COLORADO SPRINGS, Colo., Nov. 1, 2016 /CNW/ -- Century Casinos,
Inc. (NASDAQ Capital Market®: CNTY) today announced its financial results for the three and nine months ended September 30, 2016.
Third Quarter 2016 Highlights*
- Net operating revenue was $34.5 million, a 3% increase from the three months ended September 30, 2015.
- Earnings from operations were $3.8 million, a 6% decrease from the three months ended
September 30, 2015.
- Net earnings attributable to Century Casinos, Inc. shareholders were $1.9 million, a 31%
decrease from the three months ended September 30, 2015.
- Adjusted EBITDA** was $6.3 million, a 7% decrease from the three months ended September 30, 2015.
- Earnings per share were $0.08.
- Book value per share*** at September 30, 2016 was $5.39.
Operating results were primarily impacted by decreased net operating revenue at the Century Casino & Hotel in Edmonton ("CRA") due to an extensive refurbishment and remodel of the casino floor and food and beverage
outlets for the three months ended September 30, 2016 compared to the three months ended September 30, 2015.
In October 2016, the Company's subsidiary, Century Casino St. Albert Inc. ("CSA"), acquired 100%
of the issued and outstanding shares and related land of entities operating the Apex Casino in suburban Edmonton, Alberta, Canada. Century Casino St. Albert, formerly Apex Casino, is a 34,500 square foot casino
facility located on approximately seven acres of land that includes 382 slot machines, 11 live table games, a restaurant, a bar, a
lounge and a banquet facility that can accommodate up to 175 guests.
In June 2016, the Company began operating the ship-based casinos onboard the Mein Schiff 5, a new
2,500 passenger cruise ship, and the TUI Discovery, a 2,067 passenger cruise ship. Under an agreement with Diamond Cruise
International Co., Ltd., the Company began operating the ship-based casino onboard Glory Sea, a 1,200 passenger cruise ship, in
July 2016. Glory Sea operates in the Chinese cruise market with three and four-day trips between
China, South Korea and Japan.
The Glory Sea casino has 50 slot machines and 17 table games. Under an amended concession agreement with TUI Cruises, the Company
also plans to operate the ship-based casino onboard Mein Schiff 6, a new 2,500 passenger cruise ship that is expected to begin
operations in the third quarter of 2017.
In September 2016, the Company was selected as the successful applicant by Horse Racing Alberta to
own, build and operate a horse racing facility in the Edmonton market area, which the Company will
operate as Century Mile. Century Mile will be a one-mile horse racetrack and multi-level racing and entertainment center, which
will include a gaming floor with slot machines as well as food and beverage outlets. The proposed location is on Edmonton International Airport land and close to the city of Leduc, just
south of Edmonton and positioned off Queen Elizabeth II Highway. The Company estimates that the
project will cost approximately CAD 50.0 million and be completed by the end of 2018.
The consolidated results for the three and nine months ended September 30, 2016 and 2015 are as
follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months
|
For the Nine Months
|
|
Amounts in thousands, except per share data
|
Ended September 30,
|
Ended September 30,
|
|
Consolidated Results:
|
|
|
2016
|
|
|
2015
|
|
% Change
|
|
|
2016
|
|
|
2015
|
|
% Change
|
|
Net operating revenue
|
|
$
|
34,526
|
|
$
|
33,526
|
|
3%
|
|
$
|
102,257
|
|
$
|
101,803
|
|
0%
|
|
Earnings from operations
|
|
|
3,835
|
|
|
4,082
|
|
(6%)
|
|
|
11,761
|
|
|
14,021
|
|
(16%)
|
|
Net earnings attributable to Century Casinos, Inc. shareholders
|
|
$
|
1,887
|
|
$
|
2,728
|
|
(31%)
|
|
$
|
6,030
|
|
$
|
11,170
|
|
(46%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA**
|
|
$
|
6,271
|
|
$
|
6,719
|
|
(7%)
|
|
$
|
18,742
|
|
$
|
18,292
|
|
3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.08
|
|
$
|
0.11
|
|
(27%)
|
|
$
|
0.25
|
|
$
|
0.46
|
|
(46%)
|
|
Diluted
|
|
$
|
0.08
|
|
$
|
0.11
|
|
(27%)
|
|
$
|
0.25
|
|
$
|
0.46
|
|
(46%)
|
"Operating results and Adjusted EBITDA were impacted by extensive refurbishment and remodeling at the Century Casino & Hotel
in Edmonton, our largest property. However, we are very happy with the new gaming floor,
restaurant, bar, poker room and the beautiful new VIP gaming areas," Erwin Haitzmann and Peter Hoetzinger, Co Chief Executive
Officers of Century Casinos, said. "We opened another three shipboard casinos this year and are particularly excited about the
newest addition to our portfolio of casinos, the Century Casino St. Albert in the greater Edmonton
metropolitan region, which we acquired on October 1, 2016. Finally, we are thrilled to have been
chosen by Horse Racing Alberta to develop and operate a new horse racing and gaming entertainment facility in South Edmonton," they continued.
Consolidated Results*
The table below shows the Company's operating segments that are included in each of the Company's reportable segments as of
September 30, 2016:
|
|
|
Reportable Segment
|
Operating Segment
|
|
Canada
|
Century Casino & Hotel - Edmonton
|
|
Canada
|
Century Casino Calgary
|
|
Canada
|
Century Downs Racetrack and Casino
|
|
Canada
|
Century Bets!
|
|
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
|
Corporate Other
|
The Company's net operating revenue increased by $1.0 million, or 3%, and by $0.5 million, or 0%, for the three and nine months ended September 30, 2016,
compared to the three and nine months ended September 30, 2015. Following is a summary of the changes
in net operating revenue by segment for the three and nine months ended September 30, 2016, compared
to the three and nine months ended September 30, 2015:
|
|
|
|
|
|
|
|
Net Operating Revenue
|
|
For the Three Months
|
For the Nine Months
|
|
Ended September 30,
|
Ended September 30,
|
|
2016/2015
|
2016/2015
|
|
Amounts in millions
|
Change
|
% Change
|
Change
|
% Change
|
|
Canada
|
$
|
(0.2)
|
(2%)
|
$
|
3.5
|
10%
|
|
United States
|
|
0.2
|
3%
|
|
1.0
|
5%
|
|
Poland
|
|
0.9
|
7%
|
|
0.3
|
1%
|
|
Corporate and Other
|
|
0.1
|
6%
|
|
(4.4)
|
(63%)
|
|
Total
|
$
|
1.0
|
3%
|
$
|
0.5
|
0%
|
The Company's earnings from operations decreased by ($0.2) million, or (6%), and by ($2.3) million, or (16%), for the three and nine months ended September 30, 2016,
compared to the three and nine months ended September 30, 2015. Following is a summary of the
changes in earnings from operations by segment for the three and nine months ended September 30,
2016, compared to the three and nine months ended September 30, 2015:
|
|
|
|
|
|
|
|
Earnings from Operations
|
|
For the Three Months
|
For the Nine Months
|
|
Ended September 30,
|
Ended September 30,
|
|
2016/2015
|
2016/2015
|
|
Amounts in millions
|
Change
|
% Change
|
Change
|
% Change
|
|
Canada
|
$
|
(0.7)
|
(20%)
|
$
|
(0.7)
|
(7%)
|
|
United States
|
|
0.1
|
8%
|
|
0.4
|
12%
|
|
Poland
|
|
0.4
|
45%
|
|
0.6
|
19%
|
|
Corporate and Other
|
|
(0.1)
|
(8%)
|
|
(2.6)
|
(112%)
|
|
Total
|
$
|
(0.2)
|
(6%)
|
$
|
(2.3)
|
(16%)
|
Net earnings (loss) attributable to Century Casinos, Inc. shareholders decreased by ($0.8)
million, or (31%), and by ($5.1) million, or (46%), for the three and nine months ended
September 30, 2016, compared to the three and nine months ended September 30,
2015. Following is a summary of the changes in net earnings (loss) attributable to Century Casinos, Inc. shareholders by
segment for the three and nine months ended September 30, 2016, compared to the three and nine months
ended September 30, 2015:
|
|
|
|
|
|
|
|
Net Earnings (Loss) Attributable to
|
|
Century Casinos, Inc. Shareholders
|
|
For the Three Months
|
For the Nine Months
|
|
Ended September 30,
|
Ended September 30,
|
|
2016/2015
|
2016/2015
|
|
Amounts in millions
|
Change
|
% Change
|
Change
|
% Change
|
|
Canada
|
$
|
(0.5)
|
(25%)
|
$
|
(1.3)
|
(20%)
|
|
United States
|
|
0.1
|
7%
|
|
0.3
|
12%
|
|
Poland
|
|
0.1
|
28%
|
|
0.1
|
8%
|
|
Corporate and Other
|
|
(0.6)
|
(82%)
|
|
(4.3)
|
(528%)
|
|
Total
|
$
|
(0.8)
|
(31%)
|
$
|
(5.1)
|
(46%)
|
Items deducted from or added to earnings from operations to arrive at net earnings (loss) attributable to Century Casinos, Inc.
shareholders include interest income, interest expense, gains (losses) on foreign currency transactions and other, income tax
expense and non-controlling interests.
Segment Results (in thousands)*
The following are segment results for net operating revenue, earnings from operations, net earnings (loss) attributable to
Century Casinos, Inc. shareholders and Adjusted EBITDA**.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Operating Revenue
|
|
|
|
Net Operating Revenue
|
|
|
|
For the Three Months
|
|
|
|
For the Nine Months
|
|
|
|
Ended September 30,
|
|
|
|
Ended September 30,
|
|
|
|
2016
|
|
2015
|
|
% Change
|
|
2016
|
|
2015
|
|
% Change
|
|
Canada
|
$
|
12,005
|
|
$
|
12,198
|
|
(2%)
|
|
$
|
37,470
|
|
$
|
33,951
|
|
10%
|
|
United States
|
|
8,188
|
|
|
7,958
|
|
3%
|
|
|
22,970
|
|
|
21,960
|
|
5%
|
|
Poland
|
|
13,356
|
|
|
12,449
|
|
7%
|
|
|
39,190
|
|
|
38,858
|
|
1%
|
|
Corporate and Other
|
|
977
|
|
|
921
|
|
6%
|
|
|
2,627
|
|
|
7,034
|
|
(63%)
|
|
Consolidated
|
$
|
34,526
|
|
$
|
33,526
|
|
3%
|
|
$
|
102,257
|
|
$
|
101,803
|
|
0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings from Operations
|
|
|
|
Earnings from Operations
|
|
|
|
For the Three Months
|
|
|
|
For the Nine Months
|
|
|
|
Ended September 30,
|
|
|
|
Ended September 30,
|
|
|
|
2016
|
|
2015
|
|
% Change
|
|
2016
|
|
2015
|
|
% Change
|
|
Canada
|
$
|
2,599
|
|
$
|
3,256
|
|
(20%)
|
|
$
|
9,044
|
|
$
|
9,713
|
|
(7%)
|
|
United States
|
|
1,614
|
|
|
1,502
|
|
8%
|
|
|
3,838
|
|
|
3,426
|
|
12%
|
|
Poland
|
|
1,393
|
|
|
962
|
|
45%
|
|
|
3,828
|
|
|
3,213
|
|
19%
|
|
Corporate and Other
|
|
(1,771)
|
|
|
(1,638)
|
|
(8%)
|
|
|
(4,949)
|
|
|
(2,331)
|
|
(112%)
|
|
Consolidated
|
$
|
3,835
|
|
$
|
4,082
|
|
(6%)
|
|
$
|
11,761
|
|
$
|
14,021
|
|
(16%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Earnings (Loss)
|
|
|
|
Net Earnings (Loss)
|
|
|
|
Attributable to Century
|
|
|
|
Attributable to Century
|
|
|
|
Casinos, Inc. Shareholders
|
|
|
|
Casinos, Inc. Shareholders
|
|
|
|
For the Three Months
|
|
|
|
For the Nine Months
|
|
|
|
Ended September 30,
|
|
|
|
Ended September 30,
|
|
|
|
2016
|
|
2015
|
|
% Change
|
|
2016
|
|
2015
|
|
% Change
|
|
Canada
|
$
|
1,467
|
|
$
|
1,957
|
|
(25%)
|
|
$
|
5,076
|
|
$
|
6,355
|
|
(20%)
|
|
United States
|
|
1,000
|
|
|
931
|
|
7%
|
|
|
2,378
|
|
|
2,125
|
|
12%
|
|
Poland
|
|
684
|
|
|
536
|
|
28%
|
|
|
2,029
|
|
|
1,884
|
|
8%
|
|
Corporate and Other
|
|
(1,264)
|
|
|
(696)
|
|
(82%)
|
|
|
(3,453)
|
|
|
806
|
|
(528%)
|
|
Consolidated
|
$
|
1,887
|
|
$
|
2,728
|
|
(31%)
|
|
$
|
6,030
|
|
$
|
11,170
|
|
(46%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA**
|
|
|
|
Adjusted EBITDA**
|
|
|
|
For the Three Months
|
|
|
|
For the Nine Months
|
|
|
|
Ended September 30,
|
|
|
|
Ended September 30,
|
|
|
|
2016
|
|
2015
|
|
% Change
|
|
2016
|
|
2015
|
|
% Change
|
|
Canada
|
$
|
3,379
|
|
$
|
3,902
|
|
(13%)
|
|
$
|
11,316
|
|
$
|
11,697
|
|
(3%)
|
|
United States
|
|
2,238
|
|
|
2,140
|
|
5%
|
|
|
5,716
|
|
|
5,330
|
|
7%
|
|
Poland
|
|
2,022
|
|
|
1,771
|
|
14%
|
|
|
5,704
|
|
|
5,411
|
|
5%
|
|
Corporate and Other
|
|
(1,368)
|
|
|
(1,094)
|
|
(25%)
|
|
|
(3,994)
|
|
|
(4,146)
|
|
4%
|
|
Consolidated
|
$
|
6,271
|
|
$
|
6,719
|
|
(7%)
|
|
$
|
18,742
|
|
$
|
18,292
|
|
3%
|
* Amounts presented are rounded. As such, rounding differences could occur in period over period changes and percentages
reported.
** Adjusted EBITDA and Adjusted EBITDA Margin are Non-GAAP financial measures. See discussion and reconciliation of Non-GAAP
financial measures in Supplemental Information below.
*** The Company defines book value per share as total Century Casinos, Inc. shareholders' equity divided by outstanding common
shares.
Balance Sheet and Liquidity
As of September 30, 2016, the Company had $33.0 million in cash and
cash equivalents and $58.4 million in outstanding debt on its balance sheet compared to $29.4 million in cash and cash equivalents and $36.5 million in outstanding debt at
December 31, 2015. The $58.4 million in outstanding debt as of
September 30, 2016 includes $42.5 million related to the Company's Bank
of Montreal credit agreement, $0.9 million related to capital leases
for Century Resorts Alberta and Century Downs Racetrack and Casino ("CDR"), $14.9 million related to
a long-term land lease for CDR and $0.5 million related to Casinos Poland, Ltd., net of $0.4 million in deferred financing costs.
Conference Call Information
Today the Company will post a copy of its quarterly report on Form 10-Q filed with the SEC for the quarter ended September 30, 2016 on its website at http://corporate.cnty.com/investor-relations/sec-filings. The Company will also post a presentation on
the third quarter results on its website at http://corporate.cnty.com/investor-relations/presentations-and-interviews.
Century Casinos will host its third quarter 2016 earnings conference call today at 7:00 am MDT;
2:00 pm CET, respectively. U.S. domestic participants should dial 1-844-244-9160. For all
international participants, please use 330-931-4670 to dial-in. Participants may listen to the call live at https://centurycasinos.adobeconnect.com/earningsrelease or obtain a recording of the call on the Company's website
until November 30, 2016 at http://corporate.cnty.com/investor-relations/sec-filings.
|
|
(continued)
|
|
CENTURY CASINOS, INC. AND SUBSIDIARIES
|
|
FINANCIAL INFORMATION – US GAAP BASIS
|
|
Century Casinos, Inc.
|
|
Condensed Consolidated Statements of Earnings
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months
|
For the Nine Months
|
|
Ended September 30,
|
Ended September 30,
|
|
Amounts in thousands, except for per share information
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
Operating revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net operating revenue
|
|
$
|
34,526
|
|
$
|
33,526
|
|
$
|
102,257
|
|
$
|
101,803
|
|
Operating costs and expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating costs and expenses
|
|
|
30,691
|
|
|
29,444
|
|
|
90,496
|
|
|
87,782
|
|
Earnings from operations
|
|
|
3,835
|
|
|
4,082
|
|
|
11,761
|
|
|
14,021
|
|
Non-operating income (expense), net
|
|
|
(629)
|
|
|
(570)
|
|
|
(420)
|
|
|
(1,364)
|
|
Earnings before income taxes
|
|
|
3,206
|
|
|
3,512
|
|
|
11,341
|
|
|
12,657
|
|
Income tax provision
|
|
|
(793)
|
|
|
(373)
|
|
|
(2,378)
|
|
|
(402)
|
|
Net earnings
|
|
|
2,413
|
|
|
3,139
|
|
|
8,963
|
|
|
12,255
|
|
Net earnings attributable to non-controlling interest
|
|
|
(526)
|
|
|
(411)
|
|
|
(2,933)
|
|
|
(1,085)
|
|
Net earnings attributable to Century Casinos, Inc. shareholders
|
|
$
|
1,887
|
|
$
|
2,728
|
|
$
|
6,030
|
|
$
|
11,170
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share attributable to Century Casinos, Inc.:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.08
|
|
$
|
0.11
|
|
$
|
0.25
|
|
$
|
0.46
|
|
Diluted
|
|
$
|
0.08
|
|
$
|
0.11
|
|
$
|
0.25
|
|
$
|
0.46
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
24,440
|
|
|
24,399
|
|
|
24,452
|
|
|
24,389
|
|
Diluted
|
|
|
24,675
|
|
|
24,440
|
|
|
24,644
|
|
|
24,430
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CENTURY CASINOS, INC. AND SUBSIDIARIES
|
|
FINANCIAL INFORMATION – US GAAP BASIS
|
|
Century Casinos, Inc.
|
|
Condensed Consolidated Balance Sheets
|
|
(Amounts in thousands)
|
|
|
September 30,
|
|
December 31,
|
|
|
2016
|
|
2015
|
|
Assets
|
|
|
|
|
|
|
|
Current assets
|
|
$
|
39,604
|
|
$
|
34,540
|
|
Property and equipment, net
|
|
|
134,132
|
|
|
131,582
|
|
Other assets
|
|
|
45,748
|
|
|
20,961
|
|
Total assets
|
|
$
|
219,484
|
|
$
|
187,083
|
|
|
|
|
|
|
|
|
Liabilities and Equity
|
|
|
|
|
|
|
|
Current liabilities
|
|
$
|
24,845
|
|
$
|
23,300
|
|
Non-current liabilities
|
|
|
56,786
|
|
|
36,508
|
|
Century Casinos, Inc. shareholders' equity
|
|
|
131,717
|
|
|
122,416
|
|
Non-controlling interest
|
|
|
6,136
|
|
|
4,859
|
|
Total liabilities and equity
|
|
$
|
219,484
|
|
$
|
187,083
|
|
|
|
CENTURY CASINOS, INC. AND SUBSIDIARIES
|
|
SUPPLEMENTAL INFORMATION
|
|
Century Casinos, Inc.
|
|
Constant Currency Results* (unaudited)
|
|
(Amounts in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months
|
|
|
|
For the Nine Months
|
|
|
|
|
Ended September 30,
|
|
|
|
Ended September 30,
|
|
|
|
|
2016
|
|
2015
|
|
% Change
|
|
2016
|
|
2015
|
|
% Change
|
|
|
Net operating revenue as reported (GAAP)
|
$
|
34,526
|
|
$
|
33,526
|
|
3%
|
|
$
|
102,257
|
|
$
|
101,803
|
|
0%
|
|
|
Foreign currency impact vs. 2015
|
|
403
|
|
|
|
|
|
|
|
1,733
|
|
|
|
|
|
|
|
Net operating revenue constant currency (non-GAAP)*
|
$
|
34,929
|
|
$
|
33,526
|
|
4%
|
|
$
|
103,990
|
|
$
|
101,803
|
|
2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings from operations (GAAP)
|
$
|
3,835
|
|
$
|
4,082
|
|
(6%)
|
|
$
|
11,761
|
|
$
|
14,021
|
|
(16%)
|
|
|
Foreign currency impact vs. 2015
|
|
45
|
|
|
|
|
|
|
|
222
|
|
|
|
|
|
|
|
Earnings from operations (non-GAAP)*
|
$
|
3,880
|
|
$
|
4,082
|
|
(5%)
|
|
$
|
11,983
|
|
$
|
14,021
|
|
(15%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings (loss) attributable to Century Casinos, Inc. shareholders as
reported (GAAP)
|
$
|
1,887
|
|
$
|
2,728
|
|
(31%)
|
|
$
|
6,030
|
|
$
|
11,170
|
|
(46%)
|
|
|
Foreign currency impact vs. 2015
|
|
68
|
|
|
|
|
|
|
|
31
|
|
|
|
|
|
|
|
Net earnings (loss) attributable to Century Casinos, Inc. shareholders
constant currency (non-GAAP)*
|
$
|
1,955
|
|
$
|
2,728
|
|
(28%)
|
|
$
|
6,061
|
|
$
|
11,170
|
|
(46%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA (non-GAAP)**
|
$
|
6,271
|
|
$
|
6,719
|
|
(7%)
|
|
$
|
18,742
|
|
$
|
18,292
|
|
3%
|
|
|
Foreign currency impact vs. 2015
|
|
64
|
|
|
|
|
|
|
|
313
|
|
|
|
|
|
|
|
Adjusted EBITDA constant currency (non-GAAP)*
|
$
|
6,335
|
|
$
|
6,719
|
|
(6%)
|
|
$
|
19,055
|
|
$
|
18,292
|
|
4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Century Casinos, Inc.
|
|
Adjusted EBITDA Margins *** (unaudited)
|
|
|
|
|
|
|
For the Three Months
|
For the Nine Months
|
|
Ended September 30,
|
Ended September 30,
|
|
2016
|
2015
|
2016
|
2015
|
|
Canada
|
28%
|
32%
|
30%
|
34%
|
|
United States
|
27%
|
27%
|
25%
|
24%
|
|
Poland
|
15%
|
14%
|
15%
|
14%
|
|
Corporate and Other
|
(140%)
|
(119%)
|
(152%)
|
(59%)
|
|
Consolidated Adjusted EBITDA Margin
|
18%
|
20%
|
18%
|
18%
|
|
|
|
Century Casinos, Inc.
|
|
Reconciliation of Adjusted EBITDA ** to Net Earnings (Loss) Attributable to
Century Casinos, Inc. Shareholders by Segment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended September 30, 2016
|
|
Amounts in thousands
|
Canada
|
|
United States
|
|
Poland
|
|
Corporate
and Other
|
|
Total
|
|
Net earnings (loss)
|
$
|
1,467
|
|
$
|
1,000
|
|
$
|
684
|
|
$
|
(1,264)
|
|
$
|
1,887
|
|
Interest expense (income), net
|
|
655
|
|
|
0
|
|
|
(1)
|
|
|
(5)
|
|
|
649
|
|
Income taxes (benefit)
|
|
365
|
|
|
614
|
|
|
319
|
|
|
(505)
|
|
|
793
|
|
Depreciation and amortization
|
|
775
|
|
|
624
|
|
|
629
|
|
|
105
|
|
|
2,133
|
|
Non-controlling interest
|
|
183
|
|
|
0
|
|
|
343
|
|
|
0
|
|
|
526
|
|
Non-cash stock-based compensation
|
|
0
|
|
|
0
|
|
|
0
|
|
|
192
|
|
|
192
|
|
(Gain) loss on foreign currency transactions and other
|
|
(71)
|
|
|
0
|
|
|
48
|
|
|
3
|
|
|
(20)
|
|
Loss on disposition of fixed assets
|
|
5
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
5
|
|
Acquisition costs
|
|
0
|
|
|
0
|
|
|
0
|
|
|
106
|
|
|
106
|
|
Adjusted EBITDA
|
$
|
3,379
|
|
$
|
2,238
|
|
$
|
2,022
|
|
$
|
(1,368)
|
|
$
|
6,271
|
|
|
|
CENTURY CASINOS, INC. AND SUBSIDIARIES
|
|
SUPPLEMENTAL INFORMATION
|
|
Century Casinos, Inc.
|
|
Reconciliation of Adjusted EBITDA ** to Net Earnings Attributable to Century
Casinos, Inc. Shareholders by Segment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended September 30, 2015
|
|
Amounts in thousands
|
Canada
|
|
United States
|
|
Poland
|
|
Corporate
and Other
|
|
Total
|
|
Net earnings (loss)
|
$
|
1,957
|
|
$
|
931
|
|
$
|
536
|
|
$
|
(696)
|
|
$
|
2,728
|
|
Interest expense (income), net
|
|
783
|
|
|
0
|
|
|
31
|
|
|
(4)
|
|
|
810
|
|
Income taxes (benefit)
|
|
519
|
|
|
571
|
|
|
227
|
|
|
(944)
|
|
|
373
|
|
Depreciation and amortization
|
|
644
|
|
|
638
|
|
|
678
|
|
|
118
|
|
|
2,078
|
|
Non-controlling interest
|
|
145
|
|
|
0
|
|
|
266
|
|
|
0
|
|
|
411
|
|
Non-cash stock-based compensation
|
|
0
|
|
|
0
|
|
|
0
|
|
|
423
|
|
|
423
|
|
(Gain) loss on foreign currency transactions and other
|
|
(148)
|
|
|
0
|
|
|
(98)
|
|
|
6
|
|
|
(240)
|
|
Loss on disposition of fixed assets
|
|
2
|
|
|
0
|
|
|
131
|
|
|
3
|
|
|
136
|
|
Adjusted EBITDA
|
$
|
3,902
|
|
$
|
2,140
|
|
$
|
1,771
|
|
$
|
(1,094)
|
|
$
|
6,719
|
|
|
|
Century Casinos, Inc.
|
|
Reconciliation of Adjusted EBITDA ** to Net Earnings (Loss) Attributable to
Century Casinos, Inc. Shareholders by Segment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Nine Months Ended September 30, 2016
|
|
Amounts in thousands
|
Canada
|
|
United States
|
|
Poland
|
|
Corporate
and Other
|
|
Total
|
|
Net earnings (loss)
|
$
|
5,076
|
|
$
|
2,378
|
|
$
|
2,029
|
|
$
|
(3,453)
|
|
$
|
6,030
|
|
Interest expense (income), net
|
|
2,189
|
|
|
0
|
|
|
22
|
|
|
(13)
|
|
|
2,198
|
|
Income taxes (benefit)
|
|
1,477
|
|
|
1,460
|
|
|
936
|
|
|
(1,495)
|
|
|
2,378
|
|
Depreciation and amortization
|
|
2,246
|
|
|
1,875
|
|
|
1,863
|
|
|
276
|
|
|
6,260
|
|
Non-controlling interest
|
|
1,918
|
|
|
0
|
|
|
1,015
|
|
|
0
|
|
|
2,933
|
|
Non-cash stock-based compensation
|
|
0
|
|
|
0
|
|
|
0
|
|
|
573
|
|
|
573
|
|
(Gain) loss on foreign currency transactions and other
|
|
(1,616)
|
|
|
0
|
|
|
(174)
|
|
|
12
|
|
|
(1,778)
|
|
Loss on disposition of fixed assets
|
|
26
|
|
|
3
|
|
|
13
|
|
|
0
|
|
|
42
|
|
Acquisition costs
|
|
0
|
|
|
0
|
|
|
0
|
|
|
106
|
|
|
106
|
|
Adjusted EBITDA
|
$
|
11,316
|
|
$
|
5,716
|
|
$
|
5,704
|
|
$
|
(3,994)
|
|
$
|
18,742
|
|
|
|
CENTURY CASINOS, INC. AND SUBSIDIARIES
|
|
SUPPLEMENTAL INFORMATION
|
|
Century Casinos, Inc.
|
|
Reconciliation of Adjusted EBITDA ** to Net Earnings Attributable to Century
Casinos, Inc. Shareholders by Segment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Nine Months Ended September 30, 2015
|
|
Amounts in thousands
|
Canada
|
|
United States
|
|
Poland
|
|
Corporate
and Other
|
|
|
Total
|
|
Net earnings
|
$
|
6,355
|
|
$
|
2,125
|
|
$
|
1,884
|
|
$
|
806
|
|
$
|
11,170
|
|
Interest expense (income), net
|
|
2,406
|
|
|
0
|
|
|
110
|
|
|
(10)
|
|
|
2,506
|
|
Income taxes (benefit)
|
|
1,479
|
|
|
1,301
|
|
|
743
|
|
|
(3,121)
|
|
|
402
|
|
Depreciation and amortization
|
|
1,635
|
|
|
1,904
|
|
|
1,925
|
|
|
316
|
|
|
5,780
|
|
Non-controlling interest
|
|
143
|
|
|
0
|
|
|
942
|
|
|
0
|
|
|
1,085
|
|
Non-cash stock-based compensation
|
|
0
|
|
|
0
|
|
|
0
|
|
|
1,230
|
|
|
1,230
|
|
Gain on foreign currency transactions and other
|
|
(670)
|
|
|
0
|
|
|
(466)
|
|
|
(6)
|
|
|
(1,142)
|
|
Loss on disposition of fixed assets
|
|
4
|
|
|
0
|
|
|
273
|
|
|
4
|
|
|
281
|
|
Preopening expenses
|
|
345
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
345
|
|
Other one-time income
|
|
0
|
|
|
0
|
|
|
0
|
|
|
(3,365)
|
|
|
(3,365)
|
|
Adjusted EBITDA
|
$
|
11,697
|
|
$
|
5,330
|
|
$
|
5,411
|
|
$
|
(4,146)
|
|
$
|
18,292
|
|
|
|
CENTURY CASINOS, INC. AND SUBSIDIARIES
|
|
SUPPLEMENTAL INFORMATION
|
* The impact of foreign exchange rates is highly variable and difficult to predict. The Company uses a Constant
Currency basis to show the impact from foreign exchange rates on current period revenue compared to prior period revenue using
the prior period's foreign exchange rates. In order to properly understand the underlying business trends and performance of the
Company's ongoing operations, management believes that investors may find it useful to consider the impact of excluding changes in
foreign exchange rates from the Company's net operating revenue, earnings from operations, net earnings (loss) attributable to
Century Casinos, Inc. shareholders and Adjusted EBITDA. Constant currency results are calculated by dividing the current quarter or
year to date local currency segment results by the prior year's average exchange rate for the quarter or year as reported in Item 1
of the Company's Quarterly Report on Form 10-Q and comparing them to actual U.S. dollar results for the prior quarter or year.
** The Company defines Adjusted EBITDA 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 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. 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 the Company and its properties. 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.
Adjusted EBITDA 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) attributable to Century Casinos, Inc.
shareholders above.
*** The Company defines Adjusted EBITDA margin as Adjusted EBITDA divided by net operating revenue. Adjusted EBITDA
margin is a non-GAAP measure. Management uses this margin as one of several measures to evaluate the efficiency of the Company's
casino operations.
|
CENTURY CASINOS, INC. AND SUBSIDIARIES
|
|
SUPPLEMENTAL INFORMATION
|
**** The table below presents the Company's operating results and constant currency* results for the nine months ended
September 30, 2016 compared to the nine months ended September 30, 2015
without the impact of the $3.4 million in earnings received from the termination agreement with
Norwegian (the "Termination Agreement") in the second quarter of 2015. Earnings from the Termination Agreement did not impact
Adjusted EBITDA**.
|
|
|
|
|
|
|
|
|
|
For the Nine Months
|
|
|
|
|
Ended September 30,
|
|
|
|
|
2016
|
|
2015
|
|
% Change
|
|
|
Net operating revenue as reported (GAAP)
|
$
|
102,257
|
|
$
|
101,803
|
|
0%
|
|
|
Less: Earnings from the Termination Agreement
|
|
|
|
|
(3,365)
|
|
|
|
|
Foreign currency impact vs. 2015
|
|
1,733
|
|
|
|
|
|
|
|
Net operating revenue constant currency (non-GAAP)*
|
$
|
103,990
|
|
$
|
98,438
|
|
6%
|
|
|
|
|
|
|
|
|
|
|
|
Earnings from operations as reported (GAAP)
|
$
|
11,761
|
|
$
|
14,021
|
|
(16%)
|
|
|
Less: Earnings from the Termination Agreement
|
|
|
|
|
(3,365)
|
|
|
|
|
Foreign currency impact vs. 2015
|
|
222
|
|
|
|
|
|
|
|
Earnings from operations constant currency (non-GAAP)*
|
$
|
11,983
|
|
$
|
10,656
|
|
12%
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings (loss) attributable to Century Casinos, Inc. shareholders as
reported (GAAP)
|
$
|
6,030
|
|
$
|
11,170
|
|
(46%)
|
|
|
Less: Earnings from the Termination Agreement
|
|
|
|
|
(3,264)
|
|
|
|
|
Foreign currency impact vs. 2015
|
|
31
|
|
|
|
|
|
|
|
Net earnings (loss) attributable to Century Casinos, Inc. shareholders
constant currency (non-GAAP)*
|
$
|
6,061
|
|
$
|
7,906
|
|
(23%)
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA (non-GAAP)**
|
$
|
18,742
|
|
$
|
18,292
|
|
3%
|
|
|
Foreign currency impact vs. 2015
|
|
313
|
|
|
|
|
|
|
|
Adjusted EBITDA constant currency (non-GAAP)*
|
$
|
19,055
|
|
$
|
18,292
|
|
4%
|
|
|
|
|
|
|
|
|
|
|
|
|
CENTURY CASINOS, INC. AND SUBSIDIARIES
|
|
SUPPLEMENTAL INFORMATION
|
About Century Casinos, Inc.:
Century Casinos, Inc. is an international casino entertainment company that operates worldwide. The Company owns and operates
Century Casino & Hotels in Cripple Creek and Central City,
Colorado, and in Edmonton, Alberta, Canada and the Century Casino in Calgary and in St. Albert, Alberta, Canada. Through its Austrian subsidiary,
Century Casinos Europe GmbH ("CCE"), the Company holds a 66.6% ownership interest in Casinos Poland Ltd., the owner and operator of
eight casinos in Poland. The Company, through CCE, also holds a 75% ownership interest in both
Century Downs Racetrack and Casino, which began operations in the north metropolitan area of Calgary,
Alberta, Canada in April 2015, and Century Bets! Inc., which began operating the pari-mutuel
off-track horse betting network in southern Alberta, Canada in May
2015. The Company operates 13 ship-based casinos with four cruise ship owners. The Company manages the operations of the
casino at the Hilton Aruba Caribbean Resort and Casino. The Company, through CCE, also owns a 7.5% interest in, and provides
consulting services to, Mendoza Central Entretenimientos S.A., a company that provides gaming-related services to Casino de Mendoza
in Mendoza, Argentina. The Company continues to pursue other international projects in various
stages of development.
Century Casinos' common stock trades on The NASDAQ Capital Market® under the symbol CNTY.
For more information about Century Casinos, visit our website at www.cnty.com.
|
CENTURY CASINOS, INC. AND SUBSIDIARIES
|
|
SUPPLEMENTAL INFORMATION
|
This release may contain "forward-looking statements" within the meaning of Section 27A of the Securities 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, operating efficiencies, synergies and operational performance, the prospects for new projects and projects in
development, including Century Casino St. Albert and Century Mile, the anticipated timing and costs of the Century Mile project,
debt repayment, investments in joint ventures, outcomes of legal proceedings 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 31, 2015.
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.
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/century-casinos-inc-announces-third-quarter-2016-results-300354711.html
SOURCE Century Casinos, Inc.
