COLORADO SPRINGS, Colo., Nov. 9 /PRNewswire-FirstCall/ -- Century
Casinos, Inc. (Nasdaq: CNTY; Vienna Stock Exchange) today reported
financial results for the third quarter and nine months ended
September 30, 2007. Third Quarter 2007 For the third quarter of
2007, net operating revenues were $24,724,000 and consolidated
Adjusted EBITDA* was $5,875,000. This represents an increase over
the same quarter of last year of 46% in net operating revenues
($16,978,000 in the third quarter of 2006) and an increase of 40%
in consolidated Adjusted EBITDA* ($4,200,000 in the third quarter
of 2006). Our new casinos in Central City (Colorado), Newcastle
(South Africa) and Edmonton (Canada) contributed $7,189,000 towards
the total increase of $7,746,000 in net operating revenue. The
three new casinos also contributed $2,306,000 of additional
Adjusted EBITDA* to the Company, offset by approximately $400,000
of corporate charges for increased payroll, travel and professional
services attributed to the Company's expansion efforts. On a US
GAAP ("Generally Accepted Accounting Principles") basis, the
Company reported net earnings of $1,949,000, or $0.08 per basic
share. The 2007 third quarter reflects increases in depreciation
charges and net interest charges, primarily related to the opening
and financing of three new casino operations in 2006. In addition,
stock-based compensation expenses increased $354,000 primarily due
to the issuance of stock options and restricted stock in July 2007.
US GAAP net earnings for the 2006 third quarter were $1,851,000, or
$0.08 per basic share. The 2006 third quarter includes pre-opening
expenses of $604,000 and a recovery of approximately $400,000 of
previously written off loans in conjunction with the sale of our
interest in a casino project located in South Africa. Nine Months
Ended September 30, 2007 For the nine months ended September 30,
2007, net operating revenues were $68,458,000 and consolidated
Adjusted EBITDA* was $15,863,000. This represents an increase over
the same period of last year of 79% in net operating revenues
($38,313,000 for the nine months ended September 30, 2006) and an
increase of 50% in consolidated Adjusted EBITDA* ($10,562,000 for
the nine months ended September 30, 2006). Our new casinos in
Central City (Colorado), Newcastle (South Africa) and Edmonton
(Canada) contributed $29,054,000 towards the total increase of
$30,145,000 in net operating revenue. The three new casinos also
contributed $7,286,000 of additional Adjusted EBITDA* to the
Company, offset by approximately $1,300,000 of corporate charges
primarily related to payroll, travel and professional services
attributed to the Company's expansion efforts, approximately
$300,000 of increased marketing charges at Womacks and $335,000 of
preferred dividends paid to preference shareholders at Caledon. On
a US GAAP basis, the Company reported net earnings of $4,532,000,
or $0.20 per basic share for the first nine months of 2007. The
2007 results reflect increases in depreciation charges and net
interest charges, primarily related to the opening and financing of
three new casino operations in 2006. US GAAP net earnings for the
first nine months of 2006 were $4,872,000, or $0.21 per basic
share. The 2006 results include pre-opening expenses of $2,116,000
and a recovery of approximately $400,000 of previously written off
loans in conjunction with the sale of our interest in a casino
project located in South Africa. "We are pleased with the progress
that we are making in both our established markets and at our newly
established casinos," say co-CEO's Erwin Haitzmann and Peter
Hoetzinger. "We have seen steady growth in net operating revenue as
a result of our concerted marketing efforts." Recent Developments *
Womacks Casino in Cripple Creek is undergoing an approximate $2
million renovation through which we intend to raise the standard
for facilities in Cripple Creek and garner further market share.
The project is expected to be completed for the Christmas season. *
The Alberta Gaming and Liquor Commission recently added 56 slot
machines (54 added as of September 30, 2007) at our property in
Edmonton. Management believes that this is in recognition of our
accomplishments since opening in November 2006 and is also a sign
that the gaming market in Edmonton is expected to grow further. *
The hotels at our two South Africa properties in Caledon and
Newcastle were awarded superior 4-star ratings, which we believe
will attract additional customers to these properties. * During the
second quarter of 2007, the Colorado legislature approved a bill
banning smoking at Colorado casinos starting January 1, 2008. This
could result in fewer customers who smoke or more customers who do
not smoke visiting our properties in Colorado. Property Results
Womacks Casino -- Net operating revenue at Womacks Casino in
Cripple Creek, Colorado increased 6% to $5,011,000 for the third
quarter of 2007 compared to $4,730,000 reported for the same period
in 2006. Womacks' Adjusted EBITDA* for the third quarter of 2007
was $1,832,000 compared to $2,067,000 in the third quarter of 2006.
The decrease in Adjusted EBITDA* is primarily due to approximately
$190,000 in increased marketing charges related to a special
marketing promotion in the third quarter of 2007. Womacks' net
operating revenue was $13,510,000 for the first nine months of 2007
compared to $12,534,000 for the first nine months of 2006. Womacks'
Adjusted EBITDA* for the first nine months of 2007 was $4,804,000
compared to $4,947,000 in the same 2006 period. The decrease in
Adjusted EBITDA* is primarily due to approximately $329,000 in
increased marketing charges primarily related to a special
marketing promotion in the third quarter of 2007. Century Casino
and Hotel (Central City) -- Gaming revenue at the Century Casino
and Hotel in Central City, Colorado has grown consistently since
opening, with our highest monthly revenue occurring in September
2007. Net operating revenue at the Century Casino and Hotel
increased 27% to $5,954,000 for the third quarter of 2007 compared
to $4,688,000 reported for the same period in 2006. Adjusted
EBITDA* for the third quarter of 2007 was $1,769,000 compared to
$949,000 in the third quarter of 2006. The increase in Adjusted
EBITDA* is primarily due to improved revenues and a reduction in
marketing expenditures. Marketing charges for the three months
ended September 30, 2006 were higher than usual due to the opening
of the casino in July 2006. Adjusted EBITDA* for the three months
ended September 30, 2006 excludes approximately $315,000 of
pre-opening expenditures. The Century Casino and Hotel's net
operating revenue was $15,529,000 for the first nine months of 2007
compared to $4,688,000 for the first nine months of 2006. The
property commenced operations in July 2006. The Century Casino and
Hotel's Adjusted EBITDA* for the first nine months of 2007 was
$3,902,000 compared to $1,622,000 in the same 2006 period. Adjusted
EBITDA* for the nine months ended September 30, 2006 excludes
approximately $1,726,000 of pre-opening expenditures. Century
Casino and Hotel (Edmonton) -- We opened the casino in November
2006 with 600 slot machines and have since increased the number of
machines on the floor to 654. Net operating revenue and Adjusted
EBITDA* for the three months ended September 30, 2007 was
$4,930,000 and $1,503,000, respectively. Net operating revenue for
the nine months ended September 30, 2007 was $13,562,000 and
Adjusted EBITDA* was $3,651,000. The Caledon Hotel, Spa and Casino
(Caledon, South Africa) - Net operating revenue at the Caledon
increased 4% to $4,526,000 for the third quarter of 2007 compared
to $4,350,000 reported for the same period in 2006. Adjusted
EBITDA* for the third quarter of 2007 was $1,886,000 compared to
$1,795,000 in the third quarter of 2006. The increase in Adjusted
EBITDA* is primarily due to a decrease in professional fees and
property taxes. Dividends of $59,000 were paid to preference
shareholders during the third quarter of 2007. The Caledon's net
operating revenue was $13,324,000 for the first nine months of 2007
compared to $13,783,000 for the first nine months of 2006. The
decrease was due to the weakening of the South African Rand
("Rand") versus the US Dollar on a year to date basis. Net
operating revenue in Rand was ZAR 95,213,000 for the first nine
months of 2007 compared to ZAR 90,503,000 for the first nine months
of 2006. The Caledon's Adjusted EBITDA* for the first nine months
of 2007 was $5,317,000 compared to $5,631,000 in the same 2006
period. The decrease in Adjusted EBITDA* is primarily due to the
weakening of the Rand versus the US Dollar on a year to date basis
and the payment of $335,000 in dividends to preference
shareholders. Century Casino and Hotel (Newcastle, South Africa) --
We acquired our 60% ownership interest in Newcastle, South Africa
on April 1, 2006. Net operating revenue increased 53% to $2,885,000
for the third quarter of 2007 compared to $1,891,000 reported for
the same period in 2006. Newcastle's Adjusted EBITDA* for the three
months ended September 30, 2007 was $693,000 compared to $607,000
for the three months ended September 30, 2006. We opened a new
casino facility in December 2006. Prior to this date, casino
operations were held in a temporary facility. Management believes
that the increases in net operating revenues and Adjusted EBITDA*
are directly related to the opening of our new facility, which
management believes is superior to the old facility. For the nine
months ended September 30, 2007, Newcastle's net operating revenues
were $8,595,000 compared to $3,941,000 for the nine months ended
September 30, 2006. The casino provided the Company with Adjusted
EBITDA* of $2,756,000 for the period ended September 30, 2007.
Other Operations -- The Company's other operating segments, which
include the Century Casino Millennium in Prague and the Company's
ship based casinos, contributed net operating revenues of
$1,375,000 and Adjusted EBITDA* of $206,000 for the three months
ended September 30, 2007 compared to net operating revenues of
$1,318,000 and Adjusted EBITDA* of $281,000 for the three months
ended September 30, 2006. Our other operations contributed net
operating revenues of $3,888,000 and $3,352,000 for the nine months
ended September 30, 2007 and 2006, respectively. Our other
operations contributed Adjusted EBITDA* of $479,000 and $706,000
for the nine months ended September 30, 2007 and 2006,
respectively. The decline in Adjusted EBITDA* is primarily due to
the reduction of the number of ship-based casinos and the write-off
of costs associated with a contract that the Company decided not to
pursue. The Company will post a slide show presentation of the
results of operations for the third quarter of 2007 on its web site
at http://www.cnty.com/corporate/investor/presentations/ on Friday,
November 9, 2007. On Friday, November 9, 2007, Century Casinos will
host a "Q3 2007 Earnings" conference call, at 9:00am EST; 3:00pm
CET respectively. US domestic participants please dial
+1-800-862-9098, all other international participants please use
+1-785-424-1051 to dial-in. For a recording of the call, please
visit our website at
http://www.cnty.com/corporate/investor/financial-results/. * See
discussion and reconciliation of Adjusted EBITDA below. CENTURY
CASINOS, INC. AND SUBSIDIARIES FINANCIAL INFORMATION - US GAAP
BASIS Century Casinos, Inc. Condensed Consolidated Statements of
Earnings (Unaudited) (Amounts in thousands, except for share
information) For the Three Months For the Nine Months Ended
September 30, Ended September 30, 2007 2006 2007 2006 Operating
Revenue: Casino $23,163 $16,261 $64,541 $36,667 Hotel, food and
beverage 3,479 1,627 9,325 3,981 Other 550 298 1,489 758 Gross
revenue 27,192 18,186 75,355 41,406 Less promotional allowances
2,468 1,208 6,897 3,093 Net operating revenue 24,724 16,978 68,458
38,313 Operating Costs and Expenses: Casino 9,222 6,705 25,790
14,368 Hotel, food and beverage 2,802 1,616 7,927 3,437 General and
administrative 7,166 5,118 19,951 12,667 Impairments and other
write-offs, net of (recoveries) 9 (420) 34 (405) Depreciation 1,987
1,293 6,310 2,998 Total operating costs and expenses 21,186 14,312
60,012 33,065 Earnings from Unconsolidated Subsidiary 37 - 91 -
Earnings from Operations 3,575 2,666 8,537 5,248 Non-Operating
Income (Expense): Interest income 85 156 802 595 Interest expense
(1,649) (1,320) (5,280) (1,777) Other (expense) income, net (146)
(19) 641 300 Non-operating (expense), net (1,710) (1,183) (3,837)
(882) Earnings before Income Taxes, Minority Interest and Preferred
Dividends 1,865 1,483 4,700 4,366 Provision (benefit) for income
taxes 27 (67) 655 394 Earnings before Minority Interest and
Preferred Dividends 1,838 1,550 4,045 3,972 Minority interest in
subsidiary losses, net 170 301 822 900 Preferred dividends issued
by subsidiary (59) - (335) - Net Earnings $1,949 $1,851 $4,532
$4,872 Earnings Per Share: Basic $0.08 $0.08 $0.20 $0.21 Diluted
$0.08 $0.08 $0.19 $0.20 Weighted Average Shares Outstanding: Basic
23,051,067 22,980,567 23,043,351 22,705,842 Diluted 23,833,498
23,947,857 23,904,861 23,905,912 CENTURY CASINOS, INC. AND
SUBSIDIARIES FINANCIAL INFORMATION - US GAAP BASIS Century Casinos,
Inc. Condensed Consolidated Balance Sheets (Unaudited) (Amounts in
thousands) September 30, December 31, 2007 2006 Assets Current
Assets $24,239 $41,167 Other Assets 171,031 156,693 Total Assets
$195,270 $197,860 Liabilities and Shareholders' Equity Current
Liabilities $24,672 $35,991 Non-Current Liabilities 61,266 61,442
Shareholders' Equity 109,332 100,427 Total Liabilities and
Shareholders' Equity $195,270 $197,860 CENTURY CASINOS, INC. AND
SUBSIDIARIES SUPPLEMENTAL INFORMATION Century Casinos, Inc. Net
Operating Revenues by Property (Unaudited) (Amounts in thousands)
For the Three Months For the Nine Months Ended September 30, Ended
September 30, 2007 2006 2007 2006 Womacks Casino and Hotel (Cripple
Creek) $5,011 $4,730 $13,510 $12,534 Century Casino and Hotel
(Central City) 5,954 4,688 15,529 4,688 Century Casino and Hotel
(Edmonton) 4,930 1 13,562 3 The Caledon (Caledon) 4,526 4,350
13,324 13,783 Century Casino and Hotel (Newcastle) 2,885 1,891
8,595 3,941 Century Casino Millennium (Prague) 719 561 1,862 956
Cruise Ships 656 757 2,026 2,396 Corporate 43 - 50 12 Consolidated
net operating revenues $24,724 $16,978 $68,458 $38,313 Century
Casinos, Inc. Adjusted EBITDA* by Property (Unaudited) (Amounts in
thousands) For the Three Months For the Nine Months Ended September
30, Ended September 30, 2007 2006 2007 2006 Womacks Casino and
Hotel (Cripple Creek) $1,832 $2,067 $4,804 $4,947 Century Casino
and Hotel (Central City) 1,769 949 3,902 1,622 Century Casino and
Hotel (Edmonton) 1,503 103 3,651 108 The Caledon (Caledon) 1,886
1,795 5,317 5,631 Century Casino and Hotel (Newcastle) 693 607
2,756 1,293 Century Casino Millennium (Prague) 164 66 259 76 Cruise
Ships 42 215 220 630 Corporate (2,014) (1,602) (5,046) (3,745)
Adjusted EBITDA* $5,875 $4,200 $15,863 $10,562 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, 2007 2006 2007 2006 Womacks Casino and Hotel (Cripple
Creek) 37% 44% 36% 39% Century Casino and Hotel (Central City) 30%
20% 25% 35% Century Casino and Hotel (Edmonton) 30% - 27% - The
Caledon (Caledon) 42% 41% 40% 41% Century Casino and Hotel
(Newcastle) 24% 32% 32% 33% Century Casino Millennium (Prague) 23%
12% 14% 8% Cruise Ships 6% 29% 11% 26% Corporate - - - -
Consolidated Adjusted EBITDA Margin** 24% 25% 23% 28% Century
Casinos, Inc. Reconciliation of Adjusted EBITDA* to Net Earnings
(Amounts in thousands) For the Three Months For the Nine Months
Ended September 30, Ended September 30, 2007 2006 2007 2006 Net
Earnings $1,949 $1,851 $4,532 $4,872 Minority interest (170) (301)
(822) (900) Interest income (85) (156) (802) (595) Interest expense
1,649 1,320 5,280 1,777 Income tax expense (benefit) 27 (67) 655
394 Depreciation 1,987 1,293 6,310 2,998 Pre-opening expenses - 602
- 2,115 Stock compensation expense 430 79 458 280 Impairments and
other write-offs, net of (recoveries) 9 (420) 34 (405) Loss (gain)
on disposition of fixed assets 73 (1) 73 26 Other one-time items
(1) 6 - 145 - Adjusted EBITDA* $5,875 $4,200 $15,863 $10,562 (1)
Other one-time items includes losses associated with thefts at
certain of our properties of $6,000 and $145,000 for the three and
nine months ended September 30, 2007, respectively. * The Company
defines Adjusted EBITDA as earnings before interest, income taxes,
depreciation, amortization, minority interest, pre-opening
expenses, non-cash stock based compensation charges, asset
impairment costs, gains (losses) on disposition of fixed assets,
discontinued operations and certain other one-time items.
Inter-company transactions consisting primarily of management fees
and interest, along with their related tax effects, are excluded
from the presentation of net earnings and Adjusted EBITDA reported
for each property. These adjustments have no effect on the
consolidated results. 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
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 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 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. Not all of the
aforementioned benefits and costs occur in each reporting period,
but have been included in the definition based on historic
activity. ** We define Adjusted EBITDA margin as Adjusted EBITDA
divided by net operating revenues. Management uses this margin as
one of several measures 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 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 full casinos and one slot casino 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" within the meaning of 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 revenue growth, marketing efforts,
progress at our casinos, gaming market growth, the impact of
improvements at our properties and the impact of the Colorado law
banning smoking in 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 filed on March 16, 2007. 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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