Century Casinos Reports 2006 Earnings



    COLORADO SPRINGS, Colo., March 16 /CNW/ -- For the quarter ended December
31, 2006, Century Casinos, Inc. (Nasdaq:   CNTY; Vienna Stock Exchange)
increased net earnings by 63.7% compared to the same quarter in 2005. Net
earnings were $2,757,000, or $0.12 per basic share for the quarter ended
December 31, 2006, compared to net earnings of $1,684,000, or $0.08 per basic
share for the same period in 2005.  The average weighted number of common
shares outstanding was 22,990,958 for the quarter ended December 31, 2006
compared to 21,527,748 for the same period in 2005. Adjusted EBITDA(*) for the
fourth quarter of 2006 was $5,013,000 compared to $2,189,000 in the fourth
quarter of 2005, a 129% increase.  Casino revenue increased by $9,011,000 in
the quarter ended December 31, 2006, or 102.2%, over the same 2005 period,
primarily due to the acquisition of a 60% majority interest of a casino
operation in Newcastle, South Africa on April 1, 2006, the opening of the
casino in Central City, Colorado on July 11, 2006, the opening of the casino
in Edmonton, Alberta, Canada on November 17, 2006 and continued strong
performance of our Caledon, South Africa subsidiary.  The Company absorbed
$1,299,000 in pre-tax write-offs of equipment deemed obsolete or unsuitable
for our operations at various properties, the remaining value of property held
for sale in Nevada and the goodwill for Century Casino Millennium.  In the
most recent quarter, the Company recognized $5,231,000 in pre-tax income on
the sale of its interest in Gauteng, South Africa.  Interest expense on
non-capitalizable debt increased $959,000 primarily due to the interest
charges on bank debt agreements that funded the construction of the casinos
that opened in the third and fourth quarters of 2006.
    For the quarter ended December 31, 2006, the Company reported net
operating revenue of $17,964,000, a 93.6% increase over the $9,279,000
reported in the same 2005 period.  The loss from operations was $2,000,000 in
the fourth quarter of 2006 compared to earnings from operations of $1,465,000
in the fourth quarter of 2005.  The loss from operation in the fourth quarter
of 2006 primarily results from $1,848,000 in pre-opening expenses for the two
casinos that opened during the period and $1,299,000 in write-offs. On a
company-wide basis, casino operating margins(*)(*) for the quarter ended December
31, 2006 were 54.5% compared to 59.9% for the same period in 2005 primarily
due to pre-opening cost associated with opening casinos in Edmonton, Alberta
Canada and Newcastle, South Africa. On a company-wide basis, hotel, food and
beverage ("F&B") operating margins(*)(*) for the quarter ended December 31, 2006
were a negative 2.0% compared to 37.7% for the same period in 2005 as a result
of losses totaling $496,000 from ancillary services such as hotel, food and
beverage and dinner theater in Central City, Colorado and Edmonton, Alberta,
Canada.
    The Company reported a 50.3% increase in net operating revenue to
$56,285,000 for the twelve months ended December 31, 2006 from $37,445,000 in
the same 2005 period.  The Company reported earnings from operations of
$3,250,000 in 2006 compared to $5,845,000 in 2005.  The decrease in earnings
from operations can be attributed to pre-opening expenses of $3,428,000 and
net write-offs of $894,000 in 2006.  For the twelve months ended December 31,
2006, the Company reported net earnings of $7,629,000, or $0.33 per basic
share, compared to net earnings of $4,481,000, or $0.28 per basic share for
the twelve months ended December 31, 2005, an increase of 70.3% in net
earnings.  The increase is primarily due to the acquisition of our new casino
operation in Newcastle, South Africa, the sale of our interest in Gauteng,
South Africa and increased interest income, offset by the write-offs and
pre-opening expenses.  The average weighted number of common shares
outstanding was 22,777,707 for the twelve months ended December 31, 2006
compared to 15,941,448 for the same period in 2005, primarily due to the
Company's public offering of 7,132,667 shares in October 2005.  Adjusted
EBITDA(*) for the twelve month period was $13,559,000 in 2006 compared to
$9,203,000 in the same 2005 period, a 47.3% increase.

    
    Current Period Acquisitions and Other Recent Developments
    
    The Company opened its Century Casino in Edmonton, Canada on November 17,
2006 and a new facility for its Century Casino in Newcastle, South Africa, on
December 2, 2006.  The Company acquired 100% of G5 SP.z.o.o a Polish company
on March 12, 2007 which holds 33.3% of all issued and outstanding shares of
Casinos Poland Ltd.

    Caledon

    
    Three months ended December 31, 2006 vs. 2005
    
    Caledon's casino revenue increased 3.8% to $3,901,000 for the fourth
quarter of 2006 compared to $3,759,000 reported in the fourth quarter of 2005.
A deterioration of the Rand, quarter over quarter, has had a significant
impact on the results reported in dollars. Casino revenue, in Rand, increased
by 16.4% to R28,417,000 compared to R24,413,000 in the fourth quarter of 2005
primarily from slot machine win. Casino expenses in Rand increased 35.0% from
the fourth quarter of 2005 to the fourth quarter of 2006 primarily the result
of incremental fees on gaming revenues.  General and administrative expense
for Caledon decreased 12.8% to R3,654,000 in this quarter when compared to the
fourth quarter of 2005. Casino operating margins(*)(*), excluding the effect in
the Rand/Dollar conversion rate, were 55.2% for the three months ended
December 31, 2006 compared to 61.4% for the same period in 2005. Depreciation
expense increased R484,000 period over period.  Net earnings in the fourth
quarter of 2006 were $908,000 compared to $1,073,000 in the fourth quarter of
2005, or a 15.4% decrease primarily the result of dividends issued to a
preference shareholder totaling $138,000.  Caledon's adjusted EBITDA(*) for the
fourth quarter of 2006 was $1,910,000 compared to $1,814,000 in the fourth
quarter of 2005, a 5.3% increase.

    
    Twelve months ended December 31, 2006 vs. 2005
    
    Caledon's casino revenue increased by 7.4% for the twelve months ended
December 2006 to $15,632,000 compared to $14,549,000 in 2005.  The casino
revenue, in Rand, increased by 14.9%, year over year.  Casino expenses, in
Rand, increased by R6,281,000, or 17.6% during 2006 compared to 2005.  General
and administrative expense for Caledon was R17,844,000 for the twelve months
ended December 31, 2006 and R16,443,000 for the same 2005 period, an increase
of 11.2%.  Casino operating margins(*)(*), excluding the effect in the Rand/Dollar
conversion rate, deteriorated slightly to 59.3% for the twelve months ended
December 31, 2006 from 61.2% for the same period in 2005.  Net earnings for
2006 were $3,816,000 compared to $3,132,000 in 2005, a 21.8% increase.  In
2006 Caledon net earnings are reduced by preferred dividends totaling
$138,000. No preferred dividends were paid in 2005.  Caledon's adjusted
EBITDA(*) for the twelve months ended December 31, 2006 was $7,539,000 compared
to $6,692,000 in 2005, a 12.7% increase.

    Womacks

    
    Three months ended December 31, 2006 vs. 2005
    
    Womacks' net operating revenue decreased to $3,722,000, or 3.6%, for the
fourth quarter of 2006 compared to $3,861,000 reported for the same period in
2005.  Total operating expenses increased $55,000, or 1.8%, to $3,099,000 in
the fourth quarter of 2006 from $3,044,000 in the fourth quarter of 2005.
Casino operating margins(*)(*) were 56.9% for the fourth quarter of 2006 compared
to 65.4% for the same 2005 quarter due primarily to $176,000 in slot game
conversions in the fourth quarter of 2006.  Net earnings reported for Womacks
in the fourth quarter of 2006 were $342,000 compared to $542,000 in the fourth
quarter of 2005.   Womacks' adjusted EBITDA(*) for the fourth quarter of 2006
was $1,018,000 compared to $1,230,000 in the fourth quarter of 2005.

    
    Twelve months ended December 31, 2006 vs. 2005
    
    Womacks' casino revenue was $17,860,000 for 2006 compared to $18,934,000
in 2005, a decrease of 5.7%.  Casino expenses decreased 8.0% from $6,514,000
in 2005 to $5,991,000 in 2006.  General and administrative expenses decreased
marginally to $3,591,000 for the twelve months ended December 31, 2006 from
$3,619,000 for the twelve months ended December 31, 2005.  Depreciation was
$1,606,000 compared to $1,703,000 for the twelve months ended December 31,
2006 and 2005, respectively.  Casino operating margins(*)(*) were 66.5% for the
twelve months ended December 31, 2006 compared to 65.6% for the same period in
2005.  Net earnings reported for Womacks for 2006 were $2,563,000 compared to
$3,055,000 in 2005, a 16.1% decrease.  Womacks' adjusted EBITDA(*) for the
twelve months ended December 31, 2006 was $6,104,000 compared to $6,359,000 in
2005.
    As previously reported, effective August 1, 2006, the Company hired Sam
Cocharo as the new general manager of Womacks. Mr. Cocharo has over 14 years
of casino management experience in the state of Colorado, most recently
serving as an assistant general manager of a large casino in Black Hawk,
Colorado.  In addition, there were a number of other changes made in key
management positions during the third quarter.

    Newcastle, South Africa

    
    Three months ended December 31, 2006
    
    For the three months ended December 31, 2006, net operating revenues at
this facility were $2,245,000. Casino operating margins(*)(*) were 62.4%,
generally consistent with our other South Africa property. The Newcastle
operation provided the Company with net earnings of $347,000 for the quarter
ended December 31, 2006.  The impact of pre-opening expenses for the new
property in Newcastle on net earnings was $226,000 in the fourth quarter of
2006.  Newcastle's adjusted EBITDA(*) for the fourth quarter of 2006 was
$601,000.

    
    April 1, 2006 to December 31, 2006
    
    As previously mentioned, on April 1, 2006, the Company acquired a 60%
controlling interest in Century Casino Newcastle (previously named the Monte
Vista Casino) located in Newcastle, South Africa.  For the period April 1,
2006 through December 31, 2006, net operating revenues at this facility were
$6,176,000. Casino operating margins(*)(*) were 61.4%.  The Newcastle operation
provided the Company with net earnings of $906,000 for the period April 1,
2006 through December 31, 2006.  The impact of pre-opening expenses for the
new property in Newcastle on net earnings was $226,000 in 2006.  Newcastle's
adjusted EBITDA(*) for the period April 1, 2006 through December 31, 2006 was
$1,884,000.

    Central City, Colorado

    
    Three months ended December 31, 2006
    
    For the three months ended December 31, 2006, net operating revenues at
this facility were $3,926,000. Casino operating margins(*)(*) were 61.5%, in line
with those achieved at our other Colorado property. The Central City operation
reported a net loss of $370,000 for the quarter ended December 31, 2006.
Although revenues have not yet met our expectations, gaming revenue has grown
consistently since opening and Central City recorded an increase of $437,000
in gaming revenues over the opening quarter despite poor weather conditions
and a traditionally slower quarter in Colorado.  Central City's adjusted
EBITDA(*) for the fourth quarter of 2006 was a negative $152,000.

    
    Six months ended December 31, 2006
    
    For the six months of operations, net operating revenues at this facility
were $8,617,000. Casino operating margins(*)(*) were 54.0%, primarily due to
additional cost associated with opening the casino in July 2006. Central City
did write off $567,000 worth of equipment that was deemed unsuitable for the
local market.  Central City's adjusted EBITDA(*) for the six months it was in
operation in 2006 was a negative $256,000.

    Edmonton, Alberta, Canada

    
    Three months ended December 31, 2006
    
    Edmonton reported $2,322,000 in net operating revenue since opening on
November 17, 2006.  Casino operating margins(*)(*) were 20.7% in the fourth
quarter of 2006 primarily due to pre-opening costs.  Edmonton reported a net
loss of $894,000 in the fourth quarter 2006.  The impact of pre-opening
expenses on net earnings in Edmonton was $1,023,000 for the quarter ended
December 31, 2006.  We are in the process of reviewing the cost and staffing
structure of the operation to bring them in line with current revenue levels.
    The Company will post a slide show presentation of the results of
operations for the fourth quarter of 2006 and year ended 2006 on its web site
at www.centurycasinos.com on Friday, March 16, 2007.



    
    CENTURY CASINOS, INC. AND SUBSIDIARIES
    CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (Unaudited)
    Amounts in thousands, except for share information

                                For The Three Months         For The Year
                                 Ended December 31,        Ended December 31,
                                 2006          2005        2006         2005
    Operating Revenue:
     Casino                    $17,832       $8,821      $54,499      $36,394
     Hotel, food and beverage    2,085        1,111        6,066        4,522
     Other                         406          227        1,174          783
                                20,323       10,159       61,739       41,699
    Less promotional
     allowances                  2,359          880        5,454        4,254
     Net operating revenue      17,964        9,279       56,285       37,445

    Operating Costs and Expenses:
     Casino                      8,119        3,542       23,123       14,293
     Hotel, food and beverage    2,126          692        4,926        2,776
     General and administrative  6,671        2,868       19,345       11,134
     Property write-downs and
      other write-offs,
      net of (recoveries)        1,299            -          894          (61)
     Depreciation and
      amortization               1,749          712        4,747        3,349
    Total operating costs
     and expenses               19,964        7,814       53,035       31,491
     (Loss) from Unconsolidated
      Subsidiary                     -            -            -         (109)
      Earnings from Operations  (2,000)       1,465        3,250        5,845

    Non-Operating Income (Expense):
     Interest income               301          354          896          476
     Interest expense           (1,629)        (670)      (3,406)      (2,290)
     Gain on sale of Gauteng
      interest                   5,231            -        5,231            -
     Other (expense)
      income, net                  171           12          469           13
     Non-operating items from
      unconsolidated subsidiary      -            -            -           (4)
    Non-operating income
    (expense), net               4,074         (304)       3,190       (1,805)
    Earnings before Income Taxes
     and Minority Interest       2,074        1,161        6,440        4,040
     (Benefit) Provision for
      income taxes                (259)        (290)         134          347
    Earnings before Minority
     Interest                    2,333        1,451        6,306        3,693
     Minority interest in
      subsidiary losses            562          233        1,461          788
     Preferred dividends issued
      by subsidiary               (138)           -         (138)           -
    Net Earnings                $2,757       $1,684       $7,629       $4,481

    Earnings Per Share:
     Basic                       $0.12        $0.08        $0.33        $0.28
     Diluted                     $0.12        $0.07        $0.32        $0.25

    Reconciliation to
     adjusted EBITDA(*)
     Net earnings               $2,757       $1,684       $7,629       $4,481
     Minority interest            (562)        (233)      (1,461)        (788)
     Interest income              (301)        (354)        (896)        (476)
     Interest expense            1,629          670        3,406        2,290
     Income taxes                 (259)        (290)         134          347
     Depreciation and
      amortization               1,749          712        4,747        3,349
     Adjusted EBITDA(*)           $5,013       $2,189      $13,559       $9,203



    CENTURY CASINOS, INC. AND SUBSIDIARIES
    CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
    Amounts in thousands

                                                   December 31,   December 31,
                                                       2006           2005
    Assets
      Current Assets                                 $41,167        $40,177
      Other Assets                                   156,693         83,171
      Total Assets                                  $197,980       $123,348

    Liabilities and Shareholders' Equity
      Current Liabilities                             35,991          9,639
      Non-Current Liabilities                         61,442         22,378
      Shareholders' Equity                           100,427         91,331
      Total Liabilities and Shareholders' Equity    $197,980       $123,348


    (*)Adjusted EBITDA (Earnings before interest, income taxes, depreciation,
     amortization and minority interest) 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 interest income, interest expense,
     income tax expense, depreciation, amortization and minority interest
     expense 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.

     (*)(*)Casino operating margin and F&B operating margin (as defined above) are
     not considered measures of performance recognized under accounting
     principles generally accepted in the United States of America.
     Management uses both measures to evaluate the efficiency of its internal
     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 Edmonton, Alberta, Canada, and the
Century Casino Millennium in the Marriott Hotel in Prague, Czech Republic;
operates the casinos aboard the Silver Wind, Silver Cloud, The World of
ResidenSea, and the vessels of Oceania Cruises; owns a 65% interest in, and
has a management contract for, Century Casino & Hotel in Central City,
Colorado. 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 casinos and one slot
arcade 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.

    This release may contain forward-looking statements that involve risks
and uncertainties. Among the other important factors which could cause actual
results to differ materially from those in the forward-looking statements are
economic, competitive, and governmental factors affecting the Company's
operations, markets, services and prices, as well as other factors detailed in
the Company's filings with the Securities and Exchange Commission, including
its recent filings on Forms 10-K, 10-Q, and 8-K.  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:

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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