Century Casinos, Inc. · NASDAQ:CNTY
Century Casinos — Investor Presentation (May 2015)
36 slides from Century Casinos's investor presentation, May 27, 2015
Slide 1: Century Casinos logo
Slide 2: Corporate Presentation
Corporate Presentation Peter Hoetzinger Co Founder, Co CEO & President May 2015
Slide 3: International Casino and Entertainment Company
International Casino and Entertainment Company § Developer and operator of mid-market, mid-size casinos in regulated markets world-wide § 32 casinos with 4,500 slots and 230 tables in – USA (Colorado), – Canada (Alberta), – Caribbean (Aruba), – Europe (Poland), – Argentina (Mendoza) and – Luxury C
Slide 4: 23-year Track Record
23-year Track Record Sustainable Growth Prudent Expansion Strategy Net Operating Revenues in USD Mio. *) § 1992 Company foundation by Co CEOs 140 Erwin Haitzmann and Peter Hoetzinger 120 § 1993 First casino on cruise vessel § 1994 First casino in Colorado 100 Listing on NASDAQ 80 § 2000 Casinos
Slide 5: Overview: Existing Operations
Overview: Existing Operations
Slide 6: International Diversification
International Diversification Edmonton ! Calgary (2) ! Denver Colorado Springs ! ! Eastern Europe ! ! (9 Casinos in Poland) ! Aruba ! ! ! ! ! ! ! ! Argentina ! Land-based Casinos (16) ! Ship-based Casinos (16)
Slide 7: Canada (Alberta)
Canada (Alberta)
Slide 8: Casinos in Canada (Alberta)
Casinos in Canada (Alberta) Casinos in major metropolitan areas of Canada, both wholly-owned Calgary Edmonton Acquisition 2010 / Re-Opening 2011 Opening 2006 16 Gaming Tables and 504 Gaming Machines 36 Gaming Tables and 760 Gaming Machines Extensive surface parking available 26 Hotel rooms, heated p
Slide 9: Alberta market
Alberta market Great Regulatory and Economic Environment for Casino Industry Job growth leads to growing and increasingly wealthy population with high discretionary income (median income 24% above Canada’s national average) Over the past ten years, Alberta’s population has increased by 27% (to over
Slide 10: Q1 Highlights – Canada (Alberta)
Q1 Highlights – Canada (Alberta) In CAD mil Q1 2015 Q1 2014 Change Net Operating Revenue 10.5 9.4 11% Operating Costs and Expenses 7.7 7.1 9% Adjusted EBITDA 3.7 2.8 33% Adjusted EBITDA Margin 36% 29% Ø Record EBITDA margin at Century Casino & Hotel Edmonton: 41% Ø Broad-based growth: tables, slot
Slide 11: USA (Colorado)
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Slide 12: Two Casinos in USA (Colorado)
Two Casinos in USA (Colorado) Hotel-Casinos near Denver and Colorado Springs, both wholly-owned Central City Cripple Creek Opening 2006 Opening 1993 8 Gaming Tables and 498 Gaming Machines 6 Gaming Tables and 449 Gaming Machines 26 Hotel rooms, 500 car parking garage 21 Hotel rooms 2 Restaurants and
Slide 13: Denver's Best Casino
Denver’s Best Casino Based on 150,000 votes from locals choosing the best places in the greater Denver area Ahead of much larger companies such as Ameristar, Isle of Capri and Riviera casinos Focus on customer service and player loyalty program Bill prohibiting internet sweepstakes cafes signed by G
Slide 14: Q1 Highlights – USA (Colorado)
Q1 Highlights – USA (Colorado) In USD mil Q1 2015 Q1 2014 Change Net Operating Revenue 6.8 6.5 5% Operating Costs and Expenses 5.9 6.1 -3% Adjusted EBITDA 1.5 0.9 68% Adjusted EBITDA Margin 22% 14% Ø Third quarter in a row with EBITDA growth at both properties, rebound of Colorado market continues
Slide 15: Eastern Europe (Poland)
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Slide 16: Nine Casinos in Poland
Nine Casinos in Poland Casinos Poland Ltd. – Nine Casinos in Major Cities of Poland 66.66% Controlling Stake in Polish Market Leader (45% market share) 33.33% stake since 2007, increased to 66.66% in 2013 for USD 6.8 million High-quality casinos in 4- and 5-star hotels with 76 gaming tables and 437
Slide 17: Poland: Solid Annual GDP-Growth
Poland: Solid Annual GDP-Growth GDP Annual Growth Rate Forecast between 3.5% and 2.3% from 2015 to 2030
Slide 18: Q1 Highlights – Poland
Q1 Highlights – Poland In PLN mil Q1 2015 Q1 2014 Change Net Operating Revenue 50.2 37.9 33% Operating Costs and Expenses 46.2 37.8 22% Adjusted EBITDA 6.8 2.4 185% Adjusted EBITDA Margin 14% 6% Ø Slot revenue increased PLN 5.1 mil, or 39%. Added 99 new machines since Q1 2014. Further additions pla
Slide 19: Other (Cruise Ships, Aruba, Argentina)
Other (Cruise Ships, Aruba, Argentina)
Slide 20: Casinos on Cruise Ships
16 Casinos on Cruise Ships Largest Independent Operator of Casinos onboard luxury Cruise Vessels Casinos wholly-owned and operated under casino concession agreements 66 Gaming Tables and 563 Gaming Machines. Approx. 15,000 passengers daily. Opportunistic approach towards cruise lines with affluent p
Slide 21: Casino Aruba
Casino Aruba Casino in Radisson Hotel & Spa Resort Aruba Management Agreement (no investment) Re-opening under Century Casinos‘ Management in 2010 355 rooms and suites, various restaurants and bars, conference and spa facilities 12 Gaming Tables and 176 Gaming Machines for international tourists and
Slide 22: Casino de Mendoza - Argentina
Casino de Mendoza - Argentina Minority stake in Mendoza Central Entretenimientos S.A. , Option to Increase to 50% Long-term Consulting Services Agreement Main shareholders are affiliates of UnoMedios, one of the largest media groups in Argentina (TV stations, radio stations, newspapers, etc.) MCE le
Slide 23: Q1 2015 Consolidated Financial Results
Q1 2015 Consolidated Financial Results
Slide 24: Income Statement
Income Statement In USD mil (except EPS) Q1 2015 Q1 2014 Change Net Operating Revenue *) 30.4 29.1 4% Adjusted EBITDA **) 4.8 2.8 72% Earnings per Share 0.08 0.02 300% *) Net Operating Revenue was up 17% on a constant currency basis. **) Adjusted EBITDA was up 93% on a constant currency basis.
Slide 25: Balance Sheet
Balance Sheet In USD mil (except BVPS) Q1 2015 Q1 2014 Change Total Assets 183.6 187.5 0% Book Value per Share 4.73 4.95 -4% Net Debt *) 15.8 7.4 *) Net Debt is calculated as total debt minus cash and cash equivalents. Debt as of March 31, 2015 includes $5.5 million related to Casinos Poland, $15.4
Slide 26: Q1 2015 Results by Segment
Q1 2015 Results by Segment Net Opera)ng Revenue Adjusted EBITDA Other Other *) 5% 3% Canada Canada 28% Poland 46% 28% Poland 45% United United States States 22% 23% *) Other Adjusted EBITDA represents our Cruise Ship, Aruba and Argen/na agreements.
Slide 27: Net Operating Revenue per Quarter
Net Operating Revenue per Quarter (in millions) $35 $31,6 $31,3 $30,4 $29,1 $28,8 $29,4 $30 $28,3 $28,1 $25 $20 $18,0 $18,0 $17,8 $18,1$18,7 $17,6$17,7 $17,1$17,6 $16,0 $15,6 $14,9 $15 $14,1 $10 $5 $0 Q1 Q2 Q3 Q4 2010 2011 2012 2013 2014 2015 2010 2011 2012 2013 2014 2010 2011 2012 2013 2014 2010 20
Slide 28: Net Debt to Adjusted EBITDA
Net Debt to Adjusted EBITDA 4,0x 3,5x 3,0x 2,0x 1,1x 1,1x 1,0x 0,5x 0,0x -1,0x -1,0x -1,5x -2,0x -2,0x -3,0x -2,6x 2008 2009 2010 2011 2012 2013 2014 2015
Slide 29: Immediate Growth Drivers
Immediate Growth Drivers
Slide 30: Organic Growth at Casinos Poland Ltd.
Organic Growth at Casinos Poland Ltd. § Targets for next few quarters: – Optimization of operating procedures to further increase operating margins – Installation of player loyalty program at select locations – Increase quantity and quality of slot machines § Gaming law provides for the licenses o
Slide 31: Century Downs Racetrack and Casino, Calgary, Canada
Century Downs Racetrack and Casino Calgary, Canada Opened April 1 Last remaining casino license in any Alberta metro area 550 slots, 0.7 mile race track, bars, lounges, restaurants, off-track-betting 75% ownership and management control Only horse race track in greater Calgary
Slide 32: Century Downs Racetrack and Casino Calgary, Canada
Century Downs Racetrack and Casino Calgary, Canada § In position to capture north and affluent north west Calgary markets § On Queen Elisabeth II highway, one of the most heavily used highways in Western Canada § Next to CrossIron Mills, a 1.4 mil sft regional shopping center (anchor tenant Bass
Slide 33: Century Bets! Inc.
Century Bets! Inc. § Exclusive Off-Track Betting License for Southern Alberta § 75% owned subsidiary § Start of operations: May 4, 2015 § Agreements with 100 racetracks for common pool pari-mutual wagering § We provide that content as well as live video to 15 locations across Southern Alberta
Slide 34: Three new Ship-Casinos
Three new Ship-Casinos § Windstar Cruises (we have the agreement to operate their casinos) will put two newly acquired (ex-Seabourn Cruises) 210-pax luxury vessels into service in May 2015 § TUI Cruises (joint venture between Royal Caribbean Cruises and TUI Travel) starts the 2,500 pax “Mein Schif
Slide 35: Summary
Summary § Internationally diversified portfolio of 32 profitable casinos § Market leader in Poland and Cruise Industry § Healthy balance sheet (Net Debt / Adj. EBITDA ratio: 1) § Substantial growth drivers for coming quarters: Ø Slot Revenue Growth in Poland Ø Century Downs Racetrack and Casin
Slide 36: THANK YOU !
THANK YOU ! Peter Hoetzinger Co Founder, Co CEO & President, Vice Chairman peter.hoetzinger@cnty.com USA: (719) 689 5813 Europe: + 43 664 355 3935