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Segment Information
 9 Months Ended
Sep. 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-U.S. 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 nine months ended September 30, 2015 and 2014:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amounts in thousands

 

For the three months ended September 30, 2015

 

 

 

 

 

 

Canada

 

 

United States

 

 

Poland

 

 

Corporate and Other

 

 

Consolidated

Revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net operating revenue

 

$
12,198 

 

$
7,958 

 

$
12,449 

 

$
921 

 

$
33,526 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Results

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

$
1,957 

 

$
931 

 

$
536 

 

$
(696)

 

$
2,728 

Interest expense (income), net

 

 
783 

 

 
0 

 

 
31 

 

 
(4)

 

 
810 

Income taxes (benefit)

 

 
519 

 

 
571 

 

 
227 

 

 
(944)

 

 
373 

Depreciation and amortization

 

 
644 

 

 
638 

 

 
678 

 

 
118 

 

 
2,078 

Non-controlling interests

 

 
145 

 

 
0 

 

 
266 

 

 
0 

 

 
411 

Non-cash stock-based compensation

 

 
0 

 

 
0 

 

 
0 

 

 
423 

 

 
423 

(Gain) loss on foreign currency transactions and other

 

 
(148)

 

 
0 

 

 
(98)

 

 
6 

 

 
(240)

Loss on disposition of fixed assets

 

 
2 

 

 
0 

 

 
131 

 

 
3 

 

 
136 

Other one-time (income) costs

 

 
0 

 

 
0 

 

 
0 

 

 
0 

 

 
0 

Adjusted EBITDA

 

$
3,902 

 

$
2,140 

 

$
1,771 

 

$
(1,094)

 

$
6,719 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net operating revenue for Corporate and Other of $0.8 million, $0.1 million and $0.1 million was attributable to cruise ships operating on international waters, the Aruba management agreement and the agreement in Argentina, respectively.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amounts in thousands

 

For the three months ended September 30, 2014

 

 

 

 

 

Canada

 

United States

 

Poland

 

Corporate and Other

 

Consolidated

Revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net operating revenue

 

$
8,264 

 

$
7,252 

 

$
10,425 

 

$
2,182 

 

$
28,123 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Results

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

$
1,548 

 

$
501 

 

$
(245)

 

$
(1,008)

 

$
796 

Interest expense (income), net

 

 
612 

 

 
0 

 

 
89 

 

 
(5)

 

 
696 

Income taxes (benefit)

 

 
387 

 

 
307 

 

 
(135)

 

 
(421)

 

 
138 

Depreciation and amortization

 

 
487 

 

 
647 

 

 
725 

 

 
191 

 

 
2,050 

Non-controlling interests

 

 
(594)

 

 
0 

 

 
(121)

 

 
0 

 

 
(715)

Non-cash stock-based compensation

 

 
0 

 

 
0 

 

 
0 

 

 
14 

 

 
14 

(Gain) loss on foreign currency transactions and other

 

 
(47)

 

 
0 

 

 
(155)

 

 
2 

 

 
(200)

Gain on disposition of fixed assets

 

 
0 

 

 
0 

 

 
(12)

 

 
0 

 

 
(12)

Other one-time (income) costs

 

 
0 

 

 
0 

 

 
114 

 

 
0 

 

 
114 

Adjusted EBITDA

 

$
2,393 

 

$
1,455 

 

$
260 

 

$
(1,227)

 

$
2,881 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net operating revenue for Corporate and Other of $2.1 million and $0.1 million was attributable to cruise ships operating on international waters and the Aruba management agreement, respectively. Other one-time (income) costs for the three months ended September 30, 2014 for Poland were the costs associated with relocating the Poznan casino to the Hotel Andersia.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amounts in thousands

 

For the nine months ended September 30, 2015

 

 

 

 

 

 

Canada

 

 

United States

 

 

Poland

 

 

Corporate and Other

 

 

Consolidated

Revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net operating revenue

 

$
33,951 

 

$
21,960 

 

$
38,858 

 

$
7,034 

 

$
101,803 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Results

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

$
6,355 

 

$
2,125 

 

$
1,884 

 

$
806 

 

$
11,170 

Interest expense (income), net

 

 
2,406 

 

 
0 

 

 
110 

 

 
(10)

 

 
2,506 

Income taxes (benefit)

 

 
1,479 

 

 
1,301 

 

 
743 

 

 
(3,121)

 

 
402 

Depreciation and amortization

 

 
1,635 

 

 
1,904 

 

 
1,925 

 

 
316 

 

 
5,780 

Non-controlling interests

 

 
143 

 

 
0 

 

 
942 

 

 
0 

 

 
1,085 

Non-cash stock-based compensation

 

 
0 

 

 
0 

 

 
0 

 

 
1,230 

 

 
1,230 

(Gain) loss on foreign currency transactions and other

 

 
(670)

 

 
0 

 

 
(466)

 

 
(6)

 

 
(1,142)

Loss on disposition of fixed assets

 

 
4 

 

 
0 

 

 
273 

 

 
4 

 

 
281 

Preopening expenses

 

 
345 

 

 
0 

 

 
0 

 

 
0 

 

 
345 

Other one-time (income) costs

 

 
0 

 

 
0 

 

 
0 

 

 
(3,365)

 

 
(3,365)

Adjusted EBITDA

 

$
11,697 

 

$
5,330 

 

$
5,411 

 

$
(4,146)

 

$
18,292 

 

Net operating revenue for Corporate and Other of $3.2 million, $0.3 million, $0.2 million, and $3.4 million was attributable to cruise ships operating on international waters, the Aruba management agreement, the agreement in Argentina, and the termination of the Oceania and Regent concession agreements, respectively. Other one-time (income) costs for the nine months ended September 30, 2015 for Corporate and Other were attributable to the termination of the Oceania and Regent concession agreements.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amounts in thousands

 

For the nine months ended September 30, 2014

 

 

 

 

 

Canada

 

United States

 

Poland

 

Corporate and Other

 

Consolidated

Revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net operating revenue

 

$
25,533 

 

$
20,456 

 

$
37,087 

 

$
5,714 

 

$
88,790 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Results

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

$
4,458 

 

$
1,103 

 

$
(561)

 

$
(3,538)

 

$
1,462 

Interest expense (income), net

 

 
1,798 

 

 
0 

 

 
251 

 

 
(31)

 

 
2,018 

Income taxes (benefit)

 

 
1,400 

 

 
676 

 

 
(226)

 

 
(1,064)

 

 
786 

Depreciation and amortization

 

 
1,432 

 

 
1,775 

 

 
2,141 

 

 
472 

 

 
5,820 

Non-controlling interests

 

 
(1,592)

 

 
0 

 

 
(279)

 

 
0 

 

 
(1,871)

Non-cash stock-based compensation

 

 
0 

 

 
0 

 

 
0 

 

 
57 

 

 
57 

(Gain) loss on foreign currency transactions and other

 

 
(69)

 

 
0 

 

 
(320)

 

 
14 

 

 
(375)

Loss on disposition of fixed assets

 

 
0 

 

 
1 

 

 
784 

 

 
3 

 

 
788 

Other one-time (income) costs

 

 
(103)

 

 
0 

 

 
224 

 

 
0 

 

 
121 

Adjusted EBITDA

 

$
7,324 

 

$
3,555 

 

$
2,014 

 

$
(4,087)

 

$
8,806 

 

Net operating revenue for Corporate and Other of $5.4 million and $0.3 million was attributable to cruise ships operating on international waters and the Aruba management agreement, respectively. Other one-time (income) costs for the nine months ended September 30, 2014 for Canada were insurance proceeds received from a damaged barn and for Poland were the costs associated with relocating the Poznan casino to the Hotel Andersia.