cnty-20200807x8k
false000091114700009111472020-08-072020-08-07

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): August 7, 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 August 7, 2020, Century Casinos, Inc., a Delaware corporation (the “Company”), issued a press release reporting its financial results for the second quarter of 2020. 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 second quarter of 2020 earnings conference call on Friday, August 7, 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, the Company’s Current Report on Form 8-K filed on May 8, 2020 and the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2020 that have 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 August 7, 2020

99.2

Century Casinos, Inc. Investor Presentation dated August 7, 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: August 7, 2020

By: /s/ Margaret Stapleton

Margaret Stapleton

Chief Financial Officer

Exhibit 991 Earnings Release Q2 2020



August 7, 2020

PRESS RELEASE



Century Casinos, Inc. Announces Second Quarter 2020 Results



Colorado Springs, ColoradoAugust 7, 2020 – Century Casinos, Inc. (Nasdaq Capital Market®: CNTY) today announced its financial results for the three and six months ended June 30, 2020.  



Second Quarter 2020 Highlights*

·

Net operating revenue was $36.1 million, compared to $52.4 million for the three months ended June 30, 2019, a decrease of (31%). 

·

Losses from operations were ($2.1) million, compared to earnings of $2.6 million for the three months ended June 30, 2019, a decrease of (181%).

·

Net loss attributable to Century Casinos, Inc. shareholders was ($12.6) million, compared to ($0.6) million for the three months ended June 30, 2019, a decrease of (2131%).

·

Adjusted EBITDA** was ($1.8) million, compared to $6.7 million for the three months ended June 30, 2019, a decrease of (126%).

·

Loss per share was ($0.43).  

·

Book value per share*** at June 30, 2020 was $3.31.



The coronavirus (COVID-19) pandemic discussed below significantly impacted the Company’s second quarter 2020 results of operations, which included an additional $1.2 million impairment of goodwill and casino licenses as discussed below. The Company’s second quarter 2020 net operating revenue and Adjusted EBITDA also were significantly impacted by the acquisition of Mountaineer Casino, Racetrack & Resort, Century Casino Cape Girardeau and Century Casino Caruthersville (the “Acquired Casinos”) in December 2019. 



COVID-19 Update



In late 2019, an outbreak of COVID-19 was identified in China and has since spread throughout much of the world. Between March 13, 2020 and March 17, 2020, the Company closed all of its casinos, hotels and other facilities to comply with quarantines issued by governments to contain the spread of COVID-19. The Company’s Polish locations reopened on May 18, 2020 and its North American operations reopened between June 1, 2020 and June 17, 2020.



The COVID-19 pandemic has had an adverse effect on the Company’s first and second quarter 2020 results of operations and financial condition, and the Company expects this situation will continue to have an adverse impact on its results for the remainder of 2020. The duration and ultimate impact of the COVID-19 pandemic otherwise remains uncertain. The trends below are not the only items that could impact the Company’s future performance, and the views of management are based on currently available information. 



* 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-US GAAP financial measures. See discussion and reconciliation of Non-US 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.

 

 


 

During the temporary closures of its casinos, hotels and other facilities, the Company took actions to reduce operating costs, including furloughing most of its personnel,  implementing reduced work weeks for other personnel and temporarily reducing salaries to senior management on a voluntary basis. During the closures, the Company continued to pay benefits to its United States and Canadian employees, including part time employees. In Poland, all employees were paid reduced salaries based on local employment laws. The Company continues to operate with reduced spending on most advertising and marketing costs as well as implementing cost saving initiatives intended to eliminate approximately $13.7 million of non-labor operating costs in 2020. The Company intends to defer or eliminate approximately $2.2 million of discretionary capital projects for the remainder of 2020 in order to proactively address its capital spending for 2020. Additionally, the Company negotiated arrangements with some of its contractual counterparties, such as vendors and lessors, to modify the timing of certain contractual payments.



During the first and second quarters of 2020, the Company concluded that the COVID-19 pandemic and associated closure of its casinos were triggering events that could indicate possible impairment of its goodwill and indefinite-lived intangible assets. The Company performed a quantitative and qualitative impairment analysis and determined that goodwill and casino licenses related to certain reporting units were impaired. As a result, the Company recorded $1.2 million and $35.1 million to impairment – goodwill and intangible assets on its condensed consolidated statement of (loss) earnings for the three and six months ended June 30, 2020, respectively.   



As of June 30, 2020, the Company had $51.6 million in cash on hand, compared to $63.7 million at March 31, 2020 and $54.8 million at December 31, 2019.



Second Quarter 2020 Results



The consolidated results for the three and six months ended June 30, 2020 and 2019 are as follows:





 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



For the three months

 

 

For the six months

Amounts in thousands, except per share data

ended June 30,

 

 

ended June 30,

Consolidated Results:

 

 

2020

 

 

2019

 

% Change

 

 

2020

 

 

2019

 

% Change

Net Operating Revenue

 

$

36,103 

 

$

52,445 

 

(31%)

 

$

123,760 

 

$

98,057 

 

26% 

(Loss) Earnings from Operations

 

 

(2,114)

 

 

2,598 

 

(181%)

 

 

(33,887)

 

 

6,044 

 

(661%)

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

 

$

(12,607)

 

$

(565)

 

(2131%)

 

$

(58,463)

 

$

503 

 

(11723%)



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA**

 

$

(1,762)

 

$

6,709 

 

(126%)

 

$

7,822 

 

$

13,412 

 

(42%)

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

Basic and Diluted

 

$

(0.43)

 

$

(0.02)

 

(2050%)

 

$

(1.98)

 

$

0.02 

 

(10000%)



 

* 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-US GAAP financial measures. See discussion and reconciliation of Non-US GAAP financial measures in Supplemental Information below.

 

2/13

 


 

The consolidated results for the month of June 2020 and 2019 are as follows:







 

 

 

 

 

 

 

 



 

For the month ended

 

 

Amounts in thousands

 

June 30,

 

 

Consolidated Results

 

2020

 

2019

 

% Change

Net Operating Revenue

 

$

32,524 

 

$

17,828 

 

82% 

Earnings (Loss) from Operations

 

 

7,081 

 

 

(7)

 

101257% 

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

 

$

2,664 

 

$

(1,858)

 

243% 



 

 

 

 

 

 

 

 

Adjusted EBITDA*

 

$

10,806 

 

$

2,274 

 

375% 





Preliminary estimated July 2020 net operating revenue is $30.3 million and Adjusted EBITDA is $7.4 million compared to July 2019 net operating revenue of $18.1 million and Adjusted EBITDA of $2.8 million.



We are excited by the enthusiasm our customers have shown in visiting our reopened casinos. We are pleased that our operations have been able to achieve cash positive positions so soon after reopening,” Erwin Haitzmann and Peter Hoetzinger, Co-Chief Executive Officers of Century Casinos remarked.  We continue to take social distancing and our customers health very seriously, and we continue to explore new ways to further improve customer safety. We would like to thank our customers,  employees, communities and authorities for their cooperation and support both during and after our temporary closures,” Haitzmann and Hoetzinger concluded. 



 

 

* 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-US GAAP financial measures. See discussion and reconciliation of Non-US GAAP financial measures in Supplemental Information below.

 

3/13

 


 

Reportable Segment  Results*

The table below shows the Company’s reporting units and operating segments that are included in each of the Company’s reportable segments as of June 30, 2020:







 

 

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



 

Corporate Other



The Company’s net operating revenue decreased by ($16.3) million, or (31%), and increased by $25.7 million, or 26%, for the three and six months ended June 30, 2020,  compared to the three and six months ended June 30, 2019.  Following is a summary of the changes in net operating revenue by reportable segment for the three and six months ended June 30, 2020,  compared to the three and six months ended June 30, 2019:





 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

Net Operating Revenue



 

For the three months

 

 

 

 

 

 

For the six months

 

 

 

 

 



 

ended June 30,

 

 

 

 

 

 

ended June 30,

 

 

 

 

 

Amounts in thousands

 

2020

 

2019

 

$ Change

 

% Change

 

2020

 

2019

 

$ Change

 

% Change

United States

 

$

23,832 

 

$

8,809 

 

$

15,023 

 

171% 

 

$

77,262 

 

$

16,874 

 

$

60,388 

 

358% 

Canada

 

 

4,719 

 

 

21,988 

 

 

(17,269)

 

(79%)

 

 

20,902 

 

 

38,289 

 

 

(17,387)

 

(45%)

Poland

 

 

7,390 

 

 

20,107 

 

 

(12,717)

 

(63%)

 

 

24,453 

 

 

39,859 

 

 

(15,406)

 

(39%)

Corporate and Other

 

 

162 

 

 

1,541 

 

 

(1,379)

 

(90%)

 

 

1,143 

 

 

3,035 

 

 

(1,892)

 

(62%)

Consolidated

 

$

36,103 

 

$

52,445 

 

$

(16,342)

 

(31%)

 

$

123,760 

 

$

98,057 

 

$

25,703 

 

26% 



 

* 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-US GAAP financial measures. See discussion and reconciliation of Non-US GAAP financial measures in Supplemental Information below.

4/13

 


 

The Company’s earnings from operations decreased by ($4.7) million, or (181%), and by ($39.9) million, or (661%), for the three and six months ended June 30, 2020,  compared to the three and six months ended June 30, 2019.   Following is a summary of the changes in earnings (loss) from operations by reportable segment for the three and six months ended June 30, 2020,  compared to the three and six months ended June 30, 2019:  







 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

(Loss) Earnings from Operations



 

For the three months

 

 

 

 

 

 

For the six months

 

 

 

 

 



 

ended June 30,

 

 

 

 

 

 

ended June 30,

 

 

 

 

 

Amounts in thousands

 

2020

 

2019

 

$ Change

 

% Change

 

2020

 

2019

 

$ Change

 

% Change

United States

 

$

(3,317)

 

$

1,642 

 

$

(4,959)

 

(302%)

 

$

(28,401)

 

$

2,979 

 

$

(31,380)

 

(1053%)

Canada

 

 

(1,229)

 

 

4,883 

 

 

(6,112)

 

(125%)

 

 

(2,917)

 

 

8,583 

 

 

(11,500)

 

(134%)

Poland

 

 

(2,201)

 

 

1,021 

 

 

(3,222)

 

(316%)

 

 

(1,910)

 

 

2,695 

 

 

(4,605)

 

(171%)

Corporate and Other

 

 

4,633 

 

 

(4,948)

 

 

9,581 

 

194% 

 

 

(659)

 

 

(8,213)

 

 

7,554 

 

92% 

Consolidated

 

$

(2,114)

 

$

2,598 

 

$

(4,712)

 

(181%)

 

$

(33,887)

 

$

6,044 

 

$

(39,931)

 

(661%)







Net earnings attributable to Century Casinos, Inc. shareholders decreased by ($12.0) million, or (2131%), and by ($59.0) million, or (11723%), for the three and six months ended June 30, 2020,  compared to the three and six months ended June 30, 2019.  Following is a summary of the changes in net earnings (loss) attributable to Century Casinos, Inc. shareholders by reportable segment for the three and six months ended June 30, 2020,  compared to the three and six months ended June 30, 2019:  





 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

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



 

For the three months

 

 

 

 

 

 

For the six months

 

 

 

 

 



 

ended June 30,

 

 

 

 

 

 

ended June 30,

 

 

 

 

 

Amounts in thousands

 

2020

 

2019

 

$ Change

 

% Change

 

2020

 

2019

 

$ Change

 

% Change

United States

 

$

(10,271)

 

$

1,236 

 

$

(11,507)

 

(931%)

 

$

(43,659)

 

$

2,215 

 

$

(45,874)

 

(2071%)

Canada

 

 

(1,781)

 

 

2,536 

 

 

(4,317)

 

(170%)

 

 

(5,987)

 

 

4,085 

 

 

(10,072)

 

(247%)

Poland

 

 

(1,246)

 

 

425 

 

 

(1,671)

 

(393%)

 

 

(1,218)

 

 

1,339 

 

 

(2,557)

 

(191%)

Corporate and Other

 

 

691 

 

 

(4,762)

 

 

5,453 

 

115% 

 

 

(7,599)

 

 

(7,136)

 

 

(463)

 

(7%)

Consolidated

 

$

(12,607)

 

$

(565)

 

$

(12,042)

 

(2131%)

 

$

(58,463)

 

$

503 

 

$

(58,966)

 

(11723%)



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.

 

* 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-US GAAP financial measures. See discussion and reconciliation of Non-US GAAP financial measures in Supplemental Information below.

5/13

 


 

The Company’s Adjusted EBITDA** decreased by ($8.5) million, or (126%), and by ($5.6) million, or (42%), for the three and six months ended June 30, 2020 compared to the three and six months ended June 30, 2019.  Following is a summary of the changes in Adjusted EBITDA** by reportable segment for the three and six months ended June 30, 2020 compared to the three and six months ended June 30, 2019:







 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

Adjusted EBITDA**



 

For the three months

 

 

 

 

 

 

For the six months

 

 

 

 

 



 

ended June 30,

 

 

 

 

 

 

ended June 30,

 

 

 

 

 

Amounts in thousands

 

2020

 

2019

 

$ Change

 

% Change

 

2020

 

2019

 

$ Change

 

% Change

United States

 

$

2,086 

 

$

2,170 

 

$

(84)

 

(4%)

 

$

10,850 

 

$

4,082 

 

$

6,768 

 

166% 

Canada

 

 

(1)

 

 

5,944 

 

 

(5,945)

 

(100%)

 

 

3,025 

 

 

10,974 

 

 

(7,949)

 

(72%)

Poland

 

 

(1,466)

 

 

1,985 

 

 

(3,451)

 

(174%)

 

 

(407)

 

 

4,435 

 

 

(4,842)

 

(109%)

Corporate and Other

 

 

(2,381)

 

 

(3,390)

 

 

1,009 

 

30% 

 

 

(5,646)

 

 

(6,079)

 

 

433 

 

7% 

Consolidated

 

$

(1,762)

 

$

6,709 

 

$

(8,471)

 

(126%)

 

$

7,822 

 

$

13,412 

 

$

(5,590)

 

(42%)



Balance Sheet and Liquidity

As of June 30, 2020, the Company had $51.6 million in cash and cash equivalents and  $194.2 million in outstanding debt on its balance sheet compared to $54.8 million in cash and cash equivalents and $179.0 million in outstanding debt at December 31, 2019.  The outstanding debt as of June 30, 2020 included $179.1 million related to the Company’s credit agreement with Macquarie Capital (“Macquarie”),  $1.6 million of bank debt related to Casinos Poland, $9.0 million of bank debt related to Century Resorts Management GmbH (“CRM”), and $14.3 million related to a long-term land lease for Century Downs Racetrack and Casino (“CDR”), net of $9.8 million in deferred financing costs. The Company also has a $277.1 million long-term financing obligation under its triple net master lease for the three Acquired Casino properties (“Master Lease”), which has an initial annual rent of approximately $25.0 million.



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 June 30, 2020 on its website at www.cnty.com/investor/financials/sec-filings/. The Company will also post a presentation of the second quarter results on its website at www.cnty.com/investor/presentations/.



The Company will host its second quarter 2020 earnings conference call today,  Friday,  August 7, 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 centurycasinos.adobeconnect.com/earningsrelease or obtain a recording of the call on the Company’s website until August 31, 2020 at www.cnty.com/investor/financials/sec-filings/.



 

 

* 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-US GAAP financial measures. See discussion and reconciliation of Non-US GAAP financial measures in Supplemental Information below.

6/13

 


 

(continued)

CENTURY CASINOS, INC. AND SUBSIDIARIES

FINANCIAL INFORMATION – US GAAP BASIS 



Condensed Consolidated Statements of (Loss) Earnings 









 

 

 

 

 

 

 

 

 

 

 

 

   

For the three months

For the six months



ended June 30,

ended June 30,

Amounts in thousands, except for per share information

 

2020

 

2019

 

2020

 

2019

Operating revenue:

 

 

 

 

 

 

 

 

 

 

 

 

Net operating revenue

 

$

36,103 

 

$

52,445 

 

$

123,760 

 

$

98,057 

Operating costs and expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Total operating costs and expenses

 

 

38,217 

 

 

49,861 

 

 

157,647 

 

 

92,012 

Earnings (loss) from equity investment

 

 

 —

 

 

14 

 

 

 

 

(1)

(Loss) earnings from operations

 

 

(2,114)

 

 

2,598 

 

 

(33,887)

 

 

6,044 

Non-operating income (expense), net

 

 

(10,501)

 

 

(870)

 

 

(21,865)

 

 

(1,877)

(Loss) earnings before income taxes

 

 

(12,615)

 

 

1,728 

 

 

(55,752)

 

 

4,167 

Income tax provision

 

 

(582)

 

 

(1,370)

 

 

(3,106)

 

 

(2,086)

Net (loss) earnings

 

 

(13,197)

 

 

358 

 

 

(58,858)

 

 

2,081 

Net loss (earnings) attributable to non-controlling interests

 

 

590 

 

 

(923)

 

 

395 

 

 

(1,578)

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

 

$

(12,607)

 

$

(565)

 

$

(58,463)

 

$

503 



 

 

 

 

 

 

 

 

 

 

 

 

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

 Basic

 

$

(0.43)

 

$

(0.02)

 

$

(1.98)

 

$

0.02 

 Diluted

 

$

(0.43)

 

$

(0.02)

 

$

(1.98)

 

$

0.02 



 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares

 

 

 

 

 

 

 

 

 

 

 

 

 Basic

 

 

29,576 

 

 

29,440 

 

 

29,541 

 

 

29,440 

 Diluted

 

 

29,576 

 

 

29,440 

 

 

29,541 

 

 

30,114 







 

 

 

 

 

 

Condensed Consolidated Balance Sheets

 

 

 

 

 

 



 

June 30,

 

December 31,

Amounts in thousands

 

2020

 

2019

Assets

 

 

 

 

 

 

Current assets

 

$

72,501 

 

$

79,366 

Property and equipment, net

 

 

491,904 

 

 

503,933 

Other assets

 

 

101,012 

 

 

143,601 

Total assets

 

$

665,417 

 

$

726,900 



 

 

 

 

 

 

Liabilities and Equity

 

 

 

 

 

 

Current liabilities

 

$

69,910 

 

$

56,570 

Non-current liabilities

 

 

489,911 

 

 

498,255 

Century Casinos, Inc. shareholders' equity

 

 

97,882 

 

 

163,306 

Non-controlling interests

 

 

7,714 

 

 

8,769 

Total liabilities and equity

 

$

665,417 

 

$

726,900 



 

7/13

 


 

CENTURY CASINOS, INC. AND SUBSIDIARIES

SUPPLEMENTAL INFORMATION

Constant Currency* Results (unaudited)







 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

For the three months

 

 

 

For the six months

 

 



 

ended June 30,

 

 

 

ended June 30,

 

 

Amounts in thousands

 

 

2020

 

 

2019

 

% Change

 

 

2020

 

 

2019

 

% Change

Net operating revenue as reported (US GAAP)

 

$

36,103 

 

$

52,445 

 

(31%)

 

$

123,760 

 

$

98,057 

 

26% 

Foreign currency impact vs. 2019

 

 

474 

 

 

 

 

 

 

 

989 

 

 

 

 

 

Net operating revenue constant currency (non-US GAAP)*

 

$

36,577 

 

$

52,445 

 

(30%)

 

$

124,749 

 

$

98,057 

 

27% 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Loss) earnings from operations (US GAAP)

 

$

(2,114)

 

$

2,598 

 

(181%)

 

$

(33,887)

 

$

6,044 

 

(661%)

Foreign currency impact vs. 2019

 

 

540 

 

 

 

 

 

 

 

446 

 

 

 

 

 

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

 

$

(1,574)

 

$

2,598 

 

(161%)

 

$

(33,441)

 

$

6,044 

 

(653%)



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

$

(12,607)

 

$

(565)

 

(2131%)

 

$

(58,463)

 

$

503 

 

(11723%)

Foreign currency impact vs. 2019

 

 

413 

 

 

 

 

 

 

 

159 

 

 

 

 

 

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

 

$

(12,194)

 

$

(565)

 

(2058%)

 

$

(58,304)

 

$

503 

 

(11691%)



Gains and losses on foreign currency transactions are added back to net 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 six months



ended June 30,

ended June 30,



2020

2019

2020

2019

United States

9%  25%  14%  24% 

Canada

0%  27%  15%  29% 

Poland

(20%) 10%  (2%) 11% 

Corporate and Other

(1470%) (220%) (494%) (200%)

Consolidated Adjusted EBITDA Margin

(5%) 13%  6%  14% 



 

8/13

 


 

CENTURY CASINOS, INC. AND SUBSIDIARIES

SUPPLEMENTAL INFORMATION

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





 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



For the three months ended June 30, 2020

Amounts in thousands

 

United States

 

Canada

 

Poland

 

Corporate and Other

 

Total

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

 

$

(10,271)

 

$

(1,781)

 

$

(1,246)

 

$

691 

 

$

(12,607)

Interest expense (income), net (1)

 

 

6,954 

 

 

435 

 

 

(14)

 

 

3,204 

 

 

10,579 

Income (benefit) taxes

 

 

 

 

(44)

 

 

(292)

 

 

918 

 

 

582 

Depreciation and amortization

 

 

4,246 

 

 

1,289 

 

 

735 

 

 

135 

 

 

6,405 

Net earnings (loss) attributable to non-controlling interests

 

 

 

 

34 

 

 

(624)

 

 

 

 

(590)

Non-cash stock-based compensation

 

 

 

 

 

 

 

 

249 

 

 

249 

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

 

 

1,157 

 

 

135 

 

 

(25)

 

 

(7,631)

 

 

(6,364)

(Gain) on disposition of fixed assets

 

 

 

 

(69)

 

 

 

 

 

 

(69)

Acquisition costs

 

 

 

 

 

 

 

 

53 

 

 

53 

Adjusted EBITDA

 

$

2,086 

 

$

(1)

 

$

(1,466)

 

$

(2,381)

 

$

(1,762)



(1)

Expense of $7.0 million related to the Master Lease is included in interest expense (income), net in the United States segment. Expense of $0.4 million related to the CDR land lease is included in interest expense (income), net in the Canada segment. Cash payments related to the Master Lease and CDR land lease were $4.2 million and $0.4 million, respectively, for the period presented.







 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



For the three months ended June 30, 2019

Amounts in thousands

 

United States

 

Canada

 

Poland

 

Corporate and Other

 

Total

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

 

$

1,236 

 

$

2,536 

 

$

425 

 

$

(4,762)

 

$

(565)

Interest expense (income), net (1)

 

 

 

 

1,320 

 

 

45 

 

 

28 

 

 

1,393 

Income taxes (benefit)

 

 

406 

 

 

778 

 

 

416 

 

 

(230)

 

 

1,370 

Depreciation and amortization

 

 

527 

 

 

1,059 

 

 

716 

 

 

141 

 

 

2,443 

Net earnings attributable to non-controlling interests

 

 

 

 

681 

 

 

213 

 

 

29 

 

 

923 

Non-cash stock-based compensation

 

 

 

 

 

 

 

 

359 

 

 

359 

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

 

 

 

 

(432)

 

 

(78)

 

 

 

 

(505)

Loss on disposition of fixed assets

 

 

 

 

 

 

248 

 

 

272 

 

 

523 

Acquisition costs

 

 

 

 

 

 

 

 

768 

 

 

768 

Adjusted EBITDA

 

$

2,170 

 

$

5,944 

 

$

1,985 

 

$

(3,390)

 

$

6,709 



(1)

Expense of $0.6 million related to the CDR land lease is included in interest expense (income), net in the Canada segment. Cash payments related to the CDR land lease were $0.5 million for the period presented.



 

9/13

 


 

CENTURY CASINOS, INC. AND SUBSIDIARIES

SUPPLEMENTAL INFORMATION

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







 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



For the six months ended June 30, 2020

Amounts in thousands

 

United States

 

Canada

 

Poland

 

Corporate and Other

 

Total

Net loss attributable to Century Casinos, Inc. shareholders

 

$

(43,659)

 

$

(5,987)

 

$

(1,218)

 

$

(7,599)

 

$

(58,463)

Interest expense (income), net (1)

 

 

14,235 

 

 

979 

 

 

17 

 

 

6,713 

 

 

21,944 

Income taxes (benefit)

 

 

1,023 

 

 

1,813 

 

 

(247)

 

 

517 

 

 

3,106 

Depreciation and amortization

 

 

8,505 

 

 

2,628 

 

 

1,501 

 

 

265 

 

 

12,899 

Net earnings (loss) attributable to non-controlling interests

 

 

 

 

214 

 

 

(609)

 

 

 

 

(395)

Non-cash stock-based compensation

 

 

 

 

 

 

 

 

236 

 

 

236 

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

 

 

30,746 

 

 

3,447 

 

 

147 

 

 

(6,046)

 

 

28,294 

(Gain) loss on disposition of fixed assets

 

 

 

 

(69)

 

 

 

 

 

 

(65)

Acquisition costs

 

 

 

 

 

 

 

 

266 

 

 

266 

Adjusted EBITDA

 

$

10,850 

 

$

3,025 

 

$

(407)

 

$

(5,646)

 

$

7,822 



(1)

Expense of $14.2 million related to the Master Lease is included in interest expense (income), net in the United States segment. Expense of $0.9 million related to the CDR land lease is included in interest expense (income), net in the Canada segment. Cash payments related to the Master Lease and CDR land lease were $10.4 million and $0.9 million, respectively, for the period presented.

 

10/13

 


 

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 six months ended June 30, 2019

Amounts in thousands

 

United States

 

Canada

 

Poland

 

Corporate and Other

 

Total

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

 

$

2,215 

 

$

4,085 

 

$

1,339 

 

$

(7,136)

 

$

503 

Interest expense (income), net (1)

 

 

 

 

2,511 

 

 

91 

 

 

45 

 

 

2,647 

Income taxes (benefit)

 

 

764 

 

 

1,542 

 

 

876 

 

 

(1,096)

 

 

2,086 

Depreciation and amortization

 

 

1,086 

 

 

1,856 

 

 

1,487 

 

 

439 

 

 

4,868 

Net earnings (loss) attributable to non-controlling interests

 

 

 

 

921 

 

 

669 

 

 

(12)

 

 

1,578 

Non-cash stock-based compensation

 

 

 

 

 

 

 

 

620 

 

 

620 

Gain on foreign currency transactions and cost recovery income

 

 

 

 

(476)