EX-99.1 2 c147-20150807ex9918f6bc2.htm EX-99.1

August 7, 2015

PRESS RELEASE

Century Casinos, Inc. Announces Second Quarter 201 5 Results

Colorado Springs, Colorado – August 7, 2015 – Century Casinos, Inc. (NASDAQ Capital Market®: CNTY) today announced its financial results for the three and six months ended June 30, 2015.

Second Quarter 201 5 Highlights*

| · |  | Net operating revenue was $37.9 million, a 20% in crease from the three months ended June 30, 2014.

| · |  | Adjusted EBITDA** was $6.8 million, a 116% in crease from the three months ended June 30, 2014.

| · |  | Net earnings attributable to Century Casinos, Inc. shareholders were $6.6 million, a 4 129% in crease from the three months ended June 30, 2014.

| · |  | Earnings per share were $0.2 7.

| · |  | Book value per share*** at June 30, 2015 was $5.0 5.

The period over period increase s in net operating revenue, Adjusted EBITDA** and net earnings attributable to Century Casinos, Inc. shareholders relate to the operating results of Century Downs Racetrack and Casino (“CDR”) and Century Bets!, Inc. (“CBS”). N et operating revenue and net earnings attributable to Century Casinos, Inc. shareholders also increased due to the termination of the Company’s concession agreements with Oceania Cruises and Regent Seven Seas Cruises and the r eduction of the Company’s Austrian tax valuation allowance.

CDR opened its casino on April 1, 2015 and held its first horserace on April 25, 2015. The Company owns 75% of CDR through one of its subsidiaries.

CBS began operating the pari-mutuel network in Southern Alberta on May 4, 2015. The Company owns 75% of CBS through one of its subsidiaries.

I n March 2015, the Company agreed to terminate its concession agreements with Oceania Cruises and Regent Seven Seas Cruises, indirect subsidiaries of Norwegian Cruise Line Holdings Ltd., effective June 1, 2015. As consideration for early termination of the concession agreements, the Company receive d $4.0 million in the second quarter of 2015. The Company operated eight ship-based casinos onboard Oceania Cruises and Regent Seven Seas Cruises vessels.

In addition, the Company entered into a two-year consulting agreement, effective June 1, 2015, under which it will provide limited consulting services to Oceania Cruises and Regent Seven Seas Cruises in return for a $2.0 million consulting fee that is payable in eight quarterly installments.

In May 2015, the Company began operating the ship-based casinos onboard two new Windstar Cruises ships, Star Breeze and Star Legend, and a new TUI Cruises ship, Mein Schiff 4.

*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-GAAP financial measures. See discussion and reconciliation of Non-GAAP financial measures in Supplemental Information below.

*** The Company defines book value per share as total Century Casinos shareholders’ equity divided by outstanding common shares.

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In the second quarter of 2015, based on an analysis of the likelihood of future realization of its deferred tax assets in Austria, the Company concluded that its Austrian operations ha d attained a sustained level of profitability sufficient to reduce its valuation allowance in that jurisdiction, resulting in a tax benefit of $1.5 million.

Amounts in thousands, except per share data | For the Three Months Ended June 30, |  |  |  | For the Six Months Ended June 30,
Consolidated Results: |  |  | 2015 |  |  | 2014 |  |  | % Change |  |  | 2015 |  |  | 2014 |  |  | % Change
Net operating revenue |  | $ | 37,875 |  | $ | 31,555 |  |  | 20% |  | $ | 68,279 |  | $ | 60,665 |  |  | 13%
Earnings from operations |  |  | 7,839 |  |  | 322 |  |  | 2335% |  |  | 9,940 |  |  | 1,305 |  |  | 662%
Net earnings attributable to Century Casinos, Inc. shareholders |  |  | 6,597 |  |  | 156 |  |  | 4129% |  |  | 8,442 |  |  | 667 |  |  | 1166%
Adjusted EBITDA** |  | $ | 6,808 |  | $ | 3,154 |  |  | 116% |  | $ | 11,575 |  | $ | 5,925 |  |  | 95%
Earnings per share: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Basic |  | $ | 0.27 |  | $ | 0.01 |  |  | 2600% |  | $ | 0.35 |  | $ | 0.03 |  |  | 1067%
Diluted |  | $ | 0.27 |  | $ | 0.01 |  |  | 2600% |  | $ | 0.35 |  | $ | 0.03 |  |  | 1067%
Weighted average common shares: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Basic |  |  | 24,386 |  |  | 24,381 |  |  |  |  |  | 24,384 |  |  | 24,380 |  |  |
Diluted |  |  | 24,428 |  |  | 24,420 |  |  |  |  |  | 24,424 |  |  | 24,389 |  |  |

“We are delighted with the results of the second quarter, posting strong growth of all financial key figures and operating numbers,” Erwin Haitzmann and Peter Hoetzinger, Co Chief Executive Officers of Century Casinos, said. “Century Downs Racetrack and Casino contributed significantly in its first quarter of operations and we are excited about the potential of this property to add scale to our portfolio as well as to generate attractive returns on invested capital for our shareholders,” they continued.

*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-GAAP financial measures. See discussion and reconciliation of Non-GAAP financial measures in Supplemental Information below.

*** The Company defines book value per share as total Century Casinos shareholders’ equity divided by outstanding common shares.

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Three and Six Months Ended June 30, 2015 Results*

The table below shows the Company’s operating segments that are included in each of the Company’s 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

Net operating revenue in creased by $6.3 million, or 20%, and $7.6 million, or 1 3%, for the three and six months ended June 30, 2015 compared to the three and six months ended June 30, 2014. Following is a summary of the change s in net operating revenue by segment for the three and six months ended June 30, 2015 compared to the three and six months end ed June 30, 2014:

| Net Operating Revenue
| For the Three Months | For the Six Months
| Ended June 30, | Ended June 30,
| 2015/2014 | 2015/2014
Amounts in millions |  |  | Change |  |  | % Change |  |  | Change |  |  | % Change
Canada |  | $ | 4.6 |  |  | 53% |  | $ | 4.5 |  |  | 26%
United States |  |  | 0.5 |  |  | 7% |  |  | 0.8 |  |  | 6%
Poland |  |  | (1.4) |  |  | (10%) |  |  | (0.3) |  |  | (1%)
Corporate and Other |  |  | 2.6 |  |  | 141% |  |  | 2.6 |  |  | 73%
Total |  | $ | 6.3 |  |  | 20% |  | $ | 7.6 |  |  | 13%

*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-GAAP financial measures. See discussion and reconciliation of Non-GAAP financial measures in Supplemental Information below.

*** The Company defines book value per share as total Century Casinos shareholders’ equity divided by outstanding common shares.

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E arnings from operations increased by $7.5 million, or 2335%, and $8.6 million, or 662%, for the three and six months ended June 30, 201 5 compared to the three and six months ended June 30, 201 4. Following is a summary of the changes in e arnings from operations by segment for the three and six months ended June 30, 201 5 compared to the three and six months ended June 30, 201 4:

| Earnings from Operations
| For the Three Months | For the Six Months
| Ended June 30, | Ended June 30,
| 2015/2014 | 2015/2014
Amounts in millions |  |  | Change |  |  | % Change |  |  | Change |  |  | % Change
Canada |  | $ | 2.3 |  |  | 114% |  | $ | 2.4 |  |  | 58%
United States |  |  | 0.5 |  |  | 73% |  |  | 1.0 |  |  | 99%
Poland |  |  | 1.7 |  |  | 290% |  |  | 2.8 |  |  | 497%
Corporate and Other |  |  | 3.1 |  |  | 182% |  |  | 2.5 |  |  | 78%
Total |  | $ | 7.5 |  |  | 2335% |  | $ | 8.6 |  |  | 662%

Net earnings attributable to Century Casinos, Inc. shareholders in creased by $6.4 million, or 4129%, and $7.8 million, or 1 1 6 6%, for the three and six months ended June 30, 2015 compared to the three and six months ended June 30, 2014. Following is a summary of the change s in net earnings attributable to Century Casinos, Inc. shareholders by segment for the three and six months ended June 30, 2015 compared to the three and six months ended June 30, 2014:

| Net Earnings Attributable to Century Casinos, Inc. Shareholders
| For the Three Months | For the Six Months
| Ended June 30, | Ended June 30,
| 2015/2014 | 2015/2014
Amounts in millions |  |  | Change |  |  | % Change |  |  | Change |  |  | % Change
Canada |  | $ | 0.8 |  |  | 58% |  | $ | 1.5 |  |  | 51%
United States |  |  | 0.3 |  |  | 83% |  |  | 0.6 |  |  | 99%
Poland |  |  | 0.9 |  |  | 263% |  |  | 1.7 |  |  | 526%
Corporate and Other |  |  | 4.4 |  |  | 332% |  |  | 4.0 |  |  | 160%
Total |  | $ | 6.4 |  |  | 4129% |  | $ | 7.8 |  |  | 1166%

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 expense and non-controlling interests.

*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-GAAP financial measures. See discussion and reconciliation of Non-GAAP financial measures in Supplemental Information below.

*** The Company defines book value per share as total Century Casinos shareholders’ equity divided by outstanding common shares.

4/14

*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-GAAP financial measures. See discussion and reconciliation of Non-GAAP financial measures in Supplemental Information below.

*** The Company defines book value per share as total Century Casinos shareholders’ equity divided by outstanding common shares.

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Segment Results (in thousands)*

The following are segment results for n et o perating r evenue and A djusted EBITDA**.

|  | Net Operating Revenue |  |  |  |  | Adjusted EBITDA** |  |  |  |  | Net Operating Revenue |  |  |  |  | Adjusted EBITDA** |  |  |
|  | For the Three Months |  |  |  | For the Three Months |  |  |  | For the Six Months |  |  |  | For the Six Months |  |
|  | Ended June 30, |  |  |  |  | Ended June 30, |  |  |  | Ended June 30, |  |  |  | Ended June 30, |  |
|  | 2015 |  | 2014 |  | % Change |  | 2015 |  | 2014 |  | % Change |  | 2015 |  | 2014 |  | % Change |  | 2015 |  | 2014 |  | % Change
Canada |  | $ | 13,309 |  | $ | 8,708 |  |  | 53% |  | $ | 4,782 |  | $ | 2,476 |  |  | 93% |  | $ | 21,754 |  | $ | 17,271 |  |  | 26% |  | $ | 7,794 |  | $ | 4,928 |  |  | 58%
United States |  |  | 7,210 |  |  | 6,740 |  |  | 7% |  |  | 1,712 |  |  | 1,220 |  |  | 40% |  |  | 14,003 |  |  | 13,201 |  |  | 6% |  |  | 3,191 |  |  | 2,099 |  |  | 52%
Poland |  |  | 12,875 |  |  | 14,248 |  |  | (10%) |  |  | 1,786 |  |  | 976 |  |  | 83% |  |  | 26,409 |  |  | 26,661 |  |  | (1%) |  |  | 3,641 |  |  | 1,754 |  |  | 108%
Corporate and Other |  |  | 4,481 |  |  | 1,859 |  |  | 141% |  |  | (1,472) |  |  | (1,518) |  |  | 3% |  |  | 6,113 |  |  | 3,532 |  |  | 73% |  |  | (3,051) |  |  | (2,856) |  |  | (7%)
Consolidated |  | $ | 37,875 |  | $ | 31,555 |  |  | 20% |  | $ | 6,808 |  | $ | 3,154 |  |  | 116% |  | $ | 68,279 |  | $ | 60,665 |  |  | 13% |  | $ | 11,575 |  | $ | 5,925 |  |  | 95%

*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-GAAP financial measures. See discussion and reconciliation of Non-GAAP financial measures in Supplemental Information below.

*** The Company defines book value per share as total Century Casinos shareholders’ equity divided by outstanding common shares.

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Balance Sheet and Liquidity

As of June 30, 2015, the Company had $28.9 million in cas h and cash e quivalents and $44.7 million in outstanding debt on its balance sheet compared to $24.7 million in cash and cash equivalents and $38.3 million in outstanding debt at December 3 1, 201 4. The $44.7 million in outstanding debt as of June 30, 2015 includes $5.0 million related to C asinos Poland, Ltd., $1 5.6 million related to a long-term land lease by CDR and $24.0 million related to the Company’s Bank of Montreal credit agreement.

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, 2015 on its website at http://corporate.cnty.com/investor-relations/sec-filings. The Company will also post a presentation on the second quarter results on its website at http://corporate.cnty.com/investor-relations/presentations-and-interviews.

Century Casinos will host its second quarter 201 5 earning s conference call today at 8:00 am M D T; 4:00 pm CE S T, respectively. U.S. domestic participants should dial 1-844-244-9160. For all international participants, please use 33 0-931-4670 to dial-in. Participan ts may listen to the call live at https://centurycasinos.adobeconnect.com/earningsrelease or obtain a recording of the call on the Company’s website until August 31, 201 5 at http://corporate.cnty.com/investor-relations/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-GAAP financial measures. See discussion and reconciliation of Non-GAAP financial measures in Supplemental Information below.

*** The Company defines book value per share as total Century Casinos shareholders’ equity divided by outstanding common shares.

7/14

(continued)

CENTURY CASINOS, INC. AND SUBSIDIARIES

FINANCIAL INFORMATION – US GAAP BASIS

Century Casinos, Inc.
Condensed Consolidated Statements of Earnings (Loss)

| For the Three Months Ended June 30, | For the Six Months Ended June 30,
Amounts in thousands, except for per share information |  | 2015 |  | 2014 |  | 2015 |  | 2014
Operating revenue: |  |  |  |  |  |  |  |  |  |  |  |
Net operating revenue |  | $ | 37,875 |  | $ | 31,555 |  | $ | 68,279 |  | $ | 60,665
Operating costs and expenses: |  |  |  |  |  |  |  |  |  |  |  |
Total operating costs and expenses |  |  | 30,036 |  |  | 31,233 |  |  | 58,339 |  |  | 59,360
Earnings from operations |  |  | 7,839 |  |  | 322 |  |  | 9,940 |  |  | 1,305
Non-operating income (expense): |  |  |  |  |  |  |  |  |  |  |  |
Interest income |  |  | 1 |  |  | 47 |  |  | 15 |  |  | 61
Interest expense |  |  | (1,034) |  |  | (697) |  |  | (1,712) |  |  | (1,382)
Gain on foreign currency transactions and other |  |  | 407 |  |  | 45 |  |  | 902 |  |  | 175
Non-operating (expense), net |  |  | (626) |  |  | (605) |  |  | (795) |  |  | (1,146)
Earnings (loss) before income taxes |  |  | 7,213 |  |  | (283) |  |  | 9,145 |  |  | 159
Income tax provision |  |  | (406) |  |  | 433 |  |  | 29 |  |  | 648
Net earnings (loss) |  |  | 7,619 |  |  | (716) |  |  | 9,116 |  |  | (489)
Net (earnings) loss attributable to non-controlling interest |  |  | (1022) |  |  | 872 |  |  | (674) |  |  | 1156
Net earnings attributable to Century Casinos, Inc. shareholders |  | $ | 6,597 |  | $ | 156 |  | $ | 8,442 |  | $ | 667
Earnings per share attributable to Century Casinos, Inc.: |  |  |  |  |  |  |  |  |  |  |  |
Basic |  | $ | 0.27 |  | $ | 0.01 |  | $ | 0.35 |  | $ | 0.03
Diluted |  | $ | 0.27 |  | $ | 0.01 |  | $ | 0.35 |  | $ | 0.03

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CENTURY CASINOS, INC. AND SUBSIDIARIES

FINANCIAL INFORMATION – US GAAP BASIS

Century Casinos, Inc. |  |  |  |  |  |
Condensed Consolidated Balance Sheets |  |  |  |  |  |
(Amounts in thousands) |  |  |  |  |  |
|  | June 30, |  | December 31,
|  | 2015 |  | 2014
Assets |  |  |  |  |  |
Current assets |  | $ | 34,597 |  | $ | 30,163
Property and equipment, net |  |  | 137,412 |  |  | 134,627
Other assets |  |  | 22,735 |  |  | 22,677
Total assets |  | $ | 194,744 |  | $ | 187,467
Liabilities and Equity |  |  |  |  |  |
Current liabilities |  | $ | 25,504 |  | $ | 28,128
Non-current liabilities |  |  | 41,437 |  |  | 36,913
Century Casinos, Inc. shareholders' equity |  |  | 123,304 |  |  | 118,428
Non-controlling interest |  |  | 4,499 |  |  | 3,998
Total liabilities and equity |  | $ | 194,744 |  | $ | 187,467

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CENTURY CASINOS, INC. AND SUBSIDIARIES

SUPPLEMENTAL INFORMATION

Century Casinos, Inc.

Adjusted EBITDA Margins ** by Segment (unaudited)

| For the Three Months | For the Six Months
| Ended June 30, | Ended June 30,
| 2015 | 2014 | 2015 | 2014
Canada | 36% | 28% | 36% | 29%
United States | 24% | 18% | 23% | 16%
Poland | 14% | 7% | 14% | 7%
Corporate and Other | (33%) | (82%) | (50%) | (81%)
Consolidated Adjusted EBITDA Margin | 18% | 10% | 17% | 10%

Century Casinos, Inc.

Reconciliation of Adjusted EBITDA * to Net Earnings (Loss) by Segment

For the three months ended June 30, 2015

Amounts i n thousands

| For the Three Months Ended June 30, 2015
|  | Canada |  | United States |  | Poland |  | Corporate and Other |  | Total
Net earnings |  | $ | 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 interest |  |  | 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

10/14

CENTURY CASINOS, INC. AND SUBSIDIARIES

SUPPLEMENTAL INFORMATION

Century Casinos, Inc.

Reconciliation of Adjusted EBITDA * to Net Earnings (Loss) by Segment

For the three months ended June 30, 2014

Amounts i n thousands

| For the Three Months Ended June 30, 2014
|  | Canada |  | United States |  | Poland |  | Corporate and Other |  | Total
Net earnings (loss) |  | $ | 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 interest |  |  | (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

Century Casinos, Inc.

Reconciliation of Adjusted EBITDA * to Net Earnings (Loss) by Segment

For the six months ended June 30, 2015

Amounts i n thousands

| For the Six Months Ended June 30, 2015
|  | Canada |  | United States |  | Poland |  | Corporate and Other |  | Total
Net earnings |  | $ | 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 interest |  |  | (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

11/14

CENTURY CASINOS, INC. AND SUBSIDIARIES

SUPPLEMENTAL INFORMATION

Century Casinos, Inc.

Reconciliation of Adjusted EBITDA * to Net Earnings (Loss) by Segment

For the six months ended June 30, 2014

Amounts i n thousands

| For the Six Months Ended June 30, 2014
|  | Canada |  | United States |  | Poland |  | Corporate and Other |  |  | Total
Net earnings (loss) |  | $ | 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 interest |  |  | (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)
(Gain) 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

* The Company defines Adjusted EBITDA 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. 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 accounting principles generally accepted in the United States of America (“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) above.

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SUPPLEMENTAL INFORMATION

** 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 t he Company’s casino operations.

About Century Casinos, Inc.:

Century Casinos, Inc. is an international casino entert ainment company that operates worldwide. The Company owns and operates Century Casino & Hotels in Cripple Creek and Central City, Colorado, and in Edmonton, Alberta, Canada and the Century Casino in Calgary, Alberta, Canada. Through its Austrian subsidiary, Century Casinos Europe GmbH (“CCE”), the Company holds a 66.6% ownership interest in Casinos Poland Ltd., the owner and operator of nine casinos in Poland. The Company, through CCE, also owns a 75% ownership interest in both CDR, which began operations in the north metropolitan area of Calgary, Alberta, Canada in April 2015, and CBS, which began operating the pari-mutuel off-track horse betting network in Southern Alberta, Canada in May 2015. The Company operates 11 ship-based casinos on board ships of the following cruise lines: TUI Cruises, Windstar Cruises and Nova Star Cruises, Ltd. The Company manages the operations of the casino at the Radisson Aruba Resort, Casino & Spa in Aruba, Caribbean, which was sold in July 2015 and rebranded as the Hilton Aruba Caribbean Resort and Casino. The Company’s management agreement did not change as a result of this sale. The Company, through CCE, 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 Mendoza Casino in Mendoza, Argentin a. The Company continues to pursue other international projects in various stages of development.

For more information about Century Casinos, visit our website at www.cnty.com. Century Casinos’ common stock trades on The NASDAQ Capital Market® under the symbol CNTY.

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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, operating efficiencies, synerg ies and operational performance, the prospects for the Century Downs Racetrack and Casino proje ct and other projects, debt repayment, investments in joint ventures, outcomes of legal proceedings 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, 201 4 and in subsequent Form 10-Q filings. 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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