Century Casinos Reports Q3 2008 Results
COLORADO SPRINGS, Colo., Nov. 10 /CNW/ -- Century Casinos, Inc. (Nasdaq:
CNTY; Vienna Stock Exchange) reported today the financial results for the
three and nine months ended September 30, 2008.
Third Quarter 2008
For the third quarter of 2008, net operating revenue was $21,861,000 and
consolidated Adjusted EBITDA(*) was $4,906,000. This represents a 12% decrease
in net operating revenue over the same quarter of last year ($24,724,000 in
the third quarter of 2007) and a 16% decrease in consolidated Adjusted EBITDA(*)
($5,875,000 in the third quarter of 2007). Declines in net operating revenue
at our properties in Colorado and Caledon, South Africa were partially offset
by an increase in net operating revenue at the Company's properties in
Edmonton, Canada and Newcastle, South Africa.
The Company reported a net loss of $14,198,000, or ($0.60) per basic and
fully diluted share for the third quarter of 2008. Goodwill impairments and a
valuation allowance established for U.S. deferred tax assets resulted in a
reduction of $15,378,000, or $0.65 per basic and fully diluted share, to net
earnings. Net earnings for the third quarter of 2007 were $1,949,000, or $0.08
per basic and fully diluted share.
In light of the deterioration of the U.S. and Colorado economies, the
Company decided to take a conservative approach and has written-off the
goodwill of the two Colorado properties. Also, because of the current
difficult economic environment in the U.S. and Colorado, the Company
considered it prudent to put the U.S. deferred tax asset into a reserve
(valuation allowance), which may still be applied against future taxable
income.
Nine months ended September 30, 2008
For the first nine months of 2008, net operating revenue was $64,387,000
and consolidated Adjusted EBITDA(*) was $13,849,000. This represents a 6%
decrease in net operating revenue over the same period of last year
($68,458,000 in the first nine months of 2007) and a 13% decrease in
consolidated Adjusted EBITDA(*) ($15,863,000 in the first nine months of 2007).
Declines in net operating revenue at our properties in Colorado, particularly
at Womacks, and a decline in the average exchange rate between the U.S. dollar
and South African rand ("rand") were partially offset by an improvement in net
operating revenue at the Company's property in Edmonton.
The Company reported a net loss of $12,822,000, or ($0.55) per basic and
fully diluted share for the nine months ended September 30, 2008. Goodwill
impairments and a valuation allowance established for U.S. deferred tax assets
resulted in a reduction of $15,378,000, or $0.66 per basic and fully diluted
share, to net earnings. Net earnings for the first nine months of 2007 were
$4,532,000, or $0.19 per fully diluted share ($0.20 per basic share).
Property Results
Century Casino & Hotel (Edmonton, Alberta, Canada) - Net operating
revenue at the Century Casino & Hotel in Edmonton increased 14.7% to
$5,656,000 for the third quarter of 2008 compared to $4,930,000 for the third
quarter of 2007. Adjusted EBITDA(*) was $2,129,000 for the third quarter of
2008 and $1,503,000 for the third quarter of 2007, an increase of 41.7%. In
the second half of 2007, the Company converted a dinner theater to a showroom
venue that has drawn better attendance. The Alberta Gaming and Liquor
Commission increased the number of slot machines at the casino from 600 to 650
in September 2007. In addition, the Company introduced 24-hour poker at the
casino during the fourth quarter of 2007. All of these factors have led to
additional play at the casino.
Net operating revenue at the Century Casino & Hotel in Edmonton increased
25.4% to $17,008,000 for the nine months ended September 30, 2008 compared to
$13,562,000 for the nine months ended September 30, 2007. Adjusted EBITDA(*) was
$6,319,000 for the nine months ended September 30, 2008 compared to $3,651,000
in the same 2007 period, a 73.1% increase.
Womacks Casino (Cripple Creek, Colorado, USA) - Net operating revenue at
Womacks Casino in Cripple Creek, Colorado decreased 38.4% to $3,086,000 for
the third quarter of 2008 from $5,011,000 for the third quarter of 2007.
Gaming revenue in the Cripple Creek market as a whole declined 7.0% during
this period compared to a 38.3% decline at Womacks. Management attributes
this to a decline in consumer discretionary income, increased fuel prices and
a smoking ban that went into effect on January 1, 2008. In addition,
management believes that Womacks lost a significant amount of its customers
due to a renovation that began during the fourth quarter of 2007 and continued
through the first quarter of 2008. Finally, in late May 2008, a new larger
casino opened in Cripple Creek. The Company is reviewing strategies to
improve revenue at Womacks. The Company has replaced the property manager and
reduced staffing levels at the casino. As a result of lower gaming revenue at
Womacks, we recorded a $7.2 million impairment of goodwill at this property
for the three months ended September 30, 2008. Womacks' Adjusted EBITDA(*) for
the third quarter of 2008 was $616,000 compared to $1,832,000 in the third
quarter of 2007, a decrease of 66.4%. The decrease in Adjusted EBITDA(*) is due
to the decline in revenue, which management believes was a result of the above
mentioned factors.
Womacks' net operating revenue decreased 34.7% to $8,827,000 for the nine
months ended September 30, 2008 from $13,510,000 for the nine months ended
September 30, 2007. Gaming revenue in the Cripple Creek market as a whole
declined 9.0% compared to a 33.2% decline at Womacks. Womacks' Adjusted
EBITDA(*) for the nine months ended September 30, 2008 was $1,328,000 compared
to $4,804,000 in the same 2007 period. The decrease in Adjusted EBITDA(*) is
primarily due to the decline in revenue.
Century Casino and Hotel (Central City, Colorado, USA) - Net operating
revenue at the Century Casino and Hotel in Central City decreased 21.8% to
$4,655,000 for the third quarter of 2008 compared to $5,954,000 reported for
the third quarter of 2007. Adjusted EBITDA(*) for the Century Casino & Hotel in
Central City for the third quarter of 2008 decreased to $1,184,000 compared to
$1,769,000 in the third quarter of 2007, a 33.1% decrease. The decrease in
Adjusted EBITDA(*) is primarily due to a decrease in gaming revenue, the direct
result of a decline in the Central City market as a whole of 20.1% during this
period. As a result of lower gaming revenue at the Century Casino and Hotel in
Central City, we recorded a $2.1 million impairment of goodwill at this
property for the three months ended September 30, 2008.
Net operating revenue at the Century Casino and Hotel in Central City was
$13,679,000 for the nine months ended September 30, 2008 compared to
$15,529,000 for the nine months ended September 30, 2007, a decrease of 11.9%.
Gaming revenue in the Central City market as a whole decreased 20.3% during
this period. Adjusted EBITDA(*) for the Century Casino & Hotel in Central City
for the nine months ended September 30, 2008 was $3,235,000 compared to
$3,902,000 in the same 2007 period, a decrease of 17.1%. The decrease in
Adjusted EBITDA(*) is primarily due to the decline in revenue.
On December 31, 2007, the Company acquired the remaining 35% of all
issued and outstanding partnership units from the minority investor in its
casino in Central City, Colorado. The Company now recognizes 100% of the
casino's net income or losses.
The Caledon Hotel, Spa and Casino (Caledon, South Africa) - Net operating
revenue at the Caledon Hotel, Spa and Casino decreased 12% to $3,988,000 for
the third quarter of 2008 compared to $4,526,000 reported for the third
quarter of 2007, primarily due to a decline in the average exchange rate
between the U.S. dollar and the rand and lower customer attendance. Net
operating revenue in rand decreased 4.7% to ZAR 31,000,000 for the third
quarter of 2008 from ZAR 32,519,000 for the third quarter of 2007. Our market
share of the Western Cape gaming revenue declined from 5.1% for the third
quarter of 2007 to 4.8% for the third quarter of 2008. As Caledon is located
approximately 60 miles from Cape Town, management believes that rising fuel
prices throughout 2008 have led local patrons from Cape Town to gamble in Cape
Town as opposed to traveling to our casino. The Caledon Hotel, Spa and
Casino's Adjusted EBITDA(*) for the third quarter of 2008 was $1,263,000
compared to $1,761,000 in the third quarter of 2007, a decrease of 28.3%. The
decrease in Adjusted EBITDA(*) is primarily due to the decline in the average
exchange rate and in revenue.
The Caledon Hotel, Spa and Casino's net operating revenue was $12,277,000
for the nine months ended September 30, 2008 compared to $13,324,000 for the
nine months ended September 30, 2007, a decrease of 7.9%. The decrease is
primarily due to the decline in the average exchange rate between the U.S.
dollar and the rand and lower customer attendance. In rand, net operating
revenue at Caledon was ZAR 94,312,000 for the nine months ended September 30,
2008 compared to ZAR 95,213,000 for the nine months ended September 30, 2007,
a decrease of 0.9%. Our market share of the Western Cape gaming revenue
declined from 5.0% for the nine months ended September 30, 2007 to 4.7% for
the nine months ended September 30, 2008. As mentioned above, management
believes that rising fuel prices are causing local patrons to gamble in Cape
Town as opposed to traveling to our casino. The Caledon Hotel, Spa and
Casino's Adjusted EBITDA(*) for the nine months ended September 30, 2008 was
$4,147,000 compared to $5,010,000 in the same 2007 period, a decrease of
17.2%. The decrease in Adjusted EBITDA(*) is primarily due to the decline in the
average exchange rate and in revenue.
Century Casino and Hotel (Newcastle, South Africa) - Net operating
revenue at the Century Casino and Hotel in Newcastle increased 5% to
$3,023,000 for the third quarter of 2008 compared to $2,885,000 reported for
the third quarter of 2007, primarily due to increased attendance offset by a
decline in the average exchange rate between the U.S. dollar and the rand.
Management believes that attendance increased at the casino due to increased
marketing efforts and special promotions. Net operating revenue in rand at the
Century Casino and Hotel in Newcastle increased 15% to ZAR 23,493,000 for the
third quarter of 2008 from ZAR 20,508,000 for the third quarter of 2007.
Adjusted EBITDA(*) at the Century Casino and Hotel in Newcastle for the third
quarter of 2008 was $1,044,000 compared to $628,000 for the third quarter of
2007,a 66.2% increase. Our market share of the KwaZulu-Natal gaming revenue
increased from 3.4% for the three months ended September 30, 2007 to 3.6% for
the three months ended September 30, 2008.
Net operating revenue at the Century Casino and Hotel in Newcastle
increased slightly to $8,622,000 for the nine months ended September 30, 2008
compared to $8,595,000 for the nine months ended September 30, 2007. In rand,
net operating revenue at the Century Casino and Hotel in Newcastle increased
8.0% to ZAR 66,351,000 for the nine months ended September 30, 2008 from ZAR
61,408,000 for the nine months ended September 30, 2007. Adjusted EBITDA(*) at
the Century Casino and Hotel in Newcastle for the nine months ended September
30, 2008 was $2,794,000 compared to $2,601,000 in the same 2007 period, a 7.4%
increase. The increase in Adjusted EBITDA(*) is primarily due to a decline in
general and administrative expenses at the property.
Other Operations - The Company's other operations, which include the
Century Casino Millennium in Prague and the Company's ship-based casinos,
contributed net operating revenue of $1,453,000 and Adjusted EBITDA(*) of
$177,000 for the third quarter of 2008 compared to net operating revenue of
$1,375,000 and Adjusted EBITDA(*) of $206,000 for the third quarter of 2007.
These operations contributed net operating revenue of $3,971,000 and
$3,888,000 for the nine months ended September 30, 2008 and 2007,
respectively, and contributed Adjusted EBITDA(*) of $356,000 and $479,000 for
the nine months ended September 30, 2008 and 2007, respectively. The decrease
in Adjusted EBITDA(*) is primarily due to increased professional fees and
payroll at these operations.
Corporate - Corporate operations reported negative Adjusted EBITDA(*) of
$1,507,000 for the third quarter of 2008 compared to negative Adjusted EBITDA(*)
of $1,824,000 for the third quarter of 2007. The increase in Adjusted EBITDA(*)
is primarily due to a decrease in general and administrative expenses of
$265,000 and the recognition of an additional $181,000 of equity earnings from
our investment in Casinos Poland, offset by a decline in foreign currency
gains recognized period over period of $84,000. We acquired a 33.3% interest
in Casinos Poland in March 2007.
Corporate operations reported negative Adjusted EBITDA(*) of $4,330,000 for
the nine months ended September 30, 2008 compared to negative Adjusted EBITDA(*)
of $4,584,000 for the nine months ended September 30, 2007. The increase in
Adjusted EBITDA(*) is due to the recognition of an additional $675,000 of equity
earnings from our investment in Casinos Poland and a decrease in general and
administrative expenses of $408,000, offset by a decrease in foreign currency
gains recognized period over period of $789,000.
For the three months ended September 30, 2008, we reserved approximately
$6.0 million in U.S. deferred taxes. If we conclude at a later date that the
realization of these deferred taxes is more likely than not, we will reduce
the valuation allowance as appropriate.
The Company will post a copy of the Form 10-Q filed with the SEC for the
third quarter 2008 on its website at
http://www.cnty.com/corporate/investor/sec-filings/ on Monday, November 10,
2008.
On Monday, November 10, 2008, Century Casinos will host its Q3 2008
Earnings Conference Call, at 10:30am MST; 6:30pm CET respectively. US domestic
participants please dial +1-800-894-5910; all other international participants
please use +1-785-424-1052 to dial in. Participants may also listen to the
call live or obtain a recording of the call on our website at
http://www.cnty.com/corporate/investor/financial-results/.
(*) See discussion and reconciliation of Adjusted EBITDA below.
CENTURY CASINOS, INC. AND SUBSIDIARIES
FINANCIAL INFORMATION - US GAAP BASIS
Century Casinos, Inc.
Condensed Consolidated Statements of Operations (Unaudited)
(Amounts in thousands, except for share information)
For the Three Months For the Nine Months
Ended September 30, Ended September 30,
2008 2007 2008 2007
Operating Revenue:
Gaming $19,816 $23,163 $58,753 $64,541
Hotel, food and
beverage 3,729 3,479 10,390 9,325
Other 581 550 1,659 1,489
Gross revenue 24,126 27,192 70,802 75,355
Less promotional
allowances 2,265 2,468 6,415 6,897
Net operating
revenue 21,861 24,724 64,387 68,458
Operating Costs and Expenses:
Gaming 8,289 9,222 24,618 25,790
Hotel, food and
beverage 2,827 2,802 7,864 7,927
General and
administrative 6,316 7,239 19,888 20,024
Impairments and other
write-offs,
net of recoveries 9,357 9 9,357 34
Depreciation 2,369 1,987 6,945 6,310
Total operating
costs and expenses 29,158 21,259 68,672 60,085
Earnings from Equity
Investment 218 37 766 91
(Loss) earnings from
Operations (7,079) 3,502 (3,519) 8,464
Non-Operating Income
(Expense):
Interest income 37 85 162 802
Interest expense (1,197) (1,649) (4,106) (5,280)
Other (expense)
income, net (71) (73) 108 714
Non-operating
(expense), net (1,231) (1,637) (3,836) (3,764)
(Loss) Earnings before
Income Taxes,
Minority Interest
and Preferred
Dividends (8,310) 1,865 (7,355) 4,700
Provision for income
taxes 5,710 27 5,006 655
(Loss) Earnings before
Minority Interest
and Preferred
Dividends (14,020) 1,838 (12,361) 4,045
Minority interest
in subsidiary
losses, net (131) 170 (311) 822
Preferred dividends
issued by subsidiary (47) (59) (150) (335)
Net (Loss) Earnings $(14,198) $1,949 $(12,822) $4,532
(Loss) Earnings Per Share:
Basic $(0.60) $0.08 $(0.55) $0.20
Diluted $(0.60) $0.08 $(0.55) $0.19
Weighted Average Shares
Outstanding:
Basic 23,522,763 23,051,067 23,432,279 23,043,351
Diluted 23,526,305 23,833,498 23,541,985 23,904,861
CENTURY CASINOS, INC. AND SUBSIDIARIES
FINANCIAL INFORMATION - US GAAP BASIS
Century Casinos, Inc.
Condensed Consolidated Balance Sheets (Unaudited)
(Amounts in thousands)
September 30, December 31,
2008 2007
Assets
Current Assets $11,622 $21,109
Other Assets 149,999 176,974
Total Assets $161,621 $198,083
Liabilities and Shareholders' Equity
Current Liabilities $21,351 $23,903
Non-Current Liabilities 45,119 62,191
Shareholders' Equity 95,151 111,989
Total Liabilities and Shareholders' Equity $161,621 $198,083
CENTURY CASINOS, INC. AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION
Century Casinos, Inc.
Net Operating Revenue by Property (Unaudited)
(Amounts in thousands)
For the Three Months For the Nine Months
Ended September 30, Ended September 30,
2008 2007 2008 2007
Century Casino & Hotel,
Edmonton $5,656 $4,930 $17,008 $13,562
Womacks Casino & Hotel,
Cripple Creek 3,086 5,011 8,827 13,510
Century Casino & Hotel,
Central City 4,655 5,954 13,679 15,529
Caledon Hotel, Spa &
Casino 3,988 4,526 12,277 13,324
Century Casino & Hotel,
Newcastle 3,023 2,885 8,622 8,595
Century Casino Prague &
Cruise Ships 1,453 1,375 3,971 3,888
Corporate - 43 3 50
Consolidated net
operating revenue $21,861 $24,724 $64,387 $68,458
Century Casinos, Inc.
Adjusted EBITDA Margins(*)(*) by Property (Unaudited)
For the Three Months For the Nine Months
Ended September 30, Ended September 30,
2008 2007 2008 2007
Century Casino & Hotel,
Edmonton 38% 30% 37% 27%
Womacks Casino & Hotel,
Cripple Creek 20% 37% 15% 36%
Century Casino & Hotel,
Central City 25% 30% 24% 25%
Caledon Hotel, Spa &
Casino 32% 39% 34% 38%
Century Casino & Hotel,
Newcastle 35% 22% 32% 30%
Century Casino Prague &
Cruise Ships 12% 15% 9% 12%
Corporate - - - -
Consolidated Adjusted
EBITDA Margin(*)(*) 22% 24% 22% 23%
CENTURY CASINOS, INC. AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION
Century Casinos, Inc.
Reconciliation of Adjusted EBITDA(*) by Property (Unaudited)
For the Three Months Ended September 30, 2008
(Amounts in thousands)
Cripple Central
Edmonton Creek City Caledon
Net Earnings $1,006 $(7,151) $ (2,140) $560
Minority Interest - - - -
Interest Income (2) - - (9)
Interest Expense 348 (21) 462 138
Income Taxes 414 51 (22) 247
Depreciation 363 494 758 327
Stock Compensation - - - -
Impairments and other
write-offs, net of
recoveries - 7,233 2,124 -
Loss on Disposition of
Fixed Assets - 10 2 -
Adjusted EBITDA(*) $2,129 $616 $1,184 $1,263
Prague
& Cruise
Newcastle Ships Corporate Total
Net Earnings $362 $59 $(6,894) $(14,198)
Minority Interest 91 - 40 131
Interest Income (9) (13) (4) (37)
Interest Expense 179 - 91 1,197
Income Taxes 188 - 4,832 5,710
Depreciation 233 114 80 2,369
Stock Compensation - - 348 348
Impairments and other
write-offs, net of
recoveries - - - 9,357
Loss on Disposition of
Fixed Assets - 17 - 29
Adjusted EBITDA(*) $1,044 $ 177 $(1,507) $4,906
Century Casinos, Inc.
Reconciliation of Adjusted EBITDA(*) by Property (Unaudited)
For the Three Months Ended September 30, 2007
(Amounts in thousands)
Cripple Central
Edmonton Creek City Caledon
Net Earnings $534 $908 $312 $958
Minority Interest - - (224) -
Interest Income (13) (3) (6) (21)
Interest Expense 373 (28) 734 176
Income Taxes 266 556 191 319
Depreciation 347 399 762 329
Stock Compensation - - - -
Impairments and other
write-offs, net of
recoveries - - - -
(Gain) Loss on disposition
of fixed assets (4) - - -
Other - - - -
Adjusted EBITDA(*) $1,503 $1,832 $1,769 $1,761
Prague
& Cruise
Newcastle Ships Corporate Total
Net Earnings $275 $75 $(1,113) $1,949
Minority Interest 7 - 47 (170)
Interest Income (5) (7) (30) (85)
Interest Expense 183 - 211 1,649
Income Taxes 129 3 (1,437) 27
Depreciation 30 55 65 1,987
Stock Compensation - - 430 430
Impairments and other
write-offs, net of
recoveries (3) 12 - 9
(Gain) Loss on disposition
of fixed assets 6 68 3 73
Other 6 - - 6
Adjusted EBITDA(*) $628 $ 206 $(1,824) $5,875
CENTURY CASINOS, INC. AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION
Century Casinos, Inc.
Reconciliation of Adjusted EBITDA(*) by Property (Unaudited)
For the Nine Months Ended September 30, 2008
(Amounts in thousands)
Cripple Central
Edmonton Creek City Caledon
Net Earnings $2,939 $(7,208) $ (2,554) $1,893
Minority Interest - - - -
Interest Income (17) - - (50)
Interest Expense 1,059 (69) 1,695 445
Income Taxes 1,258 17 (299) 849
Depreciation 1,080 1,355 2,267 976
Stock Compensation - - - -
Impairments and other
write-offs, net of
recoveries - 7,233 2,124 -
Loss on Disposition
of Fixed Assets - - 2 34
Adjusted EBITDA(*) $6,319 $1,328 $3,235 $4,147
Prague
& Cruise
Newcastle Ships Corporate Total
Net Earnings $914 $25 $(8,831) $(12,822)
Minority Interest 188 - 123 311
Interest Income (38) (30) (27) (162)
Interest Expense 573 - 403 4,106
Income Taxes 462 3 2,716 5,006
Depreciation 695 337 235 6,945
Stock Compensation - - 1,045 1,045
Impairments and other
write-offs, net of
recoveries - - - 9,357
Loss on Disposition of
Fixed Assets - 21 6 63
Adjusted EBITDA(*) $2,794 $356 $(4,330) $13,849
Century Casinos, Inc.
Reconciliation of Adjusted EBITDA(*) by Property (Unaudited)
For the Nine Months Ended September 30, 2007
(Amounts in thousands)
Cripple Central
Edmonton Creek City Caledon
Net Earnings $1,138 $2,255 $307 $2,337
Minority Interest - - (1,149) -
Interest Income (57) (8) (6) (83)
Interest Expense 1,031 (10) 2,389 545
Income Taxes 586 1,383 188 1,216
Depreciation 954 1,183 2,173 973
Stock Compensation - - - -
Impairments and other
write-offs, net of
recoveries - - - 28
(Gain) Loss on disposition
of fixed assets (1) 1 - (6)
Other - - - -
Adjusted EBITDA(*) $3,651 $4,804 $3,902 $5,010
Prague
& Cruise
Newcastle Ships Corporate Total
Net Earnings $748 $106 $(2,359) $4,532
Minority Interest 197 - 130 (822)
Interest Income (13) (16) (619) (802)
Interest Expense 552 - 773 5,280
Income Taxes 424 2 (3,144) 655
Depreciation 599 257 171 6,310
Stock Compensation - - 458 458
Impairments and other
write-offs, net of
recoveries 6 - - 34
(Gain) Loss on disposition
of fixed assets 6 67 6 73
Other 82 63 - 145
Adjusted EBITDA(*) $2,601 $479 $(4,584) $15,863
CENTURY CASINOS, INC. AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION
(*) The Company defines Adjusted EBITDA as earnings before interest,
income taxes, depreciation, amortization, minority interest, pre-opening
expenses, non-cash stock based compensation charges, asset impairment costs,
gains (losses) on disposition of fixed assets, discontinued operations and
certain other one-time items. Intercompany transactions consisting primarily
of management fees and interest, along with their related tax effects, are
excluded from the presentation of net earnings and Adjusted EBITDA reported
for each property. These adjustments have no effect on the consolidated
results. Adjusted EBITDA is not considered a measure of performance recognized
under accounting principles generally accepted in the United States of
America. Management believes that Adjusted EBITDA is a valuable measure of the
relative performance among its operating segments. 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. EBITDA (Earnings before interest, taxes,
depreciation and amortization) is used by our lending institutions 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. Not all of the aforementioned benefits and costs occur in
each reporting period, but have been included in the definition based on
historic activity.
(*)(*) The Company defines Adjusted EBITDA margin as Adjusted EBITDA divided
by net operating revenue. 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 an international casino entertainment company
that owns and operates the Womacks Casino and Hotel in Cripple Creek,
Colorado, the Century Casino & Hotel in Central City, Colorado, the Century
Casino & Hotel in Edmonton, Alberta, Canada, and the Century Casino Millennium
in the Marriott Hotel in Prague, Czech Republic. The Company also operates
casinos aboard the Silver Cloud and the vessels of Oceania Cruises. Through
its subsidiary Century Casinos Africa (Pty) Limited, it owns and operates The
Caledon Hotel, Spa & Casino near Cape Town, South Africa, as well as 60% of,
and provides technical casino services to, Century Casino Newcastle, in
Newcastle, South Africa. Furthermore, the Company's Austrian subsidiary,
Century Casinos Europe GmbH, holds a 33.3% ownership interest in Casinos
Poland Ltd, the owner and operator of seven full casinos and one slot casino
in Poland. The Company continues to pursue other international projects in
various stages of development.
For more information about Century Casinos, visit our new website at
www.centurycasinos.com. Century Casinos' common stock trades on The NASDAQ
Capital Market(R) and the Vienna Stock Exchange under the symbol CNTY.
CENTURY CASINOS, INC. AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION
This release may contain "forward-looking statements" within the meaning
of 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 revenue
growth, marketing efforts, progress at and plans for our casinos, gaming
market growth, the impact of improvements at our properties, the impact of the
Colorado law banning smoking in casinos and impact of economic downturn. 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 sections
entitled "Risk Factors" under Item 1A in our Annual Report on Form 10-K filed
on March 17, 2008 and under Part II. Item 1A of our Quarterly Report on Form
10-Q filed on November 10, 2008. 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.
For further information: Peter Hoetzinger, Co CEO & President,
+1-719-689-5813, +43-664-355-3935, peter.hoetzinger@cnty.com, or Larry
Hannappel, Senior Vice President, +1-719-229-6448, larry.hannappel@cnty.com,
both of Century Casinos, Inc. Web Site: http://www.centurycasinos.com
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