CNTY Century Casinos Inc

Century Casinos Reports Earnings for the Fourth Quarter and the Year Ended December 31, 2003 CRIPPLE CREEK, Colo., March 9 /PRNewswire-FirstCall/ -- Century Casinos, Inc. today reported net earnings of $826,000 or $0.06 per share for the fourth quarter ended December 31, 2003 compared to $598,000 or $0.04 per share for the same period in 2002. For the year ended December 31, 2003 net earnings were $3,246,000 or $0.24 per share compared to $3,079,000, or $0.23 per share for the year ended December 31, 2002. Details of results for these periods are summarized below: Fourth Quarter 2003 The Company reported net operating revenue of $8,190,000 for the fourth quarter ended December 31, 2003 compared to $7,131,000 during the same period in 2002, a 14.9% increase. The casino revenues, for the Company, were $8,199,000 in the fourth quarter of 2003 compared to $7,350,000 in the fourth quarter of 2002. The casino expenses were $3,169,000 and $2,591,000 for the fourth quarters of 2003 and 2002, respectively. General and administrative expense was $1,999,000 for 2003 compared to $1,643,000 in 2002. Depreciation expense increased to $682,000 in the fourth quarter 2003 from $538,000 in the fourth quarter 2002. Casino revenue at Womacks was $4,830,000 in the fourth quarter of 2003 and $5,355,000 in 2002, a $525,000 decrease. The Cripple Creek market was flat, quarter over quarter, and Womacks continues to be impacted by the competitive pressures of other casinos in the city. Casino expenses decreased to $1,659,000 from $1,758,000, or 5.6%. The decrease in casino margin is attributable to the relative fixed costs of operating the casino versus the decline in revenue. General and administrative expense was $847,000 in the fourth quarter of 2003 and $856,000 in the fourth quarter of 2002, a decrease of 1.0%. Depreciation expense decreased to $316,000 in the fourth quarter of 2003 compared to $335,000 during the same period in 2002. Caledon reported $2,936,000 in casino revenue in the fourth quarter of 2003 or a 65.6% increase compared to $1,773,000 in the same period 2002. Excluding the effect of the change in the Rand/Dollar conversion rate from year to year, Caledon casino revenue increased by 16.4%. This increase is attributable tothe introduction of cash couponing and other successful marketing efforts, an expanded smoking section, improved management and employee training. Caledon's casino expenses increased to $1,384,000 in the fourth quarter compared to $679,000 in the 2002. Excluding the effect of the change in the Rand/Dollar conversion rate from year to year, Caledon casino expenses increased by 42.5%. Relatively higher expenses are primarily attributed to the increased costs of marketing the casino and the effects of inflation. General and administrative expense increased to $475,000 in the fourth quarter of 2003 from $416,000 in the same period in 2002. Excluding the effect of the change in the Rand/Dollar conversion rate, the general and administrative expenseincreased decreased by 19.4%. Depreciation increased to $299,000 in 2003 from $159,000 in 2002. The cruise ships' casino revenue increased $211,000, or 95.0%, to $433,000 in the fourth quarter of 2003 from $222,000 in the fourth quarter of 2002. Cruise ship casino expenses increased to $326,000 from $154,000 when comparing the fourth quarter of 2003 and 2002. During the fourth quarter of 2003, the Company operated casinos aboard six ships. During the same period in 2002, it operated casinos on four ships. Depreciation expense increased to $18,000 for the fourth quarter of 2003 from $3,000 in 2002, as a result of additional ships in operation. The total Company earnings from operations for the fourth quarter 2003 were $1,663,000 compared to $1,882,000 reported in the same period in 2002. This primarily represents an increase in earnings from operations from Caledon of $413,000, Casino Millennium technical services fees of $138,000 and a decrease from Womacks of $490,000. EBITDA for the Company was $2,301,000 in the fourth quarter 2003, compared to $2,475,000 in 2002. Tax expense was $386,000 in the current quarter compared to $906,000 in the fourth quarter of 2002. The decrease in tax expense is attributable to lower pre-tax earnings in2003, lower effective tax rate on ship income in 2003 and lower effective tax rates in South Africa in 2003. The net earnings for the fourth quarter 2003 increased 38.1% to $826,000, or $0.06 per share compared to net earnings of $598,000, or $0.04 per share for the same quarter in 2002. Year-End 2003 The Company reported net operating revenue of $31,402,000 for the year ended December 31, 2003 compared to $29,337,000 in 2002, a 7.0% increase. The casino revenue, for the Company, was $31,869,000 in 2003 compared to $30,607,000 in 2002. The casino expenses were $11,667,000 and $9,897,000 for 2003 and 2002, respectively. General and administrative expense was $7,745,000 for 2003 compared to $7,191,000 in 2002. Depreciation expense increased to $2,668,000 in 2003 from $2,304,000 in 2002. Casino revenue at Womacks was $20,981,000 in 2003 and $23,922,000 in 2002. Management attributes the decrease to a number of factors which include the impact of construction and the effect of competitors' covered parking garages during inclement weather. Casino expenses decreased to $6,702,000 from $7,038,000, or 4.8%. The decrease in casino margin is attributable to the relative fixed costs of operating the casino versus the decline in revenue. General and administrative expense was $3,686,000 in 2003 and $3,521,000 in 2002, an increase of 4.7%. Depreciation expense slightly increased to $1,349,000 for the year ended December 31, 2003 compared to $1,334,000 during the same period in 2002. Caledon reported $9,211,000 in casino revenue in 2003 or a 56.1% increase compared to $5,899,000 in the same period 2002. Excluding the effect of the change in the Rand/Dollar conversion rate from year to year, Caledon casino revenue increased by 11.3%. Such increase is attributable to an increase in the number of slot machines, the introduction of cash couponing and other successful marketing efforts, an expanded smoking section, improved management and employee training. Caledon's casino expenses increasedto $3,993,000 in 2003 from $2,322,000 in 2002. Excluding the effect of the change in the Rand/Dollar conversion rate from year to year, Caledon casino expenses increased by 21.7%. Higher expenses are primarily attributed to the increased costs of marketing the casino and the effects of inflation. General and administrative expense increased to $1,552,000 in 2003 from $1,342,000 in the same period in 2002. Excluding the effect of the change in the Rand/Dollar conversion rate, the general and administrative expense decreased by 17.1%. Depreciation increased to $1,070,000 in 2003 from $734,000 in 2002. The cruise ships' casino revenue increased $891,000, or 113.4%, to $1,677,000 in 2003 from $786,000 in 2002. Cruise ship casino expenses increased to $1,172,000 from $537,000 when comparing 2003 and 2002. Since early 2002 the Company has grown its ship casino operation contracts from five to seven ships. Total Company earnings from operations for the year ended December 31, 2003 was $6,804,000compared to $7,291,000 reported in the same period in 2002. The decrease of $487,000 from 2002 is comprised principally of an increase in earnings from operations from Caledon of $1,085,000, a decrease from Womacks of $2,782,000 and a charge of $1,145,000 for property write-down and other write-offs in 2002. EBITDA for the Company was $9,498,000 in 2003, compared to $9,615,000 in 2002. Tax expense decreased to $1,777,000 from $2,454,000 in 2002. The decrease is mainly attributable to lower pre-tax income and lower effective tax rate in South Africa in 2003. The Company's net earnings for 2003 increased 5.4% to $3,246,000, or $0.24 per share compared to net earnings of $3,079,000 or $0.23 per share in 2002. At December 31, 2003 the Company had$16.1 million of available liquidity consisting of cash and cash equivalents, net of restricted cash, and borrowing capacity under the revolving credit facility with Wells Fargo Bank. "We continue to see year over year growth in Caledon and are pleased with the reported results. We believe the potential of the facilities will enable us to continue such trend in the future," said Erwin Haitzmann, Chairman and CEO of the Company. "At Womacks we remain committed to solidifying our market share in Cripple Creek through improvements in operations and growing our property at the most opportunistic time." The Company will post a slide show presentation on Tuesday, March 9, 2004 of the Results of Operations for the year ended December 31, 2003 on its web site at http://www.centurycasinos.com/ . About Century Casinos, Inc: Century Casinos is an international casino company that owns and operates Womacks Casino and Hotel in Cripple Creek, Colorado; owns and operates The Caledon Hotel, Spa & Casino near Cape Town, South Africa; operates the casinos aboard the ultra-luxury vessels of Silversea Cruises, The World of ResidenSea, and Oceania Cruises; and owns 50% of, and provides technical casino services to the Casino Millennium in the Marriott Hotel in Prague, Czech Republic. The Company continues to pursue other international projects in various stages of development. The address for the U.S. offices is 157 E. Warren Ave. (P.O. Box 1006), Cripple Creek, CO, 80813. Telephone: (719) 689-9100. Fax: (719) 689-5782. E-Mail: . For more information about Century Casinos, visit the Company's web site at http://www.centurycasinos.com/ . Century Casinos' common stock trades on The NASDAQ Stock Market(R) under the symbol CNTY. This release may contain forward-looking statements that involve risks and uncertainties. Among the other important factors which could cause actual results to differ materially from those in the forward-looking statements are economic, competitive, and governmental factorsaffecting the company's operations, markets, services and prices, as well as other factors detailed in the Company's filings with the Securities and Exchange Commission, including its recent filings on Forms 10-K, 10-Q, and 8K. 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. AND SUBSIDIARIES CONSOLIDATED STATEMENT OF EARNINGS (Dollar amounts in thousands, except for share information) For the Three Months Ended December 31, 2003 2002 2001 Operating Revenue: Casino $8,199 $7,350 $7,187 Hotel, food and beverage 998 746 644 Other 221 109 200 9,418 8,205 8,031 Less promotional allowances (1,228) (1,074) (1,082) Net operating revenue 8,190 7,131 6,949 Operating Costs and Expenses: Casino 3,169 2,591 2,393 Hotel, food and beverage 712 454 377 General and administrative 1,999 1,643 1,467 Property write-down and other write offs, net of (recoveries) (35) 23 -- Depreciation and amortization 682 538 988 Total operating costs and expenses 6,527 5,249 5,225 Earnings from Operations 1,663 1,882 1,724 Non-operating income (expense) Interest expense (447) (494) (524) Other income (expense), net 10 86 (9) Non-operating income (expense), net (437) (408) (533) Earnings before Income Taxes and Minority Interest 1,226 1,474 1,191 Provision for income taxes 386 906 363 Earnings before Minority Interest 840 568 828 Minority interest in subsidiary (earnings) losses (14) 30 (102) Net Earnings $826 $598 $726 Earnings Per Share, Basic $0.06 $0.04 $0.05 Earnings Per Share, Diluted $0.06 $0.04 $0.04 Reconciliation to EBITDA* Net earnings $826 $598 $726 Interest income (40) (61) (19) Interest expense 447 494 524 Income taxes 386 906 363 Depreciation 682 538 988 EBITDA* $2,301 $2,475 $2,582 CENTURY CASINOS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENT OF EARNINGS (Dollar amounts in thousands, except for share information) For the Year Ended December 31, 2003 2002 2001 Operating Revenue: Casino $31,869 $30,607 $30,096 Hotel, food and beverage 3,568 2,630 2,652 Other 622 524 771 36,059 33,761 33,519 Less promotional allowances (4,657) (4,424) (4,063) Net operating revenue 31,402 29,337 29,456 Operating Costs and Expenses: Casino 11,667 9,897 9,401 Hotel, food and beverage 2,553 1,509 1,748 General and administrative 7,745 7,191 7,530 Property write-down and other write offs, net of (recoveries) (35) 1,145 57 Depreciation and amortization 2,668 2,304 4,564 Total operating costs and expenses 24,598 22,046 23,300 Earnings from Operations 6,804 7,291 6,156 Non-operating income (expense) Interest expense (2,011) (1,903) (2,018) Other income, net 252 176 79 Non-operating income (expense), net (1,759) (1,727) (1,939) Earnings before Income Taxes and Minority Interest 5,045 5,564 4,217 Provision for income taxes 1,777 2,454 1,794 Earnings before Minority Interest 3,268 3,110 2,423 Minority interest in subsidiary (earnings) losses (22) (31) 32 Net Earnings $3,246 $3,079 $2,455 Earnings Per Share, Basic $0.24 $0.23 $0.18 Earnings Per Share, Diluted $0.22 $0.20 $0.16 Reconciliation to EBITDA* Net earnings $3,246 $3,079 $2,455 Interest income (204) (125) (90) Interest expense 2,011 1,903 2,018 Income taxes 1,777 2,454 1,794 Depreciation 2,668 2,304 4,564 EBITDA* $9,498 $9,615 $10,741 CENTURY CASINOS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEET (Dollar amounts in thousands, except for share information) December 31, 2003 December 31, 2002 ASSETS Current Assets $6,307 $5,770 Other Assets 48,510 45,373 Total Assets $54,817 $51,143 LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities $6,471 $5,818 Non-Current Liabilities 15,298 18,222 Shareholders' Equity 33,048 27,103 Total Liabilities and Shareholders' Equity $54,817 $51,143 *EBITDA (Earnings before interest, taxes, depreciation and amortization) is not considered a measure of performance recognized as an accounting principle generally accepted in the United States of America. Management believes that EBITDA is a valuable measure of the relative performance amongst its operating segments. The gaming industry commonly uses EBITDA as a method of arriving at the economic value of a casino operation. It is also used by our lending institutions to gauge operating performance. Management uses EBITDA to compare the relative operating performance of separate operating units by eliminating the interest income, interest expense, income tax expense, and depreciation and amortization expense associated with the varying levels of capital expenditures for infrastructure required to generate revenue, and the oftentimes high cost of acquiring existing operations. http://www.newscom.com/cgi-bin/prnh/20020328/LATH096LOGO http://photoarchive.ap.org/ DATASOURCE: Century Casinos, Inc. CONTACT: Larry Hannappel of Century Casinos, Inc., +1-719-689-9100, Web site: http://www.centurycasinos.com/

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