XML 41 R20.htm IDEA: XBRL DOCUMENT v3.24.3
Segment Information
 9 Months Ended
Sep. 30, 2024
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 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.

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)

Rocky Gap Casino, Resort & Golf (1)

Midwest

Century Casino & Hotel — Central City

Century Casino & Hotel — Cripple Creek

Century Casino & Hotel — Cape Girardeau (1)

Century Casino & Hotel — Caruthersville and The Farmstead (1)

West

Nugget Casino Resort and Smooth Bourbon, LLC

Canada

Canada

Century Casino & Hotel — Edmonton (1)

Century Casino St. Albert (1)

Century Mile Racetrack and Casino (1)

Century Downs Racetrack and Casino (1)

Poland

Poland

Casinos Poland

Corporate and Other

Corporate and Other

Cruise Ships & Other (2)

Corporate Other (3)

(1)The real estate assets, except The Riverview hotel in Cape Girardeau and The Farmstead hotel in Caruthersville, are owned by VICI PropCo.

(2)The Company operated on ship-based casinos through April 16, 2023. See Part I, Item 1 Note 1, “Description of Business and Basis of Presentation”.

(3)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 EBITDAR as the primary profit measure for its reportable segments.


‎

Adjusted EBITDAR

Adjusted EBITDAR 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, (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) attributable to Century Casinos, Inc. shareholders and Adjusted EBITDAR 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 EBITDAR is not considered a measure of performance recognized under US GAAP.

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

For the three months ended September 30, 2024

Amounts in thousands

United States

Canada

Poland

Corporate and Other

Total

Net operating revenue

$

117,139

$

20,275

$

18,287

$

—

$

155,701

Earnings (loss) before income taxes

6,475

614

(1,117)

(13,031)

(7,059)

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

$

4,701

$

1,134

$

(681)

$

(13,273)

$

(8,119)

Interest expense (income), net (1)

11,720

3,241

(14)

10,157

25,104

Income tax (benefit) expense

—

(481)

(95)

242

(334)

Depreciation and amortization

10,939

1,078

409

36

12,462

Net earnings (loss) attributable to non-controlling interests

1,774

(39)

(341)

—

1,394

Non-cash stock-based compensation

—

—

—

(280)

(280)

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

25

(44)

(83)

1

(101)

Loss on disposition of fixed assets

13

—

10

—

23

Pre-opening expenses

—

—

2,753

—

2,753

Adjusted EBITDAR

$

29,172

$

4,889

$

1,958

$

(3,117)

$

32,902

(1)Interest expense in the United States and Canada segments primarily relates to the Master Lease. Interest expense in the Corporate and Other segment primarily relates to the Goldman Credit Agreement.


‎

For the three months ended September 30, 2023

Amounts in thousands

United States

Canada

Poland

Corporate and Other

Total

Net operating revenue

$

116,861

$

20,921

$

23,397

$

—

$

161,179

Earnings (loss) before income taxes

7,861

(6,586)

1,558

(19,367)

(16,534)

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

$

5,273

$

(1,730)

$

788

$

(18,506)

$

(14,175)

Interest expense (income), net (1)

11,951

8,706

(74)

10,785

31,368

Income tax expense (benefit)

818

(3,403)

378

(861)

(3,068)

Depreciation and amortization

10,706

1,102

653

57

12,518

Net earnings (loss) attributable to non-controlling interests

1,770

(1,453)

392

—

709

Non-cash stock-based compensation

—

—

—

1,082

1,082

(Gain) loss on foreign currency transactions and cost recovery income (2)

(85)

1,484

(213)

(46)

1,140

Loss on disposition of fixed assets

56

—

24

—

80

Acquisition costs

—

—

—

3,693

3,693

Adjusted EBITDAR

$

30,489

$

4,706

$

1,948

$

(3,796)

$

33,347

(1)Interest expense in the United States and Canada segments primarily relates to the Master Lease. Interest expense in the Corporate and Other segment primarily relates to the Goldman Credit Agreement. Expense related to the CDR land lease was recorded as interest expense in the Canada segment. The CDR land lease ended on September 6, 2023 in conjunction with the Canada Real Estate Sale and $7.3 million related to the debt extinguishment of the CDR land lease was recorded as interest expense in the Canada segment.

(2)Includes $0.3 million in the Canada segment related to the earn out from the sale of casino operations in Calgary in 2020.

For the nine months ended September 30, 2024

Amounts in thousands

United States

Canada

Poland

Corporate and Other

Total

Net operating revenue

$

319,680

$

58,425

$

60,029

$

13

$

438,147

Earnings (loss) before income taxes

5,601

4,853

(931)

(41,656)

(32,133)

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

$

(25,066)

$

3,276

$

(716)

$

(40,770)

$

(63,276)

Interest expense (income), net (1)

35,159

9,300

(70)

30,927

75,316

Income tax expense (benefit)

25,340

702

143

(886)

25,299

Depreciation and amortization

32,030

3,315

1,462

135

36,942

Net earnings (loss) attributable to non-controlling interests

5,327

875

(358)

—

5,844

Non-cash stock-based compensation

—

—

—

566

566

Loss (gain) on foreign currency transactions, cost recovery income and other (2)

24

(1,950)

(415)

(352)

(2,693)

Loss (gain) on disposition of fixed assets

535

(36)

367

—

866

Acquisition costs

—

—

—

(19)

(19)

Pre-opening expenses

—

—

2,753

—

2,753

Adjusted EBITDAR

$

73,349

$

15,482

$

3,166

$

(10,399)

$

81,598

(1)Interest expense in the United States and Canada segments primarily relates to the Master Lease. Interest expense in the Corporate and Other segment primarily relates to the Goldman Credit Agreement.

(2)Includes $1.1 million in the Canada segment related to cost recovery income for CDR.


‎

For the nine months ended September 30, 2023

Amounts in thousands

United States

Canada

Poland

Corporate and Other

Total

Net operating revenue (1)

$

277,636

$

56,262

$

72,489

$

61

$

406,448

Earnings from equity investment

—

—

—

1,121

1,121

Earnings (loss) before income taxes

25,244

4,453

5,995

(47,113)

(11,421)

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

$

17,026

$

2,865

$

3,066

$

(40,334)

$

(17,377)

Interest expense (income), net (2)

26,370

9,776

(285)

31,238

67,099

Income tax expense (benefit)

4,656

(624)

1,398

(6,779)

(1,349)

Depreciation and amortization

24,065

3,374

1,948

175

29,562

Net earnings attributable to non-controlling interests

3,562

2,212

1,531

—

7,305

Non-cash stock-based compensation

—

—

—

2,746

2,746

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

(85)

(3,228)

(572)

(42)

(3,927)

Loss on disposition of fixed assets

492

5

25

4

526

Acquisition costs

—

—

—

4,101

4,101

Adjusted EBITDAR

$

76,086

$

14,380

$

7,111

$

(8,891)

$

88,686

(1)Interest expense in the United States and Canada segments primarily relates to the Master Lease. Interest expense in the Corporate and Other segment primarily relates to the Goldman Credit Agreement. Expense related to the CDR land lease was recorded as interest expense in the Canada segment. The CDR land lease ended on September 6, 2023 in conjunction with the Canada Real Estate Sale and $7.3 million related to the debt extinguishment of the CDR land lease was recorded as interest expense in the Canada segment.

(2)Includes $1.6 million related to the earn out from the sale of casino operations in Calgary in 2020 and $3.5 million related to cost recovery income for CDR in the Canada segment.