UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549



FORM 8-K





CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934



Date of Report (Date of earliest event reported): March 13, 2020





CENTURY CASINOS, INC.

(Exact Name of Registrant as specified in its charter)





 

 

Delaware

0-22900

84-1271317

(State or other jurisdiction

(Commission

(I.R.S. Employer

of incorporation)

File Number)

Identification Number)



 



 

455 E. Pikes Peak Ave., Suite 210, Colorado Springs, Colorado

80903

(Address of principal executive offices)

(Zip Code)



 

Registrant’s telephone number, including area code:

719-527-8300





Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:



 Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)



 Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)



 Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))



 Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))



Securities registered pursuant to Section 12(b) of the Act:





 

 

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock, $0.01 Per Share Par Value

CNTY

Nasdaq Capital Market, Inc.



Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).



Emerging growth company 



If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. 




 

Item 2.02     Results of Operations and Financial Condition.



On March 13, 2020, Century Casinos, Inc., a Delaware corporation (the “Company”), issued a press release reporting its financial results for the fourth quarter of 2019. A copy of the press release is being furnished as Exhibit 99.1 to this Current Report.



Item 7.01    Regulation FD Disclosure.



The Company is furnishing as Exhibit 99.2 a presentation to be used in connection with the Company’s fourth quarter 2019 earnings conference call on Friday,  March 13, 2020, and for future meetings with investors, stockholders and analysts.



The information in this report and Exhibits 99.1 and 99.2 attached hereto (i) is being furnished and shall not be deemed “filed” for the purpose of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, and (ii) shall not be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.



This report (including Exhibits 99.1 and 99.2) may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on the current beliefs and expectations of the Company’s management and are subject to significant risks and uncertainties. Actual results may differ from those set forth in the forward-looking statements. Factors that could cause the Company’s actual results to differ materially from those described in the forward-looking statements can be found in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019 that has been filed with the Securities and Exchange Commission. The Company does not undertake to update the forward-looking statements to reflect the impact of circumstances or events that may arise after the date of the forward-looking statements.



Item 9.01     Financial Statements and Exhibits.



(d)  Exhibits





 

 

Exhibit No.

 

Description

99.1

 

Century Casinos, Inc. Press Release dated March 13, 2020

99.2

 

Century Casinos, Inc. Investor Presentation dated March 13, 2020





SIGNATURE



Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.





Century Casinos, Inc.



Date: March 13, 2020

By: /s/ Margaret Stapleton

Margaret  Stapleton

Chief Financial Officer




Exhibit 991 Earnings Release Q4 2019



March 13, 2020

PRESS RELEASE



Century Casinos, Inc. Announces Fourth Quarter and Full Year 2019 Results



Colorado Springs, Colorado – March 13, 2020 – Century Casinos, Inc. (Nasdaq Capital Market®: CNTY) today announced its financial results for the three months and year ended December 31, 2019.  



Fourth Quarter 2019 Highlights*

·

Net operating revenue was $67.2 million, an increase of 49% from the three months ended December 31, 2018. 

·

Loss from operations was ($14.7) million, a decrease of 846% from the three months ended December 31, 2018.

·

Net loss attributable to Century Casinos, Inc. shareholders was ($20.1) million, a decrease of 4080% from the three months ended December 31, 2018. 

·

Adjusted EBITDA** was $9.8 million, an increase of 69% from the three months ended December 31, 2018. 

·

Loss per share was ($0.68).  



2019 Highlights*

·

Net operating revenue was $218.2 million, an increase of 29% from the year ended December 31, 2018.

·

Loss from operations was ($5.2) million, a decrease of 155% from the year ended December 31, 2018.

·

Net loss attributable to Century Casinos, Inc. shareholders was ($19.2) million, a decrease of 664% from the year ended December 31, 2018.

·

Adjusted EBITDA** was $30.3 million, an increase of 30% from the year ended December 31, 2018.

·

Basic loss per share was ($0.65), a decrease of 642% from the year ended December 31, 2018. 

·

Diluted loss per share was ($0.65), a decrease of 691% from the year ended December 31, 2018.

·

Book value per share*** at December 31, 2019 was $5.54.



In December 2019, the Company determined that the intangible and tangible assets at Century Casino Bath were impaired. The impairment, which totaled $16.5 million, was determined after evaluating losses incurred by the casino since operations began and future forecasts of continued losses due to the current regulatory environment for casinos in England.



On December 6, 2019, the Company completed its acquisition (the “Acquisition”) of the operations of Isle Casino Cape Girardeau, located in Cape Girardeau, Missouri, Lady Luck Caruthersville, located in Caruthersville, Missouri, and Mountaineer Casino, Racetrack and Resort located in New Cumberland, West Virginia (collectively, the “Acquired Casinos”), from Eldorado Resorts, Inc. for an aggregate purchase price of approximately $110.6 million. Immediately prior to the Acquisition, the real estate assets underlying the Acquired Casinos were sold to an affiliate of VICI Properties Inc. (“VICI PropCo”). On the closing date, the Company and VICI PropCo entered into a triple net lease agreement (the “Master Lease”) for the three Acquired Casino properties. The Master Lease has an initial annual rent of approximately $25.0 million and an initial term of 15 years, with four five-year renewal options.

 

 

1/13

 


 

The consolidated results for the three months and year ended December 31, 2019 and 2018 are as follows:







 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



For the three months

 

 

For the year

Amounts in thousands, except per share data

ended December 31,

 

 

ended December 31,

Consolidated Results:

 

 

2019

 

 

2018

 

% Change

 

 

2019

 

 

2018

 

% Change

Net Operating Revenue

 

$

67,236 

 

$

45,106 

 

49% 

 

$

218,227 

 

$

168,938 

 

29% 

(Loss) Earnings from Operations

 

 

(14,745)

 

 

1,976 

 

(846%)

 

 

(5,220)

 

 

9,459 

 

(155%)

Net (Loss) Earnings Attributable to Century Casinos, Inc. Shareholders

 

$

(20,140)

 

$

506 

 

(4080%)

 

$

(19,155)

 

$

3,394 

 

(664%)



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA**

 

$

9,776 

 

$

5,801 

 

69% 

 

$

30,281 

 

$

23,377 

 

30% 

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Loss) Earnings Per Share Attributable to Century Casinos, Inc. Shareholders:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

(0.68)

 

$

0.02 

 

(3500%)

 

$

(0.65)

 

$

0.12 

 

(642%)

Diluted

 

$

(0.68)

 

$

0.02 

 

(3500%)

 

$

(0.65)

 

$

0.11 

 

(691%)



 We are pleased with the fourth quarter results and the immediate impact the addition of the three casinos acquired from Eldorado Resorts had on our operating results,” Erwin Haitzmann and Peter Hoetzinger, Co-Chief Executive Officers of Century Casinos remarked. “The acquired casinos have had very encouraging initial results, and we are excited to continue integrating the operations into the Century brand and to see anticipated meaningful growth from this acquisition on Century Casinos in the future,”  Messrs. Haitzmann and Hoetzinger concluded. 



The Company is carefully monitoring the situation caused by the coronavirus (COVID-19) pandemic. Although the entire situation is unpredictable, our management teams are prepared to control what they can control. Our casinos are following and implementing the recommendations from the US Centers for Disease Control and Prevention, which include everyday preventative actions to help prevent the spread of respiratory viruses, such as washing your hands often with soap and water, avoiding touching your eyes, nose, and mouth with unwashed hands, covering your cough or sneeze with a tissue, cleaning and disinfecting frequently touched objects and surfaces and of course staying home when you are sick. We are also putting an extra effort into straight-forward and realistic guest messaging and have stepped-up employee trainings to ensure strict compliance with our policies and procedures. We are in constant communication with our employees to reinforce our sanitation safety procedures in both guest-facing and back-of-house areas. We are sanitizing high-traffic public areas at an increased frequency. Proper procedures are posted in all back-of-house work areas.



To date, COVID-19 has not had a significant impact on our US or Canadian markets, while the market in Poland has been weakening by approximately ten percent. Our customer base is very diversified within North America. Our casinos are ‘local’ casinos in urban and suburban locations, with the vast majority of our business from customers who live within an hour from our facilities. Our casinos have negligible meeting and convention business and few of our customers travel by air to visit us. This may temper the impact of COVID-19 on our business, but this situation continues to evolve and could adversely impact us until the virus runs its course.





 

 

2/13

 


 

Reportable Segment  Results*

The table below shows the Company’s operating segments that are included in each of the Company’s reportable segments as of December 31, 2019:







 

 

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 Casino Calgary



 

Century Downs Racetrack and Casino



 

Century Bets! Inc.

Poland

Poland

Casinos Poland

Corporate and Other

Corporate and Other

Cruise Ships & Other



 

Century Casino Bath



 

Corporate Other



The Company’s net operating revenue increased by $22.1 million, or 49%, and by $49.3 million, or 29%, for the three months and year ended December 31, 2019,  compared to the three months and year ended December 31, 2018.  Following is a summary of the changes in net operating revenue by reportable segment for the three months and year ended December 31, 2019,  compared to the three months and year ended December 31, 2018:











 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

Net Operating Revenue



 

For the three months

 

 

 

 

 

 

For the year

 

 

 

 

 



 

ended December 31,

 

 

 

 

 

 

ended December 31,

 

 

 

 

 

Amounts in thousands

 

2019

 

2018

 

$ Change

 

% Change

 

2019

 

2018

 

$ Change

 

% Change

United States

 

$

23,926 

 

$

7,938 

 

$

15,988 

 

201% 

 

$

49,998 

 

$

33,483 

 

$

16,515 

 

49% 

Canada

 

 

20,291 

 

 

15,678 

 

 

4,613 

 

29% 

 

 

80,650 

 

 

61,361 

 

 

19,289 

 

31% 

Poland

 

 

21,675 

 

 

19,514 

 

 

2,161 

 

11% 

 

 

81,894 

 

 

68,209 

 

 

13,685 

 

20% 

Corporate and Other

 

 

1,344 

 

 

1,976 

 

 

(632)

 

(32%)

 

 

5,685 

 

 

5,885 

 

 

(200)

 

(3%)

Consolidated

 

$

67,236 

 

$

45,106 

 

$

22,130 

 

49% 

 

$

218,227 

 

$

168,938 

 

$

49,289 

 

29% 



 

 

3/13

 


 

The Company’s earnings from operations decreased by ($16.7) million, or (846%), and by ($14.7) million, or (155%), for the three months and year ended December 31, 2019,  compared to the three months and year ended December 31, 2018.   Following is a summary of the changes in earnings (loss) from operations by reportable segment for the three months and year ended December 31, 2019,  compared to the three months and year ended December 31, 2018:  







 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

Earnings (Loss) from Operations



 

For the three months

 

 

 

 

 

 

For the year

 

 

 

 

 



 

ended December 31,

 

 

 

 

 

 

ended December 31,

 

 

 

 

 

Amounts in thousands

 

2019

 

2018

 

$ Change

 

% Change

 

2019

 

2018

 

$ Change

 

% Change

United States

 

$

4,685 

 

$

1,033 

 

$

3,652 

 

354% 

 

$

9,478 

 

$

5,882 

 

$

3,596 

 

61% 

Canada

 

 

4,000 

 

 

3,675 

 

 

325 

 

9% 

 

 

16,115 

 

 

14,633 

 

 

1,482 

 

10% 

Poland

 

 

1,627 

 

 

460 

 

 

1,167 

 

254% 

 

 

5,915 

 

 

145 

 

 

5,770 

 

3979% 

Corporate and Other

 

 

(25,057)

 

 

(3,192)

 

 

(21,865)

 

(685%)

 

 

(36,728)

 

 

(11,201)

 

 

(25,527)

 

(228%)

Consolidated

 

$

(14,745)

 

$

1,976 

 

$

(16,721)

 

(846%)

 

$

(5,220)

 

$

9,459 

 

$

(14,679)

 

(155%)









Net earnings attributable to Century Casinos, Inc. shareholders decreased by ($20.6) million, or (4080%), and by ($22.5) million, or (664%), for the three months and year ended December 31, 2019,  compared to the three months and year ended December 31, 2018.  Following is a summary of the changes in net earnings (loss) attributable to Century Casinos, Inc. shareholders by reportable segment for the three months and year ended December 31, 2019,  compared to the three months and year ended December 31, 2018:  







 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

Net Earnings (Loss) Attributable to Century Casinos, Inc. Shareholders



 

For the three months

 

 

 

 

 

 

For the year

 

 

 

 

 



 

ended December 31,

 

 

 

 

 

 

ended December 31,

 

 

 

 

 

Amounts in thousands

 

2019

 

2018

 

$ Change

 

% Change

 

2019

 

2018

 

$ Change

 

% Change

United States

 

$

2,261 

 

$

767 

 

$

1,494 

 

195% 

 

$

5,825 

 

$

4,373 

 

$

1,452 

 

33% 

Canada

 

 

948 

 

 

2,077 

 

 

(1,129)

 

(54%)

 

 

6,669 

 

 

7,715 

 

 

(1,046)

 

(14%)

Poland

 

 

1,352 

 

 

179 

 

 

1,173 

 

655% 

 

 

3,466 

 

 

(153)

 

 

3,619 

 

2365% 

Corporate and Other

 

 

(24,701)

 

 

(2,517)

 

 

(22,184)

 

(881%)

 

 

(35,115)

 

 

(8,541)

 

 

(26,574)

 

(311%)

Consolidated

 

$

(20,140)

 

$

506 

 

$

(20,646)

 

(4080%)

 

$

(19,155)

 

$

3,394 

 

$

(22,549)

 

(664%)



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.











 

 

4/13

 


 

The Company’s Adjusted EBITDA** increased by $4.0 million, or 69%, and by $6.9 million, or 30%, for the three months and year ended December 31, 2019 compared to the three months and year ended December 31, 2018.  Following is a summary of the changes in Adjusted EBITDA** by reportable segment for the three months and year ended December 31, 2019 compared to the three months and year ended December 31, 2018:







 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

Adjusted EBITDA**



 

For the three months

 

 

 

 

 

 

For the year

 

 

 

 

 



 

ended December 31,

 

 

 

 

 

 

ended December 31,

 

 

 

 

 

Amounts in thousands

 

2019

 

2018

 

$ Change

 

% Change

 

2019

 

2018

 

$ Change

 

% Change

United States

 

$

5,441 

 

$

1,582 

 

$

3,859 

 

244% 

 

$

11,825 

 

$

8,061 

 

$

3,764 

 

47% 

Canada

 

 

5,378 

 

 

4,991 

 

 

387 

 

8% 

 

 

21,212 

 

 

19,522 

 

 

1,690 

 

9% 

Poland

 

 

2,484 

 

 

1,733 

 

 

751 

 

43% 

 

 

9,392 

 

 

4,890 

 

 

4,502 

 

92% 

Corporate and Other

 

 

(3,527)

 

 

(2,505)

 

 

(1,022)

 

(41%)

 

 

(12,148)

 

 

(9,096)

 

 

(3,052)

 

(34%)

Consolidated

 

$

9,776 

 

$

5,801 

 

$

3,975 

 

69% 

 

$

30,281 

 

$

23,377 

 

$

6,904 

 

30% 





Balance Sheet and Liquidity

As of December 31, 2019, the Company had $54.8 million in cash and cash equivalents and  $179.0 million in outstanding debt on its balance sheet compared to $45.6 million in cash and cash equivalents and $59.5 million in outstanding debt at December 31, 2018.  The outstanding debt as of December 31, 2019 included the following: $170.0 million related to the Company’s credit agreement with a group of lenders led by Macquarie Capital that the Company entered into in December 2019 in connection with the Acquisition, replacing the Company’s credit agreement with the Bank of Montreal; $2.0 million of bank debt related to Casinos Poland; $2.0 million of bank debt related to Century Casino Bath; and $15.0 million related to a long-term land lease for CDR, net of $10.0 million in deferred financing costs. 





Conference Call Information

Today the Company will post a copy of its Annual Report on Form 10-K filed with the SEC for the year ended December 31, 2019 on its website at www.cnty.com/investor/financials/sec-filings. The Company will also post a presentation on the year end results on its website at www.cnty.com/investor/presentations.



The Company will host its fourth quarter 2019 earnings conference call today,  Friday,  March 13th, at 8:00 am MDT. 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 www.centurycasinos.adobeconnect.com/earningsrelease or obtain a recording of the call on the Company’s website until March 31, 2020 at www.cnty.com/investor/financials/sec-filings.

 

 

5/13

 


 

CENTURY CASINOS, INC. AND SUBSIDIARIES

FINANCIAL INFORMATION – US GAAP BASIS 



Condensed Consolidated Statements of (Loss) Earnings









 

 

 

 

 

 

 

 

 

 

 

 

   

For the three months

For the year



ended December 31,

ended December 31,

Amounts in thousands, except for per share information

 

2019

 

2018

 

2019

 

2018

Operating revenue:

 

 

 

 

 

 

 

 

 

 

 

 

Net operating revenue

 

$

67,236 

 

$

45,106 

 

$

218,227 

 

$

168,938 

Operating costs and expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Total operating costs and expenses

 

 

81,981 

 

 

43,152 

 

 

223,446 

 

 

159,502 

Earnings (loss) from equity investment

 

 

 —

 

 

22 

 

 

(1)

 

 

23 

(Loss) earnings from operations

 

 

(14,745)

 

 

1,976 

 

 

(5,220)

 

 

9,459 

Non-operating income (expense), net

 

 

(3,569)

 

 

(1,053)

 

 

(6,747)

 

 

(3,536)

(Loss) earnings before income taxes

 

 

(18,314)

 

 

923 

 

 

(11,967)

 

 

5,923 

Income tax provision

 

 

(955)

 

 

(133)

 

 

(4,174)

 

 

(1,917)

Net (loss) earnings

 

 

(19,269)

 

 

790 

 

 

(16,141)

 

 

4,006 

Net earnings attributable to non-controlling interests

 

 

(871)

 

 

(284)

 

 

(3,014)

 

 

(612)

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

 

$

(20,140)

 

$

506 

 

$

(19,155)

 

$

3,394 



 

 

 

 

 

 

 

 

 

 

 

 

(Loss) earnings per share attributable to Century Casinos, Inc. shareholders:

 

 

 

 

 

 

 

 

 

 

 

 

 Basic

 

$

(0.68)

 

$

0.02 

 

$

(0.65)

 

$

0.10 

 Diluted

 

$

(0.68)

 

$

0.02 

 

$

(0.65)

 

$

0.10 



 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares

 

 

 

 

 

 

 

 

 

 

 

 

 Basic

 

 

29,474 

 

 

29,439 

 

 

29,452 

 

 

29,401 

 Diluted

 

 

29,474 

 

 

29,861 

 

 

29,452 

 

 

29,962 



 

 

6/13

 


 

CENTURY CASINOS, INC. AND SUBSIDIARIES

FINANCIAL INFORMATION – US GAAP BASIS 





 

 

 

 

 

 

Condensed Consolidated Balance Sheets

 

 

 

 

 

 



 

December 31,

 

December 31,

Amounts in thousands

 

2019

 

2018

Assets

 

 

 

 

 

 

Current assets

 

$

79,366 

 

$

54,974 

Property and equipment, net

 

 

503,933 

 

 

187,017 

Other assets

 

 

143,601 

 

 

36,834 

Total assets

 

$

726,900 

 

$

278,825 



 

 

 

 

 

 

Liabilities and Equity

 

 

 

 

 

 

Current liabilities

 

$

56,570 

 

$

50,020 

Non-current liabilities

 

 

498,255 

 

 

45,422 

Century Casinos, Inc. shareholders' equity

 

 

163,306 

 

 

176,321 

Non-controlling interests

 

 

8,769 

 

 

7,062 

Total liabilities and equity

 

$

726,900 

 

$

278,825 



 

 

7/13

 


 

CENTURY CASINOS, INC. AND SUBSIDIARIES

SUPPLEMENTAL INFORMATION

Constant Currency* Results (unaudited)







 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

For the three months

 

 

 

For the year

 

 



 

ended December 31,

 

 

 

ended December 31,

 

 

Amounts in thousands

 

 

2019

 

 

2018

 

% Change

 

 

2019

 

 

2018

 

% Change

Net operating revenue as reported (GAAP)

 

$

67,236 

 

$

45,106 

 

49% 

 

$

218,227 

 

$

168,938 

 

29% 

Foreign currency impact vs. 2018

 

 

559 

 

 

 

 

 

 

 

7,207 

 

 

 

 

 

Net operating revenue constant currency (non-GAAP)*

 

$

67,795 

 

$

45,106 

 

50% 

 

$

225,434 

 

$

168,938 

 

33% 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Loss) earnings from operations (GAAP)

 

$

(14,745)

 

$

1,976 

 

(846%)

 

$

(5,220)

 

$

9,459 

 

(155%)

Foreign currency impact vs. 2018

 

 

934 

 

 

 

 

 

 

 

955 

 

 

 

 

 

(Loss) earnings from operations constant currency (non-GAAP)*

 

$

(13,811)

 

$

1,976 

 

(799%)

 

$

(4,265)

 

$

9,459 

 

(145%)



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

$

(20,140)

 

$

506 

 

(4080%)

 

$

(19,155)

 

$

3,394 

 

(664%)

Foreign currency impact vs. 2018

 

 

339 

 

 

 

 

 

 

 

(40)

 

 

 

 

 

Net (loss) earnings attributable to Century Casinos, Inc. shareholders constant currency (non-GAAP)*

 

$

(19,801)

 

$

506 

 

(4013%)

 

$

(19,195)

 

$

3,394 

 

(666%)



Gains and losses on foreign currency transactions are added back to net (loss) earnings in the Company’s Adjusted EBITDA** calculations. As such, there is no foreign currency impact to Adjusted EBITDA** when calculating Constant Currency* results.

Adjusted EBITDA Margins *** (unaudited)











 

 

 

 



For the three months

For the year



ended December 31,

ended December 31,



2019

2018

2019

2018

United States

23%  20%  24%  24% 

Canada

27%  32%  26%  32% 

Poland

11%  9%  11%  7% 

Corporate and Other

(262%) (127%) (214%) (155%)

Consolidated Adjusted EBITDA Margin

15%  13%  14%  14% 





 

 

8/13

 


 

CENTURY CASINOS, INC. AND SUBSIDIARIES

SUPPLEMENTAL INFORMATION

Reconciliation of Adjusted EBITDA ** to Net Earnings (Loss) Attributable to Century Casinos, Inc. Shareholders by Reportable Segment.  











 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



For the three months ended December 31, 2019

Amounts in thousands

 

United States

 

Canada

 

Poland

 

Corporate and Other

 

Total

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

 

$

2,261 

 

$

948 

 

$

1,352 

 

$

(24,701)

 

$

(20,140)

Interest expense (income), net

 

 

1,635 

 

 

1,456 

 

 

55 

 

 

1,020 

 

 

4,166 

Income taxes (benefit)

 

 

789 

 

 

1,375 

 

 

222 

 

 

(1,431)

 

 

955 

Depreciation and amortization

 

 

756 

 

 

1,356 

 

 

781 

 

 

254 

 

 

3,147 

Net earnings attributable to non-controlling interests

 

 

 

 

195 

 

 

676 

 

 

 

 

871 

Non-cash stock-based compensation

 

 

 

 

 

 

 

 

324 

 

 

324 

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

 

 

 

 

26 

 

 

(678)

 

 

16,704 

 

 

16,052 

Loss on disposition of fixed assets

 

 

 

 

22 

 

 

76 

 

 

 

 

99 

Acquisition costs

 

 

 

 

 

 

 

 

4,302 

 

 

4,302 

Adjusted EBITDA

 

$

5,441 

 

$

5,378 

 

$

2,484 

 

$

(3,527)

 

$

9,776 













 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



For the three months ended December 31, 2018

Amounts in thousands

 

United States

 

Canada

 

Poland

 

Corporate and Other

 

Total

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

 

$

767 

 

$

2,077 

 

$

179 

 

$

(2,517)

 

$

506 

Interest expense (income), net

 

 

 

 

1,084 

 

 

50 

 

 

65 

 

 

1,199 

Income taxes (benefit)

 

 

266 

 

 

435 

 

 

280 

 

 

(848)

 

 

133 

Depreciation and amortization

 

 

548 

 

 

779 

 

 

1,025 

 

 

402 

 

 

2,754 

Net earnings attributable to non-controlling interests

 

 

 

 

174 

 

 

89 

 

 

21 

 

 

284 

Non-cash stock-based compensation

 

 

 

 

 

 

 

 

255 

 

 

255 

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

 

 

 

 

(95)

 

 

(138)

 

 

94 

 

 

(139)

Loss on disposition of fixed assets

 

 

 

 

 

 

27 

 

 

23 

 

 

55 

Pre-opening expenses

 

 

 

 

533 

 

 

221 

 

 

 

 

754 

Adjusted EBITDA

 

$

1,582 

 

$

4,991 

 

$

1,733 

 

$

(2,505)

 

$

5,801 



 

 

9/13

 


 

CENTURY CASINOS, INC. AND SUBSIDIARIES

SUPPLEMENTAL INFORMATION

Reconciliation of Adjusted EBITDA ** to Net Earnings (Loss) Attributable to Century Casinos, Inc. Shareholders by Reportable Segment.









 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



For the Year ended December 31, 2019

Amounts in thousands

 

United States

 

Canada

 

Poland

 

Corporate and Other

 

Total

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

 

$

5,825 

 

$

6,669 

 

$

3,466 

 

$

(35,115)

 

$

(19,155)

Interest expense (income), net

 

 

1,635 

 

 

5,312 

 

 

197 

 

 

1,085 

 

 

8,229 

Income taxes (benefit)

 

 

2,018 

 

 

3,278 

 

 

1,617 

 

 

(2,739)

 

 

4,174 

Depreciation and amortization

 

 

2,330 

 

 

4,539 

 

 

3,064 

 

 

910 

 

 

10,843 

Net earnings (loss) attributable to non-controlling interests

 

 

 

 

1,295 

 

 

1,731 

 

 

(12)

 

 

3,014 

Non-cash stock-based compensation

 

 

 

 

 

 

 

 

1,303 

 

 

1,303 

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

 

 

 

 

(439)

 

 

(1,096)

 

 

16,709 

 

 

15,174 

Loss on disposition of fixed assets

 

 

17 

 

 

20 

 

 

413 

 

 

345 

 

 

795 

Acquisition costs

 

 

 

 

 

 

 

 

5,366 

 

 

5,366 

Pre-opening expenses

 

 

 

 

538 

 

 

 

 

 

 

538 

Adjusted EBITDA

 

$

11,825 

 

$

21,212 

 

$

9,392 

 

$

(12,148)

 

$

30,281 











 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



For the Year ended December 31, 2018

Amounts in thousands

 

United States

 

Canada

 

Poland

 

Corporate and Other

 

Total

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

 

$

4,373 

 

$

7,715 

 

$

(153)

 

$

(8,541)

 

$

3,394 

Interest expense (income), net

 

 

 

 

3,895 

 

 

206 

 

 

12 

 

 

4,114 

Income taxes (benefit)

 

 

1,508 

 

 

2,536 

 

 

595 

 

 

(2,722)

 

 

1,917 

Depreciation and amortization

 

 

2,178 

 

 

3,211 

 

 

3,065 

 

 

945 

 

 

9,399 

Net earnings (loss) attributable to non-controlling interests

 

 

 

 

722 

 

 

(75)

 

 

(35)

 

 

612 

Non-cash stock-based compensation

 

 

 

 

 

 

 

 

868 

 

 

868 

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

 

 

 

 

(235)

 

 

(428)

 

 

 

 

(661)

Loss on disposition of fixed assets

 

 

 

 

10 

 

 

1,054 

 

 

25 

 

 

1,090 

Pre-opening expenses

 

 

 

 

1,668 

 

 

626 

 

 

350 

 

 

2,644 

Adjusted EBITDA

 

$

8,061 

 

$

19,522 

 

$

4,890 

 

$

(9,096)

 

$

23,377 



 

 

10/13

 


 

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 financial information compared to prior period financial information 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,  (loss) earnings from operations and net earnings (loss) attributable to Century Casinos, Inc. shareholders. Constant currency results are calculated by dividing the current quarter or year to date local currency segment results, excluding the local currency impact of foreign currency gains and losses, by the prior year’s average exchange rate for the quarter or year to date and comparing them to actual U.S. dollar results for the prior quarter or year to date. The average exchange rates for the current and prior year are reported in Note 2 to the Consolidated Financial Statements included in Part II, Item 8, “Financial Statements and Supplementary Data” of the Company’s Annual Report on Form 10-K. The average exchange rates for the three months ended December 31, 2019 and 2018 are presented below.





 

 

 

 

 

 



 

 

 

 

 

 



 

For the three months

 

 



 

ended December 31,

 

 

Average Rates

 

2019

 

2018

 

% Change

Canadian dollar (CAD)

 

1.3199 

 

1.3218 

 

0.1% 

Euros (EUR)

 

0.9032 

 

0.8763 

 

(3.1%)

Polish zloty (PLN)

 

3.8702 

 

3.7668 

 

(2.7%)

British pound (GBP)

 

0.7766 

 

0.7773 

 

0.1% 

Source: Pacific Exchange Rate Service

 

 

 

 

 

 



 

 

 

 

 

 

Constant currency information is not a measure of financial performance under generally accepted accounting principles in the United States of America (GAAP) and should not be considered a substitute for net operating revenue, (loss) earnings from operations or net earnings (loss) attributable to Century Casinos, Inc. shareholders as determined in accordance with GAAP.





 

 

11/13

 


 

CENTURY CASINOS, INC. AND SUBSIDIARIES

SUPPLEMENTAL INFORMATION

**  The Company defines Adjusted EBITDA as net earnings (loss) attributable to Century Casinos, Inc. shareholders before interest expense (income), net, income taxes (benefit), depreciation and amortization, non-controlling interests net 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 items, such as acquisition and disposition costs and gain or loss.  Expense related to the Company’s 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. 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 GAAP. Adjusted EBITDA is not considered a measure of performance recognized under 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.









 

 

12/13

 


 

CENTURY CASINOS, INC. AND SUBSIDIARIES

SUPPLEMENTAL INFORMATION

About Century Casinos, Inc.:

Century Casinos, Inc. is a casino entertainment company.  The Company owns and operates Century Casino & Hotels in Cripple Creek and Central City, Colorado, and in Edmonton, Alberta, Canada; the Century Casino in Cape Girardeau and Caruthersville, Missouri, in Calgary and St. Albert, Alberta, Canada and in Bath, England; Mountaineer Casino, Racetrack & Resort in New Cumberland, West Virginia; the Century Mile Racetrack and Casino (“CMR”) in Edmonton, Alberta, Canada; and Century Bets! Inc. (“CBS”). CBS and CMR operate the pari-mutuel off-track horse betting networks in southern and northern Alberta, respectively. Through its Austrian subsidiary, Century Resorts Management GmbH (“CRM”), the Company holds a 66.6% ownership interest in Casinos Poland Ltd., the operator of eight casinos throughout Poland; and a 75% ownership interest in Century Downs Racetrack and Casino in Calgary, Alberta, Canada. The Company operates five ship-based casinos. The Company, through CRM, 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 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.  

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, including the impact of the Acquisition on the Company’s results, the impact of the current coronavirus (COVID-19) pandemic, operating efficiencies, synergies and operational performance, the integration of the Acquired Casinos into our business, the prospects for and timing and costs of new projects, projects in development and other opportunities, our credit agreement with Macquarie Capital, debt repayment, investments in joint ventures, outcomes of legal proceedings, changes in our tax provisions or exposure to additional income tax liabilities, 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, 2019 and in subsequent periodic and current SEC filings we may make. 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.















 

 

13/13

 


Exhibit 992 Investor Presentation Q4 2019

Exhibit 99.2

 



CENTURY CASINOS Financial Results 2019 Century Casinos 1


 



Forward-Looking Statements, Business Environment and Risk Factors. This presentation 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 (the “Exchange Act”), and the Private Securities Litigation Reform Act of 1995. In addition, Century Casinos, Inc. (together with its subsidiaries, the “Company”) may make other written and oral communications from time to time that contain such statements. Forward-looking statements include statements as to industry trends and future expectations of the Company and other matters that do not relate strictly to historical facts and are based on certain assumptions by management at the time such statements are made.  Forward-looking statements in this presentation include statements regarding future results of operations including the impact of the Acquisition (as defined herein) on the Company’s results, the impact of the current coronavirus (COVID-19) pandemic, operating efficiencies, synergies and operational performance, the integration of the Acquired Casinos (as defined herein) into the Company’s business, the prospects for and timing and costs of new projects, projects in development and other opportunities, the Macquarie Credit Agreement (as defined herein), debt repayment, investments in joint ventures, outcomes of legal proceedings, changes in our tax provisions or exposure to additional income tax liabilities, and plans for our casinos and our Company. These statements are often identified by the use of words such as “may,” “will,” “expect,” “believe,” “anticipate,” “intend,” “could,” “estimate,” or “continue,” and similar expressions or variations. These statements are based on the beliefs and assumptions of the management of the Company based on information currently available to management. 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, 2019 (the “2019 Annual Report”) and our subsequent periodic and current reports filed with the SEC. We caution the reader to carefully consider such factors. Furthermore, such forward-looking statements speak only as of the date on which such statements are made. We undertake no obligation to update any forward-looking statements to reflect events or circumstances after the date of such statements.

Century Casinos 2


 



Notes on Presentation In this presentation the term “USD” refers to US dollars, the term “CAD” refers to Canadian dollars, the term “PLN” refers to Polish zloty and the term “GBP” refers to the British pound. Adjusted EBITDA and Adjusted EBITDA margin are non-GAAP financial measures. See Appendix A for the definition and reconciliation of Adjusted EBITDA and Adjusted EBITDA margin. Amounts presented are rounded. As such, rounding differences could occur in period-over-period changes and percentages reported throughout this presentation. The names of the Company’s subsidiaries and certain reporting units are abbreviated on certain of the following slides. See Appendix A for a list of the subsidiaries and their abbreviations. Century Casinos 3


 



2019 Highlights On December 6, 2019, the Company completed its acquisition (the “Acquisition”) of the operations of Isle Casino Cape Girardeau, located in Cape Girardeau, Missouri, Lady Luck Caruthersville, located in Caruthersville, Missouri, and Mountaineer Casino, Racetrack and Resort located in New Cumberland, West Virginia (collectively, the “Acquired Casinos”), from Eldorado Resorts, Inc. for an aggregate purchase price of approximately $107.0 million (subject to an adjustment based on the Acquired Casinos’ working capital and cash at closing). Immediately prior to the Acquisition, the real estate assets underlying the Acquired Casinos were sold to an affiliate of VICI Properties Inc. (“VICI PropCo”). On the closing date, the Company and VICI PropCo entered into a triple net lease agreement (the “Master Lease”) for the three Acquired Casino properties. The Master Lease has an initial annual rent of approximately $25.0 million and an initial term of 15 years, with four five-year renewal options. The Company financed the Acquisition with $170.0 million borrowed under a credit agreement with a group of lenders led by Macquarie Capital (“Macquarie Credit Agreement”), which also replaced the Company’s credit agreement with the Bank of Montreal. Century Casinos 4


 



2019 Net Operating Revenue by Reportable Segment and Operating Segment (in USD) Excluding Corporate Other Reporting Unit CCB, Ships & Other 3% Canada 37% United States 23% Poland 37% CCB, Ships & Other 3% Edmonton 22% Calgary 15% Colorado 16% West Virginia 4% Missouri 3% Poland 37% Century Casinos 5


 



2019 Earnings (Loss) from Operations by Reportable Segment and Operating Segment (in USD) Excluding Corporate Other Reporting Unit CCB, Ships & Other -172% Canada 139% United States 82% Poland 51% CCB, Ships & Other -172% Edmonton 65% Calgary 74% Colorado 51% West Virginia 10% Missouri 21% Poland 51% Century Casinos 6


 



2019 Net Earnings (Loss) Attributable to Century Casinos, Inc. Shareholders by Reportable Segment and Operating Segment (in USD) Excluding Corporate Other Reporting Unit CCB, Ships & Other -435% Poland 73% United States 122% Canada 140% CCB, Ships & Other -435% Edmonton 60% Calgary 80% Colorado 91% West Virginia 9% Missouri 22% Poland 73% Century Casinos 7


 



2019 Adjusted EBITDA* by Reportable Segment and Operating Segment (in USD) Excluding Corporate Other Reporting Unit CCB, Ships & Other -6% Canada 52% United States 30% Poland 24% CCB, Ships & Other -6% Edmonton 26% Calgary 26% Colorado 20% West Virginia 3% Missouri 7% Poland 24% *Adjusted EBITDA is a non-GAAP financial measure. See Appendix A for the definition and reconciliation of Adjusted EBITDA. Century Casinos 8


 



Net Operating Revenue per Quarter (in USD) 0 10 20 30 40 50 60 70 80 Q1 30.4 33.2 36.4 40.6 45.6 Q2 37.9 35.2 37.3 39.6 52.4 Q3 33.5 34.5 41.0 43.6 52.9 Q4 31.9 36.3 39.3 45.1 67.2 2015 2016 2017 2018 2019 Century Casinos 9


 



Balance Sheet (Selected Information in USD) In million (except BVPS)  Total Assets Total Debt Book Value per Share* Net Debt** December 31.2018 726.9 179.0 5.54 134.2 278.8 59.5 6.00 14.4 Change 161% 201% (8%) *Book Value per Share is defined as total Century Casinos, Inc. shareholders’ equity divided by outstanding common shares. **Net Debt is calculated as total long-term debt (including current portion) plus deferred financing costs minus cash and cash equivalents. Net Debt is a non-GAAP financial measure. See Appendix A. Debt as of December 31, 2019 included $170.0 million related to our Macquarie Credit Agreement, $2.0 million related to CPL, $2.0 million related to CCB and $15.0 million related to CDR’s long-term land lease. Capital leases are not included in Total Debt as of December 31, 2019 due to our adoption of Accounting Standards Update 2016-02 Leases, (Topic 842), as of January 1, 2019. Century Casinos 10