COLORADO SPRINGS, Colo., Aug. 9 /PRNewswire-FirstCall/ -- Century
Casinos, Inc. (NASDAQ:CNTY) (Vienna Stock Exchange: CNTY) reported
net operating revenues of $22,673,000 for the quarter ended June
30, 2007, compared to net operating revenues of $11,869,000 for the
quarter ended June 30, 2006. Casino revenue increased by
$10,229,000 or 91% for the quarter ended June 30, 2007 over the
same 2006 period, primarily due to the opening of the casino in
Central City, Colorado on July 11, 2006, the opening of the casino
in Edmonton, Alberta, Canada on November 17, 2006 and the opening
of a new casino in Newcastle, South Africa in December 2006. For
the quarter ended June 30, 2007, the Company reported net earnings
of $1,041,000 or $0.05 per share compared to net earnings of
$1,331,000 or $0.06 per share for the quarter ended June 30, 2006.
The decrease is primarily due to increased interest charges and
increased depreciation charges resulting from our new properties.
Adjusted EBITDA* for the second quarter of 2007 was $4,590,000
compared to $2,214,000 in the second quarter of 2006, a 107%
increase. For the quarter ended June 30, 2007, earnings from
operations increased $1,328,000, or 126%, compared to the quarter
ended June 30, 2006, primarily the result of the opening of the
three casinos mentioned above. On a Company-wide basis, casino
operating margins** for the quarter ended June 30, 2007 were 60.6%
compared to 61.3% for the same period in 2006 primarily due to
increased marketing efforts and associated expenses at our casinos.
For the six months ended June 30, 2007, the Company reported net
earnings of $2,583,000, or $0.11 per basic share, compared to net
earnings of $3,021,000, or $0.13 per basic share, for the six
months ended June 30, 2006. The Company reported a 105% increase in
net operating revenue to $43,734,000 for the six months ended June
30, 2007 from $21,345,000 in the same 2006 period. Adjusted EBITDA*
for the six month period was $9,796,000 in 2007 compared to
$4,606,000 in the same 2006 period. The decrease in net earnings
for the six months ended June 30, 2007 is primarily due to
increased interest charges and depreciation charges relating to our
new properties. Management believes that a string of severe winter
storms negatively affected our businesses in Colorado for
approximately seven straight weeks beginning in December 2006 and
ending in January 2007, which consequently had a negative impact on
year to date reported earnings and adjusted EBITDA*. Cripple Creek,
Colorado Three months ended June 30, 2007 vs. 2006 Net operating
revenue at Womacks Casino in Cripple Creek, Colorado increased to
$4,440,000, or 11.9%, for the second quarter of 2007 compared to
$3,968,000 reported for the same period in 2006. Total operating
expenses increased $272,000, or 9.4%, to $3,156,000 in the second
quarter of 2007 from $2,884,000 in the second quarter of 2006.
Casino operating margins** decreased to 69.2% for the second
quarter of 2007 from 73.4% for the same 2006 quarter due primarily
to increased marketing efforts and related expenses. Net earnings
reported for Womacks in the second quarter of 2007 were $793,000
compared to $616,000 in the second quarter of 2006. Womacks'
adjusted EBITDA* for the second quarter of 2007 was $1,678,000
compared to $1,494,000 in the second quarter of 2006. Six months
ended June 30, 2007 vs. 2006 Womacks' casino revenue was $9,350,000
for the first six months of 2007 compared to $8,642,000 for the
first six months of 2006. Casino expenses increased from $2,363,000
in the 2006 period compared to $2,928,000 for the 2007 period,
primarily due to the increase in gaming revenues and increased
casino marketing efforts. Net earnings reported for Womacks for the
first six months of 2007 were $1,347,000 compared to $1,169,000 for
the first six months of 2006. As part of the effort to provide our
guests with the latest exciting games in a new, relaxed and
convenient atmosphere, the casino is currently undergoing a $1.4
million renovation project expected to be completed for the
Christmas season. Central City, Colorado Three months ended June
30, 2007 vs. 2006 We opened a casino and hotel in Central City,
Colorado on July 11, 2006. Prior to July 11, 2006, operating
expenses consisted primarily of pre-opening and non-capitalizable
construction expenses. For the three months ended June 30, 2007,
net operating revenue at this facility was $5,060,000. Casino
operating margins** were 62.9% for the three months ended June 30,
2007, which continues to be below our expectations. Although
revenues have not yet met our expectations, gaming revenue has
grown consistently since opening, with our highest monthly revenue
occurring in June 2007. Management is continuing to evaluate
methods to increase revenues at the property. Management has
focused on the development of the casino's player club memberships,
with results being better than expected. We now have approximately
63,000 players in our player club database. Having built this
database through customer visits, management's marketing strategy
will focus on direct marketing to these players. The Central City
operation reported net earnings of $50,000 for the quarter ended
June 30, 2007. Central City's adjusted EBITDA* for the second
quarter of 2007 was $1,078,000. Six months ended June 30, 2007 vs.
2006 For the six months ended June 30, 2007, net operating revenue
at this facility was $9,575,000, the highest at any of our
properties. Casino operating margins** were 61.4% for the six
months ended June 30, 2007. The Central City operation reported a
net loss of $5,000 for the six months ended June 30, 2007. Central
City's adjusted EBITDA* for the first six months of 2007 was
$2,133,000. Edmonton, Alberta, Canada Three months ended June 30,
2007 vs. 2006 We opened a casino and hotel in Edmonton, Alberta,
Canada on November 17, 2006. Prior to this date, operating expenses
for this segment consisted primarily of pre-opening and
non-capitalizable construction expenses. Edmonton reported
$4,480,000 in net operating revenue for the quarter ended June 30,
2007. Casino operating margins** were 64.2% in the second quarter
of 2007. Due to poor attendance, the dinner theater has been
closed. Management's current plan is to reopen the facility as a
conference center/showroom. Edmonton reported net earnings of
$298,000 and adjusted EBITDA* of $1,162,000 in the second quarter
2007. Six months ended June 30, 2007 Edmonton reported $8,632,000
in net operating revenue for the six months ended June 30, 2007.
Casino operating margins** were 62.3% for the six months ended June
30, 2007. Delays in opening the property's hotel hampered hotel,
food and beverage revenues for the period. The hotel opened in
March 2007. Operating results of the hotel subsequent to opening
have been below our expectations, primarily a result of low weekday
occupancy rates. Management is currently reviewing the cost and
staffing structure of the operation to bring them in line with
current revenue levels. In addition, the casino has received
permission from the Alberta Gaming and Liquor Commission to
gradually increase the number of slot machines by nine percent,
from 600 to a total of 654, until the beginning of September 2007.
We expect to have 654 machines in operation by September 2007.
Caledon, South Africa Three months ended June 30, 2007 vs. 2006 A
deterioration of the Rand, quarter over quarter, has had a
significant impact on the results reported in dollars. As a result,
Caledon's casino revenue decreased 3.2% to $3,810,000 for the
second quarter of 2007 compared to $3,934,000 reported in the
second quarter of 2006. Casino revenue, in Rand, increased by 7.7%
to ZAR 27,096,000 for the second quarter of 2007 compared to ZAR
25,167,000 in the second quarter of 2006 primarily from slot
machine win and a 4% increase in the average number of slot
machines for the quarter. The Caledon recently increased the number
of slot machines on the floor to 370. Casino expenses decreased
4.2% from the second quarter of 2006 to the second quarter of 2007
primarily the result of the deterioration of the Rand. Casino
expenses, in Rand, increased 5.8% to ZAR 10,564,000 for the second
quarter of 2007 compared to ZAR 9,985,000, primarily due to
incremental fees on gaming revenues and increased advertising
expenses. Casino operating margins** (based on the Rand) were 61.0%
for the three months ended June 30, 2007 compared to 60.3% for the
same period in 2006. Net earnings in the second quarter of 2007
were $844,000 compared to $736,000 in the second quarter of 2006,
primarily the result of the property's ability to leverage its
overhead. In addition, dividends of $57,000 were paid to preference
shareholders during the second quarter of 2007. Caledon's adjusted
EBITDA* for the second quarter of 2007 was $1,797,000 compared to
$1,665,000 in the second quarter of 2006. Six months ended June 30,
2007 vs. 2006 Caledon's casino revenue in USD decreased by $547,000
to $7,457,000 for the six months ended June 30, 2007, the result of
the deterioration of the Rand. Casino revenue, in Rand, increased
by 6.3% during the first six months of 2007 to ZAR 53,433,000
compared to ZAR 50,268,000 in 2006. Casino expenses, in Rand,
increased by ZAR 1,723,000, or 9.1% during the first six months of
2007 compared to 2006. Casino operating margins**, excluding the
effect of the Rand/Dollar conversion rate, declined to 61.2% for
the six months ended June 30, 2007 from 62.2% for the six months
ended June 30, 2006. Net earnings for the first six months of 2007
were $1,509,000 compared to $1,882,000 for the first six months of
2006. The decrease in net earnings is primarily due to the payment
of dividends to preference shareholders of approximately $276,000
during the six months ended June 30, 2007 and the impact of the
deterioration of the Rand. Newcastle, South Africa Three months
ended June 30, 2007 vs. June 30, 2006 We acquired our interest in
Newcastle, South Africa on April 1, 2006. Between April 1, 2006 and
December 2, 2006, the operations of the casino were limited and our
efforts were focused on the construction of a new facility. For the
three months ended June 30, 2007, net operating revenue at the new
facility was $3,057,000 compared to net operating revenues of
$2,050,000 at the original property. Casino operating margins** for
the three months ended June 30, 2007 were 60.8%, generally
consistent with our other South Africa property. The Newcastle
operation provided the Company with net earnings of $276,000 for
the quarter ended June 30, 2007 compared to $270,000 for the
quarter ended June 30, 2007. The increase in net earnings is
primarily due to increased earnings from operations at the new
property offset by increased interest charges incurred on the debt
used to construct the new casino and the deterioration of the Rand
versus the Dollar. Newcastle's adjusted EBITDA* for the three
months ended June 30, 2007 was $1,087,000 compared to $686,000 for
the three months ended June 30, 2006. Six months ended June 30,
2007 For the six months ended June 30, 2007, Newcastle's casino
operating revenues were $5,050,000. Casino operating margins** for
the six months ended June 30, 2007 were 58.4%. The casino provided
the Company with net earnings of $537,000 and adjusted EBITDA* of
$1,978,000 for the period ended June 30, 2007. The Company will
post a slide show presentation of the results of operations for the
second quarter of 2007 on its web site at
http://www.centurycasinos.com/ on Thursday, August 9, 2007. On
Friday, August 10, 2007, Century Casinos will host a "Q2 2007
Earnings" conference call, at 9:00am EDT; 3:00pm CET respectively.
US domestic participants please dial +1-800-909-5202, all other
international participants please use +1- 785-830-7975 to dial-in.
For a recording of the call, please visit our website at
http://www.cnty.com/corporate/investor/financial-results/. * See
discussion of adjusted EBITDA below. ** See discussion of casino
operating margins below. CENTURY CASINOS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (Unaudited) Amounts
in thousands, except for share information For The Three Months For
The Six Months Ended June 30, Ended June 30, 2007 2006 2007 2006
Operating Revenue: Casino $21,489 $11,260 $41,378 $20,406 Hotel,
food and beverage 2,979 1,272 5,846 2,354 Other 446 321 939 470
24,914 12,853 48,163 23,230 Less promotional allowances 2,241 984
4,429 1,885 Net operating revenue 22,673 11,869 43,734 21,345
Operating Costs and Expenses: Casino 8,473 4,357 16,568 7,654
Hotel, food and beverage 2,542 1,000 5,125 1,830 General and
administrative 6,984 4,516 12,785 7,559 Impairments and other
write-offs, net of (recoveries) 40 7 25 15 Depreciation 2,304 933
4,323 1,705 Total operating costs and expenses 20,343 10,813 38,826
18,763 Earnings from Unconsolidated Subsidiary 54 - 54 - Earnings
from Operations 2,384 1,056 4,962 2,582 Non-Operating Income
(Expense): Interest income 443 319 717 597 Interest expense (1,699)
(411) (3,631) (615) Other (expense) income, net (41) 225 787 319
Non-operating (expense) income, net 1,297 133 (2,127) 301 Earnings
before Income Taxes, Minority Interest and Preferred Dividends
1,087 1,189 2,835 2,883 Provision for income taxes 304 105 628 461
Earnings before Minority Interest and Preferred Dividends 783 1,084
2,207 2,422 Minority interest in subsidiary losses, net 315 247 652
599 Preferred dividends issued by subsidiary (57) - (276) - Net
Earnings $1,041 $1,331 $2,583 $3,021 Earnings Per Share: Basic
$0.05 $0.06 $0.11 $0.13 Diluted $0.04 $0.06 $0.11 $0.13
Reconciliation to adjusted EBITDA* Net Earnings $1,041 $1,331
$2,583 $3,021 Minority interest (315) (247) (652) (599) Interest
income (443) (319) (717) (597) Interest expense 1,699 411 3,631 615
Income tax expense 304 105 628 461 Depreciation 2,304 933 4,323
1,705 Adjusted EBITDA $4,590 $2,214 $9,796 $4,606 CENTURY CASINOS,
INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited) Amounts in thousands June 30, December 31, 2007 2006
Assets Current Assets $19,752 $41,167 Other Assets 168,248 156,693
Total Assets $188,000 $197,860 Liabilities and Shareholders' Equity
Current Liabilities 22,293 35,991 Non-Current Liabilities 61,469
61,442 Shareholders' Equity 104,238 100,427 Total Liabilities and
Shareholders' Equity $188,000 $197,860 *Adjusted EBITDA, which we
define as earnings before interest, income taxes, depreciation,
amortization and minority interest, is not considered a measure of
performance recognized under accounting principles generally
accepted in the United States of America. Management believes that
adjusted EBITDA is a valuable measure of the relative performance
among its operating segments. 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 interest income, interest expense, income tax
expense, depreciation, amortization and minority interest expense
associated with the varying levels of capital expenditures for
infrastructure required to generate revenue, and the often high
cost of acquiring existing operations. EBITDA (Earnings before
interest, taxes, depreciation and amortization) is used by our
lending institutions 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.
**We define casino operating margins as casino revenues less casino
expenses divided by casino revenues. Management uses this measure
to evaluate the efficiency of our casino operations. About Century
Casinos, Inc: Century Casinos, Inc. is an international casino
entertainment company that owns and operates the Womacks Casino and
Hotel in Cripple Creek, Colorado, the Century Casino & Hotel in
Edmonton, Alberta, Canada; operates the casinos aboard the Silver
Cloud, The World of ResidenSea, and the vessels of Oceania Cruises;
owns a 65% interest in, and has a management contract for, Century
Casino & Hotel in Central City, Colorado. Through its
subsidiary Century Casinos Africa (Pty) Limited, it owns and
operates The Caledon Hotel, Spa & Casino near Cape Town, South
Africa, as well as 60% of, and provides technical casino services
to, Century Casino Newcastle, in Newcastle, South Africa.
Furthermore, the Company's Austrian subsidiary, Century Casinos
Europe GmbH, owns and operates the Century Casino Millennium in the
Marriott Hotel in Prague, Czech Republic; and holds a 33.3%
ownership interest in Casinos Poland Ltd, the owner and operator of
seven casinos and one slot arcade in Poland. The Company continues
to pursue other international projects in various stages of
development. For more information about Century Casinos, visit our
new website at http://www.centurycasinos.com/. Century Casinos'
common stock trades on The NASDAQ Capital Market(R) and the Vienna
Stock Exchange under the symbol CNTY. This release may contain
"forward-looking statements" within the meaning of 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 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 filed on March 16, 2007. 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. DATASOURCE:
Century Casinos, Inc. CONTACT: Peter Hoetzinger, Co CEO &
President, +1-719-689-5813, +43 664 355 3935, , or Larry Hannappel,
Senior Vice President, +1-719-229-6448, , both of Century Casinos,
Inc. Web site: http://www.centurycasinos.com/
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