EX-99.1 2 c147-20160311ex991f2a420.htm EX-99.1

March 11, 2016

PRESS RELEASE

Century Casinos, Inc. Announces Fourth Quarter 201 5 Results

Colorado Springs, Colorado – March 11, 2016 – Century Casinos, Inc. (NASDAQ Capital Market®: CNTY) today announced its financial results for the three months and year ended December 31, 2015.

2015 Highlights*

| · |  | Net operating revenue was $134.4 million, a 12% increase from the year ended December 31, 2014.

| · |  | Adjusted EBITDA** was $23.5 million, an 83% increase from the year ended December 31, 2014.

| · |  | Net earnings attributable to Century Casinos, Inc. shareholders were $11.9 million, an 867% increase from the year ended December 31, 2014.

| · |  | Earnings per share were $0.49.

| · |  | Book value per share*** at December 31, 2015 was $5.01.

Fourth Quarter 201 5 Highlights*

| · |  | Net operating revenue was $32.6 million, a 4% in crease from the three months ended December 31, 2014.

| · |  | Adjusted EBITDA** was $5.2 million, a 31% in crease from the three months ended December 31, 2014.

| · |  | Net earnings attributable to Century Casinos, Inc. shareholders were $0.7 million, a 421% in crease from the three months ended December 31, 2014.

| · |  | Earnings per share were $0.03.

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”). CDR opened its casino on April 1, 2015 and held its first horse race on April 25, 2015. CBS began operating the pari-mutuel off-track betting network in s outhern Alberta on May 4, 2015. The Company owns 75% of each of CDR and 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.

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Amounts in thousands, except per share data | For the Three Months Ended December 31, | For the Year Ended December 31,
Consolidated Results: |  |  | 2015 |  |  | 2014 |  |  | % Change |  |  | 2015 |  |  | 2014 |  |  | % Change
Net operating revenue |  | $ | 32,627 |  | $ | 31,259 |  |  | 4% |  | $ | 134,431 |  | $ | 120,048 |  |  | 12%
Earnings from operations |  |  | 2,472 |  |  | 639 |  |  | 287% |  |  | 16,493 |  |  | 2,657 |  |  | 521%
Net earnings (loss) attributable to Century Casinos, Inc. shareholders |  |  | 739 |  |  | (230) |  |  | 421% |  |  | 11,907 |  |  | 1,232 |  |  | 866%
Adjusted EBITDA** |  | $ | 5,203 |  | $ | 3,975 |  |  | 31% |  | $ | 23,495 |  | $ | 12,850 |  |  | 83%
Earnings per share: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Basic |  | $ | 0.03 |  | $ | (0.01) |  |  | 400% |  | $ | 0.49 |  | $ | 0.05 |  |  | 880%
Diluted |  | $ | 0.03 |  | $ | (0.01) |  |  | 400% |  | $ | 0.49 |  | $ | 0.05 |  |  | 880%
Weighted average common shares: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Basic |  |  | 24,425 |  |  | 24,381 |  |  |  |  |  | 24,429 |  |  | 24,381 |  |  |
Diluted |  |  | 24,639 |  |  | 24,417 |  |  |  |  |  | 24,469 |  |  | 24,419 |  |  |

“Our company had an exceptional 2015, as all of our properties increased both net operating revenue and A djusted EBITDA year-over-year, in local currency. Casinos Poland more than doubled its A djusted EBITDA and grew its Adjusted EBITDA margin from 7.3 percent to 13.5 percent. Century Downs and Century Bets successfully opened for business in the second quarter and have contributed significantly to our top and bottom lines every quarter since,” Erwin Haitzmann and Peter Hoetzinger, Co Chief Executive Officers of Century Casinos, said. “Our balance sheet is in great shape, as net debt decreased from $13.2 million at the end of 2014 to $7.2 million at the end of 2015,” 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 Months and Year Ended December 31, 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 $1.4 million, or 4%, and $14.4 million, or 12%, for the three months and year ended December 31, 2015 compared to the three months and year ended December 31, 2014. Following is a summary of the change s in net operating revenue by segment for the three months and year ended December 31, 2015 compared to the three months and year ended December 31, 2014:

| Net Operating Revenue
| For the Three Months | For the Year
| Ended December 31, | Ended December 31,
| 2015/2014 | 2015/2014
Amounts in millions |  |  | Change |  |  | % Change |  |  | Change |  |  | % Change
Canada |  | $ | 2.9 |  |  | 32% |  | $ | 11.3 |  |  | 33%
United States |  |  | 0.2 |  |  | 4% |  |  | 1.7 |  |  | 7%
Poland |  |  | (0.8) |  |  | (5%) |  |  | 1.0 |  |  | 2%
Corporate and Other |  |  | (1.0) |  |  | (54%) |  |  | 0.3 |  |  | 4%
Total |  | $ | 1.4 |  |  | 4% |  | $ | 14.4 |  |  | 12%

*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 $1.8 million, or 287%, and $13.8 million, or 521%, for the three months and year ended December 31, 2015 compared to the three months and year ended December 31, 2014. Following is a summary of the changes in e arnings from operations by segment for the three months and year ended December 31, 2015 compared to the three months and year ended December 31, 2014:

| Earnings from Operations
| For the Three Months | For the Year
| Ended December 31, | Ended December 31,
| 2015/2014 | 2015/2014
Amounts in millions |  |  | Change |  |  | % Change |  |  | Change |  |  | % Change
Canada |  | $ | 0.4 |  |  | 17% |  | $ | 4.1 |  |  | 49%
United States |  |  | 0.1 |  |  | 45% |  |  | 1.8 |  |  | 86%
Poland |  |  | 0.0 |  |  | (2%) |  |  | 4.3 |  |  | 2642%
Corporate and Other |  |  | 1.3 |  |  | 43% |  |  | 3.6 |  |  | 47%
Total |  | $ | 1.8 |  |  | 287% |  | $ | 13.8 |  |  | 521%

Net earnings (loss) attributable to Century Casinos, Inc. shareholders in creased by $1.0 million, or 421%, and $10.7 million, or 867%, for the three months and year ended December 31, 2015 compared to the three months and year ended December 31, 2014. Following is a summary of the change s in net earnings (loss) attributable to Century Casinos, Inc. shareholders by segment for the three months and year ended December 31, 2015 compared to the three months and year ended December 31, 2014:

| Net Earnings (Loss) Attributable to Century Casinos, Inc. Shareholders
| For the Three Months | For the Year
| Ended December 31, | Ended December 31,
| 2015/2014 | 2015/2014
Amounts in millions |  |  | Change |  |  | % Change |  |  | Change |  |  | % Change
Canada |  | $ | (0.5) |  |  | (26%) |  | $ | 1.4 |  |  | 21%
United States |  |  | 0.1 |  |  | 44% |  |  | 1.1 |  |  | 86%
Poland |  |  | 0.6 |  |  | 125% |  |  | 3.0 |  |  | 2688%
Corporate and Other |  |  | 0.8 |  |  | 29% |  |  | 5.2 |  |  | 81%
Total |  | $ | 1.0 |  |  | 421% |  | $ | 10.7 |  |  | 867%

Items deducted from or added to earnings from operations to arrive at net earnings (loss) 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.

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*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** |  |  |
|  | For the Three Months |  |  |  | For the Three Months |  |
|  | Ended December 31, |  |  |  |  | Ended December 31, |  |
|  | 2015 |  | 2014 |  | % Change |  | 2015 |  | 2014 |  | % Change
Canada |  | $ | 11,950 |  | $ | 9,068 |  |  | 32% |  | $ | 3,688 |  | $ | 2,917 |  |  | 26%
United States |  |  | 6,478 |  |  | 6,251 |  |  | 4% |  |  | 1,073 |  |  | 973 |  |  | 10%
Poland |  |  | 13,348 |  |  | 14,103 |  |  | (5%) |  |  | 1,667 |  |  | 1,781 |  |  | (6%)
Corporate and Other |  |  | 851 |  |  | 1,837 |  |  | (54%) |  |  | (1,225) |  |  | (1,696) |  |  | 28%
Consolidated |  | $ | 32,627 |  | $ | 31,259 |  |  | 4% |  | $ | 5,203 |  | $ | 3,975 |  |  | 31%
|  | Net Operating Revenue |  |  |  |  | Adjusted EBITDA** |  |  |
|  | For the Year |  |  |  | For the Year |  |
|  | Ended December 31, |  |  |  |  | Ended December 31, |  |
|  | 2015 |  | 2014 |  | % Change |  | 2015 |  | 2014 |  | % Change
Canada |  | $ | 45,900 |  | $ | 34,599 |  |  | 33% |  | $ | 15,384 |  | $ | 10,354 |  |  | 49%
United States |  |  | 28,438 |  |  | 26,707 |  |  | 7% |  |  | 6,401 |  |  | 4,528 |  |  | 41%
Poland |  |  | 52,208 |  |  | 51,191 |  |  | 2% |  |  | 7,080 |  |  | 3,683 |  |  | 92%
Corporate and Other |  |  | 7,885 |  |  | 7,551 |  |  | 4% |  |  | (5,370) |  |  | (5,715) |  |  | 6%
Consolidated |  | $ | 134,431 |  | $ | 120,048 |  |  | 12% |  | $ | 23,495 |  | $ | 12,850 |  |  | 83%

*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 December 31, 2015, the Company had $2 9.4 million in cas h and cash e quivalents and $36.5 million in outstanding debt on its balance sheet compared to $24.7 million in cash and cash equivalents and $37.8 million in outstanding debt at December 3 1, 201 4. The $3 6.5 million in outstanding debt as of December 31, 2015 includes $20.4 million related to the Company’s Bank of Montreal credit agreement, $1.7 million related to C asinos Poland, Ltd. and $14.7 million related to a long-term land lease and capital leases of CDR, net of $0.3 million in deferred financing costs.

The Company adopted Accounting Standard Update No. 2015-03, Simplifying the Presentation of Debt Issuance Costs, and, as a result, $0.4 million was reclassified from long-term assets to long-term debt in the Company’s consolidated balance sheet for the year ended December 31, 2014.

Conference Call Information

Today the Company will post a copy of its annual report on Form 10-K filed with the SEC for the year ended December 31, 2015 on its website at http://corporate.cnty.com/investor-relations/sec-filings. The Company will also post a presentation on the fourth quarter results on its website at http://corporate.cnty.com/investor-relations/presentations-and-interviews.

Century Casinos will host its fourth quarter 201 5 earning s conference call today at 8:00 am M S T; 4:00 pm CET, 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 March 3 1, 201 6 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.

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(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 December 31, | For the Year Ended December 31,
Amounts in thousands, except for per share information |  | 2015 |  | 2014 |  | 2015 |  | 2014
Operating revenue: |  |  |  |  |  |  |  |  |  |  |  |
Net operating revenue |  | $ | 32,627 |  | $ | 31,259 |  | $ | 134,431 |  | $ | 120,048
Operating costs and expenses: |  |  |  |  |  |  |  |  |  |  |  |
Total operating costs and expenses |  |  | 30,155 |  |  | 30,620 |  |  | 117,938 |  |  | 117,391
Earnings from operations |  |  | 2,472 |  |  | 639 |  |  | 16,493 |  |  | 2,657
Non-operating income (expense): |  |  |  |  |  |  |  |  |  |  |  |
Interest income |  |  | 17 |  |  | 9 |  |  | 38 |  |  | 81
Interest expense |  |  | (786) |  |  | (748) |  |  | (3,315) |  |  | (2,837)
Gain on foreign currency transactions and other |  |  | 984 |  |  | 142 |  |  | 2,126 |  |  | 517
Non-operating income (expense), net |  |  | 215 |  |  | (597) |  |  | (1,151) |  |  | (2,239)
Earnings before income taxes |  |  | 2,687 |  |  | 42 |  |  | 15,342 |  |  | 418
Income tax provision |  |  | 1,433 |  |  | 721 |  |  | 1,835 |  |  | 1,507
Net earnings (loss) |  |  | 1,254 |  |  | (679) |  |  | 13,507 |  |  | (1,089)
Net (earnings) loss attributable to non-controlling interest |  |  | (515) |  |  | 449 |  |  | (1,600) |  |  | 2,321
Net earnings (loss) attributable to Century Casinos, Inc. shareholders |  | $ | 739 |  | $ | (230) |  | $ | 11,907 |  | $ | 1,232
Earnings (loss) per share attributable to Century Casinos, Inc.: |  |  |  |  |  |  |  |  |  |  |  |
Basic |  | $ | 0.03 |  | $ | (0.01) |  | $ | 0.49 |  | $ | 0.05
Diluted |  | $ | 0.03 |  | $ | (0.01) |  | $ | 0.49 |  | $ | 0.05

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CENTURY CASINOS, INC. AND SUBSIDIARIES

FINANCIAL INFORMATION – US GAAP BASIS

Century Casinos, Inc. |  |  |  |  |  |
Condensed Consolidated Balance Sheets |  |  |  |  |  |
(Amounts in thousands) |  |  |  |  |  |
|  | December 31, |  | December 31,
|  | 2015 |  | 2014
Assets |  |  |  |  |  |
Current assets |  | $ | 34,540 |  | $ | 30,163
Property and equipment, net |  |  | 131,582 |  |  | 134,627
Other assets |  |  | 20,961 |  |  | 22,322
Total assets |  | $ | 187,083 |  | $ | 187,112
Liabilities and Equity |  |  |  |  |  |
Current liabilities |  | $ | 23,300 |  | $ | 28,128
Non-current liabilities |  |  | 36,508 |  |  | 36,558
Century Casinos, Inc. shareholders' equity |  |  | 122,416 |  |  | 118,428
Non-controlling interest |  |  | 4,859 |  |  | 3,998
Total liabilities and equity |  | $ | 187,083 |  | $ | 187,112

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CENTURY CASINOS, INC. AND SUBSIDIARIES

SUPPLEMENTAL INFORMATION

Century Casinos, Inc.

Constant Currency Results* (unaudited)

|  | For the three months ended |  |  |  | For the year ended |  |  |
|  | December 31, |  |  |  | December 31, |  |  |
|  |  | 2015 |  |  | 2014 |  | % Change |  |  | 2015 |  |  | 2014 |  | % Change |
Net Operating Revenue as reported (GAAP) |  | $ | 32,627 |  | $ | 31,259 |  | 4% |  | $ | 134,431 |  | $ | 120,048 |  | 12% |
Unfavorable foreign currency impact vs. 2014 |  |  | 4,108 |  |  |  |  |  |  |  | 11,814 |  |  |  |  |  |
Net Operating Revenue constant currency (non-GAAP)* |  | $ | 36,735 |  | $ | 31,259 |  | 18% |  | $ | 146,245 |  | $ | 120,048 |  | 22% |
Adjusted EBITDA as reported*** |  | $ | 5,203 |  | $ | 3,975 |  | 31% |  | $ | 23,495 |  | $ | 12,850 |  | 83% |
Unfavorable foreign currency impact vs. 2014 |  |  | 885 |  |  |  |  |  |  |  | 2,689 |  |  |  |  |  |
Adjusted EBITDA constant currency (non-GAAP)* |  | $ | 6,088 |  | $ | 3,975 |  | 53% |  | $ | 26,184 |  | $ | 12,850 |  | 104% |

Century Casinos, Inc.

Adjusted EBITDA Margins ** by Segment (unaudited)

| For the Three Months | For the Year
| Ended December 31, | Ended December 31,
| 2015 | 2014 | 2015 | 2014
Canada | 31% | 32% | 34% | 30%
United States | 17% | 16% | 23% | 17%
Poland | 12% | 13% | 14% | 7%
Corporate and Other | (144%) | (92%) | (68%) | (76%)
Consolidated Adjusted EBITDA Margin | 16% | 13% | 17% | 11%

10/14

CENTURY CASINOS, INC. AND SUBSIDIARIES

SUPPLEMENTAL INFORMATION

Century Casinos, Inc.

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

Amounts i n thousands

| For the Three Months Ended December 31, 2015
|  | Canada |  | United States |  | Poland |  | Corporate and Other |  | Total
Net earnings (loss) |  | $ | 1,483 |  | $ | 260 |  | $ | 1,012 |  | $ | (2,016) |  | $ | 739
Interest expense (income), net |  |  | 753 |  |  | 0 |  |  | 20 |  |  | (4) |  |  | 769
Income taxes |  |  | 613 |  |  | 159 |  |  | 393 |  |  | 268 |  |  | 1,433
Depreciation and amortization |  |  | 837 |  |  | 654 |  |  | 646 |  |  | 82 |  |  | 2,219
Non-controlling interest |  |  | 9 |  |  | 0 |  |  | 506 |  |  | 0 |  |  | 515
Non-cash stock-based compensation |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 411 |  |  | 411
(Gain) loss on foreign currency transactions and other |  |  | (14) |  |  | 0 |  |  | (117) |  |  | 8 |  |  | (123)
Loss on disposition of fixed assets |  |  | 7 |  |  | 0 |  |  | 68 |  |  | 26 |  |  | 101
Other one-time income |  |  | 0 |  |  | 0 |  |  | (861) |  |  | 0 |  |  | (861)
Adjusted EBITDA |  | $ | 3,688 |  | $ | 1,073 |  | $ | 1,667 |  | $ | (1,225) |  | $ | 5,203

Century Casinos, Inc.

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

Amounts i n thousands

| For the Three Months Ended December 31, 2014
|  | Canada |  | United States |  | Poland |  | Corporate and Other |  | Total
Net earnings (loss) |  | $ | 1,991 |  | $ | 180 |  | $ | 450 |  | $ | (2,851) |  | $ | (230)
Interest expense (income), net |  |  | 676 |  |  | 0 |  |  | 68 |  |  | (5) |  |  | 739
Income taxes (benefit) |  |  | 571 |  |  | 110 |  |  | 251 |  |  | (211) |  |  | 721
Depreciation and amortization |  |  | 477 |  |  | 644 |  |  | 697 |  |  | 196 |  |  | 2,014
Non-controlling interest |  |  | (675) |  |  | 0 |  |  | 226 |  |  | 0 |  |  | (449)
Non-cash stock-based compensation |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 972 |  |  | 972
(Gain) loss on foreign currency transactions and other |  |  | (125) |  |  | 0 |  |  | (22) |  |  | 5 |  |  | (142)
Loss on disposition of fixed assets |  |  | 2 |  |  | 39 |  |  | 0 |  |  | 0 |  |  | 41
Acquisition costs |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 198 |  |  | 198
Other one-time expenses |  |  | 0 |  |  | 0 |  |  | 111 |  |  | 0 |  |  | 111
Adjusted EBITDA |  | $ | 2,917 |  | $ | 973 |  | $ | 1,781 |  | $ | (1,696) |  | $ | 3,975

11/14

CENTURY CASINOS, INC. AND SUBSIDIARIES

SUPPLEMENTAL INFORMATION

Century Casinos, Inc.

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

Amounts i n thousands

| For the Year Ended December 31, 2015
|  | Canada |  | United States |  | Poland |  | Corporate and Other |  | Total
Net earnings (loss) |  | $ | 7,819 |  | $ | 2,381 |  | $ | 2,899 |  | $ | (1,192) |  | $ | 11,907
Interest expense (income), net |  |  | 3,160 |  |  | 1 |  |  | 129 |  |  | (13) |  |  | 3,277
Income taxes (benefit) |  |  | 2,110 |  |  | 1,461 |  |  | 1,136 |  |  | (2,872) |  |  | 1,835
Depreciation and amortization |  |  | 2,472 |  |  | 2,558 |  |  | 2,571 |  |  | 398 |  |  | 7,999
Non-controlling interest |  |  | 152 |  |  | 0 |  |  | 1,448 |  |  | 0 |  |  | 1,600
Non-cash stock-based compensation |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 1,641 |  |  | 1,641
(Gain) loss on foreign currency transactions and other |  |  | (685) |  |  | 0 |  |  | (1,444) |  |  | 3 |  |  | (2,126)
Loss on disposition of fixed assets |  |  | 11 |  |  | 0 |  |  | 341 |  |  | 30 |  |  | 382
Preopening expenses |  |  | 345 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 345
Other one-time income |  |  | 0 |  |  | 0 |  |  | 0 |  |  | (3,365) |  |  | (3,365)
Adjusted EBITDA |  | $ | 15,384 |  | $ | 6,401 |  | $ | 7,080 |  | $ | (5,370) |  | $ | 23,495

Century Casinos, Inc.

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

Amounts i n thousands

| For the Year Ended December 31, 2014
|  | Canada |  | United States |  | Poland |  | Corporate and Other |  |  | Total
Net earnings (loss) |  | $ | 6,446 |  | $ | 1,283 |  | $ | (112) |  | $ | (6,385) |  | $ | 1,232
Interest expense (income), net |  |  | 2,473 |  |  | 1 |  |  | 319 |  |  | (37) |  |  | 2,756
Income taxes (benefit) |  |  | 1,971 |  |  | 786 |  |  | 25 |  |  | (1,275) |  |  | 1,507
Depreciation and amortization |  |  | 1,910 |  |  | 2,419 |  |  | 2,839 |  |  | 667 |  |  | 7,835
Non-controlling interest |  |  | (2,267) |  |  | 0 |  |  | (54) |  |  | 0 |  |  | (2,321)
Non-cash stock-based compensation |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 1,028 |  |  | 1,028
(Gain) loss on foreign currency transactions and other |  |  | (193) |  |  | 0 |  |  | (342) |  |  | 18 |  |  | (517)
Loss on disposition of fixed assets |  |  | 2 |  |  | 39 |  |  | 587 |  |  | 3 |  |  | 631
Acquisition costs |  |  | 115 |  |  | 0 |  |  | 0 |  |  | 266 |  |  | 381
Other one-time (income) costs |  |  | (103) |  |  | 0 |  |  | 421 |  |  | 0 |  |  | 318
Adjusted EBITDA |  | $ | 10,354 |  | $ | 4,528 |  | $ | 3,683 |  | $ | (5,715) |  | $ | 12,850

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CENTURY CASINOS, INC. AND SUBSIDIARIES

SUPPLEMENTAL INFORMATION

* The impact of foreign exchange rates is highly variable and difficult to predict. The Company uses a Constant Currency basis to show the impact from foreign exchange rates on current period revenue compared to prior period revenue using the prior period’s foreign exchange rates. In order to properly understand the underlying business trends and performance of the Company’s ongoing operations, management believes that investors may find it useful to consider the impact of excluding changes in foreign exchange rates from the Company’s net operating revenue and Adjusted EBITDA***.

** 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.

*** 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 such as the consideration for the early termination of the concession agreements with Oceania Cruises and Regent Seven Seas Cruises. 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

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 hold s 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 s outhern Alberta, Canada in May 2015. The Company operates ten ship-based casinos on board ships of the foll owing cruise lines: TUI Cruises and Windstar Cruises. 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 Casino de Mendoza in Mendoza, Argentin a. The Company continues to pursue other international projects in various stages of development.

Century Casinos’ common stock trades on The NASDAQ Capital Market® under the symbol CNTY.

For more information about Century Casinos, visit our website at www.cnty.com.

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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, synerg ies 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, 2015. 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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