Welcome to the Winners' Zone!

05.08.2016

Century Casinos, Inc. Announces Second Quarter 2016

Colorado Springs, Colorado – August 5, 2016 – Century Casinos, Inc. (NASDAQ Capital Market®: CNTY) today announced its financial results for the three and six months ended June 30, 2016.

 

Second Quarter 2016 Highlights*

  • Net operating revenue was $35.2 million, a 7% decrease from the three months ended June 30, 2015.
  • Earnings from operations were $4.5 million, a 42% decrease from the three months ended June 30, 2015.
  • Net earnings attributable to Century Casinos, Inc. shareholders were $2.2 million, a 66% decrease from the three months ended June 30, 2015.
  • Adjusted EBITDA** was $6.9 million, a 1% increase from the three months ended June 30, 2015.
  • Earnings per share were $0.09.  
  • Book value per share*** at June 30, 2016 was $5.30.

 

The period over period decreases in net operating revenue, earnings from operations and net earnings attributable to Century Casinos, Inc. shareholders primarily relate to $4.0 million paid to us in the second quarter of 2015 by Norwegian Cruise Line Holdings (“Norwegian”) for the termination of our concession agreements with subsidiaries of Norwegian. The $4.0 million was recorded on our consolidated statement of earnings in the second quarter of 2015 under operating revenue net of $0.6 million related to assets that were sold to Norwegian as part of the termination agreement.****

 

 

In June 2016, we announced that our subsidiary Century Casinos Europe GmbH (“CCE”) had entered into an agreement to acquire 100% of the issued and outstanding shares and related land of entities operating the Apex Casino (“Apex”) in suburban Edmonton, Alberta, Canada. Apex is a 34,500 square foot casino facility located on approximately seven acres of land. The casino facility includes 382 slot machines, 11 live table games, a restaurant, a bar, a lounge and a banquet facility that can accommodate up to 175 guests. Closing, which is subject to, among other things, financing for the acquisition and customary closing conditions, including the receipt of necessary regulatory and governmental approvals as well as the completion of due diligence by us, is expected to occur in the fourth quarter of 2016.

 

In June 2016, we began operating the ship-based casinos onboard the Mein Schiff 5, a new 2,500 passenger cruise ship, and the TUI Discovery, a 2,067 passenger cruise ship. Under an agreement with Diamond Cruise International Co., Ltd., we began operating the ship-based casino onboard Glory Sea, a 1,200 passenger cruise ship, in July 2016. Glory Sea, which has 40 slot machines and 16 table games, will focus on the Chinese cruise market with four-day trips between China, South Korea and Japan. Under an amended concession agreement with TUI Cruises, we also plan to operate the ship-based casino onboard Mein Schiff 6, a new 2,500 passenger cruise ship that is expected to begin operations in the third quarter of 2017.

 

 

The consolidated results for the three and six months ended June 30, 2016 and 2015 are as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Three Months

 

 

For the Six Months

Amounts in thousands, except per share data

Ended June 30,

 

 

Ended June 30,

Consolidated Results:

 

 

2016

 

 

2015

 

% Change

 

 

2016

 

 

2015

 

% Change

Net operating revenue

 

$

35,201

 

$

37,875

 

(7%)

 

$

67,731

 

$

68,279

 

(1%)

Earnings from operations

 

 

4,541

 

 

7,839

 

(42%)

 

 

7,924

 

 

9,940

 

(20%)

Net earnings attributable to Century Casinos, Inc. shareholders

 

$

2,249

 

$

6,597

 

(66%)

 

$

4,142

 

$

8,442

 

(51%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA**

 

$

6,858

 

$

6,808

 

1%

 

$

12,469

 

$

11,575

 

8%

   

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.09

 

$

0.27

 

(67%)

 

$

0.17

 

$

0.35

 

(51%)

Diluted

 

$

0.09

 

$

0.27

 

(67%)

 

$

0.17

 

$

0.35

 

(51%)

 

“The second quarter reflected strong revenue performances from our three operating segments. In local currency, Canada was up 4%, Poland was up 10% and Colorado was up 7%. We are happy about the underlying strength and stability of our geographically diverse portfolio of casino assets,” Erwin Haitzmann and Peter Hoetzinger, Co Chief Executive Officers of Century Casinos, said. “In addition, we are looking forward to closing the CAD 29.9 million Apex Casino acquisition in the fourth quarter and anticipate that it will be accretive to the Company’s earnings beginning in the fourth quarter of 2016,” they continued.

 

 

Consolidated 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

 

The Company’s net operating revenue decreased by ($2.7) million, or (7%), and by ($0.5) million, or (1%), for the three and six months ended June 30, 2016, compared to the three and six months ended June 30, 2015. Following is a summary of the changes in net operating revenue by segment for the three and six months ended June 30, 2016, compared to the three and six months ended June 30, 2015:

 

 

 

 

 

 

 

 

 

 

Net Operating Revenue

 

For the Three Months

For the Six Months

 

Ended June 30,

Ended June 30,

 

2016/2015

2016/2015

Amounts in millions

 

Change

% Change

 

Change

% Change

Canada

$

(0.1)

(1%)

$

3.7

17%

United States

 

0.5

7%

 

0.8

6%

Poland

 

0.7

5%

 

(0.6)

(2%)

Corporate and Other

 

(3.7)

(83%)

 

(4.5)

(73%)

Total

$

(2.7)

(7%)

$

(0.5)

(1%)

 

 

The Company’s earnings from operations decreased by ($3.3) million, or (42%), and by ($2.0) million, or (20%), for the three and six months ended June 30, 2016, compared to the three and six months ended June 30, 2015.  Following is a summary of the changes in earnings from operations by segment for the three and six months ended June 30, 2016, compared to the three and six months ended June 30, 2015:

 

 

 

 

 

 

 

 

 

 

 

Earnings from Operations

 

For the Three Months

For the Six Months

 

Ended June 30,

Ended June 30,

 

2016/2015

2016/2015

Amounts in millions

 

Change

% Change

 

Change

% Change

Canada

$

(0.6)

(14%)

$

0.0

0%

United States

 

0.3

24%

 

0.3

15%

Poland

 

0.2

20%

 

0.2

8%

Corporate and Other

 

(3.2)

(229%)

 

(2.5)

(360%)

Total

$

(3.3)

(42%)

$

(2.0)

(20%)

 

 

 

Net earnings (loss) attributable to Century Casinos, Inc. shareholders decreased by ($4.3) million, or (66%), and by ($4.3) million, or (51%), for the three and six months ended June 30, 2016, compared to the three and six months ended June 30, 2015. Following is a summary of the changes in net earnings (loss) attributable to Century Casinos, Inc. shareholders by segment for the three and six months ended June 30, 2016, compared to the three and six months ended June 30, 2015:

 

 

 

 

 

 

 

 

 

 

 

Net Earnings (Loss) Attributable to

 

Century Casinos, Inc. Shareholders

 

For the Three Months

For the Six Months

 

Ended June 30,

Ended June 30,

 

2016/2015

2016/2015

Amounts in millions

 

Change

% Change

 

Change

% Change

Canada

$

(0.3)

(14%)

$

(0.8)

(18%)

United States

 

0.1

16%

 

0.2

15%

Poland

 

0.1

19%

 

0.0

0%

Corporate and Other

 

(4.3)

(140%)

 

(3.7)

(245%)

Total

$

(4.3)

(66%)

$

(4.3)

(51%)

 

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, net earnings (loss) attributable to Century Casinos, Inc. shareholders and Adjusted EBITDA**.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Operating Revenue

 

 

 

Net Operating Revenue

 

 

 

 

For the Three Months

 

 

 

For the Six Months

 

 

 

 

Ended June 30,

 

 

 

Ended June 30,

 

 

 

 

2016

 

2015

 

% Change

 

2016

 

2015

 

% Change

Canada

 

$

13,167

 

$

13,309

 

(1%)

 

$

25,462

 

$

21,754

 

17%

United States

 

 

7,703

 

 

7,210

 

7%

 

 

14,784

 

 

14,003

 

6%

Poland

 

 

13,570

 

 

12,875

 

5%

 

 

25,835

 

 

26,409

 

(2%)

Corporate and Other

 

 

761

 

 

4,481

 

(83%)

 

 

1,650

 

 

6,113

 

(73%)

Consolidated

 

$

35,201

 

$

37,875

 

(7%)

 

$

67,731

 

$

68,279

 

(1%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Earnings (Loss)

 

 

 

Net Earnings (Loss)

 

 

 

 

Attributable to Century

 

 

 

Attributable to Century

 

 

 

 

Casinos, Inc. Shareholders

 

 

 

Casinos, Inc. Shareholders

 

 

 

 

For the Three Months

 

 

 

For the Six Months

 

 

 

 

Ended June 30,

 

 

 

Ended June 30,

 

 

 

 

2016

 

2015

 

% Change

 

2016

 

2015

 

% Change

Canada

 

$

1,948

 

$

2,258

 

(14%)

 

$

3,604

 

$

4,392

 

(18%)

United States

 

 

833

 

 

718

 

16%

 

 

1,377

 

 

1,194

 

15%

Poland

 

 

678

 

 

568

 

19%

 

 

1,347

 

 

1,351

 

0%

Corporate and Other

 

 

(1,210)

 

 

3,053

 

(140%)

 

 

(2,186)

 

 

1,505

 

(245%)

Consolidated

 

$

2,249

 

$

6,597

 

(66%)

 

$

4,142

 

$

8,442

 

(51%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA**

 

 

 

Adjusted EBITDA**

 

 

 

 

For the Three Months

 

 

 

For the Six Months

 

 

 

 

Ended June 30,

 

 

 

Ended June 30,

 

 

 

 

2016

 

2015

 

% Change

 

2016

 

2015

 

% Change

Canada

 

$

4,422

 

$

4,782

 

(8%)

 

$

7,938

 

$

7,794

 

2%

United States

 

 

1,970

 

 

1,712

 

15%

 

 

3,475

 

 

3,191

 

9%

Poland

 

 

1,979

 

 

1,786

 

11%

 

 

3,684

 

 

3,641

 

1%

Corporate and Other

 

 

(1,513)

 

 

(1,472)

 

(3%)

 

 

(2,628)

 

 

(3,051)

 

14%

Consolidated

 

$

6,858

 

$

6,808

 

1%

 

$

12,469

 

$

11,575

 

8%

 

Balance Sheet and Liquidity

As of June 30, 2016, the Company had $31.3 million in cash and cash equivalents and $36.9 million in outstanding debt on its balance sheet compared to $29.4 million in cash and cash equivalents and $36.5 million in outstanding debt at December 31, 2015. The $36.9 million in outstanding debt as of June 30, 2016 includes $20.4 million related to the Company’s Bank of Montreal credit agreement, $0.3 million related to a capital lease for our property in Edmonton, $15.6 million related to a long-term land lease and capital leases of Century Downs Racetrack and Casino (“CDR”) and $0.9 million related to Casinos Poland, Ltd., net of $0.2 million in deferred financing costs.  

 

 

Conference Call Information

 

Today the Company will post a copy of its quarterly report on Form 10-Q filed with the SEC for the quarter ended June 30, 2016 on its website at http://corporate.cnty.com/investor-relations/sec-filings. The Company will also post a presentation on the second quarter results on its website at http://corporate.cnty.com/investor-relations/presentations-and-interviews.

 

Century Casinos will host its second quarter 2016 earnings conference call today at 8:00 am MDT; 4:00 pm CEST, respectively. U.S. domestic participants should dial 1-844-244-9160. For all international participants, please use 330-931-4670 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 August 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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Three Months

For the Six Months

 

Ended June 30,

Ended June 30,

Amounts in thousands, except for per share information

 

2016

 

2015

 

2016

 

2015

Operating revenue:

 

 

 

 

 

 

 

 

 

 

 

 

Net operating revenue

 

$

35,201

 

$

37,875

 

$

67,731

 

$

68,279

Operating costs and expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Total operating costs and expenses

 

 

30,660

 

 

30,036

 

 

59,807

 

 

58,339

Earnings from operations

 

 

 4,541 

 

 

 7,839 

 

 

 7,924 

 

 

 9,940 

Non-operating income (expense), net

 

 

 772 

 

 

 (626)

 

 

 209 

 

 

 (795)

Earnings before income taxes

 

 

 5,313 

 

 

 7,213 

 

 

 8,133 

 

 

 9,145 

Income tax provision

 

 

 (987)

 

 

 406 

 

 

 (1,584)

 

 

 (29)

Net earnings

 

 

 4,326 

 

 

 7,619 

 

 

 6,549 

 

 

 9,116 

Net (earnings) loss attributable to non-controlling interest

 

 

 (2,077)

 

 

 (1,022)

 

 

 (2,407)

 

 

 (674)

Net earnings attributable to Century Casinos, Inc. shareholders

 

$

 2,249 

 

$

 6,597 

 

$

 4,142 

 

$

 8,442 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share attributable to Century Casinos, Inc.:

 

 

 

 

 

 

 

 

 

 

 

 

  Basic

 

$

0.09

 

$

0.27

 

$

0.17

 

$

0.35

  Diluted

 

$

0.09

 

$

0.27

 

$

0.17

 

$

0.35

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares

 

 

 

 

 

 

 

 

 

 

 

 

  Basic

 

 

24,432

 

 

24,386

 

 

24,445

 

 

24,384

  Diluted

 

 

24,548

 

 

24,428

 

 

24,616

 

 

24,424

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CENTURY CASINOS, INC. AND SUBSIDIARIES

FINANCIAL INFORMATION – US GAAP BASIS

 

 

 

 

 

 

 

 

Century Casinos, Inc.

 

 

 

 

 

 

Condensed Consolidated Balance Sheets

 

 

 

 

 

 

(Amounts in thousands)

 

 

 

 

 

 

 

 

June 30,

 

December 31,

 

 

2016

 

2015

Assets

 

 

 

 

 

 

Current assets

 

$

36,690

 

$

34,540

Property and equipment, net

 

 

135,056

 

 

131,582

Other assets

 

 

22,402

 

 

20,961

Total assets

 

$

194,148

 

$

187,083

 

 

 

 

 

 

 

Liabilities and Equity

 

 

 

 

 

 

Current liabilities

 

$

21,587

 

$

23,300

Non-current liabilities

 

 

37,489

 

 

36,508

Century Casinos, Inc. shareholders' equity

 

 

129,427

 

 

122,416

Non-controlling interest

 

 

5,645

 

 

4,859

Total liabilities and equity

 

$

194,148

 

$

187,083

 

 

CENTURY CASINOS, INC. AND SUBSIDIARIES

SUPPLEMENTAL INFORMATION

Century Casinos, Inc.

Constant Currency Results* (unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Three Months

 

 

 

For the Six Months

 

 

 

 

 

Ended June 30,

 

 

 

Ended June 30,

 

 

 

 

 

 

2016

 

 

2015

 

% Change

 

 

2016

 

 

2015

 

% Change

 

Net operating revenue as reported (GAAP)

 

$

35,201

 

$

37,875

 

(7%)

 

$

67,731

 

$

68,279

 

(1%)

 

Foreign currency impact vs. 2015

 

 

1,257

 

 

 

 

 

 

 

3,474

 

 

 

 

 

 

Net operating revenue constant currency (non-GAAP)*

 

$

36,458

 

$

37,875

 

(4%)

 

$

71,205

 

$

68,279

 

4%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

$

2,249

 

$

6,597

 

(66%)

 

$

4,142

 

$

8,442

 

(51%)

 

Foreign currency impact vs. 2015

 

 

175

 

 

 

 

 

 

 

222

 

 

 

 

 

 

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

 

$

2,424

 

$

6,597

 

(63%)

 

$

4,364

 

$

8,442

 

(48%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA (non-GAAP)**

 

$

6,858

 

$

6,808

 

1%

 

$

12,469

 

$

11,575

 

8%

 

Foreign currency impact vs. 2015

 

 

295

 

 

 

 

 

 

 

1,143

 

 

 

 

 

 

Adjusted EBITDA constant currency (non-GAAP)*

 

$

7,153

 

$

6,808

 

5%

 

$

13,612

 

$

11,575

 

18%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Century Casinos, Inc.

Adjusted EBITDA Margins *** (unaudited)

 

 

 

 

 

 

 

 

 

For the Three Months

For the Six Months

 

Ended June 30,

Ended June 30,

 

2016

2015

2016

2015

Canada

34%

36%

31%

36%

United States

26%

24%

24%

23%

Poland

15%

14%

14%

14%

Corporate and Other

(199%)

(33%)

(159%)

(50%)

Consolidated Adjusted EBITDA Margin

19%

18%

18%

17%

 

 

 

 

CENTURY CASINOS, INC. AND SUBSIDIARIES

SUPPLEMENTAL INFORMATION

Century Casinos, Inc.

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended June 30, 2016

Amounts in thousands

 

Canada

 

United States

 

Poland

 

Corporate and Other

 

Total

Net earnings (loss)

 

$

1,948

 

$

833

 

$

678

 

$

(1,210)

 

$

2,249

Interest expense (income), net

 

 

784

 

 

0

 

 

8

 

 

(4)

 

 

788

Income taxes (benefit)

 

 

688

 

 

511

 

 

350

 

 

(562)

 

 

987

Depreciation and amortization

 

 

772

 

 

625

 

 

633

 

 

87

 

 

2,117

Non-controlling interest

 

 

1,736

 

 

0

 

 

341

 

 

0

 

 

2,077

Non-cash stock-based compensation

 

 

0

 

 

0

 

 

0

 

 

190

 

 

190

Gain on foreign currency transactions and other

 

 

(1,524)

 

 

0

 

 

(22)

 

 

(14)

 

 

(1,560)

Loss (gain) on disposition of fixed assets

 

 

18

 

 

1

 

 

(9)

 

 

0

 

 

10

Adjusted EBITDA

 

$

4,422

 

$

1,970

 

$

1,979

 

$

(1,513)

 

$

6,858

 

Century Casinos, Inc.

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended June 30, 2015

Amounts in thousands

 

Canada

 

United States

 

Poland

 

Corporate and Other

 

Total

Net earnings

 

$

2,258

 

$

718

 

$

568

 

$

3,053

 

$

6,597

Interest expense (income), net

 

 

992

 

 

0

 

 

43

 

 

(2)

 

 

1,033

Income taxes (benefit)

 

 

611

 

 

362

 

 

268

 

 

(1,647)

 

 

(406)

Depreciation and amortization

 

 

573

 

 

632

 

 

636

 

 

49

 

 

1,890

Non-controlling interest

 

 

738

 

 

0

 

 

284

 

 

0

 

 

1,022

Non-cash stock-based compensation

 

 

0

 

 

0

 

 

0

 

 

419

 

 

419

Gain on foreign currency transactions and other

 

 

(357)

 

 

0

 

 

(35)

 

 

(15)

 

 

(407)

Loss on disposition of fixed assets

 

 

3

 

 

0

 

 

22

 

 

0

 

 

25

Acquisition costs

 

 

(36)

 

 

0

 

 

0

 

 

36

 

 

0

Other one-time income

 

 

0

 

 

0

 

 

0

 

 

(3,365)

 

 

(3,365)

Adjusted EBITDA

 

$

4,782

 

$

1,712

 

$

1,786

 

$

(1,472)

 

$

6,808

 

 

CENTURY CASINOS, INC. AND SUBSIDIARIES

SUPPLEMENTAL INFORMATION

Century Casinos, Inc.

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Six Months Ended June 30, 2016

 

 

Canada

 

United States

 

Poland

 

Corporate and Other

 

Total

Net earnings (loss)

 

$

3,604

 

$

1,377

 

$

1,347

 

$

(2,186)

 

$

4,142

Interest expense (income), net

 

 

1,534

 

 

0

 

 

23

 

 

(8)

 

 

1,549

Income taxes (benefit)

 

 

1,118

 

 

844

 

 

617

 

 

(995)

 

 

1,584

Depreciation and amortization

 

 

1,470

 

 

1,251

 

 

1,234

 

 

172

 

 

4,127

Non-controlling interest

 

 

1,735

 

 

0

 

 

672

 

 

0

 

 

2,407

Non-cash stock-based compensation

 

 

0

 

 

0

 

 

0

 

 

381

 

 

381

(Gain) loss on foreign currency transactions and other

 

 

(1,544)

 

 

0

 

 

(222)

 

 

8

 

 

(1,758)

Loss on disposition of fixed assets

 

 

21

 

 

3

 

 

13

 

 

0

 

 

37

Adjusted EBITDA

 

$

7,938

 

$

3,475

 

$

3,684

 

$

(2,628)

 

$

12,469

 

Century Casinos, Inc.

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Six Months Ended June 30, 2015

 

 

Canada

 

United States

 

Poland

 

Corporate and Other

 

 

Total

Net earnings

 

$

4,392

 

$

1,194

 

$

1,351

 

$

1,505

 

$

8,442

Interest expense (income), net

 

 

1,625

 

 

0

 

 

78

 

 

(6)

 

 

1,697

Income taxes (benefit)

 

 

957

 

 

731

 

 

516

 

 

(2,175)

 

 

29

Depreciation and amortization

 

 

992

 

 

1,266

 

 

1,247

 

 

197

 

 

3,702

Non-controlling interest

 

 

(1)

 

 

0

 

 

675

 

 

0

 

 

674

Non-cash stock-based compensation

 

 

0

 

 

0

 

 

0

 

 

807

 

 

807

Gain on foreign currency transactions and other

 

 

(519)

 

 

0

 

 

(368)

 

 

(15)

 

 

(902)

Loss on disposition of fixed assets

 

 

3

 

 

0

 

 

142

 

 

1

 

 

146

Preopening expenses

 

 

345

 

 

0

 

 

0

 

 

0

 

 

345

Other one-time income

 

 

0

 

 

0

 

 

0

 

 

(3,365)

 

 

(3,365)

Adjusted EBITDA

 

$

7,794

 

$

3,191

 

$

3,641

 

$

(3,051)

 

$

11,575

 

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 revenue compared to prior period revenue using the prior period’s foreign exchange rates. In order to properly understand the underlying business trends and performance of the Company’s ongoing operations, management believes that investors may find it useful to consider the impact of excluding changes in foreign exchange rates from the Company’s net operating revenue, net earnings (loss) attributable to Century Casinos, Inc. shareholders and Adjusted EBITDA. Constant currency results are calculated by dividing the current quarter or year to date local currency segment results by the prior year’s average exchange rate for the quarter or year as reported in Item 1 of the Company’s Quarterly filing on Form 10-Q and comparing them to actual U.S. dollar results for the prior year.

 

**  The Company defines Adjusted EBITDA as net earnings (loss) attributable to Century Casinos, Inc. shareholders before interest expense (income), net, income taxes (benefit), depreciation, amortization, non-controlling interest (earnings) losses and transactions, pre-opening expenses, acquisition costs, non-cash stock-based compensation charges, asset impairment costs, (gain) loss on disposition of fixed assets, discontinued operations, (gain) loss on foreign currency transactions and other, gain on business combination and certain other one-time items. 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 accounting principles generally accepted in the United States of America (“US GAAP”). Adjusted EBITDA is not considered a measure of performance recognized under US 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.

 

CENTURY CASINOS, INC. AND SUBSIDIARIES

SUPPLEMENTAL INFORMATION

**** The table below presents the Company’s operating results and constant currency* results for the three and six months ended June 30, 2016 compared to the three and six months ended June 30, 2015 without the impact of the $3.4 million in earnings received from the termination agreement with Norwegian (the “Termination Agreement”) in the second quarter of 2015. Earnings from the Termination Agreement did not impact Adjusted EBITDA**.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Three Months

 

 

 

For the Six Months

 

 

 

 

 

Ended June 30,

 

 

 

Ended June 30,

 

 

 

 

 

 

2016

 

 

2015

 

% Change

 

 

2016

 

 

2015

 

% Change

 

Net operating revenue as reported (GAAP)

 

$

35,201

 

$

37,875

 

(7%)

 

$

67,731

 

$

68,279

 

(1%)

 

Less: Earnings from the Termination Agreement

 

 

 

 

 

(3,365)

 

 

 

 

 

 

 

(3,365)

 

 

 

Foreign currency impact vs. 2015

 

 

1,257

 

 

 

 

 

 

 

3,474

 

 

 

 

 

 

Net operating revenue constant currency (non-GAAP)*

 

$

36,458

 

$

34,510

 

6%

 

$

71,205

 

$

64,914

 

10%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings from operations as reported (GAAP)

 

$

4,541

 

$

7,839

 

(42%)

 

$

7,924

 

$

9,940

 

(20%)

 

Less: Earnings from the Termination Agreement

 

 

 

 

 

(3,365)

 

 

 

 

 

 

 

(3,365)

 

 

 

Foreign currency impact vs. 2015

 

 

227

 

 

 

 

 

 

 

635

 

 

 

 

 

 

Earnings from operations constant currency (non-GAAP)*

 

$

4,768

 

$

4,474

 

7%

 

$

8,559

 

$

6,575

 

30%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

$

2,249

 

$

6,597

 

(66%)

 

$

4,142

 

$

8,442

 

(51%)

 

Less: Earnings from the Termination Agreement

 

 

 

 

 

(3,264)

 

 

 

 

 

 

 

(3,264)

 

 

 

Foreign currency impact vs. 2015

 

 

175

 

 

 

 

 

 

 

222

 

 

 

 

 

 

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

 

$

2,424

 

$

3,333

 

(27%)

 

$

4,364

 

$

5,178

 

(16%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA (non-GAAP)**

 

$

6,858

 

$

6,808

 

1%

 

$

12,469

 

$

11,575

 

8%

 

Foreign currency impact vs. 2015

 

 

295

 

 

 

 

 

 

 

1,143

 

 

 

 

 

 

Adjusted EBITDA constant currency (non-GAAP)*

 

$

7,153

 

$

6,808

 

5%

 

$

13,612

 

$

11,575

 

18%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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, Alberta, Canada. Through its Austrian subsidiary, Century Casinos Europe GmbH (“CCE”), the Company holds a 66.6% ownership interest in Casinos Poland Ltd., the owner and operator of eight casinos in Poland. The Company, through CCE, also holds a 75% ownership interest in both CDR, which began operations in the north metropolitan area of Calgary, Alberta, Canada in April 2015, and Century Bets! Inc., which began operating the pari-mutuel off-track horse betting network in southern Alberta, Canada in May 2015. The Company operates 13 ship-based casinos with four cruise ship owners. The Company manages the operations of the casino at the Hilton Aruba Caribbean Resort and Casino. The Company, through CCE, 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 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.

 

 

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 projects in development, the pending acquisition of the Apex Casino, anticipated earnings accretion and the timing of such accretion related to the Apex Casino, debt repayment, investments in joint ventures, outcomes of legal proceedings 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, 2015. 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.

</pre>

Files:
Exhibit_99.1_Earnings_Release_Q2_2016_FINAL.pdf (148 Ki)