Century Casinos Reports Q1 2009 Results



    COLORADO SPRINGS, Colo., May 11 /CNW/ -- Century Casinos, Inc. (Nasdaq:  
CNTY; Vienna Stock Exchange) announced today the financial results for the
three months ended March 31, 2009.

    For the first quarter of 2009, net operating revenue from continuing
operations was $11,999,000 (operating results from discontinued operations
have been excluded from this discussion) and consolidated Adjusted EBITDA(*) was
$2,099,000. This represents an 11% decrease in net operating revenue from
continuing operations over the same quarter of last year ($13,530,000 in the
first quarter of 2008) and an 8% increase in consolidated Adjusted EBITDA(*)
($1,947,000 in the first quarter of 2008). We experienced a decline in net
operating revenue at our properties in Colorado, primarily due to a decrease
in our market share of the Cripple Creek, Colorado gaming market (at Womacks)
and a decline in the overall gaming market in Central City, Colorado (at the
Century Casino and Hotel). Net operating revenue in Edmonton, as reported in
U.S. dollars, was 14% lower than the same period in 2008 but increased by 7%
in the local currency (Canadian dollar). The reported results were negatively
affected by a 24% decrease in the average exchange rate between the U.S.
dollar and Canadian dollar in the first quarter of 2009 compared to the first
quarter of 2008. Operating earnings from continuing operations increased to
$176,000 in the first quarter of 2009 compared to a loss of $66,000 in the
first quarter of 2008.

    The Company reported a loss from continuing operations of $1,473,000, or
($0.07) per basic and fully diluted share for the first quarter of 2009. The
Company reported a loss from continuing operations of $568,000, or ($0.02) per
basic and fully diluted share, for the first quarter of 2008. Foreign currency
losses reduced basic and fully diluted earnings per share by $0.02 for the
first quarter of 2009 and foreign currency gains increased basic and fully
diluted earnings per share by $0.01 for the first quarter of 2008. During the
third quarter of 2008, the Company established a valuation allowance on its
U.S. deferred taxes. The tax effect on net operating income or losses incurred
in the U.S. will reduce or increase this valuation allowance.  As a result,
during the first quarter of 2009, the Company did not recognize tax benefits
of $500,000 on operating losses incurred in the U.S.  The Company has
accumulated deferred tax assets of $4.2 million which can be applied against
the tax on potential future US income.

    Including discontinued operations, the Company reported net earnings of
$345,000, or $0.01 per basic and fully diluted share, for the first quarter of
2009. During the first quarter of 2009, the Company reported a gain of
$877,000, or $0.04 per basic and fully diluted share, on the previously
reported disposition of the Century Casino Millennium. The Company reported
net earnings of $541,000, or $0.02 per basic and fully diluted share, for the
first quarter of 2008.
    

    Update on sale of Century Casino Africa

    
    On December 19, 2008, the Company through a subsidiary, entered into an
agreement to sell all of the outstanding shares of Century Casinos Africa
(Pty) Limited ("CCA") for a gross selling price of ZAR 460.0 million ($48.3
million) less the balance of third party South African debt and other agreed
to amounts. Net proceeds from the transaction are expected to be approximately
ZAR 357.3 million ($37.5 million) and are payable at closing, which is
expected to occur towards the end of the first half of 2009. CCA owns the
Caledon Hotel, Spa & Casino and 60% of the Century Casino & Hotel in
Newcastle, South Africa. On April 24, 2009, the Competition Tribunal of South
Africa approved the transaction. The closing of the transaction is still
subject to approval by the Western Cape Gambling and Racing Board and the
KwaZulu-Natal Gambling Board.

    The Company's discontinued operations had a combined carrying value of
approximately $23,509,000 at March 31, 2009. Net operating revenue of our
discontinued operations was $5,330,000 and $7,450,000 for the first quarter of
2009 and 2008, respectively. Earnings from discontinued operations were
$1,818,000 and $1,109,000 for the first quarter of 2009 and 2008,
respectively, including an $877,000 gain on the sale of Century Casino
Millennium.
    

    Property Results (Continuing Operations)

    
    Century Casino & Hotel (Edmonton, Alberta, Canada) - Net operating
revenue at the Century Casino & Hotel in Edmonton decreased by 14% to
$4,796,000 for the first quarter of 2009 compared to $5,557,000 for the first
quarter of 2008, due to a decline in the average exchange rate between the
U.S. dollar and the Canadian dollar. In Canadian dollars, net operating
revenue increased by 7% to $5,970,000 for the first quarter of 2009 compared
to $5,579,000 for the first quarter of 2008. This increase is the result of an
increase of 15.7% in table revenue and an increase in slot revenue of 1.5%.
Adjusted EBITDA(*) was $1,775,000 for the first quarter of 2009 and $1,912,000
for the first quarter of 2008, a decrease of 7%, which can also be attributed
to the decline in the average exchange rate between the U.S. dollar and the
Canadian dollar. In Canadian dollars, Adjusted EBITDA(*) increased by 15%, from
CAD 1,917,000 for the three months ended March 31, 2008 to CAD 2,208,000 for
the three months ended March 31, 2009.

    Womacks Casino (Cripple Creek, Colorado, USA) - Net operating revenue at
Womacks Casino in Cripple Creek, Colorado decreased 10.8% to $2,572,000 for
the first quarter of 2009 from $2,882,000 for the first quarter of 2008. This
represents an 18.5% decrease in the market share while our share of the slot
machines in the Cripple Creek market declined by 19.7%.  The Company is
reviewing strategies to improve revenue at Womacks and has reduced staffing
levels at the casino. Womacks' Adjusted EBITDA(*) for the first quarter of 2009
was $494,000 compared to $279,000 in the first quarter of 2008, an increase of
77%. The increase is primarily due to cost cutting measures at the casino.

    Century Casino and Hotel (Central City, Colorado, USA) - Net operating
revenue at the Century Casino and Hotel in Central City decreased 6% to
$4,163,000 for the first quarter of 2009 compared to $4,407,000 reported for
the first quarter of 2008. The Central City gaming market as a whole declined
9.5%.  Adjusted EBITDA(*) for the Century Casino & Hotel in Central City for the
first quarter of 2009 increased to $1,063,000 compared to $835,000 in the
first quarter of 2008, a 27% increase. As with Womacks, the increase in
Adjusted EBITDA(*) is primarily due to cost cutting measures at the casino.

    Cruise Ships - The Company's ship-based casinos contributed net operating
revenue of $468,000 and Adjusted EBITDA(*) of $58,000 for the first quarter of
2009 compared to net operating revenue of $683,000 and Adjusted EBITDA(*) of
$150,000 for the first quarter of 2008. Management believes that reduced
occupancy levels on the ships can be attributed to the general downturn in the
global economy which also led casino guests to spend less per visit; however
management believes that a 10% increase in passenger visitation to the casino
is attributable to targeted marketing efforts. Management believes that 30%
fewer gaming days on the Silvercloud during the three months ended March 31,
2009, compared to the three months ended March 31, 2008, negatively impacted
our gaming revenue.

    On November 24, 2008, we entered into an exclusive, long-term agreement
with TUI Cruises GmbH ("TUI") whereby we were selected by TUI to operate
casinos on all cruise ships that TUI will put into service before December 31,
2012. The first vessel is anticipated to go into service in May 2009.

    Corporate - Corporate operations reported negative Adjusted EBITDA(*) of
$1,291,000 for the first quarter of 2009 compared to negative Adjusted EBITDA(*)
of $1,229,000 for the first quarter of 2008. The decrease in Adjusted EBITDA(*)
is primarily due to a decline in earnings recorded from our equity investment
in Casinos Poland of $371,000, offset by a decrease in general and
administrative expenses of $309,000. Our earnings from Casinos Poland declined
due to a below average hold in the month of February 2009 and a decline in the
average exchange rate between the between the U.S. dollar and Polish zloty of
44.8% when comparing the first quarter of 2008 to the first quarter of 2009.

    The Company will post a copy of the Form 10-Q filed with the SEC for the
first quarter of 2009 on its web site at
www.cnty.com/corporate/investor/sec-filings/ on Monday, May 11, 2009.

    On Monday, May 11, 2009, Century Casinos will host its Q1 2009 Earnings
Conference Call, at 10:30 am MDT; 6:30pm CEST respectively. US domestic
participants please dial +1-800-895-0198; all other international participants
please use +1-785-424-1053 to dial in. Participants may also listen to the
call live or obtain a recording of the call on our website at
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 Earnings (Unaudited)
                    (Amounts in thousands, except for share information)
    

    
                                                   For the Three Months
                                                      Ended March 31,
                                                  2009              2008
    Operating revenue:
      Gaming                                    $11,472           $12,974
      Hotel, food and beverage                    1,899             2,084
      Other                                         409               453
        Gross revenue                            13,780            15,511
      Less promotional allowances                 1,781             1,981
        Net operating revenue                    11,999            13,530
    

    
    Operating costs and expenses:
      Gaming                                      4,469             5,392
      Hotel, food and beverage                    1,540             1,728
      General and administrative                  4,331             5,267
      Depreciation                                1,572             1,669
        Total operating costs and expenses       11,912            14,056
    Earnings from unconsolidated subsidiary          89               460
    Operating earnings (loss) from continuing
     operations                                     176               (66)
    

    
    Non-operating income (expense):
      Interest income                                 9                12
      Interest expense                             (900)           (1,233)
      (Losses) gains on foreign currency
       transactions                                (525)              119
        Non-operating (expense), net             (1,416)           (1,102)
    Loss from continuing operations before
     income taxes and minority interest          (1,240)           (1,168)
      Income tax provision (benefit)                219              (645)
    Loss from continuing operations before
     minority interest                           (1,459)             (523)
      Minority interest in subsidiary earnings      (14)              (45)
    Loss from continuing operations              (1,473)             (568)
    

    
    Discontinued operations:
      Earnings from discontinued operations       1,204             1,382
      Gain on disposition of Century Casino
       Millennium                                   877                 -
      Provision for income taxes                    263               273
    Earnings from discontinued operations         1,818             1,109
    

    Net earnings                                   $345              $541



    
    CENTURY CASINOS, INC. AND SUBSIDIARIES
    FINANCIAL INFORMATION - US GAAP BASIS
    

    
                             Century Casinos, Inc.
                               Earnings per Share
    

    
                                                  For the Three Months
                                                     Ended March 31,
                                                 2009              2008
    Basic earnings per share:
      Loss from continuing operations            $(0.07)           $(0.02)
      Earnings from discontinued operations        0.08              0.04
      Net earnings                                $0.01             $0.02
    

    
    Diluted earnings per share:
      Loss from continuing operations            $(0.07)           $(0.02)
      Earnings from discontinued operations        0.08              0.04
      Net earnings                                $0.01             $0.02
    

    
    Weighted Average Shares Outstanding:
      Basic                                  23,524,067        23,302,562
      Diluted                                23,721,222        23,632,076
    


    
                             Century Casinos, Inc.
                Condensed Consolidated Balance Sheets (Unaudited)
                             (Amounts in thousands)
    

    
                                                March 31,       December 31,
                                                  2009              2008
    Assets
      Current Assets, excluding assets
       held for sale                            $10,232            $9,707
      Assets held for sale (all current)         33,249            35,983
      Other Assets                              100,353           104,316
      Total Assets                             $143,834          $150,006
    

    
    Liabilities and Shareholders' Equity
      Current Liabilities, excluding
       liabilities related to assets held
       for sale                                 $15,205           $17,521
      Liabilities related to assets
       held for sale (all current)                9,740            10,770
      Non-Current Liabilities                    27,883            29,231
      Shareholders' Equity                       91,006            92,484
      Total Liabilities and Shareholders'
       Equity                                  $143,834          $150,006
    



    
    CENTURY CASINOS, INC. AND SUBSIDIARIES
    SUPPLEMENTAL INFORMATION
    

    
                              Century Casinos, Inc.
                   Net Operating Revenue by Property (Unaudited)
                             (Amounts in thousands)
    

    
                                                  For the Three Months
                                                      Ended March 31,
                                                  2009              2008
    Century Casino & Hotel, Edmonton             $4,796            $5,557
    Womacks Casino & Hotel (Cripple Creek)        2,572             2,882
    Century Casino & Hotel, Central City          4,163             4,407
    Cruise Ships                                    468               683
    Corporate                                         -                 1
      Consolidated net operating revenue        $11,999           $13,530
    


    
                               Century Casinos, Inc.
                   Adjusted EBITDA Margins(*)(*) by Property (Unaudited)
    

    
                                                    For the Three Months
                                                       Ended March 31,
                                                   2009              2008
    Century Casino & Hotel, Edmonton                37%               34%
    Womacks Casino & Hotel (Cripple Creek)          19%               10%
    Century Casino & Hotel. Central City            26%               19%
    Cruise Ships                                    12%               22%
    Corporate                                        -                 -
    Consolidated Adjusted EBITDA Margin(*)(*)           17%               14%
    




    
    CENTURY CASINOS, INC. AND SUBSIDIARIES
    SUPPLEMENTAL INFORMATION
    

    
                                Century Casinos, Inc.
                Reconciliation of Adjusted EBITDA(*)  to Earnings from
                     Continuing Operations by Property (Unaudited)
                       For the Three Months Ended March 31, 2009
                              (Amounts in thousands)
    

    
                                  Cripple  Central  Cruise
                        Edmonton   Creek    City     Ships  Corporate  Total
    

    
    Earnings from
     continuing
     operations           $881      $21    $(131)     $-   $(2,244) $(1,473)
    Minority interest        -        -        -       -        14       14
    Interest income         (2)       -       (1)      -        (6)      (9)
    Interest expense       249       64      537       -        50      900
    Income taxes           349       13      (93)      -       (50)     219
    Depreciation           299      396      751      58        68    1,572
    Stock compensation       -        -        -       -       349      349
    Foreign currency
     (gains) losses         (1)       -        -       -       526      525
    Impairments and
     other write-offs        -        -        -       -         2        2
    Loss on disposition
     of fixed assets         -        -        -       -         -        -
    Adjusted EBITDA(*)    $1,775     $494   $1,063     $58   $(1,291)  $2,099
    


    
                                Century Casinos, Inc.
                  Reconciliation of Adjusted EBITDA(*)  to Earnings from
                      Continuing Operations by Property (Unaudited)
                        For the Three Months Ended March 31, 2008
                                (Amounts in thousands)
    

    
                                  Cripple  Central  Cruise
                        Edmonton   Creek    City     Ships  Corporate  Total
    

    
    Earnings from
     continuing
     operations           $847     $(65)   $(377)   $86    $(1,059)   $(568)
    Minority interest        -        -        -      -         45       45
    Interest income        (10)       -        -      -         (2)     (12)
    Interest expense       360      (28)     701      -        200    1,233
    Income taxes           376      (41)    (243)    (2)      (735)    (645)
    Depreciation           355      423      754     64         73    1,669
    Stock compensation       -        -        -      -        348      348
    Foreign currency
     (gains) losses        (16)       -        -      -       (103)    (119)
    Impairments and
     other write-offs        -        -        -      -          -        -
    Loss on disposition
     of fixed assets         -      (10)       -      2          4       (4)
    Adjusted EBITDA(*)    $1,912     $279     $835   $150    $(1,229)  $1,947
    



    
    CENTURY CASINOS, INC. AND SUBSIDIARIES
    SUPPLEMENTAL INFORMATION
    

    
                                Century Resorts Alberta
             Reconciliation of Adjusted EBITDA(*)  to Net Earnings (Unaudited)
                                 in Canadian Dollars
                               (Amounts in thousands)
    

    
                                          For the three      For the three
                                          months ended       months ended
                                         March 31, 2009     March 31, 2008
    

    
    Net earnings                             CAD  1,095          CAD  822
    Interest income                                 (2)              (10)
    Interest expense                                310               361
    Income taxes                                    432               390
    Depreciation                                    373               357
    Foreign currency (gain)                           -               (3)
    Adjusted EBITDA(*)                         CAD  2,208         CAD 1,917
    


    
    (*) The Company defines Adjusted EBITDA as earnings from continuing
      operations 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, realized foreign
      currency gains (losses) 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. Please see the
      reconciliation of Adjusted EBITDA to earnings from continuing operations
      on the prior pages. 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.



    CENTURY CASINOS, INC. AND SUBSIDIARIES
    SUPPLEMENTAL INFORMATION

    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, and the
Century Casino & Hotel in Edmonton, Alberta, Canada. The Company also operates
casinos aboard the Silver Cloud and the vessels of Oceania Cruises and has an
agreement to operate the casinos on all vessels (estimated to be three) put
into service by TUI Cruises before December 31, 2012. 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 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" 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 proceeds
from and the closing of our sale of Century Casinos Africa, progress at and
plans for our casinos and the 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 16, 2009. 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, 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


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