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01.11.2016

Century Casinos, Inc. Announces Third Quarter 2016 Results

Century Casinos, Inc. Announces Third Quarter 2016 Results

 

Colorado Springs, Colorado – November 1, 2016 – Century Casinos, Inc. (NASDAQ Capital Market®: CNTY) today announced its financial results for the three and nine months ended September 30, 2016.

 

Third Quarter 2016 Highlights*

  • Net operating revenue was $34.5 million, a 3% increase from the three months ended September 30, 2015.
  • Earnings from operations were $3.8 million, a 6% decrease from the three months ended September 30, 2015.
  • Net earnings attributable to Century Casinos, Inc. shareholders were $1.9 million, a 31% decrease from the three months ended September 30, 2015.
  • Adjusted EBITDA** was $6.3 million, a 7% decrease from the three months ended September 30, 2015.
  • Earnings per share were $0.08.  
  • Book value per share*** at September 30, 2016 was $5.39.

 

Operating results were primarily impacted by decreased net operating revenue at the Century Casino & Hotel in Edmonton (“CRA”) due to an extensive refurbishment and remodel of the casino floor and food and beverage outlets for the three months ended September 30, 2016 compared to the three months ended September 30, 2015.

 

In October 2016, the Company’s subsidiary, Century Casino St. Albert Inc. (“CSA”), acquired 100% of the issued and outstanding shares and related land of entities operating the Apex Casino in suburban Edmonton, Alberta, Canada. Century Casino St. Albert, formerly Apex Casino, is a 34,500 square foot casino facility located on approximately seven acres of land that 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.

 

 

In June 2016, the Company 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., the Company began operating the ship-based casino onboard Glory Sea, a 1,200 passenger cruise ship, in July 2016. Glory Sea operates in the Chinese cruise market with three and four-day trips between China, South Korea and Japan. The Glory Sea casino has 50 slot machines and 17 table games. Under an amended concession agreement with TUI Cruises, the Company also plans 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.

 

In September 2016, the Company was selected as the successful applicant by Horse Racing Alberta to own, build and operate a horse racing facility in the Edmonton market area, which the Company will operate as Century Mile. Century Mile will be a one-mile horse racetrack and multi-level racing and entertainment center, which will include a gaming floor with slot machines as well as food and beverage outlets. The proposed location is on Edmonton International Airport land and close to the city of Leduc, just south of Edmonton and positioned off Queen Elizabeth II Highway. The Company estimates that the project will cost approximately CAD 50.0 million and be completed by the end of 2018.

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Three Months

 

 

For the Nine Months

Amounts in thousands, except per share data

Ended September 30,

 

 

Ended September 30,

Consolidated Results:

 

 

2016

 

 

2015

 

% Change

 

 

2016

 

 

2015

 

% Change

Net operating revenue

 

$

34,526

 

$

33,526

 

3%

 

$

102,257

 

$

101,803

 

0%

Earnings from operations

 

 

3,835

 

 

4,082

 

(6%)

 

 

11,761

 

 

14,021

 

(16%)

Net earnings attributable to Century Casinos, Inc. shareholders

 

$

1,887

 

$

2,728

 

(31%)

 

$

6,030

 

$

11,170

 

(46%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA**

 

$

6,271

 

$

6,719

 

(7%)

 

$

18,742

 

$

18,292

 

3%

   

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.08

 

$

0.11

 

(27%)

 

$

0.25

 

$

0.46

 

(46%)

Diluted

 

$

0.08

 

$

0.11

 

(27%)

 

$

0.25

 

$

0.46

 

(46%)

 

“Operating results and Adjusted EBITDA were impacted by extensive refurbishment and remodeling at the Century Casino & Hotel in Edmonton, our largest property. However, we are very happy with the new gaming floor, restaurant, bar, poker room and the beautiful new VIP gaming areas,” Erwin Haitzmann and Peter Hoetzinger, Co Chief Executive Officers of Century Casinos, said. “We opened another three shipboard casinos this year and are particularly excited about the newest addition to our portfolio of casinos, the Century Casino St. Albert in the greater Edmonton metropolitan region, which we acquired on October 1, 2016. Finally, we are thrilled to have been chosen by Horse Racing Alberta to develop and operate a new horse racing and gaming entertainment facility in South Edmonton,” they continued.

 

 

Consolidated Results*

The table below shows the Company’s operating segments that are included in each of the Company’s reportable segments as of September 30, 2016:

 

 

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 increased by $1.0 million, or 3%, and by $0.5 million, or 0%, for the three and nine months ended September 30, 2016, compared to the three and nine months ended September 30, 2015. Following is a summary of the changes in net operating revenue by segment for the three and nine months ended September 30, 2016, compared to the three and nine months ended September 30, 2015:

 

 

 

 

 

 

 

 

 

 

Net Operating Revenue

 

For the Three Months

For the Nine Months

 

Ended September 30,

Ended September 30,

 

2016/2015

2016/2015

Amounts in millions

 

Change

% Change

 

Change

% Change

Canada

$

(0.2)

(2%)

$

3.5

10%

United States

 

0.2

3%

 

1.0

5%

Poland

 

0.9

7%

 

0.3

1%

Corporate and Other

 

0.1

6%

 

(4.4)

(63%)

Total

$

1.0

3%

$

0.5

0%

 

 

The Company’s earnings from operations decreased by ($0.2) million, or (6%), and by ($2.3) million, or (16%), for the three and nine months ended September 30, 2016, compared to the three and nine months ended September 30, 2015.  Following is a summary of the changes in earnings from operations by segment for the three and nine months ended September 30, 2016, compared to the three and nine months ended September 30, 2015:

 

 

 

 

 

 

 

 

 

 

Earnings from Operations

 

For the Three Months

For the Nine Months

 

Ended September 30,

Ended September 30,

 

2016/2015

2016/2015

Amounts in millions

 

Change

% Change

 

Change

% Change

Canada

$

(0.7)

(20%)

$

(0.7)

(7%)

United States

 

0.1

8%

 

0.4

12%

Poland

 

0.4

45%

 

0.6

19%

Corporate and Other

 

(0.1)

(8%)

 

(2.6)

(112%)

Total

$

(0.2)

(6%)

$

(2.3)

(16%)

 

 

 

Net earnings (loss) attributable to Century Casinos, Inc. shareholders decreased by ($0.8) million, or (31%), and by ($5.1) million, or (46%), for the three and nine months ended September 30, 2016, compared to the three and nine months ended September 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 nine months ended September 30, 2016, compared to the three and nine months ended September 30, 2015:

 

 

 

 

 

 

 

 

 

 

 

Net Earnings (Loss) Attributable to

 

Century Casinos, Inc. Shareholders

 

For the Three Months

For the Nine Months

 

Ended September 30,

Ended September 30,

 

2016/2015

2016/2015

Amounts in millions

 

Change

% Change

 

Change

% Change

Canada

$

(0.5)

(25%)

$

(1.3)

(20%)

United States

 

0.1

7%

 

0.3

12%

Poland

 

0.1

28%

 

0.1

8%

Corporate and Other

 

(0.6)

(82%)

 

(4.3)

(528%)

Total

$

(0.8)

(31%)

$

(5.1)

(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.

 

Segment Results (in thousands)*

The following are segment results for net operating revenue, earnings from operations, net earnings (loss) attributable to Century Casinos, Inc. shareholders and Adjusted EBITDA**.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Operating Revenue

 

 

 

Net Operating Revenue

 

 

 

 

For the Three Months

 

 

 

For the Nine Months

 

 

 

 

Ended September 30,

 

 

 

Ended September 30,

 

 

 

 

2016

 

2015

 

% Change

 

2016

 

2015

 

% Change

Canada

 

$

12,005

 

$

12,198

 

(2%)

 

$

37,470

 

$

33,951

 

10%

United States

 

 

8,188

 

 

7,958

 

3%

 

 

22,970

 

 

21,960

 

5%

Poland

 

 

13,356

 

 

12,449

 

7%

 

 

39,190

 

 

38,858

 

1%

Corporate and Other

 

 

977

 

 

921

 

6%

 

 

2,627

 

 

7,034

 

(63%)

Consolidated

 

$

34,526

 

$

33,526

 

3%

 

$

102,257

 

$

101,803

 

0%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings from Operations

 

 

 

Earnings from Operations

 

 

 

 

For the Three Months

 

 

 

For the Nine Months

 

 

 

 

Ended September 30,

 

 

 

Ended September 30,

 

 

 

 

2016

 

2015

 

% Change

 

2016

 

2015

 

% Change

Canada

 

$

2,599

 

$

3,256

 

(20%)

 

$

9,044

 

$

9,713

 

(7%)

United States

 

 

1,614

 

 

1,502

 

8%

 

 

3,838

 

 

3,426

 

12%

Poland

 

 

1,393

 

 

962

 

45%

 

 

3,828

 

 

3,213

 

19%

Corporate and Other

 

 

(1,771)

 

 

(1,638)

 

(8%)

 

 

(4,949)

 

 

(2,331)

 

(112%)

Consolidated

 

$

3,835

 

$

4,082

 

(6%)

 

$

11,761

 

$

14,021

 

(16%)

 


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Earnings (Loss)

 

 

 

Net Earnings (Loss)

 

 

 

 

Attributable to Century

 

 

 

Attributable to Century

 

 

 

 

Casinos, Inc. Shareholders

 

 

 

Casinos, Inc. Shareholders

 

 

 

 

For the Three Months

 

 

 

For the Nine Months

 

 

 

 

Ended September 30,

 

 

 

Ended September 30,

 

 

 

 

2016

 

2015

 

% Change

 

2016

 

2015

 

% Change

Canada

 

$

1,467

 

$

1,957

 

(25%)

 

$

5,076

 

$

6,355

 

(20%)

United States

 

 

1,000

 

 

931

 

7%

 

 

2,378

 

 

2,125

 

12%

Poland

 

 

684

 

 

536

 

28%

 

 

2,029

 

 

1,884

 

8%

Corporate and Other

 

 

(1,264)

 

 

(696)

 

(82%)

 

 

(3,453)

 

 

806

 

(528%)

Consolidated

 

$

1,887

 

$

2,728

 

(31%)

 

$

6,030

 

$

11,170

 

(46%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA**

 

 

 

Adjusted EBITDA**

 

 

 

 

For the Three Months

 

 

 

For the Nine Months

 

 

 

 

Ended September 30,

 

 

 

Ended September 30,

 

 

 

 

2016

 

2015

 

% Change

 

2016

 

2015

 

% Change

Canada

 

$

3,379

 

$

3,902

 

(13%)

 

$

11,316

 

$

11,697

 

(3%)

United States

 

 

2,238

 

 

2,140

 

5%

 

 

5,716

 

 

5,330

 

7%

Poland

 

 

2,022

 

 

1,771

 

14%

 

 

5,704

 

 

5,411

 

5%

Corporate and Other

 

 

(1,368)

 

 

(1,094)

 

(25%)

 

 

(3,994)

 

 

(4,146)

 

4%

Consolidated

 

$

6,271

 

$

6,719

 

(7%)

 

$

18,742

 

$

18,292

 

3%

 

Balance Sheet and Liquidity

As of September 30, 2016, the Company had $33.0 million in cash and cash equivalents and $58.4 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 $58.4 million in outstanding debt as of September 30, 2016 includes $42.5 million related to the Company’s Bank of Montreal credit agreement, $0.9 million related to capital leases for Century Resorts Alberta and Century Downs Racetrack and Casino (“CDR”), $14.9 million related to a long-term land lease for CDR and $0.5 million related to Casinos Poland, Ltd., net of $0.4 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 September 30, 2016 on its website at http://corporate.cnty.com/investor-relations/sec-filings. The Company will also post a presentation on the third quarter results on its website at http://corporate.cnty.com/investor-relations/presentations-and-interviews.

 

Century Casinos will host its third quarter 2016 earnings conference call today at 7:00 am MDT; 2:00 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 November 30, 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 Nine Months

 

Ended September 30,

Ended September 30,

Amounts in thousands, except for per share information

 

2016

 

2015

 

2016

 

2015

Operating revenue:

 

 

 

 

 

 

 

 

 

 

 

 

Net operating revenue

 

$

34,526

 

$

33,526

 

$

102,257

 

$

101,803

Operating costs and expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Total operating costs and expenses

 

 

30,691

 

 

29,444

 

 

90,496

 

 

87,782

Earnings from operations

 

 

 3,835 

 

 

 4,082 

 

 

 11,761 

 

 

 14,021 

Non-operating income (expense), net

 

 

 (629)

 

 

 (570)

 

 

 (420)

 

 

 (1,364)

Earnings before income taxes

 

 

 3,206 

 

 

 3,512 

 

 

 11,341 

 

 

 12,657 

Income tax provision

 

 

 (793)

 

 

 (373)

 

 

 (2,378)

 

 

 (402)

Net earnings

 

 

 2,413 

 

 

 3,139 

 

 

 8,963 

 

 

 12,255 

Net earnings attributable to non-controlling interest

 

 

 (526)

 

 

 (411)

 

 

 (2,933)

 

 

 (1,085)

Net earnings attributable to Century Casinos, Inc. shareholders

 

$

 1,887 

 

$

 2,728 

 

$

 6,030 

 

$

 11,170 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share attributable to Century Casinos, Inc.:

 

 

 

 

 

 

 

 

 

 

 

 

  Basic

 

$

0.08

 

$

0.11

 

$

0.25

 

$

0.46

  Diluted

 

$

0.08

 

$

0.11

 

$

0.25

 

$

0.46

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares

 

 

 

 

 

 

 

 

 

 

 

 

  Basic

 

 

24,440

 

 

24,399

 

 

24,452

 

 

24,389

  Diluted

 

 

24,675

 

 

24,440

 

 

24,644

 

 

24,430

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CENTURY CASINOS, INC. AND SUBSIDIARIES

FINANCIAL INFORMATION – US GAAP BASIS

 

 

 

 

 

 

 

 

Century Casinos, Inc.

 

 

 

 

 

 

Condensed Consolidated Balance Sheets

 

 

 

 

 

 

(Amounts in thousands)

 

 

 

 

 

 

 

 

September 30,

 

December 31,

 

 

2016

 

2015

Assets

 

 

 

 

 

 

Current assets

 

$

39,604

 

$

34,540

Property and equipment, net

 

 

134,132

 

 

131,582

Other assets

 

 

45,748

 

 

20,961

Total assets

 

$

219,484

 

$

187,083

 

 

 

 

 

 

 

Liabilities and Equity

 

 

 

 

 

 

Current liabilities

 

$

24,845

 

$

23,300

Non-current liabilities

 

 

56,786

 

 

36,508

Century Casinos, Inc. shareholders' equity

 

 

131,717

 

 

122,416

Non-controlling interest

 

 

6,136

 

 

4,859

Total liabilities and equity

 

$

219,484

 

$

187,083

 

 

CENTURY CASINOS, INC. AND SUBSIDIARIES

SUPPLEMENTAL INFORMATION

Century Casinos, Inc.

Constant Currency Results* (unaudited)

(Amounts in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Three Months

 

 

 

For the Nine Months

 

 

 

 

 

Ended September 30,

 

 

 

Ended September 30,

 

 

 

 

 

 

2016

 

 

2015

 

% Change

 

 

2016

 

 

2015

 

% Change

 

Net operating revenue as reported (GAAP)

 

$

34,526

 

$

33,526

 

3%

 

$

102,257

 

$

101,803

 

0%

 

Foreign currency impact vs. 2015

 

 

403

 

 

 

 

 

 

 

1,733

 

 

 

 

 

 

Net operating revenue constant currency (non-GAAP)*

 

$

34,929

 

$

33,526

 

4%

 

$

103,990

 

$

101,803

 

2%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings from operations (GAAP)

 

$

3,835

 

$

4,082

 

(6%)

 

$

11,761

 

$

14,021

 

(16%)

 

Foreign currency impact vs. 2015

 

 

45

 

 

 

 

 

 

 

222

 

 

 

 

 

 

Earnings from operations (non-GAAP)*

 

$

3,880

 

$

4,082

 

(5%)

 

$

11,983

 

$

14,021

 

(15%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

$

1,887

 

$

2,728

 

(31%)

 

$

6,030

 

$

11,170

 

(46%)

 

Foreign currency impact vs. 2015

 

 

68

 

 

 

 

 

 

 

31

 

 

 

 

 

 

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

 

$

1,955

 

$

2,728

 

(28%)

 

$

6,061

 

$

11,170

 

(46%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA (non-GAAP)**

 

$

6,271

 

$

6,719

 

(7%)

 

$

18,742

 

$

18,292

 

3%

 

Foreign currency impact vs. 2015

 

 

64

 

 

 

 

 

 

 

313

 

 

 

 

 

 

Adjusted EBITDA constant currency (non-GAAP)*

 

$

6,335

 

$

6,719

 

(6%)

 

$

19,055

 

$

18,292

 

4%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Century Casinos, Inc.

Adjusted EBITDA Margins *** (unaudited)

 

 

 

 

 

 

 

 

 

For the Three Months

For the Nine Months

 

Ended September 30,

Ended September 30,

 

2016

2015

2016

2015

Canada

28%

32%

30%

34%

United States

27%

27%

25%

24%

Poland

15%

14%

15%

14%

Corporate and Other

(140%)

(119%)

(152%)

(59%)

Consolidated Adjusted EBITDA Margin

18%

20%

18%

18%

 

Century Casinos, Inc.

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended September 30, 2016

Amounts in thousands

 

Canada

 

United States

 

Poland

 

Corporate and Other

 

Total

Net earnings (loss)

 

$

1,467

 

$

1,000

 

$

684

 

$

(1,264)

 

$

1,887

Interest expense (income), net

 

 

655

 

 

0

 

 

(1)

 

 

(5)

 

 

649

Income taxes (benefit)

 

 

365

 

 

614

 

 

319

 

 

(505)

 

 

793

Depreciation and amortization

 

 

775

 

 

624

 

 

629

 

 

105

 

 

2,133

Non-controlling interest

 

 

183

 

 

0

 

 

343

 

 

0

 

 

526

Non-cash stock-based compensation

 

 

0

 

 

0

 

 

0

 

 

192

 

 

192

(Gain) loss on foreign currency transactions and other

 

 

(71)

 

 

0

 

 

48

 

 

3

 

 

(20)

Loss on disposition of fixed assets

 

 

5

 

 

0

 

 

0

 

 

0

 

 

5

Acquisition costs

 

 

0

 

 

0

 

 

0

 

 

106

 

 

106

Adjusted EBITDA

 

$

3,379

 

$

2,238

 

$

2,022

 

$

(1,368)

 

$

6,271

 

 

CENTURY CASINOS, INC. AND SUBSIDIARIES

SUPPLEMENTAL INFORMATION

Century Casinos, Inc.

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended September 30, 2015

Amounts in thousands

 

Canada

 

United States

 

Poland

 

Corporate and Other

 

Total

Net earnings (loss)

 

$

1,957

 

$

931

 

$

536

 

$

(696)

 

$

2,728

Interest expense (income), net

 

 

783

 

 

0

 

 

31

 

 

(4)

 

 

810

Income taxes (benefit)

 

 

519

 

 

571

 

 

227

 

 

(944)

 

 

373

Depreciation and amortization

 

 

644

 

 

638

 

 

678

 

 

118

 

 

2,078

Non-controlling interest

 

 

145

 

 

0

 

 

266

 

 

0

 

 

411

Non-cash stock-based compensation

 

 

0

 

 

0

 

 

0

 

 

423

 

 

423

(Gain) loss on foreign currency transactions and other

 

 

(148)

 

 

0

 

 

(98)

 

 

6

 

 

(240)

Loss on disposition of fixed assets

 

 

2

 

 

0

 

 

131

 

 

3

 

 

136

Adjusted EBITDA

 

$

3,902

 

$

2,140

 

$

1,771

 

$

(1,094)

 

$

6,719

 

Century Casinos, Inc.

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Nine Months Ended September 30, 2016

Amounts in thousands

 

Canada

 

United States

 

Poland

 

Corporate and Other

 

Total

Net earnings (loss)

 

$

5,076

 

$

2,378

 

$

2,029

 

$

(3,453)

 

$

6,030

Interest expense (income), net

 

 

2,189

 

 

0

 

 

22

 

 

(13)

 

 

2,198

Income taxes (benefit)

 

 

1,477

 

 

1,460

 

 

936

 

 

(1,495)

 

 

2,378

Depreciation and amortization

 

 

2,246

 

 

1,875

 

 

1,863

 

 

276

 

 

6,260

Non-controlling interest

 

 

1,918

 

 

0

 

 

1,015

 

 

0

 

 

2,933

Non-cash stock-based compensation

 

 

0

 

 

0

 

 

0

 

 

573

 

 

573

(Gain) loss on foreign currency transactions and other

 

 

(1,616)

 

 

0

 

 

(174)

 

 

12

 

 

(1,778)

Loss on disposition of fixed assets

 

 

26

 

 

3

 

 

13

 

 

0

 

 

42

Acquisition costs

 

 

0

 

 

0

 

 

0

 

 

106

 

 

106

Adjusted EBITDA

 

$

11,316

 

$

5,716

 

$

5,704

 

$

(3,994)

 

$

18,742

 

 

CENTURY CASINOS, INC. AND SUBSIDIARIES

SUPPLEMENTAL INFORMATION

Century Casinos, Inc.

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Nine Months Ended September 30, 2015

Amounts in thousands

 

Canada

 

United States

 

Poland

 

Corporate and Other

 

 

Total

Net earnings

 

$

6,355

 

$

2,125

 

$

1,884

 

$

806

 

$

11,170

Interest expense (income), net

 

 

2,406

 

 

0

 

 

110

 

 

(10)

 

 

2,506

Income taxes (benefit)

 

 

1,479

 

 

1,301

 

 

743

 

 

(3,121)

 

 

402

Depreciation and amortization

 

 

1,635

 

 

1,904

 

 

1,925

 

 

316

 

 

5,780

Non-controlling interest

 

 

143

 

 

0

 

 

942

 

 

0

 

 

1,085

Non-cash stock-based compensation

 

 

0

 

 

0

 

 

0

 

 

1,230

 

 

1,230

Gain on foreign currency transactions and other

 

 

(670)

 

 

0

 

 

(466)

 

 

(6)

 

 

(1,142)

Loss on disposition of fixed assets

 

 

4

 

 

0

 

 

273

 

 

4

 

 

281

Preopening expenses

 

 

345

 

 

0

 

 

0

 

 

0

 

 

345

Other one-time income

 

 

0

 

 

0

 

 

0

 

 

(3,365)

 

 

(3,365)

Adjusted EBITDA

 

$

11,697

 

$

5,330

 

$

5,411

 

$

(4,146)

 

$

18,292

 

 

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, earnings from operations, 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 Report on Form 10-Q and comparing them to actual U.S. dollar results for the prior quarter or 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 nine months ended September 30, 2016 compared to the nine months ended September 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 Nine Months

 

 

 

 

 

Ended September 30,

 

 

 

 

 

 

2016

 

 

2015

 

% Change

 

Net operating revenue as reported (GAAP)

 

$

102,257

 

$

101,803

 

0%

 

Less: Earnings from the Termination Agreement

 

 

 

 

 

(3,365)

 

 

 

Foreign currency impact vs. 2015

 

 

1,733

 

 

 

 

 

 

Net operating revenue constant currency (non-GAAP)*

 

$

103,990

 

$

98,438

 

6%

 

 

 

 

 

 

 

 

 

 

 

Earnings from operations as reported (GAAP)

 

$

11,761

 

$

14,021

 

(16%)

 

Less: Earnings from the Termination Agreement

 

 

 

 

 

(3,365)

 

 

 

Foreign currency impact vs. 2015

 

 

222

 

 

 

 

 

 

Earnings from operations constant currency (non-GAAP)*

 

$

11,983

 

$

10,656

 

12%

 

 

 

 

 

 

 

 

 

 

 

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

 

$

6,030

 

$

11,170

 

(46%)

 

Less: Earnings from the Termination Agreement

 

 

 

 

 

(3,264)

 

 

 

Foreign currency impact vs. 2015

 

 

31

 

 

 

 

 

 

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

 

$

6,061

 

$

7,906

 

(23%)

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA (non-GAAP)**

 

$

18,742

 

$

18,292

 

3%

 

Foreign currency impact vs. 2015

 

 

313

 

 

 

 

 

 

Adjusted EBITDA constant currency (non-GAAP)*

 

$

19,055

 

$

18,292

 

4%

 

 

 

 

 

 

 

 

 

 

 

 

 

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 in St. Albert, 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 Century Downs Racetrack and Casino, 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 new projects and projects in development, including Century Casino St. Albert and Century Mile, the anticipated timing and costs of the Century Mile project, 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.

 

Files:
Exhibit_99.1_Earnings_Release_Q3_2016_FINAL.pdf (818 Ki)