Century Casinos Enters Into Agreement to Acquire Casino in Calgary, Alberta,
Canada


    


    
</pre>
<p><location>COLORADO SPRINGS</location>, Colo., <chron>Dec. 15</chron> /CNW/ -- Century Casinos, Inc. (Nasdaq:   CNTY; <location>Vienna</location> Stock Exchange: CNTY) announced today that the Company's Austrian subsidiary, Century Casinos <location>Europe</location> GmbH ("CCE"), has entered into a definitive agreement to acquire 100% of the outstanding common stock of Frank Sisson's Silver Dollar Ltd. ("FSSD") and 100% of the outstanding common stock of EGC Properties Ltd ("EGC"), the owner and operator of Silver Dollar ("Silver Dollar") casino in <location>Calgary</location>, Alberta, <location>Canada</location> and the related land. The total consideration for the transaction is <money>$10,650,000</money> (USD), plus/minus a working capital adjustment.</p>
<p/>
<p>The Silver Dollar is a 93,000 square foot casino facility located on approximately seven acres of land in <location>Calgary</location>. The casino facility includes 504 slot machines, 16 table games, 15 video lottery terminals, two restaurants, a lounge, a 5,000 square foot showroom, an 18,000 square foot convention center and a 38-lane bowling alley.</p>
<p/>
<p>On <chron>April 15, 2009</chron>, Evergreen Gaming Corporation, the company that acquired the Silver Dollar in 2007, filed for protection from creditors under the Companies' Creditors Arrangement Act in <location>Vancouver</location>. On <chron>June 24, 2009</chron>, a receiver was appointed by the courts to manage the assets of FSSD and EGC. We believe its current performance is not indicative of its real potential.</p>
<p/>
<p>Century Casinos already owns and operates a casino in Alberta, <location>Canada</location>, namely the Century Casino & Hotel in <location>Edmonton</location>. That property generated net operating revenue of CAD 23,200,000 and Adjusted EBITDA* of CAD 8,000,000 for the trailing twelve months ending <chron>September 30, 2009</chron>.</p>
<p/>
<p>"We are excited about expanding in Alberta, <location>Canada</location>, by entering the <location>Calgary</location> gaming market with the addition of the Silver Dollar to Century's portfolio of casino hotels. Once we have made certain improvements at the property and refined its market position, we believe the Silver Dollar has the potential to substantially contribute to our overall performance", said the Company's Co CEOs Erwin Haitzmann and Peter Hoetzinger.</p>
<p/>
<p>The transaction is subject to customary closing conditions, including the receipt of necessary regulatory and governmental approvals. The transaction is expected to close in the first quarter 2010. The total purchase price will be paid out of the Company's cash on hand.</p>
<pre>
    

    About Century Casinos, Inc.:
    
</pre>
<p>Century Casinos, Inc. is an international casino entertainment company that owns and operates the Womacks Casino & Hotel in Cripple Creek, Colorado, the Century Casino & Hotel in Central City, Colorado, and the Century Casino & Hotel in <location>Edmonton</location>, <location>Canada</location>. The Company also operates casinos aboard five luxury cruise vessels (Silver Cloud, Regatta, Insignia, Nautica, Mein Schiff). Through its Austrian subsidiary, Century Casinos <location>Europe</location> GmbH, the Company holds a 33.3% ownership interest in Casinos <location>Poland</location> Ltd., the owner and operator of seven full casinos and one slot casino in <location>Poland</location>. Century Casinos, Inc. continues to pursue other international projects in various stages of development.</p>
<p/>
<p>For more information about Century Casinos, visit our website at <a href="http://www.centurycasinos.com">www.centurycasinos.com</a>. Century Casinos' common stock trades on The NASDAQ Capital Market® and the <location>Vienna</location> Stock Exchange under the symbol CNTY.</p>
<p/>
<p>* The Company defines Adjusted EBITDA as earnings 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. Adjusted EBITDA is not considered a measure of performance recognized under accounting principles generally accepted in the <location>United States</location> 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 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 net earnings for Century Resorts Alberta below. Not all of the aforementioned benefits and costs occur in each reporting period.</p>
<pre>
    



    
</pre>
<p> </p>
<p> </p>
<p> </p>
<pre>
    
                    Century Resorts Alberta
               Reconciliation of Adjusted EBITDA
                  to Net Earnings (Unaudited)
          (Amounts in thousands, in Canadian Dollars)
    
</pre>
<p> </p>
<pre>
    
                                      For the trailing twelve
                                            months ended
                                         September 30, 2009
    
</pre>
<p> </p>
<pre>
    
    Net earnings                           CAD      3,766
    Interest income                                    (8)
    Interest expense                                1,349
    Income taxes                                    1,391
    Depreciation                                    1,489
    Foreign currency (gains)                           (2)
                                                      ---
    Adjusted EBITDA*                       CAD      7,985
                                           ==============


    
</pre>
<p>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 the pending purchase of the Silver Dollar casino. 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 <chron>March 16, 2009</chron>. 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.</p>
<pre>
    




    

For further information: For further information: Peter Hoetzinger, Co CEO & President, +1-719-689-5813, or +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


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890