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Segment Information
 9 Months Ended
Sep. 30, 2021
Segment Information [Abstract]  
Segment Information 13.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. The Company views each market in which it operates as a separate operating segment and each casino or other operation within those markets as a reporting unit. Operating segments are aggregated within reportable segments based on their similar economic 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, which the Company deconsolidated in May 2020, 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 reporting units and operating segments into reportable segments:

Reportable Segment

Operating Segment

Reporting Unit

United States

Colorado

Century Casino & Hotel - Central City

Century Casino & Hotel - Cripple Creek

West Virginia

Mountaineer Casino, Racetrack & Resort

Missouri

Century Casino Cape Girardeau

Century Casino Caruthersville

Canada

Edmonton

Century Casino & Hotel - Edmonton

Century Casino St. Albert

Century Mile Racetrack and Casino

Calgary

Century Downs Racetrack and Casino

Century Sports

Century Bets! Inc.

Poland

Poland

Casinos Poland

Corporate and Other

Corporate and Other

Cruise Ships & Other

Corporate Other

The Company’s chief operating decision maker is a management function comprised of two individuals.  These two individuals are the Company’s 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 transactions. Expense related to the Master Lease is included in the interest expense (income), net line item. 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. 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 US GAAP. Adjusted EBITDA is not considered a measure of performance recognized under US GAAP.


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The following tables provide information regarding the Company’s reportable segments:

For the three months ended September 30, 2021

Amounts in thousands

United States

Canada

Poland

Corporate and Other

Total

Net operating revenue (1)

$

73,897

$

21,368

$

21,151

$

194

$

116,610

Earnings (loss) before income taxes

$

12,389

$

6,242

$

2,829

$

(6,488)

$

14,972

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

$

12,389

$

5,308

$

1,437

$

(7,908)

$

11,226

Interest expense (income), net (2)

7,121

560

(355)

3,294

10,620

Income taxes

—

499

674

1,420

2,593

Depreciation and amortization

4,699

1,217

760

108

6,784

Net earnings attributable to non-controlling interests

—

435

718

—

1,153

Non-cash stock-based compensation

—

—

—

986

986

Gain on foreign currency transactions, cost recovery income and other

—

(57)

(232)

(24)

(313)

Loss on disposition of fixed assets

—

4

3

—

7

Adjusted EBITDA

$

24,209

$

7,966

$

3,005

$

(2,124)

$

33,056

(1)Net operating revenue for Corporate and Other primarily related to the Company’s consulting agreements.

(2)Expense of $7.1 million related to the Master Lease is included in interest expense (income), net in the United States segment. Expense of $0.5 million related to the CDR land lease is included in interest expense (income), net in the Canada segment. Cash payments related to the Master Lease and CDR land lease were $6.3 million and $0.4 million, respectively, for the period presented.

For the three months ended September 30, 2020

Amounts in thousands

United States

Canada

Poland

Corporate and Other

Total

Net operating revenue (1)

$

62,647

$

16,577

$

16,339

$

143

$

95,706

Earnings (loss) before income taxes

$

7,656

$

2,514

$

252

$

(6,038)

$

4,384

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

$

7,656

$

1,880

$

86

$

(5,874)

$

3,748

Interest expense (income), net (2)

7,051

525

6

3,005

10,587

Income taxes (benefit)

—

469

123

(164)

428

Depreciation and amortization

4,506

1,345

777

196

6,824

Net earnings attributable to non-controlling interests

—

165

43

—

208

Non-cash stock-based compensation

—

—

—

354

354

Loss (gain) on foreign currency transactions and cost recovery income

—

30

(56)

69

43

Loss on disposition of fixed assets

9

11

2

—

22

Adjusted EBITDA

$

19,222

$

4,425

$

981

$

(2,414)

$

22,214

(1)Net operating revenue for Corporate and Other primarily related to the Company’s cruise ship operations and consulting agreements.

(2)Expense of $7.1 million related to the Master Lease is included in interest expense (income), net in the United States segment. Expense of $0.4 million related to the CDR land lease is included in interest expense (income), net in the Canada segment. Cash payments related to the Master Lease and CDR land lease were $6.2 million and $0.4 million, respectively, for the period presented.


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For the nine months ended September 30, 2021

Amounts in thousands

United States

Canada

Poland

Corporate and Other

Total

Net operating revenue (1)

$

214,969

$

30,031

$

35,751

$

456

$

281,207

Earnings (loss) before income taxes

$

39,486

$

1,728

$

(2,364)

$

(18,289)

$

20,561

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

$

39,486

$

265

$

(1,432)

$

(21,657)

$

16,662

Interest expense (income), net (2)

21,083

1,263

(341)

9,825

31,830

Income taxes (benefit)

—

661

(216)

3,368

3,813

Depreciation and amortization

13,734

3,689

2,320

317

20,060

Net earnings (loss) attributable to non-controlling interests

—

802

(716)

—

86

Non-cash stock-based compensation

—

—

—

1,568

1,568

Gain on foreign currency transactions, cost recovery income and other

—

(604)

(221)

(436)

(1,261)

Loss (gain) on disposition of fixed assets

282

36

3

(39)

282

Adjusted EBITDA

$

74,585

$

6,112

$

(603)

$

(7,054)

$

73,040

(1)Net operating revenue for Corporate and Other primarily related to the Company’s cruise ship operations and consulting agreements.

(2)Expense of $21.1 million related to the Master Lease is included in interest expense (income), net in the United States segment. Expense of $1.2 million related to the CDR land lease is included in interest expense (income), net in the Canada segment. Cash payments related to the Master Lease and CDR land lease were $16.8 million and $1.3 million, respectively, for the period presented.


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For the nine months ended September 30, 2020

Amounts in thousands

United States

Canada

Poland

Corporate and Other

Total

Net operating revenue (1)

$

139,908

$

37,479

$

40,793

$

1,286

$

219,466

Loss before income taxes

$

(34,976)

$

(1,444)

$

(1,822)

$

(13,126)

$

(51,368)

Net loss attributable to Century Casinos, Inc. shareholders

$

(35,999)

$

(4,102)

$

(1,134)

$

(13,480)

$

(54,715)

Interest expense (income), net (2)

21,286

1,504

23

9,719

32,532

Income taxes (benefit)

1,023

2,281

(123)

354

3,535

Depreciation and amortization

13,008

3,973

2,279

463

19,723

Net earnings (loss) attributable to non-controlling interests

—

377

(565)

—

(188)

Non-cash stock-based compensation

—

—

—

589

589

Loss (gain) on foreign currency transactions and cost recovery income

—

101

91

(6,976)

(6,784)

Impairment - intangible and tangible assets (3)

30,746

3,375

—

1,000

35,121

Loss (gain) on disposition of fixed assets

9

(58)

4

2

(43)

Acquisition costs

—

—

—

266

266

Adjusted EBITDA

$

30,073

$

7,451

$

575

$

(8,063)

$

30,036

(1)Net operating revenue for Corporate and Other primarily related to CCB, the Company’s cruise ship operations and consulting agreements.

(2)Expense of $21.3 million related to the Master Lease is included in interest expense (income), net in the United States segment. Expense of $1.5 million related to the CDR land lease is included in interest expense (income), net in the Canada segment. Cash payments related to the Master Lease and CDR land lease were $16.7 million and $1.3 million, respectively, for the period presented.

(3)Expense of $30.7 million and $3.4 million is included in the United States and Canada segments, respectively, related to the impairment of goodwill and intangible assets (see Note 4). Expense of $1.0 million is included in the Corporate and Other segment related to the impairment of the MCE investment (see Note 3).