COLORADO SPRINGS, Colo.,
Aug. 12, 2011 /PRNewswire/ -- Century
Casinos, Inc. (NASDAQ Capital MarketĀ® and Vienna Stock Exchange:
CNTY) today announced its financial results for the three and six
months ended June 30, 2011.
Second Quarter 2011 Highlights
- Net operating revenue was $18.0
million, a 21% increase compared to the three months ended
June 30, 2010.
- Adjusted EBITDA* was $2.8
million, a 38% increase from the three months ended
June 30, 2010.
- Net earnings per share was $0.03
compared to a net loss of $0.01 for
the three months ended June 30,
2010.
|
|
|
For the
Three Months
|
For the Six
Months
|
|
Amounts in thousands, except share and per share
data
|
Ended June 30,
2011
|
Ended June 30,
2011
|
|
Consolidated
Results:
|
2011
|
2010
|
%
Change
|
2011
|
2010
|
%
Change
|
|
Net operating revenue
|
$18,002
|
$14,940
|
21%
|
$35,117
|
$29,077
|
21%
|
|
Earnings from
operations
|
977
|
344
|
184%
|
1,733
|
694
|
150%
|
|
Net earnings (loss)
|
644
|
(259)
|
349%
|
1,008
|
(129)
|
881%
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA*
|
$2,760
|
$2,005
|
38%
|
$5,284
|
$3,989
|
33%
|
|
|
|
|
|
|
|
|
|
Earnings per
share:
|
|
|
|
|
|
|
|
Basic
|
$0.03
|
($0.01)
|
400%
|
$0.04
|
($0.01)
|
500%
|
|
Diluted
|
$0.03
|
($0.01)
|
400%
|
$0.04
|
($0.01)
|
500%
|
|
Weighted-average common
shares:
|
|
|
|
|
|
|
|
Basic
|
23,717,165
|
23,815,936
|
|
23,714,215
|
23,815,936
|
|
|
Dilutive
|
24,026,095
|
23,815,936
|
|
24,015,947
|
23,815,936
|
|
|
|
|
|
|
|
|
|
|
|
"We are very pleased with our performance for the second
quarter, especially when considering that each of our operations
posted increases in revenue as well as Adjusted EBITDA and overall
earnings from operations almost tripled," said Erwin Haitzmann and
Peter Hoetzinger, Co-Chief Executive Officers of Century Casinos.
"Initial results for the first half of the third quarter indicate
further improvement," they continued.
Second Quarter and Six Month 2011 Results
Net operating revenue increased by $3.1
million or 21% and $6.0
million or 21% for the three and six months ended
June 30, 2011 compared to the three
and six months ended June 30, 2010,
respectively, due to increased revenue from all properties. The
increase in net operating revenue at our Canadian properties is due
in part to higher customer volumes and an increase in the average
exchange rate between the U.S. dollar and Canadian dollar of 5.8%
and 5.6% for the three and six months ended June 30, 2011 compared to the three and six
months ended June 30, 2010,
respectively.
The increase in net operating revenue at our Central City property is due in part to
increased table games revenue generated from craps and player
banked poker, increased customer volumes, increased revenue from
slot machines that were moved from the lower level to the main
level and increased video poker play. The increase in net operating
revenue at our Cripple Creek
property is due in part to increased slot revenue from new slot
machines, additional table games revenue generated after moving the
table games pit from the back of the casino to the front, improved
customer service and new marketing strategies aimed at improving
the gaming floor atmosphere and differentiating our casino from
competitors.
The increase in net operating revenue from our ship-based
casinos and other is primarily due to additional ship-based casinos
placed into operation during the three and six months ended
June 30, 2011 as compared to the
three and six months ended June 30,
2010.
Total operating costs and expenses increased by $2.7 million or 18% and $5.1 million or 18% for the three and six months
ended June 30, 2011 compared to the
three and six months ended June 30,
2010, respectively, due to increased operating costs at all
of our properties. Total operating costs and expenses at our
property in Edmonton increased
primarily due to the increase in the average exchange rate between
the U.S. dollar and Canadian dollar of 5.8% and 5.6% for the three
and six months ended June 30, 2011
compared to the three and six months ended June 30, 2010, respectively.
Total operating costs and expenses at our property in
Calgary increased due to the
addition of a player's club point redemption program and additional
staffing costs incurred in order to provide improved customer
service for the three and six months ended June 30, 2011 compared to the three and six
months ended June 30, 2010. The
increase is also attributable to an increase in the average
exchange rate between the U.S. dollar and Canadian dollar of 5.8%
and 5.6% for the three and six months ended June 30, 2011 compared to the three and six
months ended June 30, 2010,
respectively.
Total operating costs and expenses at our Colorado properties increased due to increased
marketing costs from more aggressive marketing campaigns, increased
gaming taxes as a result of higher gaming revenue and increased
staffing costs in order to provide improved customer service for
the three and six months ended June 30,
2011 compared to the three and six months ended June 30, 2010.
Total operating costs and expenses from our ship-based casinos
increased for the three and six months ended June 30, 2011 compared to the three and six
months ended June 30, 2010 as a
result of increased concession and annual fees paid to cruise ship
operators for the ability to operate ship-based casinos.
Net earnings increased by $0.9
million and $1.1 million for
the three and six months ended June 30,
2011 compared to the three and six months ended June 30, 2010, respectively. The increase is due
to increased earnings from operations at our Edmonton, Central
City and Cripple Creek
properties offset by losses from operations at our Calgary property. In addition, the increase in
the average exchange rate between the U.S. dollar and Canadian
dollar of 5.8% and 5.6% for the three and six months ended
June 30, 2011 compared to the three
and six months ended June 30, 2010,
respectively, contributed to the increase in net earnings.
Property Results
(in thousands)
|
|
|
|
|
Net
Operating
Revenue
|
Adjusted EBITDA*
|
Net
Operating
Revenue
|
Adjusted EBITDA*
|
|
|
For the
Three
Months
|
For the
Three
Months
|
For the Six
Months
|
For the Six
Months
|
|
Ended June
30,
|
Ended June
30,
|
Ended June
30,
|
Ended June
30,
|
|
|
2011
|
2010
|
2011
|
2010
|
2011
|
2010
|
2011
|
2010
|
|
Century Casino &
Hotel, Edmonton
|
6,185
|
5,497
|
2,163
|
1,766
|
11,938
|
10,857
|
4,003
|
3,415
|
|
Century Casino,
Calgary
|
2,467
|
2,098
|
120
|
(26)
|
5,056
|
3,840
|
219
|
153
|
|
Century Casino &
Hotel, Central City
|
4,520
|
4,210
|
951
|
947
|
8,920
|
8,382
|
1,909
|
1,868
|
|
Century Casino &
Hotel, Cripple Creek
|
3,211
|
2,617
|
685
|
490
|
6,049
|
4,882
|
1,216
|
682
|
|
Cruise Ships and Other
|
1,619
|
518
|
314
|
79
|
3,154
|
1,116
|
546
|
236
|
|
Corporate
|
-
|
-
|
(1,473)
|
(1,251)
|
-
|
-
|
(2,609)
|
(2,365)
|
|
Consolidated
|
18,002
|
14,940
|
2,760
|
2,005
|
35,117
|
29,077
|
5,284
|
3,989
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance Sheet and Liquidity
As of June 30, 2011, the Company
had $19.8 million in cash and cash
equivalents and $10.8 million in debt
obligations on its balance sheet compared to $21.5 million in cash and cash equivalents and
$13.5 million in debt obligations at
December 31, 2010.
Conference Call Information
Today the Company will post a copy of the Form 10-Q filed with
the SEC for the second quarter of 2011 on its website at
http://corporate.cnty.com/investor-relations/sec-filings/.
Century Casinos will host its second quarter 2011 earnings
conference call today at 10:00 am
MDT; 6:00 pm CET,
respectively. U.S. domestic participants should dial
1-800-862-9098. For 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 the Company's
website at
http://corporate.cnty.com/investor-relations/financial-results/.
*See discussion and reconciliation of Non-GAAP financial
measures in Supplemental Information below.
CENTURY CASINOS, INC. AND
SUBSIDIARIES
FINANCIAL INFORMATION ā US GAAP
BASIS
|
|
|
|
|
For the
three months
ended June 30,
|
For the six
months
ended June 30,
|
|
Amounts in thousands, except for share and per
share information
|
2011
|
2010
|
2011
|
2010
|
|
Operating
revenue:
|
|
|
|
|
|
Gaming
|
$15,928
|
$13,239
|
$30,753
|
$25,821
|
|
Hotel, bowling, food and
beverage
|
3,141
|
2,756
|
6,384
|
5,521
|
|
Other
|
1,004
|
770
|
1,939
|
1,349
|
|
Gross
revenue
|
20,073
|
16,765
|
39,076
|
32,691
|
|
Less: Promotional
allowances
|
(2,071)
|
(1,825)
|
(3,959)
|
(3,614)
|
|
Net operating revenue
|
18,002
|
14,940
|
35,117
|
29,077
|
|
Operating costs and
expenses:
|
|
|
|
|
|
Gaming
|
7,341
|
5,854
|
14,272
|
11,287
|
|
Hotel, bowling, food and
beverage
|
2,553
|
2,228
|
5,064
|
4,338
|
|
General and
administrative
|
5,848
|
5,150
|
11,216
|
10,093
|
|
Depreciation
|
1,665
|
1,524
|
3,306
|
3,013
|
|
Total operating costs and
expenses
|
17,407
|
14,756
|
33,858
|
28,731
|
|
Earnings from equity
investment
|
382
|
160
|
474
|
348
|
|
Earnings from
operations
|
977
|
344
|
1,733
|
694
|
|
Non-operating income
(expense):
|
|
|
|
|
|
Interest income
|
5
|
14
|
7
|
22
|
|
Interest
expense
|
(197)
|
(281)
|
(443)
|
(572)
|
|
Gains (losses) on foreign
currency
transactions and
other
|
114
|
(244)
|
189
|
(1)
|
|
Non-operating income (expense),
net
|
(78)
|
(511)
|
(247)
|
(551)
|
|
Earnings (loss) before income
taxes
|
899
|
(167)
|
1,486
|
143
|
|
Income tax provision
|
255
|
92
|
478
|
272
|
|
Net earnings
(loss)
|
$644
|
($259)
|
$1,008
|
($129)
|
|
|
|
|
|
|
|
Earnings per
share:
|
|
|
|
Basic
|
$0.03
|
($0.01)
|
$0.04
|
($0.01)
|
|
Diluted
|
$0.03
|
($0.01)
|
$0.04
|
($0.01)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CENTURY CASINOS, INC. AND
SUBSIDIARIES
FINANCIAL INFORMATION ā US GAAP
BASIS
|
|
Century Casinos, Inc.
Condensed Consolidated Balance
Sheets
(Amounts in
thousands)
|
|
|
|
|
June
30,
|
December
31,
|
|
2011
|
2010
|
|
Assets
|
|
|
|
Current assets
|
$21,981
|
$23,467
|
|
Property and equipment,
net
|
103,669
|
103,956
|
|
Other assets
|
9,908
|
9,303
|
|
Total assets
|
$135,558
|
$136,726
|
|
|
|
|
|
Liabilities and Shareholders'
Equity
|
|
|
|
Current liabilities
|
$10,803
|
$14,057
|
|
Non-current
liabilities
|
10,668
|
11,171
|
|
Shareholders' equity
|
114,087
|
111,498
|
|
Total liabilities and
shareholders' equity
|
$135,558
|
$136,726
|
|
|
|
|
|
|
CENTURY CASINOS, INC. AND
SUBSIDIARIES
SUPPLEMENTAL
INFORMATION
|
|
Century Casinos, Inc.
Adjusted EBITDA Margins ** by
Property (Unaudited)
|
|
|
|
|
For the
Three Months
|
For the Six
Months
|
|
Ended June
30,
|
Ended June
30,
|
|
|
2011
|
2010
|
2011
|
2010
|
|
Century Casino & Hotel, Edmonton
|
35%
|
32%
|
34%
|
31%
|
|
Century Casino, Calgary
|
5%
|
(1%)
|
4%
|
4%
|
|
Century Casino & Hotel, Central City
|
21%
|
22%
|
21%
|
22%
|
|
Century Casino & Hotel, Cripple Creek
|
21%
|
19%
|
20%
|
14%
|
|
Cruise Ships and Other
|
19%
|
15%
|
17%
|
21%
|
|
Consolidated Adjusted EBITDA Margin
|
15%
|
13%
|
15%
|
14%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Century Casinos, Inc.
Reconciliation of Adjusted
EBITDA * to Earnings (Loss) by Property (Unaudited)
For the Three and Six Months
Ended June 30, 2011 and 2010
|
|
Amounts In
thousands
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended June 30, 2011
|
|
|
Edmonton
|
Calgary
|
Central
City
|
Cripple
Creek
|
Cruise
Ships &
Other
|
Corporate
|
Total
|
|
|
|
Earnings (loss)
|
1,182
|
(73)
|
177
|
268
|
160
|
(1,070)
|
644
|
|
Interest income
|
(5)
|
-
|
-
|
-
|
-
|
-
|
(5)
|
|
Interest expense
|
197
|
1
|
-
|
-
|
-
|
(1)
|
197
|
|
Income taxes
|
414
|
(2)
|
96
|
164
|
3
|
(420)
|
255
|
|
Depreciation
|
377
|
194
|
664
|
258
|
108
|
64
|
1,665
|
|
Non-cash stock based
compensation
|
-
|
-
|
-
|
-
|
-
|
96
|
96
|
|
Foreign currency
(gains)
|
(2)
|
-
|
-
|
-
|
-
|
(112)
|
(114)
|
|
Loss (gain) on disposition of
fixed
assets
|
-
|
-
|
14
|
(5)
|
43
|
(30)
|
22
|
|
Adjusted EBITDA*
|
2,163
|
120
|
951
|
685
|
314
|
(1,473)
|
2,760
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CENTURY CASINOS, INC. AND
SUBSIDIARIES
SUPPLEMENTAL
INFORMATION
|
|
Century Casinos, Inc.
Reconciliation of Adjusted
EBITDA * to Earnings (Loss) by Property (Unaudited)
For the Three and Six Months
Ended June 30, 2011 and 2010
|
|
|
|
|
Three Months
Ended June 30, 2010
|
|
|
Edmonton
|
Calgary
|
Central
City
|
Cripple
Creek
|
Cruise
Ships &
Other
|
Corporate
|
Total
|
|
|
|
Earnings (loss)
|
855
|
(62)
|
176
|
121
|
(3)
|
(1,346)
|
(259)
|
|
Interest income
|
(10)
|
(1)
|
-
|
-
|
-
|
(3)
|
(14)
|
|
Interest expense
|
288
|
-
|
-
|
-
|
-
|
(7)
|
281
|
|
Income taxes
|
280
|
(26)
|
97
|
74
|
-
|
(333)
|
92
|
|
Depreciation
|
353
|
67
|
674
|
294
|
82
|
54
|
1,524
|
|
Non-cash stock based
compensation
|
-
|
-
|
-
|
-
|
-
|
145
|
145
|
|
Foreign currency (gains) losses
|
(3)
|
(4)
|
-
|
-
|
-
|
238
|
231
|
|
Loss on disposition of fixed assets
|
3
|
-
|
-
|
1
|
-
|
1
|
5
|
|
Adjusted EBITDA*
|
1,766
|
(26)
|
947
|
490
|
79
|
(1,251)
|
2,005
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months
Ended June 30, 2011
|
|
|
Edmonton
|
Calgary
|
Central
City
|
Cripple
Creek
|
Cruise
Ships &
Other
|
Corporate
|
Total
|
|
|
|
Earnings (loss)
|
2,080
|
(236)
|
372
|
437
|
279
|
(1,924)
|
1,008
|
|
Interest income
|
(7)
|
-
|
-
|
-
|
-
|
-
|
(7)
|
|
Interest expense
|
440
|
1
|
-
|
-
|
-
|
2
|
443
|
|
Income taxes
|
756
|
32
|
203
|
268
|
5
|
(786)
|
478
|
|
Depreciation
|
741
|
383
|
1,319
|
516
|
219
|
128
|
3,306
|
|
Non-cash stock based
compensation
|
-
|
-
|
-
|
-
|
-
|
192
|
192
|
|
Foreign currency (gains) losses
|
(7)
|
39
|
-
|
-
|
-
|
(221)
|
(189)
|
|
Loss (gain) on disposition of
fixed
assets
|
-
|
-
|
15
|
(5)
|
43
|
-
|
53
|
|
Adjusted EBITDA*
|
4,003
|
219
|
1,909
|
1,216
|
546
|
(2,609)
|
5,284
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CENTURY CASINOS, INC. AND
SUBSIDIARIES
SUPPLEMENTAL
INFORMATION
|
|
Century Casinos, Inc.
Reconciliation of Adjusted
EBITDA * to Earnings (Loss) by Property (Unaudited)
For the Three and Six Months
Ended June 30, 2011 and 2010
|
|
|
|
|
Six Months
Ended June 30, 2010
|
|
|
Edmonton
|
Calgary
|
Central
City
|
Cripple
Creek
|
Cruise
Ships &
Other
|
Corporate
|
Total
|
|
|
|
Earnings (loss)
|
1,574
|
32
|
338
|
61
|
64
|
(2,198)
|
(129)
|
|
Interest income
|
(18)
|
(1)
|
-
|
-
|
-
|
(3)
|
(22)
|
|
Interest expense
|
577
|
-
|
-
|
-
|
-
|
(5)
|
572
|
|
Income taxes
|
561
|
13
|
183
|
37
|
2
|
(524)
|
272
|
|
Depreciation
|
696
|
108
|
1,346
|
583
|
170
|
110
|
3,013
|
|
Non-cash stock based
compensation
|
-
|
-
|
-
|
-
|
-
|
288
|
288
|
|
Foreign currency
losses
|
22
|
1
|
-
|
-
|
-
|
73
|
96
|
|
Impairments and other
write-offs
|
-
|
-
|
-
|
-
|
-
|
(108)
|
(108)
|
|
Loss on disposition of fixed assets
|
3
|
-
|
1
|
1
|
-
|
2
|
7
|
|
Adjusted EBITDA*
|
3,415
|
153
|
1,868
|
682
|
236
|
(2,365)
|
3,989
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* The Company defines Adjusted EBITDA as earnings
(loss) 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 and royalty fees
and interest, along with their related tax effects, are excluded
from the presentation of net earnings and Adjusted EBITDA reported
for each property. 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. 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 of its properties and
the Company. 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.
** 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 twelve
luxury cruise vessels (Regatta, Insignia, Nautica, Marina,
Mein Schiff 1, Mein Schiff 2, Wind Surf, Wind Star, Wind
Spirit, Seven Seas Voyager, Seven Seas Mariner and Seven Seas
Navigator) and signed a contract for an additional casino on board
Oceania Cruises' Riviera that is expected to start operations in
2012. 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 MarketĀ® 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, future results of operations for the third
quarter of 2011 and other periods, expected competition, the impact
of new gaming laws and plans for our casinos. 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 for the year ended
December 31, 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.
SOURCE Century Casinos, Inc.