Century Casinos, Inc. · NASDAQ:CNTY
Century Casinos — Q2 2004 Earnings Presentation
35 slides from Century Casinos's earnings presentation, Jul 29, 2004
Slide 1: Review of Financial Results for Quarter Ended June 30, 2004
CENTURY CASINOS, INC. CENTURY CASINOS, INC. Review of Financial Results of Operations and Financial Condition as of and for the quarter ended June 30, 2004 July 29, 2004 1
Slide 2: Disclosure
CENTURY CASINOS, INC. Disclosure This presentation may contain forward-looking statements that involve risks and uncertainties. Among the other important factors which could cause actual results to differ materially from those in the forward-looking statements are economic, competitive, and governme
Slide 3: Balance Sheet
CENTURY CASINOS, INC. Balance Sheet Total Assets $52.2 as of June 30, 2003 compared to $57.8 million as of June 30, 2004: $3.1 million of the increase in assets during the trailing twelve months ended June 30, 2004 is related to purchases and commitments for a new slot accounting system and ne
Slide 4: Balance Sheet: Long-Term Debt
CENTURY CASINOS, INC. , Balance Sheet Long -Term Debt $10.23 million was available under the RCF as of June 30, 2004. Long-term debt breakdown: Dollar amounts in As of June 30, Millions (unaudited (unaudited)) 2003 2004 Wells Fargo Debt $13.47 $11.44 ABSA Debt 3.37 2.21 Other Debt .22 .22 Total
Slide 5: Debt/Equity Mix
CENTURY CASINOS, INC. Debt/Equity Mix As of June 30, 2004 Industry Average 37% 39% 61% 63% Total Debt Equity Source: Reuters.com, July 24, 2004 Equity $29.6 million as of June 30, 2003 compared to $36.2 million as of June 30, 2004. 12.8% CAGR since 1994. As of June 30, 2004, book value per
Slide 6: Operating Results (Second Quarter)
CENTURY CASINOS, INC. Operating Results Dollar amounts in thousands (unaudited (unaudited)) $8,000 $6,000 $4,000 $2,000 $0 2nd Qtr 2003 2nd Qtr 2004 Net Operating Revenue $7,553 $8,848 Earnings from Operations $1,667 $1,858 Net Earnings $751 $1,147 EBITDA (1) $2,343 $2,570 (1) EBITDA is defined as e
Slide 7: Operating Results (Year to Date)
CENTURY CASINOS, INC. Operating Results Dollar amounts in thousands (unaudited) $16,000 $14,000 $12,000 $10,000 $8,000 $6,000 $4,000 $2,000 $0 YTD 2003 YTD 2004 Net Operating Revenue $14,934 $16,978 Earnings from Operations $3,365 $3,566 Net Earnings $1,506 $2,051 EBITDA (1) $4,682 $4,944 (1) EBITDA
Slide 8: Earnings per Share
CENTURY CASINOS, INC. Earnings per Share 2nd Qtr 2nd Qtr 2003 2004 Basic Earnings per Shares $0.06 $0.08 Weighted Average Common 13,630,001 13,681,900 Shares Outstanding $0.08 $0.06 Basic Earnings Per $0.04 Share $0.02 $0.00 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr 2003 2004 8
Slide 9: Cash Flows
CENTURY CASINOS, INC. Cash Flows Operating Free Cash Flow Operating free cash flow is cash provided from operating activities less capital expenditures. Dollar amounts in thousands (unaudited) unaudited) YTD YTD 2003 2004 Cash flow from operations $1,656 $2,876 Capital expenditures $1,029 $2,465
Slide 10: Outstanding Shares
CENTURY CASINOS, INC. Outstanding Shares Outstanding Shares of Common Stock 13,660,500 as of June 30, 2003 and 13,681,900 as of June 30, 2004. 21,400 shares were issued for the exercise of stock options 10
Slide 11: Stock Price Performance
CENTURY CASINOS, INC. Stock Price Performance CNTY, NASDAQ & S&P 500 2000-2004 500% 400% 300% 200% 100% 0% -100% Jan-00 Jul-00 Jan-01 Jul-01 Jan-02 Jul-02 Jan-03 Jul-03 Jan-04 CNTY NASDAQ S&P 500 11
Slide 12: Contribution by Segment (Second Quarter)
CENTURY CASINOS, INC. Contribution by Segment Net Operating Revenues Net Operating Revenues (2) (1) 2nd Qtr 2003 2nd Qtr 2004 5% 9% 35% 39% 60% 52% Colorado South Africa Cruise Ships Colorado South Africa Cruise Ships (1) Shown net operating revenues exclude corporate segment’s net operating revenue
Slide 13: Contribution by Segment (Year to Date)
CENTURY CASINOS, INC. Contribution by Segment Net Operating Revenues Net Operating Revenues (1) YTD 2003 YTD 2004 5% 8% 34% 40% 61% 52% Colorado South Africa Cruise Ships Colorado South Africa Cruise Ships (1) Shown net operating revenues exclude corporate segment’s net operating revenues of $37 tho
Slide 14: Colorado Segment: Womacks Casino and Hotel
CENTURY CASINOS, INC. Colorado Segment Womacks Casino and Hotel 647 slot machines 6 table games 21 hotel rooms 2 restaurants approximately 210 employees 14
Slide 15: Womacks Operating Results (Second Quarter)
WOMACKS CASINO AND HOTEL Operating Results Dollar amounts in thousands (unaudited (unaudited)) $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 $0 2nd Qtr 2003 2nd Qtr 2004 Net Operating Revenue $4,568 $4,602 Earnings from Operations $1,658 $1,502 Net Earnings $1,023 $948 EBITDA $2,005 $1,870 15
Slide 16: Womacks Market Data (Second Quarter)
WOMACKS CASINO AND HOTEL Dollar amounts in thousands, except for average win per day (unaudited) (unaudited) Market Data 2nd Qtr 2003 2nd Qtr 2004 Gross Gaming Revenue $5,164 $5,071 Market Share of Cripple Creek 14.5% 13.8% Market Average Number of Slot Machines 601 639 Average Win per Slot Mach
Slide 17: Womacks Operating Results (Year to Date)
WOMACKS CASINO AND HOTEL Operating Results Dollar amounts in thousands (unaudited) $12,000 $9,000 $6,000 $3,000 $0 YTD 2003 YTD 2004 Net Operating Revenue $9,212 $8,947 Earnings from Operations $3,353 $2,979 Net Earnings $2,061 $1,907 EBITDA $4,052 $3,687 17
Slide 18: Womacks Market Data (Year to Date)
WOMACKS CASINO AND HOTEL Dollar amounts in thousands, except for share information (unaudited) (unaudited) Market Data YTD 2003 YTD 2004 Gross Gaming Revenue $10,457 $9,946 Market Share of Cripple Creek 15.3% 14.1% Market Average Number of Slot Machines 634 632 Average Win per Slot Machine per D
Slide 19: Womacks Operating Results and Management's Focus
WOMACKS CASINO AND HOTEL Operating Results and Management’s Focus Upgrade of facilities. The Company has committed approximately $3 million to upgrade the product mix on the gaming floor, improve the player tracking system and introduce cashless gaming machines. Competitors’ actions. The Compan
Slide 20: South African Segment: Caledon Hotel, Spa & Casino
CENTURY CASINOS, INC. South African Segment Caledon Hotel, Spa & Casino 290 slot machines 9 table games 92 hotel rooms 4 restaurants 2 bars conference facilities equestrian center approximately 340 employees South African Corporate Administration 20
Slide 21: Caledon Operating Results in USD (Second Quarter)
CALEDON HOTEL, SPA & CASINO Operating Results (in USD) Dollar amounts in thousands (unaudited (unaudited)) $3,500 $3,000 $2,500 $2,000 $1,500 $1,000 $500 $0 2nd Qtr 2003 2nd Qtr 2004 Net Operating Revenue $2,620 $3,407 Earnings from Operations $601 $761 Net Earnings $266 $483 EBITDA $757 $1,061 Ma
Slide 22: Caledon Operating Results in Rand (Second Quarter)
CALEDON HOTEL, SPA & CASINO Operating Results (in Rand) Rand amounts in thousands (unaudited (unaudited)) R 24,000 R 20,000 R 16,000 R 12,000 R 8,000 R 4,000 R0 2nd Qtr 2003 2nd Qtr 2004 Net Operating Revenue R 20,048 R 22,375 Earnings from Operations R 4,454 R 5,018 Net Earnings R 2,040 R 3,174 EBI
Slide 23: Caledon Market Data (Second Quarter)
CALEDON HOTEL, SPA & CASINO Dollar and Rand amounts in thousands, except for average win per day (unaudited (unaudited)) Market Data 2nd Qtr 2003 2nd Qtr 2004 Gross Gaming Revenue (in USD) $2,115 $2,946 Gross Gaming Revenue (in Rand) R16,176 R19,326 Average Number of Slot Machines 268 290 Average Wi
Slide 24: Caledon Operating Results in US Dollars (Year to Date)
CALEDON CASINO, HOTEL & SPA Operating Results (in US Dollars) Dollar amounts in thousands (unaudited) $6,900 $5,900 $4,900 $3,900 $2,900 $1,900 $900 ($100) YTD 2003 YTD 2004 Net Operating Revenue $5,027 $6,727 Earnings from Operations $1,144 $1,596 Net Earnings $487 $924 EBITDA $1,446 $1,120 Manag
Slide 25: Caledon Operating Results in Rand (Year to Date)
CALEDON CASINO, HOTEL & SPA Operating Results (in RAND) Rand amounts in thousands (unaudited) R 49,000 R 39,000 R 29,000 R 19,000 R 9,000 R -1,000 YTD 2003 YTD 2004 Net Operating Revenue R 39,915 R 44,670 Earnings from Operations R 9,058 R 10,611 Net Earnings R 3,842 R 6,131 EBITDA R 12,997 R 19,633
Slide 26: Caledon Market Data (Year to Date)
CALEDON HOTEL, SPA & CASINO Dollar and Rand amounts in thousands, except for average win per day (unaudited (unaudited)) Market Data YTD 2003 YTD 2004 Gross Gaming Revenue (in USD) $4,019 $5,724 Gross Gaming Revenue (in Rand) R31,899 R37,998 Average Number of Slot Machines 271 283 Average Win per S
Slide 27: Caledon Operating Results and Management's Focus
CALEDON HOTEL, SPA & CASINO Operating Results and Management’s Focus Conferences and trade shows held at the resort could play a significant role in the operation of the hotel, but have not done so recently. Management is attempting to gain additional exposure in this area through marketing effo
Slide 28: Cruise Ship Segment
CENTURY CASINOS Cruise Ship Segment Cruise Ships Silverseas (4 ships) 74 slot machines 14 table games 18 employees The World of ResidenSea 20 slot machines 3 table games 2 employees Oceania Cruises (3 ships) 114 slot machines 13 table games 15 employees 28
Slide 29: Cruise Ships Operating Results (Second Quarter)
CRUISE SHIPS Operating Results Dollar amounts in thousands (unaudited (unaudited)) $900 $800 $700 $600 $500 $400 $300 $200 $100 $0 ($100) 2nd Qtr 2003 2nd Qtr 2004 Net Operating Revenue $358 $833 Earnings from Operations $71 $273 Net Earnings $46 $265 EBITDA $93 $298 The Company experiences severe
Slide 30: Cruise Ships Operating Results (Year to Date)
CRUISE SHIPS Operating Results Dollar amounts in thousands, except for share information (unaudited) (unaudited) $1,500 $1,250 $1,000 $750 $500 $250 $0 YTD 2003 YTD 2004 Net Operating Revenue $688 $1,271 Earnings from Operations $172 $365 Net Earnings $109 $354 EBITDA $209 $407 The Company experie
Slide 31: Casino Millennium
CASINO MILLENNIUM Casino Millennium 38 slot machines 15 table games approximately 70 employees In January 2004, the Company acquired an additional 40% interest in Casino Millennium, bringing its total ownership to 50%. Casino Millennium operating results are accounted for under the equity me
Slide 32: Casino Millennium Operating Results (Second Quarter)
CASINO MILLENNIUM Operating Results Dollar and CZK amounts in thousands (unaudited (unaudited)) $700 CZK 18,000 $600 CZK 15,000 $500 CZK 12,000 $400 CZK 9,000 $300 $200 CZK 6,000 $100 CZK 3,000 $0 CZK 0 2nd Qtr 2004 2nd Qtr 2004 Net Operating Revenue $606 Net Operating Revenue CZK 15,955 Earnings fr
Slide 33: Casino Millennium Operating Results (Year to Date)
CASINO MILLENNIUM Operating Results Dollar and CZK amounts in thousands (unaudited (unaudited)) $1,250 CZK 37,500 $1,000 CZK 30,000 $750 CZK 22,500 $500 CZK 15,000 $250 CZK 7,500 $0 CZK 0 YTD 2004 YTD 2004 Net Operating Revenue $1,220 Net Operating Revenue CZK 32,261 Earnings from Operations $101 Ea
Slide 34: Potential Growth Opportunities
CENTURY CASINOS Potential Growth Opportunities In September 2003, Century Resorts Alberta, a 55% owned subsidiary of Century Resorts International, applied for a gaming license in Edmonton, Alberta, Canada. The proposed project, The Celebrations Casino and Hotel, is planned to include a casino,
Slide 35: Potential Growth Opportunities (continued)
CENTURY CASINOS Potential Growth Opportunities (continued) In Cripple Creek, having spanned the alley behind the existing casino, Womacks is positioned to continue building out the casino on a single level to the rear of the property to Meyers Avenue. This could result in Womacks having the larg