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11.03.2016

Century Casinos, Inc. Announces Fourth Quarter 2015 Results

Colorado Springs, Colorado – March 11, 2016 – Century Casinos, Inc. (NASDAQ Capital Market®: CNTY) today announced its financial results for the three months and year ended December 31, 2015.

 

2015 Highlights*

·       Net operating revenue was $134.4 million, a 12% increase from the year ended December 31, 2014.

·       Adjusted EBITDA** was $23.5 million, an 83% increase from the year ended December 31, 2014.

·       Net earnings attributable to Century Casinos, Inc. shareholders were $11.9 million, an 867% increase from the year ended December 31, 2014.

·       Earnings per share were $0.49.

  • Book value per share*** at December 31, 2015 was $5.01.

 

Fourth Quarter 2015 Highlights*

  • Net operating revenue was $32.6 million, a 4% increase from the three months ended December 31, 2014.
  • Adjusted EBITDA** was $5.2 million, a 31% increase from the three months ended December 31, 2014.
  • Net earnings attributable to Century Casinos, Inc. shareholders were $0.7 million, a 421% increase from the three months ended December 31, 2014.
  • Earnings per share were $0.03.  

 

 

The period over period increases in net operating revenue, Adjusted EBITDA** and net earnings attributable to Century Casinos, Inc. shareholders relate to the operating results of Century Downs Racetrack and Casino (“CDR”) and Century Bets! Inc. (“CBS”). CDR opened its casino on April 1, 2015 and held its first horse race on April 25, 2015. CBS began operating the pari-mutuel off-track betting network in southern Alberta on May 4, 2015. The Company owns 75% of each of CDR and CBS through one of its subsidiaries.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amounts in thousands, except per share data

For the Three Months                                                                       Ended December 31, 

For the Year                                                                                        Ended December 31, 

Consolidated Results:

 

 

2015

 

 

2014

 

 

% Change

 

 

2015

 

 

2014

 

 

% Change

Net operating revenue

 

$

32,627

 

$

31,259

 

 

4%

 

$

134,431

 

$

120,048

 

 

12%

Earnings from operations

 

 

2,472

 

 

639

 

 

287%

 

 

16,493

 

 

2,657

 

 

521%

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

 

 

739

 

 

(230)

 

 

421%

 

 

11,907

 

 

1,232

 

 

866%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA**

 

$

5,203

 

$

3,975

 

 

31%

 

$

23,495

 

$

12,850

 

 

83%

   

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.03

 

$

(0.01)

 

 

400%

 

$

0.49

 

$

0.05

 

 

880%

Diluted

 

$

0.03

 

$

(0.01)

 

 

400%

 

$

0.49

 

$

0.05

 

 

880%

Weighted average common shares: 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic 

 

 

24,425

 

 

24,381

 

 

 

 

 

24,429

 

 

24,381

 

 

 

Diluted

 

 

24,639

 

 

24,417

 

 

 

 

 

24,469

 

 

24,419

 

 

 

 

“Our company had an exceptional 2015, as all of our properties increased both net operating revenue and Adjusted EBITDA year-over-year, in local currency. Casinos Poland more than doubled its Adjusted EBITDA and grew its Adjusted EBITDA margin from 7.3 percent to 13.5 percent. Century Downs and Century Bets successfully opened for business in the second quarter and have contributed significantly to our top and bottom lines every quarter since,” Erwin Haitzmann and Peter Hoetzinger, Co Chief Executive Officers of Century Casinos, said. “Our balance sheet is in great shape, as net debt decreased from $13.2 million at the end of 2014 to $7.2 million at the end of 2015,” they continued.

 

Three Months and Year Ended December 31, 2015 Results*

The table below shows the Company’s operating segments that are included in each of the Company’s reportable segments:

 

Reportable Segment

Operating Segment

Canada

Century Casino & Hotel - Edmonton

Canada

Century Casino Calgary

Canada

Century Downs Racetrack and Casino

Canada

Century Bets!

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

Corporate Other

 

Net operating revenue increased by $1.4 million, or 4%, and $14.4 million, or 12%, for the three months and year ended December 31, 2015 compared to the three months and year ended December 31, 2014. Following is a summary of the changes in net operating revenue by segment for the three months and year ended December 31, 2015 compared to the three months and year ended December 31, 2014:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Operating Revenue

 

For the Three Months

For the Year

 

 Ended December 31,

 Ended December 31,

 

2015/2014

2015/2014

Amounts in millions

 

 

Change

 

 

% Change

 

 

Change

 

 

% Change

Canada

 

$

2.9

 

 

32%

 

$

11.3

 

 

33%

United States

 

 

0.2

 

 

4%

 

 

1.7

 

 

7%

Poland

 

 

(0.8)

 

 

(5%)

 

 

1.0

 

 

2%

Corporate and Other

 

 

(1.0)

 

 

(54%)

 

 

0.3

 

 

4%

Total

 

$

1.4

 

 

4%

 

$

14.4

 

 

12%

 

 

 

Earnings from operations increased by $1.8 million, or 287%, and $13.8 million, or 521%, for the three months and year ended December 31, 2015 compared to the three months and year ended December 31, 2014.  Following is a summary of the changes in earnings from operations by segment for the three months and year ended December 31, 2015 compared to the three months and year ended December 31, 2014:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings from Operations

 

For the Three Months

For the Year

 

 Ended December 31,

 Ended December 31,

 

2015/2014

2015/2014

Amounts in millions

 

 

Change

 

 

% Change

 

 

Change

 

 

% Change

Canada

 

$

0.4

 

 

17%

 

$

4.1

 

 

49%

United States

 

 

0.1

 

 

45%

 

 

1.8

 

 

86%

Poland

 

 

0.0

 

 

(2%)

 

 

4.3

 

 

2642%

Corporate and Other

 

 

1.3

 

 

43%

 

 

3.6

 

 

47%

Total

 

$

1.8

 

 

287%

 

$

13.8

 

 

521%

 

Net earnings (loss) attributable to Century Casinos, Inc. shareholders increased by $1.0 million, or 421%, and $10.7 million, or 867%, for the three months and year ended December 31, 2015 compared to the three months and year ended December 31, 2014. Following is a summary of the changes in net earnings (loss) attributable to Century Casinos, Inc. shareholders by segment for the three months and year ended December 31, 2015 compared to the three months and year ended December 31, 2014:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

For the Three Months

For the Year

 

 Ended December 31,

 Ended December 31,

 

2015/2014

2015/2014

Amounts in millions

 

 

Change

 

 

% Change

 

 

Change

 

 

% Change

Canada

 

$

(0.5)

 

 

(26%)

 

$

1.4

 

 

21%

United States

 

 

0.1

 

 

44%

 

 

1.1

 

 

86%

Poland

 

 

0.6

 

 

125%

 

 

3.0

 

 

2688%

Corporate and Other

 

 

0.8

 

 

29%

 

 

5.2

 

 

81%

Total

 

$

1.0

 

 

421%

 

$

10.7

 

 

867%

 

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.

 

Segment Results (in thousands)*

The following are segment results for net operating revenue and Adjusted EBITDA**.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Operating Revenue

 

 

 

 

Adjusted EBITDA**

 

 

 

 

 

For the Three Months

 

 

 

For the Three Months

 

 

 

 

Ended December 31,

 

 

 

 

Ended December 31,

 

 

 

 

2015

 

2014

 

% Change

 

2015

 

2014

 

% Change

Canada

 

$

11,950

 

$

9,068

 

 

32%

 

$

3,688

 

$

2,917

 

 

26%

United States

 

 

6,478

 

 

6,251

 

 

4%

 

 

1,073

 

 

973

 

 

10%

Poland

 

 

13,348

 

 

14,103

 

 

(5%)

 

 

1,667

 

 

1,781

 

 

(6%)

Corporate and Other

 

 

851

 

 

1,837

 

 

(54%)

 

 

(1,225)

 

 

(1,696)

 

 

28%

Consolidated

 

$

32,627

 

$

31,259

 

 

4%

 

$

5,203

 

$

3,975

 

 

31%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Operating Revenue

 

 

 

 

Adjusted EBITDA**

 

 

 

 

 

For the Year

 

 

 

For the Year

 

 

 

 

Ended December 31,

 

 

 

 

Ended December 31,

 

 

 

 

2015

 

2014

 

% Change

 

2015

 

2014

 

% Change

Canada

 

$

45,900

 

$

34,599

 

 

33%

 

$

15,384

 

$

10,354

 

 

49%

United States

 

 

28,438

 

 

26,707

 

 

7%

 

 

6,401

 

 

4,528

 

 

41%

Poland

 

 

52,208

 

 

51,191

 

 

2%

 

 

7,080

 

 

3,683

 

 

92%

Corporate and Other

 

 

7,885

 

 

7,551

 

 

4%

 

 

(5,370)

 

 

(5,715)

 

 

6%

Consolidated

 

$

134,431

 

$

120,048

 

 

12%

 

$

23,495

 

$

12,850

 

 

83%

 


Balance Sheet and Liquidity

As of December 31, 2015, the Company had $29.4 million in cash and cash equivalents and $36.5 million in outstanding debt on its balance sheet compared to $24.7 million in cash and cash equivalents and $37.8 million in outstanding debt at December 31, 2014. The $36.5 million in outstanding debt as of December 31, 2015 includes $20.4 million related to the Company’s Bank of Montreal credit agreement, $1.7 million related to Casinos Poland, Ltd. and $14.7 million related to a long-term land lease and capital leases of CDR, net of $0.3 million in deferred financing costs.  

 

The Company adopted Accounting Standard Update No. 2015-03, Simplifying the Presentation of Debt Issuance Costs, and, as a result, $0.4 million was reclassified from long-term assets to long-term debt in the Company’s consolidated balance sheet for the year ended December 31, 2014.

 

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, 2015 on its website at http://corporate.cnty.com/investor-relations/sec-filings. The Company will also post a presentation on the fourth quarter results on its website at http://corporate.cnty.com/investor-relations/presentations-and-interviews.

 

Century Casinos will host its fourth quarter 2015 earnings conference call today at 8:00 am MST; 4:00 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 https://centurycasinos.adobeconnect.com/earningsrelease or obtain a recording of the call on the Company’s website until March 31, 2016 at corporate.cnty.com/investor-relations/sec-filings.

(continued)

CENTURY CASINOS, INC. AND SUBSIDIARIES

FINANCIAL INFORMATION – US GAAP BASIS

 

 

Century Casinos, Inc.

Condensed Consolidated Statements of Earnings (Loss)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Three Months                                                                       Ended December 31, 

For the Year                                                                                        Ended December 31, 

Amounts in thousands, except for per share information

 

2015

 

2014

 

2015

 

2014

Operating revenue:

 

 

 

 

 

 

 

 

 

 

 

 

Net operating revenue

 

$

32,627

 

$

31,259

 

$

134,431

 

$

120,048

Operating costs and expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Total operating costs and expenses

 

 

30,155

 

 

30,620

 

 

117,938

 

 

117,391

Earnings from operations

 

 

 2,472 

 

 

 639 

 

 

 16,493 

 

 

 2,657 

Non-operating income (expense):

 

 

 

 

 

 

 

 

 

 

 

 

  Interest income

 

 

17

 

 

9

 

 

38

 

 

81

  Interest expense

 

 

 (786)

 

 

 (748)

 

 

 (3,315)

 

 

 (2,837)

  Gain on foreign currency transactions and other

 

 

 984 

 

 

 142 

 

 

 2,126 

 

 

517

Non-operating income (expense), net

 

 

 215 

 

 

 (597)

 

 

 (1,151)

 

 

 (2,239)

Earnings before income taxes

 

 

 2,687 

 

 

 42 

 

 

 15,342 

 

 

 418 

Income tax provision

 

 

 1,433 

 

 

 721 

 

 

 1,835 

 

 

 1,507 

Net earnings (loss)

 

 

 1,254 

 

 

 (679)

 

 

 13,507 

 

 

 (1,089)

Net (earnings) loss attributable to non-controlling interest

 

 

(515)

 

 

449

 

 

 (1,600)

 

 

 2,321 

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

 

$

 739 

 

$

 (230)

 

$

 11,907 

 

$

 1,232 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

  Basic

 

$

0.03

 

$

(0.01)

 

$

0.49

 

$

0.05

  Diluted

 

$

0.03

 

$

(0.01)

 

$

0.49

 

$

0.05

 

 

CENTURY CASINOS, INC. AND SUBSIDIARIES

FINANCIAL INFORMATION – US GAAP BASIS

 

 

 

 

 

 

 

 

 

Century Casinos, Inc.

 

 

 

 

 

 

Condensed Consolidated Balance Sheets

 

 

 

 

 

 

(Amounts in thousands)

 

 

 

 

 

 

 

 

December 31,

 

December 31,

 

 

2015

 

2014

Assets

 

 

 

 

 

 

Current assets

 

$

34,540

 

$

30,163

Property and equipment, net

 

 

131,582

 

 

134,627

Other assets

 

 

20,961

 

 

22,322

Total assets

 

$

187,083

 

$

187,112

 

 

 

 

 

 

 

Liabilities and Equity

 

 

 

 

 

 

Current liabilities

 

$

23,300

 

$

28,128

Non-current liabilities

 

 

36,508

 

 

36,558

Century Casinos, Inc. shareholders' equity

 

 

122,416

 

 

118,428

Non-controlling interest

 

 

4,859

 

 

3,998

Total liabilities and equity

 

$

187,083

 

$

187,112

 

 

CENTURY CASINOS, INC. AND SUBSIDIARIES

SUPPLEMENTAL INFORMATION

 

Century Casinos, Inc.

Constant Currency Results* (unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the three months ended

 

 

 

For the year ended

 

 

 

 

 

December 31,

 

 

 

December 31,

 

 

 

 

 

 

2015

 

 

2014

 

% Change

 

 

2015

 

 

2014

 

% Change

 

Net Operating Revenue as reported (GAAP)

 

$

32,627

 

$

31,259

 

4%

 

$

134,431

 

$

120,048

 

12%

 

Unfavorable foreign currency impact vs. 2014

 

 

4,108

 

 

 

 

 

 

 

11,814

 

 

 

 

 

 

Net Operating Revenue constant currency (non-GAAP)*

 

$

36,735

 

$

31,259

 

18%

 

$

146,245

 

$

120,048

 

22%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA as reported***

 

$

5,203

 

$

3,975

 

31%

 

$

23,495

 

$

12,850

 

83%

 

Unfavorable foreign currency impact vs. 2014

 

 

885

 

 

 

 

 

 

 

2,689

 

 

 

 

 

 

Adjusted EBITDA constant currency (non-GAAP)*

 

$

6,088

 

$

3,975

 

53%

 

$

26,184

 

$

12,850

 

104%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Century Casinos, Inc.

Adjusted EBITDA Margins ** by Segment (unaudited)

 

 

 

 

 

 

 

 

 

For the Three Months

For the Year

 

Ended December 31,

Ended December 31,

 

2015

2014

2015

2014

Canada

31%

32%

34%

30%

United States

17%

16%

23%

17%

Poland

12%

13%

14%

7%

Corporate and Other

(144%)

(92%)

(68%)

(76%)

Consolidated Adjusted EBITDA Margin

16%

13%

17%

11%

 

 

 

 

CENTURY CASINOS, INC. AND SUBSIDIARIES

SUPPLEMENTAL INFORMATION

 

Century Casinos, Inc.

Reconciliation of Adjusted EBITDA *** to Net Earnings (Loss) by Segment

 

Amounts in thousands

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended December 31, 2015

 

 

Canada

 

United States

 

Poland

 

Corporate and Other

 

Total

Net earnings (loss)

 

$

1,483

 

$

260

 

$

1,012

 

$

(2,016)

 

$

739

Interest expense (income), net

 

 

753

 

 

0

 

 

20

 

 

(4)

 

 

769

Income taxes

 

 

613

 

 

159

 

 

393

 

 

268

 

 

1,433

Depreciation and amortization

 

 

837

 

 

654

 

 

646

 

 

82

 

 

2,219

Non-controlling interest

 

 

9

 

 

0

 

 

506

 

 

0

 

 

515

Non-cash stock-based compensation

 

 

0

 

 

0

 

 

0

 

 

411

 

 

411

(Gain) loss on foreign currency transactions and other

 

 

(14)

 

 

0

 

 

(117)

 

 

8

 

 

(123)

Loss on disposition of fixed assets

 

 

7

 

 

0

 

 

68

 

 

26

 

 

101

Other one-time income

 

 

0

 

 

0

 

 

(861)

 

 

0

 

 

(861)

Adjusted EBITDA

 

$

3,688

 

$

1,073

 

$

1,667

 

$

(1,225)

 

$

5,203

 

 

Century Casinos, Inc.

Reconciliation of Adjusted EBITDA *** to Net Earnings (Loss) by Segment

 

Amounts in thousands

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended December 31, 2014

 

 

Canada

 

United States

 

Poland

 

Corporate and Other

 

Total

Net earnings (loss)

 

$

1,991

 

$

180

 

$

450

 

$

(2,851)

 

$

(230)

Interest expense (income), net

 

 

676

 

 

0

 

 

68

 

 

(5)

 

 

739

Income taxes (benefit)

 

 

571

 

 

110

 

 

251

 

 

(211)

 

 

721

Depreciation and amortization

 

 

477

 

 

644

 

 

697

 

 

196

 

 

2,014

Non-controlling interest

 

 

(675)

 

 

0

 

 

226

 

 

0

 

 

(449)

Non-cash stock-based compensation

 

 

0

 

 

0

 

 

0

 

 

972

 

 

972

(Gain) loss on foreign currency transactions and other

 

 

(125)

 

 

0

 

 

(22)

 

 

5

 

 

(142)

Loss on disposition of fixed assets

 

 

2

 

 

39

 

 

0

 

 

0

 

 

41

Acquisition costs

 

 

0

 

 

0

 

 

0

 

 

198

 

 

198

Other one-time expenses

 

 

0

 

 

0

 

 

111

 

 

0

 

 

111

Adjusted EBITDA

 

$

2,917

 

$

973

 

$

1,781

 

$

(1,696)

 

$

3,975

 

 

CENTURY CASINOS, INC. AND SUBSIDIARIES

SUPPLEMENTAL INFORMATION

 

Century Casinos, Inc.

Reconciliation of Adjusted EBITDA *** to Net Earnings (Loss) by Segment

 

Amounts in thousands

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Year Ended December 31, 2015

 

 

Canada

 

United States

 

Poland

 

Corporate and Other

 

Total

Net earnings (loss)

 

$

7,819

 

$

2,381

 

$

2,899

 

$

(1,192)

 

$

11,907

Interest expense (income), net

 

 

3,160

 

 

1

 

 

129

 

 

(13)

 

 

3,277

Income taxes (benefit)

 

 

2,110

 

 

1,461

 

 

1,136

 

 

(2,872)

 

 

1,835

Depreciation and amortization

 

 

2,472

 

 

2,558