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Segment Information
 6 Months Ended
Jun. 30, 2015
Segment Information [Abstract]  
Segment Information

 

12.SEGMENT INFORMATION

 

The Company reports its financial performance in three reportable segments based on the geographical locations in which its casinos operate: the United States, Canada and Poland. Operating segments are aggregated within reportable segments based on their similar characteristics, types of customers, types of services and products provided, the regulatory environments in which they operate, and their management and reporting structure. The Company’s casino properties provide gaming, hotel accommodations, dining facilities and other amenities to the Company’s customers. The Company’s operations related to concession, management and consulting fee revenues and certain other corporate and management operations have not been identified as separate reportable segments; therefore, these operations are included in Corporate and Other in the following segment disclosures to reconcile to consolidated results. All intercompany transactions are eliminated in consolidation.

 

The table below provides information about the aggregation of the Company’s operating segments into reportable segments:

 

 

 

Reportable Segment

Operating Segment

Canada

Century Casino & Hotel - Edmonton

Canada

Century Casino Calgary

Canada

Century Downs Racetrack and Casino

Canada

Century Bets!

United States

Century Casino & Hotel – Central City

United States

Century Casino & Hotel – Cripple Creek

Poland

Casinos Poland

Corporate and Other

Cruise Ships & Other

Corporate and Other

Corporate Other

 

The Company’s chief operating decision maker is a management function comprised of two individuals.  These two individuals are our Co Chief Executive Officers. The Company’s chief operating decision makers and management utilize Adjusted EBITDA as a primary profit measure for its reportable segments. Adjusted EBITDA is a non-GAAP measure defined as net earnings (loss) before interest expense (income), net, income taxes (benefit), depreciation, amortization, non-controlling interest (earnings) losses 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 and other, gain on business combination and certain other one-time items. 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) and Adjusted EBITDA reported for each segment. Non-cash stock-based compensation expense is presented under Corporate and Other in the tables below as the expense is not allocated to reportable segments when reviewed by the Company’s chief operating decision makers.

 

The following tables provide information regarding the Company’s segments for the three and six months ended June 30, 2015 and 2014:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amounts in thousands

 

For the three months ended June 30, 2015

 

 

 

 

 

 

Canada

 

 

United States

 

 

Poland

 

 

Corporate and Other

 

 

Consolidated

Revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net operating revenue

 

$
13,309 

 

$
7,210 

 

$
12,875 

 

$
4,481 

 

$
37,875 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Results

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net earnings (loss) attributable to Century Casinos, Inc. shareholders

 

$
2,258 

 

$
718 

 

$
568 

 

$
3,053 

 

$
6,597 

Interest expense (income), net

 

 
992 

 

 
0 

 

 
43 

 

 
(2)

 

 
1,033 

Income taxes (benefit)

 

 
611 

 

 
362 

 

 
268 

 

 
(1,647)

 

 
(406)

Depreciation and amortization

 

 
573 

 

 
632 

 

 
636 

 

 
49 

 

 
1,890 

Non-controlling interests

 

 
738 

 

 
0 

 

 
284 

 

 
0 

 

 
1,022 

Non-cash stock-based compensation

 

 
0 

 

 
0 

 

 
0 

 

 
419 

 

 
419 

Gain (loss) on foreign currency transactions and other

 

 
(357)

 

 
0 

 

 
(35)

 

 
(15)

 

 
(407)

Loss on disposition of fixed assets

 

 
3 

 

 
0 

 

 
22 

 

 
0 

 

 
25 

Acquisition costs

 

 
(36)

 

 
0 

 

 
0 

 

 
36 

 

 
0 

Preopening expenses

 

 
0 

 

 
0 

 

 
0 

 

 
0 

 

 
0 

Other one-time (income) costs

 

 
0 

 

 
0 

 

 
0 

 

 
(3,365)

 

 
(3,365)

Adjusted EBITDA

 

$
4,782 

 

$
1,712 

 

$
1,786 

 

$
(1,472)

 

$
6,808 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net operating revenue for Corporate and Other of $0.9 million, $0.1 million, $0.1 million, and $3.4 million was attributable to cruise ships operating on international waters, Aruba, Argentina, and the termination of the concession agreements, respectively. Other one-time (income) costs for the three months ended June 30, 2015 for Corporate and Other were attributable to the termination of the concession agreements.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amounts in thousands

 

For the three months ended June 30, 2014

 

 

 

 

 

Canada

 

United States

 

Poland

 

Corporate and Other

 

Consolidated

Revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net operating revenue

 

$
8,708 

 

$
6,740 

 

$
14,248 

 

$
1,859 

 

$
31,555 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Results

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net earnings (loss) attributable to Century Casinos, Inc. shareholders

 

$
1,430 

 

$
392 

 

$
(348)

 

$
(1,318)

 

$
156 

Interest expense (income), net

 

 
596 

 

 
0 

 

 
67 

 

 
(13)

 

 
650 

Income taxes (benefit)

 

 
632 

 

 
233 

 

 
(71)

 

 
(361)

 

 
433 

Depreciation and amortization

 

 
490 

 

 
594 

 

 
723 

 

 
153 

 

 
1,960 

Non-controlling interests

 

 
(698)

 

 
0 

 

 
(174)

 

 
0 

 

 
(872)

Non-cash stock-based compensation

 

 
0 

 

 
0 

 

 
0 

 

 
21 

 

 
21 

Gain (loss) on foreign currency transactions and other

 

 
26 

 

 
0 

 

 
(68)

 

 
(3)

 

 
(45)

Loss on disposition of fixed assets

 

 
0 

 

 
1 

 

 
737 

 

 
3 

 

 
741 

Acquisition costs

 

 
0 

 

 
0 

 

 
0 

 

 
0 

 

 
0 

Preopening expenses

 

 
0 

 

 
0 

 

 
0 

 

 
0 

 

 
0 

Other one-time (income) costs

 

 
0 

 

 
0 

 

 
110 

 

 
0 

 

 
110 

Adjusted EBITDA

 

$
2,476 

 

$
1,220 

 

$
976 

 

$
(1,518)

 

$
3,154 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net operating revenue for Corporate and Other of $1.8 million and $0.1 million was attributable to cruise ships operating on international waters and Aruba, respectively. Other one-time (income) costs for the three months ended June 30, 2014 for Poland were the costs associated with relocating the Poznan casino to the four star Hotel Andersia.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amounts in thousands

 

For the six months ended June 30, 2015

 

 

 

 

 

 

Canada

 

 

United States

 

 

Poland

 

 

Corporate and Other

 

 

Consolidated

Revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net operating revenue

 

$
21,754 

 

$
14,003 

 

$
26,409 

 

$
6,113 

 

$
68,279 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Results

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net earnings (loss) attributable to Century Casinos, Inc. shareholders

 

$
4,392 

 

$
1,194 

 

$
1,351 

 

$
1,505 

 

$
8,442 

Interest expense (income), net

 

 
1,625 

 

 
0 

 

 
78 

 

 
(6)

 

 
1,697 

Income taxes (benefit)

 

 
957 

 

 
731 

 

 
516 

 

 
(2,175)

 

 
29 

Depreciation and amortization

 

 
992 

 

 
1,266 

 

 
1,247 

 

 
197 

 

 
3,702 

Non-controlling interests

 

 
(1)

 

 
0 

 

 
675 

 

 
0 

 

 
674 

Non-cash stock-based compensation

 

 
0 

 

 
0 

 

 
0 

 

 
807 

 

 
807 

Gain (loss) on foreign currency transactions and other

 

 
(519)

 

 
0 

 

 
(368)

 

 
(15)

 

 
(902)

Loss on disposition of fixed assets

 

 
3 

 

 
0 

 

 
142 

 

 
1 

 

 
146 

Acquisition costs

 

 
0 

 

 
0 

 

 
0 

 

 
0 

 

 
0 

Preopening expenses

 

 
345 

 

 
0 

 

 
0 

 

 
0 

 

 
345 

Other one-time (income) costs

 

 
0 

 

 
0 

 

 
0 

 

 
(3,365)

 

 
(3,365)

Adjusted EBITDA

 

$
7,794 

 

$
3,191 

 

$
3,641 

 

$
(3,051)

 

$
11,575 

 

Net operating revenue for Corporate and Other of $2.4 million, $0.2 million, $0.1 million, and $3.4 million was attributable to cruise ships operating on international waters, Aruba, Argentina, and the termination of the concession agreements, respectively. Other one-time (income) costs for the six months ended June 30, 2015 for Corporate and Other was attributable to the termination of the concession agreements.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amounts in thousands

 

For the six months ended June 30, 2014

 

 

 

 

 

Canada

 

United States

 

Poland

 

Corporate and Other

 

Consolidated

Revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net operating revenue

 

$
17,271 

 

$
13,201 

 

$
26,661 

 

$
3,532 

 

$
60,665 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Results

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net earnings (loss) attributable to Century Casinos, Inc. shareholders

 

$
2,908 

 

$
601 

 

$
(317)

 

$
(2,525)

 

$
667 

Interest expense (income), net

 

 
1,186 

 

 
0 

 

 
162 

 

 
(27)

 

 
1,321 

Income taxes (benefit)

 

 
1,012 

 

 
369 

 

 
(91)

 

 
(642)

 

 
648 

Depreciation and amortization

 

 
945 

 

 
1,128 

 

 
1,416 

 

 
281 

 

 
3,770 

Non-controlling interests

 

 
(998)

 

 
0 

 

 
(158)

 

 
0 

 

 
(1,156)

Non-cash stock-based compensation

 

 
0 

 

 
0 

 

 
0 

 

 
43 

 

 
43 

Gain (loss) on foreign currency transactions and other

 

 
(22)

 

 
0 

 

 
(164)

 

 
11 

 

 
(175)

Loss on disposition of fixed assets

 

 
0 

 

 
1 

 

 
796 

 

 
3 

 

 
800 

Acquisition costs

 

 
0 

 

 
0 

 

 
0 

 

 
0 

 

 
0 

Preopening expenses

 

 
0 

 

 
0 

 

 
0 

 

 
0 

 

 
0 

Other one-time (income) costs

 

 
(103)

 

 
0 

 

 
110 

 

 
0 

 

 
7 

Adjusted EBITDA

 

$
4,928 

 

$
2,099 

 

$
1,754 

 

$
(2,856)

 

$
5,925 

 

Net operating revenue for Corporate and Other of $3.3 million and $0.2 million was attributable to cruise ships operating on international waters and Aruba, respectively. Other one-time (income) costs for the six months ended June 30, 2014 for Canada were the insurance proceeds received from a damaged barn and for Poland were the costs associated with relocating the Poznan casino to the four star Hotel Andersia.