COLORADO SPRINGS, Colo.,
May 20, 2020 /PRNewswire/
-- Century Casinos, Inc. (Nasdaq Capital Market®: CNTY) today
announced its financial results for the three months ended
March 31, 2020.
First Quarter 2020 Highlights*
- Net operating revenue was $87.7
million, compared to $45.6
million for the three months ended March 31, 2019, an increase of 92%.
- Loss from operations was ($31.8)
million, compared to earnings of $3.4
million for the three months ended March 31, 2019, a decrease of (1022%).
- Net loss attributable to Century Casinos, Inc. shareholders was
($45.9) million, compared to net
earnings attributable to Century Casinos, Inc. shareholders of
$1.1 million for the three months
ended March 31, 2019, a decrease of
(4394%).
- Adjusted EBITDA** was $9.6
million, compared to $6.7
million for the three months ended March 31, 2019, an increase of 44%.
- Loss per share was ($1.55).
- Book value per share*** at March 31,
2020 was $3.54.
The Company's first quarter 2020 net operating revenue and
Adjusted EBITDA were significantly impacted by the acquisition of
Mountaineer Casino, Racetrack & Resort, Century Casino Cape
Girardeau and Century Casino Caruthersville (the "Acquired
Casinos") in December 2019. The
coronavirus (COVID-19) pandemic discussed below significantly
impacted the Company's first quarter 2020 results of operations,
which included a $33.0 million
impairment of goodwill and casino licenses.
COVID-19 Update
In late 2019, an outbreak of COVID-19 was identified in
China and has since spread
throughout much of the world. The COVID-19 pandemic has had an
adverse effect on the Company's first quarter 2020 results of
operations and financial condition, and we expect this situation
will have an adverse impact on our second quarter 2020 results. The
trends below are not the only items that could impact the Company's
future performance, and the views of management are preliminary
based on currently available information. Between March 14, 2020 and March
17, 2020, the Company closed all of its casinos, hotels and
other facilities to comply with quarantines issued by governments
to contain the spread of COVID-19. The Company anticipates a phased
approach to reopening will be recommended by government officials
in the jurisdictions where it operates, which could include reduced
levels of gaming space, social distancing at slot machines and
table games or reduced capacity within the casino, limited
restaurant operating hours or continued closure of restaurants,
requirements to wear face masks, including the potential to require
guests to wear face masks, increased frequency of disinfecting
surfaces and other measures to account for varying levels of
demand. The Company's casinos rely on a local customer base and, as
such, the Company anticipates that its operations could resume at a
quicker rate than those of casinos at destination resorts. The
timing for reopening the Company's closed locations will depend on
determinations by governments in each jurisdiction. The Company
reopened its Poland casinos on
May 18, 2020. Based on information
currently available, the Company is anticipating reopening most of
its other locations beginning in June
2020 and no later than August
2020. However, the Company cannot predict how quickly
customers will return to its casinos. The Company permanently
closed Century Casino Bath in March
2020 and four of the ship-based casinos that the Company
operated prior to their closures in March
2020 will not reopen due to expiration of the Company's
concession agreements for those casinos.
Due to the temporary closures of its casinos, hotels and other
facilities, the Company has taken actions to reduce operating
costs, including furloughing most of its personnel and implementing
reduced work weeks for other personnel. During the closures, the
Company will continue to pay benefits to its United States and Canadian employees,
inclusive of part time employees, through May 2020. In Poland, all employees were paid reduced
salaries based on local employment laws. In March 2020, as a proactive measure to increase
its cash position and preserve financial flexibility in light of
the uncertainty resulting from the COVID-19 pandemic, the Company
borrowed an additional $17.4 million
on its revolving credit facility with Macquarie Capital
("Macquarie") and its credit agreement with UniCredit Bank Austria
AG ("UniCredit"). The Company has no remaining availability under
these credit facilities. As of April 30,
2020, the Company had $50.0
million in cash on hand. The Company currently is not
generating any revenue from its properties, and estimates that the
net cash outflow during the time the operations continue to be
fully suspended will be, on average, approximately $8.0 million per month. Management estimates that
the Company will need approximately $19.8
million to reopen operations and cover short-term cash needs
at the casinos.
During the first quarter of 2020, the Company concluded that the
COVID-19 pandemic and associated closure of its casinos were
triggering events that could indicate possible impairment of its
goodwill and indefinite-lived intangible assets. The Company
performed a quantitative and qualitative impairment analysis and
determined that goodwill and casino licenses related to certain
reporting units were impaired. As a result, the Company recorded
$33.0 million to impairment –
goodwill and intangible assets on its condensed consolidated
statement of (loss) earnings for the three months ended
March 31, 2020.
The consolidated results for the three months ended March 31, 2020 and 2019 are as follows:
|
|
|
|
|
|
|
|
|
|
For the three
months
|
|
|
Amounts in
thousands, except per share data
|
ended March
31,
|
|
|
Consolidated
Results:
|
|
|
2020
|
|
|
2019
|
|
%
Change
|
Net Operating
Revenue
|
|
$
|
87,656
|
|
$
|
45,613
|
|
92%
|
(Loss) earnings from
Operations
|
|
|
(31,772)
|
|
|
3,446
|
|
(1022%)
|
Net (Loss) Earnings
Attributable to Century Casinos, Inc. Shareholders
|
|
$
|
(45,856)
|
|
$
|
1,068
|
|
(4394%)
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA**
|
|
$
|
9,644
|
|
$
|
6,703
|
|
44%
|
|
|
|
|
|
|
|
|
|
(Loss) Earnings
Per Share Attributable to Century Casinos, Inc.
Shareholders:
|
Basic
|
|
$
|
(1.55)
|
|
$
|
0.04
|
|
(3975%)
|
Diluted
|
|
$
|
(1.55)
|
|
$
|
0.04
|
|
(3975%)
|
"During these unprecedented times, our primary focus is the
health, safety and well-being of our team members, guests and
communities," Erwin Haitzmann and Peter Hoetzinger, Co-Chief
Executive Officers of Century Casinos remarked. "Through the end of
February, we were encouraged by the strength of our operations and
the significant growth in net operating revenue and Adjusted EBITDA
driven in part by our recent acquisition of properties in
Missouri and West Virginia. We look forward to reopening
our properties, and we plan to meet or exceed all safety
requirements set forth by health officials," Haitzmann and
Hoetzinger concluded.
Reportable Segment Results*
The table below shows the
Company's reporting units and operating segments that are included
in each of the Company's reportable segments as of March 31, 2020:
|
|
|
Reportable
Segment
|
Operating
Segment
|
Reporting
Unit
|
United
States
|
Colorado
|
Century Casino &
Hotel - Central City
|
|
|
Century Casino &
Hotel - Cripple Creek
|
|
West
Virginia
|
Mountaineer Casino,
Racetrack & Resort
|
|
Missouri
|
Century Casino Cape
Girardeau
|
|
|
Century Casino
Caruthersville
|
Canada
|
Edmonton
|
Century Casino &
Hotel - Edmonton
|
|
|
Century Casino St.
Albert
|
|
|
Century Mile
Racetrack and Casino
|
|
Calgary
|
Century Casino
Calgary
|
|
|
Century Downs
Racetrack and Casino
|
|
|
Century Bets!
Inc.
|
Poland
|
Poland
|
Casinos
Poland
|
Corporate and
Other
|
Corporate and
Other
|
Cruise Ships &
Other
|
|
|
Century Casino
Bath
|
|
|
Corporate
Other
|
The Company's net operating revenue increased by $42.0 million, or 92%, for the three months ended
March 31, 2020, compared to the three
months ended March 31, 2019.
Following is a summary of the changes in net operating revenue by
reportable segment for the three months ended March 31, 2020, compared to the three months
ended March 31, 2019:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Operating
Revenue
|
|
|
For the three
months
|
|
|
|
|
|
|
|
ended March
31,
|
|
|
|
|
|
Amounts in
thousands
|
|
2020
|
|
2019
|
|
$
Change
|
|
%
Change
|
United
States
|
|
$
|
53,427
|
|
$
|
8,068
|
|
$
|
45,359
|
|
562%
|
Canada
|
|
|
16,187
|
|
|
16,297
|
|
|
(110)
|
|
(1%)
|
Poland
|
|
|
17,062
|
|
|
19,752
|
|
|
(2,690)
|
|
(14%)
|
Corporate and
Other
|
|
|
980
|
|
|
1,496
|
|
|
(516)
|
|
(35%)
|
Consolidated
|
|
$
|
87,656
|
|
$
|
45,613
|
|
$
|
42,043
|
|
92%
|
The Company's earnings from operations decreased by ($35.2) million, or (1022%), for the three months
ended March 31, 2020, compared to the
three months ended March 31, 2019.
Following is a summary of the changes in earnings (loss) from
operations by reportable segment for the three months ended
March 31, 2020, compared to the three
months ended March 31, 2019:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (Loss)
from Operations
|
|
|
For the three
months
|
|
|
|
|
|
|
|
ended March
31,
|
|
|
|
|
|
Amounts in
thousands
|
|
2020
|
|
2019
|
|
$
Change
|
|
%
Change
|
United
States
|
|
$
|
(25,091)
|
|
$
|
1,339
|
|
$
|
(26,430)
|
|
(1974%)
|
Canada
|
|
|
(1,678)
|
|
|
3,700
|
|
|
(5,378)
|
|
(145%)
|
Poland
|
|
|
294
|
|
|
1,675
|
|
|
(1,381)
|
|
(82%)
|
Corporate and
Other
|
|
|
(5,297)
|
|
|
(3,268)
|
|
|
(2,029)
|
|
(62%)
|
Consolidated
|
|
$
|
(31,772)
|
|
$
|
3,446
|
|
$
|
(35,218)
|
|
(1022%)
|
Net earnings (loss) attributable to Century Casinos, Inc.
shareholders decreased by ($46.9)
million, or (4394%), for the three months ended March 31, 2020, compared to the three months
ended March 31, 2019. Following is a
summary of the changes in net earnings (loss) attributable to
Century Casinos, Inc. shareholders by reportable segment for the
three months ended March 31, 2020,
compared to the three months ended March 31,
2019:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Earnings
(Loss) Attributable to Century Casinos, Inc.
Shareholders
|
|
|
For the three
months
|
|
|
|
|
|
|
|
ended March
31,
|
|
|
|
|
|
Amounts in
thousands
|
|
2020
|
|
2019
|
|
$
Change
|
|
%
Change
|
United
States
|
|
$
|
(34,219)
|
|
$
|
983
|
|
$
|
(35,202)
|
|
(3581%)
|
Canada
|
|
|
(4,408)
|
|
|
1,547
|
|
|
(5,955)
|
|
(385%)
|
Poland
|
|
|
31
|
|
|
913
|
|
|
(882)
|
|
(97%)
|
Corporate and
Other
|
|
|
(7,260)
|
|
|
(2,375)
|
|
|
(4,885)
|
|
(206%)
|
Consolidated
|
|
$
|
(45,856)
|
|
$
|
1,068
|
|
$
|
(46,924)
|
|
(4394%)
|
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.
The Company's Adjusted EBITDA** increased by $2.9 million, or 44%, for the three months ended
March 31, 2020 compared to the three
months ended March 31, 2019.
Following is a summary of the changes in Adjusted EBITDA** by
reportable segment for the three months ended March 31, 2020 compared to the three months ended
March 31, 2019:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA**
|
|
|
For the three
months
|
|
|
|
|
|
|
|
ended March
31,
|
|
|
|
|
|
Amounts in
thousands
|
|
2020
|
|
2019
|
|
$
Change
|
|
%
Change
|
United
States
|
|
$
|
8,757
|
|
$
|
1,915
|
|
$
|
6,842
|
|
357%
|
Canada
|
|
|
3,034
|
|
|
5,030
|
|
|
(1,996)
|
|
(40%)
|
Poland
|
|
|
1,059
|
|
|
2,450
|
|
|
(1,391)
|
|
(57%)
|
Corporate and
Other
|
|
|
(3,206)
|
|
|
(2,692)
|
|
|
(514)
|
|
(19%)
|
Consolidated
|
|
$
|
9,644
|
|
$
|
6,703
|
|
$
|
2,941
|
|
44%
|
Balance Sheet and Liquidity
As of March 31, 2020, the Company had $63.7 million in cash and cash equivalents
and $194.0 million in outstanding
debt on its balance sheet compared to $54.8 million in cash and cash equivalents
and $179.0 million in outstanding
debt at December 31, 2019. The
outstanding debt as of March 31, 2020
included $179.5 million related to
the Company's credit agreement with Macquarie, $1.6 million of bank debt related to Casinos
Poland, $9.3 million of bank debt
related to Century Resorts Management GmbH ("CRM"), and
$13.7 million related to a long-term
land lease for Century Downs Racetrack and Casino ("CDR"), net of
$10.1 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 March 31, 2020
on its website at www.cnty.com/investor/financials/sec-filings/.
The Company will also post a presentation of the first quarter
results on its website at www.cnty.com/investor/presentations/.
The Company will host its first quarter 2020 earnings conference
call today, Wednesday, May 20, at
10:00 am MDT. 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 May 31, 2020 at
www.cnty.com/investor/financials/sec-filings/.
CENTURY CASINOS,
INC. AND SUBSIDIARIES
|
FINANCIAL
INFORMATION – US GAAP BASIS
|
Condensed
Consolidated Statements of (Loss) Earnings
|
|
|
|
|
|
|
|
|
For the three
months
|
|
ended March
31,
|
Amounts in
thousands, except for per share information
|
|
2020
|
|
2019
|
Operating
revenue:
|
|
|
|
|
|
|
Net operating
revenue
|
|
$
|
87,656
|
|
$
|
45,613
|
Operating costs
and expenses:
|
|
|
|
|
|
|
Total operating costs
and expenses
|
|
|
119,428
|
|
|
42,153
|
Loss from equity
investment
|
|
|
—
|
|
|
(14)
|
Earnings from
operations
|
|
|
(31,772)
|
|
|
3,446
|
Non-operating income
(expense), net
|
|
|
(11,365)
|
|
|
(1,007)
|
(Loss) earnings
before income taxes
|
|
|
(43,137)
|
|
|
2,439
|
Income tax
provision
|
|
|
(2,524)
|
|
|
(716)
|
Net (loss)
earnings
|
|
|
(45,661)
|
|
|
1,723
|
Net earnings
attributable to non-controlling interests
|
|
|
(195)
|
|
|
(655)
|
Net (loss)
earnings attributable to Century Casinos, Inc.
shareholders
|
|
$
|
(45,856)
|
|
$
|
1,068
|
|
|
|
|
|
|
|
(Loss) earnings
per share attributable to Century Casinos, Inc.
shareholders:
|
Basic
|
|
$
|
(1.55)
|
|
$
|
0.04
|
Diluted
|
|
$
|
(1.55)
|
|
$
|
0.04
|
|
|
|
|
|
|
|
Weighted average
common shares
|
|
|
|
|
|
|
Basic
|
|
|
29,507
|
|
|
29,439
|
Diluted
|
|
|
29,507
|
|
|
30,052
|
|
|
|
|
|
|
|
Condensed
Consolidated Balance Sheets
|
|
|
|
|
|
|
|
|
March
31,
|
|
December
31,
|
Amounts in
thousands
|
|
2020
|
|
2019
|
Assets
|
|
|
|
|
|
|
Current
assets
|
|
$
|
78,693
|
|
$
|
79,366
|
Property and
equipment, net
|
|
|
490,307
|
|
|
503,933
|
Other
assets
|
|
|
101,122
|
|
|
143,601
|
Total
assets
|
|
$
|
670,122
|
|
$
|
726,900
|
|
|
|
|
|
|
|
Liabilities and
Equity
|
|
|
|
|
|
|
Current
liabilities
|
|
$
|
53,480
|
|
$
|
56,570
|
Non-current
liabilities
|
|
|
503,968
|
|
|
498,255
|
Century Casinos, Inc.
shareholders' equity
|
|
|
104,599
|
|
|
163,306
|
Non-controlling
interests
|
|
|
8,075
|
|
|
8,769
|
Total liabilities and
equity
|
|
$
|
670,122
|
|
$
|
726,900
|
CENTURY CASINOS,
INC. AND SUBSIDIARIES
|
SUPPLEMENTAL
INFORMATION
|
Constant Currency*
Results (unaudited)
|
|
|
|
For the three
months
|
|
|
|
|
ended March
31,
|
|
|
Amounts in
thousands
|
|
|
2020
|
|
|
2019
|
|
%
Change
|
Net operating revenue
as reported (US GAAP)
|
|
$
|
87,656
|
|
$
|
45,613
|
|
92%
|
Foreign currency
impact vs. 2019
|
|
|
579
|
|
|
|
|
|
Net operating revenue
constant currency (non-US GAAP)*
|
|
$
|
88,235
|
|
$
|
45,613
|
|
93%
|
|
|
|
|
|
|
|
|
|
(Loss) earnings from
operations (US GAAP)
|
|
$
|
(31,772)
|
|
$
|
3,446
|
|
(1022%)
|
Foreign currency
impact vs. 2019
|
|
|
(264)
|
|
|
|
|
|
(Loss) earnings from
operations constant currency (non-US GAAP)*
|
|
$
|
(32,036)
|
|
$
|
3,446
|
|
(1030%)
|
|
|
|
|
|
|
|
|
|
Net (loss) earnings
attributable to Century Casinos, Inc. shareholders as reported (US
GAAP)
|
|
$
|
(45,856)
|
|
$
|
1,068
|
|
(4394%)
|
Foreign currency
impact vs. 2019
|
|
|
(473)
|
|
|
|
|
|
Net (loss) earnings
attributable to Century Casinos, Inc. shareholders constant
currency (non-US GAAP)*
|
|
$
|
(46,329)
|
|
$
|
1,068
|
|
(4438%)
|
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
|
|
ended March
31,
|
|
2020
|
2019
|
United
States
|
16%
|
24%
|
Canada
|
19%
|
31%
|
Poland
|
6%
|
12%
|
Corporate and
Other
|
(327%)
|
(180%)
|
Consolidated Adjusted
EBITDA Margin
|
11%
|
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 March 31, 2020
|
Amounts in
thousands
|
|
United
States
|
|
Canada
|
|
Poland
|
|
Corporate
and Other
|
|
Total
|
Net (loss) earnings
attributable to Century Casinos, Inc. shareholders
|
|
$
|
(34,219)
|
|
$
|
(4,408)
|
|
$
|
31
|
|
$
|
(7,260)
|
|
$
|
(45,856)
|
Interest expense
(income), net (1)
|
|
|
7,281
|
|
|
543
|
|
|
31
|
|
|
3,511
|
|
|
11,366
|
Income taxes
(benefit)
|
|
|
1,847
|
|
|
2,071
|
|
|
45
|
|
|
(1,439)
|
|
|
2,524
|
Depreciation and
amortization
|
|
|
4,259
|
|
|
1,337
|
|
|
763
|
|
|
136
|
|
|
6,495
|
Net earnings
attributable to non-controlling interests
|
|
|
—
|
|
|
180
|
|
|
15
|
|
|
—
|
|
|
195
|
Non-cash stock-based
compensation
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(14)
|
|
|
(14)
|
Loss on foreign
currency transactions, cost recovery income and other
|
|
|
29,589
|
|
|
3,311
|
|
|
172
|
|
|
1,645
|
|
|
34,717
|
Loss on disposition
of fixed assets
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
2
|
|
|
4
|
Acquisition
costs
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
213
|
|
|
213
|
Adjusted
EBITDA
|
|
$
|
8,757
|
|
$
|
3,034
|
|
$
|
1,059
|
|
$
|
(3,206)
|
|
$
|
9,644
|
(1)
|
Expense of $7.3
million related to the triple net master lease for the three
Acquired Casino properties ("Master Lease") is included in interest
expense (income), net in the United States segment. Expense of $0.5
million related to the CDR land lease is included in interest
expense (income), net in the Canada segment. Cash payments related
to the Master Lease and CDR land lease were $6.2 million and $0.5
million, respectively, for the period presented.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three
months ended March 31, 2019
|
Amounts in
thousands
|
|
United
States
|
|
Canada
|
|
Poland
|
|
Corporate
and Other
|
|
Total
|
Net earnings (loss)
attributable to Century Casinos, Inc. shareholders
|
|
$
|
983
|
|
$
|
1,547
|
|
$
|
913
|
|
$
|
(2,375)
|
|
$
|
1,068
|
Interest expense
(income), net (1)
|
|
|
—
|
|
|
1,192
|
|
|
46
|
|
|
16
|
|
|
1,254
|
Income taxes
(benefit)
|
|
|
356
|
|
|
766
|
|
|
461
|
|
|
(867)
|
|
|
716
|
Depreciation and
amortization
|
|
|
560
|
|
|
797
|
|
|
770
|
|
|
298
|
|
|
2,425
|
Net earnings (loss)
attributable to non-controlling interests
|
|
|
—
|
|
|
240
|
|
|
457
|
|
|
(42)
|
|
|
655
|
Non-cash stock-based
compensation
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
261
|
|
|
261
|
Gain on foreign
currency transactions and cost recovery income
|
|
|
—
|
|
|
(45)
|
|
|
(202)
|
|
|
(11)
|
|
|
(258)
|
Loss (gain) on
disposition of fixed assets
|
|
|
16
|
|
|
(5)
|
|
|
5
|
|
|
28
|
|
|
44
|
Pre-opening
expenses
|
|
|
—
|
|
|
538
|
|
|
—
|
|
|
—
|
|
|
538
|
Adjusted
EBITDA
|
|
$
|
1,915
|
|
$
|
5,030
|
|
$
|
2,450
|
|
$
|
(2,692)
|
|
$
|
6,703
|
(1)
|
Expense of $0.5
million related to the CDR land lease is included in interest
expense (income), net in the Canada segment. Cash payments related
to the CDR land lease were $0.5 million for the period
presented.
|
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 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 quarter and the prior
year first quarter are reported in Item 1 of the Company's
Quarterly Report on Form 10-Q for the quarter ended March 31, 2020. Constant currency information is
not a measure of financial performance under generally accepted
accounting principles in the United
States of America (US 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 US GAAP.
** 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 transactions. Expense related to the Master Lease
and CDR land lease is included in the interest expense (income),
net line item. 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) attributable to Century Casinos, Inc. shareholders 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 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-US 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
About Century Casinos, Inc.:
Century Casinos, Inc. is a casino entertainment company. The
Company owns and operates Century Casino & Hotels in
Cripple Creek and Central City, Colorado, and in Edmonton, Alberta, Canada; the Century Casino
in Cape Girardeau and Caruthersville, Missouri, in Calgary and St.
Albert, Alberta, Canada; Mountaineer Casino, Racetrack &
Resort in New Cumberland, West
Virginia; the Century Mile Racetrack and Casino ("CMR") in
Edmonton, Alberta, Canada; and
Century Bets! Inc. ("CBS"). CBS and CMR operate the pari-mutuel
off-track horse betting networks in southern and northern
Alberta, respectively. Through its
Austrian subsidiary, CRM, the Company holds a 66.6% ownership
interest in Casinos Poland Ltd., the owner and operator of eight
casinos throughout Poland; and a
75% ownership interest in Century Downs Racetrack and Casino in
Calgary, Alberta, Canada. The
Company operates one ship-based casino. 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 continues
to pursue other 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.
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, including the impact of the acquisition of the Acquired
Casinos on the Company's results, the impact of the current
coronavirus (COVID-19) pandemic and the timing for reopening our
casinos, the adequacy of cash flows from operations and available
cash to meet our future liquidity needs, particularly during the
extended periods of time in which we cannot open or operate our
casinos, operating efficiencies, synergies and operational
performance, the integration of the Acquired Casinos into our
business, the prospects for and timing and costs of new projects,
projects in development and other opportunities, our credit
agreement with Macquarie, 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, 2019, in Item 8.01 of
our Form 8-K filed with the SEC on May 8,
2020, 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.
* 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-US GAAP
financial measures. See discussion and reconciliation of Non-US
GAAP financial measures in Supplemental Information below.
View original content to download
multimedia:http://www.prnewswire.com/news-releases/century-casinos-inc-announces-first-quarter-2020-results-301062356.html
SOURCE Century Casinos, Inc.