CNTY Century Casinos Inc

COLORADO SPRINGS, Colo., Nov. 8, 2011 /CNW/ -- Century Casinos, Inc. today announced its financial results for the three and nine months ended September 30, 2011. Third Quarter 2011 Highlights -- Net operating revenue was $18.1 million, a 14% increase compared to the three months ended September 30, 2010. -- Adjusted EBITDA* was $3.1 million, a 27% increase from the three months ended September 30, 2010. -- Net earnings per share was $0.06 compared to $0.01 for the three months ended September 30, 2010. For the Three Months For the Nine Months -------------------- ------------------- Amounts in thousands, except share and per share data Ended September 30, Ended September 30, ------------------ ------------------- ------------------- Consolidated Results: 2011 2010% 2011 2010% ------------ ---- ---- Change ---- ---- Change ------ ------ Net operating revenue $18,146 $15,984 14% $53,263 $45,061 18% ------------- ------- ------- --- ------- ------- --- Earnings from operations 1,548 744 108% 3,281 1,433 129% ------------- ----- --- --- ----- ----- --- Net earnings 1,423 321 343% 2,431 191 1173% ------------ ----- --- --- ----- --- ---- Adjusted EBITDA* $3,081 $2,424 27% $8,364 $6,528 28% ---------------- ------ ------ --- ------ ------ --- Earnings per share: ------------------- Basic $0.06 $0.01 500% $0.10 $0.01 900% ----- ----- ----- --- ----- ----- --- Diluted $0.06 $0.01 500% $0.10 $0.01 900% ------- ----- ----- --- ----- ----- --- Weighted-average common shares: ---------------- Basic 23,877,362 23,678,795 23,715,224 23,584,079 ----- ---------- ---------- ---------- ---------- Dilutive 24,191,252 23,851,110 24,015,139 23,771,930 -------- ---------- ---------- ---------- ---------- "We are very pleased to report another quarter with growth in revenue, adjusted EBITDA and net earnings. Our strategies to continuously elevate the guest experience at our properties and to improve operating efficiencies are generating positive results. By leveraging management expertise across multiple properties in Colorado, USA and Alberta, Canada, we are starting to create synergies that should drive even higher levels of operational performance," said Erwin Haitzmann and Peter Hoetzinger, Co Chief Executive Officers of Century Casinos. "We remain focused on operational improvements and the pursuit of potential new opportunities to create additional value for shareholders," they continued. Three and Nine Months Ended September 30, 2011 Results Net operating revenue increased by $2.2 million, or 13.5%, and $8.2 million, or 18.2%, for the three and nine months ended September 30, 2011 compared to the three and nine months ended September 30, 2010, respectively. Net operating revenue increased at all properties except Central City for the three months ended September 30, 2011 compared to the three months ended September 30, 2010. Net operating revenue increased at all properties for the nine months ended September 30, 2011 compared to the nine months ended September 30, 2010. Following is a summary of net operating revenue increases and decreases by property for the three and nine months ended September 30, 2011 compared to the three and nine months ended September 30, 2010, respectively: Net Operating Revenue For the three For the nine months months ended September ended September 30, 30, Amounts in millions Change % Change Change % Change Century Casino & Hotel, Edmonton $0.6 10.6% $1.6 10.2% ----------------------- ---- ---- ---- ---- Century Casino, Calgary 0.5 24.5% 1.7 29.3% ----------------------- --- ---- --- ---- Century Casino & Hotel, Central City (0.1) (2.0%) 0.4 3.3% ----------------------- ---- ------ --- --- Century Casino & Hotel, Cripple Creek 0.5 16.5% 1.7 21.0% ----------------------- --- ---- --- ---- Cruise Ships & Other 0.7 82.5% 2.8 138.8% -------------------- --- ---- --- ----- Total operating costs and expenses increased by $1.6 million, or 10.8%, and $6.8 million, or 15.4%, for the three and nine months ended September 30, 2011 compared to the three and nine months ended September 30, 2010, respectively. Total operating costs increased at all of our properties for both the three and nine months ended September 30, 2011 compared to the three and nine months ended September 30, 2010. Following is a summary of total operating costs and expenses increases by property for the three and nine months ended September 30, 2011 compared to the three and nine months ended September 30, 2010, respectively: Total Operating Costs For the three For the nine months months ended September ended September 30, 30, Amounts in millions Change % Change Change % Change Century Casino & Hotel, Edmonton $0.3 8.4% $0.9 7.2% ----------------------- ---- --- ---- --- Century Casino, Calgary 0.4 19.4% 1.8 31.0% ----------------------- --- ---- --- ---- Century Casino & Hotel, Central City 0.1 0.8% 0.5 4.3% ----------------------- --- --- --- --- Century Casino & Hotel, Cripple Creek 0.3 11.2% 0.9 11.5% ----------------------- --- ---- --- ---- Cruise Ships & Other 0.6 75.8% 2.5 130.2% -------------------- --- ---- --- ----- Corporate (0.1) (5.8%) 0.2 4.9% --------- ---- ------ --- --- Net earnings increased by $1.1 million, or 343%, and $2.2 million, or 1173%, for the three and nine months ended September 30, 2011 compared to the three and nine months ended September 30, 2010, respectively. Net earnings increased at all of our properties except Central City for the three months ended September 30, 2011 compared to the three months ended September 30, 2010. Net earnings increased at all of our properties except for Central City and Calgary for the nine months ended September 30, 2011 compared to the nine months ended September 30, 2010. Following is a summary of net earnings increases and decreases by property for the three and nine months ended September 30, 2011 compared to the three and nine months ended September 30, 2010, respectively: Net Earnings For the three For the nine months months ended September ended September 30, 30, Amounts in millions Change % Change Change % Change Century Casino & Hotel, Edmonton $0.4 49.4% $0.9 38.5% ----------------------- ---- ---- ---- ---- Century Casino, Calgary 0.2 162.2% (0.1) (74.7%) ----------------------- --- ----- ---- ------- Century Casino & Hotel, Central City (0.1) (19.9%) (0.0) (6.0%) ----------------------- ---- ------- ---- ------ Century Casino & Hotel, Cripple Creek 0.1 57.1% 0.5 178.5% ----------------------- --- ---- --- ----- Cruise Ships & Other 0.1 275.9% 0.3 311.7% -------------------- --- ----- --- ----- Property Results (in thousands) -------------- Adjusted Adjusted Net Operating EBITDA* Net Operating EBITDA* Revenue --------- Revenue --------- ------- ------- For the Three For the Three For the Nine For the Nine Months Months Months Months Ended Ended Ended Ended September September September September 30, 30, 30, 30, -- -- -- -- 2011 2010 2011 2010 2011 2010 2011 2010 ---- ---- ---- ---- ---- ---- ---- ---- Century Casino & Hotel, Edmonton 5,852 5,291 1,936 1,693 17,791 16,147 5,939 5,107 Century Casino, Calgary 2,446 1,964 96 (90) 7,503 5,804 318 62 Century Casino & Hotel, Central City 4,754 4,849 1,010 1,283 13,674 13,231 2,919 3,152 Century Casino & Hotel, Cripple Creek 3,506 3,010 804 639 9,554 7,893 2,019 1,322 Cruise Ships & Other 1,588 870 223 113 4,741 1,986 768 350 Corporate - - (988) (1,214) - - (3,599) (3,465) Consolidated 18,146 15,984 3,081 2,424 53,263 45,061 8,364 6,528 ====== ====== ===== ===== ====== ====== ===== ===== Balance Sheet and Liquidity As of September 30, 2011, the Company had $21.3 million in cash and cash equivalents and $9.4 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 third quarter of 2011 on its website at http://corporate.cnty.com/investor-relations/sec-filings/ Century Casinos will host its third quarter 2011 earnings conference call today at 10:00 am MST; 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 - US GAAP BASIS ------------------------------------- For the three months For the nine months ended September 30, ended September 30, Amounts in thousands, except for per share information 2011 2010 2011 2010 ---- ---- ---- ---- Operating revenue: Gaming $16,236 $14,348 $46,989 $40,169 Hotel, bowling, food and beverage 3,152 2,789 9,536 8,311 Other 956 773 2,895 2,122 --- --- ----- ----- Gross revenue 20,344 17,910 59,420 50,602 Less: Promotional allowances (2,198) (1,926) (6,157) (5,541) Net operating revenue 18,146 15,984 53,263 45,061 ------ ------ ------ ------ Operating costs and expenses: Gaming 7,543 6,289 21,815 17,578 Hotel, bowling, food and beverage 2,565 2,404 7,629 6,742 General and administrative 5,213 4,986 16,429 15,082 Depreciation 1,526 1,529 4,832 4,542 ----- ----- ----- ----- Total operating costs and expenses 16,847 15,208 50,705 43,944 ------ ------ ------ ------ Earnings from equity investment 249 (32) 723 316 Earnings from operations 1,548 744 3,281 1,433 ----- --- ----- ----- Non-operating income (expense): Interest income 6 17 13 39 Interest expense (186) (280) (629) (861) (Losses) gains on foreign currency transactions & other (27) 14 162 26 Non-operating income (expense), net (207) (249) (454) (796) ---- ---- ---- ---- Earnings before income taxes 1,341 495 2,827 637 Income tax provision (82) 174 396 446 Net earnings $1,423 $321 $2,431 $191 ====== ==== ====== ==== Earnings per share: Basic $0.06 $0.01 $0.10 $0.01 ----- ----- ----- ----- Diluted $0.06 $0.01 $0.10 $0.01 ===== ===== ===== ===== CENTURY CASINOS, INC. AND SUBSIDIARIES FINANCIAL INFORMATION - US GAAP BASIS ------------------------------------- Century Casinos, Inc. Condensed Consolidated Balance Sheets (Amounts in thousands) September December 30, 31, 2011 2010 ---- ---- Assets Current Assets $23,804 $23,467 Property and equipment, net 99,357 103,956 Other Assets 9,339 9,303 Total Assets $132,500 $136,726 ======== ======== Liabilities and Shareholders' Equity Current Liabilities $11,325 $14,057 Non-Current Liabilities 9,394 11,171 Shareholders' Equity 111,781 111,498 Total Liabilities and Shareholders' Equity $132,500 $136,726 ======== ======== CENTURY CASINOS, INC. AND SUBSIDIARIES SUPPLEMENTAL INFORMATION ------------------------ Century Casinos, Inc. Adjusted EBITDA Margins ** by Property (Unaudited) For the Three For the Nine Months Months Ended September Ended September 30, 30, ---------------- ---------------- 2011 2010 2011 2010 ---- ---- ---- ---- Century Casino & Hotel, Edmonton 33% 32% 33% 32% Century Casino, Calgary 4% -5% 4% 1% Century Casino & Hotel, Central City 21% 26% 21% 24% Century Casino & Hotel, Cripple Creek 23% 21% 21% 17% Cruise Ships & Other 14% 13% 16% 18% Consolidated Adjusted EBITDA Margin 17% 15% 16% 14% Century Casinos, Inc. Reconciliation of Adjusted EBITDA * to Earnings (Loss) by Property (Unaudited) For the Three and Nine Months Ended September 30, 2011 and 2010 Amounts In thousands Three Months Ended September 30, 2011 ------------------------------------- Edmonton Calgary Central Cripple Cruise Corporate Total -------- ------- City Creek Ships & --------- ----- ---- Other ----- Earnings (loss) 1,149 74 302 341 109 (552) 1,423 Interest income (6) - - - - - (6) Interest expense 185 - - - - 1 186 Income taxes (benefit) 234 (170) 173 208 2 (529) (82) Depreciation 373 194 535 255 112 57 1,526 Non- cash stock based compensation - - - - - 4 4 Foreign currency losses (gains) 1 (2) - - - 29 28 Loss on disposition of fixed assets - - - - - 2 2 Adjusted EBITDA* 1,936 96 1,010 804 223 (988) 3,081 ===== === ===== === === ==== ===== CENTURY CASINOS, INC. AND SUBSIDIARIES -------------------------------------- SUPPLEMENTAL INFORMATION ------------------------ Century Casinos, Inc. Reconciliation of Adjusted EBITDA * to Earnings (Loss) by Property (Unaudited) For the Three and Nine Months Ended September 30, 2011 and 2010 Three Months Ended September 30, 2010 ------------------------------------- Edmonton Calgary Central Cripple Cruise Corporate Total -------- ------- City Creek Ships & --------- ----- ---- Other ----- Earnings (loss) 769 (119) 377 217 29 (952) 321 Interest income (4) - - - - (13) (17) Interest expense 280 - - - - - 280 Income taxes (benefit) 296 (45) 219 134 1 (431) 174 Depreciation 350 77 677 288 83 54 1,529 Non-cash stock based compensation - - - - - 98 98 Foreign currency (gains) (4) (3) - - - (15) (22) Property write-down and other write offs - - 10 - - (10) - Loss on disposition of fixed assets 6 - - - - 55 61 Adjusted EBITDA* 1,693 (90) 1,283 639 113 (1,214) 2,424 ===== === ===== === === ====== ===== Nine Months Ended September 30, 2011 ------------------------------------ Edmonton Calgary Central Cripple Cruise Corporate Total -------- ------- City Creek Ships & --------- ----- ---- Other ----- Earnings (loss) 3,242 (152) 673 777 387 (2,496) 2,431 Interest income (13) - - - - - (13) Interest expense 626 1 - - - 1 628 Income taxes (benefit) 975 (144) 377 476 7 (1,295) 396 Depreciation 1,114 577 1,854 771 331 185 4,832 Non-cash stock based compensation - - - - - 196 196 Foreign currency (gains) losses (5) 36 - - - (192) (161) Loss (Gain) on disposition of fixed assets - - 15 (5) 43 2 55 Adjusted EBITDA* 5,939 318 2,919 2,019 768 (3,599) 8,364 ===== === ===== ===== === ====== ===== CENTURY CASINOS, INC. AND SUBSIDIARIES SUPPLEMENTAL INFORMATION ------------------------ Century Casinos, Inc. Reconciliation of Adjusted EBITDA * to Earnings (Loss) by Property (Unaudited) For the Three and Nine Months Ended September 30, 2011 and 2010 Nine Months Ended September 30, 2010 ------------------------------------ Edmonton Calgary Central Cripple Cruise Corporate Total -------- ------- City Creek Ships & --------- ----- ---- Other ----- Earnings (loss) 2,340 (87) 723 279 94 (3,158) 191 Interest income (20) (1) - - - (18) (39) Interest expense 857 - - - - 4 861 Income taxes (benefit) 856 (33) 405 171 3 (956) 446 Depreciation 1,047 185 2,023 871 253 163 4,542 Non- cash stock based compensation - - - - - 386 386 Foreign currency losses (gains) 18 (2) - - - 57 73 Loss on disposition of fixed assets 9 - 1 1 - 57 68 Adjusted EBITDA* 5,107 62 3,152 1,322 350 (3,465) 6,528 ===== === ===== ===== === ====== ===== * 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 as reported under GAAP. 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) 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 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 Section 27A of the Security Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and 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, statements regarding future results of operations, operational efficiencies, synergies and operational performance, 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 section 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. Century Casinos, Inc. CONTACT: 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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