EX-99.1 2 cnty-20180807xex99_1.htm EX-99.1

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August 8, 2018

PRESS RELEASE

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Century Casinos, Inc. Announces Second Quarter 2018 Results

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Colorado Springs, Colorado – August 8, 2018 – Century Casinos, Inc. (N asdaq Capital Market®: CNTY) today announced its financial results for the three and six months ended June 30, 2018.

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Second Quarter 201 8 Highlights*

| · |  | Net operating revenue was $39.6 million, an increase of 6% from the three months ended June 30, 2017.

| · |  | Earnings from operations were $1.0 million, a decrease of 73% from the three months ended June 30, 2017.

| · |  | Net earnings attributable to Century Casinos, Inc. shareholders was $0.3 million, a decrease of 82% from the three months ended June 30, 2017.

| · |  | Adjusted EBITDA** was $4.7 million, a decrease of 27% from the three months ended June 30, 2017.

| · |  | Earnings per share were $0.01.

| · |  | Book value per share*** at June 30, 2018 was $6.02.

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The consolidated results for the three and six months ended June 30, 2018 and 2017 are as follows:

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﻿ |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
﻿ | For the three months |  |  | For the six months
Amounts in thousands, except per share data | ended June 30, |  |  | ended June 30,
Consolidated Results: |  |  | 2018 |  |  | 2017 |  | % Change |  |  | 2018 |  |  | 2017 |  | % Change
Net Operating Revenue |  | $ | 39,648 |  | $ | 37,330 |  | 6% |  | $ | 80,270 |  | $ | 73,729 |  | 9%
Earnings from Operations |  |  | 996 |  |  | 3,641 |  | (73%) |  |  | 4,249 |  |  | 8,133 |  | (48%)
Net Earnings Attributable to Century Casinos, Inc. Shareholders |  | $ | 317 |  | $ | 1,802 |  | (82%) |  | $ | 1,244 |  | $ | 3,962 |  | (69%)
﻿ |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Adjusted EBITDA** |  | $ | 4,661 |  | $ | 6,412 |  | (27%) |  | $ | 11,226 |  | $ | 13,131 |  | (15%)
Earnings Per Share: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Basic and Diluted |  | $ | 0.01 |  | $ | 0.07 |  | (86%) |  | $ | 0.04 |  | $ | 0.16 |  | (75%)

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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, Inc. shareholders’ equity divided by outstanding common shares.

“This quarter represented an important period for the long-term success of the Company. We opened our casino in Bath, England in May; we laid the foundation of a land-based presence in Asia with our Vietnam project; and we are finally seeing stability in Poland where we now hold eight casino licenses,” Erwin Haitzmann and Peter Hoetzinger, Co-Chief Executive Officers of Century Casinos remarked. “We are pleased with the growth of net operating revenue driven by strong performances in Canada, which increased 5% in local currency, and Colorado, which increased 7%,” they continued. “Adjusted EBITDA was lower compared to prior year results due to additional non-recurring expense s related to the licensing situation in Poland and the opening of the casino in Bath”, Haitzmann and Hoetzinger concluded.

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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.

2/14

Reportable Segment R esults*

The table below shows the Company’s operating segments that are included in each of the Company’s reportable segments as of June 30, 2018:

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﻿ |
Reportable Segment | Operating Segment
Canada | Century Casino & Hotel - Edmonton
Canada | Century Casino St. Albert
Canada | Century Casino Calgary
Canada | Century Downs Racetrack and Casino
Canada | Century Bets!
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

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The Company’s net operating revenue increased by $2.3 million, or 6%, and by $6.5 million, or 9%, for the three and six months ended June 30, 2018, compared to the three and six months ended June 30, 2017. Following is a summary of the change s in net operating revenue by reportable segment for the three and six months ended June 30, 2018, compared to the three and six months ended June 30, 2017:

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﻿ |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
﻿ |  | Net Operating Revenue
﻿ |  | For the three months |  |  |  |  |  |  | For the six months |  |  |  |  |
﻿ |  | ended June 30, |  |  |  |  |  |  | ended June 30, |  |  |  |  |
Amounts in thousands |  | 2018 |  | 2017 |  | $ Change |  | % Change |  | 2018 |  | 2017 |  | $ Change |  | % Change
Canada |  | $ | 15,331 |  | $ | 14,040 |  | $ | 1,291 |  | 9% |  | $ | 30,004 |  | $ | 27,202 |  | $ | 2,802 |  | 10%
United States |  |  | 8,476 |  |  | 7,943 |  |  | 533 |  | 7% |  |  | 16,183 |  |  | 15,443 |  |  | 740 |  | 5%
Poland |  |  | 14,567 |  |  | 14,287 |  |  | 280 |  | 2% |  |  | 31,949 |  |  | 28,833 |  |  | 3,116 |  | 11%
Corporate and Other |  |  | 1,274 |  |  | 1,060 |  |  | 214 |  | 20% |  |  | 2,134 |  |  | 2,251 |  |  | (117) |  | (5%)
Consolidated |  | $ | 39,648 |  | $ | 37,330 |  | $ | 2,318 |  | 6% |  | $ | 80,270 |  | $ | 73,729 |  | $ | 6,541 |  | 9%

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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.

3/14

The Company’s earnings from operations decreased by ($2.6) million, or (73%), and by ($3.9) million, or (48%), for the three and six months ended June 30, 2018, compared to the three and six months ended June 30, 2017. Following is a summary of the changes in e arnings (loss) from operations by reportable segment for the three and six months ended June 30, 2018, compared to the three and six months ended June 30, 2017:

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﻿ |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
﻿ |  | Earnings (Loss) from Operations
﻿ |  | For the three months |  |  |  |  |  |  | For the six months |  |  |  |  |
﻿ |  | ended June 30, |  |  |  |  |  |  | ended June 30, |  |  |  |  |
Amounts in thousands |  | 2018 |  | 2017 |  | $ Change |  | % Change |  | 2018 |  | 2017 |  | $ Change |  | % Change
Canada |  | $ | 3,785 |  | $ | 3,647 |  | $ | 138 |  | 4% |  | $ | 7,340 |  | $ | 6,694 |  | $ | 646 |  | 10%
United States |  |  | 1,548 |  |  | 1,346 |  |  | 202 |  | 15% |  |  | 2,724 |  |  | 2,504 |  |  | 220 |  | 9%
Poland |  |  | (1,351) |  |  | 636 |  |  | (1,987) |  | (312%) |  |  | (329) |  |  | 2,442 |  |  | (2,771) |  | (114%)
Corporate and Other |  |  | (2,986) |  |  | (1,988) |  |  | (998) |  | (50%) |  |  | (5,486) |  |  | (3,507) |  |  | (1,979) |  | (56%)
Consolidated |  | $ | 996 |  | $ | 3,641 |  | $ | (2,645) |  | (73%) |  | $ | 4,249 |  | $ | 8,133 |  | $ | (3,884) |  | (48%)

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Net earnings attributable to Century Casinos, Inc. shareholders decreased by ($1.5) million, or (82%), and by ($2.7) million, or (69%), for the three and six months ended June 30, 2018, compared to the three and six months ended June 30, 2017. Following is a summary of the change s in net earnings (loss) attributable to Century Casinos, Inc. shareholders by reportable segment for the three and six months ended June 30, 2018, compared to the three and six months ended June 30, 2017:

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﻿ |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
﻿ |  | Net Earnings (Loss) Attributable to Century Casinos, Inc. Shareholders
﻿ |  | For the three months |  |  |  |  |  |  | For the six months |  |  |  |  |
﻿ |  | ended June 30, |  |  |  |  |  |  | ended June 30, |  |  |  |  |
Amounts in thousands |  | 2018 |  | 2017 |  | $ Change |  | % Change |  | 2018 |  | 2017 |  | $ Change |  | % Change
Canada |  | $ | 1,947 |  | $ | 1,823 |  | $ | 124 |  | 7% |  | $ | 3,972 |  | $ | 3,306 |  | $ | 666 |  | 20%
United States |  |  | 1,151 |  |  | 836 |  |  | 315 |  | 38% |  |  | 2,025 |  |  | 1,553 |  |  | 472 |  | 30%
Poland |  |  | (776) |  |  | 435 |  |  | (1,211) |  | (278%) |  |  | (246) |  |  | 1,518 |  |  | (1,764) |  | (116%)
Corporate and Other |  |  | (2,005) |  |  | (1,292) |  |  | (713) |  | (55%) |  |  | (4,507) |  |  | (2,415) |  |  | (2,092) |  | (87%)
Consolidated |  | $ | 317 |  | $ | 1,802 |  | $ | (1,485) |  | (82%) |  | $ | 1,244 |  | $ | 3,962 |  | $ | (2,718) |  | (69%)

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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.

4/14

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.

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The Company’s Adjusted EBITDA** decreased by ($1.8) million, or (27%), and by ($1.9) million, or (15%), for the three and six months ended June 30, 2018 compared to the three and six months ended June 30, 2017. F ollowing is a summary of the changes in Adjusted EBITDA** by reportable segment for the three and six months ended June 30, 2018 compared to the three and six months ended June 30, 2017:

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﻿ |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
﻿ |  | Adjusted EBITDA**
﻿ |  | For the three months |  |  |  |  |  |  | For the six months |  |  |  |  |
﻿ |  | ended June 30, |  |  |  |  |  |  | ended June 30, |  |  |  |  |
Amounts in thousands |  | 2018 |  | 2017 |  | $ Change |  | % Change |  | 2018 |  | 2017 |  | $ Change |  | % Change
Canada |  | $ | 4,992 |  | $ | 4,502 |  | $ | 490 |  | 11% |  | $ | 9,702 |  | $ | 8,381 |  | $ | 1,321 |  | 16%
United States |  |  | 2,091 |  |  | 1,964 |  |  | 127 |  | 7% |  |  | 3,811 |  |  | 3,732 |  |  | 79 |  | 2%
Poland |  |  | 153 |  |  | 1,574 |  |  | (1,421) |  | (90%) |  |  | 2,256 |  |  | 3,952 |  |  | (1,696) |  | (43%)
Corporate and Other |  |  | (2,575) |  |  | (1,628) |  |  | (947) |  | (58%) |  |  | (4,543) |  |  | (2,934) |  |  | (1,609) |  | (55%)
Consolidated |  | $ | 4,661 |  | $ | 6,412 |  | $ | (1,751) |  | (27%) |  | $ | 11,226 |  | $ | 13,131 |  | $ | (1,905) |  | (15%)

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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.

5/14

Balance Sheet and Liquidity

As of June 30, 2018, the Company had $54.4 million in cas h and cash e quivalents and $54.3 million in outstanding debt on its balance sheet compared to $74.7 million in cash and cash equivalents and $5 6.7 million in outstanding debt at December 3 1, 201 7. The outstanding debt as of June 30, 2018 include d $3 4.0 million related to the Company’s BM O C redit A greement, $2.8 million of bank debt related to Casinos Poland, $2.6 million of bank debt related to Century Casino Bath, $0.3 million related to capital lease s for Century Resorts Alberta, Century Casino Calgary, C entury Casino St. Albert, Century Downs Racetrack and Casino (“CDR”) and C entury M ile R acetrack and Casino, and $1 4.8 million related to a long-term land lease for CDR, net of $0.2 million in deferred financing costs.

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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, 2018 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.

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The Company will host its second q uarter 201 8 earning s conference call tomorrow, Thursday, August 9 th, 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 3 1, 201 8 at http://corporate.cnty.com/investor-relations/sec-filings.

6/14

(continued)

CENTURY CASINOS, INC. AND SUBSIDIARIES

FINANCIAL INFORMATION – US GAAP BASIS

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Condensed Consolidated Statements of Earnings

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﻿ |  |  |  |  |  |  |  |  |  |  |  |
| For the three months | For the six months
﻿ | ended June 30, | ended June 30,
Amounts in thousands, except for per share information |  | 2018 |  | 2017 |  | 2018 |  | 2017
Operating revenue: |  |  |  |  |  |  |  |  |  |  |  |
Net operating revenue |  | $ | 39,648 |  | $ | 37,330 |  | $ | 80,270 |  | $ | 73,729
Operating costs and expenses: |  |  |  |  |  |  |  |  |  |  |  |
Total operating costs and expenses |  |  | 38,651 |  |  | 33,689 |  |  | 76,020 |  |  | 65,596
Loss from equity investment |  |  | (1) |  |  | — |  |  | (1) |  |  | —
Earnings from operations |  |  | 996 |  |  | 3,641 |  |  | 4,249 |  |  | 8,133
Non-operating income (expense), net |  |  | (885) |  |  | (607) |  |  | (1,838) |  |  | (1,304)
Earnings before income taxes |  |  | 111 |  |  | 3,034 |  |  | 2,411 |  |  | 6,829
Income tax provision |  |  | (14) |  |  | (864) |  |  | (993) |  |  | (1,859)
Net earnings |  |  | 97 |  |  | 2,170 |  |  | 1,418 |  |  | 4,970
Net loss (earnings) attributable to non-controlling interests |  |  | 220 |  |  | (368) |  |  | (174) |  |  | (1,008)
Net earnings attributable to Century Casinos, Inc. shareholders |  | $ | 317 |  | $ | 1,802 |  | $ | 1,244 |  | $ | 3,962
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Earnings per share attributable to Century Casinos, Inc.: |  |  |  |  |  |  |  |  |  |  |  |
Basic |  | $ | 0.01 |  | $ | 0.07 |  | $ | 0.04 |  | $ | 0.16
Diluted |  | $ | 0.01 |  | $ | 0.07 |  | $ | 0.04 |  | $ | 0.16
﻿ |  |  |  |  |  |  |  |  |  |  |  |
Weighted average common shares |  |  |  |  |  |  |  |  |  |  |  |
Basic |  |  | 29,376 |  |  | 24,466 |  |  | 29,369 |  |  | 24,460
Diluted |  |  | 29,974 |  |  | 24,962 |  |  | 29,984 |  |  | 24,911

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7/14

CENTURY CASINOS, INC. AND SUBSIDIARIES

FINANCIAL INFORMATION – US GAAP BASIS

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﻿ |  |  |  |  |  |
Condensed Consolidated Balance Sheets |  |  |  |  |  |
(Amounts in thousands) |  |  |  |  |  |
﻿ |  | June 30, |  | December 31,
﻿ |  | 2018 |  | 2017
Assets |  |  |  |  |  |
Current assets |  | $ | 63,188 |  | $ | 84,321
Property and equipment, net |  |  | 169,809 |  |  | 152,778
Other assets |  |  | 36,410 |  |  | 37,777
Total assets |  | $ | 269,407 |  | $ | 274,876
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Liabilities and Equity |  |  |  |  |  |
Current liabilities |  | $ | 37,198 |  | $ | 34,438
Non-current liabilities |  |  | 47,960 |  |  | 53,120
Century Casinos, Inc. shareholders' equity |  |  | 176,884 |  |  | 179,897
Non-controlling interests |  |  | 7,365 |  |  | 7,421
Total liabilities and equity |  | $ | 269,407 |  | $ | 274,876

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8/14

CENTURY CASINOS, INC. AND SUBSIDIARIES

SUPPLEMENTAL INFORMATION

Constant Currency* Results (unaudited)

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﻿ |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
﻿ |  | For the three months |  |  |  | For the six months |  |
﻿ |  | ended June 30, |  |  |  | ended June 30, |  |
Amounts in thousands |  |  | 2018 |  |  | 2017 |  | % Change |  |  | 2018 |  |  | 2017 |  | % Change
Net operating revenue as reported (GAAP) |  | $ | 39,648 |  | $ | 37,330 |  | 6% |  | $ | 80,270 |  | $ | 73,729 |  | 9%
Foreign currency impact vs. 2017 |  |  | (1,608) |  |  |  |  |  |  |  | (5,035) |  |  |  |  |
Net operating revenue constant currency (non-GAAP)* |  | $ | 38,040 |  | $ | 37,330 |  | 2% |  | $ | 75,235 |  | $ | 73,729 |  | 2%
﻿ |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Earnings from operations (GAAP) |  | $ | 996 |  | $ | 3,641 |  | (73%) |  | $ | 4,249 |  | $ | 8,133 |  | (48%)
Foreign currency impact vs. 2017 |  |  | (16) |  |  |  |  |  |  |  | (230) |  |  |  |  |
Earnings from operations constant currency (non-GAAP)* |  | $ | 980 |  | $ | 3,641 |  | (73%) |  | $ | 4,019 |  | $ | 8,133 |  | (51%)
﻿ |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net earnings attributable to Century Casinos, Inc. shareholders as reported (GAAP) |  | $ | 317 |  | $ | 1,802 |  | (82%) |  | $ | 1,244 |  | $ | 3,962 |  | (69%)
Foreign currency impact vs. 2017 |  |  | (10) |  |  |  |  |  |  |  | (61) |  |  |  |  |
Net earnings attributable to Century Casinos, Inc. shareholders constant currency (non-GAAP)* |  | $ | 307 |  | $ | 1,802 |  | (83%) |  | $ | 1,183 |  | $ | 3,962 |  | (70%)

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Gains and losses on foreign currency transactions are added back to net earnings in the Company’s Adjusted EBITDA** calculations. A s such, there is no foreign currency impact to Adjusted EBITDA** when calculating Constant Currency* results.

Adjusted EBITDA Margins *** (unaudited)

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﻿ |  |  |  |
﻿ | For the three months | For the six months
﻿ | ended June 30, | ended June 30,
﻿ | 2018 | 2017 | 2018 | 2017
Canada | 33% | 32% | 32% | 31%
United States | 25% | 25% | 24% | 24%
Poland | 1% | 11% | 7% | 14%
Corporate and Other | (202%) | (154%) | (213%) | (130%)
Consolidated Adjusted EBITDA Margin | 12% | 17% | 14% | 18%

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9/14

CENTURY CASINOS, INC. AND SUBSIDIARIES

SUPPLEMENTAL INFORMATION

Reconciliation of Adjusted EBITDA ** to Net Earnings (Loss) Attributable to Century Casinos, Inc. Shareholders by Reportable Segment.

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﻿ |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
﻿ | For the three months ended June 30, 2018
Amounts in thousands |  | Canada |  | United States |  | Poland |  | Corporate and Other |  | Total
Net earnings (loss) |  | $ | 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

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﻿ |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
﻿ | For the three months ended June 30, 2017
Amounts in thousands |  | Canada |  | United States |  | Poland |  | Corporate and Other |  | Total
Net earnings (loss) |  | $ | 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

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10/14

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﻿ |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
﻿ | For the six months ended June 30, 2018
Amounts in thousands |  | Canada |  | United States |  | Poland |  | Corporate and Other |  | Total
Net earnings (loss) |  | $ | 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

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﻿ |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
﻿ | For the six months ended June 30, 2017
Amounts in thousands |  | Canada |  | United States |  | Poland |  | Corporate and Other |  | Total
Net earnings (loss) |  | $ | 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

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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, earnings from operations and net earnings (loss) attributable to Century Casinos, Inc. shareholders. Constant currency results are calculated by dividing the current quarter or year to date local currency segment results, excluding the local currency impact of foreign currency gains and losses, by the prior year’s average exchange rate for the quarter or year to date and comparing them to actual U.S. dollar results for the prior quarter or year to date. The average exchange rate s for the current quarter and the prior year second quarter are reported in Item 1 of the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2018. Constant currency information is not a measure of financial performance under generally accepted accounting principles in the United States of America (GAAP) and should not be considered a substitute for net operating revenue, earnings from operations or net earnings attributable to Century Casinos, Inc. shareholders as determined in accordance with GAAP.

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** The Company defines Adjusted EBITDA as net earnings (loss) attributable to Century Casinos, Inc. shareholders before interest expense (income), net, income taxes (benefit), depreciation, amortization, non-controlling interest net earnings (loss) 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 acquisition and disposition costs and gain or loss. 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 GAAP. Adjusted EBITDA is not considered a measure of performance recognized under 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) attributable to Century Casinos, Inc. shareholders above.

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*** The Company defines Adjusted EBITDA margin as Adjusted EBITDA divided by net operating revenue. Adjusted EBITDA margin is a non- GAAP measure. Management uses this margin as one of several measures to evaluate the efficiency of t he Company’s casino operations.

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12/14

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 and St. Albert, Alberta, Canada and in Bath, England. Through its Austrian subsidiary, Century Resorts Management GmbH (“CRM”), former ly Century Casinos Europe GmbH, the Company holds a 66.6% ownership interest in Casinos Poland Ltd., the owner of eight casino licenses throughout Poland. S ix of the casinos in Poland are operating as of August 8, 2018. T he Company, through C RM, also hold s 75% ownership interest s in both C DR, which operat es in the north metropolitan area of Calgary, Alberta, Canada, and C entury B ets! Inc., which operat es the pari-mutuel off-track horse betting network in s outhern Alberta, Canada. The Company holds a 51% ownership interest in Golden Hospitality Ltd., a company that manages a hotel and international entertainment and gaming club in Vietnam. The Company operat es 1 3 ship-bas ed casinos under agreements with four cruise ship owners. The Company, through C RM, 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 is also developing C entury M ile R acetrack and Casino in Edmonton, Alberta, Canada. The Company continues to pursue other international projects in various stages of development.

Century Casinos’ common stock trades on The N asdaq 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 and timing and costs of new projects, projects in development and other opportunities, including the Century Mile, Bermuda and Vietnam project s, debt repayment, investments in joint ventures, outcomes of legal proceedings, changes in our tax provisions or exposure to additional income tax liabilities, 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 7 an d in subsequent periodic and current SEC filings we may make. 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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