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 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. 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-US GAAP measure defined as net earnings (loss) attributable to Century Casinos, Inc. shareholders 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, cost recovery income 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 September 30, 2019
Amounts in thousands		Canada		United States		Poland		Corporate and Other		Total
Net operating revenue (1)		$	22,063	$	9,199	$	20,360	$	1,313	$	52,935

Earnings (loss) before income taxes		$	2,169	$	1,813	$	1,679	$	(3,481)	$	2,180

Net earnings (loss) attributable to Century Casinos, Inc. shareholders		$	1,623	$	1,348	$	775	$	(3,264)	$	482
Interest expense (income), net			1,346		—		51		19		1,416
Income taxes (benefit)			367		465		518		(217)		1,133
Depreciation and amortization			1,327		488		797		217		2,829
Net earnings attributable to non-controlling interests			179		—		386		—		565
Non-cash stock-based compensation			—		—		—		358		358
Loss (gain) on foreign currency transactions, cost recovery income and other			12		—		(139)		11		(116)
Loss on disposition of fixed assets			—		—		85		44		129
Acquisition costs			—		—		—		297		297
Adjusted EBITDA		$	4,854	$	2,301	$	2,473	$	(2,535)	$	7,093

(1)

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


	For the three months ended September 30, 2018
Amounts in thousands		Canada		United States		Poland		Corporate and Other		Total
Net operating revenue (1)		$	15,683	$	9,360	$	16,747	$	1,774	$	43,564

Earnings (loss) before income taxes		$	2,766	$	2,121	$	83	$	(2,384)	$	2,586

Net earnings (loss) attributable to Century Casinos, Inc. shareholders		$	1,668	$	1,578	$	(81)	$	(1,525)	$	1,640
Interest expense (income), net			854		—		42		(66)		830
Income taxes (benefit)			880		543		204		(836)		791
Depreciation and amortization			762		545		717		299		2,323
Net earnings (loss) attributable to non-controlling interests			218		—		(40)		(23)		155
Non-cash stock-based compensation			—		—		—		266		266
Gain on foreign currency transactions and cost recovery income			(1)		—		(109)		(72)		(182)
Loss on disposition of fixed assets			3		—		169		—		172
Pre-opening expenses			446		—		—		—		446
Other one-time income (2)			—		—		—		(91)		(91)
Adjusted EBITDA		$	4,830	$	2,666	$	902	$	(2,048)	$	6,350

(1)

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

(2)

Other one-time income relates to an arbitration award from LOT Polish Airlines in July 2018.


	For the nine months ended September 30, 2019
Amounts in thousands		Canada		United States		Poland		Corporate and Other		Total
Net operating revenue (1)		$	60,353	$	26,073	$	60,221	$	4,343	$	150,990

Earnings (loss) before income taxes		$	8,716	$	4,793	$	4,566	$	(11,728)	$	6,347

Net earnings (loss) attributable to Century Casinos, Inc. shareholders		$	5,704	$	3,564	$	2,115	$	(10,398)	$	985
Interest expense (income), net			3,856		—		142		65		4,063
Income taxes (benefit)			1,913		1,229		1,395		(1,318)		3,219
Depreciation and amortization			3,184		1,573		2,284		657		7,698
Net earnings (loss) attributable to non-controlling interests			1,099		—		1,056		(12)		2,143
Non-cash stock-based compensation			—		—		—		979		979
(Gain) loss on foreign currency transactions, cost recovery income and other			(465)		—		(419)		5		(879)
(Gain) loss on disposition of fixed assets			(1)		17		338		342		696
Acquisition costs			—		—		—		1,064		1,064
Pre-opening expenses			538		—		—		—		538
Adjusted EBITDA		$	15,828	$	6,383	$	6,911	$	(8,616)	$	20,506

(1)

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


	For the nine months ended September 30, 2018
Amounts in thousands		Canada		United States		Poland		Corporate and Other			Total
Net operating revenue (1)		$	45,690	$	25,542	$	48,695	$	3,907	$	123,834

Earnings (loss) before income taxes		$	8,288	$	4,844	$	(177)	$	(7,956)	$	4,999

Net earnings (loss) attributable to Century Casinos, Inc. shareholders		$	5,641	$	3,602	$	(329)	$	(6,027)	$	2,887
Interest expense (income), net			2,812		1		153		(50)		2,916
Income taxes (benefit)			2,101		1,242		316		(1,875)		1,784
Depreciation and amortization			2,433		1,631		2,040		541		6,645
Net earnings (loss) attributable to non-controlling interests			546		—		(164)		(54)		328
Non-cash stock-based compensation			—		—		—		613		613
Gain on foreign currency transactions and cost recovery income			(140)		—		(290)		(1)		(431)
Loss on disposition of fixed assets			6		1		1,027		1		1,035
Pre-opening expenses			1,135		—		405		350		1,890
Other one-time income (2)			—		—		—		(91)		(91)
Adjusted EBITDA		$	14,534	$	6,477	$	3,158	$	(6,593)	$	17,576

(1)

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

(2)

Other one-time income relates to an arbitration award from LOT Polish Airlines in July 2018.