Century Casinos Reports Second Quarter 2007 Earnings



    COLORADO SPRINGS, Colo., Aug. 9 /CNW/ -- Century Casinos, Inc. (Nasdaq:  
CNTY) (Vienna Stock Exchange: CNTY) reported net operating revenues of
$22,673,000 for the quarter ended June 30, 2007, compared to net operating
revenues of $11,869,000 for the quarter ended June 30, 2006. Casino revenue
increased by $10,229,000 or 91% for the quarter ended June 30, 2007 over the
same 2006 period, primarily due to 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 the opening of a new casino in Newcastle,
South Africa in December 2006.
    For the quarter ended June 30, 2007, the Company reported net earnings of
$1,041,000 or $0.05 per share compared to net earnings of $1,331,000 or $0.06
per share for the quarter ended June 30, 2006. The decrease is primarily due
to increased interest charges and increased depreciation charges resulting
from our new properties.  Adjusted EBITDA(*) for the second quarter of 2007 was
$4,590,000 compared to $2,214,000 in the second quarter of 2006, a 107%
increase. For the quarter ended June 30, 2007, earnings from operations
increased $1,328,000, or 126%, compared to the quarter ended June 30, 2006,
primarily the result of the opening of the three casinos mentioned above. On a
Company-wide basis, casino operating margins(*)(*) for the quarter ended June 30,
2007 were 60.6% compared to 61.3% for the same period in 2006 primarily due to
increased marketing efforts and associated expenses at our casinos.
    For the six months ended June 30, 2007, the Company reported net earnings
of $2,583,000, or $0.11 per basic share, compared to net earnings of
$3,021,000, or $0.13 per basic share, for the six months ended June 30, 2006.
The Company reported a 105% increase in net operating revenue to $43,734,000
for the six months ended June 30, 2007 from $21,345,000 in the same 2006
period. Adjusted EBITDA(*) for the six month period was $9,796,000 in 2007
compared to $4,606,000 in the same 2006 period. The decrease in net earnings
for the six months ended June 30, 2007 is primarily due to increased interest
charges and depreciation charges relating to our new properties.
    Management believes that a string of severe winter storms negatively
affected our businesses in Colorado for approximately seven straight weeks
beginning in December 2006 and ending in January 2007, which consequently had
a negative impact on year to date reported earnings and adjusted EBITDA(*).
    
    Cripple Creek, Colorado
    Three months ended June 30, 2007 vs. 2006
    
    Net operating revenue at Womacks Casino in Cripple Creek, Colorado
increased to $4,440,000, or 11.9%, for the second quarter of 2007 compared to
$3,968,000 reported for the same period in 2006.  Total operating expenses
increased $272,000, or 9.4%, to $3,156,000 in the second quarter of 2007 from
$2,884,000 in the second quarter of 2006. Casino operating margins(*)(*) decreased
to 69.2% for the second quarter of 2007 from 73.4% for the same 2006 quarter
due primarily to increased marketing efforts and related expenses.  Net
earnings reported for Womacks in the second quarter of 2007 were $793,000
compared to $616,000 in the second quarter of 2006.   Womacks' adjusted
EBITDA(*) for the second quarter of 2007 was $1,678,000 compared to $1,494,000
in the second quarter of 2006.
    
    Six months ended June 30, 2007 vs. 2006
    
    Womacks' casino revenue was $9,350,000 for the first six months of 2007
compared to $8,642,000 for the first six months of 2006. Casino expenses
increased from $2,363,000 in the 2006 period compared to $2,928,000 for the
2007 period, primarily due to the increase in gaming revenues and increased
casino marketing efforts. Net earnings reported for Womacks for the first six
months of 2007 were $1,347,000 compared to $1,169,000 for the first six months
of 2006.
    As part of the effort to provide our guests with the latest exciting
games in a new, relaxed and convenient atmosphere, the casino is currently
undergoing a $1.4 million renovation project expected to be completed for the
Christmas season.
    
    Central City, Colorado
    Three months ended June 30, 2007 vs. 2006
    
    We opened a casino and hotel in Central City, Colorado on July 11, 2006.
Prior to July 11, 2006, operating expenses consisted primarily of pre-opening
and non-capitalizable construction expenses. For the three months ended June
30, 2007, net operating revenue at this facility was $5,060,000. Casino
operating margins(*)(*) were 62.9% for the three months ended June 30, 2007, which
continues to be below our expectations. Although revenues have not yet met our
expectations, gaming revenue has grown consistently since opening, with our
highest monthly revenue occurring in June 2007. Management is continuing to
evaluate methods to increase revenues at the property. Management has focused
on the development of the casino's player club memberships, with results being
better than expected. We now have approximately 63,000 players in our player
club database. Having built this database through customer visits,
management's marketing strategy will focus on direct marketing to these
players. The Central City operation reported net earnings of $50,000 for the
quarter ended June 30, 2007.  Central City's adjusted EBITDA(*) for the second
quarter of 2007 was $1,078,000.
    
    Six months ended June 30, 2007 vs. 2006
    
    For the six months ended June 30, 2007, net operating revenue at this
facility was $9,575,000, the highest at any of our properties. Casino
operating margins(*)(*) were 61.4% for the six months ended June 30, 2007. The
Central City operation reported a net loss of $5,000 for the six months ended
June 30, 2007. Central City's adjusted EBITDA(*) for the first six months of
2007 was $2,133,000.
    
    Edmonton, Alberta, Canada
    Three months ended June 30, 2007 vs. 2006
    
    We opened a casino and hotel in Edmonton, Alberta, Canada on November 17,
2006. Prior to this date, operating expenses for this segment consisted
primarily of pre-opening and non-capitalizable construction expenses. Edmonton
reported $4,480,000 in net operating revenue for the quarter ended June 30,
2007.  Casino operating margins(*)(*) were 64.2% in the second quarter of 2007.
Due to poor attendance, the dinner theater has been closed. Management's
current plan is to reopen the facility as a conference center/showroom.
Edmonton reported net earnings of $298,000 and adjusted EBITDA(*) of $1,162,000
in the second quarter 2007.
    
    Six months ended June 30, 2007
    
    Edmonton reported $8,632,000 in net operating revenue for the six months
ended June 30, 2007.  Casino operating margins(*)(*) were 62.3% for the six months
ended June 30, 2007. Delays in opening the property's hotel hampered hotel,
food and beverage revenues for the period. The hotel opened in March 2007.
Operating results of the hotel subsequent to opening have been below our
expectations, primarily a result of low weekday occupancy rates. Management is
currently reviewing the cost and staffing structure of the operation to bring
them in line with current revenue levels.
    In addition, the casino has received permission from the Alberta Gaming
and Liquor Commission to gradually increase the number of slot machines by
nine percent, from 600 to a total of 654, until the beginning of September
2007. We expect to have 654 machines in operation by September 2007.
    
    Caledon, South Africa
    Three months ended June 30, 2007 vs. 2006
    
    A deterioration of the Rand, quarter over quarter, has had a significant
impact on the results reported in dollars. As a result, Caledon's casino
revenue decreased 3.2% to $3,810,000 for the second quarter of 2007 compared
to $3,934,000 reported in the second quarter of 2006. Casino revenue, in Rand,
increased by 7.7% to ZAR 27,096,000 for the second quarter of 2007 compared to
ZAR 25,167,000 in the second quarter of 2006 primarily from slot machine win
and a 4% increase in the average number of slot machines for the quarter. The
Caledon recently increased the number of slot machines on the floor to 370.
Casino expenses decreased 4.2% from the second quarter of 2006 to the second
quarter of 2007 primarily the result of the deterioration of the Rand. Casino
expenses, in Rand, increased 5.8% to ZAR 10,564,000 for the second quarter of
2007 compared to ZAR 9,985,000, primarily due to incremental fees on gaming
revenues and increased advertising expenses.  Casino operating margins(*)(*)
(based on the Rand) were 61.0% for the three months ended June 30, 2007
compared to 60.3% for the same period in 2006. Net earnings in the second
quarter of 2007 were $844,000 compared to $736,000 in the second quarter of
2006, primarily the result of the property's ability to leverage its overhead.
In addition, dividends of $57,000 were paid to preference shareholders during
the second quarter of 2007. Caledon's adjusted EBITDA(*) for the second quarter
of 2007 was $1,797,000 compared to $1,665,000 in the second quarter of 2006.
    
    Six months ended June 30, 2007 vs. 2006
    
    Caledon's casino revenue in USD decreased by $547,000 to $7,457,000 for
the six months ended June 30, 2007, the result of the deterioration of the
Rand. Casino revenue, in Rand, increased by 6.3% during the first six months
of 2007 to ZAR 53,433,000 compared to ZAR 50,268,000 in 2006. Casino expenses,
in Rand, increased by ZAR 1,723,000, or 9.1% during the first six months of
2007 compared to 2006. Casino operating margins(*)(*), excluding the effect of the
Rand/Dollar conversion rate, declined to 61.2% for the six months ended June
30, 2007 from 62.2% for the six months ended June 30, 2006. Net earnings for
the first six months of 2007 were $1,509,000 compared to $1,882,000 for the
first six months of 2006. The decrease in net earnings is primarily due to the
payment of dividends to preference shareholders of approximately $276,000
during the six months ended June 30, 2007 and the impact of the deterioration
of the Rand.
    
    Newcastle, South Africa
    Three months ended June 30, 2007 vs. June 30, 2006
    
    We acquired our interest in Newcastle, South Africa on April 1, 2006.
Between April 1, 2006 and December 2, 2006, the operations of the casino were
limited and our efforts were focused on the construction of a new facility.
For the three months ended June 30, 2007, net operating revenue at the new
facility was $3,057,000 compared to net operating revenues of $2,050,000 at
the original property. Casino operating margins(*)(*) for the three months ended
June 30, 2007 were 60.8%, generally consistent with our other South Africa
property. The Newcastle operation provided the Company with net earnings of
$276,000 for the quarter ended June 30, 2007 compared to $270,000 for the
quarter ended June 30, 2007. The increase in net earnings is primarily due to
increased earnings from operations at the new property offset by increased
interest charges incurred on the debt used to construct the new casino and the
deterioration of the Rand versus the Dollar.  Newcastle's adjusted EBITDA(*) for
the three months ended June 30, 2007 was $1,087,000 compared to $686,000 for
the three months ended June 30, 2006.
    
    Six months ended June 30, 2007
    
    For the six months ended June 30, 2007, Newcastle's casino operating
revenues were $5,050,000. Casino operating margins(*)(*) for the six months ended
June 30, 2007 were 58.4%. The casino provided the Company with net earnings of
$537,000 and adjusted EBITDA(*) of $1,978,000 for the period ended June 30,
2007.
    The Company will post a slide show presentation of the results of
operations for the second quarter of 2007 on its web site at
www.centurycasinos.com on Thursday, August 9, 2007.
    On Friday, August 10, 2007, Century Casinos will host a "Q2 2007
Earnings" conference call, at 9:00am EDT; 3:00pm CET respectively. US domestic
participants please dial +1-800-909-5202, all other international participants
please use +1- 785-830-7975 to dial-in. For a recording of the call, please
visit our website at www.cnty.com/corporate/investor/financial-results/.

    (*)  See discussion of adjusted EBITDA below.

    (*)(*) See discussion of casino operating margins below.


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

    
                            For The Three Months      For The Six Months
                               Ended June 30,            Ended June 30,
                              2007        2006         2007         2006
    Operating Revenue:
     Casino                 $21,489     $11,260      $41,378      $20,406
     Hotel, food and
      beverage                2,979       1,272        5,846        2,354
     Other                      446         321          939          470
                             24,914      12,853       48,163       23,230
     Less promotional
      allowances              2,241         984        4,429        1,885
      Net operating revenue  22,673      11,869       43,734       21,345
    

    
    Operating Costs and Expenses:
     Casino                   8,473       4,357       16,568        7,654
     Hotel, food and
      beverage                2,542       1,000        5,125        1,830
     General and
      administrative          6,984       4,516       12,785        7,559
     Impairments and other
      write-offs, net of
      (recoveries)               40           7           25           15
     Depreciation             2,304         933        4,323        1,705
      Total operating costs
       and expenses          20,343      10,813       38,826       18,763
    Earnings from
     Unconsolidated
     Subsidiary                  54           -           54            -
    Earnings from Operations  2,384       1,056        4,962        2,582
    

    
    Non-Operating Income
    (Expense):
     Interest income            443         319          717          597
     Interest expense        (1,699)       (411)      (3,631)        (615)
     Other (expense)
      income, net               (41)        225          787          319
      Non-operating (expense)
       income, net            1,297         133       (2,127)         301
    Earnings before Income
     Taxes, Minority Interest
     and Preferred Dividends  1,087       1,189        2,835        2,883
     Provision for income
      taxes                     304         105          628          461
    Earnings before Minority
     Interest and Preferred
     Dividends                  783       1,084        2,207        2,422
     Minority interest in
      subsidiary losses, net    315         247          652          599
     Preferred dividends issued
      by subsidiary             (57)          -         (276)           -
    Net Earnings             $1,041      $1,331       $2,583       $3,021
    

    
    Earnings Per Share:
     Basic                    $0.05       $0.06        $0.11        $0.13
     Diluted                  $0.04       $0.06        $0.11        $0.13
    


    
    Reconciliation to adjusted EBITDA(*)
     Net Earnings            $1,041      $1,331       $2,583       $3,021
     Minority interest         (315)       (247)        (652)        (599)
     Interest income           (443)       (319)        (717)        (597)
     Interest expense         1,699         411        3,631          615
     Income tax expense         304         105          628          461
     Depreciation             2,304         933        4,323        1,705
    Adjusted EBITDA          $4,590      $2,214       $9,796       $4,606
    


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

    
                                                     June 30,    December 31,
                                                       2007          2006
    Assets
     Current Assets                                  $19,752        $41,167
     Other Assets                                    168,248        156,693
     Total Assets                                   $188,000       $197,860
    

    
    Liabilities and Shareholders' Equity
     Current Liabilities                              22,293         35,991
     Non-Current Liabilities                          61,469         61,442
     Shareholders' Equity                            104,238        100,427
     Total Liabilities and Shareholders' Equity     $188,000       $197,860
    
    (*)Adjusted EBITDA, which we define as 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.
    (*)(*)We define casino operating margins as casino revenues less casino
expenses divided by casino revenues.  Management uses this measure to evaluate
the efficiency of our casino 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; operates
the casinos aboard the 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, owns and operates the Century Casino Millennium in the Marriott Hotel in
Prague, Czech Republic; and 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" 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 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 filed on March 16,
2007. 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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