Century Casinos, Inc. Announces Fourth Quarter 2018 Results

Colorado Springs, Colorado – March 11, 2019 – Century Casinos, Inc. (Nasdaq Capital Market®: CNTY) today announced its financial results for the three months and year ended December 31, 2018.  

Fourth Quarter 2018 Highlights*

 

·

 

Net operating revenue was $45.1 million, an increase of 15% from the three months ended December 31, 2017. 

 

·

 

Earnings from operations were $2.0 million, an increase of 16% from the three months ended December 31, 2017.

 

·

 

Net earnings attributable to Century Casinos, Inc. shareholders were $0.5 million, an increase of 110% from the three months ended December 31, 2017. 

 

·

 

Adjusted EBITDA** was $5.8 million, an increase of 7% from the three months ended December 31, 2017. 

 

·

 

Basic and diluted earnings per share were $0.02, an increase of 110% from the three months ended December 31, 2017.  



2018 Highlights*

 

·

 

Net operating revenue was $168.9 million, an increase of 10% from the year ended December 31, 2017.

 

·

 

Earnings from operations were $9.5 million, a decrease of 35% from the year ended December 31, 2017.

 

·

 

Net earnings attributable to Century Casinos, Inc. shareholders were $3.4 million, a decrease of 46% from the year ended December 31, 2017.

 

·

 

Adjusted EBITDA** was $23.4 million, a decrease of 10% from the year ended December 31, 2017.

 

·

 

Basic earnings per share were $0.12, a decrease of 52% from the year ended December 31, 2017.

 

·

 

Diluted earnings per share were $0.11, a decrease of 54% from the year ended December 31, 2017.

 

·

 

Book value per share*** at December 31, 2018 was $6.00.



 

 

* Amounts presented are rounded. As such, rounding differences could occur in period over period changes and percentages reported.

** Adjusted EBITDA and Adjusted EBITDA margin are Non-GAAP financial measures. See discussion and reconciliation of Non-GAAP financial measures in Supplemental Information below.

*** The Company defines book value per share as total Century Casinos, Inc. shareholders’ equity divided by outstanding common shares.


 

 

The consolidated results for the three months and year ended December 31, 2018 and 2017 are as follows:







 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



For the three months

 

 

For the year

Amounts in thousands, except per share data

ended December 31,

 

 

ended December 31,

Consolidated Results:

 

 

2018

 

 

2017

 

% Change

 

 

2018

 

 

2017

 

% Change

Net Operating Revenue

 

$

45,106 

 

$

39,293 

 

15% 

 

$

168,938 

 

$

154,069 

 

10% 

Earnings from Operations

 

 

1,976 

 

 

1,706 

 

16% 

 

 

9,459 

 

 

14,615 

 

(35%)

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

 

$

506 

 

$

(5,334)

 

110% 

 

$

3,394 

 

$

6,259 

 

(46%)



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA**

 

$

5,801 

 

$

5,408 

 

7% 

 

$

23,377 

 

$

26,086 

 

(10%)

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings (Loss) Per Share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.02 

 

$

(0.20)

 

110% 

 

$

0.12 

 

$

0.25 

 

(52%)

Diluted

 

$

0.02 

 

$

(0.19)

 

111% 

 

$

0.11 

 

$

0.24 

 

(54%)



The Tax Cuts and Jobs Act (the “Tax Act”), enacted on December 22, 2017, increased the Company’s income tax expense by $5.4 million during the fourth quarter of 2017 due to the tax law changes that were effective for the 2017 tax year. The increased income tax expense increased net loss attributable to Century Casinos, Inc. shareholders for the fourth quarter of 2017 and decreased net earnings attributable to Century Casinos, Inc. shareholders for the year ended December 31, 2017. See Note 11 to the Company’s Consolidated Financial Statements included in Part II, Item 8, “Financial Statements and Supplementary Data”, of the Company’s Annual Report on Form 10-K for the year ended December 31, 2018 for a discussion of the impact of the Tax Act.



“This quarter we continued to see revenue growth in each of our segments and ended the year growing revenue by 10%. We are pleased with this growth, especially with the longer-than-expected casino closures in Poland due to licensing delays, which we estimate negatively impacted net operating revenue by $9.8 million,” Erwin Haitzmann and Peter Hoetzinger, Co-Chief Executive Officers of Century Casinos remarked. “We are excited for the upcoming year with the opening of Century Mile Racetrack and Casino on April 1st and a  Grand Opening celebration planned for April 28th, the first day of live horse racing,”  Messrs. Haitzmann and Hoetzinger concluded. 



* Amounts presented are rounded. As such, rounding differences could occur in period over period changes and percentages reported.

** Adjusted EBITDA and Adjusted EBITDA margin are Non-GAAP financial measures. See discussion and reconciliation of Non-GAAP financial measures in Supplemental Information below.

2/15

 


Reportable Segment  Results*

The table below shows the Company’s operating segments that are included in each of the Company’s reportable segments as of December 31, 2018:





 

Reportable Segment

Operating Segment

Canada

Century Casino & Hotel - Edmonton

Canada

Century Casino St. Albert

Canada

Century Casino Calgary

Canada

Century Downs Racetrack and Casino

Canada

Century Bets!

Canada

Century Mile Racetrack and Casino

United States

Century Casino & Hotel – Central City

United States

Century Casino & Hotel – Cripple Creek

Poland

Casinos Poland

Corporate and Other

Cruise Ships & Other

Corporate and Other

Century Casino Bath

Corporate and Other

Corporate Other

The Company’s net operating revenue increased by $5.8 million, or 15%, and by $14.9 million, or 10%, for the three months and year ended December 31, 2018,  compared to the three months and year ended December 31, 2017.  Following is a summary of the changes in net operating revenue by reportable segment for the three months and year ended December 31, 2018,  compared to the three months and year ended December 31, 2017:





 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

Net Operating Revenue



 

For the three months

 

 

 

 

 

 

For the year

 

 

 

 

 



 

ended December 31,

 

 

 

 

 

 

ended December 31,

 

 

 

 

 

Amounts in thousands

 

2018

 

2017

 

$ Change

 

% Change

 

2018

 

2017

 

$ Change

 

% Change

Canada

 

$

15,678 

 

$

15,247 

 

$

431 

 

3% 

 

$

61,361 

 

$

57,732 

 

$

3,629 

 

6% 

United States

 

 

7,938 

 

 

7,671 

 

 

267 

 

4% 

 

 

33,483 

 

 

32,154 

 

 

1,329 

 

4% 

Poland

 

 

19,514 

 

 

15,414 

 

 

4,100 

 

27% 

 

 

68,209 

 

 

59,796 

 

 

8,413 

 

14% 

Corporate and Other

 

 

1,976 

 

 

961 

 

 

1,015 

 

106% 

 

 

5,885 

 

 

4,387 

 

 

1,498 

 

34% 

Consolidated

 

$

45,106 

 

$

39,293 

 

$

5,813 

 

15% 

 

$

168,938 

 

$

154,069 

 

$

14,869 

 

10% 



 

* Amounts presented are rounded. As such, rounding differences could occur in period over period changes and percentages reported.

** Adjusted EBITDA and Adjusted EBITDA margin are Non-GAAP financial measures. See discussion and reconciliation of Non-GAAP financial measures in Supplemental Information below.

3/15

 


The Company’s earnings from operations increased by $0.3 million, or 16%, and decreased by ($5.2) million, or (35%), for the three months and year ended December 31, 2018,  compared to the three months and year ended December 31, 2017.   Following is a summary of the changes in earnings (loss) from operations by reportable segment for the three months and year ended December 31, 2018,  compared to the three months and year ended December 31, 2017:  



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

Earnings (Loss) from Operations



 

For the three months

 

 

 

 

 

 

For the year

 

 

 

 

 



 

ended December 31,

 

 

 

 

 

 

ended December 31,

 

 

 

 

 

Amounts in thousands

 

2018

 

2017

 

$ Change

 

% Change

 

2018

 

2017

 

$ Change

 

% Change

Canada

 

$

3,675 

 

$

4,012 

 

$

(337)

 

(8%)

 

$

14,633 

 

$

14,608 

 

$

25 

 

United States

 

 

1,033 

 

 

1,041 

 

 

(8)

 

(1%)

 

 

5,882 

 

 

5,599 

 

 

283 

 

5% 

Poland

 

 

460 

 

 

(648)

 

 

1,108 

 

171% 

 

 

145 

 

 

2,587 

 

 

(2,442)

 

(94%)

Corporate and Other

 

 

(3,192)

 

 

(2,699)

 

 

(493)

 

(18%)

 

 

(11,201)

 

 

(8,179)

 

 

(3,022)

 

(37%)

Consolidated

 

$

1,976 

 

$

1,706 

 

$

270 

 

16% 

 

$

9,459 

 

$

14,615 

 

$

(5,156)

 

(35%)



Net earnings (loss) attributable to Century Casinos, Inc. shareholders increased by $5.8 million, or 110%, and decreased by ($2.9) million, or (46%), for the three months and year ended December 31, 2018,  compared to the three months and year ended December 31, 2017.  Following is a summary of the changes in net earnings (loss) attributable to Century Casinos, Inc. shareholders by reportable segment for the three months and year ended December 31, 2018,  compared to the three months and year ended December 31, 2017:  





 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

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



 

For the three months

 

 

 

 

 

 

For the year

 

 

 

 

 



 

ended December 31,

 

 

 

 

 

 

ended December 31,

 

 

 

 

 

Amounts in thousands

 

2018

 

2017

 

$ Change

 

% Change

 

2018

 

2017

 

$ Change

 

% Change

Canada

 

$

2,077 

 

$

1,751 

 

$

326 

 

19% 

 

$

7,715 

 

$

7,681 

 

$

34 

 

United States

 

 

767 

 

 

646 

 

 

121 

 

19% 

 

 

4,373 

 

 

3,469 

 

 

904 

 

26% 

Poland

 

 

179 

 

 

(704)

 

 

883 

 

125% 

 

 

(153)

 

 

1,280 

 

 

(1,433)

 

(112%)

Corporate and Other

 

 

(2,517)

 

 

(7,027)

 

 

4,510 

 

64% 

 

 

(8,541)

 

 

(6,171)

 

 

(2,370)

 

(38%)

Consolidated

 

$

506 

 

$

(5,334)

 

$

5,840 

 

110% 

 

$

3,394 

 

$

6,259 

 

$

(2,865)

 

(46%)



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



 

* Amounts presented are rounded. As such, rounding differences could occur in period over period changes and percentages reported.

** Adjusted EBITDA and Adjusted EBITDA margin are Non-GAAP financial measures. See discussion and reconciliation of Non-GAAP financial measures in Supplemental Information below.

4/15

 


 

The Company’s Adjusted EBITDA** increased by $0.4 million, or 7%, and decreased by ($2.7) million, or (10%), for the three months and year ended December 31, 2018 compared to the three months and year ended December 31, 2017.  Following is a summary of the changes in Adjusted EBITDA** by reportable segment for the three months and year ended December 31, 2018 compared to the three months and year ended December 31, 2017:





 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

Adjusted EBITDA**



 

For the three months

 

 

 

 

 

 

For the year

 

 

 

 

 



 

ended December 31,

 

 

 

 

 

 

ended December 31,

 

 

 

 

 

Amounts in thousands

 

2018

 

2017

 

$ Change

 

% Change

 

2018

 

2017

 

$ Change

 

% Change

Canada

 

$

4,991 

 

$

4,930 

 

$

61 

 

1% 

 

$

19,522 

 

$

18,171 

 

$

1,351 

 

7% 

United States

 

 

1,582 

 

 

1,622 

 

 

(40)

 

(3%)

 

 

8,061 

 

 

8,005 

 

 

56 

 

1% 

Poland

 

 

1,733 

 

 

987 

 

 

746 

 

76% 

 

 

4,890 

 

 

6,406 

 

 

(1,516)

 

(24%)

Corporate and Other

 

 

(2,505)

 

 

(2,131)

 

 

(374)

 

(18%)

 

 

(9,096)

 

 

(6,496)

 

 

(2,600)

 

(40%)

Consolidated

 

$

5,801 

 

$

5,408 

 

$

393 

 

7% 

 

$

23,377 

 

$

26,086 

 

$

(2,709)

 

(10%)



 

 

 

* Amounts presented are rounded. As such, rounding differences could occur in period over period changes and percentages reported.

** Adjusted EBITDA and Adjusted EBITDA margin are Non-GAAP financial measures. See discussion and reconciliation of Non-GAAP financial measures in Supplemental Information below.

5/15

 


 

Balance Sheet and Liquidity

As of December 31, 2018, the Company had $45.6 million in cash and cash equivalents and  $59.5 million in outstanding debt on its balance sheet compared to $74.7 million in cash and cash equivalents and $56.7 million in outstanding debt at December 31, 2017.  The outstanding debt as of December 31, 2018 included $40.5 million related to the Company’s credit agreement with the Bank of Montreal,  $2.6 million of bank debt related to Casinos Poland, $2.4 million of bank debt related to Century Casino Bath,  $0.2 million related to capital leases for Century Resorts Alberta,  Century Casino Calgary, Century Casino St. Albert, Century Downs Racetrack and Casino (“CDR”) and Century Mile Racetrack and Casino, and $14.3 million related to a long-term land lease for CDR, net of $0.5 million in deferred financing costs. 



Conference Call Information

Today the Company will post a copy of its Annual Report on Form 10-K filed with the SEC for the year ended December 31, 2018 on its website at https://www.cnty.com/corporate/investor-relations/sec-filings. The Company will also post a presentation on the year end results on its website at www.cnty.com/corporate/investor-relations/presentations-and-interviews.



The Company will host its fourth quarter 2018 earnings conference call today,  Monday,  March 11th, at 8:00 am MDT; 3:00 pm CET, respectively. U.S. domestic participants should dial 1-844-244-9160. For all international participants, please use 330-931-4670 to dial-in. Participants may listen to the call live at centurycasinos.adobeconnect.com/earningsrelease or obtain a recording of the call on the Company’s website until March 31, 2019 at https://www.cnty.com/corporate/investor-relations/sec-filings.

 

 

6/15

 


 

 

CENTURY CASINOS, INC. AND SUBSIDIARIES

FINANCIAL INFORMATION – US GAAP BASIS 



Condensed Consolidated Statements of Earnings (Loss)





 

 

 

 

 

 

 

 

 

 

 

 

   

For the three months

For the year



ended December 31,

ended December 31,

Amounts in thousands, except for per share information

 

2018

 

2017

 

2018

 

2017

Operating revenue:

 

 

 

 

 

 

 

 

 

 

 

 

Net operating revenue

 

$

45,106 

 

$

39,293 

 

$

168,938 

 

$

154,069 

Operating costs and expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Total operating costs and expenses

 

 

43,152 

 

 

37,587 

 

 

159,502 

 

 

139,454 

Earnings from equity investment

 

 

22 

 

 

 —

 

 

23 

 

 

 —

Earnings from operations

 

 

1,976 

 

 

1,706 

 

 

9,459 

 

 

14,615 

Non-operating income (expense), net

 

 

(1,053)

 

 

(122)

 

 

(3,536)

 

 

(2,164)

Earnings before income taxes

 

 

923 

 

 

1,584 

 

 

5,923 

 

 

12,451 

Income tax provision

 

 

(133)

 

 

(6,614)

 

 

(1,917)

 

 

(4,560)

Net earnings (loss)

 

 

790 

 

 

(5,030)

 

 

4,006 

 

 

7,891 

Net earnings attributable to non-controlling interests

 

 

(284)

 

 

(304)

 

 

(612)

 

 

(1,632)

Net earnings (loss) attributable to Century Casinos, Inc. shareholders

 

$

506 

 

$

(5,334)

 

$

3,394 

 

$

6,259 



 

 

 

 

 

 

 

 

 

 

 

 

Earnings (loss) per share attributable to Century Casinos, Inc.:

 

 

 

 

 

 

 

 

 

 

 

 

 Basic

 

$

0.02 

 

$

(0.20)

 

$

0.12 

 

$

0.25 

 Diluted

 

$

0.02 

 

$

(0.19)

 

$

0.11 

 

$

0.24 



 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares

 

 

 

 

 

 

 

 

 

 

 

 

 Basic

 

 

29,439 

 

 

26,863 

 

 

29,401 

 

 

25,068 

 Diluted

 

 

29,861 

 

 

27,479 

 

 

29,962 

 

 

25,559 



 

7/15

 


 

CENTURY CASINOS, INC. AND SUBSIDIARIES

FINANCIAL INFORMATION – US GAAP BASIS 





 

 

 

 

 

 

Condensed Consolidated Balance Sheets

 

 

 

 

 

 

(Amounts in thousands)

 

 

 

 

 

 



 

December 31,

 

December 31,



 

2018

 

2017

Assets

 

 

 

 

 

 

Current assets

 

$

54,974 

 

$

84,321 

Property and equipment, net

 

 

187,017 

 

 

152,778 

Other assets

 

 

36,834 

 

 

37,777 

Total assets

 

$

278,825 

 

$

274,876 



 

 

 

 

 

 

Liabilities and Equity

 

 

 

 

 

 

Current liabilities

 

$

50,020 

 

$

34,438 

Non-current liabilities

 

 

45,422 

 

 

53,120 

Century Casinos, Inc. shareholders' equity

 

 

176,321 

 

 

179,897 

Non-controlling interests

 

 

7,062 

 

 

7,421 

Total liabilities and equity

 

$

278,825 

 

$

274,876 



 

8/15

 


 

 

CENTURY CASINOS, INC. AND SUBSIDIARIES

SUPPLEMENTAL INFORMATION

Constant Currency* Results (unaudited)





 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

For the three months

 

 

 

For the year

 

 



 

ended December 31,

 

 

 

ended December 31,

 

 

Amounts in thousands

 

 

2018

 

 

2017

 

% Change

 

 

2018

 

 

2017

 

% Change

Net operating revenue as reported (GAAP)

 

$

45,106 

 

$

39,293 

 

15% 

 

$

168,938 

 

$

154,069 

 

10% 

Foreign currency impact vs. 2017

 

 

1,600 

 

 

 

 

 

 

 

(2,985)

 

 

 

 

 

Net operating revenue constant currency (non-GAAP)*

 

$

46,706 

 

$

39,293 

 

19% 

 

$

165,953 

 

$

154,069 

 

8% 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings from operations (GAAP)

 

$

1,976 

 

$

1,706 

 

16% 

 

$

9,459 

 

$

14,615 

 

(35%)

Foreign currency impact vs. 2017

 

 

151 

 

 

 

 

 

 

 

27 

 

 

 

 

 

Earnings from operations constant currency (non-GAAP)*

 

$

2,127 

 

$

1,706 

 

25% 

 

$

9,486 

 

$

14,615 

 

(35%)



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

$

506 

 

$

(5,334)

 

110% 

 

$

3,394 

 

$

6,259 

 

(46%)

Foreign currency impact vs. 2017

 

 

79 

 

 

 

 

 

 

 

90 

 

 

 

 

 

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

 

$

585 

 

$

(5,334)

 

111% 

 

$

3,484 

 

$

6,259 

 

(44%)



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

Adjusted EBITDA Margins *** (unaudited)





 

 

 

 



For the three months

For the year



ended December 31,

ended December 31,



2018

2017

2018

2017

Canada

32% 32% 32% 31% 

United States

20% 21% 24% 25% 

Poland

9% 6% 7% 11% 

Corporate and Other

(127%)(222%)(155%)(148%)

Consolidated Adjusted EBITDA Margin

13% 14% 14% 17% 



 

9/15

 


 

CENTURY CASINOS, INC. AND SUBSIDIARIES

SUPPLEMENTAL INFORMATION

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





 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



For the three months ended December 31, 2018

Amounts in thousands

 

Canada

 

United States

 

Poland

 

Corporate and Other

 

Total

Net earnings (loss) attributable to Century Casinos, Inc. shareholders

 

$

2,077 

 

$

767 

 

$

179 

 

$

(2,517)

 

$

506 

Interest expense (income), net

 

 

1,084 

 

 

 

 

50 

 

 

65 

 

 

1,199 

Income taxes (benefit)

 

 

435 

 

 

266 

 

 

280 

 

 

(848)

 

 

133 

Depreciation and amortization

 

 

779 

 

 

548 

 

 

1,025 

 

 

402 

 

 

2,754 

Net earnings attributable to non-controlling interests

 

 

174 

 

 

 

 

89 

 

 

21 

 

 

284 

Non-cash stock-based compensation

 

 

 

 

 

 

 

 

255 

 

 

255 

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

 

 

(95)

 

 

 

 

(138)

 

 

94 

 

 

(139)

Loss on disposition of fixed assets

 

 

 

 

 

 

27 

 

 

23 

 

 

55 

Pre-opening expenses

 

 

533 

 

 

 

 

221 

 

 

 

 

754 

Adjusted EBITDA

 

$

4,991 

 

$

1,582 

 

$

1,733 

 

$

(2,505)

 

$

5,801 





 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



For the three months ended December 31, 2017

Amounts in thousands

 

Canada

 

United States

 

Poland

 

Corporate and Other

 

Total

Net earnings (loss) attributable to Century Casinos, Inc. shareholders

 

$

1,751 

 

$

646 

 

$

(704)

 

$

(7,027)

 

$

(5,334)

Interest expense (income), net

 

 

942 

 

 

 

 

34 

 

 

(4)

 

 

972 

Income taxes

 

 

1,308 

 

 

395 

 

 

510 

 

 

4,401 

 

 

6,614 

Depreciation and amortization

 

 

898 

 

 

581 

 

 

1,045 

 

 

91 

 

 

2,615 

Net earnings (loss) attributable to non-controlling interests

 

 

655 

 

 

 

 

(351)

 

 

 

 

304 

Non-cash stock-based compensation

 

 

 

 

 

 

 

 

250 

 

 

250 

Gain on foreign currency transactions and cost recovery income

 

 

(644)

 

 

 

 

(137)

 

 

(26)

 

 

(807)

Loss on disposition of fixed assets

 

 

 

 

 

 

278 

 

 

 

 

282 

Acquisition costs

 

 

 

 

 

 

 

 

 

 

Pre-opening expenses

 

 

16 

 

 

 

 

312 

 

 

178 

 

 

506 

Adjusted EBITDA

 

$

4,930 

 

$

1,622 

 

$

987 

 

$

(2,131)

 

$

5,408 



 

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For the Year ended December 31, 2018

Amounts in thousands

 

Canada

 

United States

 

Poland

 

Corporate and Other

 

Total

Net earnings (loss) attributable to Century Casinos, Inc. shareholders

 

$

7,715 

 

$

4,373 

 

$

(153)

 

$

(8,541)

 

$

3,394 

Interest expense (income), net

 

 

3,895 

 

 

 

 

206 

 

 

12 

 

 

4,114 

Income taxes (benefit)

 

 

2,536 

 

 

1,508 

 

 

595 

 

 

(2,722)

 

 

1,917 

Depreciation and amortization

 

 

3,211 

 

 

2,178 

 

 

3,065 

 

 

945 

 

 

9,399 

Net earnings (loss) attributable to non-controlling interests

 

 

722 

 

 

 

 

(75)

 

 

(35)

 

 

612 

Non-cash stock-based compensation

 

 

 

 

 

 

 

 

868 

 

 

868 

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

 

 

(235)

 

 

 

 

(428)

 

 

 

 

(661)

Loss on disposition of fixed assets

 

 

10 

 

 

 

 

1,054 

 

 

25 

 

 

1,090 

Pre-opening expenses

 

 

1,668 

 

 

 

 

626 

 

 

350 

 

 

2,644 

Adjusted EBITDA

 

$

19,522 

 

$

8,061 

 

$

4,890 

 

$

(9,096)

 

$

23,377 





 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



For the Year ended December 31, 2017

Amounts in thousands

 

Canada

 

United States

 

Poland

 

Corporate and Other

 

Total

Net earnings (loss) attributable to Century Casinos, Inc. shareholders

 

$

7,681 

 

$

3,469 

 

$

1,280 

 

$

(6,171)

 

$

6,259 

Interest expense (income), net

 

 

3,487 

 

 

 

 

105 

 

 

(25)

 

 

3,569 

Income taxes (benefit)

 

 

3,008 

 

 

2,128 

 

 

1,388 

 

 

(1,964)

 

 

4,560 

Depreciation and amortization

 

 

3,427 

 

 

2,405 

 

 

2,747 

 

 

366 

 

 

8,945 

Net earnings attributable to non-controlling interests

 

 

996 

 

 

 

 

636 

 

 

 

 

1,632 

Non-cash stock-based compensation

 

 

 

 

 

 

 

 

669 

 

 

669 

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

 

 

(564)

 

 

 

 

(822)

 

 

24 

 

 

(1,362)

Loss on disposition of fixed assets

 

 

83 

 

 

 

 

535 

 

 

 

 

622 

Acquisition costs

 

 

28 

 

 

 

 

 

 

327 

 

 

355 

Pre-opening expenses

 

 

25 

 

 

 

 

537 

 

 

275 

 

 

837 

Adjusted EBITDA

 

$

18,171 

 

$

8,005 

 

$

6,406 

 

$

(6,496)

 

$

26,086 



 

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CENTURY CASINOS, INC. AND SUBSIDIARIES

SUPPLEMENTAL INFORMATION

*  The impact of foreign exchange rates is highly variable and difficult to predict.  The Company uses a Constant Currency basis to show the impact from foreign exchange rates on current period financial information compared to prior period financial information using the prior period’s foreign exchange rates. In order to properly understand the underlying business trends and performance of the Company’s ongoing operations, management believes that investors may find it useful to consider the impact of excluding changes in foreign exchange rates from the Company’s net operating revenue,  earnings from operations and net earnings (loss) attributable to Century Casinos, Inc. shareholders. Constant currency results are calculated by dividing the current quarter or year to date local currency segment results, excluding the local currency impact of foreign currency gains and losses, by the prior year’s average exchange rate for the quarter or year to date and comparing them to actual U.S. dollar results for the prior quarter or year to date. The average exchange rates for the current and prior year are reported in Note 2 to the Consolidated Financial Statements included in Part II, Item 8, “Financial Statements and Supplementary Data” of the Company’s Annual Report on Form 10-K. The average exchange rates for the three months ended December 31, 2018 and 2017 are presented below.







 

 

 

 

 

 

 



 

 

 

 

 

 

 



 

For the three months

 

 

 



 

ended December 31,

 

 

 

Average Rates

 

2018

 

2017

 

% Change

 

Canadian dollar (CAD)

 

1.3218 

 

1.2708 

 

(4.0%)

 

Euros (EUR)

 

0.8763 

 

0.8491 

 

(3.2%)

 

Polish zloty (PLN)

 

3.7668 

 

3.5922 

 

(4.9%)

 

British pound (GBP)

 

0.7773 

 

0.7534 

 

(3.2%)

 

Source: Pacific Exchange Rate Service

 

 

 

 

 

 

 



 

 

 

 

 

 

 



Constant currency information is not a measure of financial performance under generally accepted accounting principles in the United States of America (GAAP) and should not be considered a substitute for net operating revenue, earnings from operations or net earnings (loss) attributable to Century Casinos, Inc. shareholders as determined in accordance with GAAP.





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



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



 

13/15

 


 

CENTURY CASINOS, INC. AND SUBSIDIARIES

SUPPLEMENTAL INFORMATION

About Century Casinos, Inc.:

Century Casinos, Inc. is an international casino entertainment company that operates worldwide. The Company owns and operates Century Casino & Hotels in Cripple Creek and Central City, Colorado, and in Edmonton, Alberta, Canada and the Century Casino in Calgary and St. Albert,  Alberta, Canada and in Bath, England.  Through its Austrian subsidiary, Century Resorts Management GmbH (“CRM”), formerly Century Casinos Europe GmbH, the Company holds a 66.6% ownership interest in Casinos Poland Ltd., the owner of eight casino licenses throughout Poland, seven of which are operating. The Company, through CRM, also holds  a 75% ownership interests in CDR, which operates in the north metropolitan area of Calgary, Alberta, Canada; a 75% ownership interest in Century Bets! Inc., which operates the pari-mutuel off-track horse betting network in southern Alberta, Canada; and  a 51% ownership interest in Golden Hospitality Ltd., a company that manages a hotel and entertainment and gaming club in Vietnam. The Company operates 10 ship-based casinos under agreements with three cruise ship owners. The Company, through CRM, also owns a 7.5% interest in, and provides consulting services to, Mendoza Central Entretenimientos S.A., a company that provides gaming-related services to Casino de Mendoza in Mendoza, Argentina.  The Company is also developing Century Mile Racetrack and Casino in Edmonton, Alberta, Canada. The Company continues to pursue other international projects in various stages of development.

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

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



 

14/15

 


 

CENTURY CASINOS, INC. AND SUBSIDIARIES

SUPPLEMENTAL INFORMATION

This release may contain “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. These statements are based on the beliefs and assumptions of the management of Century Casinos based on information currently available to management. Such forward-looking statements include, but are not limited to, statements regarding future results of operations, operating efficiencies, synergies and operational performance, the prospects for and timing and costs of new projects, projects in development and other opportunities, including the Century Mile, Bermuda and Vietnam projects, debt repayment, investments in joint ventures, outcomes of legal proceedings, changes in our tax provisions or exposure to additional income tax liabilities, and plans for our casinos and our Company. Such forward-looking statements are subject to risks, uncertainties and other factors that could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. Important factors that could cause actual results to differ materially from the forward-looking statements include, among others, the risks described in the section entitled “Risk Factors” under Item 1A in our Annual Report on Form 10-K for the year ended December 31, 2018 and in subsequent periodic and current SEC filings we may make. Century Casinos disclaims any obligation to revise or update any forward-looking statement that may be made from time to time by it or on its behalf.



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