EX-99.1 2 c147-20151106ex9912756eb.htm EX-99.1 Exhibit 991 Earnings Release Q3 2015

Picture 13

November 6, 2015

PRESS RELEASE

 

Century Casinos, Inc. Announces Third Quarter 2015 Results

 

Colorado Springs, Colorado – November 6, 2015 – Century Casinos, Inc. (NASDAQ Capital Market®: CNTY) today announced its financial results for the three and nine months ended September 30, 2015.  

 

Third Quarter 2015 Highlights*

·

Net operating revenue was $33.5 million, a 19%  increase from the three months ended September 30, 2014.  

·

Adjusted EBITDA** was $6.7 million, a 133%  increase from the three months ended September 30, 2014.  

·

Net earnings attributable to Century Casinos, Inc. shareholders were $2.7 million, a 243%  increase from the three months ended September 30, 2014. 

·

Earnings per share were $0.11.   

·

Book value per share*** at September 30, 2015 was $5.04.

 

The period over period increases 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”). CDR opened its casino on April 1, 2015 and held its first horse race 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.

 

*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.

1/13

 


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amounts in thousands, except per share data

For the Three Months                                                                       Ended September 30, 

 

 

 

For the Nine Months                                                                                        Ended September 30, 

Consolidated Results:

 

 

2015

 

 

2014

 

 

% Change

 

 

2015

 

 

2014

 

 

% Change

Net operating revenue

 

$

33,526 

 

$

28,123 

 

 

19% 

 

$

101,803 

 

$

88,790 

 

 

15% 

Earnings from operations

 

 

4,082 

 

 

715 

 

 

471% 

 

 

14,021 

 

 

2,020 

 

 

594% 

Net earnings attributable to Century Casinos, Inc. shareholders

 

 

2,728 

 

 

796 

 

 

243% 

 

 

11,170 

 

 

1,462 

 

 

664% 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA**

 

$

6,719 

 

$

2,881 

 

 

133% 

 

$

18,292 

 

$

8,806 

 

 

108% 

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.11 

 

$

0.03 

 

 

267% 

 

$

0.46 

 

$

0.06 

 

 

667% 

Diluted

 

$

0.11 

 

$

0.03 

 

 

267% 

 

$

0.46 

 

$

0.06 

 

 

667% 

Weighted average common shares: 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic 

 

 

24,399 

 

 

24,381 

 

 

 

 

 

24,389 

 

 

24,380 

 

 

 

Diluted

 

 

24,440 

 

 

24,417 

 

 

 

 

 

24,430 

 

 

24,419 

 

 

 

 

This is our fourth consecutive quarter with revenue and Adjusted EBITDA growth, Erwin Haitzmann and Peter Hoetzinger, Co Chief Executive Officers of Century Casinos, said. “We are very pleased with the momentum we have in our business across all geographies and all customer demographics,” 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.

2/13

 


 

Three and Nine Months Ended September 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 increased by $5.4 million, or 19%, and $13.0 million, or 15%, for the three and nine months ended September 30, 2015 compared to the three and nine months ended September 30, 2014.  Following is a summary of the changes in net operating revenue by segment for the three and nine months ended September 30, 2015 compared to the three and nine months ended September 30, 2014:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Operating Revenue

 

For the Three Months

For the Nine Months

 

Ended September 30,

Ended September 30,

 

2015/2014

2015/2014

Amounts in millions

 

 

Change

 

 

% Change

 

 

Change

 

 

% Change

Canada

 

$

3.9 

 

 

48% 

 

$

8.4 

 

 

33% 

United States

 

 

0.7 

 

 

10% 

 

 

1.5 

 

 

7% 

Poland

 

 

2.0 

 

 

19% 

 

 

1.8 

 

 

5% 

Corporate and Other

 

 

(1.3)

 

 

(58%)

 

 

1.3 

 

 

23% 

Total

 

$

5.4 

 

 

19% 

 

$

13.0 

 

 

15% 

 

 

*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.

3/13

 


 

Earnings from operations increased by $3.4 million, or 471%, and $12.0 million, or 594%, for the three and nine months ended September 30, 2015 compared to the three and nine months ended September 30, 2014.   Following is a summary of the changes in earnings from operations by segment for the three and nine months ended September 30, 2015 compared to the three and nine months ended September 30, 2014:  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings from Operations

 

For the Three Months

For the Nine Months

 

Ended September 30,

Ended September 30,

 

2015/2014

2015/2014

Amounts in millions

 

 

Change

 

 

% Change

 

 

Change

 

 

% Change

Canada

 

$

1.4 

 

 

71% 

 

$

3.7 

 

 

62% 

United States

 

 

0.7 

 

 

86% 

 

 

1.6 

 

 

93% 

Poland

 

 

1.5 

 

 

270% 

 

 

4.3 

 

 

383% 

Corporate and Other

 

 

(0.2)

 

 

(14%)

 

 

2.3 

 

 

50% 

Total

 

$

3.4 

 

 

471% 

 

$

12.0 

 

 

594% 

 

Net earnings attributable to Century Casinos, Inc. shareholders increased by $1.9 million, or 243%, and $9.7 million, or 664%, for the three and nine months ended September 30, 2015 compared to the three and nine months ended September 30, 2014.  Following is a summary of the changes in net earnings attributable to Century Casinos, Inc. shareholders by segment for the three and nine months ended September 30, 2015 compared to the three and nine months ended September 30, 2014:  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Earnings Attributable to                                                                                                                             Century Casinos, Inc. Shareholders

 

For the Three Months

For the Nine Months

 

Ended September 30,

Ended September 30,

 

2015/2014

2015/2014

Amounts in millions

 

 

Change

 

 

% Change

 

 

Change

 

 

% Change

Canada

 

$

0.4 

 

 

26% 

 

$

1.9 

 

 

43% 

United States

 

 

0.4 

 

 

86% 

 

 

1.0 

 

 

93% 

Poland

 

 

0.8 

 

 

319% 

 

 

2.4 

 

 

436% 

Corporate and Other

 

 

0.3 

 

 

31% 

 

 

4.3 

 

 

123% 

Total

 

$

1.9 

 

 

243% 

 

$

9.7 

 

 

664% 

 

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.

4/13

 


 

 

*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.

5/13

 


 

Segment Results (in thousands)*

The following are segment results for net operating revenue and Adjusted EBITDA**.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Operating Revenue

 

 

 

 

Adjusted EBITDA**

 

 

 

 

Net Operating Revenue

 

 

 

 

Adjusted EBITDA**

 

 

 

 

 

For the Three Months

 

 

 

For the Three Months

 

 

 

For the Nine Months

 

 

 

For the Nine Months

 

 

 

 

Ended September 30,

 

 

 

 

Ended September 30,

 

 

 

Ended September 30,

 

 

 

Ended September 30,

 

 

 

 

2015

 

2014

 

% Change

 

2015

 

2014

 

% Change

 

2015

 

2014

 

% Change

 

2015

 

2014

 

% Change

Canada

 

$

12,198 

 

$

8,264 

 

 

48% 

 

$

3,902 

 

$

2,393 

 

 

63% 

 

$

33,951 

 

$

25,533 

 

 

33% 

 

$

11,697 

 

$

7,324 

 

 

60% 

United States

 

 

7,958 

 

 

7,252 

 

 

10% 

 

 

2,140 

 

 

1,455 

 

 

47% 

 

 

21,960 

 

 

20,456 

 

 

7% 

 

 

5,330 

 

 

3,555 

 

 

50% 

Poland

 

 

12,449 

 

 

10,425 

 

 

19% 

 

 

1,771 

 

 

260 

 

 

581% 

 

 

38,858 

 

 

37,087 

 

 

5% 

 

 

5,411 

 

 

2,014 

 

 

169% 

Corporate and Other

 

 

921 

 

 

2,182 

 

 

(58%)

 

 

(1,094)

 

 

(1,227)

 

 

11% 

 

 

7,034 

 

 

5,714 

 

 

23% 

 

 

(4,146)

 

 

(4,087)

 

 

(1%)

Consolidated

 

$

33,526 

 

$

28,123 

 

 

19% 

 

$

6,719 

 

$

2,881 

 

 

133% 

 

$

101,803 

 

$

88,790 

 

 

15% 

 

$

18,292 

 

$

8,806 

 

 

108% 

 

 

*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.

6/13

 


 

Balance Sheet and Liquidity

As of September 30, 2015, the Company had $29.8 million in cash and cash equivalents and $39.8 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 31, 2014.  The $39.8 million in outstanding debt as of September 30, 2015 includes $21.7 million related to the Company’s Bank of Montreal credit agreement,  $3.5 million related to Casinos Poland, Ltd. and $14.6 million related to a long-term land lease by CDR.  

 

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

 

Century Casinos will host its third quarter 2015 earnings conference call today at 8:00 am MST; 4:00 pm CET, respectively. 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 https://centurycasinos.adobeconnect.com/earningsrelease or obtain a recording of the call on the Company’s website until November 30, 2015 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.

7/13

 


 

(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 September 30, 

For the Nine Months                                                                                        Ended September 30, 

Amounts in thousands, except for per share information

 

2015

 

2014

 

2015

 

2014

Operating revenue:

 

 

 

 

 

 

 

 

 

 

 

 

Net operating revenue

 

$

33,526 

 

$

28,123 

 

$

101,803 

 

$

88,790 

Operating costs and expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Total operating costs and expenses

 

 

29,444 

 

 

27,408 

 

 

87,782 

 

 

86,770 

Earnings from operations

 

 

4,082 

 

 

715 

 

 

14,021 

 

 

2,020 

Non-operating income (expense):

 

 

 

 

 

 

 

 

 

 

 

 

 Interest income

 

 

 

 

11 

 

 

21 

 

 

72 

 Interest expense

 

 

(816)

 

 

(707)

 

 

(2,527)

 

 

(2,090)

 Gain on foreign currency transactions and other

 

 

240 

 

 

200 

 

 

1,142 

 

 

375 

Non-operating (expense), net

 

 

(570)

 

 

(496)

 

 

(1,364)

 

 

(1,643)

Earnings before income taxes

 

 

3,512 

 

 

219 

 

 

12,657 

 

 

377 

Income tax provision

 

 

373 

 

 

138 

 

 

402 

 

 

786 

Net earnings (loss)

 

 

3,139 

 

 

81 

 

 

12,255 

 

 

(409)

Net (earnings) loss attributable to non-controlling interest

 

 

(411)

 

 

715 

 

 

(1,085)

 

 

1871 

Net earnings attributable to Century Casinos, Inc. shareholders

 

$

2,728 

 

$

796 

 

$

11,170 

 

$

1,462 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share attributable to Century Casinos, Inc.:

 

 

 

 

 

 

 

 

 

 

 

 

 Basic

 

$

0.11 

 

$

0.03 

 

$

0.46 

 

$

0.06 

 Diluted

 

$

0.11 

 

$

0.03 

 

$

0.46 

 

$

0.06 

 

 

8/13

 


 

CENTURY CASINOS, INC. AND SUBSIDIARIES

FINANCIAL INFORMATION – US GAAP BASIS 

 

 

 

 

 

 

 

 

 

Century Casinos, Inc.

 

 

 

 

 

 

Condensed Consolidated Balance Sheets

 

 

 

 

 

 

(Amounts in thousands)

 

 

 

 

 

 

 

 

September 30,

 

December 31,

 

 

2015

 

2014

Assets

 

 

 

 

 

 

Current assets

 

$

35,651 

 

$

30,163 

Property and equipment, net

 

 

132,770 

 

 

134,627 

Other assets

 

 

22,020 

 

 

22,677 

Total assets

 

$

190,441 

 

$

187,467 

 

 

 

 

 

 

 

Liabilities and Equity

 

 

 

 

 

 

Current liabilities

 

$

24,865 

 

$

28,128 

Non-current liabilities

 

 

37,853 

 

 

36,913 

Century Casinos, Inc. shareholders' equity

 

 

123,099 

 

 

118,428 

Non-controlling interest

 

 

4,624 

 

 

3,998 

Total liabilities and equity

 

$

190,441 

 

$

187,467 

 

 

9/13

 


 

CENTURY CASINOS, INC. AND SUBSIDIARIES

SUPPLEMENTAL INFORMATION

 

Century Casinos, Inc.

Adjusted EBITDA Margins ** by Segment (unaudited)

 

 

 

 

 

 

 

 

 

 

For the Three Months

For the Nine Months

 

Ended September 30,

Ended September 30,

 

2015

2014

2015

2014

Canada

32% 
29% 
35% 
29% 

United States

27% 
20% 
24% 
17% 

Poland

14% 
3% 
14% 
5% 

Corporate and Other

(119%)
(56%)
(59%)
(72%)

Consolidated Adjusted EBITDA Margin

20% 
10% 
18% 
10% 

 

 

 

Century Casinos, Inc.

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

For the three months ended September 30, 2015

 

Amounts in thousands

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended September 30, 2015

 

 

Canada

 

United States

 

Poland

 

Corporate and Other

 

Total

Net earnings (loss)

 

$

1,957 

 

$

931 

 

$

536 

 

$

(696)

 

$

2,728 

Interest expense (income), net

 

 

783 

 

 

 

 

31 

 

 

(4)

 

 

810 

Income taxes (benefit)

 

 

519 

 

 

571 

 

 

227 

 

 

(944)

 

 

373 

Depreciation and amortization

 

 

644 

 

 

638 

 

 

678 

 

 

118 

 

 

2,078 

Non-controlling interest

 

 

145 

 

 

 

 

266 

 

 

 

 

411 

Non-cash stock-based compensation

 

 

 

 

 

 

 

 

423 

 

 

423 

(Gain) loss on foreign currency transactions and other

 

 

(148)

 

 

 

 

(98)

 

 

 

 

(240)

Loss on disposition of fixed assets

 

 

 

 

 

 

131 

 

 

 

 

136 

Other one-time (income) costs

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA

 

$

3,902 

 

$

2,140 

 

$

1,771 

 

$

(1,094)

 

$

6,719 

 

 

10/13

 


 

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 September 30, 2014

 

Amounts in thousands

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended September 30, 2014

 

 

Canada

 

United States

 

Poland

 

Corporate and Other

 

Total

Net earnings (loss)

 

$

1,548 

 

$

501 

 

$

(245)

 

$

(1,008)

 

$

796 

Interest expense (income), net

 

 

612 

 

 

 

 

89 

 

 

(5)

 

 

696 

Income taxes (benefit)

 

 

387 

 

 

307 

 

 

(135)

 

 

(421)

 

 

138 

Depreciation and amortization

 

 

487 

 

 

647 

 

 

725 

 

 

191 

 

 

2,050 

Non-controlling interest

 

 

(594)

 

 

 

 

(121)

 

 

 

 

(715)

Non-cash stock-based compensation

 

 

 

 

 

 

 

 

14 

 

 

14 

(Gain) loss on foreign currency transactions and other

 

 

(47)

 

 

 

 

(155)

 

 

 

 

(200)

Gain on disposition of fixed assets

 

 

 

 

 

 

(12)

 

 

 

 

(12)

Other one-time (income) costs

 

 

 

 

 

 

114 

 

 

 

 

114 

Adjusted EBITDA

 

$

2,393 

 

$

1,455 

 

$

260 

 

$

(1,227)

 

$

2,881 

 

Century Casinos, Inc.

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

For the nine months ended September 30, 2015

 

Amounts in thousands

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Nine Months Ended September 30, 2015

 

 

Canada

 

United States

 

Poland

 

Corporate and Other

 

Total

Net earnings

 

$

6,355 

 

$

2,125 

 

$

1,884 

 

$

806 

 

$

11,170 

Interest expense (income), net

 

 

2,406 

 

 

 

 

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 interest

 

 

143 

 

 

 

 

942 

 

 

 

 

1,085 

Non-cash stock-based compensation

 

 

 

 

 

 

 

 

1,230 

 

 

1,230 

(Gain) loss on foreign currency transactions and other

 

 

(670)

 

 

 

 

(466)

 

 

(6)

 

 

(1,142)

Loss on disposition of fixed assets

 

 

 

 

 

 

273 

 

 

 

 

281 

Preopening expenses

 

 

345 

 

 

 

 

 

 

 

 

345 

Other one-time (income) costs

 

 

 

 

 

 

 

 

(3,365)

 

 

(3,365)

Adjusted EBITDA

 

$

11,697 

 

$

5,330 

 

$

5,411 

 

$

(4,146)

 

$

18,292 

 

 

 

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CENTURY CASINOS, INC. AND SUBSIDIARIES

SUPPLEMENTAL INFORMATION

 

Century Casinos, Inc.

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

For the nine months ended September 30, 2014

 

Amounts in thousands

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Nine Months Ended September 30, 2014

 

 

Canada

 

United States

 

Poland

 

Corporate and Other

 

 

Total

Net earnings (loss)

 

$

4,458 

 

$

1,103 

 

$

(561)

 

$

(3,538)

 

$

1,462 

Interest expense (income), net

 

 

1,798 

 

 

 

 

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 interest

 

 

(1,592)

 

 

 

 

(279)

 

 

 

 

(1,871)

Non-cash stock-based compensation

 

 

 

 

 

 

 

 

57 

 

 

57 

(Gain) loss on foreign currency transactions and other

 

 

(69)

 

 

 

 

(320)

 

 

14 

 

 

(375)

Loss on disposition of fixed assets

 

 

 

 

 

 

784 

 

 

 

 

788 

Other one-time (income) costs

 

 

(103)

 

 

 

 

224 

 

 

 

 

121 

Adjusted EBITDA

 

$

7,324 

 

$

3,555 

 

$

2,014 

 

$

(4,087)

 

$

8,806 

 

 

 

*  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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CENTURY CASINOS, INC. AND SUBSIDIARIES

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 the Company’s casino operations.

 

About Century Casinos, Inc.:

Century Casinos, Inc. is an international casino entertainment 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 holds 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 eleven ship-based casinos onboard 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 Hilton Aruba Caribbean Resort and Casino. 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, Argentina.  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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CENTURY CASINOS, INC. AND SUBSIDIARIES

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, synergies and operational performance, the prospects for projects in development, 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, 2014 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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