CNTY Century Casinos Inc

Century Casinos Announces Third Quarter Earnings COLORADO SPRINGS, Colo., Oct. 29 /PRNewswire-FirstCall/ -- For the third quarter ended September 30, 2004, Century Casinos, Inc. (NASDAQ:CNTY) reported a 35% increase in net earnings to $1,233,000, or $0.09 per share, from $914,000 or $0.07 per share for the same period of 2003. The Company also reported a 17% increase in net operating revenue to $9,669,000 in 2004 from $8,278,000 in 2003. EBITDA* (earnings before interest expense, income taxes, depreciation and amortization) reported for the third quarter of 2004 was $2,815,000 compared to $2,515,000 reported in the third quarter of 2003. Interest expense for the Company for the third quarter ended September 30, 2004 decreased by 24% to $389,000 from $512,000 during the same period in 2003. Womacks' casino revenue was $5,557,000 for the quarter compared to $5,694,000 reported for the same period in 2003. Casino costs increased by 5% to $1,912,000 in 2004 from $1,829,000 in 2003. General and administrative expense decreased by 9% to $933,000 in 2004 from $1,022,000 in 2003. Depreciation was $382,000 compared to $334,000 for the same period in 2003. Caledon's casino revenue increased by 40% to $3,148,000 compared to $2,256,000 reported in the third quarter 2003. Improvement in the Rand versus the dollar when comparing the three months ended September 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 22%. Casino costs in US dollars have increased 37%, which is in line with the increase in revenue. General and administrative expense was $524,000 in 2004 compared to $368,000 in 2003. Depreciation was $318,000 compared to $275,000 in the same last year period. "We are very happy with the continued improvement in Caledon's operating results and have confidence that our current staffing and training improvements at Womacks will enhance the customer experience," said Erwin Haitzmann, Chairman and CEO. "In addition, our recently announced opportunities for growth in Central City, Colorado and Franklin County, Iowa are very exciting. These, combined with the continuing progress in Edmonton, Alberta, Canada, have created one of the most eventful times in our history." Haitzmann continued. For the nine months ended September 30, 2004 Net earnings for the nine months ended September 30, 2004 were $3,284,000 or $0.24 per share, compared to $2,420,000 or $0.18 per share, for the same period of 2003, an increase of 36%. For the nine months ended September 30, 2004, the Company reported a 15% increase in net operating revenue to $26,647,000 from $23,212,000 in 2003. EBITDA for the nine month period was $7,759,000 in the 2004 period compared to $7,197,000 in the 2003 period. Interest expense for the Company for the first nine months of 2004 decreased by 23% to $1,201,000 from $1,564,000 during the same period in 2003. Womacks' casino revenue was $15,503,000 for the first nine months of 2004 compared to $16,151,000 for the first nine months of 2003. Casino costs increased by $148,000, or 3% during the first nine months of 2004 compared to 2003. General and administrative expense decreased by 4%, to $2,719,000 in the 2004 period from $2,824,000 in the 2003 period. Caledon's casino revenue increased by 41% during the first nine months of 2004 to $8,872,000 compared to $6,275,000 in the same period in 2003. Excluding the effect of the change in the Rand/Dollar conversion rate from year to year, Caledon's casino revenue increased by 20%. Casino costs in US dollars increased by $1,008,000, or 39% during the first nine months of 2004 compared to 2003. General and administrative expense was $1,491,000 in 2004 and $1,077,000 in 2003. Excluding the effect in the Rand/Dollar conversion rate, general and administrative expense increased 18%. The Company will post a slide show presentation of the Results of Operations for the third quarter of 2004 on its web site at http://www.centurycasinos.com/ on Friday, October 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 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 the significant conditions to closing the Central City and Iowa transactions and completion of the Central City and Iowa casino and hotel projects, which cannot be assured, acceptance by the public of gaming at these new casinos, significant competition from many large and established casinos in the Company's markets, other 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) For The Three Months Dollar amounts in thousands, Ended September 30, except for share information 2004 2003 Operating Revenue: Casino $9,349 $8,525 Hotel, food and beverage 1,258 932 Other 267 106 10,874 9,563 Less promotional allowances 1,205 1,285 Net operating revenue 9,669 8,278 Operating Costs and Expenses: Casino 3,655 3,132 Hotel, food and beverage 843 691 General and administrative 2,292 2,004 Depreciation 732 675 Total operating costs and expenses 7,522 6,502 Loss from unconsolidated subsidiary (45) -- Earnings from Operations 2,102 1,776 Non-operating Income (expense): Interest expense (389) (512) Other income, net 37 113 Non-operating items from unconsolidated subsidiary 6 -- Non-operating expense, net (346) (399) Earnings before Income Taxes and Minority Interest 1,756 1,377 Provision for income taxes 498 463 Earnings before Minority Interest 1,258 914 Minority interest in subsidiary earnings (25) -- Net Earnings $1,233 $914 Earnings Per Share: Basic $0.09 $0.07 Diluted $0.08 $0.06 Reconciliation to EBITDA Net Earnings (US GAAP) $1,233 $914 Interest Income (37) (49) Interest Expense 389 512 Income Taxes 498 463 Depreciation 732 675 EBITDA* $2,815 $2,515 CENTURY CASINOS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (Unaudited) For The Nine Months Dollar amounts in thousands, Ended September 30, except for share information 2004 2003 Operating Revenue: Casino $26,223 $23,670 Hotel, food and beverage 3,197 2,570 Other 543 401 29,963 26,641 Less promotional allowances 3,316 3,429 Net operating revenue 26,647 23,212 Operating Costs and Expenses: Casino 10,132 8,498 Hotel, food and beverage 2,245 1,841 General and administrative 6,494 5,746 Depreciation 2,114 1,986 Total operating costs and expenses 20,985 18,071 Income from unconsolidated subsidiary 6 -- Earnings from Operations 5,668 5,141 Non-operating Income (expense): Interest expense (1,201) (1,564) Other income, net 163 242 Non-operating items from unconsolidated subsidiary (2) -- Non-operating expense, net (1,040) (1,322) Earnings before Income Taxes and Minority Interest 4,628 3,819 Provision for income taxes 1,288 1,391 Earnings before Minority Interest 3,340 2,428 Minority interest in subsidiary earnings (56) (8) Net Earnings $3,284 $2,420 Earnings Per Share: Basic $0.24 $0.18 Diluted $0.21 $0.16 Reconciliation to EBITDA Net Earnings (US GAAP) $3,284 $2,420 Interest Income (128) (164) Interest Expense 1,201 1,564 Income Taxes 1,288 1,391 Depreciation 2,114 1,986 EBITDA* $7,759 $7,197 CENTURY CASINOS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS September 30, December 31, 2004 2003 Dollar Amounts in Thousands (Unaudited) Assets Current Assets $6,861 $6,307 Other Assets 51,430 48,510 Total Assets $58,291 $54,817 Liabilities and Shareholder's Equity Current Liabilities $8,227 $6,471 Non-Current Liabilities 13,163 15,298 Shareholders' Equity 36,901 33,048 Total Liabilities and Shareholders' Equity $58,291 $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. 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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