11.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 added Century Mile Racetrack and Casino to its operating segments based on the characteristics that the property will have once operational. The Company’s operations related to Century Casino Bath, its 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. The Company concluded that CCB did not meet the materiality threshold to create a separate reportable segment as of June 30, 2018. The Company will continue to evaluate CCB for this purpose. 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
Canada	Century Mile Racetrack and Casino
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	Century Casino Bath
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 the 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 months ended June 30, 2018
Amounts in thousands		Canada		United States		Poland		Corporate and Other		Total
Net operating revenue (1)		$	15,331	$	8,476	$	14,567	$	1,274	$	39,648

Earnings (loss) before income taxes		$	2,830	$	1,548	$	(1,375)	$	(2,892)	$	111

Net earnings (loss) attributable to Century Casinos, Inc. shareholders		$	1,947	$	1,151	$	(776)	$	(2,005)	$	317
Interest expense (income), net			1,020		—		36		19		1,075
Income taxes (benefit)			684		397		(210)		(857)		14
Depreciation and amortization			798		546		673		153		2,170
Net earnings (loss) attributable to non-controlling interests			199		—		(389)		(30)		(220)
Non-cash stock-based compensation			—		—		—		232		232
Gain on foreign currency transactions and cost recovery income			(65)		—		(12)		(113)		(190)
Loss (Gain) on disposition of fixed assets			1		(3)		831		—		829
Pre-opening expenses			408		—		—		26		434
Adjusted EBITDA		$	4,992	$	2,091	$	153	$	(2,575)	$	4,661

(1)

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


	For the three months ended June 30, 2017
Amounts in thousands		Canada		United States		Poland		Corporate and Other		Total
Net operating revenue (1)		$	14,040	$	7,943	$	14,287	$	1,060	$	37,330

Earnings (loss) before income taxes		$	2,767	$	1,346	$	851	$	(1,930)	$	3,034

Net earnings (loss) attributable to Century Casinos, Inc. shareholders		$	1,823	$	836	$	435	$	(1,292)	$	1,802
Interest expense (income), net			867		—		29		(8)		888
Income taxes (benefit)			794		510		198		(638)		864
Depreciation and amortization			845		618		472		83		2,018
Net earnings attributable to non-controlling interests			150		—		218		—		368
Non-cash stock-based compensation			—		—		—		126		126
Loss (gain) on foreign currency transactions and cost recovery income			13		—		(244)		(50)		(281)
Loss on disposition of fixed assets			10		—		241		—		251
Acquisition costs			—		—		—		151		151
Pre-opening expenses			—		—		225		—		225
Adjusted EBITDA		$	4,502	$	1,964	$	1,574	$	(1,628)	$	6,412

(1)

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


	For the six months ended June 30, 2018
Amounts in thousands		Canada		United States		Poland		Corporate and Other		Total
Net operating revenue (1)		$	30,004	$	16,183	$	31,949	$	2,134	$	80,270

Earnings (loss) before income taxes		$	5,519	$	2,724	$	(258)	$	(5,574)	$	2,411

Net earnings (loss) attributable to Century Casinos, Inc. shareholders		$	3,972	$	2,025	$	(246)	$	(4,507)	$	1,244
Interest expense (income), net			1,959		—		110		18		2,087
Income taxes (benefit)			1,219		699		112		(1,037)		993
Depreciation and amortization			1,670		1,086		1,322		245		4,323
Net earnings (loss) attributable to non-controlling interests			328		—		(124)		(30)		174
Non-cash stock-based compensation			—		—		—		347		347
(Gain) loss on foreign currency transactions and cost recovery income			(138)		—		(181)		70		(249)
Loss on disposition of fixed assets			3		1		858		1		863
Pre-opening expenses			689		—		405		350		1,444
Adjusted EBITDA		$	9,702	$	3,811	$	2,256	$	(4,543)	$	11,226

(1)

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


	For the six months ended June 30, 2017
Amounts in thousands		Canada		United States		Poland		Corporate and Other			Total
Net operating revenue (1)		$	27,202	$	15,443	$	28,833	$	2,251	$	73,729

Earnings (loss) before income taxes		$	4,878	$	2,504	$	2,890	$	(3,443)	$	6,829

Net earnings (loss) attributable to Century Casinos, Inc. shareholders		$	3,306	$	1,553	$	1,518	$	(2,415)	$	3,962
Interest expense (income), net			1,785		—		16		(12)		1,789
Income taxes (benefit)			1,324		951		612		(1,028)		1,859
Depreciation and amortization			1,648		1,228		1,044		183		4,103
Net earnings attributable to non-controlling interests			248		—		760		—		1,008
Non-cash stock-based compensation			—		—		—		235		235
Loss (gain) on foreign currency transactions and cost recovery income			31		—		(464)		(52)		(485)
Loss on disposition of fixed assets			11		—		241		3		255
Acquisition costs			28		—		—		152		180
Pre-opening expenses			—		—		225		—		225
Adjusted EBITDA		$	8,381	$	3,732	$	3,952	$	(2,934)	$	13,131

(1)

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