CORRECTION: Century Casinos Reports Financial Results for Third Quarter 2013

COLORADO SPRINGS, Colo., Nov. 21, 2013 /PRNewswire/ -- Century Casinos, Inc. (NASDAQ Capital Market® and Vienna Stock Exchange: CNTY) announced today due to a mathematical error certain corrections to a press release it issued on November 14, 2013. The corrections did not change third quarter 2013 results and are the following:

1. On page two, Adjusted EBITDA for the nine months ended September 30, 2013 has been changed from $14.588 million to $10.447 million.
2. On page five, Adjusted EBITDA for the nine months ended September 30, 2013 for the category Corporate Other has been changed from ($446) million to ($4.587) million.
3. On pages eight and nine, non-cash stock based compensation for the category Corporate Other has been changed from $1 thousand to $8 thousand for the three months ended September 30, 2013 and from $4 thousand to $11 thousand for the nine months ended September 30, 2013.

The November 14, 2013 earnings release that follows has been corrected and restated in its entirety to reflect these corrections.

Century Casinos, Inc. Announces Third Quarter 2013 Results

Colorado Springs, Colorado – November 14, 2013 – Century Casinos, Inc. (NASDAQ Capital Market® and Vienna Stock Exchange: CNTY) today announced its financial results for the three and nine months ended September 30, 2013.

Third Quarter 2013 Highlights*

• Net operating revenue was $28.8 million, a 54% increase compared to the three months ended September 30, 2012.
• Adjusted EBITDA** was $3.3 million, a 20% increase from the three months ended September 30, 2012.
• Net earnings were $1.1 million, a 10% decrease from the three months ended September 30, 2012.
• Earnings per share were $0.04, a 20% decrease from the three months ended September 30, 2012.

The period over period increases in net operating revenue and Adjusted EBITDA relate primarily to the inclusion of operating results from Casinos Poland, Ltd. (CPL) in the second quarter of 2013. In April 2013, the Company completed the purchase of an additional 33.3% ownership interest in CPL. The Company now owns a 66.6% ownership interest in CPL and consolidates CPL financial information as a majority-owned subsidiary for which the Company has a controlling financial interest. Prior to the acquisition of this additional interest in CPL, the Company owned 33.3% of CPL and accounted for the CPL ownership interest as an equity investment.

"We posted solid results in the third quarter, even though both our Colorado operations and our casino in Calgary were significantly impacted by severe floods in their feeder markets. We are also very excited about the progress we made with the racetrack and casino project in Calgary", said Erwin Haitzmann and Peter Hoetzinger, Co Chief Executive Officers of Century Casinos. 

Three Months and Nine Ended September 30, 2013 Results*

Net operating revenue increased by $10.1 million, or 54%, and increased by $21.1 million, or 39% for the three and nine months ended September 30, 2013 compared to the three and nine months ended September 30, 2012. Following is a summary of the changes in net operating revenue by property or category for the three and nine months ended September 30, 2013 compared to the three and nine months ended September 30, 2012:

Earnings from operations decreased by ($0.3) million, or (15%), and increased by $0.6 million, or 13% for the three and nine months ended September 30, 2013 compared to the three and nine months ended September 30, 2012. Following is a summary of the changes in earnings from operations by property or category for the three and nine months ended September 30, 2013 compared to the three and nine months ended September 30, 2012:

Net earnings decreased by ($0.1) million, or (10%), and increased by $2.9 million, or 84% for the three and nine months ended September 30, 2013 compared to the three and nine months ended September 30, 2012. Following is a summary of the changes in net earnings by property or category for the three and nine months ended September 30, 2013 compared to the three and nine months ended September 30, 2012:

Items deducted from or added to earnings from operations to arrive at net earnings include gain on business combination related to the acquisition of the additional ownership interest in CPL, interest income, interest expense, gains on foreign currency transactions, income tax expense and non-controlling interest.

Property and Category Results (in thousands)

The following are property and category results for net operating revenue and Adjusted EBITDA.

Balance Sheet and Liquidity

As of September 30, 2013, the Company had $30.4 million in cash and cash equivalents and $16.0 million in outstanding debt on its balance sheet compared to $24.7 million in cash and cash equivalents and $3.6 million in debt obligations at December 31, 2012. On February 21, 2013, the Company borrowed an additional $7.3 million from its Bank of Montreal credit agreement to pay for the additional 33.3% investment in CPL, which closed on April 8, 2013. The credit agreement has a term of five years and is guaranteed by the Company. Once repaid, these amounts cannot be reborrowed. As of September 30, 2013, the Company had approximately $14.9 million available for borrowing under the credit agreement. In addition, the Company had $6.2 million in outstanding debt related to CPL as of September 30, 2013.

Conference Call Information

Today the Company will post a copy of the Form 10-Q filed with the SEC for the quarter ended September 30, 2013 on its website at http://corporate.cnty.com/investor-relations/sec-filings.

Century Casinos will host its third quarter 2013 earnings conference call today at 7:00 am MDT; 3:00 pm CET, respectively. U.S. domestic participants should dial 1-888-203-7667. For all other international participants, please use 719-234-0008 to dial-in. Participants may also listen to the call live or obtain a recording of the call on the Company's website until November 30, 2013 at http://corporate.cnty.com/investor-relations/sec-filings.

*  The Company defines Adjusted EBITDA as net earnings (loss) before interest, income taxes (benefit), depreciation, amortization, pre-opening expenses, non-cash stock based compensation charges, asset impairment costs, (gains) losses on disposition of fixed assets, discontinued operations, realized foreign currency (gains) losses, 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 and Adjusted EBITDA reported for each property. 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 accounting principles generally accepted in the United States of America ("US GAAP"). Adjusted EBITDA is not considered a measure of performance recognized under US GAAP. Management believes that Adjusted EBITDA is a valuable measure of the relative performance of its properties and the Company. 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. EBITDA (Earnings before interest, taxes, depreciation and amortization) 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) above.

**  The Company defines Adjusted EBITDA margin as Adjusted EBITDA divided by net operating revenue. Management uses this margin as one of several measures to evaluate the efficiency of the Company's casino operations.

About Century Casinos, Inc.:

Century Casinos, Inc. is an international casino entertainment company that owns and operates Century Casino & Hotels in Cripple Creek and Central City, Colorado, and in Edmonton, Alberta, Canada and the Century Casino in Calgary, Alberta, Canada. The Company also operates casinos aboard twelve luxury cruise vessels (Regatta, Nautica, Marina, Riviera, Mein Schiff 1, Mein Schiff 2, Wind Surf, Wind Star, Wind Spirit, Seven Seas Voyager, Seven Seas Mariner and Seven Seas Navigator). Through its Austrian subsidiary, Century Casinos Europe GmbH, the Company holds a 66.6% ownership interest in Casinos Poland Ltd., the owner and operator of nine casinos in Poland. The Company also manages the operations of the casino at the Radisson Aruba Resort, Casino & Spa in Aruba, Caribbean. Century Casinos, Inc. continues to pursue other international projects in various stages of development.

For more information about Century Casinos, visit our website at www.centurycasinos.com. Century Casinos' common stock trades on The NASDAQ Capital Market® and the Vienna Stock Exchange under the symbol CNTY.

This release may contain "forward-looking statements" within the meaning of Section 27A of the Security 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 (including results for Casinos Poland, Ltd.), operating efficiencies, synergies and operational performance, economic improvements in 2013, debt repayment 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 30, 2012. 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.

SOURCE Century Casinos, Inc.