COLORADO
SPRINGS, Colo., Aug. 5, 2022
/CNW/ -- Century Casinos, Inc. (Nasdaq Capital Market®: CNTY) today
announced its financial results for the three and six months ended
June 30, 2022.
Second Quarter 2022 Highlights*
- Net operating revenue was $111.1
million, an increase of 21% from the three months ended
June 30, 2021.
- Earnings from operations were $20.8
million, an increase of 15% from the three months ended
June 30, 2021.
- Net earnings attributable to Century Casinos, Inc. shareholders
were $8.9 million, an increase of 29%
from the three months ended June 30,
2021.
- Adjusted EBITDA** was $29.8
million, an increase of 18% from the three months ended
June 30, 2021.
- Basic earnings per share attributable to Century Casinos, Inc.
shareholders were $0.30.
- Diluted earnings per share attributable to Century Casinos,
Inc. shareholders were $0.28.
- Book value per share*** at June 30,
2022 was $5.00.
COVID-19 UPDATE
Since the inception of the COVID-19 pandemic in March 2020, the Company's casinos have varied
their operations based on the governmental health and safety
requirements in the jurisdictions in which they are located. The
COVID-19 pandemic impacted the Company's results of operations in
the first half of 2021 because of closures at the Company's
Canada and Poland properties during this period.
Currently the Company's operations have no health and safety
requirements for entry and few other COVID-19 related restrictions.
The duration and ultimate impact of the COVID-19 pandemic otherwise
remains uncertain.
NUGGET CASINO RESORT ACQUISITION AND FINANCING
On April 1, 2022, the Company
purchased 50% of the membership interest in Smooth Bourbon, LLC
("PropCo") for approximately $95.0
million (the "PropCo Acquisition"). Pursuant to a definitive
agreement and subject to approval from the Nevada Gaming
Commission, the Company will purchase 100% of the membership
interests in Nugget Sparks, LLC ("OpCo") for $100.0 million (subject to certain adjustments)
(the "OpCo Acquisition" and together with the PropCo Acquisition,
the "Acquisition"). The OpCo Acquisition is expected to occur
within one year of the PropCo Acquisition. OpCo owns and operates
the Nugget Casino Resort in Sparks,
Nevada, and PropCo owns the real property on which the
casino is located and leases the real property to OpCo for an
annual rent of $15.0 million.
On April 1, 2022, the Company also
entered into a Credit Agreement with Goldman Sachs Bank
USA (the "Goldman Credit
Agreement"). The Goldman Credit Agreement provides for a
$350.0 million term loan (the "Term
Loan") and a $30.0 million revolving
credit facility (the "Revolving Facility"). The Company drew
$350.0 million under the Term Loan
and used the proceeds as well as $29.3
million of cash on hand to fund the PropCo Acquisition, to
repay approximately $166.2 million
outstanding under the Company's credit agreement with Macquarie
("Macquarie Credit Agreement"), to fund a $100.0 million escrow fund that will be used to
purchase OpCo, and for related fees and expenses. The Goldman
Credit Agreement replaces the Macquarie Credit Agreement. The
Company did not draw on the Revolving Facility on the closing date
of the PropCo acquisition.
RESULTS
The consolidated results for the three and six months ended
June 30, 2022 and 2021 are as
follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three
months
|
|
|
For the six
months
|
|
|
Amounts in
thousands, except per share data
|
ended June
30,
|
|
|
ended June
30,
|
|
|
Consolidated
Results:
|
|
|
2022
|
|
|
2021
|
|
%
Change
|
|
|
2022
|
|
|
2021
|
|
%
Change
|
Net Operating
Revenue
|
|
$
|
111,122
|
|
$
|
92,185
|
|
21 %
|
|
$
|
214,224
|
|
$
|
164,599
|
|
30 %
|
Earnings from
Operations
|
|
|
20,802
|
|
|
18,112
|
|
15 %
|
|
|
33,846
|
|
|
26,361
|
|
28 %
|
Net Earnings
Attributable to Century Casinos, Inc. Shareholders
|
|
$
|
8,856
|
|
$
|
6,855
|
|
29 %
|
|
$
|
9,074
|
|
$
|
5,436
|
|
67 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA**
|
|
$
|
29,778
|
|
$
|
25,238
|
|
18 %
|
|
$
|
53,601
|
|
$
|
39,983
|
|
34 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings Per Share
Attributable to Century Casinos, Inc. Shareholders:
|
Basic
|
|
$
|
0.30
|
|
$
|
0.23
|
|
30 %
|
|
$
|
0.30
|
|
$
|
0.18
|
|
67 %
|
Diluted
|
|
$
|
0.28
|
|
$
|
0.22
|
|
27 %
|
|
$
|
0.29
|
|
$
|
0.18
|
|
61 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
"We achieved the highest net operating revenue and Adjusted
EBITDA during a second quarter in the history of the Company. We
are pleased with the strong contribution from our operations in
Canada which have continued to
improve after Alberta removed
COVID-19 restrictions," Erwin Haitzmann and Peter Hoetzinger,
Co-Chief Executive Officers of Century Casinos remarked. "As we
announced in April, we have completed the first portion of our
acquisition of the Nugget Casino Resort. We are excited to enter
the growing Reno/Sparks Nevada market with this transaction,"
Messrs. 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 June 30,
2022:
|
|
|
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 Downs Racetrack
and Casino
|
|
|
Century Sports
(1)
|
|
|
Century Bets! Inc.
(1)
|
Poland
|
Poland
|
Casinos
Poland
|
Corporate and
Other
|
Corporate and
Other
|
Cruise Ships &
Other
|
|
|
Corporate Other
(2)
|
|
|
(1)
|
The Company operated
Century Sports through February 10, 2022. The Company operated
Century Bets! Inc. through August 2021 when operations were
transferred to Century Mile Racetrack and Casino.
|
(2)
|
The Company's equity
interest in Smooth Bourbon is included in the Corporate Other
reporting unit.
|
The Company's net operating revenue increased by $18.9 million, or 21%, and by $49.6 million, or 30%, for the three and six
months ended June 30, 2022, compared
to the three and six months ended June 30,
2021. Following is a summary of the changes in net operating
revenue by reportable segment for the three and six months ended
June 30, 2022, compared to the three
and six months ended June 30,
2021:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Operating
Revenue
|
|
|
For the three
months
|
|
|
|
|
|
|
For the six
months
|
|
|
|
|
|
Amounts
in
|
|
ended June
30,
|
|
|
$
|
|
%
|
|
ended June
30,
|
|
|
$
|
|
%
|
thousands
|
|
2022
|
|
2021
|
|
|
Change
|
|
Change
|
|
2022
|
|
2021
|
|
|
Change
|
|
Change
|
United
States
|
|
$
|
70,313
|
|
$
|
76,700
|
|
$
|
(6,387)
|
|
(8 %)
|
|
$
|
135,556
|
|
$
|
141,072
|
|
$
|
(5,516)
|
|
(4 %)
|
Canada
|
|
|
19,037
|
|
|
6,658
|
|
|
12,379
|
|
186 %
|
|
|
35,039
|
|
|
8,666
|
|
|
26,373
|
|
304 %
|
Poland
|
|
|
21,707
|
|
|
8,689
|
|
|
13,018
|
|
150 %
|
|
|
43,531
|
|
|
14,599
|
|
|
28,932
|
|
198 %
|
Corporate and
Other
|
|
|
65
|
|
|
138
|
|
|
(73)
|
|
(53 %)
|
|
|
98
|
|
|
262
|
|
|
(164)
|
|
(63 %)
|
Consolidated
|
|
$
|
111,122
|
|
$
|
92,185
|
|
$
|
18,937
|
|
21 %
|
|
$
|
214,224
|
|
$
|
164,599
|
|
$
|
49,625
|
|
30 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Company's earnings from operations increased by $2.7 million, or 15%, and by $7.5 million, or 28%, for the three and six
months ended June 30, 2022, compared
to the three and six months ended June 30,
2021. Following is a summary of the changes in earnings
(loss) from operations by reportable segment for the three and six
months ended June 30, 2022, compared
to the three and six months ended June 30,
2021:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (Loss) from
Operations
|
|
|
For the three
months
|
|
|
|
|
|
|
For the six
months
|
|
|
|
|
|
Amounts
in
|
|
ended June
30,
|
|
|
$
|
|
%
|
|
ended June
30,
|
|
|
$
|
|
%
|
thousands
|
|
2022
|
|
2021
|
|
|
Change
|
|
Change
|
|
2022
|
|
2021
|
|
|
Change
|
|
Change
|
United
States
|
|
$
|
17,624
|
|
$
|
23,529
|
|
$
|
(5,905)
|
|
(25 %)
|
|
$
|
33,147
|
|
$
|
41,058
|
|
$
|
(7,911)
|
|
(19 %)
|
Canada
|
|
|
4,334
|
|
|
(612)
|
|
|
4,946
|
|
808 %
|
|
|
4,933
|
|
|
(4,436)
|
|
|
9,369
|
|
211 %
|
Poland
|
|
|
2,047
|
|
|
(1,810)
|
|
|
3,857
|
|
213 %
|
|
|
4,008
|
|
|
(5,170)
|
|
|
9,178
|
|
178 %
|
Corporate and
Other
|
|
|
(3,203)
|
|
|
(2,995)
|
|
|
(208)
|
|
(7 %)
|
|
|
(8,242)
|
|
|
(5,091)
|
|
|
(3,151)
|
|
(62 %)
|
Consolidated
|
|
$
|
20,802
|
|
$
|
18,112
|
|
$
|
2,690
|
|
15 %
|
|
$
|
33,846
|
|
$
|
26,361
|
|
$
|
7,485
|
|
28 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings attributable to Century Casinos, Inc. shareholders
increased by $2.0 million, or 29%,
and by $3.6 million, or 67%, for the
three and six months ended June 30,
2022, compared to the three and six months ended
June 30, 2021. Following is a summary
of the changes in net earnings (loss) attributable to Century
Casinos, Inc. shareholders by reportable segment for the three and
six months ended June 30, 2022,
compared to the three and six months ended June 30, 2021:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Earnings (Loss)
Attributable to Century Casinos, Inc. Shareholders
|
|
|
For the three
months
|
|
|
|
|
|
|
For the six
months
|
|
|
|
|
|
Amounts
in
|
|
ended June
30,
|
|
|
$
|
|
%
|
|
ended June
30,
|
|
|
$
|
|
%
|
thousands
|
|
2022
|
|
2021
|
|
|
Change
|
|
Change
|
|
2022
|
|
2021
|
|
|
Change
|
|
Change
|
United
States
|
|
$
|
10,521
|
|
$
|
16,502
|
|
$
|
(5,981)
|
|
(36 %)
|
|
$
|
19,038
|
|
$
|
27,096
|
|
$
|
(8,058)
|
|
(30 %)
|
Canada
|
|
|
2,875
|
|
|
(1,525)
|
|
|
4,400
|
|
289 %
|
|
|
2,170
|
|
|
(5,040)
|
|
|
7,210
|
|
143 %
|
Poland
|
|
|
1,322
|
|
|
(1,038)
|
|
|
2,360
|
|
227 %
|
|
|
2,255
|
|
|
(2,873)
|
|
|
5,128
|
|
179 %
|
Corporate and
Other
|
|
|
(5,862)
|
|
|
(7,084)
|
|
|
1,222
|
|
17 %
|
|
|
(14,389)
|
|
|
(13,747)
|
|
|
(642)
|
|
(5 %)
|
Consolidated
|
|
$
|
8,856
|
|
$
|
6,855
|
|
$
|
2,001
|
|
29 %
|
|
$
|
9,074
|
|
$
|
5,436
|
|
$
|
3,638
|
|
67 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Items deducted from or added to earnings from operations to
arrive at net earnings attributable to Century Casinos, Inc.
shareholders include interest income, interest expense, gains
(losses) on foreign currency transactions and other, income tax
(benefit) expense and non-controlling interests. Items that
impacted net earnings attributable to Century Casinos, Inc.
shareholders for the three and six months ended June 30, 2022 included a write-off of
$7.3 million in deferred financing
costs to interest expense related to the prepayment of the
Macquarie Credit Agreement and the release of a $10.2 million US valuation allowance,
resulting in an income tax benefit.
Adjusted EBITDA** increased by $4.5
million, or 18%, and by $13.6
million, or 34%, for the three and six months ended
June 30, 2022 compared to the three
and six months ended June 30, 2021.
Following is a summary of the changes in Adjusted EBITDA** by
reportable segment for the three and six months ended June 30, 2022 compared to the three and six
months ended June 30, 2021:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA**
|
|
|
For the three
months
|
|
|
|
|
|
|
For the six
months
|
|
|
|
|
|
Amounts
in
|
|
ended June
30,
|
|
|
$
|
|
%
|
|
ended June
30,
|
|
|
$
|
|
%
|
thousands
|
|
2022
|
|
2021
|
|
|
Change
|
|
Change
|
|
2022
|
|
2021
|
|
|
Change
|
|
Change
|
United
States
|
|
$
|
22,382
|
|
$
|
28,247
|
|
$
|
(5,865)
|
|
(21 %)
|
|
$
|
42,692
|
|
$
|
50,376
|
|
$
|
(7,684)
|
|
(15 %)
|
Canada
|
|
|
5,568
|
|
|
639
|
|
|
4,929
|
|
771 %
|
|
|
9,562
|
|
|
(1,850)
|
|
|
11,412
|
|
617 %
|
Poland
|
|
|
2,724
|
|
|
(1,042)
|
|
|
3,766
|
|
361 %
|
|
|
5,368
|
|
|
(3,608)
|
|
|
8,976
|
|
249 %
|
Corporate and
Other
|
|
|
(896)
|
|
|
(2,606)
|
|
|
1,710
|
|
66 %
|
|
|
(4,021)
|
|
|
(4,935)
|
|
|
914
|
|
19 %
|
Consolidated
|
|
$
|
29,778
|
|
$
|
25,238
|
|
$
|
4,540
|
|
18 %
|
|
$
|
53,601
|
|
$
|
39,983
|
|
$
|
13,618
|
|
34 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BALANCE SHEET AND LIQUIDITY
As of June 30, 2022, the Company
had $96.2 million in cash and
cash equivalents compared to $107.8
million in cash and cash equivalents at December 31, 2021. Cash and cash equivalents as
of June 30, 2022 do not include
restricted cash, which includes $100.0
million in escrow to fund the OpCo Acquisition. As of
June 30, 2022, the Company had
$369.9 million in outstanding debt
compared to $189.2 million in
outstanding debt at December 31,
2021. The outstanding debt as of June
30, 2022 included $349.1
million related to the Term Loan under the Goldman Credit
Agreement (including $100.0 million
borrowed and in escrow to fund the OpCo Acquisition), $0.1 million of bank debt related to Casinos
Poland, $5.5 million of bank debt
related to Century Resorts Management GmbH ("CRM"), and
$15.1 million related to a long-term
land lease for Century Downs Racetrack and Casino ("CDR"). The
Company also has a $283.0 million
long-term financing obligation under its triple net master lease
("Master Lease") of its West
Virginia and Missouri
properties.
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 June 30, 2022 on its website at
www.cnty.com/investor/financials/sec-filings/. The Company will
also post a presentation of the second quarter results on its
website at www.cnty.com/investor/presentations/.
The Company will host its second quarter 2022 earnings
conference call today, Friday, August
5, at 10:00 am EDT /
8:00 am MDT. U.S. domestic
participants should dial 800-920-5564. For all international
participants, please use 415-226-5355 to dial-in. Participants may
listen to the call live at
cc.callinfo.com/r/1ocsahbwizouj&eom or obtain a recording
of the call on the Company's website until August 31, 2022 at
www.cnty.com/investor/financials/sec-filings/.
* 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.
CENTURY CASINOS,
INC. AND SUBSIDIARIES –
|
UNAUDITED FINANCIAL
INFORMATION – US GAAP BASIS
|
Condensed Consolidated
Statements of Earnings
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three
months
|
For the six
months
|
|
ended June
30,
|
ended June
30,
|
Amounts in
thousands, except for per share information
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Operating
revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
Net operating
revenue
|
|
$
|
111,122
|
|
$
|
92,185
|
|
$
|
214,224
|
|
$
|
164,599
|
Operating costs and
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating costs
and expenses
|
|
|
91,383
|
|
|
74,073
|
|
|
181,441
|
|
|
138,238
|
Earnings from equity
investment
|
|
|
1,063
|
|
|
—
|
|
|
1,063
|
|
|
—
|
Earnings from
operations
|
|
|
20,802
|
|
|
18,112
|
|
|
33,846
|
|
|
26,361
|
Non-operating (expense)
income, net
|
|
|
(21,372)
|
|
|
(10,720)
|
|
|
(30,272)
|
|
|
(20,773)
|
(Loss) earnings
before income taxes
|
|
|
(570)
|
|
|
7,392
|
|
|
3,574
|
|
|
5,588
|
Income tax
provision
|
|
|
10,421
|
|
|
(1,120)
|
|
|
8,986
|
|
|
(1,219)
|
Net
earnings
|
|
|
9,851
|
|
|
6,272
|
|
|
12,560
|
|
|
4,369
|
Net (earnings) loss
attributable to non-controlling interests
|
|
|
(995)
|
|
|
583
|
|
|
(3,486)
|
|
|
1,067
|
Net earnings
attributable to Century Casinos, Inc. shareholders
|
|
$
|
8,856
|
|
$
|
6,855
|
|
$
|
9,074
|
|
$
|
5,436
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share
attributable to Century Casinos, Inc. shareholders:
|
Basic
|
|
$
|
0.30
|
|
$
|
0.23
|
|
$
|
0.30
|
|
$
|
0.18
|
Diluted
|
|
$
|
0.28
|
|
$
|
0.22
|
|
$
|
0.29
|
|
$
|
0.18
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
29,843
|
|
|
29,579
|
|
|
29,752
|
|
|
29,578
|
Diluted
|
|
|
31,506
|
|
|
30,935
|
|
|
31,489
|
|
|
30,708
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Condensed Consolidated
Balance Sheets
|
|
|
|
|
|
|
|
|
June
30,
|
|
December
31,
|
Amounts in
thousands
|
|
2022
|
|
2021
|
Assets
|
|
|
|
|
|
|
Current
assets
|
|
$
|
216,582
|
|
$
|
140,680
|
Property and equipment,
net
|
|
|
467,185
|
|
|
472,302
|
Other assets
|
|
|
192,055
|
|
|
90,376
|
Total assets
|
|
$
|
875,822
|
|
$
|
703,358
|
|
|
|
|
|
|
|
Liabilities and
Equity
|
|
|
|
|
|
|
Current
liabilities
|
|
$
|
56,023
|
|
$
|
60,433
|
Non-current
liabilities
|
|
|
661,068
|
|
|
492,568
|
Century Casinos, Inc.
shareholders' equity
|
|
|
149,201
|
|
|
141,624
|
Non-controlling
interests
|
|
|
9,530
|
|
|
8,733
|
Total liabilities and
equity
|
|
$
|
875,822
|
|
$
|
703,358
|
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 June 30, 2022
|
Amounts in
thousands
|
|
|
United
States
|
|
|
Canada
|
|
|
Poland
|
|
|
Corporate
and Other
|
|
|
Total
|
Net earnings (loss)
attributable to Century Casinos, Inc. shareholders
|
|
$
|
10,521
|
|
$
|
2,875
|
|
$
|
1,322
|
|
$
|
(5,862)
|
|
$
|
8,856
|
Interest expense
(income), net (1)
|
|
|
7,103
|
|
|
585
|
|
|
(54)
|
|
|
14,162
|
|
|
21,796
|
Income taxes
(benefit)
|
|
|
—
|
|
|
574
|
|
|
515
|
|
|
(11,510)
|
|
|
(10,421)
|
Depreciation and
amortization
|
|
|
4,758
|
|
|
1,226
|
|
|
676
|
|
|
119
|
|
|
6,779
|
Net earnings
attributable to non-controlling interests
|
|
|
—
|
|
|
334
|
|
|
661
|
|
|
—
|
|
|
995
|
Non-cash stock-based
compensation
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,012
|
|
|
1,012
|
(Gain) loss on foreign
currency transactions, cost recovery income and other
|
|
|
—
|
|
|
(34)
|
|
|
(397)
|
|
|
7
|
|
|
(424)
|
Loss (gain) on
disposition of fixed assets
|
|
|
—
|
|
|
8
|
|
|
1
|
|
|
(121)
|
|
|
(112)
|
Acquisition
costs
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,297
|
|
|
1,297
|
Adjusted
EBITDA
|
|
$
|
22,382
|
|
$
|
5,568
|
|
$
|
2,724
|
|
$
|
(896)
|
|
$
|
29,778
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 $0.6 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 $6.4 million and $0.7 million,
respectively, for the period presented. Expense of $7.3 million
related to the write-off of deferred financing costs in connection
with the prepayment of the Macquarie Term Loan is included in
interest expense (income), net in the Corporate and Other
segment.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months
ended June 30, 2021
|
Amounts in
thousands
|
|
|
United
States
|
|
|
Canada
|
|
|
Poland
|
|
|
Corporate
and Other
|
|
|
Total
|
Net earnings (loss)
attributable to Century Casinos, Inc. shareholders
|
|
$
|
16,502
|
|
$
|
(1,525)
|
|
$
|
(1,038)
|
|
$
|
(7,084)
|
|
$
|
6,855
|
Interest expense
(income), net (1)
|
|
|
7,027
|
|
|
396
|
|
|
11
|
|
|
3,253
|
|
|
10,687
|
Income taxes
(benefit)
|
|
|
—
|
|
|
572
|
|
|
(283)
|
|
|
831
|
|
|
1,120
|
Depreciation and
amortization
|
|
|
4,509
|
|
|
1,251
|
|
|
768
|
|
|
105
|
|
|
6,633
|
Net loss attributable
to non-controlling interests
|
|
|
—
|
|
|
(65)
|
|
|
(518)
|
|
|
—
|
|
|
(583)
|
Non-cash stock-based
compensation
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
323
|
|
|
323
|
Loss on foreign
currency transactions and cost recovery income
|
|
|
—
|
|
|
10
|
|
|
18
|
|
|
5
|
|
|
33
|
Loss (gain) on
disposition of fixed assets
|
|
|
209
|
|
|
—
|
|
|
—
|
|
|
(39)
|
|
|
170
|
Adjusted
EBITDA
|
|
$
|
28,247
|
|
$
|
639
|
|
$
|
(1,042)
|
|
$
|
(2,606)
|
|
$
|
25,238
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Expense of $7.0 million
related to the Master Lease is included in interest expense
(income), net in the United States segment. Expense of $0.4 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 $6.3 million and $0.6 million,
respectively, for the period presented.
|
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 six months
ended June 30, 2022
|
Amounts in
thousands
|
|
|
United
States
|
|
|
Canada
|
|
|
Poland
|
|
|
Corporate
and Other
|
|
|
Total
|
Net earnings (loss)
attributable to Century Casinos, Inc. shareholders
|
|
$
|
19,038
|
|
$
|
2,170
|
|
$
|
2,255
|
|
$
|
(14,389)
|
|
$
|
9,074
|
Interest expense
(income), net (1)
|
|
|
14,109
|
|
|
1,152
|
|
|
(67)
|
|
|
17,395
|
|
|
32,589
|
Income taxes
(benefit)
|
|
|
—
|
|
|
1,197
|
|
|
1,072
|
|
|
(11,255)
|
|
|
(8,986)
|
Depreciation and
amortization
|
|
|
9,526
|
|
|
2,452
|
|
|
1,356
|
|
|
240
|
|
|
13,574
|
Net earnings
attributable to non-controlling interests
|
|
|
—
|
|
|
2,359
|
|
|
1,127
|
|
|
—
|
|
|
3,486
|
Non-cash stock-based
compensation
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,685
|
|
|
1,685
|
Loss (gain) on foreign
currency transactions, cost recovery income and other
(2)
|
|
|
—
|
|
|
209
|
|
|
(379)
|
|
|
(5)
|
|
|
(175)
|
Loss (gain) on
disposition of fixed assets
|
|
|
19
|
|
|
23
|
|
|
4
|
|
|
(121)
|
|
|
(75)
|
Acquisition
costs
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,429
|
|
|
2,429
|
Adjusted
EBITDA
|
|
$
|
42,692
|
|
$
|
9,562
|
|
$
|
5,368
|
|
$
|
(4,021)
|
|
$
|
53,601
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Expense of $14.1
million related to the Master Lease is included in interest expense
(income), net in the United States segment. Expense of $1.1 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 $10.6 million and $1.0
million, respectively, for the period presented. Expense of $7.3
million related to the write-off of deferred financing costs in
connection with the prepayment of the Macquarie Term Loan is
included in interest expense (income), net in the Corporate and
Other segment.
|
(2)
|
Loss of $2.2 million
related to the sale of land and building in Calgary is included in
the Canada segment.
|
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 six months
ended June 30, 2021
|
Amounts in
thousands
|
|
|
United
States
|
|
|
Canada
|
|
|
Poland
|
|
|
Corporate
and Other
|
|
|
Total
|
Net earnings (loss)
attributable to Century Casinos, Inc. shareholders
|
|
$
|
27,096
|
|
$
|
(5,040)
|
|
$
|
(2,873)
|
|
$
|
(13,747)
|
|
$
|
5,436
|
Interest expense
(income), net (1)
|
|
|
13,962
|
|
|
703
|
|
|
15
|
|
|
6,530
|
|
|
21,210
|
Income taxes
(benefit)
|
|
|
—
|
|
|
163
|
|
|
(889)
|
|
|
1,945
|
|
|
1,219
|
Depreciation and
amortization
|
|
|
9,036
|
|
|
2,473
|
|
|
1,562
|
|
|
205
|
|
|
13,276
|
Net earnings (loss)
attributable to non-controlling interests
|
|
|
—
|
|
|
367
|
|
|
(1,434)
|
|
|
—
|
|
|
(1,067)
|
Non-cash stock-based
compensation
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
582
|
|
|
582
|
(Gain) loss on foreign
currency transactions, cost recovery income and other
|
|
|
—
|
|
|
(548)
|
|
|
11
|
|
|
(411)
|
|
|
(948)
|
Loss (gain) on
disposition of fixed assets
|
|
|
282
|
|
|
32
|
|
|
—
|
|
|
(39)
|
|
|
275
|
Adjusted
EBITDA
|
|
$
|
50,376
|
|
$
|
(1,850)
|
|
$
|
(3,608)
|
|
$
|
(4,935)
|
|
$
|
39,983
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Expense of $14.0
million related to the Master Lease is included in interest expense
(income), net in the United States segment. Expense of $0.7 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 $10.5 million and $0.9
million, respectively, for the period presented.
|
Adjusted EBITDA
Margins**
|
|
|
|
|
|
|
For the three
months
|
For the six
months
|
|
ended June
30,
|
ended June
30,
|
|
2022
|
2021
|
2022
|
2021
|
United
States
|
32 %
|
37 %
|
32 %
|
36 %
|
Canada
|
29 %
|
10 %
|
27 %
|
(21 %)
|
Poland
|
13 %
|
(12 %)
|
12 %
|
(25 %)
|
Corporate and
Other
|
(1378 %)
|
(1888 %)
|
(4103 %)
|
(1884 %)
|
Consolidated
|
27 %
|
27 %
|
25 %
|
24 %
|
|
|
|
|
|
|
CENTURY CASINOS,
INC. AND SUBSIDIARIES UNAUDITED SUPPLEMENTAL
INFORMATION
|
* 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, loss (gain) 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. Non-cash stock-based
compensation expense is presented under Corporate and Other as the
expense is not allocated to reportable segments when reviewed by
the Company's chief operating decision makers. 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.
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, and in St. Albert, Alberta, Canada; Mountaineer
Casino, Racetrack & Resort in New
Cumberland, West Virginia; and the Century Mile Racetrack
and Casino in Edmonton, Alberta,
Canada. 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. Through its
United States subsidiary, Century
Nevada Acquisition, Inc., the Company owns a 50% membership
interest in PropCo, which owns the land and building of OpCo in
Sparks, Nevada. The Company has an
agreement to purchase 100% of the membership interests in OpCo. The
Company also has an agreement to operate one ship-based casino. 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.
CENTURY CASINOS,
INC. AND SUBSIDIARIES UNAUDITED SUPPLEMENTAL
INFORMATION
|
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 statements about operating margins and
Adjusted EBITDA, the impact of the coronavirus (COVID-19) pandemic,
estimates of the financial impact of COVID-19, 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 prospects
for and timing and costs of new projects, projects in development
and other opportunities, our Goldman Credit Agreement 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, certain plans, expectations,
goals, projections, and statements about the benefits of the
Acquisition, as well as our plans, objectives, expectations,
intentions, and other statements relating to cash flow, operating
results and debt repayment; the possibility that the OpCo
Acquisition does not close when expected or at all because
regulatory or other conditions to closing are not satisfied on a
timely basis or at all; potential adverse reactions or changes to
business or employee relationships, including those resulting from
the completion of the Acquisition; the possibility that the
anticipated benefits of the Acquisition are not realized when
expected or at all 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, 2021, 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.