. 31, 2011 USD ($) | Jun. 30, 2012 BMO Credit Agreement [Member] USD ($) | Dec. 31, 2011 BMO Credit Agreement [Member] USD ($) | Jun. 30, 2012 Edmonton Mortgage [Member] USD ($) | Dec. 31, 2011 Edmonton Mortgage [Member] USD ($) |
|---|---|---|---|---|---|---|---|
| Debt Instrument [Line Items] | |||||||
| Long-term Debt, Total | $ 3,631 | $ 3,700 | $ 9,100 | $ 3,631 | $ 0 | $ 0 | $ 9,100 |
| Less: current maturities of long-term debt obligations | (333) | (9,100) | |||||
| Long-term debt, less current portion | $ 3,298 | $ 0 |
Long-Term Debt (Schedule of Deferred Financing Charges) (Details)
| Long-Term Debt (Schedule of Deferred Financing Charges) (Details) (USD $) In Thousands, unless otherwise specified | Jun. 30, 2012 | Dec. 31, 2011 |
|---|---|---|
| BMO Credit Agreement [Member] | ||
| Debt Instrument [Line Items] | ||
| Deferred Finance Costs, Current, Gross | $ 79 | $ 0 |
| Deferred Finance Costs, Noncurrent, Gross | 308 | 0 |
| Deferred Finance Costs, Gross | 387 | 0 |
| Edmonton Mortgage [Member] | ||
| Debt Instrument [Line Items] | ||
| Deferred Finance Costs, Current, Gross | 0 | 101 |
| Deferred Finance Costs, Noncurrent, Gross | 0 | 0 |
| Deferred Finance Costs, Gross | $ 0 | $ 101 |
Long-Term Debt (Schedule of Maturities of Long-term Debt) (Details)
| Long-Term Debt (Schedule of Maturities of Long-term Debt) (Details) In Thousands, unless otherwise specified | Jun. 30, 2012 USD ($) | Jun. 30, 2012 CAD ($) | Dec. 31, 2011 USD ($) |
|---|---|---|---|
| Debt Disclosure [Abstract] | |||
| Long-term Debt, Maturities, 2012 | $ 151 | $ 154 | |
| Long-term Debt, Maturities, 2013 | 363 | 370 | |
| Long-term Debt, Maturities, 2014 | 363 | 370 | |
| Long-term Debt, Maturities, 2015 | 363 | 370 | |
| Long-term Debt, Maturities, 2016 | 363 | 370 | |
| Long-term Debt, Maturities, Thereafter | 2,028 | 2,066 | |
| Long-term Debt, Total | $ 3,631 | $ 3,700 | $ 9,100 |
Promotional Allowances
| Promotional Allowances | 6 Months Ended |
|---|---|
| Jun. 30, 2012 | |
| 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 cost 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 consolidated balance sheets. The expiration of unused points results in a reduction of the liability. As of June 30, 2012, the outstanding balance of this liability was $1.0 million.
Promotional allowances presented in the condensed consolidated statements of earnings include the following: |
Promotional Allowances (Tables)
| Promotional Allowances (Tables) | 6 Months Ended |
|---|---|
| Jun. 30, 2012 | |
| Promotional Allowances [Abstract] | |
| Schedule Of Promotional Allowances |
Promotional Allowances (Details)
| Promotional Allowances (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
|---|---|---|---|---|
| Jun. 30, 2012 | Jun. 30, 2011 | Jun. 30, 2012 | Jun. 30, 2011 | |
| Promotional Allowances [Line Items] | ||||
| Total Promotional Allowances | $ 2,156,000 | $ 2,071,000 | $ 4,110,000 | $ 3,959,000 |
| Outstanding Balance Of Promotional Allowance Liability | 1,000,000 | 1,000,000 | ||
| Hotel, Bowling, Food and Beverage [Member] | ||||
| Promotional Allowances [Line Items] | ||||
| Total Promotional Allowances | 984,000 | 909,000 | 1,898,000 | 1,741,000 |
| Coupons [Member] | ||||
| Promotional Allowances [Line Items] | ||||
| Total Promotional Allowances | 487,000 | 502,000 | 941,000 | 947,000 |
| Player Points [Member] | ||||
| Promotional Allowances [Line Items] | ||||
| Total Promotional Allowances | $ 685,000 | $ 660,000 | $ 1,271,000 | $ 1,271,000 |
Income Taxes
| Income Taxes | 6 Months Ended |
|---|---|
| Jun. 30, 2012 | |
| Income Taxes [Abstract] | |
| 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 June 30, 2012, the Company has established a valuation allowance for its U.S. deferred tax assets of $5.2 million, a $0.9 million valuation allowance on its Calgary property and a $1.3 million valuation allowance on the Century Casinos Europe subsidiary 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 jurisdictions where the assets are located 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 are more likely than not, the Company will then reduce its valuation allowance as appropriate and credit income tax expense after considering the following factors:
· The level of historical taxable income and projections for future taxable income in the jurisdictions where the assets are located 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 · Tax planning strategies.
The income tax provisions are based on estimated full-year earnings for financial reporting purposes adjusted for permanent differences. The Company’s provision for income taxes from operations consists of the following:
The Company’s income tax expense by jurisdiction is summarized in the table below:
The US income tax rate has increased significantly due to a one-time withholding tax payment of $0.1 million related to a Canadian intercompany payable.
|
Income Taxes (Tables)
| Income Taxes (Tables) | 6 Months Ended |
|---|---|
| Jun. 30, 2012 | |
| Income Taxes [Abstract] | |
| Provision For Income Taxes From Operations | |
| Income Tax Expense By Jurisdiction |
Income Taxes (Narrative) (Details)
| Income Taxes (Narrative) (Details) (USD $) In Millions, unless otherwise specified | 6 Months Ended |
|---|---|
| Jun. 30, 2012 | |
| Income Taxes [Line Items] | |
| Withholding tax payment relating to Canadian intercompany payable | $ 0.1 |
| United States [Member] | |
| Income Taxes [Line Items] | |
| Valuation allowance | 5.2 |
| Calgary [Member] | |
| Income Taxes [Line Items] | |
| Valuation allowance | 0.9 |
| Europe Casino [Member] | |
| Income Taxes [Line Items] | |
| Valuation allowance | $ 1.3 |
Income Taxes (Provision For Income Taxes From Operations) (Details)
| Income Taxes (Provision For Income Taxes From Operations) (Details) (USD $) In Thousands, unless otherwise specified | 3 Months Ended | 6 Months Ended | ||
|---|---|---|---|---|
| Jun. 30, 2012 | Jun. 30, 2011 | Jun. 30, 2012 | Jun. 30, 2011 | |
| Income Taxes [Abstract] | ||||
| U.S. Federal - Current | $ 122 | $ 52 | ||
| U.S. Federal - Deferred | 0 | 0 | ||
| Provision for U.S. federal income taxes | 122 | 52 | ||
| Foreign - Current | 366 | 307 | ||
| Foreign - Deferred | 1 | 119 | ||
| Provision for foreign income taxes | 367 | 426 | ||
| Total provision for income taxes | $ 197 | $ 255 | $ 489 | $ 478 |
Income Taxes (Income Tax Expense By Jurisdiction) (Details)
| Income Taxes (Income Tax Expense By Jurisdiction) (Details) (USD $) In Thousands, unless otherwise specified | 3 Months Ended | 6 Months Ended | ||
|---|---|---|---|---|
| Jun. 30, 2012 | Jun. 30, 2011 | Jun. 30, 2012 | Jun. 30, 2011 | |
| Income Taxes [Line Items] | ||||
| Pre-tax income (loss) | $ 1,345 | $ 899 | $ 2,770 | $ 1,486 |
| Income tax | 197 | 255 | 489 | 478 |
| Effective tax rate | 17.70% | 32.20% | ||
| Canada [Member] | ||||
| Income Taxes [Line Items] | ||||
| Pre-tax income (loss) | 1,563 | 1,258 | ||
| Income tax | 361 | 403 | ||
| Effective tax rate | 23.10% | 32.00% | ||
| United States [Member] | ||||
| Income Taxes [Line Items] | ||||
| Pre-tax income (loss) | 144 | (1,056) | ||
| Income tax | 122 | 52 | ||
| Effective tax rate | 85.10% | (4.90%) | ||
| Mauritius [Member] | ||||
| Income Taxes [Line Items] | ||||
| Pre-tax income (loss) | 147 | 1,133 | ||
| Income tax | 4 | 22 | ||
| Effective tax rate | 3.00% | 1.90% | ||
| Austria [Member] | ||||
| Income Taxes [Line Items] | ||||
| Pre-tax income (loss) | 539 | (222) | ||
| Income tax | 1 | 1 | ||
| Effective tax rate | 0.20% | (0.50%) | ||
| Poland [Member] | ||||
| Income Taxes [Line Items] | ||||
| Pre-tax income (loss) | 377 | 373 | ||
| Income tax | ||||
| Effective tax rate | ||||
Earnings Per Share
| Earnings Per Share | 6 Months Ended |
|---|---|
| Jun. 30, 2012 | |
| Earnings Per Share [Abstract] | |
| 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 and the assumed conversion of other convertible securities (using the “if converted” method) at the beginning of the year, or for the period outstanding during the year for current year issuances. Weighted average shares outstanding for the three and six months ended June 30, 2012 and 2011 were as follows:
The following shares of restricted stock and stock options are anti-dilutive and have not been included in the weighted average shares outstanding calculation: |
Earnings Per Share (Tables)
| Earnings Per Share (Tables) | 6 Months Ended |
|---|---|
| Jun. 30, 2012 | |
| Earnings Per Share [Abstract] | |
| Schedule Of Weighted Average Shares Outstanding | |
| Anti-Dilutive Stock Options Not Included In The Calculation Of Weighted Average Shares Outstanding |
Earnings Per Share (Schedule Of Weighted Average Shares Outstanding) (Details)
| Earnings Per Share (Schedule Of Weighted Average Shares Outstanding) (Details) | 3 Months Ended | 6 Months Ended | ||
|---|---|---|---|---|
| Jun. 30, 2012 | Jun. 30, 2011 | Jun. 30, 2012 | Jun. 30, 2011 | |
| Earnings Per Share [Abstract] | ||||
| Weighted average common shares, basic | 23,890,405 | 23,717,165 | 23,883,919 | 23,714,215 |
| Dilutive effect of stock options | 169,917 | 308,930 | 170,985 | 301,732 |
| Weighted average common shares, diluted | 24,060,322 | 24,026,095 | 24,054,904 | 24,015,947 |
Earnings Per Share (Anti-Dilutive Stock Options Not Included In The Calculation Of Weighted Average Shares Outstanding) (Details)
| Earnings Per Share (Anti-Dilutive Stock Options Not Included In The Calculation Of Weighted Average Shares Outstanding) (Details) | 3 Months Ended | 6 Months Ended | ||
|---|---|---|---|---|
| Jun. 30, 2012 | Jun. 30, 2011 | Jun. 30, 2012 | Jun. 30, 2011 | |
| Unvested Restricted Stock [Member] | ||||
| Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
| Anti-dilutive shares excluded from computation of earnings per share | 160,000 | 160,000 | ||
| Stock Options [Member] | ||||
| Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
| Anti-dilutive shares excluded from computation of earnings per share | 886,710 | 886,710 | 886,710 | 886,710 |
Segment Information
| Segment Information | 6 Months Ended | |||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Jun. 30, 2012 | ||||||||||||||||||||||||||||||||||||||||
| Segment Information [Abstract] | ||||||||||||||||||||||||||||||||||||||||
| Segment Information |
The following summary provides information concerning amounts attributable to the Company’s principal geographic areas:
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Segment Information (Tables)
| Segment Information (Tables) | 6 Months Ended |
|---|---|
| Jun. 30, 2012 | |
| Segment Information [Abstract] | |
| Schedule of Long-Lived Assets, by Geographical Areas | |
| Schedule of Revenue from External Customers, by Geographical Areas |
Segment Information (Schedule of Long-Lived Assets, by Geographical Areas) (Details)
| Segment Information (Schedule of Long-Lived Assets, by Geographical Areas) (Details) (USD $) In Thousands, unless otherwise specified | Jun. 30, 2012 | Dec. 31, 2011 |
|---|---|---|
| Segment Reporting Information [Line Items] | ||
| Long Lived Assets | $ 109,428 | $ 109,441 |
| United States [Member] | ||
| Segment Reporting Information [Line Items] | ||
| Long Lived Assets | 55,661 | 56,294 |
| Canada [Member] | ||
| Segment Reporting Information [Line Items] | ||
| Long Lived Assets | 48,771 | 48,423 |
| Europe [Member] | ||
| Segment Reporting Information [Line Items] | ||
| Long Lived Assets | 3,647 | 3,228 |
| International Waters [Member] | ||
| Segment Reporting Information [Line Items] | ||
| Long Lived Assets | 1,349 | 1,496 |
| International [Member] | ||
| Segment Reporting Information [Line Items] | ||
| Long Lived Assets | $ 53,767 | $ 53,147 |
Segment Information (Schedule of Revenue from External Customers Long-Lived Assets, by Geographical Areas) (Details)
| Segment Information (Schedule of Revenue from External Customers Long-Lived Assets, by Geographical Areas) (Details) (USD $) In Thousands, unless otherwise specified | 3 Months Ended | 6 Months Ended | ||
|---|---|---|---|---|
| Jun. 30, 2012 | Jun. 30, 2011 | Jun. 30, 2012 | Jun. 30, 2011 | |
| Segment Reporting Information [Line Items] | ||||
| Net Operating Revenue | $ 17,791 | $ 18,002 | $ 35,360 | $ 35,117 |
| United States [Member] | ||||
| Segment Reporting Information [Line Items] | ||||
| Net Operating Revenue | 7,731 | 7,731 | 15,119 | 14,969 |
| Canada [Member] | ||||
| Segment Reporting Information [Line Items] | ||||
| Net Operating Revenue | 8,404 | 8,652 | 16,947 | 16,994 |
| International Waters [Member] | ||||
| Segment Reporting Information [Line Items] | ||||
| Net Operating Revenue | 1,578 | 1,509 | 3,138 | 2,931 |
| Aruba [Member] | ||||
| Segment Reporting Information [Line Items] | ||||
| Net Operating Revenue | 78 | 110 | 156 | 223 |
| International [Member] | ||||
| Segment Reporting Information [Line Items] | ||||
| Net Operating Revenue | $ 10,060 | $ 10,271 | $ 20,241 | $ 20,148 |