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Segment Information
 9 Months Ended
Sep. 30, 2016
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 agreements 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!

Canada

Century Casino St. Albert

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, 2016 and 2015:







 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



For the Three Months Ended September 30, 2016

Amounts in thousands

 

Canada

 

United States

 

Poland

 

Corporate and Other

 

Total

Net operating revenue (1)

 

$

 12,005 

 

$

 8,188 

 

$

 13,356 

 

$

 977 

 

$

 34,526 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

$

 1,467 

 

$

 1,000 

 

$

 684 

 

$

 (1,264)

 

$

 1,887 

Interest expense (income), net

 

 

 655 

 

 

 0 

 

 

 (1)

 

 

 (5)

 

 

 649 

Income taxes (benefit)

 

 

 365 

 

 

 614 

 

 

 319 

 

 

 (505)

 

 

 793 

Depreciation and amortization

 

 

 775 

 

 

 624 

 

 

 629 

 

 

 105 

 

 

 2,133 

Non-controlling interest

 

 

 183 

 

 

 0 

 

 

 343 

 

 

 0 

 

 

 526 

Non-cash stock-based compensation

 

 

 0 

 

 

 0 

 

 

 0 

 

 

 192 

 

 

 192 

(Gain) loss on foreign currency transactions and other

 

 

 (71)

 

 

 0 

 

 

 48 

 

 

 3 

 

 

 (20)

Loss on disposition of fixed assets

 

 

 5 

 

 

 0 

 

 

 0 

 

 

 0 

 

 

 5 

Acquisition costs

 

 

 0 

 

 

 0 

 

 

 0 

 

 

 106 

 

 

 106 

Adjusted EBITDA

 

$

 3,379 

 

$

 2,238 

 

$

 2,022 

 

$

 (1,368)

 

$

 6,271 



(1)

Net operating revenue for Corporate and Other primarily relates to the Company’s cruise ship operations.









 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



For the Three Months Ended September 30, 2015

Amounts in thousands

 

Canada

 

United States

 

Poland

 

Corporate and Other

 

Total

Net operating revenue (1)

 

$

 12,198 

 

$

 7,958 

 

$

 12,449 

 

$

 921 

 

$

 33,526 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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 interest

 

 

 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 

Adjusted EBITDA

 

$

 3,902 

 

$

 2,140 

 

$

 1,771 

 

$

 (1,094)

 

$

 6,719 



(1)

Net operating revenue for Corporate and Other primarily relates to the Company’s cruise ship operations.







 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



For the Nine Months Ended September 30, 2016

Amounts in thousands

 

Canada

 

United States

 

Poland

 

Corporate and Other

 

Total

Net operating revenue (1)

 

$

 37,470 

 

$

 22,970 

 

$

 39,190 

 

$

 2,627 

 

$

 102,257 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

$

 5,076 

 

$

 2,378 

 

$

 2,029 

 

$

 (3,453)

 

$

 6,030 

Interest expense (income), net

 

 

 2,189 

 

 

 0 

 

 

 22 

 

 

 (13)

 

 

 2,198 

Income taxes (benefit)

 

 

 1,477 

 

 

 1,460 

 

 

 936 

 

 

 (1,495)

 

 

 2,378 

Depreciation and amortization

 

 

 2,246 

 

 

 1,875 

 

 

 1,863 

 

 

 276 

 

 

 6,260 

Non-controlling interest

 

 

 1,918 

 

 

 0 

 

 

 1,015 

 

 

 0 

 

 

 2,933 

Non-cash stock-based compensation

 

 

 0 

 

 

 0 

 

 

 0 

 

 

 573 

 

 

 573 

(Gain) loss on foreign currency transactions and other

 

 

 (1,616)

 

 

 0 

 

 

 (174)

 

 

 12 

 

 

 (1,778)

Loss on disposition of fixed assets

 

 

 26 

 

 

 3 

 

 

 13 

 

 

 0 

 

 

 42 

Acquisition costs

 

 

 0 

 

 

 0 

 

 

 0 

 

 

 106 

 

 

 106 

Adjusted EBITDA

 

$

 11,316 

 

$

 5,716 

 

$

 5,704 

 

$

 (3,994)

 

$

 18,742 





(1)

Net operating revenue for Corporate and Other primarily relates to the Company’s cruise ship operations.









 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



For the Nine Months Ended September 30, 2015

Amounts in thousands

 

Canada

 

United States

 

Poland

 

Corporate and Other

 

 

Total

Net operating revenue (1)

 

$

 33,951 

 

$

 21,960 

 

$

 38,858 

 

$

 7,034 

 

$

 101,803 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net earnings 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 interest

 

 

 143 

 

 

 0 

 

 

 942 

 

 

 0 

 

 

 1,085 

Non-cash stock-based compensation

 

 

 0 

 

 

 0 

 

 

 0 

 

 

 1,230 

 

 

 1,230 

Gain 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  (2)

 

 

 0 

 

 

 0 

 

 

 0 

 

 

 (3,365)

 

 

 (3,365)

Adjusted EBITDA

 

$

 11,697 

 

$

 5,330 

 

$

 5,411 

 

$

 (4,146)

 

$

 18,292 





(1)

Net operating revenue for Corporate and Other primarily relates to the Company’s cruise ship operations.

(2)

Other one-time income for Corporate and Other relates to the $3.4 million consideration for the Termination Agreement with Norwegian.