Century Casinos, Inc. Announces First Quarter 2011 Results

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COLORADO SPRINGS, Colo., May 13, 2011 /CNW/ -- Century Casinos, Inc. (NASDAQ Capital Market® and Vienna Stock Exchange: CNTY) today announced its financial results for the three months ended March 31, 2011.

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    First Quarter 2011 Highlights

    --  Net operating revenue was $17.1 million, a 21% increase compared to
the
        three months ended March 31, 2010.
    --  Net earnings per share was $0.02 compared to $0.01 for the three
months
        ended March 31, 2010.
    --  Adjusted EBITDA* was $2.5 million, a 27% increase from the three
months
        ended March 31, 2010.


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                                   For the Three Months
                                   --------------------
    Amounts in thousands,
     except share and per
     share data                       Ended March 31,
    ---------------------             ---------------
                                                           %
    Consolidated Results:           2011         2010   Change
    ---------------------           ----         ----   -------
      Net operating revenue      $17,115      $14,137        21%
      ---------------------      -------      -------       ---
      Earnings from
       operations                    756          350       116%
      -------------                  ---          ---       ---
      Net earnings                   364          130       180%
      ------------                   ---          ---       ---
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    Adjusted EBITDA*              $2,524       $1,984        27%
    ----------------              ------       ------       ---
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    Basic and diluted
     earnings per share:
    --------------------
      Net earnings                 $0.02        $0.01       100%
      ------------                 -----        -----       ---
      Weighted-average
       common shares:
      ----------------
      Basic                   23,711,176   23,542,576
      -----                   ----------   ----------
      Dilutive                24,001,288   23,759,999
      --------                ----------   ----------


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"We are very pleased with our performance for the first quarter, especially when considering that each of our operations posted revenue increases and overall earnings from operations more than doubled," said Erwin Haitzmann and Peter Hoetzinger, Co-Chief Executive Officers of Century Casinos. "Initial results for the first half of the second quarter indicate further improvement," they continued.

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    First Quarter 2011 Results

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Net operating revenue increased by $3.0 million or 21% for the three months ended March 31, 2011 compared to the three months ended March 31, 2010. The increase in revenue is partially attributable to the addition of the Century Casino Calgary, which contributed an additional $0.8 million in net operating revenue during the three months ended March 31, 2011 compared to the prior year quarter. In addition, $0.8 million in revenue was added primarily by the additional seven ship based casinos in operation for the three months ended March 31, 2011 compared to the prior year quarter. Revenue in Edmonton, Central City and Cripple Creek also increased by $0.4 million, $0.2 million and $0.6 million, respectively from the three months ended March 31, 2010. Finally, the increase can be partially attributable to a 5% increase in the average exchange rate between the U.S. dollar and Canadian dollar.

Total operating costs and expenses increased by $2.5 million or 18% for the three months ended March 31, 2011 compared to the three months ended March 31, 2010. Total operating costs and expenses increased by $1.1 million at the Century Casino Calgary during the three months ended March 31, 2011 compared to the prior year quarter due to increased marketing expenses, the addition of a player's club point redemption program, additional staffing costs in order to provide improved customer service and the 5% increase in the average exchange rate between the U.S. dollar and Canadian dollar. In Canadian dollars, total operating costs and expenses in Calgary increased by $1.0 million or 58% for the three months ended March 31, 2011 compared to the prior year quarter.

Total operating costs and expenses also increased by $0.5 million compared to the three months ended March 31, 2010 as a result of higher concession and annual fees paid to cruise ship operators for the rights to operate ship based casinos. Total operating costs and expenses at our Colorado properties increased by $0.4 million for the three months ended March 31, 2011 compared to the prior year quarter due to increased gaming taxes as a result of higher gaming revenues and increased staffing costs in order to provide improved customer service. Finally, total operating costs and expenses increased by $0.2 million at our property in Edmonton due to the 5% increase in the average exchange rate between the U.S. dollar and Canadian dollar. In Canadian dollars, total operating costs and expenses in Edmonton remained flat at $4.2 million for the three months ended March 31, 2011 compared to the prior year quarter.

Net earnings increased by $0.2 million or 180% for the three months ended March 31, 2011 compared to the three months ended March 31, 2010. The increase is due to increases in earnings from operations at our Edmonton, Central City and Cripple Creek properties offset by losses from operations at our Calgary property and the 5% increase in the average exchange rate between the U.S. dollar and Canadian dollar.

Net earnings per share ("EPS") increased to $0.02 for the three months ended March 31, 2011 from $0.01 for the three months ended March 31, 2010.

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    Property Results (Continuing Operations)
    ----------------------------------------
    (in thousands)
    --------------
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                                     Net
                                  Operating          Adjusted
                                   Revenue           EBITDA*
                                  ---------          --------
                                   For the           For the
                                    Three             Three
                                    Months            Months
                                 Ended March       Ended March
                                     31,               31,
                                2011    2010      2011      2010
                                ----    ----      ----      ----
    Century Casino & Hotel,
     Edmonton                  5,753   5,360     1,839     1,649
    Century Casino, Calgary    2,588   1,742        98       179
    Century Casino & Hotel,
     Central City              4,400   4,172       959       921
    Century Casino & Hotel,
     Cripple Creek             2,837   2,265       530       192
    Cruise Ships & Other       1,535     598       232       157
    Corporate                      2       -    (1,134)   (1,114)
    Consolidated              17,115  14,137     2,524     1,984
                              ======  ======     =====     =====


    Balance Sheet and Liquidity

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As of March 31, 2011, the Company had $20.7 million in cash and cash equivalents and $11.2 million in debt obligations on its balance sheet compared to $21.5 million in cash and cash equivalents and $13.5 million in debt obligations at December 31, 2010.

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    Conference Call Information

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Today the Company will post a copy of the Form 10-Q filed with the SEC for the first quarter of 2011 on its website at http://corporate.cnty.com/en/investor-relations/sec-filings/.

Century Casinos will host its first quarter 2011 earnings conference call on May 13, 2011 at 10:00 am MDT; 6:00 pm CET, respectively. U.S. domestic participants should dial 1-800-862-9098. For all other international participants please use +1-785-424-1051 to dial in. Participants may also listen to the call live or obtain a recording of the call on the Company's website at http://corporate.cnty.com/en/investor-relations/financial-results.

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

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    CENTURY CASINOS, INC. AND SUBSIDIARIES
    FINANCIAL INFORMATION - US GAAP BASIS
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                                                        For the three months
                                                           ended March 31,
    Amounts in thousands, except for share
     information                                            2011         2010
                                                            ----         ----
    Operating revenue:
      Gaming                                             $14,825      $12,582
      Hotel, bowling, food and beverage                    3,243        2,765
      Other                                                  935          579
                                                             ---          ---
               Gross revenue                              19,003       15,926
    Less: Promotional allowances                          (1,888)      (1,789)
    Net operating revenue                                 17,115       14,137
                                                          ------       ------
    Operating costs and expenses:
      Gaming                                               6,931        5,433
      Hotel, bowling, food and beverage                    2,511        2,110
      General and administrative                           5,368        4,943
      Depreciation                                         1,641        1,489
                                                           -----        -----
    Total operating costs and expenses                    16,451       13,975
    Earnings from equity investment                           92          188
    Earnings from operations                                 756          350
                                                             ---          ---
    Non-operating income (expense):
      Interest income                                          2            8
      Interest expense                                      (246)        (291)
      Gains on foreign currency transactions and
       other                                                  75          243
    Non-operating income (expense), net                     (169)         (40)
                                                            ----          ---
    Earnings before income taxes                             587          310
    Income tax provision                                     223          180
    Net earnings                                            $364         $130
                                                            ====         ====
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    Earnings per share:
      Basic                                                $0.02        $0.01
                                                           -----        -----
      Diluted                                              $0.02        $0.01
                                                           =====        =====


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    CENTURY CASINOS, INC. AND SUBSIDIARIES
    FINANCIAL INFORMATION - US GAAP BASIS
    -------------------------------------
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                              Century Casinos, Inc.
                      Condensed Consolidated Balance Sheets
                             (Amounts in thousands)
                                                 March 31,   December 31,
                                                       2011           2010
                                                       ----           ----
    Assets
    Current Assets                                  $22,965        $23,467
    Property and equipment, net                     104,243        103,956
    Other Assets                                      9,438          9,303
    Total Assets                                   $136,646       $136,726
                                                   ========       ========
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    Liabilities and Shareholders' Equity
    Current Liabilities                             $12,270        $14,057
    Non-Current Liabilities                          11,111         11,171
    Shareholders' Equity                            113,265        111,498
    Total Liabilities and Shareholders'
     Equity                                        $136,646       $136,726
                                                   ========       ========


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    CENTURY CASINOS, INC. AND SUBSIDIARIES
    SUPPLEMENTAL INFORMATION
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    Century Casinos, Inc.
    Adjusted EBITDA Margins ** by Property (Unaudited)
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                                  For the Three
                                      Months
                                 Ended March 31,
                                 ---------------
                                  2011      2010
                                  ----      ----
    Century Casino & Hotel,
     Edmonton                       32%       31%
    Century Casino, Calgary          4%       10%
    Century Casino & Hotel,
     Central City                   22%       22%
    Century Casino & Hotel,
     Cripple Creek                  19%        8%
    Cruise Ships & Other            15%       26%
    Consolidated Adjusted
     EBITDA Margin                  15%       14%


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    Century Casinos, Inc.
    Reconciliation of Adjusted EBITDA * to Earnings (Loss) by Property
    (Unaudited)
    For the Three Months Ended March 31, 2011 and 2010
    Amounts In thousands
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                            Three Months Ended March 31, 2011
                            ---------------------------------
                                                 Central    Cripple
                            Edmonton   Calgary     City      Creek
                            --------   -------   --------   --------
    Earnings (loss)              895      (163)       196        168
    Interest income               (2)        -          -          -
    Interest expense             244         -          -          -
    Income taxes                 342        34        107        104
    Depreciation                 365       189        655        258
    Non-cash stock based
     compensation                  -         -          -          -
    Foreign currency
     (gains) losses               (5)       38          -          -
    Loss on disposition of
     fixed assets                  -         -          1          -
    Adjusted EBITDA*           1,839        98        959        530
                               =====       ===        ===        ===
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                             Cruise
                             Ships
                                &
                             Other    Corporate  Total
                            -------   ---------  -----
    Earnings (loss)             118        (850)   364
    Interest income               -           -     (2)
    Interest expense              -           2    246
    Income taxes                  2        (366)   223
    Depreciation                112          62  1,641
    Non-cash stock based
     compensation                 -          96     96
    Foreign currency
     (gains) losses               -        (108)   (75)
    Loss on disposition of
     fixed assets                 -          30     31
    Adjusted EBITDA*            232      (1,134) 2,524
                                ===      ======  =====
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                            Three Months Ended March 31, 2010
                            ---------------------------------
                                                 Central    Cripple
                            Edmonton   Calgary     City      Creek
                            --------   -------   --------   --------
    Earnings (loss)              719        94        162        (60)
    Interest income               (8)        -          -          -
    Interest expense             289         -          -          -
    Income taxes                 281        39         86        (37)
    Depreciation                 343        41        672        289
    Non-cash stock based
     compensation                  -         -          -          -
    Foreign currency
     losses (gains)               25         5          -          -
    Impairments and other
     write-offs                    -         -          -          -
    Loss on disposition of
     fixed assets                  -         -          1          -
    Adjusted EBITDA*           1,649       179        921        192
                               =====       ===        ===        ===
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                             Cruise
                             Ships
                                &
                             Other    Corporate  Total
                            -------   ---------  -----
    Earnings (loss)              67        (852)   130
    Interest income               -           -     (8)
    Interest expense              -           2    291
    Income taxes                  2        (191)   180
    Depreciation                 88          56  1,489
    Non-cash stock based
     compensation                 -         143    143
    Foreign currency
     losses (gains)               -        (165) (135)
    Impairments and other
     write-offs                   -        (108) (108)
    Loss on disposition of
     fixed assets                 -           1      2
    Adjusted EBITDA*            157      (1,114) 1,984
                                ===      ======  =====

    CENTURY CASINOS, INC. AND SUBSIDIARIES
    SUPPLEMENTAL INFORMATION

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* The Company defines Adjusted EBITDA as earnings (loss) before interest, income taxes, depreciation, amortization, pre-opening expenses, non-cash stock based compensation charges, asset impairment costs, gains (losses) on disposition of fixed assets, discontinued operations, realized foreign currency gains (losses) and certain other one-time items. 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 and Adjusted EBITDA reported for each property. 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. 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. 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 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. Please see the reconciliation of Adjusted EBITDA to earnings (loss) from continuing operations above.

** 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.

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    About Century Casinos, Inc.:
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Century Casinos, Inc. is an international casino entertainment company that owns and operates Century Casino & Hotels in Cripple Creek and Central City, Colorado, and in Edmonton, Alberta, Canada and the Century Casino in Calgary, Alberta, Canada. The Company also operates casinos aboard eleven luxury cruise vessels (Regatta, Insignia, Nautica, Marina, Mein Schiff 1, Wind Surf, Wind Star, Wind Spirit, Seven Seas Voyager, Seven Seas Mariner and Seven Seas Navigator) and signed contracts for casinos on two additional ships (Oceania Cruises' Riviera and TUI Cruises' Mein Schiff 2) that are expected to start operations in the coming months. Through its Austrian subsidiary, Century Casinos Europe GmbH, the Company holds a 33.3% ownership interest in Casinos Poland Ltd., the owner and operator of seven full casinos in Poland. The Company also manages the casino at the Radisson Aruba Resort, Casino & Spa in Aruba, Caribbean. Century Casinos, Inc. continues to pursue other international projects in various stages of development.

For more information about Century Casinos, visit our website at www.centurycasinos.com. Century Casinos' common stock trades on The NASDAQ Capital Market® and the Vienna Stock Exchange under the symbol CNTY.

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, future results of operations, expected competition, the impact of new gaming laws, plans for our casinos and the impact of the 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 for the year ended December 31, 2010. 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.

For further information: Peter Hoetzinger, Co CEO & President of Century Casinos, Inc., +1-719-689-5813, +43 664 355 3935, peter.hoetzinger@cnty.com Web Site: http://www.centurycasinos.com


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