Century Casinos, Inc. Announces Third Quarter 2015 Results

COLORADO SPRINGS, Colo., Nov. 6, 2015 /CNW/ -- Century Casinos, Inc. (NASDAQ Capital Market®: CNTY) today announced its financial results for the three and nine months ended September 30, 2015.

Third Quarter 2015 Highlights*

  • Net operating revenue was $33.5 million, a 19% increase from the three months ended September 30, 2014.
  • Adjusted EBITDA** was $6.7 million, a 133% increase from the three months ended September 30, 2014.
  • Net earnings attributable to Century Casinos, Inc. shareholders were $2.7 million, a 243% increase from the three months ended September 30, 2014.
  • Earnings per share were $0.11.  
  • Book value per share*** at September 30, 2015 was $5.04.

The period over period increases in net operating revenue, Adjusted EBITDA** and net earnings attributable to Century Casinos, Inc. shareholders relate to the operating results of Century Downs Racetrack and Casino ("CDR") and Century Bets!, Inc. ("CBS"). CDR opened its casino on April 1, 2015 and held its first horse race on April 25, 2015. The Company owns 75% of CDR through one of its subsidiaries. CBS began operating the pari-mutuel network in southern Alberta on May 4, 2015. The Company owns 75% of CBS through one of its subsidiaries.




















Amounts in thousands, except per share data

For the Three Months
Ended September 30, 

For the Nine Months
Ended September 30,

Consolidated Results:

2015

2014

% Change

2015

2014

% Change

Net operating revenue

$

33,526

$

28,123

19%

$

101,803

$

88,790

15%

Earnings from operations


4,082


715

471%


14,021


2,020

594%

Net earnings attributable to Century Casinos, Inc. shareholders


2,728


796

243%


11,170


1,462

664%












Adjusted EBITDA**

$

6,719

$

2,881

133%

$

18,292

$

8,806

108%












Earnings per share:











Basic

$

0.11

$

0.03

267%

$

0.46

$

0.06

667%

Diluted

$

0.11

$

0.03

267%

$

0.46

$

0.06

667%

Weighted average common shares: 











Basic 


24,399


24,381



24,389


24,380


Diluted


24,440


24,417



24,430


24,419


"This is our fourth consecutive quarter with revenue and Adjusted EBITDA growth," Erwin Haitzmann and Peter Hoetzinger, Co Chief Executive Officers of Century Casinos, said. "We are very pleased with the momentum we have in our business across all geographies and all customer demographics," they continued.

Three and Nine Months Ended September 30, 2015 Results*

The table below shows the Company's operating segments that are included in each of the Company's reportable segments:



Reportable Segment

Operating Segment

Canada

Century Casino & Hotel - Edmonton

Canada

Century Casino Calgary

Canada

Century Downs Racetrack and Casino

Canada

Century Bets!

United States

Century Casino & Hotel – Central City

United States

Century Casino & Hotel – Cripple Creek

Poland

Casinos Poland

Corporate and Other

Cruise Ships & Other

Corporate and Other

Corporate Other

Net operating revenue increased by $5.4 million, or 19%, and $13.0 million, or 15%, for the three and nine months ended September 30, 2015 compared to the three and nine months ended September 30, 2014. Following is a summary of the changes in net operating revenue by segment for the three and nine months ended September 30, 2015 compared to the three and nine months ended September 30, 2014:















Net Operating Revenue


For the Three Months

For the Nine Months


 Ended September 30,

 Ended September 30,


2015/2014

2015/2014

Amounts in millions


Change


% Change


Change


% Change

Canada


$

3.9



48%


$

8.4



33%

United States



0.7



10%



1.5



7%

Poland



2.0



19%



1.8



5%

Corporate and Other



(1.3)



(58%)



1.3



23%

Total


$

5.4



19%


$

13.0



15%

Earnings from operations increased by $3.4 million, or 471%, and $12.0 million, or 594%, for the three and nine months ended September 30, 2015 compared to the three and nine months ended September 30, 2014.  Following is a summary of the changes in earnings from operations by segment for the three and nine months ended September 30, 2015 compared to the three and nine months ended September 30, 2014:















Earnings from Operations


For the Three Months

For the Nine Months


 Ended September 30,

 Ended September 30,


2015/2014

2015/2014

Amounts in millions


Change


% Change


Change


% Change

Canada


$

1.4



71%


$

3.7



62%

United States



0.7



86%



1.6



93%

Poland



1.5



270%



4.3



383%

Corporate and Other



(0.2)



(14%)



2.3



50%

Total


$

3.4



471%


$

12.0



594%

Net earnings attributable to Century Casinos, Inc. shareholders increased by $1.9 million, or 243%, and $9.7 million, or 664%, for the three and nine months ended September 30, 2015 compared to the three and nine months ended September 30, 2014. Following is a summary of the changes in net earnings attributable to Century Casinos, Inc. shareholders by segment for the three and nine months ended September 30, 2015 compared to the three and nine months ended September 30, 2014:















Net Earnings Attributable to
Century Casinos, Inc. Shareholders


For the Three Months

For the Nine Months


 Ended September 30,

 Ended September 30,


2015/2014

2015/2014

Amounts in millions


Change


% Change


Change


% Change

Canada


$

0.4



26%


$

1.9



43%

United States



0.4



86%



1.0



93%

Poland



0.8



319%



2.4



436%

Corporate and Other



0.3



31%



4.3



123%

Total


$

1.9



243%


$

9.7



664%

Items deducted from or added to earnings from operations to arrive at net earnings 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.















Segment Results (in thousands)*




























The following are segment results for net operating revenue and Adjusted EBITDA**.



















































Net Operating Revenue





Adjusted EBITDA**





Net Operating Revenue





Adjusted EBITDA**





For the Three Months




For the Three Months




For the Nine Months




For the Nine Months




Ended September 30,





Ended September 30,




Ended September 30,




Ended September 30,




2015


2014


% Change


2015


2014


% Change


2015


2014


% Change


2015


2014


% Change

Canada

$

12,198


$

8,264



48%


$

3,902


$

2,393



63%


$

33,951


$

25,533



33%


$

11,697


$

7,324



60%

United States


7,958



7,252



10%



2,140



1,455



47%



21,960



20,456



7%



5,330



3,555



50%

Poland


12,449



10,425



19%



1,771



260



581%



38,858



37,087



5%



5,411



2,014



169%

Corporate and Other


921



2,182



(58%)



(1,094)



(1,227)



11%



7,034



5,714



23%



(4,146)



(4,087)



(1%)

Consolidated

$

33,526


$

28,123



19%


$

6,719


$

2,881



133%


$

101,803


$

88,790



15%


$

18,292


$

8,806



108%

Balance Sheet and Liquidity

As of September 30, 2015, the Company had $29.8 million in cash and cash equivalents and $39.8 million in outstanding debt on its balance sheet compared to $24.7 million in cash and cash equivalents and $38.3 million in outstanding debt at December 31, 2014. The $39.8 million in outstanding debt as of September 30, 2015 includes $21.7 million related to the Company's Bank of Montreal credit agreement, $3.5 million related to Casinos Poland, Ltd. and $14.6 million related to a long-term land lease by CDR.  

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 September 30, 2015 on its website at http://corporate.cnty.com/investor-relations/sec-filings. The Company will also post a presentation on the third quarter results on its website at http://corporate.cnty.com/investor-relations/presentations-and-interviews.

Century Casinos will host its third quarter 2015 earnings conference call today at 8:00 am MST; 4:00 pm CET, respectively. 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 https://centurycasinos.adobeconnect.com/earningsrelease or obtain a recording of the call on the Company's website until November 30, 2015 at http://corporate.cnty.com/investor-relations/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-GAAP financial measures. See discussion and reconciliation of Non-GAAP financial measures in Supplemental Information below.

*** The Company defines book value per share as total Century Casinos shareholders' equity divided by outstanding common shares.



(continued)

CENTURY CASINOS, INC. AND SUBSIDIARIES

FINANCIAL INFORMATION – US GAAP BASIS


Century Casinos, Inc.

Condensed Consolidated Statements of Earnings (Loss)















For the Three Months
Ended September 30, 

For the Nine Months
Ended September 30, 

Amounts in thousands, except for per share information


2015


2014


2015


2014

Operating revenue:













Net operating revenue


$

33,526


$

28,123


$

101,803


$

88,790

Operating costs and expenses:













Total operating costs and expenses



29,444



27,408



87,782



86,770

Earnings from operations



4,082



715



14,021



2,020

Non-operating income (expense):













  Interest income



6



11



21



72

  Interest expense



(816)



(707)



(2,527)



(2,090)

  Gain on foreign currency transactions and other



240



200



1,142



375

Non-operating (expense), net



(570)



(496)



(1,364)



(1,643)

Earnings before income taxes



3,512



219



12,657



377

Income tax provision



373



138



402



786

Net earnings (loss)



3,139



81



12,255



(409)

Net (earnings) loss attributable to non-controlling interest



(411)



715



(1,085)



1871

Net earnings attributable to Century Casinos, Inc. shareholders


$

2,728


$

796


$

11,170


$

1,462














Earnings per share attributable to Century Casinos, Inc.:













  Basic


$

0.11


$

0.03


$

0.46


$

0.06

  Diluted


$

0.11


$

0.03


$

0.46


$

0.06















CENTURY CASINOS, INC. AND SUBSIDIARIES

FINANCIAL INFORMATION - US GAAP BASIS


Century Casinos, Inc.

Condensed Consolidated Balance Sheets

(Amounts in thousands)



September 30,


December 31,



2015


2014

Assets







Current assets


$

35,651


$

30,163

Property and equipment, net



132,770



134,627

Other assets



22,020



22,677

Total assets


$

190,441


$

187,467








Liabilities and Equity







Current liabilities


$

24,865


$

28,128

Non-current liabilities



37,853



36,913

Century Casinos, Inc. shareholders' equity



123,099



118,428

Non-controlling interest



4,624



3,998

Total liabilities and equity


$

190,441


$

187,467



CENTURY CASINOS, INC. AND SUBSIDIARIES

SUPPLEMENTAL INFORMATION


Century Casinos, Inc.

Adjusted EBITDA Margins ** by Segment (unaudited)







For the Three Months

For the Nine Months





Ended September 30,

Ended September 30,


2015

2014

2015

2014

Canada

32%

29%

35%

29%

United States

27%

20%

24%

17%

Poland

14%

3%

14%

5%

Corporate and Other

(119%)

(56%)

(59%)

(72%)

Consolidated Adjusted EBITDA Margin

20%

10%

18%

10%



Century Casinos, Inc.

Reconciliation of Adjusted EBITDA * to Net Earnings (Loss) by Segment

For the three months ended September 30, 2015


Amounts in thousands



For the Three Months Ended September 30, 2015

















Canada


United States


Poland


Corporate and
Other


Total

Net earnings (loss)

$

1,957


$

931


$

536


$

(696)


$

2,728

Interest expense (income), net


783



0



31



(4)



810

Income taxes (benefit)


519



571



227



(944)



373

Depreciation and amortization


644



638



678



118



2,078

Non-controlling interest


145



0



266



0



411

Non-cash stock-based compensation


0



0



0



423



423

(Gain) loss on foreign currency transactions and other


(148)



0



(98)



6



(240)

Loss on disposition of fixed assets


2



0



131



3



136

Other one-time (income) costs


0



0



0



0



0

Adjusted EBITDA

$

3,902


$

2,140


$

1,771


$

(1,094)


$

6,719



Century Casinos, Inc.

Reconciliation of Adjusted EBITDA * to Net Earnings (Loss) by Segment

For the three months ended September 30, 2014


Amounts in thousands

















For the Three Months Ended September 30, 2014



Canada


United States


Poland


Corporate and
Other


Total

Net earnings (loss)

$

1,548


$

501


$

(245)


$

(1,008)


$

796

Interest expense (income), net


612



0



89



(5)



696

Income taxes (benefit)


387



307



(135)



(421)



138

Depreciation and amortization


487



647



725



191



2,050

Non-controlling interest


(594)



0



(121)



0



(715)

Non-cash stock-based compensation


0



0



0



14



14

(Gain) loss on foreign currency transactions and other


(47)



0



(155)



2



(200)

Gain on disposition of fixed assets


0



0



(12)



0



(12)

Other one-time (income) costs


0



0



114



0



114

Adjusted EBITDA

$

2,393


$

1,455


$

260


$

(1,227)


$

2,881



Century Casinos, Inc.

Reconciliation of Adjusted EBITDA * to Net Earnings (Loss) by Segment

For the nine months ended September 30, 2015


Amounts in thousands

















For the Nine Months Ended September 30, 2015



Canada


United States


Poland


Corporate and
Other


Total

Net earnings

$

6,355


$

2,125


$

1,884


$

806


$

11,170

Interest expense (income), net


2,406



0



110



(10)



2,506

Income taxes (benefit)


1,479



1,301



743



(3,121)



402

Depreciation and amortization


1,635



1,904



1,925



316



5,780

Non-controlling interest


143



0



942



0



1,085

Non-cash stock-based compensation


0



0



0



1,230



1,230

(Gain) loss on foreign currency transactions and other


(670)



0



(466)



(6)



(1,142)

Loss on disposition of fixed assets


4



0



273



4



281

Preopening expenses


345



0



0



0



345

Other one-time (income) costs


0



0



0



(3,365)



(3,365)

Adjusted EBITDA

$

11,697


$

5,330


$

5,411


$

(4,146)


$

18,292



Century Casinos, Inc.

Reconciliation of Adjusted EBITDA * to Net Earnings (Loss) by Segment

For the nine months ended September 30, 2014


Amounts in thousands

















For the Nine Months Ended September 30, 2014



Canada


United States


Poland


Corporate and
Other



Total

Net earnings (loss)

$

4,458


$

1,103


$

(561)


$

(3,538)


$

1,462

Interest expense (income), net


1,798



0



251



(31)



2,018

Income taxes (benefit)


1,400



676



(226)



(1,064)



786

Depreciation and amortization


1,432



1,775



2,141



472



5,820

Non-controlling interest


(1,592)



0



(279)



0



(1,871)

Non-cash stock-based compensation


0



0



0



57



57

(Gain) loss on foreign currency transactions and other


(69)



0



(320)



14



(375)

Loss on disposition of fixed assets


0



1



784



3



788

Other one-time (income) costs


(103)



0



224



0



121

Adjusted EBITDA

$

7,324


$

3,555


$

2,014


$

(4,087)


$

8,806

*  The Company defines Adjusted EBITDA as net earnings (loss) before interest expense (income), net, income taxes (benefit), depreciation, amortization, non-controlling interest (earnings) losses 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 and other, gain on business combination 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 (loss) 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 accounting principles generally accepted in the United States of America ("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) 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.

About Century Casinos, Inc.:

Century Casinos, Inc. is an international casino entertainment company that operates worldwide. The Company 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. Through its Austrian subsidiary, Century Casinos Europe GmbH ("CCE"), the Company holds a 66.6% ownership interest in Casinos Poland Ltd., the owner and operator of nine casinos in Poland. The Company, through CCE, also holds a 75% ownership interest in both CDR, which began operations in the north metropolitan area of Calgary, Alberta, Canada in April 2015, and CBS, which began operating the pari-mutuel off-track horse betting network in Southern Alberta, Canada in May 2015. The Company operates eleven ship-based casinos onboard ships of the following cruise lines: TUI Cruises, Windstar Cruises and Nova Star Cruises, Ltd. The Company manages the operations of the casino at the Hilton Aruba Caribbean Resort and Casino. The Company, through CCE, 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 Mendoza Casino in Mendoza, Argentina. The Company continues to pursue other international projects in various stages of development.

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

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, operating efficiencies, synergies and operational performance, the prospects for projects in development, debt repayment, investments in joint ventures, outcomes of legal proceedings 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, 2014 and in subsequent Form 10-Q filings. 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.

 

SOURCE Century Casinos, Inc.

For further information: Peter Hoetzinger, Co CEO & President, +1 719 689 5813, +43 664 355 3935, peter.hoetzinger@cnty.com, http://www.cnty.com


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