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Segment Information
 6 Months Ended
Jun. 30, 2023
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. After the Nugget Acquisition, the Company evaluated its operating segments and concluded that as a result of the growth in the United States it would begin viewing its operating segments as East, Midwest and West. The Company views each casino or other operation within its operating segments 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 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.


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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

East

Mountaineer Casino, Resort & Races (1)

Midwest

Century Casino & Hotel - Central City

Century Casino & Hotel - Cripple Creek

Century Casino Cape Girardeau (1)

Century Casino Caruthersville and The Farmstead (1)

West

Nugget Casino Resort and Smooth Bourbon, LLC

Canada

Canada (2)

Century Casino & Hotel - Edmonton

Century Casino St. Albert

Century Mile Racetrack and Casino

Century Downs Racetrack and Casino

Poland

Poland

Casinos Poland

Corporate and Other

Corporate and Other

Cruise Ships & Other (3)

Corporate Other (4)

(1)The real estate assets are owned by VICI PropCo.

(2)The Company operated Century Sports through February 10, 2022. See Note 1.

(3)The Company operated on ship-based casinos through April 16, 2023. See Note 1.

(4)Prior to the Nugget Acquisition, the Company’s equity investment in Smooth Bourbon was included in the Corporate Other reporting unit.

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 (loss) and transactions, pre-opening expenses, acquisition costs, non-cash stock-based compensation charges, asset impairment costs, loss (gain) 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) attributable to Century Casinos, Inc. shareholders 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 June 30, 2023

Amounts in thousands

United States

Canada

Poland

Corporate and Other

Total

Net operating revenue (1)

$

94,408

$

18,834

$

23,515

$

4

$

136,761

Earnings from equity investment

—

—

—

30

30

Earnings (loss) before income taxes

10,232

4,051

1,445

(15,269)

459

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

$

7,252

$

2,729

$

704

$

(12,644)

$

(1,959)

Interest expense (income), net (2)

7,299

547

(117)

10,501

18,230

Income taxes (benefit)

1,188

1,145

388

(2,625)

96

Depreciation and amortization

8,326

1,146

661

57

10,190

Net earnings attributable to non-controlling interests

1,792

177

353

—

2,322

Non-cash stock-based compensation

—

—

—

928

928

Gain on foreign currency transactions, cost recovery income and other (3)

—

(630)

(104)

(3)

(737)

Gain on disposition of fixed assets

(33)

—

—

—

(33)

Acquisition costs

—

—

—

251

251

Adjusted EBITDA

$

25,824

$

5,114

$

1,885

$

(3,535)

$

29,288

(1)Net operating revenue for Corporate and Other primarily related to the Company’s cruise ship operations, which ceased in April 2023.

(2)Included in interest expense (income), net is interest expense of $7.3 million related to the Master Lease in the United States segment and interest expense of $0.5 million related to the CDR land lease in the Canada segment. Cash payments related to the Master Lease and CDR land lease were $6.9 million and $0.5 million, respectively, for the period presented.

(3)Includes $0.7 million related to the earn out from the sale of casino operations in Calgary in 2020.

For the three months ended June 30, 2022

Amounts in thousands

United States

Canada

Poland

Corporate and Other

Total

Net operating revenue (1)

$

70,313

$

19,037

$

21,707

$

65

$

111,122

Earnings from equity investment

—

—

—

1,063

1,063

Earnings (loss) before income taxes

10,521

3,783

2,498

(17,372)

(570)

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

$

10,521

$

2,875

$

1,322

$

(5,862)

$

8,856

Interest expense (income), net (2)

7,103

585

(54)

14,162

21,796

Income taxes (benefit)

—

574

515

(11,510)

(10,421)

Depreciation and amortization

4,758

1,226

676

119

6,779

Net earnings attributable to non-controlling interests

—

334

661

—

995

Non-cash stock-based compensation

—

—

—

1,012

1,012

(Gain) loss on foreign currency transactions and cost recovery income (3)

—

(34)

(397)

7

(424)

Loss (gain) on disposition of fixed assets

—

8

1

(121)

(112)

Acquisition costs

—

—

—

1,297

1,297

Adjusted EBITDA

$

22,382

$

5,568

$

2,724

$

(896)

$

29,778

(1)Net operating revenue for Corporate and Other primarily related to the Company’s cruise ship operations, which ceased in April 2023.

(2)Included in interest expense (income), net is interest expense of $7.1 million related to the Master Lease in the United States segment, interest expense of $0.6 million related to the CDR land lease in the Canada segment and interest expense of $7.3 million related to the write-off of deferred financing costs in connection with the prepayment of the Macquarie Term Loan in the Corporate and Other segment Cash payments related to the Master Lease and CDR land lease were $6.4 million and $0.7 million, respectively, for the period presented.

For the six months ended June 30, 2023

Amounts in thousands

United States

Canada

Poland

Corporate and Other

Total

Net operating revenue (1)

$

160,772

$

35,342

$

49,093

$

61

$

245,268

Earnings from equity investment

—

—

—

1,121

1,121

Earnings (loss) before income taxes

17,383

11,046

4,436

(27,752)

5,113

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

$

12,627

$

4,602

$

2,277

$

(22,708)

$

(3,202)

Interest expense (income), net (2)

14,418

1,070

(211)

20,455

35,732

Income taxes (benefit)

2,964

2,779

1,020

(5,044)

1,719

Depreciation and amortization

13,357

2,272

1,295

120

17,044

Net earnings attributable to non-controlling interests

1,792

3,665

1,139

—

6,596

Non-cash stock-based compensation

—

—

—

1,664

1,664

(Gain) loss on foreign currency transactions, cost recovery income and other (3)

—

(4,715)

(358)

5

(5,068)

Loss on disposition of fixed assets

437

3

1

5

446

Acquisition costs

—

—

—

409

409

Adjusted EBITDA

$

45,595

$

9,676

$

5,163

$

(5,094)

$

55,340

(1)Net operating revenue for Corporate and Other primarily related to the Company’s cruise ship operations, which ceased in April 2023.

(2)Included in interest expense (income), net is interest expense of $14.4 million related to the Master Lease in the United States segment and interest expense of $1.1 million related to the CDR land lease in the Canada segment. Cash payments related to the Master Lease and CDR land lease were $13.7 million and $1.0 million, respectively, for the period presented.

(3)Includes $1.2 million related to the earn out from the sale of casino operations in Calgary in 2020 and cost recovery income for CDR.

For the six months ended June 30, 2022

Amounts in thousands

United States

Canada

Poland

Corporate and Other

Total

Net operating revenue (1)

$

135,556

$

35,039

$

43,531

$

98

$

214,224

Earnings from equity investment

—

—

—

1,063

1,063

Earnings (loss) before income taxes

19,038

5,726

4,454

(25,644)

3,574

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

$

19,038

$

2,170

$

2,255

$

(14,389)

$

9,074

Interest expense (income), net (2)

14,109

1,152

(67)

17,395

32,589

Income taxes (benefit)

—

1,197

1,072

(11,255)

(8,986)

Depreciation and amortization

9,526

2,452

1,356

240

13,574

Net earnings attributable to non-controlling interests

—

2,359

1,127

—

3,486

Non-cash stock-based compensation

—

—

—

1,685

1,685

Loss (gain) on foreign currency transactions, cost recovery income and other (3)

—

209

(379)

(5)

(175)

Loss (gain) on disposition of fixed assets

19

23

4

(121)

(75)

Acquisition costs

—

—

—

2,429

2,429

Adjusted EBITDA

$

42,692

$

9,562

$

5,368

$

(4,021)

$

53,601

(1)Net operating revenue for Corporate and Other primarily related to the Company’s cruise ship operations and consulting agreements, which ceased in April 2023.

(2)Included in interest expense (income), net is interest expense of $14.1 million related to the Master Lease in the United States segment, interest expense of $1.1 million related to the CDR land lease in the Canada segment, and interest expense of $7.3 million related to the write-off of deferred financing costs in connection with the prepayment of the Macquarie Term Loan in the Corporate and Other segment. Cash payments related to the Master Lease and CDR land lease were $10.6 million and $1.0 million, respectively, for the period presented.

(3)Loss of $2.2 million related to the sale of the land and building in Calgary is included in the Canada segment.