COLORADO SPRINGS, Colorado,
May 10, 2010 /PRNewswire/ -- Century
Casinos, Inc. (Nasdaq and Vienna Stock Exchange: CNTY) announced
today its financial results for the three months ended March 31, 2010.
(All currency is in US$ unless otherwise noted)
For the Three Months
Amounts in thousands,
except share data Ended March 31,
Consolidated Results: 2010 2009 % Change
---- ---- --------
Net operating revenue $14,137 $11,999 17.8%
Operating earnings from
continuing operations 350 176 98.9%
Earnings (loss) from
continuing operations 130 (1,459) 109.0%
Earnings from
discontinued operations - 1,902 NM
Net earnings 130 443 (70.7%)
Net earnings
attributable to Century
Casinos, Inc. 130 345 (62.3%)
Adjusted EBITDA* 1,984 2,099 (5.5%)
Earnings per share:
Earnings (loss) from
continuing operations $0.01 $(0.07) NM
Net earnings $0.01 $0.01 -%
Weighted-average common
shares, basic 23,542,576 23,524,067 0.1%
Weighted-average common
shares, diluted 23,759,999 23,524,067 1.0%
For the first quarter of 2010, net operating revenue from
continuing operations was $14.1
million and consolidated Adjusted EBITDA* was $2.0 million. This represents a 17.8% increase in
net operating revenue from continuing operations over the same
quarter of last year ($12.0 million
in the first quarter of 2009) and a 5.5% decrease in consolidated
Adjusted EBITDA* ($2.1 million in the
first quarter of 2009). The Silver Dollar Casino ("Silver Dollar"),
which we acquired on January 13, 2010
(see Purchase of Silver Dollar below), contributed $1.7 million of net operating revenue and
$0.2 million of Adjusted EBITDA* for
the three months ended March 31,
2010. Net operating revenue at the Edmonton, Alberta, Canada casino, as reported
in U.S. dollars, was 11.8% higher than the same period in 2009.
Management attributes the increase in net operating revenue in
Edmonton to a 16.4% increase in
the average exchange rate between the U.S. dollar and Canadian
dollar in the first quarter of 2010 compared to the first quarter
of 2009. In Canadian dollars, net operating revenue decreased by
CAD 0.4 million, primarily due to
decreased Baccarat revenue. Net operating revenue aboard the cruise
ships on which we operate increased by $0.1
million for the three months ended March 31, 2010 compared to the three months ended
March 31, 2009, primarily due to the
operation of an additional cruise ship that went into service in
May 2009. These increases in net
operating revenue were partially offset by a decline in net
operating revenue of $0.3 million at
the Company's casino in Cripple Creek,
Colorado.
Operating earnings from continuing operations doubled to
$0.4 million in the first quarter of
2010 compared to $0.2 million for the
first quarter of 2009, primarily due to operating earnings of
$0.1 million contributed by the
Silver Dollar during the first quarter of 2010, an increase in
earnings of $0.1 million recognized
from the Company's equity investment in Poland and a decrease in share based
compensation costs of $0.2 million.
These items were partially offset by a decline in earnings from
operations at our Colorado
properties of $0.2 million.
The Company reported net earnings from continuing operations of
$0.1 million, or $0.01 per share, for the first quarter of 2010,
compared to a loss from continuing operations of $1.5 million, or $0.07 per share, for the first quarter of 2009.
This increase is due to the increase in operating earnings, the
reduction of interest expense of $0.6
million, the recognition of $0.1
million in insurance proceeds related to damages at a
property we formerly owned in Nevada and a reduction in recognized foreign
currency losses of $0.7 million when
comparing the first quarter of 2010 to the first quarter of 2009.
During 2009, we repaid all of our third party debt relating to our
Colorado casinos.
Adjusted for foreign currency transaction gains and losses and
the insurance revenue, the Company recognized a loss from
continuing operations of $0.1
million*, or $0.00 per share,
for the first quarter of 2010 compared to a loss from continuing
operations of $0.9 million, or
$0.04 per share, for the first
quarter of 2009.
Including discontinued operations, in the first quarter of 2009,
the Company reported net earnings attributable to Century Casinos,
Inc. and subsidiaries of $0.3
million, or $0.01 per share.
During the first quarter of 2009, the Company recorded a gain of
$0.9 million on the sale of its
casino in Prague, Czech
Republic.
Purchase of Silver Dollar Casino
On January 13, 2010, the Company
acquired the Silver Dollar and related land for total consideration
of $11.5 million, which included
$10.7 million plus net working
capital of $0.8 million. The Company
paid a $1.0 million deposit towards
the acquisition on November 6, 2009,
with the remainder paid on January 13,
2010, using cash on hand.
The Silver Dollar is a 93,000 square-foot casino facility
located on approximately seven acres of land in Calgary. The casino facility includes 504 slot
machines, 25 video lottery terminals, 16 table games, two
restaurants, a lounge, a 5,000 square-foot showroom, an 18,000
square-foot convention center and a 30-lane bowling alley. We are
in the process of rebranding the casino as the Century Casino
Calgary.
Share Repurchases
In March 2000, the Company's board
of directors approved a discretionary program to repurchase up to
$5.0 million of the Company's
outstanding common stock. In November
2009, the board of directors approved an increase of the
amount available to be repurchased to $15.0
million under the repurchase program. The repurchase program
has no set expiration or termination date. For the first quarter of
2010, the Company repurchased 57,330 shares of common stock at a
weighted average price of $2.46 per
share. As of March 31, 2010,
$14.7 million remains available under
the repurchase program.
Property Results (Continuing Operations)
Property Highlights
(Amounts in thousands)
Net Operating
Revenue Adjusted EBITDA*
For the Three For the Three
Months Months
Ended March 31, Ended March 31,
2010 2009 2010 2009
---- ---- ---- ----
Century Casino & Hotel,
Edmonton $5,360 $4,796 $1,649 $1,775
Silver Dollar Casino,
Calgary 1,742 - 179 -
Womacks Casino & Hotel,
Cripple Creek 2,265 2,572 192 494
Century Casino & Hotel,
Central City 4,172 4,163 921 1,063
Cruise Ships 598 468 157 58
Corporate - - (1,114) (1,291)
--- --- ------ ------
Consolidated net operating
revenue $14,137 $11,999 $1,984 $2,099
======= ======= ====== ======
Century Casino & Hotel (Edmonton,
Alberta, Canada) - Net operating revenue at the Century
Casino & Hotel in Edmonton
increased by 11.8% to $5.4 million
for the first quarter of 2010 compared to $4.8 million for the first quarter of 2009,
primarily due to a 16.4% increase in the average exchange rate
between the U.S. dollar and the Canadian dollar. In Canadian
dollars, net operating revenue decreased 6.7% to CAD 5.6 million for the first quarter of 2010
compared to CAD 6.0 million for the
first quarter of 2009, primarily due to a decrease of 22.3% in
table revenue. Management attributes this decline to a decrease in
player wagers at Baccarat and a decrease in hold percentage.
In Canadian dollars, Adjusted EBITDA* decreased by 22.5% to
CAD 1.7 million for the three months
ended March 31, 2010 from
CAD 2.2 million for the three months
ended March 31, 2009, which
management attributes to a decline in gaming revenue. Despite the
decline in CAD Adjusted EBITDA*, because of the favorable exchange
rate, Adjusted EBITDA* in USD was $1.7
million for the first quarter of 2010 compared to Adjusted
EBITDA* of $1.8 million for the first
quarter of 2009.
Womacks Casino (Cripple Creek,
Colorado, USA) - Net operating revenue at Womacks Casino in
Cripple Creek, Colorado decreased
$0.3 million, or 11.9%, from
$2.6 million for the first quarter of
2009 to $2.3 million for the first
quarter of 2010, primarily due to a decrease in gaming revenue.
Management attributes this decrease to a 2.2% decrease in coin-in
and a 12.8% decrease in hold percentage. Womacks' Adjusted EBITDA*
for the first quarter of 2010 was $0.2
million, compared to $0.5
million for the first quarter of 2009, a decrease of 61.1%.
Management attributes this decrease to the decline in gaming
revenue. Reduced variable gaming expenses were offset by an
increase in payroll at the casino as the casino is now open for 24
hours and has new table games. On July 2,
2009, gaming establishments in Colorado were permitted to raise the maximum
betting limit to $100, be open for 24
hours and have roulette and craps tables. The Company has
implemented these changes at its Colorado casinos. Management believes that any
benefit achieved from the change in gaming laws was offset by the
continued slow economy. The Cripple
Creek gaming market as a whole increased by 4.2% when
comparing the first quarter of 2010 to the first quarter of 2009.
The Company's share of the Cripple
Creek market decreased from 8.8% for the three months ended
March 31, 2009 to 8.1% for the three
months ended March 31, 2010.
Century Casino and Hotel (Central
City, Colorado, USA) - Net operating revenue at the Century
Casino and Hotel in Central City
remained flat at $4.2 million when
comparing the first quarter of 2010 to the first quarter of 2009.
The combined Central
City/Black Hawk gaming
market as a whole increased 8.6%. The Company's share of
Central City/Black Hawk gaming revenue decreased from 3.2%
for the three months ended March 31,
2009 to 2.9% for the three months ended March 31, 2010. During the fourth quarter 2009,
our largest competitor in the market opened a 536-room hotel with
pool and spa facilities in which we believe they invested
approximately $235 million.
Management believes that this negatively impacted the Century
Casino and Hotel's revenue and offset any potential revenue growth
from the new gaming laws in Colorado. Adjusted EBITDA* for the Century
Casino and Hotel in Central City
for the first quarter of 2010 decreased by 13.4% to $0.9 million compared to $1.1 million in the first quarter of 2009. The
decrease is primarily due to increased payroll as the casino is now
open 24 hours and also has new table games.
Cruise Ships - The Company's ship-based casinos contributed net
operating revenue of $0.6 million for
the first quarter of 2010 compared to $0.5
million in the first quarter of 2009. Adjusted EBITDA*
increased from $58,000 for the first
quarter of 2009 to $0.2 million for
the first quarter of 2010. The increase in net operating revenue
and adjusted EBITDA is primarily due to a new ship that went into
service in May 2009.
On March 10, 2010, the Company
entered into an exclusive long-term agreement with Windstar Cruises
("Windstar"), under which it will operate casinos on all Windstar
ships that Windstar currently operates and will place into service.
Currently, Windstar operates three passenger cruise ships. As of
April 24, 2010, we have begun casino
operations on all three of these ships.
Corporate - Corporate operations reported negative Adjusted
EBITDA* of $1.1 million for the first
quarter of 2010 compared to negative Adjusted EBITDA* of
$1.3 million for the first quarter of
2009. The lower negative Adjusted EBITDA* is primarily due to a
decrease in share based compensation expenses when comparing the
first quarter of 2010 to the first quarter of 2009.
Liquidity
Cash and cash equivalents totaled $27.8
million at March 31, 2010 and
the Company had working capital (current assets minus current
liabilities) of $18.2 million. During
2010, the Company paid $10.5 million
for its acquisition of the Silver Dollar. In April 2010, the Company paid $2.2 million for land in Cripple Creek, Colorado. The Company expects
to incur approximately $3.0 million
in capital expenditures at all its casinos over the next twelve
months.
The Company will post a copy of the 10-Q filed with the SEC for
the first quarter of 2010 on its website at
http://www.cnty.com/corporate/investor/sec-filings/ today.
Century Casinos will host its Q1 2010 Earnings Conference Call
today at 10:30 am MDT; 6:30 pm CEST, respectively. U.S. domestic
participants please dial +1-800-862-9098; all other international
participants please use +1-785-424-1051 to dial in. Participants
may also listen to the call live or obtain a recording of the call
on our website at
http://www.cnty.com/corporate/investor/financial-results/.
* See discussion and reconciliation of Non-GAAP financial
measures in Supplemental Information below.
CENTURY CASINOS, INC. AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION
Century Casinos, Inc.
Condensed Consolidated Statements of (Loss) Earnings (Unaudited)
(Amounts in thousands, except for share information)
For the Three
Months
Ended March 31,
2010 2009
---- ----
Operating revenue:
Gaming $12,582 11,472
Hotel, food and beverage 2,765 1,899
Other 579 409
--- ---
Gross revenue 15,926 13,780
Less promotional
allowances 1,789 1,781
----- -----
Net operating revenue 14,137 11,999
------ ------
Operating costs and
expenses:
Gaming 5,433 4,469
Hotel, food and beverage 2,110 1,540
General and
administrative 4,943 4,331
Depreciation 1,489 1,572
----- -----
Total operating costs and
expenses 13,975 11,912
Earnings from
unconsolidated
subsidiary 188 89
--- ---
Operating earnings from
continuing operations 350 176
--- ---
Non-operating income
(expense):
Interest income 8 9
Interest expense (291) (900)
Gains (losses) on foreign
currency transactions
and other 243 (525)
--- ----
Non-operating (expense),
net (40) (1,416)
--- ------
Earnings (loss) from
continuing operations
before income taxes 310 (1,240)
Income tax provision 180 219
--- ---
Earnings (loss) from
continuing operations 130 (1,459)
--- ------
Discontinued operations:
Earnings from
discontinued operations - 1,288
Gain on disposition of
Century Casino
Millennium - 877
Provision for income
taxes - 263
--- ---
Earnings from
discontinued operations - 1,902
--- -----
Net earnings 130 443
Less: Net loss
attributable to the
noncontrolling interests
(continuing operations) - (18)
Less: Net earnings
attributable to the
noncontrolling interests
(discontinued
operations) - 116
--- ---
Net earnings attributable
to Century Casinos, Inc.
and subsidiaries $130 345
==== ===
CENTURY CASINOS, INC. AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION
Century Casinos, Inc.
Earnings per Share
For the Three
Months
Ended March 31,
2010 2009
---- ----
Basic earnings per
share:
Earnings (loss) from
continuing operations $0.01 $(0.07)
Earnings from
discontinued
operations - 0.08
--- ----
Net earnings $0.01 $0.01
===== =====
Diluted earnings per
share:
Earnings (loss) from
continuing operations $0.01 $(0.07)
Earnings from
discontinued
operations - 0.08
--- ----
Net earnings $0.01 $0.01
===== =====
Weighted Average
Shares Outstanding:
Basic 23,542,576 23,524,067
Diluted 23,759,999 23,524,067
Amounts attributable
to Century Casinos,
Inc. and subsidiaries
common shareholders:
Earnings (loss) from
continuing operations $130 $(1,441)
Earnings from
discontinued
operations - 1,786
--- -----
Net earnings $130 $345
==== ====
Century Casinos, Inc.
Condensed Consolidated Balance Sheets (Unaudited)
(Amounts in thousands)
March 31, December 31,
2010 2009
---- ----
Assets
Current Assets $29,445 $39,627
Property and equipment, net 99,490 88,241
Other Assets 8,903 7,442
----- -----
Total Assets $137,838 $135,310
======== ========
Liabilities and Shareholders' Equity
Current Liabilities $11,196 $10,984
Non-Current Liabilities 17,591 16,037
Shareholders' Equity 109,051 108,289
------- -------
Total Liabilities and Shareholders'
Equity $137,838 $135,310
======== ========
CENTURY CASINOS, INC. AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION
Century Casinos, Inc.
Adjusted Net Loss (Unaudited)
(Amounts in thousands)
For the Three
Months
Ended March 31,
2010 2009
---- ----
Earnings (loss) from
continuing operations $130 $(1,459)
Foreign currency (gains)
losses (135) 525
Other income - insurance
reimbursement (108) -
---- ---
Adjusted Net Loss $(113) $(934)
===== =====
The Company defines Adjusted EBITDA margin as Adjusted EBITDA
(see below) divided by net operating revenue. Management uses this
margin as one of several measures to evaluate the efficiency of the
Company's casino operations.
Century Casinos, Inc.
Adjusted EBITDA Margins by Property (Unaudited)
For the Three
Months
Ended March 31,
2010 2009
---- ----
Century Casino & Hotel
(Edmonton) 31% 33%
Silver Dollar Casino (Calgary) 10% -
Womacks Casino & Hotel
(Cripple Creek) 8% 19%
Century Casino & Hotel
(Central City) 22% 26%
Cruise Ships 26% 12%
Corporate - -
Consolidated Adjusted EBITDA
Margin 14% 17%
CENTURY CASINOS, INC. AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION
The Company defines Adjusted EBITDA as earnings (loss) from
continuing operations before interest, income taxes, depreciation,
amortization, pre-opening expenses, non-cash stock based
compensation charges, asset impairment costs, gains (losses) on
disposition of fixed assets, discontinued operations, realized
foreign currency gains (losses) and certain other one-time items.
For the first quarter of 2010, the Company recognized revenue of
$0.1 million for insurance proceeds
received on damages to a property that the Company no longer owns.
Intercompany transactions consisting primarily of management fees
and interest, along with their related tax effects, are excluded
from the presentation of net earnings and Adjusted EBITDA reported
for each property. These adjustments have no effect on the
consolidated results. 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 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. Please see the reconciliation of
Adjusted EBITDA to earnings from continuing operations below. Not
all of the aforementioned items occur in each reporting period, but
have been included in the definition based on historical
activity.
Century Casinos, Inc.
Reconciliation of Adjusted EBITDA to Earnings (Loss) from
Continuing
Operations by Property (Unaudited)
For the Three Months Ended March 31, 2010
(Amounts in thousands)
Cripple Central
Edmonton Calgary Creek City
-------- ------- ------- -------
Earnings (loss)
from continuing
operations $719 $94 $(60) $162
Interest income (8) - - -
Interest expense 289 - - -
Income taxes 281 39 (37) 86
Depreciation 343 41 289 672
Stock
compensation - - - -
Foreign currency
losses (gains) 25 5 - -
Loss on
disposition of
fixed assets - - - 1
Other one-time
items - - - -
--- --- --- ---
Adjusted EBITDA* $1,649 $179 $192 $921
====== ==== ==== ====
Cruise
Ships Corporate Total
------ --------- -----
Earnings (loss) from
continuing
operations $67 $(852) $130
Interest income - - (8)
Interest expense - 2 291
Income taxes 2 (191) 180
Depreciation 88 56 1,489
Stock compensation - 143 143
Foreign currency
losses (gains) - (165) (135)
Loss on disposition
of fixed assets - 1 2
Other one-time items - (108) (108)
--- ---- ----
Adjusted EBITDA* $157 $(1,114) $1,984
==== ======= ======
CENTURY CASINOS, INC. AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION
Century Casinos, Inc.
Reconciliation of Adjusted EBITDA to Earnings (Loss) from
Continuing
Operations by Property (Unaudited)
For the Three Months Ended March 31, 2009
(Amounts in thousands)
Cripple Central Cruise
Edmonton Creek City Ships
-------- ------- ------- ------
Earnings (loss)
from continuing
operations $881 $21 $(131) $-
Interest income (2) - (1) -
Interest expense 249 64 537 -
Income taxes 349 13 (93) -
Depreciation 299 396 751 58
Stock compensation - - - -
Foreign currency
losses (1) - - -
Impairments and
other write-offs - - - -
Loss on disposition
of fixed assets - - - -
--- --- --- ---
Adjusted EBITDA* $1,775 $494 $1,063 $58
====== ==== ====== ===
Corporate Total
--------- -----
Earnings (loss) from
continuing operations $(2,230) $(1,459)
Interest income (6) (9)
Interest expense 50 900
Income taxes (50) 219
Depreciation 68 1,572
Stock compensation 349 349
Foreign currency losses 526 525
Impairments and other
write-offs 2 2
Loss on disposition of
fixed assets - -
--- ---
Adjusted EBITDA* $(1,291) $2,099
======= ======
Century Resorts Alberta
Reconciliation of Adjusted EBITDA to Net Earnings (Unaudited)
in Canadian Dollars
(Amounts in thousands)
For the three For the three
------------- -------------
months ended months ended
March 31, 2010 March 31, 2009
-------------- --------------
Net earnings CAD 804 CAD 1,095
Interest income (8) (2)
Interest expense 301 310
Income taxes 291 432
Depreciation 357 373
Foreign currency (gains) (35) -
Loss on disposition of
fixed assets 1 -
--- ---
Adjusted EBITDA* CAD 1,711 CAD 2,208
============== ============
CENTURY CASINOS, INC. AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION
Silver Dollar Casino
Reconciliation of Adjusted EBITDA to Net Earnings (Unaudited)
in Canadian Dollars
(Amounts in thousands)
January 13,
2010
------------
to
March 31, 2010
--------------
Net earnings CAD 108
Interest income -
Interest expense -
Income taxes 41
Depreciation 43
Foreign currency
(gains) (3)
---
Adjusted EBITDA* CAD 189
==========
About Century Casinos, Inc.:
Century Casinos, Inc. is an international casino entertainment
company that owns and operates the Womacks Casino & Hotel in
Cripple Creek, Colorado, the
Century Casino & Hotel in Central
City, Colorado, the Century Casino & Hotel in
Edmonton, Canada and the Silver
Dollar Casino in Calgary, Canada.
The Company also operates casinos aboard eight luxury cruise
vessels (Silver Cloud, Regatta, Insignia, Nautica, Mein Schiff, Wind Surf, Wind Star, Wind Spirit).
Through its Austrian subsidiary, Century Casinos Europe GmbH, the
Company holds a 33.3% ownership interest in Casinos Poland Ltd.,
the owner and operator of seven full casinos and one slot casino in
Poland. Century Casinos, Inc.
continues to pursue other international projects in various stages
of development.
For more information about Century Casinos, visit our website at
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 include,
but are not limited to, expected competition, the impact of new
gaming laws, plans for our casinos and the impact of the economic
downturn. 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
sections entitled "Risk Factors" under Item 1A in our Annual Report
on Form 10-K filed on March 15, 2010.
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.