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.

Peter Hoetzinger, Co CEO & President, [phone], [phone], [email protected], http://www.cnty.com