CNTY Century Casinos Inc

Century Casinos Announces Second Quarter Earnings COLORADO SPRINGS, Colo., July 28 /PRNewswire-FirstCall/ -- For the second quarter ended June 30, 2004, Century Casinos, Inc. (NASDAQ:CNTY) reported a 53% increase in net earnings to $1,147,000, or $0.08 per share from $751,000 or $0.06 per share for the same period of 2003. The Company also reported a 17% increase in net operating revenue to $8,848,000 in 2004 from $7,553,000 in 2003. EBITDA* (earnings before interest expense, income taxes, depreciation and amortization) reported for the second quarter of 2004 was $2,570,000 compared to $2,343,000 reported in 2003. Interest expense for the Company for the second quarter ended June 30, 2004 decreased by 26% to $390,000 from $525,000 during the same period in 2003. "We are very pleased with the continued improvement in Caledon's net operating revenue and believe ongoing improvements at Womack's are expected to add to customer service and improved satisfaction", said Erwin Haitzmann, Chairman and CEO. "While a license for the Edmonton (Alberta, Canada) project has not been issued to us, we continue to make progress and look forward to continued cooperation with the Alberta gaming authorities to complete the licensing process. In addition, we have recently relocated our corporate offices from Cripple Creek, Colorado to Colorado Springs, Colorado in order to support future growth", Haitzmann continued. Womacks' casino revenue was $5,071,000 for the quarter compared to $5,164,000 reported for the same period in 2003. Casino expenses increased by $80,000, or 5% in this quarter compared to 2003. General and administrative expense increased $22,000, or 2% in this quarter when compared to 2003. Depreciation was $368,000 compared to $347,000 for the same period in 2003. Caledon's casino revenue increased by 39% to $2,946,000 compared to $2,115,000 reported in the second quarter 2003. Improvement in the Rand versus the dollar when comparing the three months ended June 30 of last year to the current year has had a positive impact on the reported revenues and a negative impact on expenses. Excluding the effect of the Rand/US Dollar exchange rate, casino revenue increased by 19%. The increase is attributable to successful marketing efforts. Casino costs have increased 41% which is in line with higher revenue. General and administrative expense for Caledon increased $119,000, or 31% in this quarter when compared to 2003. Depreciation was $333,000 compared to $257,000 in the same last year period. For the six months ended June 30, 2004 Net earnings for the six months ended June 30, 2004 were $2,051,000 or $0.15 per share, compared to $1,506,000 or $0.11 per share, for the same period of 2003, an increase of 36%. For the six months ended June 30, 2004, the Company reported a 14% increase in net operating revenue to $16,978,000 from $14,934,000 in 2003. EBITDA for the six month period was $4,944,000 in 2004 compared to $4,682,000 in 2003. Interest expense for the Company for the first six months of 2004 decreased by 23% to $812,000 from $1,052,000 during the same period in 2003. Womacks' casino revenue was $9,946,000 for the first six months of 2004 compared to $10,457,000 for the first six months of 2003. Casino expenses increased by $65,000, or 2% during the first six months of 2004 compared to 2003. General and administrative expense decreased by 0.9%, to $1,786,000 in 2004 from $1,802,000 in 2003. Caledon's casino revenue increased by 42% during the first six months of 2004 to $5,724,000 compared to $4,019,000 in 2003. Excluding the effect of the change in the Rand/Dollar conversion rate from year to year, Caledon's casino revenue increased by 19%. Casino costs increased by $663,000, or 40% during the first six months of 2004 compared to 2003. General and administrative expense was $971,000 in 2004 and $710,000 in 2003. Excluding the effect in the Rand/Dollar conversion rate, general and administrative expense increased 14%. The Company will post a slide show presentation of the Results of Operations for the second quarter of 2004 on its web site at http://www.centurycasinos.com/ on Thursday, July 29, 2004. 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 1263A Lake Plaza Dr., Colorado Springs, CO 80906. Telephone: (719) 527-8300. Fax: (719) 527-8301. E-Mail: . For more information about Century Casinos, please 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 factors affecting 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 CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (Unaudited) Dollar amounts in thousands, For The Three Months Ended June 30, except for share information 2004 2003 Operating Revenue: Casino $8,808 $7,625 Hotel, food and beverage 965 817 Other 107 174 9,880 8,616 Less promotional allowances 1,032 1,063 Net operating revenue 8,848 7,553 Operating Costs and Expenses: Casino 3,421 2,717 Hotel, food and beverage 724 581 General and administrative 2,153 1,925 Depreciation 731 663 Total operating costs and expenses 7,029 5,886 Income from unconsolidated subsidiaries 39 -- Earnings from Operations 1,858 1,667 Non-operating Income (expense) Interest expense (390) (525) Other income, net 45 71 Non-operating items from unconsolidated subsidiaries (3) -- Non-operating income (expense), net (348) (454) Earnings before Income Taxes and Minority Interest 1,510 1,213 Provision for income taxes 347 462 Earnings before Minority Interest 1,163 751 Minority interest in subsidiary earnings (16) -- Net Earnings $1,147 $751 Earnings Per Share: Basic $0.08 $0.06 Diluted $0.07 $0.05 For The Three Months Ended June 30, 2004 2003 Reconciliation to EBITDA* Net Earnings (US GAAP) $1,147 $751 Interest income (45) (58) Interest expense 390 525 Income Taxes 347 462 Depreciation 731 663 EBITDA* $2,570 $2,343 CENTURY CASINOS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (Unaudited) Dollar amounts in thousands, For The Six Months Ended June 30, except for share information 2004 2003 Operating Revenue: Casino $16,874 $15,145 Hotel, food and beverage 1,939 1,638 Other 276 295 19,089 17,078 Less promotional allowances 2,111 2,144 Net operating revenue 16,978 14,934 Operating Costs and Expenses: Casino 6,477 5,366 Hotel, food and beverage 1,402 1,150 General and administrative 4,202 3,742 Depreciation 1,382 1,311 Total operating costs and expenses 13,463 11,569 Income from unconsolidated subsidiaries 51 -- Earnings from Operations 3,566 3,365 Non-operating Income (expense) Interest expense (812) (1,052) Other income, net 126 129 Non-operating items from unconsolidated subsidiaries (8) -- Non-operating income (expense), net (694) (923) Earnings before Income Taxes and Minority Interest 2,872 2,442 Provision for income taxes 790 928 Earnings before Minority Interest 2,082 1,514 Minority interest in subsidiary earnings (31) (8) Net Earnings $2,051 $1,506 Earnings Per Share: Basic $0.15 $0.11 Diluted $0.13 $0.10 For The Six Months Ended June 30, 2004 2003 Reconciliation to EBITDA* Net Earnings (US GAAP) $2,051 $1,506 Interest income (91) (115) Interest expense 812 1,052 Income Taxes 790 928 Depreciation 1,382 1,311 EBITDA* $4,944 $4,682 CENTURY CASINOS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS June 30, 2004 December 31, 2003 Dollar Amounts in Thousands (Unaudited) Assets Current Assets $5,797 $6,307 Other Assets 52,019 48,510 Total Assets $57,816 $54,817 Liabilities and Shareholder's Equity Current Liabilities $7,578 $6,471 Non-Current Liabilities 14,032 15,298 Shareholders' Equity 36,206 33,048 Total Liabilities and Shareholders' Equity $57,816 $54,817 *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., +1-719-527-8300, Web site: http://www.centurycasinos.com/

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