CORRECTION: Century Casinos Reports Financial Results for Second Quarter 2010
</pre>
<p><span class="xn-location">COLORADO SPRINGS</span>, Colo., <span class="xn-chron">Aug. 13</span> /CNW/ -- Century Casinos, Inc. (NASDAQ Capital Market® and <span class="xn-location">Vienna</span> Stock Exchange: CNTY) announced today certain corrections to a press release it issued on <span class="xn-chron">August 9, 2010</span>. Among the corrections are the following:</p>
<pre>
1. On page one, Earnings from discontinued operations for the three months
ended June 30, 2009 has been changed from $1.424 million to $20.777
million.
2. On page one, Earnings from discontinued operations for the six months
ended June 30, 2009 has been changed from $2.712 million to $22.679
million.
</pre>
<p>The <span class="xn-chron">August 9, 2010</span> press release that follows has been corrected and restated in its entirety to reflect these and certain other corrections.</p>
<p/>
<p><span class="xn-location">Colorado Springs</span>, Colo., <span class="xn-chron">August 9, 2010</span> - Century Casinos, Inc. (NASDAQ Capital Market® and <span class="xn-location">Vienna</span> Stock Exchange: CNTY) announced today its financial results for the three and six months ended <span class="xn-chron">June 30, 2010</span>.</p>
<p/>
<p> </p>
<p> </p>
<p> </p>
<pre>
For the Three Months
Amounts in thousands,
except share data Ended June 30,
%
Consolidated Results: 2010 2009 Change
---- ---- ------
Net operating revenue $14,940 $11,884 25.7%
Operating earnings
(loss) from continuing
operations 344 (307) 212.1%
Loss from continuing
operations (259) (1,045) 75.2%
Earnings from
discontinued
operations - 20,777 NM
Net (loss) earnings (259) 19,732 -101.3%
Net (loss) earnings
attributable to
Century Casinos, Inc. (259) 18,903 -101.4%
</pre>
<p> </p>
<p> Adjusted EBITDA* <span class="xn-money">$2,005</span> <span class="xn-money">$1,563</span> 28.2%</p>
<p> </p>
<pre>
Basic and Diluted
earnings per share:
Loss from continuing
operations ($0.01) ($0.05)
Net (loss) earnings ($0.01) $0.80
</pre>
<p> </p>
<pre>
Weighted-average
common shares, basic
and diluted 23,815,936 23,524,067
</pre>
<p> </p>
<p> </p>
<p> </p>
<pre>
For the Six Months
Amounts in thousands,
except share data Ended June 30,
%
Consolidated Results: 2010 2009 Change
---- ---- ------
Net operating revenue $29,077 $23,883 21.7%
Operating earnings
(loss) from continuing
operations 694 (131) 630.0%
Loss from continuing
operations (129) (2,504) 94.8%
Earnings from
discontinued
operations - 22,679 NM
Net (loss) earnings (129) 20,175 -100.6%
Net (loss) earnings
attributable to
Century Casinos, Inc. (129) 19,248 -100.7%
</pre>
<p> </p>
<p> Adjusted EBITDA* <span class="xn-money">$3,989</span> <span class="xn-money">$3,662</span> 8.9%</p>
<p> </p>
<pre>
Basic and Diluted
earnings per share:
Loss from continuing
operations ($0.01) ($0.10)
Net (loss) earnings ($0.01) $0.82
</pre>
<p> </p>
<pre>
Weighted-average
common shares, basic
and diluted 23,815,936 23,524,067
Three Months Ended June 30, 2010
</pre>
<p>Net operating revenue for the three months ended <span class="xn-chron">June 30, 2010</span> was <span class="xn-money">$14.9 million</span> compared to <span class="xn-money">$11.9 million</span> for the three months ended <span class="xn-chron">June 30, 2009</span>. The increase in net operating revenue of <span class="xn-money">$3.0 million</span> is attributable to the following: <span class="xn-money">$2.1 million</span> of net operating revenue due to the acquisition of the Silver Dollar in the first quarter of 2010; <span class="xn-money">$0.7 million</span> due to improved business conditions at our <span class="xn-location">Edmonton</span>, Alberta property resulting from the completion of road construction; an improvement in the average exchange rate between the U.S. dollar and the Canadian dollar; and <span class="xn-money">$0.2 million</span> due to improved business conditions at our Womacks Casino in Cripple Creek, Colorado from better weather conditions and the impact of Amendment 50, which allowed 24 hour operations and increased table limits in Colorado as of <span class="xn-chron">July 2009</span>.</p>
<p/>
<p>For the second quarter of 2010, consolidated Adjusted EBITDA* was <span class="xn-money">$2.0 million</span>. This represents a 28.2% increase in consolidated Adjusted EBITDA* over the same quarter of last year. All operating segments provided positive Adjusted EBITDA*, with the exception of Silver Dollar, totaling <span class="xn-money">$3.2 million</span> which was offset by Corporate operations of <span class="xn-money">$1.2 million</span>. Management attributes the improvement in Adjusted EBITDA* to improved earnings from operations between the second quarter of 2009 and the second quarter of 2010.</p>
<p/>
<p>Operating earnings from continuing operations increased <span class="xn-money">$0.6 million</span> from a loss of <span class="xn-money">$0.3 million</span> for the three months ended <span class="xn-chron">June 30, 2009</span> to an income of <span class="xn-money">$0.3 million</span> for the three months ended <span class="xn-chron">June 30, 2010</span>. Operating earnings from continuing operations for the three months ended <span class="xn-chron">June 30, 2010</span> at Century Casino & Hotel at <span class="xn-location">Edmonton</span> improved by <span class="xn-money">$0.2 million</span> resulting from an increase in revenue in the nickel slot denomination, an increase in the number of slot units and improved business volume associated with the completion of road construction. Operating earnings from continuing operations for the three months ended <span class="xn-chron">June 30, 2010</span> at the Womacks Casino in Cripple Creek and the Century Casino and Hotel in Central City, Colorado improved by <span class="xn-money">$0.2 million</span> due to better weather conditions in the second quarter of 2010 compared to the second quarter 2009 and the impact of Amendment 50. Corporate earnings from operations improved by <span class="xn-money">$0.2 million</span> primarily due to a reduction in the amount of stock compensation recognized in the second quarter of 2010 compared to the second quarter of 2009.</p>
<p/>
<p>Adjusted for foreign currency transaction gains and losses, the Company recognized a loss from continuing operations of $0.01 million*, for the second quarter of 2010 compared to a loss from continuing operations of <span class="xn-money">$1.3 million</span> for the second quarter of 2009.</p>
<p/>
<p>Including discontinued operations, in the second quarter of 2009, the Company reported net earnings attributable to Century Casinos, Inc. and subsidiaries of <span class="xn-money">$18.9 million</span>, or <span class="xn-money">$0.80</span> per share. During the second quarter of 2009, the Company recorded a gain of <span class="xn-money">$0.04 million</span> on the sale of its Casino in <span class="xn-location">Prague</span>, Czech Republics and <span class="xn-money">$19.8 million</span> on the sale of its casinos in <span class="xn-location">South Africa</span>.</p>
<pre>
Six Months Ended June 30, 2010
</pre>
<p>Net operating revenue for the six months ended <span class="xn-chron">June 30, 2010</span> was <span class="xn-money">$29.1 million</span> compared to <span class="xn-money">$23.9 million</span> for the six months ended <span class="xn-chron">June 30, 2009</span>. The increase in net operating revenue of <span class="xn-money">$5.2 million</span> is attributable to the following: <span class="xn-money">$3.9 million</span> of net operating revenue due to the acquisition of the Silver Dollar in the first quarter of 2010, <span class="xn-money">$1.2 million</span> due to improved business conditions resulting from the completion of road construction and an improvement in the average exchange rate between the U.S. dollar and the Canadian dollar at our casino in <span class="xn-location">Edmonton</span> and <span class="xn-money">$0.2 million</span> from the impact of three new casinos on the cruise ships Wind Surf, Wind Star and Wind Spirit, all beginning service in <span class="xn-chron">April 2010</span>. These increases in net operating revenue were offset by a <span class="xn-money">$0.1 million</span> decrease in net operating revenue associated with Womacks Casino at Cripple Creek.</p>
<p/>
<p>For the six months ended <span class="xn-chron">June 30, 2010</span>, consolidated Adjusted EBITDA* was <span class="xn-money">$4.0 million</span>. This represents an 8.9% increase in consolidated Adjusted EBITDA* over the same period of last year. All operating segments provided positive Adjusted EBITDA* totaling <span class="xn-money">$6.4 million</span> which was offset by Corporate operations of <span class="xn-money">$2.4 million</span>. Management attributes the improvement in Adjusted EBITDA* to improved earnings from operations between the six months ended <span class="xn-chron">June 30, 2009</span> and the six months ended <span class="xn-chron">June 30, 2010</span>.</p>
<p/>
<p>Earnings from continuing operations increased <span class="xn-money">$0.8 million</span> from a loss of <span class="xn-money">$0.1 million</span> for the six months ended <span class="xn-chron">June 30, 2009</span> to a gain of <span class="xn-money">$0.7 million</span> for the six months ended <span class="xn-chron">June 30, 2010</span> due to a decrease in corporate expenses associated with the amount of stock compensation recognized of <span class="xn-money">$0.4 million</span> and a reduction in professional fees of <span class="xn-money">$0.2 million</span>. The increase in ship casino revenue of <span class="xn-money">$0.1 million</span> is due to the addition of three new ship casinos which began service in <span class="xn-chron">April 2010</span>. The addition of the Silver Dollar in the first quarter of 2010 contributed <span class="xn-money">$0.1 million</span>.</p>
<p/>
<p>Adjusted for foreign currency transaction gains and losses and an insurance recovery, the Company recognized a loss from continuing operations of $0.2 million*, for the six months ended <span class="xn-chron">June 30, 2010</span> compared to a loss from continuing operations of <span class="xn-money">$2.3 million</span> for the six months ended <span class="xn-chron">June 30, 2009</span>.</p>
<p/>
<p>Including discontinued operations, for the six months ended <span class="xn-chron">June 30, 2009</span>, the Company reported net earnings attributable to Century Casinos, Inc. and subsidiaries of <span class="xn-money">$19.2 million</span>. For the six months ended <span class="xn-chron">June 30, 2009</span>, the Company recorded a gain of <span class="xn-money">$0.9 million</span> and <span class="xn-money">$19.8 million</span> on the sale of its sale of its Casino in <span class="xn-location">Prague</span>, Czech Republics and <span class="xn-location">South Africa</span>, respectively.</p>
<pre>
Purchase of Silver Dollar Casino
</pre>
<p>On <span class="xn-chron">January 13, 2010</span>, the Company acquired the Silver Dollar and related land for total consideration of <span class="xn-money">$11.5 million</span>. The Company paid a <span class="xn-money">$1.0 million</span> deposit towards the acquisition on <span class="xn-chron">November 6, 2009</span>, with the remainder paid on <span class="xn-chron">January 13, 2010</span>, using cash on hand.</p>
<p/>
<p>The Silver Dollar is a 93,000 square-foot casino facility located on approximately seven acres of land in <span class="xn-location">Calgary</span>, Alberta, <span class="xn-location">Canada</span>. The casino facility includes 504 slot machines, 25 video lottery terminals, 16 table games, two restaurants, a lounge, a 5,000 square-foot showroom, an 18,000 square-foot convention center and a 30-lane bowling alley. The Company plans to change the name of the Silver Dollar Casino to "Century Casino" by the end of <span class="xn-chron">October 2010</span>.</p>
<p/>
<p> </p>
<pre>
Property Results (Continuing Operations)
----------------------------------------
(in thousands)
--------------
</pre>
<p> </p>
<pre>
Net Operating
Revenue
-------------
For the Three Months
--------------------
Ended June 30,
2010 2009
---- ----
Century Casino &
Hotel, Edmonton $5,497 $4,843
Silver Dollar
Casino, Calgary 2,098 -
Womacks Casino &
Hotel, Cripple
Creek 2,617 2,441
Century Casino &
Hotel, Central City 4,210 4,178
Cruise Ships 518 422
Corporate - -
Consolidated net
operating revenue $14,940 $11,884
======= =======
</pre>
<p> </p>
<p> </p>
<pre>
Adjusted
EBITDA*
--------
For the Three Months
--------------------
Ended June
30,
2010 2009
---- ----
Century Casino &
Hotel, Edmonton $1,759 $1,554
Silver Dollar
Casino, Calgary (26) -
Womacks Casino &
Hotel, Cripple
Creek 490 351
Century Casino &
Hotel, Central City 947 980
Cruise Ships 79 52
Corporate (1,246) (1,374)
Consolidated net
operating revenue $2,003 $1,563
====== ======
</pre>
<p> </p>
<p> </p>
<pre>
Net Operating
Revenue
-------------
For the Six Months
------------------
Ended June 30,
2010 2009
---- ----
Century Casino &
Hotel, Edmonton $10,857 $9,639
Silver Dollar
Casino, Calgary 3,840 -
Womacks Casino &
Hotel, Cripple
Creek 4,882 5,013
Century Casino &
Hotel, Central City 8,382 8,341
Cruise Ships 1,116 890
Corporate - -
Consolidated net
operating revenue $29,077 $23,883
======= =======
</pre>
<p> </p>
<p> </p>
<pre>
Adjusted
EBITDA*
--------
For the Six Months
------------------
Ended June
30,
2010 2009
---- ----
Century Casino &
Hotel, Edmonton $3,400 $3,329
Silver Dollar
Casino, Calgary $153 -
Womacks Casino &
Hotel, Cripple
Creek $682 $845
Century Casino &
Hotel, Central City $1,868 $2,043
Cruise Ships $236 $110
Corporate ($2,251) ($2,665)
Consolidated net
operating revenue $4,088 $3,662
====== ======
Three Months Ended June 30, 2010
</pre>
<p>Century Casino & Hotel (<span class="xn-location">Edmonton</span>, Alberta, <span class="xn-location">Canada</span>) - Net operating revenue at the Century Casino & Hotel in <span class="xn-location">Edmonton</span> increased by 13.5% to <span class="xn-money">$5.5 million</span> for the second quarter of 2010 compared to <span class="xn-money">$4.8 million</span> for the second quarter of 2009. This increase is primarily due to an increase in table games and slot revenue and the improved exchange rate between the U.S. dollar and Canadian dollar. Management believes that improved business conditions following completion of road construction near the casino and an increase in the size of player wagers was the primary reason for the increase in table games revenue, and improvements to the floor by the Alberta Gaming and Liquor Commission (AGLC) with slot machine movements and conversions contributed to an increase in slot revenue. In Canadian dollars, Adjusted EBITDA* remained constant at CAD 1.8 million for the three months ended <span class="xn-chron">June 30</span> 2010 and 2009.</p>
<p/>
<p>Womacks Casino (Cripple Creek, Colorado, USA) - Net operating revenue at Womacks Casino increased <span class="xn-money">$0.2 million</span>, or 7.2%, from <span class="xn-money">$2.4 million</span> for the second quarter of 2009 to <span class="xn-money">$2.6 million</span> for the second quarter of 2010. Management believes that Womacks has increased revenue due to positive customer service, food product improvements, improved weather conditions and the impact of Amendment 50. Adjusted EBITDA* increased 39.6% from <span class="xn-money">$0.4 million</span> for the second quarter of 2009 to <span class="xn-money">$0.5 million</span> for the second quarter of 2010 primarily due to improved earnings from operations between the second quarter of 2009 and the second quarter of 2010.</p>
<p/>
<p>Century Casino and Hotel (Central City, Colorado, USA) - Net operating revenue at the Century Casino and Hotel in Central City remained flat at <span class="xn-money">$4.2 million</span> when comparing the second quarter of 2010 to the second quarter of 2009, primarily due to poor overall economic conditions impacting revenues. Coin-in remained flat and the slot hold percentage is down due to a change in slot play from video to video poker, which has a lower hold percentage. Table revenue increased by 77% due to increased table game limits from Amendment 50. Century Casino's market share for the three months ended <span class="xn-chron">June 30, 2010</span> increased compared to the three months ended <span class="xn-chron">June 30, 2009</span> to 29.1% from 28.9%. Management believes that weekend promotions have helped to maintain business. Adjusted EBITDA* for the Century Casino and Hotel in Central City for the second quarter of 2010 decreased by 3.4% to <span class="xn-money">$0.9 million</span> compared to <span class="xn-money">$1.0 million</span> in the second quarter of 2010. The decrease is primarily due to poor overall economic conditions.</p>
<p/>
<p>Cruise Ships - The Company's ship-based casinos contributed net operating revenue of <span class="xn-money">$0.5 million</span> for the second quarter of 2010 compared to <span class="xn-money">$0.4 million</span> in the second quarter of 2009. Adjusted EBITDA* increased from <span class="xn-money">$0.05 million</span> for the second quarter of 2009 to <span class="xn-money">$0.08 million</span> for the second quarter of 2010. The increase in net operating revenue and adjusted EBITDA is primarily due to increases in gaming revenue from three new cruise ships, Wind Star, Wind Surf and Wind Spirit, which all began service in <span class="xn-chron">April 2010</span>, and a <span class="xn-money">$36,000</span> increase in revenue from Mein Schiff.</p>
<p/>
<p>Corporate - Corporate operations reported negative Adjusted EBITDA* of <span class="xn-money">$1.2 million</span> for the second quarter of 2010 compared to negative Adjusted EBITDA* of <span class="xn-money">$1.4 million</span> for the second quarter of 2009. The lower negative Adjusted EBITDA* is primarily due to a reduction in the amount of stock compensation recognized in the second quarter of 2010 compared to the second quarter of 2009.</p>
<pre>
Six Months Ended June 30, 2010
</pre>
<p>Century Casino & Hotel (<span class="xn-location">Edmonton</span>, Alberta, <span class="xn-location">Canada</span>) - Net operating revenue at the Century Casino & Hotel in <span class="xn-location">Edmonton</span> increased by 12.6% to <span class="xn-money">$10.9 million</span> for the six months ended <span class="xn-chron">June 30, 2010</span> compared to <span class="xn-money">$9.6 million</span> for the six months ended <span class="xn-chron">June 30, 2009</span>. This increase is primarily due to an increase in table games and slot revenue and the improved exchange rate between the U.S. dollar and Canadian dollar. Management believes that improved business conditions following completion of road construction near the casino and an increase in the size of player wagers was the primary reason for the increase in table games revenue, and improvements to the floor by the AGLC with slot machine movements and conversions contributed to an increase in slot revenue. In Canadian dollars, Adjusted EBITDA* decreased from CAD 4.0 million to CAD 3.5 for the six months ended <span class="xn-chron">June 30</span> 2010 and 2009 primarily due to a decrease in table games hold in the first quarter.</p>
<p/>
<p>Womacks Casino (Cripple Creek, Colorado, USA) - Net operating revenue at Womacks Casino in Cripple Creek, Colorado decreased <span class="xn-money">$0.1 million</span>, or 2.6%, from <span class="xn-money">$4.9 million</span> for the six months ending <span class="xn-chron">June 30, 2010</span> compared to <span class="xn-money">$5.0 million</span> for the same period in 2009, primarily due to a decline in the gaming market. Adjusted EBITDA* decreased 19.3% from <span class="xn-money">$0.8 million to $0.7 million</span> primarily due a decrease in net operating revenue between the six months ended <span class="xn-chron">June 30, 2010</span> and the six months ended <span class="xn-chron">June 30,2009</span>.</p>
<p/>
<p>Century Casino and Hotel (Central City, Colorado, USA) - Net operating revenue at the Century Casino and Hotel in Central City remained flat at <span class="xn-money">$8.3 million</span> when comparing the six months ending <span class="xn-chron">June 30, 2010</span> to the same period of 2009. Management attributes the flat operating revenue to poor overall economic conditions. Coin-in revenue remained flat and the slot hold percentage was down due to a change in slot play from video to video poker, which has a lower hold percentage. Table revenue increased due to Amendment 50. Management believes that weekend promotions have helped to maintain business. Adjusted EBITDA* for the Century Casino and Hotel in Central City for the six months ending <span class="xn-chron">June 30, 2010</span> decreased 8.6% to <span class="xn-money">$1.9 million</span> from <span class="xn-money">$2.0 million</span> for the six months ending <span class="xn-chron">June 30, 2009</span>. This decrease is primarily due to an increase in operating expenses between the six months ended <span class="xn-chron">June 30, 2010</span> and the six months ended <span class="xn-chron">June 30, 2009</span>.</p>
<p/>
<p>Cruise Ships - The Company's ship-based casinos contributed net operating revenue of <span class="xn-money">$1.1 million</span> for the six months ended <span class="xn-chron">June 30, 2010</span> compared to <span class="xn-money">$0.9 million</span> for the six months ended <span class="xn-chron">June 30, 2009</span> as the result of the impact of three new cruise ships, Wind Star, Wind Surf and Wind Spirit, which all began service in <span class="xn-chron">April 2010</span>. Adjusted EBITDA* increased <span class="xn-money">$0.1 to $0.2 million</span> for the six months ended <span class="xn-chron">June 30</span> 2010 compared to <span class="xn-money">$0.1 million</span> for the six months ended <span class="xn-chron">June 30, 2009</span>. The increase in adjusted EBITDA is also attributable to the impact of the three new ship casinos.</p>
<p/>
<p>Corporate - Corporate operations reported negative Adjusted EBITDA* of <span class="xn-money">$2.3 million</span> for six months ended <span class="xn-chron">June 30, 2010</span> compared to negative Adjusted EBITDA* of <span class="xn-money">$2.7 million</span> for the six months ended <span class="xn-chron">June 30, 2009</span>. The lower negative Adjusted EBITDA* is primarily due to a decrease in the amount of stock compensation recognized and a reduction in professional fees for six months ended <span class="xn-chron">June 30, 2010</span> as compared to the same period of 2009.</p>
<pre>
Liquidity
</pre>
<p>Cash and cash equivalents totaled <span class="xn-money">$24.5 million</span> at <span class="xn-chron">June 30, 2010</span> and the Company had working capital (current assets minus current liabilities) of <span class="xn-money">$15.8 million</span>. During 2010, the Company paid <span class="xn-money">$9.3 million</span> for its acquisition of the Silver Dollar. In <span class="xn-chron">April 2010</span>, the Company paid <span class="xn-money">$2.2 million</span> for land in Cripple Creek, Colorado. The Company expects to pay approximately <span class="xn-money">$3.0 million</span> in capital expenditures at all its casinos over the next twelve months.</p>
<p/>
<p>The Company has posted the Form 10-Q filed with the SEC for the second quarter of 2010 on its website at <a href="http://www.cnty.com/corporate/investor/sec-filings/">www.cnty.com/corporate/investor/sec-filings/</a> .</p>
<p/>
<p>Century Casinos will host its Q2 2010 Earnings Conference Call on <span class="xn-chron">August 9, 2010</span> at <span class="xn-chron">8:00 am MDT</span>; <span class="xn-chron">4:00 pm CEST</span>, respectively. U.S. domestic participants please dial +1-800-862-9098; all other international participants please use +1-785-424-1051 to dial in. Participants may also listen to the call live or obtain a recording of the call on our website at <a href="http://www.cnty.com/corporate/investor/financial-results/">www.cnty.com/corporate/investor/financial-results/</a>.</p>
<p/>
<p>*See discussion and reconciliation of Non-GAAP financial measures in Supplemental Information below.</p>
<p/>
<p> </p>
<pre>
CENTURY CASINOS, INC. AND SUBSIDIARIES
FINANCIAL INFORMATION - US GAAP BASIS
</pre>
<p> </p>
<pre>
For the three
months
ended June 30,
Amounts in thousands, except for
share and per share information 2010 2009
---- ----
Operating revenue:
Gaming $13,239 $11,138
Hotel, food and beverage 2,756 2,037
Other 770 463
--- ---
Gross revenue 16,765 13,638
Less: Promotional allowances 1,825 1,754
Net operating revenue 14,940 11,884
------ ------
Operating costs and expenses:
Gaming 5,854 4,589
Hotel, food and beverage 2,228 1,659
General and administrative 5,150 4,547
Depreciation 1,524 1,550
----- -----
Total operating costs and expenses 14,756 12,345
Earnings from equity investment 160 154
</pre>
<p> </p>
<pre>
Operating earnings (loss) from
continuing operations 344 (307)
Non-operating income (expense):
Interest income 14 1
Interest expense (281) (915)
(Losses) gains on foreign currency
transactions and other (244) 276
Non-operating (expense), net (511) (638)
---- ----
(Loss) income from continuing
operations before income taxes (167) (945)
</pre>
<p> </p>
<pre>
Income tax provision 92 100
Loss from continuing operations (259) (1,045)
---- ------
</pre>
<p> </p>
<pre>
Discontinued operations:
Earnings from discontinued
operations - 1,424
Gain on disposition of Century
Casino Millennium - 38
Gain on disposition of Century
Casinos Africa - 19,848
Income tax provision - 533
Earnings from discontinued
operations - 20,777
--- ------
Net (loss) earnings (259) 19,732
</pre>
<p> </p>
<pre>
Less:
Net earnings attributable to the
noncontrolling
interests (continuing operations) - (19)
Net earnings attributable to the
noncontrolling
interests (discontinued
operations) - 848
Net (loss) earnings attributable
to Century Casinos, Inc. and
subsidiaries ($259) $$18,903
===== ========
</pre>
<p> </p>
<p> </p>
<pre>
For the six months
ended June 30,
Amounts in thousands, except for
share and per share information 2010 2009
---- ----
Operating revenue:
Gaming $25,821 $22,610
Hotel, food and beverage 5,521 3,936
Other 1,349 872
----- ---
Gross revenue 32,691 27,418
Less: Promotional allowances 3,614 3,535
Net operating revenue 29,077 23,883
------ ------
Operating costs and expenses:
Gaming 11,287 9,058
Hotel, food and beverage 4,338 3,199
General and administrative 10,093 8,878
Depreciation 3,013 3,122
----- -----
Total operating costs and expenses 28,731 24,257
Earnings from equity investment 348 243
</pre>
<p> </p>
<pre>
Operating earnings (loss) from
continuing operations 694 (131)
Non-operating income (expense):
Interest income 22 10
Interest expense (572) (1,815)
(Losses) gains on foreign currency
transactions and other (1) (249)
Non-operating (expense), net (551) (2,054)
---- ------
(Loss) income from continuing
operations before income taxes 143 (2,185)
</pre>
<p> </p>
<pre>
Income tax provision 272 319
Loss from continuing operations (129) (2,504)
---- ------
</pre>
<p> </p>
<pre>
Discontinued operations:
Earnings from discontinued
operations - 2,712
Gain on disposition of Century
Casino Millennium - 915
Gain on disposition of Century
Casinos Africa - 19,848
Income tax provision - 796
Earnings from discontinued
operations - 22,679
--- ------
Net (loss) earnings (129) 20,175
</pre>
<p> </p>
<pre>
Less:
Net earnings attributable to the
noncontrolling
interests (continuing operations) - (37)
Net earnings attributable to the
noncontrolling
interests (discontinued
operations) - 964
Net (loss) earnings attributable
to Century Casinos, Inc. and
subsidiaries ($129) $19,248
===== =======
</pre>
<p> </p>
<pre>
CENTURY CASINOS, INC. AND SUBSIDIARIES
--------------------------------------
FINANCIAL INFORMATION - US GAAP BASIS
-------------------------------------
Century Casinos, Inc.
Earnings per Share
</pre>
<p> </p>
<pre>
For the three
months
ended June 30,
2010 2009
---- ----
Basic earnings per share:
Loss from continuing operations ($0.01) ($0.05)
Earnings from discontinued
operations - 0.85
Net (loss) earnings ($0.01) $0.80
====== =====
</pre>
<p> </p>
<pre>
Diluted earnings per share:
Loss from continuing operations ($0.01) ($0.05)
Earnings from discontinued
operations - 0.85
Net (loss) earnings ($0.01) $0.80
====== =====
</pre>
<p> </p>
<pre>
Amounts attributable to Century
Casinos, Inc. and subsidiaries
common shareholders:
Loss from continuing operations ($259) ($1,026)
Earnings from discontinued
operations - 19,929
Net (loss) earnings ($259) $18,903
===== =======
</pre>
<p> </p>
<pre>
Weighted average common shares,
basic and diluted 23,815,936 23,524,067
</pre>
<p> </p>
<p> </p>
<pre>
For the six months
ended June 30,
2010 2009
---- ----
Basic earnings per share:
Loss from continuing operations ($0.01) ($0.10)
Earnings from discontinued
operations - 0.92
Net (loss) earnings ($0.01) $0.82
====== =====
</pre>
<p> </p>
<pre>
Diluted earnings per share:
Loss from continuing operations ($0.01) ($0.10)
Earnings from discontinued
operations - 0.92
Net (loss) earnings ($0.01) $0.82
====== =====
</pre>
<p> </p>
<pre>
Amounts attributable to Century
Casinos, Inc. and subsidiaries
common shareholders:
Loss from continuing operations ($129) ($2,467)
Earnings from discontinued
operations - 21,715
Net (loss) earnings ($129) $19,248
===== =======
</pre>
<p> </p>
<pre>
Weighted average common shares,
basic and diluted 23,815,936 23,524,067
</pre>
<p> </p>
<pre>
CENTURY CASINOS, INC. AND SUBSIDIARIES
--------------------------------------
FINANCIAL INFORMATION - US GAAP BASIS
-------------------------------------
Century Casinos, Inc.
Condensed Consolidated Balance Sheets (Unaudited)
(Amounts in thousands)
</pre>
<p> </p>
<pre>
December
June 30, 31,
2010 2009
---- ----
Assets
Current Assets $26,171 $39,627
Property and equipment, net 99,710 88,241
Other Assets 8,498 7,442
Total Assets $134,379 $135,310
======== ========
</pre>
<p> </p>
<pre>
Liabilities and Shareholders' Equity
Current Liabilities $10,356 $10,984
Non-Current Liabilities 16,636 16,037
Shareholders' Equity 107,387 108,289
Total Liabilities and Shareholders'
Equity $134,379 $135,310
======== ========
</pre>
<p> </p>
<pre>
CENTURY CASINOS, INC. AND SUBSIDIARIES
--------------------------------------
SUPPLEMENTAL INFORMATION
------------------------
Century Casinos, Inc.
Adjusted EBITDA Margins ** by Property (Unaudited)
</pre>
<p> </p>
<pre>
For the Three
Months
Ended June 30,
--------------
2010 2009
---- ----
Century Casino & Hotel (Edmonton) 32% 32%
Silver Dollar Casino (Calgary) -1% 0%
Womacks Casino & Hotel (Cripple
Creek) 19% 14%
Century Casino & Hotel (Central
City) 22% 23%
Cruise Ships 15% 12%
Consolidated Adjusted EBITDA
Margin 13% 13%
</pre>
<p> </p>
<p> </p>
<pre>
For the Six
Months
Ended June 30,
--------------
2010 2009
---- ----
Century Casino & Hotel (Edmonton) 31% 34%
Silver Dollar Casino (Calgary) 4% 0%
Womacks Casino & Hotel (Cripple
Creek) 14% 17%
Century Casino & Hotel (Central
City) 22% 24%
Cruise Ships 21% 12%
Consolidated Adjusted EBITDA
Margin 14% 15%
</pre>
<p> </p>
<p> </p>
<pre>
Century Casinos, Inc.
Reconciliation of Adjusted EBITDA * to Earnings (Loss) from
Continuing Operations by Property (Unaudited)
For the Three Months Ended June 30, 2010
</pre>
<p> </p>
<pre>
Amounts in
thousands Three Months Ended June 30, 2010
--------------------------------
Central Cruise
Cripple
Edmonton Creek City Ships
-------- -------- ---- -----
Earnings (loss)
from continuing
operations $855 $121 $176 ($3)
Interest income (10) - - -
Interest expense 288 - - -
Income taxes 280 74 97 -
Depreciation 353 294 674 82
Stock
compensation - - - -
Foreign currency (3) - - -
Disposition of
fixed assets 3 1 - -
--- --- --- ---
Adjusted EBITDA* $1,766 $490 $947 $79
====== ==== ==== ===
</pre>
<p> </p>
<p> </p>
<pre>
Amounts in
thousands Three Months Ended June 30, 2010
--------------------------------
Silver
Dollar Corporate Total
------ --------- -----
Earnings (loss)
from continuing
operations ($62) ($1,346) ($259)
Interest income (1) (3) (14)
Interest expense - (7) 281
Income taxes (26) (333) 92
Depreciation 67 54 1,524
Stock
compensation - 145 145
Foreign currency (4) 238 231
Disposition of
fixed assets - 1 5
--- --- ---
Adjusted EBITDA* ($26) ($1,251) $2,005
==== ======= ======
</pre>
<p> </p>
<p> </p>
<pre>
Three Months Ended June 30, 2009
--------------------------------
Central Cruise
Cripple
Edmonton Creek City Ships
-------- -------- ---- -----
Earnings (loss)
from continuing
operations $653 ($41) ($171) ($17)
Interest income - - - -
Interest expense 281 74 515 -
Income taxes 253 (25) (117) (2)
Depreciation 320 343 751 71
Stock
compensation - - - -
Foreign currency 47 - - -
Disposition of
fixed assets - - 2 -
--- --- --- ---
Adjusted EBITDA* $1,554 $351 $980 $52
====== ==== ==== ===
</pre>
<p> </p>
<p> </p>
<pre>
Three Months Ended June 30, 2009
--------------------------------
Silver
Dollar Corporate Total
------ --------- -----
Earnings (loss)
from continuing
operations - ($1,469) ($1,045)
Interest income - (1) (1)
Interest expense - 45 915
Income taxes - (9) 100
Depreciation - 65 1,550
Stock
compensation - 275 275
Foreign currency - (293) (246)
Disposition of
fixed assets - 13 15
--- --- ---
Adjusted EBITDA* - ($1,374) $1,563
=== ======= ======
</pre>
<p> </p>
<pre>
CENTURY CASINOS, INC. AND SUBSIDIARIES
--------------------------------------
SUPPLEMENTAL INFORMATION
------------------------
Century Casinos, Inc.
Reconciliation of Adjusted EBITDA* to Earnings (Loss) from Continuing
Operations by Property (Unaudited)
For the Six Months Ended June 30, 2010
(Amounts in Thousands)
</pre>
<p> </p>
<pre>
Six Months Ended June 30, 2010
------------------------------
Central Cruise
Cripple
Edmonton Creek City Ships
-------- -------- ---- -----
Earnings from
continuing
operations $1,574 $61 $338 $64
Interest income (18) - - -
Interest expense 577 - - -
Income taxes 561 37 183 2
Depreciation 696 583 1,346 170
Stock compensation - - - -
Foreign currency 22 - - -
Disposition of
fixed assets 3 1 1 -
Other one-time
items - - - -
--- --- --- ---
Adjusted EBITDA* $3,415 $682 $1,868 $236
</pre>
<p> </p>
<p> </p>
<pre>
Six Months Ended June 30, 2010
------------------------------
Silver
Dollar Corporate Total
------ --------- -----
Earnings from
continuing
operations $32 ($2,198) ($129)
Interest income (1) (3) (22)
Interest expense - (5) 572
Income taxes 13 (524) 272
Depreciation 108 110 3,013
Stock compensation - 288 288
Foreign currency 1 73 96
Disposition of
fixed assets - 2 7
Other one-time
items - (108) (108)
--- ---- ----
Adjusted EBITDA* $153 ($2,365) $3,989
</pre>
<p> </p>
<p> </p>
<pre>
Six Months Ended June 30, 2009
------------------------------
Central Cruise
Cripple
Edmonton Creek City Ships
-------- -------- ---- -----
Earnings from
continuing
operations $1,534 ($20) ($302) ($17)
Interest income (2) - (1) -
Interest expense 530 138 1,052 -
Income taxes 602 (12) (210) (2)
Depreciation 619 739 1,502 129
Stock compensation - - - -
Foreign currency 46 - - -
Disposition of
fixed assets - - 2 -
Impairments and
other write-offs - - - -
--- --- --- ---
Adjusted EBITDA* $3,329 $845 $2,043 $110
====== ==== ====== ====
</pre>
<p> </p>
<p> </p>
<pre>
Six Months Ended June 30, 2009
------------------------------
Silver
Dollar Corporate Total
------ --------- -----
Earnings from
continuing
operations - ($3,699) ($2,504)
Interest income - (7) (10)
Interest expense - 95 1,815
Income taxes - (59) 319
Depreciation - 133 3,122
Stock compensation - 624 624
Foreign currency - 233 279
Disposition of
fixed assets - 13 15
Impairments and
other write-offs - 2 2
--- --- ---
Adjusted EBITDA* - ($2,665) $3,662
=== ======= ======
</pre>
<p> </p>
<pre>
CENTURY CASINOS, INC. AND SUBSIDIARIES
--------------------------------------
SUPPLEMENTAL INFORMATION
------------------------
Century Casinos, Inc.
Adjusted Net Loss (Unaudited)
(Amounts in thousands)
</pre>
<p> </p>
<pre>
For the Three
Months For the Six Months
Ended June 30, Ended June 30,
-------------- --------------
2010 2009 2010 2009
---- ---- ---- ----
Loss from continuing operations ($259) ($1,045) ($129) ($2,504)
Foreign currency loss (gains) 244 (276) 1 249
Other income - insurance
reimbursement - - (108) -
Adjusted Net Loss ($15) ($1,321) ($236) ($2,255)
==== ======= ===== =======
</pre>
<p> </p>
<p> </p>
<pre>
Century Casino & Hotel (Edmonton)
Reconciliation of Adjusted EBITDA to Net Earnings (Unaudited) in
Canadian Dollars
(Amounts in thousands)
</pre>
<p> </p>
<pre>
For the For the
three three For the six For the six
months months
months ended months ended ended ended
June 30, June 30, June 30, June 30,
2010 2009 2010 2009
--------- --------- --------- ---------
Net earnings -
CAD $$835 $823 $1,639 $1,920
Interest income (11) (1) (19) (3)
Interest expense 296 327 597 637
Income taxes 287 296 578 728
Depreciation 363 373 720 745
Foreign currency
(gains) 41 (1) 6 (1)
Loss on
disposition of
fixed assets 2 - 3 -
Adjusted EBITDA*
-CAD $$1,813 $1,817 $3,524 $4,026
======= ====== ====== ======
</pre>
<p> </p>
<p> </p>
<pre>
Silver Dollar Casino
Reconciliation of Adjusted EBITDA* to Net Earnings (Unaudited) in
Canadian Dollars
(Amounts in thousands)
</pre>
<p> </p>
<pre>
January
April 1, 13,
to June to June
30 30
2010 2010
---- ----
Net earnings - CAD $(80) 29
Interest income (1) (1)
Interest expense 0 0
Income taxes (29) 12
Depreciation 69 112
Foreign currency 10 7
Adjusted EBITDA* - CAD $(31) 159
==== ===
CENTURY CASINOS, INC. AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION
</pre>
<p>* The Company defines Adjusted EBITDA as earnings (loss) from continuing operations before interest, income taxes, depreciation, amortization, 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. For the first quarter of 2010, the Company recognized revenue of <span class="xn-money">$0.1 million</span> for insurance proceeds received on damages to a property, in Wells, Nevada, that the Company no longer owns. 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 <span class="xn-location">United States</span> 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 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. Please see the reconciliation of Adjusted EBITDA to earnings from continuing operations below. Not all of the aforementioned items occur in each reporting period, but have been included in the definition based on historical activity.</p>
<p/>
<p>** 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.</p>
<pre>
CENTURY CASINOS, INC. AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION
About Century Casinos, Inc.:
</pre>
<p>Century Casinos, Inc. is an international casino entertainment company that owns and operates the Womacks Casino & Hotel in Cripple Creek, Colorado, the Century Casino & Hotel in Central City, Colorado, the Century Casino & Hotel in <span class="xn-location">Edmonton</span>, <span class="xn-location">Canada</span> and the Silver Dollar Casino in <span class="xn-location">Calgary</span>, <span class="xn-location">Canada</span>. The Company also operates casinos aboard eight luxury cruise vessels (Silver Cloud, Regatta, Insignia, Nautica, Mein Schiff, Wind Surf, Wind Star, Wind Spirit) and signed contracts for casinos on six additional ships (Seven Seas Voyager, Seven Seas Mariner, Seven Seas Navigator, Marina, Riviera and TUI Mein Schiff II) that are expected to start operations soon. Through its Austrian subsidiary, Century Casinos <span class="xn-location">Europe</span> GmbH, the Company holds a 33.3% ownership interest in Casinos <span class="xn-location">Poland</span> Ltd., the owner and operator of seven full casinos and one slot casino in <span class="xn-location">Poland</span>. Century Casinos, Inc. continues to pursue other international projects in various stages of development.</p>
<p/>
<p>For more information about Century Casinos, visit our website at <a href="http://www.centurycasinos.com">www.centurycasinos.com</a>. Century Casinos' common stock trades on The NASDAQ Capital Market® and the <span class="xn-location">Vienna</span> Stock Exchange under the symbol CNTY.</p>
<p/>
<p>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, expected competition, the impact of new gaming laws, plans for our casinos and the impact of the 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 <span class="xn-chron">March 15, 2010</span>. 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.</p>
<pre>
For further information: Peter Hoetzinger, Co CEO & President of Century Casinos, Inc., +1-719-689-5813, +43-664-355-3935, [email protected] Web Site: http://www.centurycasinos.com
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