CNTY Century Casinos Inc

COLORADO SPRINGS, Colo., March 31, 2011 /CNW/ -- Century Casinos, Inc. (NASDAQ Capital Market® and Vienna Stock Exchange: CNTY) today announced its financial results for the three months and year ended December 31, 2010. Fourth Quarter 2010 Highlights -- Net operating revenue was $15.6 million, a 29% increase from fourth quarter of 2009. -- Basic net earnings per share was $0.04, an increase from a basic net loss per share of $0.32 in the fourth quarter of 2009. For the Three Months -------------------- Amounts in thousands, except share data Ended December 31, ------------------ ------------------ Consolidated Results: 2010 2009 % Change ------------ ---- ---- -------- Net operating revenue $15,631 $12,131 29% ------------- ------- ------- --- Operating (loss) earnings from continuing operations (367) (9,027) 96% ---------------- ---- ------ --- Earnings (loss) from continuing operations 830 (9,220) 109% ---------------- --- ------ --- Earnings from discontinued operations - 1,582 (100%) ------------- --- ----- ------ Net earnings (loss) 830 (7,638) 111% ------------------- --- ------ --- Net earnings (loss) attributable to Century Casinos, Inc. 830 (7,638) 111% ------------------- --- ------ --- Adjusted EBITDA* $1,367 $1,725 (21%) ---------------- ------ ------ ----- Basic earnings per share: ------------------ Earnings (Loss) from continuing operations $0.04 $(0.39) 110% ---------------- ----- ------ --- Earnings from discontinued operations - - - ------------- --- --- --- Net earnings (loss) $0.04 $(0.32) 113% ------------------- ----- ------ --- Weighted-average common shares, basic 23,701,249 23,630,045 ---------------- ---------- ---------- Diluted earnings per share: ---------------- Earnings (Loss) from continuing operations $0.03 $(0.39) 108% ---------------- ----- ------ --- Earnings from discontinued operations - - - ------------- --- --- --- Net earnings (loss) $0.03 $(0.32) 109% ------------------- ----- ------ --- Weighted-average common shares, diluted 23,887,634 23,630,045 ---------------- ---------- ---------- For the Year ------------ Amounts in thousands, except share data Ended December 31, ------------------ ------------------ Consolidated Results: 2010 2009 % Change ------------ ---- ---- -------- Net operating revenue $60,692 $49,738 22% ------------- ------- ------- --- Operating (loss) earnings from continuing operations 1,067 (8,370) 113% ---------------- ----- ------ --- Earnings (loss) from continuing operations 1,022 (12,903) 108% ---------------- ----- ------- --- Earnings from discontinued operations - 24,722 (100%) ------------- --- ------ ------ Net earnings (loss) 1,022 11,819 (91%) ------------------- ----- ------ ----- Net earnings (loss) attributable to Century Casinos, Inc. 1,022 10,883 (91%) ------------------- ----- ------ ----- Adjusted EBITDA* $7,909 $7,941 0% ---------------- ------ ------ --- Basic earnings per share: ------------------ Earnings (Loss) from continuing operations $0.04 $(0.55) 107% ---------------- ----- ------ --- Earnings from discontinued operations - 1.01 (100%) ------------- --- ---- ------ Net earnings (loss) $0.04 $0.46 (91%) ------------------- ----- ----- ----- Weighted-average common shares, basic 23,613,612 23,575,709 ---------------- ---------- ---------- Diluted earnings per share: ---------------- Earnings (Loss) from continuing operations $0.04 $(0.55) 107% ---------------- ----- ------ --- Earnings from discontinued operations - 1.01 (100%) ------------- --- ---- ------ Net earnings (loss) $0.04 $0.46 (91%) ------------------- ----- ----- ----- Weighted-average common shares, diluted 23,795,358 23,575,709 ---------------- ---------- ---------- "With net operating revenue increasing at all of our operations, we are pleased with our overall performance for the fourth quarter, especially when considering the North American economic environment," said Erwin Haitzmann and Peter Hoetzinger, Co-Chief Executive Officers of Century Casinos. *See discussion and reconciliation of Non-GAAP financial measures in Supplemental Information below. Fourth Quarter 2010 Results Net operating revenue increased by $3.5 million, or 29%, for the three months ended December 31, 2010 compared to the three months ended December 31, 2009. The increase in net operating revenue is mainly attributable to the acquisition of the Calgary property, additional revenue generated from two new cruise line agreements, an increase in revenue in Edmonton, Central City and Cripple Creek and additional revenue earned from our recently acquired management agreement in Aruba. Operating loss from continuing operations decreased by $8.7 million, or 96% to $0.4 million for the three months ended December 31, 2010 compared to the three months ended December 31, 2009. The improvement is due primarily to the write-down of our equity investment in Casinos Poland of $9.0 million in 2009. In addition, operating earnings in 2010 decreased by $0.3 million at the Century Casino & Hotel in Edmonton. This decrease was offset by a $1.2 million gain recognized as a bargain purchase on the acquisition of Century Casinos Calgary and a $0.1 million increase at the Company's Century Casino & Hotel in Central City as a result of the increase in revenue during the three months ended December 31, 2010. Operating earnings in 2010 remained flat at less than $0.1 million at the Company's Century Casino & Hotel in Cripple Creek for the three months ended December 31, 2010. Adjusted EBITDA declined $0.4 million or 21%, to $1.4 million in the three months ended December 31, 2010 compared to the three months ended December 31, 2009. Basic net earnings per share ("EPS") for the three months ended December 31, 2010 was $0.04, an increase from a net loss per share of $0.32 for the three months ended December 31, 2009. EPS from continuing operations for the three months ended December 31, 2010 was $0.04 compared to a loss per share from continuing operations for the three months ended December 31, 2009 of $0.39. Year Ended 2010 Results Net operating revenue increased by $11.0 million, or 22%, for the year ended December 31, 2010 compared to the year ended December 31, 2009. The increase in net operating revenue is mainly attributable to the acquisition of the Calgary property, additional revenue generated from the two new cruise line agreements and an increase in revenue in Edmonton, slightly offset by a decrease in Cripple Creek. Operating earnings from continuing operations increased by $9.4 million or 113%, for the year ended December 31, 2010 compared to the year ended December 31, 2009. The increase is due to the write-down of our equity investment in Casinos Poland of $9.0 million in 2009 and overall increases in earnings from continuing operations in 2010. Adjusted EBITDA for the year ended December 31, 2010 remained flat at $7.9 million compared to the year ended December 31, 2009. Basic EPS for the year ended December 31, 2010 was $0.04, compared to basic EPS of $0.46 for the year ended December 31, 2009. EPS from continuing operations for the year ended December 31, 2010 was $0.04 compared to a loss per share from continuing operations for the year ended December 31, 2009 of $0.55. *See discussion and reconciliation of Non-GAAP financial measures in Supplemental Information below. Property Results (Continuing Operations) ---------------------------------------- (in thousands) -------------- Net Operating Revenue Adjusted EBITDA* ------------- ---------------- For the Three For the Three Months Months Ended December Ended December 31, 31, 2010 2009 2010 2009 ---- ---- ---- ---- Century Casino & Hotel, Edmonton 5,696 5,635 1,775 2,023 Century Casino, Calgary 2,286 - (255) - Century Casino & Hotel, Central City 4,138 3,604 883 775 Century Casino & Hotel, Cripple Creek 2,458 2,385 249 286 Cruise Ships 1,001 507 61 102 Corporate 52 - (1,346) (1,461) Consolidated 15,631 12,131 1,367 1,725 ====== ====== ===== ===== Balance Sheet and Liquidity As of December 31, 2010, the Company had $21.5 million in cash and cash equivalents, and $9.3 million in long-term debt obligations on its balance sheet compared to $37.0 million in cash and cash equivalents, and $14.7 million in long-term debt obligations at December 31, 2009. Conference Call Information The Company has posted the Form 10-K filed with the SEC for the year ended December 31, 2010 on its website at www.cnty.com/corporate/investor/sec-filings/. Century Casinos will host its fourth quarter 2010 earnings conference call on March 31, 2011 at 10:00 am MDT; 6:00 pm CET, respectively. U.S. domestic participants should dial 1-800-894-5910. For all other international participants please use +1-785-424-1052 to dial in. Participants may also listen to the call live or obtain a recording of the call on the Company's website at 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 FINANCIAL INFORMATION - US GAAP BASIS For the three months ended December 31, Amounts in thousands, except for share and per share information 2010 2009 ---- ---- Operating revenue: Gaming $13,467 $11,082 Hotel, bowling, food and beverage 3,193 2,202 Other 792 519 --- --- Gross revenue 17,452 13,803 Less: Promotional allowances (1,821) (1,672) Net operating revenue 15,631 12,131 ------ ------ Operating costs and expenses: Gaming 6,573 4,814 Hotel, bowling, food and beverage 2,632 1,618 General and administrative 5,428 4,336 Impairments and other write-offs, net of recoveries - 8,983 Depreciation 1,583 1,490 ----- ----- Total operating costs and expenses 16,216 21,241 Earnings from equity investment 218 83 Operating (loss) earnings from continuing operations (367) (9,027) ---- ------ Non-operating income (expense): Gain on bargain purchase 1,180 - Interest income 11 7 Interest expense (313) (340) Gains (losses) on foreign currency transactions and other 143 446 Non-operating income (expense), net 1,021 113 ----- --- Earnings (loss) from continuing operations before income taxes 654 (8,914) Income tax provision (176) 306 Earnings (loss) from continuing operations 830 (9,220) --- ------ Discontinued operations: Earnings from discontinued operations - - Gain on disposition of Century Casino Millennium - - Gain on disposition of Century Casinos Africa - 1,582 Income tax provision - - Earnings from discontinued operations - 1,582 --- ----- Net earnings (loss) 830 (7,638) Less: Net (loss) attributable to the noncontrolling interests (continuing operations) - - Net earnings attributable to the noncontrolling interests (discontinued operations) - - --- --- Net earnings (loss) attributable to Century Casinos, Inc. and subsidiaries $830 ($7,638) ==== ======= For the year ended December 31, Amounts in thousands, except for share and per share information 2010 2009 ---- ---- Operating revenue: Gaming $53,635 $46,496 Hotel, bowling, food and beverage 11,505 8,417 Other 2,914 1,914 ----- ----- Gross revenue 68,054 56,827 Less: Promotional allowances (7,362) (7,089) Net operating revenue 60,692 49,738 ------ ------ Operating costs and expenses: Gaming 24,150 19,068 Hotel, bowling, food and beverage 9,378 6,624 General and administrative 20,493 17,652 Impairments and other write-offs, net of recoveries 13 8,985 Depreciation 6,125 6,138 ----- ----- Total operating costs and expenses 60,159 58,467 Earnings from equity investment 534 359 Operating (loss) earnings from continuing operations 1,067 (8,370) ----- ------ Non-operating income (expense): Gain on bargain purchase 1,180 - Interest income 50 50 Interest expense (1,174) (3,773) Gains (losses) on foreign currency transactions and other 169 15 Non-operating income (expense), net 225 (3,708) --- ------ Earnings (loss) from continuing operations before income taxes 1,292 (12,078) Income tax provision 270 825 Earnings (loss) from continuing operations 1,022 (12,903) ----- ------- Discontinued operations: Earnings from discontinued operations - 2,674 Gain on disposition of Century Casino Millennium - 915 Gain on disposition of Century Casinos Africa - 21,859 Income tax provision - 726 Earnings from discontinued operations - 24,722 --- ------ Net earnings (loss) 1,022 11,819 Less: Net (loss) attributable to the noncontrolling interests (continuing operations) - (42) Net earnings attributable to the noncontrolling interests (discontinued operations) - 978 --- --- Net earnings (loss) attributable to Century Casinos, Inc. and subsidiaries $1,022 $10,883 ====== ======= CENTURY CASINOS, INC. AND SUBSIDIARIES FINANCIAL INFORMATION - US GAAP BASIS ------------------------------------- For the three months ended December 31, 2010 2010 2009 ---- ---- Basic and diluted earnings (loss) per share: Earnings (loss) from continuing operations $0.04 ($0.39) Earnings from discontinued operations - 0.07 Net earnings (loss) $0.04 ($0.32) ===== ====== Diluted earnings (loss) per share: Earnings (loss) from continuing operations $0.03 ($0.39) Earnings from discontinued operations - 0.07 Net earnings (loss) $0.03 ($0.32) ===== ====== Earnings (loss) from continuing operations $830 ($9,220) Earnings from discontinued operations - 1,582 Net earnings (loss) attributable to Century Casinos, Inc. and subsidiaries common shareholders $830 ($7,638) ==== ======= Weighted Average Shares Outstanding: Weighted average shares basic 23,701,249 23,630,045 Weighted average shares diluted 23,887,634 23,630,045 For the year ended December 31, 2010 2009 ---- ---- Basic and diluted earnings (loss) per share: Earnings (loss) from continuing operations $0.04 ($0.55) Earnings from discontinued operations - 1.01 Net earnings (loss) $0.04 $0.46 ===== ===== Diluted earnings (loss) per share: Earnings (loss) from continuing operations $0.04 ($0.55) Earnings from discontinued operations - 1.01 Net earnings (loss) $0.04 $0.46 ===== ===== Earnings (loss) from continuing operations $1,022 ($12,861) Earnings from discontinued operations - 23,744 Net earnings (loss) attributable to Century Casinos, Inc. and subsidiaries common shareholders $1,022 $10,883 ====== ======= Weighted Average Shares Outstanding: Weighted average shares basic 23,613,612 23,575,709 Weighted average shares diluted 23,795,358 23,575,709 Century Casinos, Inc. Condensed Consolidated Balance Sheets (Amounts in thousands) December 31, December 31, 2010 2009 ---- ---- Assets Current Assets $23,467 $39,627 Property and equipment, net 103,956 88,241 Other Assets 9,303 7,442 Total Assets $136,726 $135,310 ======== ======== Liabilities and Shareholders' Equity Current Liabilities $14,057 $10,984 Non-Current Liabilities 11,171 16,037 Shareholders' Equity 111,498 108,289 Total Liabilities and Shareholders' Equity $136,726 $135,310 ======== ======== CENTURY CASINOS, INC. AND SUBSIDIARIES SUPPLEMENTAL INFORMATION ------------------------ Century Casinos, Inc. Adjusted EBITDA Margins ** by Property (Unaudited) For the Three Months For the Year Ended December Ended December 31, 31, --------------- --------------- 2010 2009 2010 2009 ---- ---- ---- ---- Century Casino & Hotel, Edmonton 31% 36% 32% 35% Century Casino, Calgary (11%) - (2%) - Century Casino & Hotel, Central City 21% 22% 23% 24% Century Casino & Hotel, Cripple Creek 10% 12% 15% 18% Cruise Ships 6% 20% 14% 18% Consolidated Adjusted EBITDA Margin 9% 14% 13% 16% Century Casinos, Inc. Reconciliation of Adjusted EBITDA * to Earnings (Loss) from Continuing Operations by Property (Unaudited) For the Three Months Ended December 31, 2010 Amounts in thousands Three Months Ended December 31, 2010 Edmonton Calgary Central Cripple Cruise Corporate Total City Creek Ships Earnings (loss) from continuing operations $1,067 $871 $106 ($19) ($42) ($1,153) $830 Interest income (2) - - - - (9) (11) Interest expense 309 - - - - 4 313 Income taxes 28 (43) 52 (11) (2) (200) (176) Depreciation 360 87 675 278 105 78 1,583 Stock compensation - - - - - 96 96 Foreign currency 13 10 - - - (166) (143) Gain on bargain purchase - (1,180) - - - - (1,180) Disposition of fixed assets - - 50 1 - 4 55 Adjusted EBITDA* $1,775 ($255) $883 $249 $61 ($1,346) $1,367 ====== ===== ==== ==== === ======= ====== Three Months Ended December 31, 2009 Three Months Ended December 31, 2010 Edmonton Calgary Central Cripple Cruise Corporate Total City Creek Ships Earnings (loss) from continuing operations $958 - $58 $(21) $11 ($10,226) ($9,220) Interest income (6) - - - - (1) (7) Interest expense 298 - 21 1 - 20 340 Income taxes 411 - 25 (14) - (116) 306 Depreciation 345 - 671 315 91 68 1,490 Stock compensation - - - - - 238 238 Foreign currency 17 - - - - (423) (406) Impairments and other write-offs - - - 5 - 8,978 8,983 Disposition of fixed assets - - - - - 1 1 Adjusted EBITDA* $2,023 - $775 $286 $102 ($1,461) $1,725 ====== === ==== ==== ==== ======= ====== 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 Year Ended December 31, 2010 Amounts in thousands Year Ended December 31, 2010 Edmonton Calgary Central Cripple Cruise Corporate Total City Creek Ships Earnings (loss) from continuing operations $4,148 $266 $821 $257 $53 ($4,523) $1,022 Interest income (22) (1) - - - (27) (50) Interest expense 1,166 - - - - 8 1,174 Income taxes 133 441 454 158 2 (918) 270 Depreciation 1,406 272 2,698 1,150 357 242 6,125 Stock compensation - - - - - 482 482 Foreign currency 31 9 - - - (110) (70) Gain on bargain purchase - (1,180) - - - - (1,180) Impairments and other write- offs 10 - - 4 - (1) 13 Disposition of fixed assets 9 - 51 2 - 61 123 --- --- --- --- --- --- Adjusted EBITDA* $6,881 ($193) $4,024 $1,571 $412 ($4,786) $7,909 ====== ===== ====== ====== ==== ======= ====== Year Ended December 31, 2009 Edmonton Calgary Central Cripple Cruise Corporate Total City Creek Ships Earnings (loss) from continuing operations $3,311 - ($734) $241 $56 ($15,777) ($12,903) Interest income (10) - (1) - - (39) (50) Interest expense 1,121 - 2,329 144 - 179 3,773 Income taxes 1,327 - (498) 147 1 (152) 825 Depreciation 1,304 - 2,894 1,361 311 268 6,138 Stock compensation - - - - - 1,101 1,101 Foreign currency 75 - - - - (20) 55 Impairments and other write-offs - - - 5 - 8,980 8,985 Disposition of fixed assets - - 3 - - 14 17 Adjusted EBITDA* $7,128 0 $3,993 $1,898 $368 ($5,446) $7,941 ====== === ====== ====== ==== ======= ====== 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. 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 (loss) from continuing operations above. Not all of the aforementioned items occur in each reporting period, but have been included in the definition based on historical activity. ** The Company defines Adjusted EBITDA margin as Adjusted EBITDA divided by net operating revenue. Management uses this margin as one of several measures to evaluate the efficiency of the Company's casino operations. About Century Casinos, Inc.: Century Casinos, Inc. is an international casino entertainment company that owns and operates Century Casino & Hotels in Cripple Creek and Central City, Colorado, and in Edmonton, Alberta, Canada and the Century Casino in Calgary, Alberta, Canada. The Company also operates casinos aboard eleven luxury cruise vessels (Regatta, Insignia, Nautica, Marina, Mein Schiff 1, Wind Surf, Wind Star, Wind Spirit, Seven Seas Voyager, Seven Seas Mariner and Seven Seas Navigator) and signed contracts for casinos on two additional ships (Oceania Cruises' Riviera and TUI Cruises' Mein Schiff 2) that are expected to start operations in the coming months. 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 in Poland. The Company also manages the casino at the Radisson Aruba Resort, Casino & Spa in Aruba, Caribbean. 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® 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 31, 2011. 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. Peter Hoetzinger, Co CEO & President of Century Casinos, Inc., +1-719-689-5813, +43 664 355 3935, peter.hoetzinger@cnty.com Web Site: http://www.centurycasinos.com

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