COLORADO SPRINGS, Colorado,
November 8, 2011 /PRNewswire/ --
Century Casinos, Inc. (NASDAQ Capital Market® and Vienna Stock
Exchange: CNTY) 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
Amounts in thousands, except
share and per share data Ended September 30,
Consolidated %
Results: 2011 2010 Change
Net operating
revenue $18,146 $15,984 14%
Earnings from
operations 1,548 744 108%
Net earnings 1,423 321 343%
Adjusted EBITDA* $3,081 $2,424 27%
Earnings per
share:
Basic $0.06 $0.01 500%
Diluted $0.06 $0.01 500%
Weighted-average
common shares:
Basic 23,877,362 23,678,795
Dilutive 24,191,252 23,851,110
For the Nine Months
Amounts in thousands, except
share and per share data Ended September 30,
Consolidated %
Results: 2011 2010 Change
Net operating
revenue $53,263 $45,061 18%
Earnings from
operations 3,281 1,433 129%
Net earnings 2,431 191 1173%
Adjusted EBITDA* $8,364 $6,528 28%
Earnings per
share:
Basic $0.10 $0.01 900%
Diluted $0.10 $0.01 900%
Weighted-average
common shares:
Basic 23,715,224 23,584,079
Dilutive 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)
Net Operating
Revenue Adjusted EBITDA*
For the Three For the Three
Months Months
Ended September Ended September
30, 30,
2011 2010 2011 2010
Century Casino
& Hotel,
Edmonton 5,852 5,291 1,936 1,693
Century
Casino,
Calgary 2,446 1,964 96 (90)
Century Casino
& Hotel,
Central City 4,754 4,849 1,010 1,283
Century Casino
& Hotel,
Cripple Creek 3,506 3,010 804 639
Cruise Ships &
Other 1,588 870 223 113
Corporate - - (988) (1,214)
Consolidated 18,146 15,984 3,081 2,424
Net Operating
Revenue Adjusted EBITDA*
For the Nine For the Nine
Months Months
Ended September Ended September
30, 30,
2011 2010 2011 2010
Century Casino
& Hotel,
Edmonton 17,791 16,147 5,939 5,107
Century
Casino,
Calgary 7,503 5,804 318 62
Century Casino
& Hotel,
Central City 13,674 13,231 2,919 3,152
Century Casino
& Hotel,
Cripple Creek 9,554 7,893 2,019 1,322
Cruise Ships &
Other 4,741 1,986 768 350
Corporate - - (3,599) (3,465)
Consolidated 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 Months For the Nine Months
Ended September 30, Ended September 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
Central Cripple
Edmonton Calgary City Creek
Earnings
(loss) 1,149 74 302 341
Interest
income (6) - - -
Interest
expense 185 - - -
Income taxes
(benefit) 234 (170) 173 208
Depreciation 373 194 535 255
Non-cash
stock based
compensation - - - -
Foreign
currency
losses
(gains) 1 (2) - -
Loss on
disposition
of fixed
assets - - - -
Adjusted
EBITDA* 1,936 96 1,010 804
Cruise
Ships &
Other Corporate Total
Earnings
(loss) 109 (552) 1,423
Interest
income - - (6)
Interest
expense - 1 186
Income taxes
(benefit) 2 (529) (82)
Depreciation 112 57 1,526
Non-cash
stock based
compensation - 4 4
Foreign
currency
losses
(gains) - 29 28
Loss on
disposition
of fixed
assets - 2 2
Adjusted
EBITDA* 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
Central Cripple
Edmonton Calgary City Creek
Earnings
(loss) 769 (119) 377 217
Interest
income (4) - - -
Interest
expense 280 - - -
Income taxes
(benefit) 296 (45) 219 134
Depreciation 350 77 677 288
Non-cash
stock based
compensation - - - -
Foreign
currency
(gains) (4) (3) - -
Property
write-down
and other
write offs - - 10 -
Loss on
disposition
of fixed
assets 6 - - -
Adjusted
EBITDA* 1,693 (90) 1,283 639
Nine Months Ended September 30, 2011
Central Cripple
Edmonton Calgary City Creek
Earnings
(loss) 3,242 (152) 673 777
Interest
income (13) - - -
Interest
expense 626 1 - -
Income taxes
(benefit) 975 (144) 377 476
Depreciation 1,114 577 1,854 771
Non-cash
stock based
compensation - - - -
Foreign
currency
(gains)
losses (5) 36 - -
Loss (Gain)
on
disposition
of fixed
assets - - 15 (5)
Adjusted
EBITDA* 5,939 318 2,919 2,019
Three Months Ended September 30, 2010
Cruise
Ships &
Other Corporate Total
Earnings
(loss) 29 (952) 321
Interest
income - (13) (17)
Interest
expense - - 280
Income taxes
(benefit) 1 (431) 174
Depreciation 83 54 1,529
Non-cash
stock based
compensation - 98 98
Foreign
currency
(gains) - (15) (22)
Property
write-down
and other
write offs - (10) -
Loss on
disposition
of fixed
assets - 55 61
Adjusted
EBITDA* 113 (1,214) 2,424
Nine Months Ended September 30, 2011
Cruise
Ships &
Other Corporate Total
Earnings
(loss) 387 (2,496) 2,431
Interest
income - - (13)
Interest
expense - 1 628
Income taxes
(benefit) 7 (1,295) 396
Depreciation 331 185 4,832
Non-cash
stock based
compensation - 196 196
Foreign
currency
(gains)
losses - (192) (161)
Loss (Gain)
on
disposition
of fixed
assets 43 2 55
Adjusted
EBITDA* 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
Central Cripple
Edmonton Calgary City Creek
Earnings
(loss) 2,340 (87) 723 279
Interest
income (20) (1) - -
Interest
expense 857 - - -
Income taxes
(benefit) 856 (33) 405 171
Depreciation 1,047 185 2,023 871
Non-cash
stock based
compensation - - - -
Foreign
currency
losses
(gains) 18 (2) - -
Loss on
disposition
of fixed
assets 9 - 1 1
Adjusted
EBITDA* 5,107 62 3,152 1,322
Nine Months Ended September 30, 2010
Cruise
Ships &
Other Corporate Total
Earnings
(loss) 94 (3,158) 191
Interest
income - (18) (39)
Interest
expense - 4 861
Income taxes
(benefit) 3 (956) 446
Depreciation 253 163 4,542
Non-cash
stock based
compensation - 386 386
Foreign
currency
losses
(gains) - 57 73
Loss on
disposition
of fixed
assets - 57 68
Adjusted
EBITDA* 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
http://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.