Century Casinos Announces 100% Ownership Of Central City, CO, Casino
January 02 2008 - 6:00AM
PR Newswire (US)
COLORADO SPRINGS, Colo., Jan. 2 /PRNewswire-FirstCall/ -- Century
Casinos, Inc. (NASDAQ:CNTY) and (VSE: CNTY) announced today that
the Company has acquired the remaining 35% of all issued and
outstanding partnership units of CC Tollgate LLC ("Tollgate") that
were owned by Central City Venture LLC ("Venture"), a
non-affiliated US company. Tollgate owns and operates the Century
Casino & Hotel in Central City, Colorado. The transaction
closed on December 31, 2007. The purchase price for the 35% equity
interest amounts to $2.1 million. In addition, Venture was repaid a
$1.0 million loan previously granted to Tollgate by Venture as well
as $0.2 million of accrued interest. In accordance with US
accounting standards, because the Company previously allocated
Tollgate's losses against the $1.0 million loan, the Company will
be required to recognize the repayment of the $1.0 million loan as
a charge to the income statement in the fourth quarter 2007. Since
its opening in July 2006, the Century Casino & Hotel has shown
consistent growth in net operating revenues and Adjusted EBITDA*.
The Company's purchase of the remaining 35% interest in CC Tollgate
LLC will not have an impact on Adjusted EBITDA*, as the minority
interest's share of the net losses were reported after Adjusted
EBITDA*. However, net income or losses will be reported at 100%
(instead of the previous 65%) going forward. The Century Casino
& Hotel currently operates with 576 slot machines, 9 table
games, 26 hotel rooms and 2 restaurants. The Company now also owns
a property across from the casino with a potential of 30,000 square
feet after build out, the use of which has not yet been determined.
*The Company defines Adjusted EBITDA as earnings before interest,
income taxes, depreciation, amortization, minority interest,
pre-opening expenses, non-cash stock based compensation charges,
asset impairment costs, gains (losses) on disposition of fixed
assets, discontinued operations and certain other one-time items.
Adjusted EBITDA 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 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.
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. Not all of the
aforementioned benefits and costs occur in each reporting period,
but have been included in the definition based on historic
activity. 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 Central City, Colorado, the Century
Casino & Hotel in Edmonton, Alberta, Canada, and the Century
Casino Millennium in the Marriott Hotel in Prague, Czech Republic.
The Company also operates casinos aboard the Silver Cloud, The
World of ResidenSea, and the vessels of Oceania Cruises. 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, 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, CEO and 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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