COLORADO SPRINGS, Colo.,
Aug. 7, 2020 /PRNewswire/
-- 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.
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%)
|
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.
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%
|
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.
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.
*** The Company defines book value per share as total Century
Casinos, Inc. shareholders' equity divided by outstanding common
shares.
(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
|
|
|
0
|
|
|
(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
|
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%
|
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)
|
|
|
5
|
|
|
(505)
|
Loss on disposition
of fixed assets
|
|
|
1
|
|
|
2
|
|
|
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.
|
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)
|
|
|
2
|
|
|
2
|
|
|
(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.
|
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)
|
|
|
(280)
|
|
|
(7)
|
|
|
(763)
|
Loss (gain) on
disposition of fixed assets
|
|
|
17
|
|
|
(3)
|
|
|
253
|
|
|
300
|
|
|
567
|
Acquisition
costs
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
768
|
|
|
768
|
Pre-opening
expenses
|
|
|
—
|
|
|
538
|
|
|
—
|
|
|
—
|
|
|
538
|
Adjusted
EBITDA
|
|
$
|
4,082
|
|
$
|
10,974
|
|
$
|
4,435
|
|
$
|
(6,079)
|
|
$
|
13,412
|
|
|
(1)
|
Expense of $1.1
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 $1.0 million for the period
presented.
|
CENTURY CASINOS, INC. AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION
* The impact of foreign exchange rates is highly variable
and difficult to predict. The Company uses a Constant
Currency basis to show the impact from foreign exchange rates
on current period revenue compared to prior period revenue using
the prior period's foreign exchange rates. In order to properly
understand the underlying business trends and performance of the
Company's ongoing operations, management believes that investors
may find it useful to consider the impact of excluding changes in
foreign exchange rates from the Company's net operating revenue,
earnings from operations 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 quarter and the prior
year second quarter are reported in Item 1 of the Company's
Quarterly Report on Form 10-Q for the quarter ended June 30, 2020. Constant currency information is
not a measure of financial performance under generally accepted
accounting principles in the United
States of America (US GAAP) and should not be considered a
substitute for net operating revenue, earnings from operations or
net earnings (loss) attributable to Century Casinos, Inc.
shareholders as determined in accordance with US GAAP.
** 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. 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.
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; 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, 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 Century Downs Racetrack and Casino in
Calgary, Alberta, Canada. The
Company operates one ship-based casino. 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 of the Acquired
Casinos on the Company's results, the impact of the current
coronavirus (COVID-19) pandemic, the adequacy of cash flows from
operations and available cash to meet our future liquidity needs,
particularly if we cannot operate our casinos due to COVID-19 or
their operations are restricted, 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 and obligations under our
Master Lease and our ability to repay our debt and other
obligations, 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, in Item 8.01 of our Form 8-K filed with the SEC on
May 8, 2020, 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.
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SOURCE Century Casinos, Inc.