COLORADO SPRINGS, Colo.,
Nov. 6, 2020 /PRNewswire/ -- Century
Casinos, Inc. (Nasdaq Capital Market®: CNTY) today announced its
financial results for the three and nine months ended September 30, 2020.
Third Quarter 2020 Highlights*
- Net operating revenue was $95.7
million, compared to $52.9
million for the three months ended September 30, 2019, an increase of 81%.
- Earnings from operations were $15.0
million, compared to $3.5
million for the three months ended September 30, 2019, an increase of 331%.
- Net earnings attributable to Century Casinos, Inc. shareholders
were $3.7 million, compared to
$0.5 million for the three months
ended September 30, 2019, an increase
of 678%.
- Adjusted EBITDA** was $22.2
million, compared to $7.1
million for the three months ended September 30, 2019, an increase of 213%.
- Earnings per share were $0.13.
- Book value per share*** at September 30,
2020 was $3.55.
The Company's third quarter 2020 results were significantly
impacted by the acquisition of Mountaineer Casino, Racetrack &
Resort, Century Casino Cape Girardeau and Century Casino
Caruthersville (the "Acquired Casinos") in December 2019.
COVID-19 Update
In late 2019, an outbreak of COVID-19 was identified in
China and has since spread
throughout much of the world. Between March
13, 2020 and March 17, 2020,
the Company closed all of its casinos, hotels and other facilities
to comply with quarantines issued by governments to contain the
spread of COVID-19. The Company's Polish locations reopened on
May 18, 2020 and its North American
operations reopened between June 1,
2020 and June 17, 2020.
Although the Company's results of operations and cash flow
improved significantly in the third quarter of 2020, the COVID-19
pandemic has had an adverse effect on the Company's results of
operations and financial condition for the nine months ended
September 30, 2020, and the Company
expects this situation will continue to have an adverse impact on
its results for the remainder of 2020 and perhaps into 2021. The
duration and ultimate impact of the COVID-19 pandemic otherwise
remains uncertain.
The Company's casinos have varied their operations based on the
governmental health and safety requirements in the jurisdictions in
which they are located. In Colorado, each city has different gaming floor
restrictions. In Cripple Creek,
the full slot floor is open but table games are expected to remain
closed through 2020. In Central
City, the casino is currently operating approximately 65% of
the slot machines and table games are reopened, with the exception
of craps and roulette which closed in October 2020. For both Colorado cities there are capacity
restrictions within the casinos and alcohol sales must stop at
midnight but the casinos are able to operate 24/7. In Missouri, the full gaming floor is open, hours
of operation are reduced, and food outlets that have reopened have
limited operating hours. In West
Virginia, the majority of the gaming floor has reopened, the
gaming floor is limited to machines that are six feet apart or with
barriers, food and beverage outlets have reopened with limited
hours of operation, the convention space remains closed and is
anticipated to remain closed through 2020, hours of operation are
limited to 10:00 a.m. to 2:00 a.m.,
there are capacity restrictions within the casino, and the hotel is
operating with limited rooms available. In Canada, the gaming floors are currently
operating approximately 60% of the total gaming machines, hours of
operation are limited to 9:30 a.m. to 3:00
a.m., there are restrictions on spectators at the
racetracks, and the hotel and showroom in Edmonton remain closed. In Poland, the gaming floors are fully reopened,
alcohol sales are currently suspended and there are capacity
restrictions within the casinos.
Third Quarter 2020 Results
The consolidated results for the three and nine months ended
September 30, 2020 and 2019 are as
follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three
months
|
|
|
For the nine
months
|
Amounts in
thousands, except per share data
|
ended September
30,
|
|
|
ended September
30,
|
Consolidated
Results:
|
|
|
2020
|
|
|
2019
|
|
%
Change
|
|
|
2020
|
|
|
2019
|
|
%
Change
|
Net Operating
Revenue
|
|
$
|
95,706
|
|
$
|
52,935
|
|
81%
|
|
$
|
219,466
|
|
$
|
150,990
|
|
45%
|
Earnings (Loss) from
Operations
|
|
|
15,014
|
|
|
3,480
|
|
331%
|
|
|
(18,872)
|
|
|
9,524
|
|
(298%)
|
Net Earnings (Loss)
Attributable to Century Casinos, Inc. Shareholders
|
|
$
|
3,748
|
|
$
|
482
|
|
678%
|
|
$
|
(54,715)
|
|
$
|
985
|
|
(5655%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA**
|
|
$
|
22,214
|
|
$
|
7,093
|
|
213%
|
|
$
|
30,036
|
|
$
|
20,506
|
|
47%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (Loss)
Per Share Attributable to Century Casinos, Inc.
Shareholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and
Diluted
|
|
$
|
0.13
|
|
$
|
0.02
|
|
550%
|
|
$
|
(1.85)
|
|
$
|
0.03
|
|
(6267%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
"Following the reopening of our casinos in June 2020, our results of operations and cash
flow improved significantly in the third quarter of 2020. We are
very pleased to report all-time records in quarterly net operating
revenue and Adjusted EBITDA driven by our recent acquisition of the
Eldorado properties. The record
results confirm the transformational nature the acquisition has had
on the Company, with 79% of our Adjusted EBITDA coming from
operations in the United States,"
Erwin Haitzmann and Peter Hoetzinger, Co-Chief Executive Officers
of Century Casinos remarked. "In the third quarter, we also
continued to focus on streamlining our cost structure and were able
to achieve additional operational efficiencies, resulting in
significant operating margin expansion," Haitzmann and
Hoetzinger concluded.
Reportable Segment Results*
The table below shows the Company's reporting units and
operating segments that are included in each of the Company's
reportable segments as of September 30,
2020:
|
|
|
Reportable
Segment
|
Operating
Segment
|
Reporting
Unit
|
United
States
|
Colorado
|
Century Casino &
Hotel - Central City
|
|
|
Century Casino &
Hotel - Cripple Creek
|
|
West
Virginia
|
Mountaineer Casino,
Racetrack & Resort
|
|
Missouri
|
Century Casino Cape
Girardeau
|
|
|
Century Casino
Caruthersville
|
Canada
|
Edmonton
|
Century Casino &
Hotel - Edmonton
|
|
|
Century Casino St.
Albert
|
|
|
Century Mile
Racetrack and Casino
|
|
Calgary
|
Century Casino
Calgary
|
|
|
Century Downs
Racetrack and Casino
|
|
|
Century Bets!
Inc.
|
Poland
|
Poland
|
Casinos
Poland
|
Corporate and
Other
|
Corporate and
Other
|
Cruise Ships &
Other
|
|
|
Corporate
Other
|
The Company's net operating revenue increased by $42.8 million, or 81%, and by $68.5 million, or 45%, for the three and nine
months ended September 30, 2020,
compared to the three and nine months ended September 30, 2019. Following is a summary of the
changes in net operating revenue by reportable segment for the
three and nine months ended September 30,
2020, compared to the three and nine months ended
September 30, 2019:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Operating
Revenue
|
|
For the three
months
|
|
|
|
|
|
|
For the nine
months
|
|
|
|
|
|
|
ended September
30,
|
|
|
|
|
|
|
ended September
30,
|
|
|
|
|
|
Amounts in
thousands
|
2020
|
|
2019
|
|
$
Change
|
|
%
Change
|
|
2020
|
|
2019
|
|
$
Change
|
|
%
Change
|
United
States
|
$
|
62,647
|
|
$
|
9,199
|
|
$
|
53,448
|
|
581%
|
|
$
|
139,908
|
|
$
|
26,073
|
|
$
|
113,835
|
|
437%
|
Canada
|
|
16,577
|
|
|
22,063
|
|
|
(5,486)
|
|
(25%)
|
|
|
37,479
|
|
|
60,353
|
|
|
(22,874)
|
|
(38%)
|
Poland
|
|
16,339
|
|
|
20,360
|
|
|
(4,021)
|
|
(20%)
|
|
|
40,793
|
|
|
60,221
|
|
|
(19,428)
|
|
(32%)
|
Corporate and
Other
|
|
143
|
|
|
1,313
|
|
|
(1,170)
|
|
(89%)
|
|
|
1,286
|
|
|
4,343
|
|
|
(3,057)
|
|
(70%)
|
Consolidated
|
$
|
95,706
|
|
$
|
52,935
|
|
$
|
42,771
|
|
81%
|
|
$
|
219,466
|
|
$
|
150,990
|
|
$
|
68,476
|
|
45%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Company's earnings from operations increased by $11.5 million, or 331%, and decreased by
($28.4) million, or (298%), for the
three and nine months ended September 30,
2020, compared to the three and nine months ended
September 30, 2019. Following
is a summary of the changes in earnings (loss) from operations by
reportable segment for the three and nine months ended September 30, 2020, compared to the three and
nine months ended September 30,
2019:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (Loss)
from Operations
|
|
For the three
months
|
|
|
|
|
|
|
For the nine
months
|
|
|
|
|
|
|
ended September
30,
|
|
|
|
|
|
|
ended September
30,
|
|
|
|
|
|
Amounts in
thousands
|
2020
|
|
2019
|
|
$
Change
|
|
%
Change
|
|
2020
|
|
2019
|
|
$
Change
|
|
%
Change
|
United
States
|
$
|
14,707
|
|
$
|
1,813
|
|
$
|
12,894
|
|
711%
|
|
$
|
(13,690)
|
|
$
|
4,793
|
|
$
|
(18,483)
|
|
(386%)
|
Canada
|
|
3,069
|
|
|
3,527
|
|
|
(458)
|
|
(13%)
|
|
|
153
|
|
|
12,107
|
|
|
(11,954)
|
|
(99%)
|
Poland
|
|
202
|
|
|
1,591
|
|
|
(1,389)
|
|
(87%)
|
|
|
(1,708)
|
|
|
4,289
|
|
|
(5,997)
|
|
(140%)
|
Corporate and
Other
|
|
(2,964)
|
|
|
(3,451)
|
|
|
487
|
|
14%
|
|
|
(3,627)
|
|
|
(11,665)
|
|
|
8,038
|
|
69%
|
Consolidated
|
$
|
15,014
|
|
$
|
3,480
|
|
$
|
11,534
|
|
331%
|
|
$
|
(18,872)
|
|
$
|
9,524
|
|
$
|
(28,396)
|
|
(298%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings (loss) attributable to Century Casinos, Inc.
shareholders increased by $3.3
million, or 678%, and decreased by ($55.7) million, or (5655%), for the three and
nine months ended September 30, 2020,
compared to the three and nine months ended September 30, 2019. Following is a summary of the
changes in net earnings (loss) attributable to Century Casinos,
Inc. shareholders by reportable segment for the three and nine
months ended September 30, 2020,
compared to the three and nine months ended September 30, 2019:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Earnings
(Loss) Attributable to Century Casinos, Inc.
Shareholders
|
|
|
For the three
months
|
|
|
|
|
|
|
For the nine
months
|
|
|
|
|
|
|
|
ended September
30,
|
|
|
|
|
|
|
ended September
30,
|
|
|
|
|
|
Amounts in
thousands
|
|
2020
|
|
2019
|
|
$
Change
|
|
%
Change
|
|
2020
|
|
2019
|
|
$
Change
|
|
%
Change
|
United
States
|
|
$
|
7,656
|
|
$
|
1,348
|
|
$
|
6,308
|
|
468%
|
|
$
|
(35,999)
|
|
$
|
3,564
|
|
$
|
(39,563)
|
|
(1110%)
|
Canada
|
|
|
1,880
|
|
|
1,623
|
|
|
257
|
|
16%
|
|
|
(4,102)
|
|
|
5,704
|
|
|
(9,806)
|
|
(172%)
|
Poland
|
|
|
86
|
|
|
775
|
|
|
(689)
|
|
(89%)
|
|
|
(1,134)
|
|
|
2,115
|
|
|
(3,249)
|
|
(154%)
|
Corporate and
Other
|
|
|
(5,874)
|
|
|
(3,264)
|
|
|
(2,610)
|
|
(80%)
|
|
|
(13,480)
|
|
|
(10,398)
|
|
|
(3,082)
|
|
(30%)
|
Consolidated
|
|
$
|
3,748
|
|
$
|
482
|
|
$
|
3,266
|
|
678%
|
|
$
|
(54,715)
|
|
$
|
985
|
|
$
|
(55,700)
|
|
(5655%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Items deducted from or added to earnings from operations to
arrive at net earnings (loss) attributable to Century Casinos, Inc.
shareholders include interest income, interest expense, gains
(losses) on foreign currency transactions and other, income tax
expense and non-controlling interests.
Adjusted EBITDA** increased by $15.1
million, or 213%, and by $9.5
million, or 47%, for the three and nine months ended
September 30, 2020 compared to the
three and nine months ended September 30,
2019. Following is a summary of the changes in Adjusted
EBITDA** by reportable segment for the three and nine months ended
September 30, 2020 compared to the
three and nine months ended September 30,
2019:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA**
|
|
|
For the three
months
|
|
|
|
|
|
|
For the nine
months
|
|
|
|
|
|
|
|
ended September
30,
|
|
|
|
|
|
|
ended September
30,
|
|
|
|
|
|
Amounts in
thousands
|
|
2020
|
|
2019
|
|
$
Change
|
|
%
Change
|
|
2020
|
|
2019
|
|
$
Change
|
|
%
Change
|
United
States
|
|
$
|
19,222
|
|
$
|
2,301
|
|
$
|
16,921
|
|
735%
|
|
$
|
30,073
|
|
$
|
6,383
|
|
$
|
23,690
|
|
371%
|
Canada
|
|
|
4,425
|
|
|
4,854
|
|
|
(429)
|
|
(9%)
|
|
|
7,451
|
|
|
15,828
|
|
|
(8,377)
|
|
(53%)
|
Poland
|
|
|
981
|
|
|
2,473
|
|
|
(1,492)
|
|
(60%)
|
|
|
575
|
|
|
6,911
|
|
|
(6,336)
|
|
(92%)
|
Corporate and
Other
|
|
|
(2,414)
|
|
|
(2,535)
|
|
|
121
|
|
5%
|
|
|
(8,063)
|
|
|
(8,616)
|
|
|
553
|
|
6%
|
Consolidated
|
|
$
|
22,214
|
|
$
|
7,093
|
|
$
|
15,121
|
|
213%
|
|
$
|
30,036
|
|
$
|
20,506
|
|
$
|
9,530
|
|
47%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance Sheet and Liquidity
As of September 30, 2020, the
Company had $62.1 million in
cash and cash equivalents and $184.1
million in outstanding debt on its balance sheet compared to
$54.8 million in cash and cash
equivalents and $179.0 million in
outstanding debt at December 31,
2019. The outstanding debt as of September 30, 2020 included $168.7 million related to the Company's credit
agreement with Macquarie Capital ("Macquarie"), $1.5 million of bank debt related to Casinos
Poland, $8.9 million of bank debt
related to Century Resorts Management GmbH ("CRM"), and
$14.6 million related to a long-term
land lease for Century Downs Racetrack and Casino ("CDR"), net of
$9.7 million in deferred financing
costs. The Company also has a $277.9
million long-term financing obligation under its triple net
master lease for the three Acquired Casino properties ("Master
Lease"), which has an initial annual rent of approximately
$25.0 million.
* Amounts presented are rounded. As such, rounding differences
could occur in period over period changes and percentages
reported.
** Adjusted EBITDA and Adjusted EBITDA margin are Non-US GAAP
financial measures. See discussion and reconciliation of Non-US
GAAP financial measures in Supplemental Information below.
*** The Company defines book value per share as total Century
Casinos, Inc. shareholders' equity divided by outstanding common
shares.
Conference Call Information
Today the Company will post a copy of its quarterly report on
Form 10-Q filed with the SEC for the quarter ended September 30, 2020 on its website at
www.cnty.com/investor/financials/sec-filings/. The Company will
also post a presentation of the third quarter results on its
website at www.cnty.com/investor/presentations/.
The Company will host its third quarter 2020 earnings conference
call today, Friday, November 6, at
8:00 am MST. U.S. domestic
participants should dial 1-844-244-9160. For all international
participants, please use 330-931-4670 to dial-in. Participants
may listen to the call live at
centurycasinos.adobeconnect.com/earningsrelease or obtain a
recording of the call on the Company's website until November 30, 2020 at
www.cnty.com/investor/financials/sec-filings/.
|
|
(continued)
|
CENTURY CASINOS,
INC. AND SUBSIDIARIES
|
UNAUDITED
FINANCIAL INFORMATION – US GAAP BASIS
|
Condensed
Consolidated Statements of Earnings (Loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three
months
|
For the nine
months
|
|
ended September
30,
|
ended September
30,
|
Amounts in
thousands, except for per share information
|
2020
|
|
2019
|
2020
|
|
2019
|
Operating
revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
Net operating
revenue
|
|
$
|
95,706
|
|
$
|
52,935
|
|
$
|
219,466
|
|
$
|
150,990
|
Operating costs
and expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating costs
and expenses
|
|
|
80,692
|
|
|
49,455
|
|
|
238,338
|
|
|
141,465
|
Loss from equity
investment
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1)
|
Earnings (loss)
from operations
|
|
|
15,014
|
|
|
3,480
|
|
|
(18,872)
|
|
|
9,524
|
Non-operating income
(expense), net
|
|
|
(10,630)
|
|
|
(1,300)
|
|
|
(32,496)
|
|
|
(3,177)
|
Earnings (loss)
before income taxes
|
|
|
4,384
|
|
|
2,180
|
|
|
(51,368)
|
|
|
6,347
|
Income tax
provision
|
|
|
(428)
|
|
|
(1,133)
|
|
|
(3,535)
|
|
|
(3,219)
|
Net earnings
(loss)
|
|
|
3,956
|
|
|
1,047
|
|
|
(54,903)
|
|
|
3,128
|
Net (earnings) loss
attributable to non-controlling interests
|
|
|
(208)
|
|
|
(565)
|
|
|
188
|
|
|
(2,143)
|
Net earnings
(loss) attributable to Century Casinos, Inc.
shareholders
|
|
$
|
3,748
|
|
$
|
482
|
|
$
|
(54,715)
|
|
$
|
985
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss)
per share attributable to Century Casinos, Inc.
shareholders:
|
Basic
|
|
$
|
0.13
|
|
$
|
0.02
|
|
$
|
(1.85)
|
|
$
|
0.03
|
Diluted
|
|
$
|
0.13
|
|
$
|
0.02
|
|
$
|
(1.85)
|
|
$
|
0.03
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
29,576
|
|
|
29,453
|
|
|
29,553
|
|
|
29,444
|
Diluted
|
|
|
29,709
|
|
|
30,179
|
|
|
29,553
|
|
|
30,134
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Condensed
Consolidated Balance Sheets
|
|
|
|
|
|
|
September
30,
|
|
December
31,
|
Amounts in
thousands
|
2020
|
|
2019
|
Assets
|
|
|
|
|
|
Current
assets
|
$
|
81,045
|
|
$
|
79,366
|
Property and
equipment, net
|
|
490,178
|
|
|
503,933
|
Other
assets
|
|
100,567
|
|
|
143,601
|
Total
assets
|
$
|
671,790
|
|
$
|
726,900
|
|
|
|
|
|
|
Liabilities and
Equity
|
|
|
|
|
|
Current
liabilities
|
$
|
68,900
|
|
$
|
56,570
|
Non-current
liabilities
|
|
489,633
|
|
|
498,255
|
Century Casinos, Inc.
shareholders' equity
|
|
105,096
|
|
|
163,306
|
Non-controlling
interests
|
|
8,161
|
|
|
8,769
|
Total liabilities and
equity
|
$
|
671,790
|
|
$
|
726,900
|
|
|
|
CENTURY CASINOS,
INC. AND SUBSIDIARIES
|
UNAUDITED
SUPPLEMENTAL INFORMATION
|
Constant Currency*
Results
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three
months
|
|
|
|
For the nine
months
|
|
|
|
ended September
30,
|
|
|
|
ended September
30,
|
|
|
Amounts in
thousands
|
|
2020
|
|
|
2019
|
|
%
Change
|
|
|
2020
|
|
|
2019
|
|
%
Change
|
Net operating revenue
as reported (US GAAP)
|
$
|
95,706
|
|
$
|
52,935
|
|
81%
|
|
$
|
219,466
|
|
$
|
150,990
|
|
45%
|
Foreign currency
impact vs. 2019
|
|
(208)
|
|
|
|
|
|
|
|
782
|
|
|
|
|
|
Net operating revenue
constant currency (non-US GAAP)*
|
$
|
95,498
|
|
$
|
52,935
|
|
80%
|
|
$
|
220,248
|
|
$
|
150,990
|
|
46%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) from
operations (US GAAP)
|
$
|
15,014
|
|
$
|
3,480
|
|
331%
|
|
$
|
(18,872)
|
|
$
|
9,524
|
|
(298%)
|
Foreign currency
impact vs. 2019
|
|
38
|
|
|
|
|
|
|
|
85
|
|
|
|
|
|
Earnings (loss) from
operations constant currency (non-US GAAP)*
|
$
|
15,052
|
|
$
|
3,480
|
|
333%
|
|
$
|
(18,787)
|
|
$
|
9,524
|
|
(297%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings (loss)
attributable to Century Casinos, Inc. shareholders as reported (US
GAAP)
|
$
|
3,748
|
|
$
|
482
|
|
678%
|
|
$
|
(54,715)
|
|
$
|
985
|
|
(5655%)
|
Foreign currency
impact vs. 2019
|
|
24
|
|
|
|
|
|
|
|
(27)
|
|
|
|
|
|
Net earnings (loss)
attributable to Century Casinos, Inc. shareholders constant
currency (non-US GAAP)*
|
$
|
3,772
|
|
$
|
482
|
|
683%
|
|
$
|
(54,742)
|
|
$
|
985
|
|
(5658%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gains and losses on foreign currency transactions are added back
to net earnings in the Company's Adjusted EBITDA** calculations. As
such, there is no foreign currency impact to Adjusted EBITDA** when
calculating Constant Currency* results.
Adjusted EBITDA Margins ***
|
|
|
|
|
|
For the three
months
|
For the nine
months
|
|
ended September
30,
|
ended September
30,
|
|
2020
|
2019
|
2020
|
2019
|
United
States
|
31%
|
25%
|
22%
|
25%
|
Canada
|
27%
|
22%
|
20%
|
26%
|
Poland
|
6%
|
12%
|
1%
|
12%
|
Corporate and
Other
|
(1688%)
|
(193%)
|
(627%)
|
(198%)
|
Consolidated Adjusted
EBITDA Margin
|
23%
|
13%
|
14%
|
14%
|
|
|
|
|
|
|
|
CENTURY CASINOS,
INC. AND SUBSIDIARIES
|
UNAUDITED
SUPPLEMENTAL INFORMATION
|
Reconciliation of
Adjusted EBITDA** to Net Earnings (Loss) Attributable to Century
Casinos, Inc. Shareholders by Reportable Segment.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three
months ended September 30, 2020
|
Amounts in
thousands
|
|
|
United
States
|
|
|
Canada
|
|
|
Poland
|
|
|
Corporate
and Other
|
|
|
Total
|
Net earnings (loss)
attributable to Century Casinos, Inc. shareholders
|
|
$
|
7,656
|
|
$
|
1,880
|
|
$
|
86
|
|
$
|
(5,874)
|
|
$
|
3,748
|
Interest expense
(income), net (1)
|
|
|
7,051
|
|
|
525
|
|
|
6
|
|
|
3,005
|
|
|
10,587
|
Income taxes
(benefit)
|
|
|
—
|
|
|
469
|
|
|
123
|
|
|
(164)
|
|
|
428
|
Depreciation and
amortization
|
|
|
4,506
|
|
|
1,345
|
|
|
777
|
|
|
196
|
|
|
6,824
|
Net earnings
attributable to non-controlling interests
|
|
|
—
|
|
|
165
|
|
|
43
|
|
|
—
|
|
|
208
|
Non-cash stock-based
compensation
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
354
|
|
|
354
|
Loss (gain) on
foreign currency transactions, cost recovery income and
other
|
|
|
—
|
|
|
30
|
|
|
(56)
|
|
|
69
|
|
|
43
|
Loss on disposition
of fixed assets
|
|
|
9
|
|
|
11
|
|
|
2
|
|
|
—
|
|
|
22
|
Adjusted
EBITDA
|
|
$
|
19,222
|
|
$
|
4,425
|
|
$
|
981
|
|
$
|
(2,414)
|
|
$
|
22,214
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Expense of $7.1
million related to the Master Lease is included in interest expense
(income), net in the United States segment. Expense of $0.5 million
related to the CDR land lease is included in interest expense
(income), net in the Canada segment. Cash payments related to the
Master Lease and CDR land lease were $6.2 million and $0.4 million,
respectively, for the period presented.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three
months ended September 30, 2019
|
Amounts in
thousands
|
|
|
United
States
|
|
|
Canada
|
|
|
Poland
|
|
|
Corporate
and Other
|
|
|
Total
|
Net earnings (loss)
attributable to Century Casinos, Inc. shareholders
|
|
$
|
1,348
|
|
$
|
1,623
|
|
$
|
775
|
|
$
|
(3,264)
|
|
$
|
482
|
Interest expense
(income), net (1)
|
|
|
—
|
|
|
1,346
|
|
|
51
|
|
|
19
|
|
|
1,416
|
Income taxes
(benefit)
|
|
|
465
|
|
|
367
|
|
|
518
|
|
|
(217)
|
|
|
1,133
|
Depreciation and
amortization
|
|
|
488
|
|
|
1,327
|
|
|
797
|
|
|
217
|
|
|
2,829
|
Net earnings
attributable to non-controlling interests
|
|
|
—
|
|
|
179
|
|
|
386
|
|
|
—
|
|
|
565
|
Non-cash stock-based
compensation
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
358
|
|
|
358
|
Loss (gain) on
foreign currency transactions and cost recovery income
|
|
|
—
|
|
|
12
|
|
|
(139)
|
|
|
11
|
|
|
(116)
|
Loss on disposition
of fixed assets
|
|
|
—
|
|
|
—
|
|
|
85
|
|
|
44
|
|
|
129
|
Acquisition
costs
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
297
|
|
|
297
|
Adjusted
EBITDA
|
|
$
|
2,301
|
|
$
|
4,854
|
|
$
|
2,473
|
|
$
|
(2,535)
|
|
$
|
7,093
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Expense of $0.5
million related to the CDR land lease is included in interest
expense (income), net in the Canada segment. Cash payments related
to the CDR land lease were $0.5 million for the period
presented.
|
|
|
|
CENTURY CASINOS,
INC. AND SUBSIDIARIES
|
UNAUDITED
SUPPLEMENTAL INFORMATION
|
Reconciliation of
Adjusted EBITDA** to Net (Loss) Attributable to Century Casinos,
Inc. Shareholders by Reportable Segment.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the nine
months ended September 30, 2020
|
Amounts in
thousands
|
|
|
United
States
|
|
|
Canada
|
|
|
Poland
|
|
|
Corporate
and Other
|
|
|
Total
|
Net loss attributable
to Century Casinos, Inc. shareholders
|
|
$
|
(35,999)
|
|
$
|
(4,102)
|
|
$
|
(1,134)
|
|
$
|
(13,480)
|
|
$
|
(54,715)
|
Interest expense
(income), net (1)
|
|
|
21,286
|
|
|
1,504
|
|
|
23
|
|
|
9,719
|
|
|
32,532
|
Income taxes
(benefit)
|
|
|
1,023
|
|
|
2,281
|
|
|
(123)
|
|
|
354
|
|
|
3,535
|
Depreciation and
amortization
|
|
|
13,008
|
|
|
3,973
|
|
|
2,279
|
|
|
463
|
|
|
19,723
|
Net earnings (loss)
attributable to non-controlling interests
|
|
|
—
|
|
|
377
|
|
|
(565)
|
|
|
—
|
|
|
(188)
|
Non-cash stock-based
compensation
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
589
|
|
|
589
|
Loss (gain) on
foreign currency transactions, cost recovery income and other
(2)
|
|
|
30,746
|
|
|
3,476
|
|
|
91
|
|
|
(5,976)
|
|
|
28,337
|
Loss (gain) on
disposition of fixed assets
|
|
|
9
|
|
|
(58)
|
|
|
4
|
|
|
2
|
|
|
(43)
|
Acquisition
costs
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
266
|
|
|
266
|
Adjusted
EBITDA
|
|
$
|
30,073
|
|
$
|
7,451
|
|
$
|
575
|
|
$
|
(8,063)
|
|
$
|
30,036
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Expense of $21.3
million related to the Master Lease is included in interest expense
(income), net in the United States segment. Expense of $1.5 million
related to the CDR land lease is included in interest expense
(income), net in the Canada segment. Cash payments related to the
Master Lease and CDR land lease were $16.7 million and $1.3
million, respectively, for the period presented.
|
(2)
|
Expense of $30.7
million and $3.4 million is included in the United States and
Canada segments, respectively, related to the impairment of
goodwill and intangible assets due to quantitative and qualitative
impairment analysis performed related to the triggering events
caused by COVID-19. Expense of $1.0 million is included in the
Corporate and Other segment related to the impairment of the
Company's investment in an Argentina company due to assessments
made related to the impact of COVID-19.
|
|
|
|
CENTURY CASINOS,
INC. AND SUBSIDIARIES
|
UNAUDITED
SUPPLEMENTAL INFORMATION
|
Reconciliation of
Adjusted EBITDA** to Net Earnings (Loss) Attributable to Century
Casinos, Inc. Shareholders by Reportable Segment.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the nine
months ended September 30, 2019
|
Amounts in
thousands
|
|
|
United
States
|
|
|
Canada
|
|
|
Poland
|
|
|
Corporate
and Other
|
|
|
Total
|
Net earnings (loss)
attributable to Century Casinos, Inc. shareholders
|
|
$
|
3,564
|
|
$
|
5,704
|
|
$
|
2,115
|
|
$
|
(10,398)
|
|
$
|
985
|
Interest expense
(income), net (1)
|
|
|
—
|
|
|
3,856
|
|
|
142
|
|
|
65
|
|
|
4,063
|
Income taxes
(benefit)
|
|
|
1,229
|
|
|
1,913
|
|
|
1,395
|
|
|
(1,318)
|
|
|
3,219
|
Depreciation and
amortization
|
|
|
1,573
|
|
|
3,184
|
|
|
2,284
|
|
|
657
|
|
|
7,698
|
Net earnings (loss)
attributable to non-controlling interests
|
|
|
—
|
|
|
1,099
|
|
|
1,056
|
|
|
(12)
|
|
|
2,143
|
Non-cash stock-based
compensation
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
979
|
|
|
979
|
(Gain) loss on
foreign currency transactions and cost recovery income
|
|
|
—
|
|
|
(465)
|
|
|
(419)
|
|
|
5
|
|
|
(879)
|
Loss (gain) on
disposition of fixed assets
|
|
|
17
|
|
|
(1)
|
|
|
338
|
|
|
342
|
|
|
696
|
Acquisition
costs
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,064
|
|
|
1,064
|
Pre-opening
expenses
|
|
|
—
|
|
|
538
|
|
|
—
|
|
|
—
|
|
|
538
|
Adjusted
EBITDA
|
|
$
|
6,383
|
|
$
|
15,828
|
|
$
|
6,911
|
|
$
|
(8,616)
|
|
$
|
20,506
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Expense of $1.7
million related to the CDR land lease is included in interest
expense (income), net in the Canada segment. Cash payments related
to the CDR land lease were $1.5 million for the period
presented.
|
CENTURY CASINOS, INC. AND SUBSIDIARIES
UNAUDITED
SUPPLEMENTAL INFORMATION
* The impact of foreign exchange rates is highly variable
and difficult to predict. The Company uses a Constant
Currency basis to show the impact from foreign exchange rates
on current period revenue compared to prior period revenue using
the prior period's foreign exchange rates. In order to properly
understand the underlying business trends and performance of the
Company's ongoing operations, management believes that investors
may find it useful to consider the impact of excluding changes in
foreign exchange rates from the Company's net operating revenue,
earnings (loss) from operations and net earnings (loss)
attributable to Century Casinos, Inc. shareholders. Constant
currency results are calculated by dividing the current quarter or
year to date local currency segment results, excluding the local
currency impact of foreign currency gains and losses, by the prior
year's average exchange rate for the quarter or year to date and
comparing them to actual U.S. dollar results for the prior quarter
or year to date. The average exchange rates for the current quarter
and the prior year third quarter are reported in Item 1 of the
Company's Quarterly Report on Form 10-Q for the quarter ended
September 30, 2020. Constant currency
information is not a measure of financial performance under
generally accepted accounting principles in the United States of America (US GAAP) and
should not be considered a substitute for net operating revenue,
earnings from operations or net earnings (loss) attributable to
Century Casinos, Inc. shareholders as determined in accordance with
US GAAP.
** The Company defines Adjusted EBITDA as net
earnings (loss) attributable to Century Casinos, Inc. shareholders
before interest expense (income), net, income taxes (benefit),
depreciation and amortization, non-controlling interests net
earnings (loss) and transactions, pre-opening expenses, acquisition
costs, non-cash stock-based compensation charges, asset impairment
costs, (gain) loss on disposition of fixed assets, discontinued
operations, (gain) loss on foreign currency transactions, cost
recovery income and other, gain on business combination and certain
other one-time transactions. Expense related to the Master Lease
and CDR land lease is included in the interest expense (income),
net line item. Intercompany transactions consisting primarily of
management and royalty fees and interest, along with their related
tax effects, are excluded from the presentation of net earnings
(loss) attributable to Century Casinos, Inc. shareholders and
Adjusted EBITDA reported for each segment. Not all of the
aforementioned items occur in each reporting period, but have been
included in the definition based on historical activity. These
adjustments have no effect on the consolidated results as reported
under US GAAP. Adjusted EBITDA is not considered a measure of
performance recognized under US GAAP. Management believes that
Adjusted EBITDA is a valuable measure of the relative performance
of the Company and its properties. 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. Adjusted EBITDA is used by the Company's lending
institution 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
within the gaming industry. Please see the reconciliation of
Adjusted EBITDA to net earnings (loss) attributable to Century
Casinos, Inc. shareholders above.
*** The Company defines Adjusted EBITDA margin as
Adjusted EBITDA divided by net operating revenue. Adjusted EBITDA
margin is a non-US GAAP measure. Management uses this margin as one
of several measures to evaluate the efficiency of the Company's
casino operations.
CENTURY CASINOS, INC. AND SUBSIDIARIES
UNAUDITED
SUPPLEMENTAL INFORMATION
About Century Casinos,
Inc.:
Century Casinos, Inc. is a casino entertainment company. The
Company owns and operates Century Casino & Hotels in
Cripple Creek and Central City, Colorado, and in Edmonton, Alberta, Canada; the Century Casino
in Cape Girardeau and Caruthersville, Missouri, in Calgary and St.
Albert, Alberta, Canada; Mountaineer Casino, Racetrack &
Resort in New Cumberland, West
Virginia; the Century Mile Racetrack and Casino ("CMR") in
Edmonton, Alberta, Canada; and
Century Bets! Inc. ("CBS"). CBS and CMR operate the pari-mutuel
off-track horse betting networks in southern and northern
Alberta, respectively. Through its
Austrian subsidiary, CRM, the Company holds a 66.6% ownership
interest in Casinos Poland Ltd., the owner and operator of eight
casinos throughout Poland; and a
75% ownership interest in Century Downs Racetrack and Casino in
Calgary, Alberta, Canada. The
Company operates four ship-based casinos. The Company, through CRM,
also owns a 7.5% interest in, and provides consulting services to,
Mendoza Central Entretenimientos S.A., a company that provides
gaming-related services to Casino de Mendoza in Mendoza,
Argentina. The Company continues
to pursue other projects in various stages of development.
Century Casinos' common stock trades on The Nasdaq Capital
Market® under the symbol CNTY.
For more information about Century Casinos, visit our website at
www.cnty.com.
This release may contain "forward-looking statements" within
the meaning of Section 27A of the Securities Act of 1933, as
amended, Section 21E of the Securities Exchange Act of 1934, as
amended, and 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 future results of
operations, including the impact of the acquisition of the Acquired
Casinos on the Company's results, the impact of the current
coronavirus (COVID-19) pandemic, the adequacy of cash flows from
operations and available cash to meet our future liquidity needs,
particularly if we cannot operate our casinos due to COVID-19 or
their operations are restricted, operating efficiencies, synergies
and operational performance, the integration of the Acquired
Casinos into our business, the prospects for and timing and costs
of new projects, projects in development and other opportunities,
our credit agreement with Macquarie and obligations under our
Master Lease and our ability to repay our debt and other
obligations, investments in joint ventures, outcomes of legal
proceedings, changes in our tax provisions or exposure to
additional income tax liabilities, and plans for our casinos and
our Company. 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 for the year ended December 31,
2019, in Item 8.01 of our Form 8-K filed with the SEC on
May 8, 2020, in our Quarterly Report
on Form 10-Q for the quarter ended June 30,
2020 and in subsequent periodic and current SEC filings we
may make. 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.
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SOURCE Century Casinos, Inc.