Century Casinos, Inc. · NASDAQ:CNTY
Century Casinos — Debt Investor Presentation (March 2022)
44 slides from Century Casinos's debt investor presentation, March 2022
Slide 1: Lender Presentation
LENDER PRESENTATION March 2022
Slide 2: Authorization Letter
Authorization Letter CENTURY CASINOS, INC. 455 E. Pikes Peak Ave., Suite 210 Colorado Springs, CO 80903 March 1, 2022 Goldman Sachs Bank USA 200 West Street New York, NY 10282 Ladies and Gentlemen: We refer to the proposed $350,000,000 senior secured term loan credit facility (the "Facility") for Ce
Slide 3: Disclaimer
Disclaimer This presentation contains certain “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. Forward-looking statements
Slide 4: Today's Presenters
Today’s Presenters Erwin Haitzmann Peter Hoetzinger Margaret Stapleton Chairman of the Board, Vice Chairman of the Board, Chief Financial Officer Co-CEO Co-CEO and President 3
Slide 5: Agenda
Agenda 1 Transaction Overview 2 Century at a Glance 3 The Nugget Casino Resort Overview 4 Key Credit Highlights 5 Financial Overview 6 Appendix 4
Slide 6: Transaction Overview
1 TRANSACTION OVERVIEW
Slide 7: Executive Summary
Executive Summary Century Casinos, Inc. (“Century” or the “Company”) is a leading regional casino entertainment company that develops and operates gaming establishments in North America and Poland ― Owns and operates 16 casinos and 2 entertainment facilities across markets located in Missouri, Wes
Slide 8: Sources and Uses and Pro Forma Capitalization
Sources and Uses and Pro Forma Capitalization $ in millions Sources and Uses Sources Uses New Super Priority Revolving Credit Facility - Acquisition Costs $ 195 New Term Loan B 350 Refinance Exisiting Debt 167 Cash from Balance Sheet 50 Girardeau Hotel Project 25 Transaction Fees and Expenses 13 Tot
Slide 9: Pro Forma Organizational Structure
Pro Forma Organizational Structure $30mm Super Priority Revolving Credit Facility Century $350mm Senior Secured Term Loan B Casinos, Inc. Colorado Nevada Canada Poland CNTY Acq. Inc. Subsidiaires Subsidiaries Subsidiaries Subsidiaries West Virginia Missouri Subsidiaries Subsidiaries Borrower / Issue
Slide 10: Summary Indicative Terms
Summary Indicative Terms Senior Secured Term Loan B Borrower: Century Casinos, Inc. Fully and unconditionally guaranteed on a joint and several basis by the Borrower and all current and Guarantee: future wholly-owned material, U.S. subsidiaries Security: First lien on substantially all assets
Slide 11: Transaction Timeline
Transaction Timeline March April M T W T F M T W T F 1 2 3 4 1 7 8 9 10 11 4 5 6 7 8 14 15 16 17 18 11 12 13 14 15 21 22 23 24 25 18 19 20 21 22 28 29 30 31 25 26 27 28 29 Key Transaction Date Market Holiday Date Key Event March 16 Lender Presentation April 1 Close and fund Financing Transaction
Slide 12: Century at a Glance
2 CENTURY AT A GLANCE
Slide 13: Century Casinos Timeline of Significant Events
Century Casinos Timeline of Significant Events Acquired Century Casinos, Acquisition of Increased ownership Century Opened Century Mile Inc. is founded Nugget of Casinos Poland, Casino St. Acquired Century Ltd. to 66.6% (first Albert in Casino Casino & Hotel in Acquired Century 33.3% acquired in Edm
Slide 14: Century's Property Footprint
Century’s Property Footprint Diversified Local Gaming Footprint in Drive-to Markets Century Downs Century Casino Century Casino Century Mile Casinos Poland Locations: Racetrack & Casino St. Albert & Hotel Edmonton Racetrack & Casino • Warsaw at Marriott Hotel • Warsaw at Hilton Hotel • Wawa at LIM C
Slide 15: Overview of Century Properties
Overview of Century Properties Mountaineer 2 Casinos and 2 Century Casino 8 Properties Century Casino & Casino, Century Casino Century Casino Racing Nugget Casino Property & Hotel Cripple throughout Hotel Central City Racetrack & Cape Girardeau Caruthersville Entertainment Resort Creek Poland Resort
Slide 16: Colorado Region Market Overview and Asset Summary
Colorado Region Market Overview and Asset Summary Central City and Cripple Creek Asset Property Highlights Key Stats1 Central City is located just 45 minutes west of Denver Casino Sq. Footage 22,640 sq. ft. Easily accessible from highway I-70 Slot Machines 438 Voted Denver’s Best Casino since
Slide 17: Missouri Region Market Overview and Asset Summary
Missouri Region Market Overview and Asset Summary Cape Girardeau and Caruthersville Asset Property Highlights Key Stats1 Cape Girardeau is situated in downtown Cape Girardeau Casino Sq. Footage 41,530 sq. ft. The property opened in October 2012 with the 13th and final gaming license in Missouri
Slide 18: West Virginia Region Market Overview and Asset Summary
West Virginia Region Market Overview and Asset Summary Mountaineer Casino Asset Property Highlights Key Stats1 Mountaineer Casino is the area’s only full service Casino Sq. Footage 72,380 sq. ft. resort and casino featuring world-class thoroughbred racing, an 18-hole golf course and 5,000-seat con
Slide 19: The Nugget Casino Resort Overview
3 THE NUGGET CASINO RESORT OVERVIEW
Slide 20: Nugget Casino Resort Property Overview
Nugget Casino Resort Property Overview Key Highlights Property Stats The newly remodeled Nugget Casino is conveniently located Owned Land Acreage Casino Sq. Ft. on route I-80 with easy access from the airport 29 50,200 The full-service resort boasts a large gaming floor, two hotel towers, a conv
Slide 21: Strategic Rationale and Investment Highlights
Strategic Rationale and Investment Highlights The Nugget Reno Offers Immediate Synergies to a Growing Century Platform Offers Century an entry into the state of Nevada and a high-profile, top 15 U.S. gaming market1 that has a Expand Century’s revitalized and growing economic base U.S. Footprint an
Slide 22: Reno-Sparks Developments Driving Significant Untapped Potential
Reno-Sparks Developments Driving Significant Untapped Potential in the Current Market Area Highlights Reno-Sparks Average Per Room Per Day Statistics Reno is famous for its casinos, but is also known as a $222 $215 destination for outdoor recreation with proximity to $196 Lake Tahoe and several sk
Slide 23: The Nugget is a Premium Asset in an Economy Poised for Continued Growth
The Nugget is a Premium Asset in an Economy Poised for Continued Growth The Nugget Vs. Reno-Sparks Casino Average Revenue ($mm) Reno-Sparks Unemployment Rate +34 % +72 % 0% (37) % +23 % 25.0 % $ 64 20.0 % $ 53 15.0 % $ 33 $ 25 10.0 % $ 18 $ 10 $8 $8 $ 10 $6 5.0 % 2.9 % Casino Rooms Food Other Total
Slide 24: Key Credit Highlights
4 KEY CREDIT HIGHLIGHTS
Slide 25: Key Credit Highlights
Key Credit Highlights 1 Diverse regional exposure in stable, mature gaming markets 2 Broad geographic and asset diversification 3 Long-term operating track record and accretive acquisitions 4 Well-positioned for the next stage of growth 5 Robust liquidity and free cash flow generation 6 Experienced
Slide 26: Diverse Regional Exposure in Stable, Mature Gaming Markets
1 Diverse Regional Exposure in Stable, Mature Gaming Markets Colorado GGR Exposure to attractive regional markets proven to be resilient throughout the pandemic $ 842 $ 976 $ 811 $ 828 $ 834 — 2021 GGR levels materially up versus 2019 across $ 560 almost all markets served in the U.S. — Sustainabl
Slide 27: Stable Historical Performance of Regional GGR in the United States
1 Stable Historical Performance of Regional GGR in the United States U.S. regional GGR has maintained stable growth since 2001 and is resilient to macroeconomic changes including oil prices and CPI U.S. Regional GGR ($bn) $50.0 $ 47 $ 39 $ 40 $ 35 $ 37 $40.0 $ 32 $ 34 $ 34 $ 31 $ 30 $ 29 $ 30 $ 31 $
Slide 28: Broad Geographic and Asset Diversification
2 Broad Geographic and Asset Diversification Acquisition of Nugget increases scale ($100mm of revenue / 25% increase) and further diversifies earnings both on a geographic (7 markets across North America and Poland) and property level basis (no single property accounting for more than 25% of propert
Slide 29: Proven Track Record of Consistent Adjusted EBITDA Stability
3 Century Has a Proven Track Record of Consistent Adjusted EBITDA Stability and is Poised for Future Growth Decade plus of steady Adj. EBITDA growth with attractive opportunities to accelerate growth with new acquisition 2010 – 2017 2018 – Present Pro $ in millions Adj. EBITDA Adj. EBITDA Forma1 I
Slide 30: Long-Term Operating Track Record of Accretive Acquisitions
3 Long-Term Operating Track Record of Accretive Acquisitions Century has a track record of increasing topline growth and improving profitability of its acquired properties by utilizing a proven operational playbook that focuses on high ROI initiatives Key Initiatives Since Acquisitions from Eldorado
Slide 31: Century is Well-Positioned for the Next Stage of Growth
4 Century is Well-Positioned for the Next Stage of Growth Century’s operating expertise has provided opportunities to make targeted and strategic investments that have long-term impact Recently Completed or in-Process Organic Growth Projects Truing Up mobile app to enhance customer experience, bui
Slide 32: Century is Well-Positioned for the Next Stage of Growth
4 Century is Well-Positioned for the Next Stage of Growth Missouri Projects Caruthersville Century purchased the neighboring two-story hotel and plans to renovate the existing hotel and casino Caruthersville Non-Floating — The new Century hotel will be the only hotel in downtown Facility Rendering
Slide 33: Strong Free Cash Flow Generation and Modest Leverage Profile
5 Strong Free Cash Flow Generation and Modest Leverage Profile FY2021 Strong free cash flow generation historically due to stable margin profile Pro Forma and limited maintenance capex requirements Century Adj. EBITDA $ 98 Nugget Adj. EBITDA 33 Maintenance capex averages ~3.4% of revenue histori
Slide 34: Experienced Management Team with Significant Gaming Operating Expertise
6 Experienced Management Team with Significant Gaming Operating Expertise Century’s management team has combined 100+ years of experience and has operated 100+ casinos in 20+ countries Erwin Haitzmann Peter Hoetzinger Margaret Stapleton Andreas Terler Timothy Wright Chairman of the Board, Co- Vice C
Slide 35: Financial Overview
5 FINANCIAL OVERVIEW
Slide 36: Summary of Standalone Century Historical Financial Performance
Summary of Standalone Century Historical Financial Performance $ in millions Revenue Adj. EBITDA and Margin1 Margin: 19.0 % 19.1 % 18.5 % 15.9 % 25.2 % $ 422.7 $ 380.0 $ 388.1 $ 5.7 $ 388.7 $ 97.9 $ 4.4 $ 5.9 $ 80.7 $ 0.6 $ 100.0 $ 61.4 $ 46.4 $ 57.7 $ 304.3 $ 78.4 $ 58.4 $ 72.2 $ 74.2 $ 81.9 $ 1.4
Slide 37: Summary of Pro Forma Century Historical Financial Performance
Summary of Pro Forma Century Historical Financial Performance $ in millions Key Highlights Revenue Stable revenue growth across Century and the Nugget $ 511.9 $ 489.1 with strong recovery post-COVID $ 460.7 $ 473.7 $ 89.1 $ 85.5 $ 100.4 Consistent Adj. EBITDA growth combined with margin $ 80.7 $
Slide 38: Reconciliation of Pro Forma Adjusted EBITDA
Reconciliation of Pro Forma Adjusted EBITDA $ in millions $ 32.8 $ 130.8 ($ 32.8 ) $ 97.9 $ 98.1 2021 Century Adj. EBITDA 2021 Nugget Adj. EBITDA Pro Forma Adj. EBITDA Pro Forma Cash Rent / Lease Pro Forma Further Adj. EBITDA Expense Note: Adjusted EBITDA and Further Adjusted EBITDA are non-GAAP fin
Slide 39: Appendix
6 APPENDIX
Slide 40: Impact of COVID-19 and Performance Since Reopening
Impact of COVID-19 and Performance Since Reopening Impact of COVID-19 Post-Reopening Performance To comply with government mandates as a result of the Century’s geographic diversity with locations in hyperlocal, COVID-19 pandemic, Century closed casinos, hotels and drive-to markets with a loyal
Slide 41: Summary of Standalone Nugget Historical Financial Performance
Summary of Standalone Nugget Historical Financial Performance $ in millions Key Highlights Revenue Stable topline performance $ 100.4 Strong recovery out of the COVID-19 pandemic with $ 85.5 $ 89.2 meaningful margin expansion $ 80.7 Significant growth CapEx spend 2017 – 2019 making the Nugget
Slide 42: Reconciliation of Non-GAAP Adjusted EBITDA
Reconciliation of Non-GAAP Adjusted EBITDA Century Standalone | $ in millions FYE December 31, 2017 2018 2019 2020 2021 Net earnings (loss) attributable to Century Casinos, Inc. shareholders $ 6.3 $ 3.4 $(19.2) $(48.0) $ 20.6 Interest expense (income), net 3.6 4.1 8.2 43.1 42.7 Income taxes (benefit
Slide 43: Reconciliation of Non-GAAP Adjusted EBITDA
Reconciliation of Non-GAAP Adjusted EBITDA Nugget Standalone | $ in millions FYE December 31, 2017 2018 2019 2020 2021 Net income / (loss) $ 6.6 $ 5.0 $ 4.1 $(5.5) $ 16.0 Interest expense (income), net 0.1 0.6 0.8 0.9 0.9 Depreciation and amortization 6.8 11.4 11.3 14.1 13.9 Management Fees 0.7 0.7
Slide 44: Non-GAAP Financial Measures
Non-GAAP Financial Measures The Company defines Adjusted EBITDA as net earnings (loss) attributable to Century Casinos, Inc. shareholders before interest expense (income), net, income taxes (benefit), depreciation and amortization, non-controlling interests net earnings (loss) and transactions, pre-
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