COLORADO SPRINGS, Colo., May 10 /PRNewswire-FirstCall/ -- Century
Casinos, Inc. (Nasdaq: CNTY; Vienna Stock Exchange) reported record
net operating revenues of $21,144,000 for the quarter ended March
31, 2007, compared to revenues of $9,474,000 for the quarter ended
March 31, 2006. Casino revenue increased by $10,827,000 or 118% for
the quarter ended March 31, 2007 over the same 2006 period,
primarily due to the acquisition of a 60% majority interest of a
casino operation in Newcastle, South Africa on April 1, 2006, the
opening of the casino in Central City, Colorado on July 11, 2006,
the opening of the casino in Edmonton, Alberta, Canada on November
17, 2006 and improved revenues at our casino in Cripple Creek,
Colorado. For the quarter ended March 31, 2007, the Company
reported net earnings of $1,542,000 or $0.07 per share compared to
net earnings of $1,690,000 or $0.08 per share for the quarter ended
March 31, 2006. The decrease is primarily due to increased interest
charges on third party debt. Adjusted EBITDA* for the first quarter
of 2007 was $5,206,000 compared to $2,388,000 in the first quarter
of 2006, a 118% increase. For the quarter ended March 31, 2007,
earnings from operations increased $1,050,000, or 69%, compared to
the quarter ended March 31, 2006, primarily the result of the
Company's additional operations. On a Company-wide basis, casino
operating margins** for the quarter ended March 31, 2007 were 58.1%
compared to 61.6% for the same period in 2006 primarily due to
increased marketing efforts and associated expenses at our casinos.
Although we reported revenue growth at our casino in Cripple Creek,
Colorado when comparing the first quarter of 2007 to the same
quarter in 2006, management believes that a string of severe winter
storms affected business for approximately seven straight weeks
beginning in December 2006 and ending in January 2007, had a
negative impact on the revenues at both of our Colorado casinos and
consequently had a negative impact on reported earnings and
adjusted EBITDA. Current Period Acquisitions and Other Recent
Developments The Company acquired 100% of G5 SP.z.o.o, a Polish
company, on March 12, 2007. G5 holds 33.3% of the issued and
outstanding shares of Casinos Poland Ltd. The Company will begin
reporting its portion of the earnings of Casinos Poland Ltd. in the
second quarter of 2007. In addition, in an effort to reduce third
party interest charges, the Company repaid $12,500,000 of
outstanding debt on its Central City, Colorado property in March
2007. Caledon, South Africa Three months ended March 31, 2007 vs.
2006 Casino revenue, in Rand, increased by 4.9% to R26,337,000 for
the first quarter of 2007 compared to R25,102,000 in the first
quarter of 2006 primarily from slot machine win. However, a
deterioration of the Rand, quarter over quarter, has had a
significant impact on the results reported in dollars. As a result,
Caledon's casino revenue decreased 10.4% to $3,647,000 for the
first quarter of 2007 compared to $4,070,000 reported in the first
quarter of 2006. Casino expenses decreased 4.0% from the first
quarter of 2006 to the first quarter of 2007 primarily the result
of the deterioration of the Rand offset by incremental fees on
gaming revenues and increased advertising expenses. As a result,
casino operating margins** were 61.4% for the three months ended
March 31, 2007 compared to 64.0% for the same period in 2006. The
remaining operating expenses decreased 1.9%. Expense savings
resulting from the deterioration of the Rand were offset by a
$68,750 fee paid to a preference shareholder that exchanged its
preference shares for a new class of preference shares. Net
earnings in the first quarter of 2007 were $665,000 compared to
$1,143,000 in the first quarter of 2006, primarily the result of
exchange rate fluctuations and dividends issued to preference
shareholders totaling $219,000. No dividends were paid for the
quarter ended March 31, 2006. Caledon's adjusted EBITDA* for the
first quarter of 2007 was $1,612,000 compared to $2,111,000 in the
first quarter of 2006. Newcastle, South Africa Three months ended
March 31, 2007 We acquired our interest in Newcastle, South Africa
on April 1, 2006. For the three months ended March 31, 2007, net
operating revenue at this facility was $2,653,000. Casino operating
margins** were 55.6%, generally consistent with our other South
Africa property. The Newcastle operation provided the Company with
net earnings of $258,000 for the quarter ended March 31, 2007.
Newcastle's adjusted EBITDA* for the first quarter of 2007 was
$887,000. Cripple Creek, Colorado Three months ended March 31, 2007
vs. 2006 Net operating revenue at Womacks Casino in Cripple Creek,
Colorado increased to $4,059,000, or 5.8%, for the first quarter of
2007 compared to $3,836,000 reported for the same period in 2006.
Despite the quarter over quarter increase in net operating revenue,
management believes that January 2007 revenues were negatively
impacted by a series of winter storms that began in late December
2006 and continued in January 2007. Total operating expenses
increased $349,000, or 12.4%, to $3,155,000 in the first quarter of
2007 from $2,806,000 in the first quarter of 2006. Casino operating
margins** were 63.2% for the first quarter of 2007 compared to
66.8% for the same 2006 quarter due primarily to increased
marketing efforts and related expenses. Net earnings reported for
Womacks in the first quarter of 2007 were $554,000 compared to
$582,000 in the first quarter of 2006. Womacks' adjusted EBITDA*
for the first quarter of 2007 was $1,293,000 compared to $1,432,000
in the first quarter of 2006. Central City, Colorado Three months
ended March 31, 2007 vs. 2006 We opened a casino and hotel in
Central City, Colorado on July 11, 2006. Prior to July 11, 2006,
operating expenses consisted primarily of pre-opening and
non-capitalizable construction expenses. For the three months ended
March 31, 2007, net operating revenue at this facility was
$4,515,000. Casino operating margins** were 59.7% for the three
months ended March 31, 2007, which is below our expectations.
Although revenues have not yet met our expectations, gaming revenue
has grown consistently since opening despite poor weather
conditions in January 2007. Management is continuing to evaluate
methods to increase revenues at the property. The Central City
operation reported a net loss of $126,000 for the quarter ended
March 31, 2007. Central City's adjusted EBITDA* for the first
quarter of 2007 was $1,055,000. Edmonton, Alberta, Canada Three
months ended March 31, 2007 vs. 2006 We opened a casino and hotel
in Edmonton, Alberta, Canada on November 17, 2006. Prior to this
date, operating expenses for this segment consisted primarily of
pre-opening and non-capitalizable construction expenses. Edmonton
reported $4,152,000 in net operating revenue for the quarter ended
March 31, 2007. Casino operating margins** were 60.3% in the first
quarter of 2007. Delays in opening the property's hotel hampered
hotel, food and beverage revenues for the quarter ended March 31,
2007. The hotel opened in March 2007. Edmonton reported net
earnings of $292,000 and adjusted EBITDA* of $983,000 in the first
quarter 2007. The Company will post a slide show presentation of
the results of operations for the first quarter of 2007 on its web
site at http://www.centurycasinos.com/ on Thursday, May 10, 2007. *
See discussion of adjusted EBITDA below. ** See discussion of
casino operating margins below. CENTURY CASINOS, INC. AND
SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
(Unaudited) Amounts in thousands, except for share information For
The Three Months Ended March 31, 2007 2006 Operating Revenue:
Casino $19,972 $9,145 Hotel, food and beverage 2,867 1,082 Other
493 148 23,332 10,375 Less promotional allowances 2,188 901 Net
operating revenue 21,144 9,474 Operating Costs and Expenses: Casino
8,374 3,513 Hotel, food and beverage 2,350 614 General and
administrative 5,823 3,042 Impairments and other write-offs, net of
(recoveries) -- 7 Depreciation 2,019 770 Total operating costs and
expenses 18,566 7,946 Earnings from Unconsolidated Subsidiary -- --
Earnings from Operations 2,578 1,528 Non-Operating Income
(Expense): Interest income 274 279 Interest expense (1,932) (203)
Other income, net 828 90 Non-operating items from unconsolidated
subsidiary -- -- Non-operating (expense) income, net (830) 166
Earnings before Income Taxes and Minority Interest 1,748 1,694
Provision for income taxes 324 356 Earnings before Minority
Interest 1,424 1,338 Minority interest in subsidiary losses, net
337 352 Preferred dividends issued by subsidiary (219) -- Net
Earnings $1,542 $1,690 Earnings Per Share: Basic $0.07 $0.08
Diluted $0.06 $0.07 Reconciliation to adjusted EBITDA* Net earnings
$1,542 $1,690 Minority interest (337) (352) Interest income (274)
(279) Interest expense 1,932 203 Income taxes 324 356 Depreciation
2,019 770 Adjusted EBITDA* $5,206 $2,388 * See discussion of
adjusted EBITDA below. CENTURY CASINOS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) Amounts in
thousands March 31, December 31, 2007 2006 Assets Current Assets
$22,431 $41,167 Other Assets 161,679 156,693 Total Assets $184,110
$197,980 Liabilities and Shareholders' Equity Current Liabilities
22,182 35,991 Non-Current Liabilities 61,424 61,442 Shareholders'
Equity 100,504 100,427 Total Liabilities and Shareholders' Equity
$184,110 $197,980 * Adjusted EBITDA, which we define as earnings
before interest, income taxes, depreciation, amortization and
minority interest, 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 among its
operating segments. 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 interest income, interest expense, income tax expense,
depreciation, amortization and minority interest expense 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 our lending institutions
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. ** We
define casino operating margins as casino revenues less casino
expenses divided by casino revenues. Management uses this measure
to evaluate the efficiency of our casino operations. About Century
Casinos, Inc.: Century Casinos, Inc. is an international casino
entertainment company that owns and operates the Womacks Casino and
Hotel in Cripple Creek, Colorado, the Century Casino & Hotel in
Edmonton, Alberta, Canada, and the Century Casino Millennium in the
Marriott Hotel in Prague, Czech Republic; operates the casinos
aboard the Silver Wind, Silver Cloud, The World of ResidenSea, and
the vessels of Oceania Cruises; owns a 65% interest in, and has a
management contract for, Century Casino & Hotel in Central
City, Colorado. Through its subsidiary Century Casinos Africa (Pty)
Limited, it owns and operates The Caledon Hotel, Spa & Casino
near Cape Town, South Africa, as well as 60% of, and provides
technical casino services to, Century Casino Newcastle, in
Newcastle, South Africa. Furthermore, the Company's Austrian
subsidiary, Century Casinos Europe GmbH, holds a 33.3% ownership
interest in Casinos Poland Ltd, the owner and operator of seven
casinos and one slot arcade in Poland. The Company continues to
pursue other international projects in various stages of
development. For more information about Century Casinos, visit our
new website at http://www.centurycasinos.com/. Century Casinos'
common stock trades on The NASDAQ Capital Market(R) and the Vienna
Stock Exchange 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 8-K. 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. DATASOURCE: Century
Casinos, Inc. CONTACT: Peter Hoetzinger, Co CEO & President,
+1-719-689-5813, +43-664-355-3935, , or Larry Hannappel, Senior
vice President, +1-719-229-6448, , both of Century Casinos, Inc.
Web site: http://www.centurycasinos.com/
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