EX-99.1 2 cnty-20230309xex99_1.htm EX-99.1 Exhibit 991 Earnings Release Q4 2022

PRESS RELEASEPicture 1

March 10, 2023



Century Casinos, Inc. Announces Fourth Quarter and Full Year 2022 Results 



Colorado Springs, Colorado –  March 10, 2023 – Century Casinos, Inc. (Nasdaq Capital Market®: CNTY) today announced its financial results for the three months and year ended December 31, 2022.  



Fourth Quarter 2022 Highlights*

Compared to the three months ended December 31, 2021:

·

Net operating revenue was $103.8 million, a decrease of (3%). 

·

Earnings from operations were $13.8 million, a decrease of (16%).

·

Net loss attributable to Century Casinos, Inc. shareholders was ($4.0) million, a decrease of (202%).

·

Adjusted EBITDA** was $21.7 million, a decrease of (13%).

·

Loss per share was ($0.14).



2022 Highlights*

Compared to the year ended December 31, 2021:

·

Net operating revenue was $430.5 million, an increase of 11%.

·

Earnings from operations were $67.6 million, a decrease of (1%).

·

Net earnings attributable to Century Casinos, Inc. shareholders was $8.0 million, a decrease of (61%).

·

Adjusted EBITDA** was $103.3 million, an increase of 6%.

·

Basic earnings per share was $0.27, a decrease of (61%).

·

Diluted earnings per share was $0.25, a decrease of (62%).

·

Book value per share*** at December 31, 2022 was $4.82. 



The consolidated results for the three months and years ended December 31, 2022 and 2021 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:

 

 

2022

 

 

2021

 

% Change

 

 

2022

 

 

2021

 

% Change

Net Operating Revenue

 

$

103,754 

 

$

107,300 

 

(3%)

 

$

430,529 

 

$

388,506 

 

11% 

Earnings from Operations

 

 

13,757 

 

 

16,430 

 

(16%)

 

 

67,612 

 

 

68,518 

 

(1%)

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

 

$

(4,042)

 

$

3,960 

 

(202%)

 

$

7,976 

 

$

20,622 

 

(61%)



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA**

 

$

21,666 

 

$

24,888 

 

(13%)

 

$

103,340 

 

$

97,926 

 

6% 

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

Basic

 

$

(0.14)

 

$

0.13 

 

(208%)

 

$

0.27 

 

$

0.70 

 

(61%)

Diluted

 

$

(0.14)

 

$

0.13 

 

(208%)

 

$

0.25 

 

$

0.66 

 

(62%)

* 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.

 

 


 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

We finished 2022 with record net operating revenue and Adjusted EBITDA despite disruptions and temporary closures at our Caruthersville property due to low water levels in the Mississippi River. In December 2022, we completed the relocation of the Caruthersville casino from the riverboat and barge to the land-based pavilion where we will operate the casino until the casino and hotel development project is complete. Construction on this project and our Cape Girardeau hotel project are on schedule to be completed in 2024,” Erwin Haitzmann and Peter Hoetzinger, Co-Chief Executive Officers of Century Casinos remarked. “The Nevada Gaming Control Board has unanimously recommended approval to the Nevada Gaming Commission of our applications to acquire the Nugget Casino Resort and related approvals and findings of suitability. Our applications must still be approved by the Nevada Gaming Commission at its meeting on March 23, 2023. If approved, we plan to close the Nugget acquisition in early April 2023,” Messrs. Haitzmann and Hoetzinger concluded.



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 December 31, 2022:







 

 

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 (1)

Canada

Edmonton

Century Casino & Hotel - Edmonton



 

Century Casino St. Albert



 

Century Mile Racetrack and Casino



Calgary (2)

Century Downs Racetrack and Casino

Poland

Poland

Casinos Poland

Corporate and Other

Corporate and Other

Cruise Ships & Other



 

Corporate Other (3)



(1)

Includes neighboring hotel, The Farmstead.

(2)

The Company operated Century Sports through February 10, 2022. The Company operated Century Bets! Inc. through August 2021, when operations were transferred to Century Mile Racetrack and Casino.

(3)

The Company’s equity interest in Smooth Bourbon, LLC is included in the Corporate Other reporting unit.



 

* 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.

2/11

 


 

 

 

The Company’s net operating revenue decreased by ($3.5) million, or (3%), and increased by $42.0 million, or 11%, for the three months and year ended December 31, 2022,  compared to the three months and year ended December 31, 2021.  Following is a summary of the changes in net operating revenue by reportable segment for the three months and year ended December 31, 2022,  compared to the three months and year ended December 31, 2021:





 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

Net Operating Revenue



 

For the three months

 

 

 

 

 

 

For the year

 

 

 

 

 

Amounts in

 

ended December 31,

 

 

$

 

%

 

ended December 31,

 

 

$

 

%

thousands

 

2022

 

2021

 

 

Change

 

Change

 

2022

 

2021

 

 

Change

 

Change

United States

 

$

62,311 

 

$

68,316 

 

$

(6,005)

 

(9%)

 

$

268,582 

 

$

283,285 

 

$

(14,703)

 

(5%)

Canada

 

 

16,467 

 

 

16,396 

 

 

71 

 

 

 

71,572 

 

 

46,428 

 

 

25,144 

 

54% 

Poland

 

 

24,904 

 

 

22,478 

 

 

2,426 

 

11% 

 

 

90,169 

 

 

58,226 

 

 

31,943 

 

55% 

Corporate and Other

 

 

72 

 

 

110 

 

 

(38)

 

(35%)

 

 

206 

 

 

567 

 

 

(361)

 

(64%)

Consolidated

 

$

103,754 

 

$

107,300 

 

$

(3,546)

 

(3%)

 

$

430,529 

 

$

388,506 

 

$

42,023 

 

11% 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The Company’s earnings from operations decreased by ($2.7) million, or (16%), and by ($0.9) million, or (1%), for the three months and year ended December 31, 2022,  compared to the three months and year ended December 31, 2021.  Following is a summary of the changes in earnings (loss) from operations by reportable segment for the three months and year ended December 31, 2022,  compared to the three months and year ended December 31, 2021:  







 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

Earnings (Loss) from Operations



 

For the three months

 

 

 

 

 

 

For the year

 

 

 

 

 

Amounts in

 

ended December 31,

 

 

$

 

%

 

ended December 31,

 

 

$

 

%

thousands

 

2022

 

2021

 

 

Change

 

Change

 

2022

 

2021

 

 

Change

 

Change

United States

 

$

11,401 

 

$

16,455 

 

$

(5,054)

 

(31%)

 

$

60,884 

 

$

77,021 

 

$

(16,137)

 

(21%)

Canada

 

 

2,621 

 

 

2,180 

 

 

441 

 

20% 

 

 

11,461 

 

 

4,534 

 

 

6,927 

 

153% 

Poland

 

 

2,536 

 

 

2,085 

 

 

451 

 

22% 

 

 

9,205 

 

 

(443)

 

 

9,648 

 

2178% 

Corporate and Other

 

 

(2,801)

 

 

(4,290)

 

 

1,489 

 

35% 

 

 

(13,938)

 

 

(12,594)

 

 

(1,344)

 

(11%)

Consolidated

 

$

13,757 

 

$

16,430 

 

$

(2,673)

 

(16%)

 

$

67,612 

 

$

68,518 

 

$

(906)

 

(1%)



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

* 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.

3/11

 


 

 

 

Net earnings attributable to Century Casinos, Inc. shareholders decreased by ($8.0) million, or (202%), and by ($12.6) million, or (61%), for the three months and year ended December 31, 2022,  compared to the three months and year ended December 31, 2021.  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, 2022,  compared to the three months and year ended December 31, 2021:  







 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

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



 

For the three months

 

 

 

 

 

 

For the year

 

 

 

 

 

Amounts in

 

ended December 31,

 

 

$

 

%

 

ended December 31,

 

 

$

 

%

thousands

 

2022

 

2021

 

 

Change

 

Change

 

2022

 

2021

 

 

Change

 

Change

United States

 

$

3,355 

 

$

10,146 

 

$

(6,791)

 

(67%)

 

$

24,759 

 

$

49,628 

 

$

(24,869)

 

(50%)

Canada

 

 

1,274 

 

 

859 

 

 

415 

 

48% 

 

 

6,070 

 

 

1,124 

 

 

4,946 

 

440% 

Poland

 

 

1,526 

 

 

1,880 

 

 

(354)

 

(19%)

 

 

5,811 

 

 

440 

 

 

5,371 

 

1221% 

Corporate and Other

 

 

(10,197)

 

 

(8,925)

 

 

(1,272)

 

(14%)

 

 

(28,664)

 

 

(30,570)

 

 

1,906 

 

6% 

Consolidated

 

$

(4,042)

 

$

3,960 

 

$

(8,002)

 

(202%)

 

$

7,976 

 

$

20,622 

 

$

(12,646)

 

(61%)



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



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.



Adjusted EBITDA** decreased by ($3.2) million, or (13%), and increased by $5.4 million, or 6%, for the three months and year ended December 31, 2022 compared to the three months and year ended December 31, 2021.  Following is a summary of the changes in Adjusted EBITDA** by reportable segment for the three months and year ended December 31, 2022 compared to the three months and year ended December 31, 2021:







 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

Adjusted EBITDA**



 

For the three months

 

 

 

 

 

 

For the year

 

 

 

 

 

Amounts in

 

ended December 31,

 

 

$

 

%

 

ended December 31,

 

 

$

 

%

thousands

 

2022

 

2021

 

 

Change

 

Change

 

2022

 

2021

 

 

Change

 

Change

United States

 

$

16,365 

 

$

21,179 

 

$

(4,814)

 

(23%)

 

$

80,297 

 

$

95,760 

 

$

(15,463)

 

(16%)

Canada

 

 

3,748 

 

 

3,396 

 

 

352 

 

10% 

 

 

18,396 

 

 

9,510 

 

 

8,886 

 

93% 

Poland

 

 

3,195 

 

 

3,231 

 

 

(36)

 

(1%)

 

 

11,874 

 

 

2,629 

 

 

9,245 

 

352% 

Corporate and Other

 

 

(1,642)

 

 

(2,918)

 

 

1,276 

 

44% 

 

 

(7,227)

 

 

(9,973)

 

 

2,746 

 

28% 

Consolidated

 

$

21,666 

 

$

24,888 

 

$

(3,222)

 

(13%)

 

$

103,340 

 

$

97,926 

 

$

5,414 

 

6% 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

* 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.

4/11

 


 

 

 

Balance Sheet and Liquidity

As of December 31, 2022, the Company had $101.8 million in cash and cash equivalents compared to $107.8 million in cash and cash equivalents at December 31, 2021.  Cash and cash equivalents as of December 31, 2022 do not include restricted cash, which includes $100.2 million in escrow to fund the acquisition of Nugget Sparks, LLC. As of December 31, 2022, the Company had $349.6 million in outstanding debt compared to  $181.5 million in outstanding debt at December 31, 2021. The outstanding debt as of December 31, 2022 included $347.4 million related to a term loan under the Company’s credit agreement with Goldman Sachs Bank USA (“Goldman”),  $4.7 million of bank debt related to Century Resorts Management GmbH (“CRM”), and $14.4 million related to a long-term land lease for Century Downs Racetrack and Casino (“CDR”), net of $16.8 million in deferred financing costs. The Company also has a $284.9 million long-term financing obligation under its triple net master lease (“Master Lease”) of its West Virginia and Missouri properties.



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, 2022 on its website at www.cnty.com/investor/financials/sec-filings/. The Company will also post a presentation of the 2022 results on its website at www.cnty.com/investor/presentations/.



The Company will host its fourth quarter 2022 earnings conference call today, Friday,  March 10, 2023 at 8:00 am MST. U.S. domestic participants should dial 1-800-225-9448. For all international participants, please use 203-518-9708 to dial-in. The conference ID is ‘Casinos’. Participants may listen to the call live at www.eventcastpro.com/webcasts/cc/events/037P3Q.cfm or obtain a recording of the call on the Company’s website until March 31, 2023 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.

5/11

 


 

 

 

CENTURY CASINOS, INC. AND SUBSIDIARIES

UNAUDITED 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

 

2022

 

2021

 

2022

 

2021

Operating revenue:

 

 

 

 

 

 

 

 

 

 

 

 

Net operating revenue

 

$

103,754 

 

$

107,300 

 

$

430,529 

 

$

388,506 

Operating costs and expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Total operating costs and expenses

 

 

91,111 

 

 

90,870 

 

 

366,166 

 

 

319,988 

Earnings from equity investment

 

 

1,114 

 

 

 —

 

 

3,249 

 

 

 —

Earnings from operations

 

 

13,757 

 

 

16,430 

 

 

67,612 

 

 

68,518 

Non-operating (expense) income, net

 

 

(16,388)

 

 

(8,842)

 

 

(61,602)

 

 

(40,369)

(Loss) earnings before income taxes

 

 

(2,631)

 

 

7,588 

 

 

6,010 

 

 

28,149 

Income tax (provision) benefit

 

 

(470)

 

 

(2,558)

 

 

7,660 

 

 

(6,371)

Net (loss) earnings

 

 

(3,101)

 

 

5,030 

 

 

13,670 

 

 

21,778 

Net earnings attributable to non-controlling interests

 

 

(941)

 

 

(1,070)

 

 

(5,694)

 

 

(1,156)

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

 

$

(4,042)

 

$

3,960 

 

$

7,976 

 

$

20,622 



 

 

 

 

 

 

 

 

 

 

 

 

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

 Basic

 

$

(0.14)

 

$

0.13 

 

$

0.27 

 

$

0.70 

 Diluted

 

$

(0.14)

 

$

0.13 

 

$

0.25 

 

$

0.66 



 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares

 

 

 

 

 

 

 

 

 

 

 

 

 Basic

 

 

29,866 

 

 

29,619 

 

 

29,809 

 

 

29,593 

 Diluted

 

 

31,414 

 

 

31,581 

 

 

31,480 

 

 

31,388 



 

 

 

 

 

 

 

 

 

 

 

 





 

 

 

 

 

 

Condensed Consolidated Balance Sheets

 

 

 

 

 

 



 

December 31,

 

December 31,

Amounts in thousands

 

2022

 

2021

Assets

 

 

 

 

 

 

Current assets

 

$

228,019 

 

$

140,680 

Property and equipment, net

 

 

464,650 

 

 

472,302 

Other assets

 

 

192,298 

 

 

90,376 

Total assets

 

$

884,967 

 

$

703,358 



 

 

 

 

 

 

Liabilities and Equity

 

 

 

 

 

 

Current liabilities

 

$

65,413 

 

$

60,433 

Non-current liabilities

 

 

665,355 

 

 

492,568 

Century Casinos, Inc. shareholders' equity

 

 

144,028 

 

 

141,624 

Non-controlling interests

 

 

10,171 

 

 

8,733 

Total liabilities and equity

 

$

884,967 

 

$

703,358 



 

6/11

 


 

 

 

CENTURY CASINOS, INC. AND SUBSIDIARIES

UNAUDITED 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, 2022

Amounts in thousands

 

 

United States

 

 

Canada

 

 

Poland

 

 

Corporate and Other

 

 

Total

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

 

$

3,355 

 

$

1,274 

 

$

1,526 

 

$

(10,197)

 

$

(4,042)

Interest expense (income), net (1)

 

 

7,221 

 

 

547 

 

 

(100)

 

 

9,373 

 

 

17,041 

Income taxes (benefit)

 

 

826 

 

 

636 

 

 

788 

 

 

(1,780)

 

 

470 

Depreciation and amortization

 

 

4,946 

 

 

1,123 

 

 

627 

 

 

63 

 

 

6,759 

Net earnings attributable to non-controlling interests

 

 

 

 

178 

 

 

763 

 

 

 

 

941 

Non-cash stock-based compensation

 

 

 

 

 

 

 

 

697 

 

 

697 

Gain on foreign currency transactions, cost recovery income and other

 

 

(1)

 

 

(14)

 

 

(441)

 

 

(197)

 

 

(653)

Loss on disposition of fixed assets

 

 

18 

 

 

 

 

32 

 

 

 

 

54 

Acquisition costs

 

 

 

 

 

 

 

 

399 

 

 

399 

Adjusted EBITDA

 

$

16,365 

 

$

3,748 

 

$

3,195 

 

$

(1,642)

 

$

21,666 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)

Expense of $7.2 million related to the Master Lease is included in interest expense (income), net in the United States segment. Expense of $0.5 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 $6.5 million and $0.5 million, respectively, for the period presented.











 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



For the three months ended December 31, 2021

Amounts in thousands

 

 

United States

 

 

Canada

 

 

Poland

 

 

Corporate and Other

 

 

Total

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

 

$

10,146 

 

$

859 

 

$

1,880 

 

$

(8,925)

 

$

3,960 

Interest expense (income), net (1)

 

 

7,145 

 

 

533 

 

 

(136)

 

 

3,286 

 

 

10,828 

Income taxes

 

 

 

 

594 

 

 

475 

 

 

1,489 

 

 

2,558 

Depreciation and amortization

 

 

4,665 

 

 

1,214 

 

 

705 

 

 

119 

 

 

6,703 

Net earnings attributable to non-controlling interests

 

 

 

 

130 

 

 

940 

 

 

 

 

1,070 

Non-cash stock-based compensation

 

 

 

 

 

 

 

 

1,084 

 

 

1,084 

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

 

 

(836)

 

 

59 

 

 

(674)

 

 

27 

 

 

(1,424)

Loss on disposition of fixed assets

 

 

59 

 

 

 

 

41 

 

 

 

 

109 

Adjusted EBITDA

 

$

21,179 

 

$

3,396 

 

$

3,231 

 

$

(2,918)

 

$

24,888 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)

Expense of $7.1 million related to the Master Lease is included in interest expense (income), net in the United States segment. Expense of $0.5 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  $8.4 million and $0.6 million, respectively, for the period presented.

(2)

Income of $0.8 million related to the sale of excess land at Mountaineer Casino, Racetrack & Resort (“Mountaineer”), net of related expenses,  is included in the United States segment.

 

7/11

 


 

 

 

CENTURY CASINOS, INC. AND SUBSIDIARIES

UNAUDITED 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, 2022

Amounts in thousands

 

 

United States

 

 

Canada

 

 

Poland

 

 

Corporate and Other

 

 

Total

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

 

$

24,759 

 

$

6,070 

 

$

5,811 

 

$

(28,664)

 

$

7,976 

Interest expense (income), net (1)

 

 

28,531 

 

 

2,281 

 

 

(686)

 

 

34,854 

 

 

64,980 

Income taxes (benefit)

 

 

7,595 

 

 

2,354 

 

 

2,326 

 

 

(19,935)

 

 

(7,660)

Depreciation and amortization

 

 

19,364 

 

 

4,754 

 

 

2,606 

 

 

385 

 

 

27,109 

Net earnings attributable to non-controlling interests

 

 

 

 

2,787 

 

 

2,907 

 

 

 

 

5,694 

Non-cash stock-based compensation

 

 

 

 

 

 

 

 

3,335 

 

 

3,335 

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

 

 

(1)

 

 

123 

 

 

(1,153)

 

 

(205)

 

 

(1,236)

Loss (gain) on disposition of fixed assets

 

 

49 

 

 

27 

 

 

63 

 

 

(121)

 

 

18 

Acquisition costs

 

 

 

 

 

 

 

 

3,124 

 

 

3,124 

Adjusted EBITDA

 

$

80,297 

 

$

18,396 

 

$

11,874 

 

$

(7,227)

 

$

103,340 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)

Expense of $28.5 million related to the Master Lease is included in interest expense (income), net in the United States segment. Expense of $2.3 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 $25.7 million and $2.1 million, respectively, for the period presented. Expense of $7.3 million related to the write-off of deferred financing costs in connection with the prepayment of the term loan with Macquarie Capital (USA) Inc. is included in interest expense (income), net in the Corporate and Other segment.

(2)

Loss of $2.2 million related to the sale of the land and building in Calgary in February 2022 is included in the Canada segment. The loss from the sale was offset by cost recovery income for CDR.





 

8/11

 


 

 

 

CENTURY CASINOS, INC. AND SUBSIDIARIES

UNAUDITED 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, 2021

Amounts in thousands

 

 

United States

 

 

Canada

 

 

Poland

 

 

Corporate and Other

 

 

Total

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

 

$

49,628 

 

$

1,124 

 

$

440 

 

$

(30,570)

 

$

20,622 

Interest expense (income), net (1)

 

 

28,229 

 

 

1,796 

 

 

(477)

 

 

13,110 

 

 

42,658 

Income taxes

 

 

 

 

1,256 

 

 

257 

 

 

4,858 

 

 

6,371 

Depreciation and amortization

 

 

18,398 

 

 

4,904 

 

 

3,028 

 

 

432 

 

 

26,762 

Net earnings attributable to non-controlling interests

 

 

 

 

932 

 

 

224 

 

 

 

 

1,156 

Non-cash stock-based compensation

 

 

 

 

 

 

 

 

2,652 

 

 

2,652 

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

 

 

(836)

 

 

(545)

 

 

(887)

 

 

(418)

 

 

(2,686)

Loss (gain) on disposition of fixed assets

 

 

341 

 

 

43 

 

 

44 

 

 

(37)

 

 

391 

Adjusted EBITDA

 

$

95,760 

 

$

9,510 

 

$

2,629 

 

$

(9,973)

 

$

97,926 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)

Expense of $28.2 million related to the Master Lease is included in interest expense (income), net in the United States segment. Expense of $1.8 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 $25.3 million and $2.0 million, respectively, for the period presented.

(2)

Income of $0.8 million related to the sale of excess land at Mountaineer, net of related expenses,  is included in the United States segment.



Adjusted EBITDA Margins **













 

 

 

 



For the three months

For the year



ended December 31,

ended December 31,



2022

2021

2022

2021

United States

26%  31%  30%  34% 

Canada

23%  21%  26%  21% 

Poland

13%  14%  13%  5% 

Corporate and Other

(2281%) (2653%) (3508%) (1759%)

Consolidated

21%  23%  24%  25% 



 

 

 

 



 

9/11

 


 

 

 

CENTURY CASINOS, INC. AND SUBSIDIARIES

UNAUDITED 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 transactions. Expense related to the Master Lease and CDR land lease is included in the interest expense (income), net line item. Intercompany transactions consisting primarily of management and royalty fees and interest, along with their related tax effects, are excluded from the presentation of net earnings (loss) attributable to Century Casinos, Inc. shareholders and Adjusted EBITDA reported for each segment. Non-cash stock-based compensation expense is presented under Corporate and Other as the expense is not allocated to reportable segments when reviewed by the Company’s chief operating decision makers. Not all of the aforementioned items occur in each reporting period, but have been included in the definition based on historical activity. These adjustments have no effect on the consolidated results as reported under US GAAP. Adjusted 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-US GAAP measure. Management uses this margin as one of several measures to evaluate the efficiency of the Company’s casino operations.



About Century Casinos, Inc.:

Century Casinos, Inc. is 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, and in St. Albert, Alberta, Canada; Mountaineer in New Cumberland, West Virginia; and the Century Mile Racetrack and Casino in Edmonton, Alberta, Canada. Through its Austrian subsidiary, CRM, the Company holds a 66.6% ownership interest in Casinos Poland Ltd., the owner and operator of eight casinos throughout Poland; and a 75% ownership interest in CDR in Calgary, Alberta, Canada. Through its United States subsidiary, Century Nevada Acquisition, Inc., the Company owns a 50% membership interest in Smooth Bourbon, LLC, which owns the land and building of the Nugget Casino Resort (“OpCo”) in Sparks, Nevada. The Company has an agreement to purchase 100% of the membership interests in OpCo and an agreement to purchase 100% of the equity interest in the Rocky Gap Casino Resort in Flintstone, Maryland. The Company also has an agreement to operate one ship-based casino. 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.  



 

10/11

 


 

 

 

CENTURY CASINOS, INC. AND SUBSIDIARIES

UNAUDITED 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 projects in development and other opportunities, including closing of the OpCo acquisition and our Missouri construction projects, our credit agreement with Goldman and obligations under our Master Lease and our ability to repay our debt and other obligations, 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, 2022, 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.

 

11/11