COLORADO SPRINGS, Colo., Aug. 10 /PRNewswire-FirstCall/ -- Century
Casinos, Inc. (Nasdaq: CNTY; Vienna Stock Exchange) announced today
the financial results for the three and six months ended June 30,
2009. Second Quarter 2009 For the second quarter of 2009, net
operating revenue from continuing operations was $11,884,000 and
consolidated Adjusted EBITDA* was $1,563,000. This represents a 14%
decrease in net operating revenue from continuing operations over
the same quarter of last year ($13,873,000 in the second quarter of
2008) and a 33% decrease in consolidated Adjusted EBITDA*
($2,338,000 in the second quarter of 2008). The Company experienced
a decline in net operating revenue at its properties in Colorado,
primarily due to a decrease in its casino's (Womacks) market share
in Cripple Creek and a decline in the overall gaming market in
Central City. In addition, net operating revenue in Edmonton,
Canada, as reported in U.S. dollars, was 16% lower than the same
period in 2008, but only declined by 3% in the local currency
(Canadian dollar). The reported results were negatively affected by
a 16% decrease in the average exchange rate between the U.S. dollar
and Canadian dollar in the second quarter of 2009 compared to the
second quarter of 2008. Management attributes the decline in net
operating revenue in Edmonton to decreased table game revenue.
Including discontinued operations, the Company reported net
earnings attributable to Century Casinos, Inc. and subsidiaries of
$18,903,000, or $0.80 per basic share and fully diluted share, for
the second quarter of 2009. During the second quarter of 2009, the
Company reported a gain of $19,848,000, or $0.84 per basic and
fully diluted share, on the previously reported disposition of
Century Casinos Africa ("CCA"). The Company reported net earnings
attributable to Century Casinos, Inc. and subsidiaries of $835,000,
or $0.04 per basic and fully diluted share, for the second quarter
of 2008. Operating losses from continuing operations were $307,000
in the second quarter of 2009 compared to earnings of $289,000 for
the second quarter of 2008. The Company reported a loss from
continuing operations of $1,045,000, or a loss of $0.05 per basic
and fully diluted share, for the second quarter of 2009, compared
to a loss of $126,000, or $0.00 per basic and fully diluted share,
for the second quarter of 2008. In addition to the decline in
operating earnings from continuing operations, the Company's loss
from continuing operations increased due to an increase in taxes,
offset by the realization of foreign exchange gains on the exchange
of foreign currency. During the third quarter of 2008, the Company
established a valuation allowance on its U.S. deferred taxes. The
tax effect on net operating income or losses incurred in the U.S.
will reduce or increase this valuation allowance. As a result,
during the second quarter of 2009, the Company did not recognize
tax benefits on operating losses incurred in the U.S. This
increased the Company's tax expense by $668,000 when comparing the
three months ended June 30, 2009 to the three months ended June 30,
2008. As of June 30, 2009, the Company has accumulated deferred tax
assets of $4.9 million which can be applied against the tax on
potential future U.S. income. Gains realized on the exchange of
foreign currency increased earnings by approximately $264,000,
primarily due to gains realized on loans that are no longer deemed
to be permanently invested. Six months ended June 30, 2009 For the
six months ended June 30, 2009, net operating revenue from
continuing operations was $23,883,000 and consolidated Adjusted
EBITDA* was $3,662,000. This represents a 13% decrease in net
operating revenue from continuing operations over the same six
months of last year ($27,403,000 for the six months ended June 30,
2008) and a 15% decrease in consolidated Adjusted EBITDA*
($4,284,000 for the six months ended June 30, 2008), due to
declines in net operating revenue at the Company's properties in
Colorado, primarily due to a decrease in its casino's (Womacks)
market share in Cripple Creek and a decline in the overall gaming
market in Central City. In addition, net operating revenue in
Edmonton, Canada, as reported in U.S. dollars, was 15% lower than
the same period in 2008, but increased by 2% in the local currency
(Canadian dollar). The reported results were negatively affected by
a 24% decrease in the average exchange rate between the U.S. dollar
and Canadian dollar for the six months ended June 30, 2009,
compared to the same period in 2008. Including discontinued
operations, the Company reported net earnings attributable to
Century Casinos, Inc. and subsidiaries of $19,248,000, or $0.82 per
basic share and fully diluted share, for the six months ended June
30, 2009. During the six months ended June 30, 2009, the Company
reported a gain of $19,848,000, or $0.84 per basic and fully
diluted share, on the disposition of CCA and a gain of $915,000, or
$0.04 per basic and fully diluted share, on the previously reported
disposition of the Century Casino Millennium. The Company reported
net earnings attributable to Century Casinos, Inc. and subsidiaries
of $1,376,000, or $0.06 per basic and fully diluted share, for the
first six months of 2008. Operating losses from continuing
operations were $131,000 for the six months ended June 30, 2009
compared to operating earnings of $223,000 for the six months ended
June 30, 2008, primarily due to a decrease in earnings of $305,000
from the Company's equity investment in Poland. The Company
reported a loss from continuing operations of $2,504,000, or a loss
of $0.10 per basic and fully diluted share for the six months ended
June 30, 2009 and a loss of $649,000, or a loss of $0.03 per basic
and fully diluted share, for the same period in 2008. In addition
to the decline in operating earnings from continuing operations,
the Company's loss from continuing operations increased due to an
increase in taxes and the realization of additional foreign
exchange losses on the exchange of foreign currency. During the
third quarter of 2008, the Company established a valuation
allowance on its U.S. deferred taxes. The tax effect on net
operating income or losses incurred in the U.S. will reduce or
increase this valuation allowance. As a result, for the six months
ended June 30, 2009, the Company did not recognize tax benefits on
operating losses incurred in the U.S. This increased our tax
expense by $1,532,000 when comparing the six months ended June 30,
2009 to the six months ended June 30, 2008. As of June 30, 2009,
the Company has accumulated deferred tax assets of $4.9 million
which can be applied against the tax on potential future U.S.
income. Finally, losses realized on the exchange of foreign
currency reduced earnings by approximately $380,000, primarily due
to the transfer of currency between Canada and the U.S. Update on
sale of CCA On December 19, 2008, the Company, through a
subsidiary, entered into an agreement to sell all of the
outstanding shares of CCA for a gross selling price of ZAR 460.0
million ($59.4 million) less the balance of third party South
African debt and other agreed to amounts. Net proceeds of ZAR 253.5
million ($32.8 million) were paid to the Company at closing on June
30, 2009. CCA owned the Caledon Hotel, Spa & Casino and 60% of
the Century Casino & Hotel in Newcastle, Africa. Transaction
approval by the KwaZulu-Natal Gambling Board is still pending. If
this approval is received, the Company will receive an additional
ZAR 98.8 million (approximately $12.8 million). An additional ZAR
17.3 million ($2.2 million) held in retention may be payable to the
Company within sixty days of closing if the net asset value ("NAV")
of CCA at June 30, 2009 is greater than the NAV at December 31,
2008. If the NAV at December 31, 2008 exceeds the NAV at June 30,
2009 by more than the $2.2 million held in retention, the Company
will reimburse the purchaser of CCA an amount equal to the excess.
At closing, the Company recognized a gain of ZAR 163.1 million
(approximately $19.8 million). An additional gain of ZAR 12.2
million (approximately $1.6 million) has been deferred until the
approval by the KwaZulu-Natal Gambling Board has been obtained. Net
operating revenue from discontinued operations was $5,873,000 and
$7,673,000 for the second quarter of 2009 and 2008, respectively.
Earnings from discontinued operations were $20,777,000 and
$1,030,000 for the second quarter of 2009 and 2008, respectively,
including a $19,848,000 gain on the sale of CCA. Net operating
revenue from discontinued operations was $11,203,000 for the six
months ended June 30, 2009 compared to $15,123,000 for the six
months ended June 30, 2008. Earnings from discontinued operations
were $22,679,000 and $2,205,000 for the six months ended June 30,
2009 and 2008, respectively. During the six months ended June 30,
2009, the Company recorded gains of $19,848,000 and $915,000 on the
sales of CCA and the Century Casino Millennium, respectively.
Property Results (Continuing Operations) Century Casino & Hotel
(Edmonton, Alberta, Canada) - Net operating revenue at the Century
Casino & Hotel in Edmonton decreased by 16% to $4,843,000 for
the second quarter of 2009 compared to $5,795,000 for the second
quarter of 2008, due to a decline in table game revenue and a
decline in the average exchange rate between the U.S. dollar and
the Canadian dollar. In Canadian dollars, net operating revenue
decreased by 3% to CAD 5,651,000 for the second quarter of 2009
compared to CAD 5,851,000 for the second quarter of 2008. This
decrease is the result of a decrease of 19% in table revenue,
offset by an increase in slot revenue of 3%. Adjusted EBITDA* was
$1,554,000 for the second quarter of 2009, a decrease of 31% from
$2,264,000 for the second quarter of 2008, which management
attributes to the same factors above. In Canadian dollars, Adjusted
EBITDA* decreased by 21%, from CAD 2,287,000 for the three months
ended June 30, 2008 to CAD 1,817,000 for the three months ended
June 30, 2009. Net operating revenue at the Century Casino &
Hotel in Edmonton decreased by 15% to $9,639,000 for the six months
ended June 30, 2009 compared to $11,352,000 for the six months
ended June 30, 2008, due to a decline in the average exchange rate
between the U.S. dollar and the Canadian dollar. In Canadian
dollars, net operating revenue increased by 2% to CAD 11,621,000
for the first six months 2009 compared to CAD 11,431,000 for the
first six months of 2008. Adjusted EBITDA* was $3,329,000 for the
first six months of 2009, a decrease of 20% from $4,176,000 for the
first six months of 2008, which management attributes to the
decline in the average exchange rate between the U.S. dollar and
the Canadian dollar. In Canadian dollars, Adjusted EBITDA*
decreased by 4%, from CAD 4,205,000 for the first six months of
2008 to CAD 4,026,000 for the six months ended June 30, 2009.
Womacks Casino (Cripple Creek, Colorado, USA) - Net operating
revenue at Womacks Casino in Cripple Creek, Colorado decreased 15%
to $2,441,000 for the second quarter of 2009 from $2,859,000 for
the second quarter of 2008. This is mostly attributable to a 10%
decrease in market share while the Company's share of the slot
machines in the Cripple Creek market declined by 12%. The Cripple
Creek gaming market as a whole declined 5%. Management believes
that the opening of a larger casino in Cripple Creek in May 2008
has impacted our revenue. The Company is reviewing strategies to
improve revenue at Womacks. Womacks' Adjusted EBITDA* for the
second quarter of 2009 was $351,000 compared to $434,000 in the
second quarter of 2008, a decrease of 19%. The decrease is
primarily due to the decline in revenue. Staffing levels decreased
overall when comparing period over period due to the Company's cost
cutting measures, but such cost reductions were partially negated
by the cost of new hires and various start up expenses associated
with the new games and extended hours that were introduced as of
July 2, 2009. Net operating revenue at Womacks decreased 13% to
$5,013,000 for the first six months of 2009 from $5,741,000 for the
first six months of 2008. This is mostly attributable to a 14%
decrease in market share while our share of the slot machines in
the Cripple Creek market declined by 16%. The Cripple Creek gaming
market as a whole declined 5%. The Company is reviewing strategies
to improve revenue at Womacks. Womacks' Adjusted EBITDA* for the
first six months of 2009 was $845,000 compared to $713,000 for the
first six months of 2008, an increase of 19%. The increase is
primarily due to cost cutting measures at the casino. Century
Casino and Hotel (Central City, Colorado, USA) - Net operating
revenue at the Century Casino and Hotel in Central City decreased
10% to $4,178,000 for the second quarter of 2009 compared to
$4,617,000 for the second quarter of 2008. The Central City gaming
market as a whole declined 10%. Adjusted EBITDA* for the Century
Casino & Hotel in Central City for the second quarter of 2009
decreased to $980,000 compared to $1,216,000 in the second quarter
of 2008, a 19% decrease. As with Womacks, the decrease is primarily
due to the decline in gaming revenue. Staffing levels decreased
overall when comparing period over period due to the Company's cost
cutting measures, but such cost reductions were partially negated
by the cost of new hires and various start up expenses associated
with the new games and extended hours that were introduced as of
July 2, 2009. Net operating revenue at the Century Casino and Hotel
in Central City decreased 8% to $8,341,000 for the first six months
of 2009 compared to $9,024,000 reported for the first six months of
2008. The Central City gaming market as a whole declined 10%.
Adjusted EBITDA* for the Century Casino & Hotel in Central City
decreased slightly to $2,043,000 for the first six months of 2009
compared to $2,051,000 for the first six months of 2008. Management
believes that cost cutting measures at the casino have offset the
decline in gaming revenue at the casino. Cruise Ships - The
Company's ship-based casinos contributed net operating revenue of
$422,000 and Adjusted EBITDA* of $52,000 for the second quarter of
2009 compared to net operating revenue of $600,000 and Adjusted
EBITDA* of $102,000 for the second quarter of 2008. The ship-based
casinos contributed net operating revenue of $890,000 and Adjusted
EBITDA* of $110,000 for the first six months of 2009 compared to
net operating revenue of $1,283,000 and Adjusted EBITDA* of
$252,000 during the first six months of 2008. Management believes
that the cruise ships have significantly reduced their ticket
prices in an effort to attract more passengers. Management believes
that this has resulted in consumers with less discretionary income
traveling on the ships, indirectly leading to less play at the
Company's casinos. Management also attributes these declines to one
of the cruise ships being in dry dock during the second quarter of
2009. Corporate - Corporate operations reported negative Adjusted
EBITDA* of $1,374,000 for the second quarter of 2009 compared to
negative Adjusted EBITDA* of $1,678,000 for the second quarter of
2008. The lower negative Adjusted EBITDA* is primarily due to a
decrease in general and administrative expenses of $228,000
resulting from a decrease in payroll expenses and travel expenses.
In addition, earnings recorded from our equity investment in
Casinos Poland have increased by $66,000. Our earnings from Casinos
Poland increased due to an increase in gaming revenue offset by a
decline in the average exchange rate between the U.S. dollar and
the Polish zloty of 49.5% for the three months ended June 30, 2009
compared to the three months ended June 30, 2008. Our earnings in
Casinos Poland increased by 167.1% from PLN 189,000 in the second
quarter of 2008 to PLN 506,000 in the second quarter of 2009.
Corporate operations reported negative Adjusted EBITDA* of
$2,665,000 for the first six months of 2009 compared to negative
Adjusted EBITDA* of $2,908,000 for the first six months of 2008.
The lower negative Adjusted EBITDA* is primarily due to a decrease
in general and administrative expenses of $541,000 resulting from a
decrease in payroll expenses, travel expenses and professional
fees. These decreases were offset by a decline in earnings recorded
from our equity investment in Casinos Poland of $305,000. Our
earnings from Casinos Poland decreased due to a lower hold
percentage on both slot and table games during the first quarter of
2009 and a decline in the average exchange rate between the U.S.
dollar and the Polish zloty of 47.1% for the six months ended June
30, 2009 compared to the six months ended June 30, 2008. Our
earnings in Casinos Poland decreased by 39.7% from PLN 1.3 million
for the first six months of 2008 to PLN 784,000 for the first six
months of 2009. The Company will post a copy of the Form 10-Q filed
with the SEC for the second quarter of 2009 on its web site at
http://www.cnty.com/corporate/investor/sec-filings/ on Monday,
August 10, 2009. On Monday, August 10, 2009, Century Casinos will
host its Q2 2009 Earnings Conference Call, at 10:30 am MDT; 6:30 pm
CEST, respectively. US domestic participants please dial
+1-800-894-5910; all other international participants please use
+1-785-424-1052 to dial in. Participants may also listen to the
call live or obtain a recording of the call on our website at
http://www.cnty.com/corporate/investor/financial-results/. 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 Six Months Ended June 30,
Ended June 30, 2009 2008 2009 2008 Operating revenue: Gaming
$11,138 $13,012 $22,610 $25,986 Hotel, food and beverage 2,037
2,114 3,936 4,198 Other 463 505 872 958 Gross revenue 13,638 15,631
27,418 31,142 Less promotional allowances 1,754 1,758 3,535 3,739
Net operating revenue 11,884 13,873 23,883 27,403 Operating costs
and expenses: Gaming 4,589 5,105 9,058 10,497 Hotel, food and
beverage 1,659 1,632 3,199 3,360 General and administrative 4,547
5,239 8,878 10,506 Depreciation 1,550 1,696 3,122 3,365 Total
operating costs and expenses 12,345 13,672 24,257 27,728 Earnings
from unconsolidated subsidiary 154 88 243 548 Operating (loss)
earnings from continuing operations (307) 289 (131) 223
Non-operating income (expense): Interest income 1 10 10 22 Interest
expense (915) (975) (1,815) (2,208) Gains (losses) on foreign
currency transactions and other 276 (18) (249) 101 Non-operating
(expense), net (638) (983) (2,054) (2,085) Loss from continuing
operations before income taxes (945) (694) (2,185) (1,862) Income
tax provision (benefit) 100 (568) 319 (1,213) Loss from continuing
operations (1,045) (126) (2,504) (649) Discontinued operations:
Earnings from discontinued operations 1,424 1,266 2,712 2,714 Gain
on disposition of Century Casino Millennium 38 - 915 - Gain on
disposition of Century Casinos Africa 19,848 - 19,848 - Provision
for income taxes 533 236 796 509 Earnings from discontinued
operations 20,777 1,030 22,679 2,205 Net earnings 19,732 904 20,175
1,556 Less: Net earnings attributable to the noncontrolling
interests (continuing operations) (19) 2 (37) 4 Less: Net earnings
attributable to the noncontrolling interests (discontinued
operations) 848 67 964 176 Net earnings attributable to Century
Casinos, Inc. and subsidiaries $18,903 $835 $19,248 $1,376 CENTURY
CASINOS, INC. AND SUBSIDIARIES FINANCIAL INFORMATION - US GAAP
BASIS Century Casinos, Inc. Earnings per Share For the Three Months
For the Six Months Ended June 30, Ended June 30, 2009 2008 2009
2008 Basic earnings per share: Loss from continuing operations
$(0.05) $- $(0.10) $(0.03) Earnings from discontinued operations
0.85 0.04 0.92 0.09 Net earnings $0.80 $0.04 $0.82 $0.06 Diluted
earnings per share: Loss from continuing operations $(0.05) $-
$(0.10) $(0.03) Earnings from discontinued operations 0.85 0.04
0.92 0.09 Net earnings $0.80 $0.04 $0.82 $0.06 Weighted Average
Shares Outstanding: Basic 23,524,067 23,468,243 23,524,067
23,386,540 Diluted 23,524,067 23,468,243 23,524,067 23,386,540
Amounts attributable to Century Casinos, Inc. and subsidiaries
common shareholders: Loss from continuing operations $(1,026)
$(128) $(2,467) $(653) Earnings from discontinued operations 19,929
963 21,715 2,029 Net earnings $18,903 $835 $19,248 $1,376 Century
Casinos, Inc. Condensed Consolidated Balance Sheets (Unaudited)
(Amounts in thousands) June 30, December 31, 2009 2008 Assets
Current Assets, excluding assets held for sale $56,170 $9,707
Assets held for sale (all current) - 35,983 Other Assets 103,244
104,316 Total Assets $159,414 $150,006 Liabilities and
Shareholders' Equity Current Liabilities, excluding liabilities
related to assets held for sale $22,006 $17,521 Liabilities related
to assets held for sale (all current) - 10,770 Non-Current
Liabilities 22,203 29,231 Shareholders' Equity 115,205 92,484 Total
Liabilities and Shareholders' Equity $159,414 $150,006 CENTURY
CASINOS, INC. AND SUBSIDIARIES SUPPLEMENTAL INFORMATION Century
Casinos, Inc. Net Operating Revenue by Property (Unaudited)
(Amounts in thousands) For the Three Months For the Six Months
Ended June 30, Ended June 30, 2009 2008 2009 2008 Century Casino
& Hotel, Edmonton $4,843 $5,795 $9,639 $11,352 Womacks Casino
& Hotel (Cripple Creek) 2,441 2,859 5,013 5,741 Century Casino
& Hotel, Central City 4,178 4,617 8,341 9,024 Cruise Ships 422
600 890 1,283 Corporate - 2 - 3 Consolidated net operating revenue
$11,884 $13,873 $23,883 $27,403 Century Casinos, Inc. Adjusted
EBITDA Margins** by Property (Unaudited) For the Three Months For
the Six Months Ended June 30, Ended June 30, 2009 2008 2009 2008
Century Casino & Hotel, Edmonton 32% 39% 34% 37% Womacks Casino
& Hotel (Cripple Creek) 14% 15% 17% 12% Century Casino &
Hotel, Central City 23% 26% 24% 23% Cruise Ships 12% 17% 12% 20%
Corporate - - - - Consolidated Adjusted EBITDA Margin** 13% 17% 15%
16% CENTURY CASINOS, INC. AND SUBSIDIARIES SUPPLEMENTAL INFORMATION
Century Casinos, Inc. Reconciliation of Adjusted EBITDA* to
Earnings from Continuing Operations by Property (Unaudited) For the
Three Months Ended June 30, 2009 (Amounts in thousands) Cripple
Central Cruise Edmonton Creek City Ships Corporate Total Earnings
from continuing operations $653 $(41) $(171) $(17) $(1,469)
$(1,045) Interest income - - - - (1) (1) Interest expense 281 74
515 - 45 915 Income taxes 253 (25) (117) (2) (9) 100 Depreciation
320 343 751 71 65 1,550 Stock compensation - - - - 275 275 Foreign
currency losses (gains) 47 - - - (293) (246) Impairments and other
write-offs - - - - - - Loss on disposition of fixed assets - - 2 -
13 15 Adjusted EBITDA* $1,554 $351 $980 $52 $(1,374) $1,563 Century
Casinos, Inc. Reconciliation of Adjusted EBITDA* to Earnings from
Continuing Operations by Property (Unaudited) For the Three Months
Ended June 30, 2008 (Amounts in thousands) Cripple Central Cruise
Edmonton Creek City Ships Corporate Total Earnings from continuing
operations $1,112 $8 $(13) $33 $(1,266) $(126) Interest income (5)
- - - (5) (10) Interest expense 351 (20) 492 - 152 975 Income taxes
442 7 (18) 5 (1,004) (568) Depreciation 362 438 755 62 79 1,696
Stock compensation - - - - 350 350 Foreign currency losses 2 1 - -
15 18 Impairments and other write-offs - - - - - - Loss on
disposition of fixed assets - - - 2 1 3 Adjusted EBITDA* $2,264
$434 $1,216 $102 $(1,678) $2,338 CENTURY CASINOS, INC. AND
SUBSIDIARIES SUPPLEMENTAL INFORMATION Century Casinos, Inc.
Reconciliation of Adjusted EBITDA* to Earnings from Continuing
Operations by Property (Unaudited) For the Six Months Ended June
30, 2009 (Amounts in thousands) Cripple Central Cruise Edmonton
Creek City Ships Corporate Total Earnings from continuing
operations $1,534 $(20) $(302) $(17) $(3,699) $(2,504) Interest
income (2) - (1) - (7) (10) Interest expense 530 138 1,052 - 95
1,815 Income taxes 602 (12) (210) (2) (59) 319 Depreciation 619 739
1,502 129 133 3,122 Stock compensation - - - - 624 624 Foreign
currency losses 46 - - - 233 279 Impairments and other write-offs -
- - - 2 2 Loss on disposition of fixed assets - - 2 - 13 15
Adjusted EBITDA* $3,329 $845 $2,043 $110 $(2,665) $3,662 Century
Casinos, Inc. Reconciliation of Adjusted EBITDA* to Earnings from
Continuing Operations by Property (Unaudited) For the Six Months
Ended June 30, 2008 (Amounts in thousands) Cripple Central Cruise
Edmonton Creek City Ships Corporate Total Earnings from continuing
operations $1,959 $(57) $(390) $119 $(2,280) $(649) Interest income
(15) - - - (7) (22) Interest expense 711 (48) 1,193 - 352 2,208
Income taxes 818 (34) (261) 3 (1,739) (1,213) Depreciation 717 861
1,509 126 152 3,365 Stock compensation - - - - 697 697 Foreign
currency (gains) losses (14) 1 - - (88) (101) Impairments and other
write-offs - - - - - - Loss on disposition of fixed assets - (10) -
4 5 (1) Adjusted EBITDA* $4,176 $713 $2,051 $252 $(2,908) $4,284
CENTURY CASINOS, INC. AND SUBSIDIARIES SUPPLEMENTAL INFORMATION
Century Resorts Alberta Reconciliation of Adjusted EBITDA* to Net
Earnings (Unaudited) in Canadian Dollars (Amounts in thousands) For
the three For the three For the six For the six months ended months
ended months ended months ended June 30, 2009 June 30, 2008 June
30, 2009 June 30, 2008 Net earnings CAD 823 CAD 1,114 CAD 1,920 CAD
1,937 Interest income (1) (5) (3) (15) Interest expense 327 355 637
716 Income taxes 296 460 728 850 Depreciation 373 365 745 722
Foreign currency (gains) (1) (2) (1) (5) Adjusted EBITDA* CAD 1,817
CAD 2,287 CAD 4,026 CAD 4,205 * The Company defines Adjusted EBITDA
as earnings from continuing operations before interest, income
taxes, depreciation, amortization, pre-opening expenses, non-cash
stock based compensation charges, asset impairment costs, gains
(losses) on disposition of fixed assets, discontinued operations,
realized foreign currency gains (losses) and certain other one-time
items. Intercompany 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. Please see the
reconciliation of Adjusted EBITDA to earnings from continuing
operations on the prior pages. Not all of the aforementioned
benefits and costs occur in each reporting period, but have been
included in the definition based on historic activity. ** The
Company defines Adjusted EBITDA margin as Adjusted EBITDA divided
by net operating revenue. Management uses this margin as one of
several measures to evaluate the efficiency of the Company's casino
operations. CENTURY CASINOS, INC. AND SUBSIDIARIES SUPPLEMENTAL
INFORMATION About Century Casinos, Inc.: Century Casinos, Inc. is
an international casino entertainment company that owns and
operates the Womacks Casino & Hotel in Cripple Creek, Colorado,
the Century Casino & Hotel in Central City, Colorado, and the
Century Casino & Hotel in Edmonton, Canada. The Company also
operates casinos aboard five luxury cruise vessels (Silver Cloud,
Regatta, Insignia, Nautica, Mein Schiff). Through its Austrian
subsidiary, Century Casinos Europe GmbH, the Company holds a 33.3%
ownership interest in Casinos Poland Ltd., the owner and operator
of seven full casinos and one slot casino in Poland. Century
Casinos, Inc. continues to pursue other international projects in
various stages of development. For more information about Century
Casinos, visit our website at http://www.centurycasinos.com/.
Century Casinos' common stock trades on The NASDAQ Capital Market
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 the proceeds from our sale of
Century Casinos Africa, progress at and plans for our casinos and
the impact of economic downturn. 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 sections entitled "Risk Factors" under Item 1A in
our Annual Report on Form 10-K filed on March 16, 2009. 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,
Web Site: http://www.centurycasinos.com/
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