Century Casinos, Inc. · NASDAQ:CNTY
Century Casinos — FY2017 Earnings Presentation
35 slides from Century Casinos's earnings presentation, 2018
Slide 1: Century Casinos Financial Results 2017
CENTURY CASINOS Financial Results 2017 1
Slide 2: Forward-Looking Statements, Business Environment and Risk Factors
Forward-Looking Statements, Business Environment and Risk Factors This presentation may contain “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 (the “Exchange Act”), and the Priva
Slide 3: Forward-Looking Statements, Business Environment and Risk Factors continued
Forward-Looking Statements, Business Environment and Risk Factors continued In this presentation the term “USD” refers to US dollars, the term “CAD” refers to Canadian dollars, the term “PLN” refers to Polish zloty and the term “GBP” refers to the British pound. Adjusted EBITDA and Adjusted EBITDA m
Slide 4: 2017 Net Operating Revenue by Reportable Segment and Operating Segment
2017 Net Operating Revenue by Reportable Segment and Operating Segment (in USD) Excluding Corporate Other Operating Segment Corporate and Other 3% Canada 37% Poland 39% Ships & SCCL Other CRA 0% 3% 13% CSA 6% CPL CAL 39% 5% CDR 11% CBS 2% CMR United States CRC CTL 0% 21% 8% 13% 4
Slide 5: 2017 Earnings from Operations by Reportable Segment and Operating Segment
2017 Earnings from Operations by Reportable Segment and Operating Segment (in USD) Excluding Corporate Other Operating Segment Corporate and Other Poland 2% 11% United States 24% Ships & SCCL, -1% Other 3% CPL 11% CRA 30% Canada 63% CRC 12% CTL 12% CSA 10% CMR 0% CAL -1% CBS 1% CDR 23% 5
Slide 6: 2017 Net Income Attributable to Century Casinos Shareholders
2017 Net Income Attributable to Century Casinos, Inc. Shareholders by Reportable Segment and Operating Segment (in USD) Excluding Corporate Other Operating Segment Corporate and Other Poland 2% 10% United States 27% SCCL Ships & -2% Other 4% CPL 10% Canada CRA 36% 61% CRC 13% CTL 14% CSA 9% CMR 0% C
Slide 7: 2017 Adjusted EBITDA by Reportable Segment and Operating Segment
2017 Adjusted EBITDA* by Reportable Segment and Operating Segment (in USD) Excluding Corporate Other Operating Segment Corporate and Other 3% Poland 19% Ships & SCCL Other Canada 0% 3% CPL CRA 54% 19% 23% United States 24% CSA CRC 11% 8% CAL 1% CTL 13% CMR CBS CDR 0% 1% 21% *Adjusted EBITDA is a non
Slide 8: Net Operating Revenue per Quarter
Net Operating Revenue per Quarter (in USD) 45.0 41.0 39.3 40.0 37.9 37.3 36.4 36.3 35.2 34.5 35.0 33.2 33.5 31.6 31.3 31.9 30.4 29.1 28.8 28.1 29.4 30.0 28.3 25.0 In millions 20.0 18.0 15.0 10.0 5.0 0.0 Q1 Q2 Q3 Q4 2013 2014 2015 2016 2017 8
Slide 9: Balance Sheet
Balance Sheet (Selected Information in USD) In millions (except BVPS) December 31, 2017 December 31, 2016 Change Total Assets 274.9 217.8 26% Book Value per Share* 6.13 5.41 13% Net Debt** (17.7) 17.2 (203%) *Book Value per Share is defined as total Century Casinos, Inc. shareholders’ equity divided
Slide 10: Income Statement
Income Statement (Selected Information in USD) In millions (except EPS) 2017 2016 Change Net Operating Revenue 154.1 139.2 11% Earnings from Operations 14.6 16.2 (10%) Income Tax Expense 4.6 1.8 156% Net Earnings Attributable to Century Casinos, Inc. Shareholders 6.3 9.2 (32%) Adjusted EBITDA* 26.1
Slide 11: Constant Currency Results
Constant Currency Results (in USD) In millions 2017 2016 Change Net Operating Revenue as reported (GAAP) 154.1 139.2 11% Foreign currency impact vs. 2016 (3.9) Net Operating Revenue constant currency (non-GAAP)* 150.1 139.2 8% Earnings from Operations as reported (GAAP) 14.6 16.2 (10%) Foreign curre
Slide 12: Constant Currency Results
Constant Currency Results (in USD) In millions 2017 2016 Change Net Earnings Attributable to Century Casinos, Inc. Shareholders as reported (GAAP) 6.3 9.2 (32%) Foreign currency impact vs. 2016 0.0 Net Earnings Attributable to Century Casinos, Inc. Shareholders constant currency (non-GAAP)* 6.2 9.2
Slide 13: Debt to Adjusted EBITDA
Debt to Adjusted EBITDA* (in USD) As of December 31, 2009-2017 4x 3.0x 3x 2.7x 2.2x 2.2x 2.0x 2x 1.7x 1.6x 1x 0.8x 0.3x 0x 2009 2010 2011 2012 2013 2014 2015 2016 2017 *Debt to Adjusted EBITDA is calculated by dividing the Company’s trailing twelve-month Adjusted EBITDA by the principal amount of ou
Slide 14: 2017 Highlights – Canada
2017 Highlights – CANADA (Selected Information in CAD) In millions 2017 2016 Change Net Operating Revenue 74.8 66.5 13% Operating Costs and Expenses 55.9 49.1 14% Earnings from Operations 18.9 17.5 8% Income Tax Expense 3.9 1.0 275% Net Earnings Attributable to Century Casinos, Inc. Shareholders 10.
Slide 15: Highlights – Canada: Century Resorts Alberta
2017 Highlights – CANADA (Selected Information in CAD) CENTURY RESORTS ALBERTA In millions 2017 2016 Change Net Operating Revenue 27.5 28.6 (4%) Operating Costs and Expenses 18.8 19.7 (4%) Earnings from Operations 8.7 8.9 (3%) Net Earnings Attributable to Century Casinos, Inc. Shareholders 6.0 5.8 5
Slide 16: Highlights – Canada: Century Casino St. Albert
2017 Highlights – CANADA (Selected Information in CAD) CENTURY CASINO ST. ALBERT In millions 2017 2016* Change Net Operating Revenue 11.4 2.7 323% Operating Costs and Expenses 8.3 2.0 324% Earnings from Operations 3.1 0.7 319% Net Earnings Attributable to Century Casinos, Inc. Shareholders 1.6 0.3 3
Slide 17: Highlights – Canada: Century Casino Calgary
2017 Highlights – CANADA (Selected Information in CAD) CENTURY CASINO CALGARY In millions 2017 2016 Change Net Operating Revenue 9.9 10.1 (2%) Operating Costs and Expenses 10.3 9.8 5% (Loss) Earnings from Operations (0.3) 0.3 (218%) Net (Loss) Earnings Attributable to Century Casinos, Inc. Sharehold
Slide 18: Highlights – Canada: Century Downs Racetrack and Casino
2017 Highlights – CANADA (Selected Information in CAD) CENTURY DOWNS RACETRACK AND CASINO In millions 2017 2016 Change Net Operating Revenue 22.5 21.2 6% Operating Costs and Expenses 15.3 14.1 9% Earnings from Operations 7.2 7.0 2% Net Earnings Attributable to Century Casinos, Inc. Shareholders 2.8
Slide 19: 2017 Highlights – United States
2017 Highlights – UNITED STATES (Selected Information in USD) In millions 2017 2016 Change Net Operating Revenue 32.2 30.1 7% Operating Costs and Expenses 26.6 25.4 4% Earnings from Operations 5.6 4.7 20% Income Tax Expense 2.1 1.8 18% Net Earnings Attributable to Century Casinos, Inc. Shareholders
Slide 20: Highlights – United States: Central City
2017 Highlights – UNITED STATES (Selected Information in USD) CENTRAL CITY In millions 2017 2016 Change Net Operating Revenue 19.2 18.0 7% Operating Costs and Expenses 16.3 15.3 7% Earnings from Operations 2.9 2.6 9% Net Earnings Attributable to Century Casinos, Inc. Shareholders 1.8 1.6 9% Adjusted
Slide 21: Highlights – United States: Cripple Creek
2017 Highlights – UNITED STATES (Selected Information in USD) CRIPPLE CREEK In millions 2017 2016 Change Net Operating Revenue 12.9 12.2 6% Operating Costs and Expenses 10.2 10.1 1% Earnings from Operations 2.7 2.1 32% Net Earnings Attributable to Century Casinos, Inc. Shareholders 1.7 1.3 35% Adjus
Slide 22: 2017 Highlights – Poland
2017 Highlights – POLAND (Selected Information in PLN) In millions 2017 2016 Change Net Operating Revenue 225.5 216.5 4% Operating Costs and Expenses 215.1 195.3 10% Earnings from Operations 10.4 21.2 (51%) Income Tax Expense 5.2 5.0 6% Net Earnings Attributable to Century Casinos, Inc. Shareholders
Slide 23: 2017 Highlights – Corporate and Other
2017 Highlights – CORPORATE AND OTHER (Selected Information in USD) In millions 2017 2016 Change Net Operating Revenue 4.4 4.0 10% Operating Costs and Expenses 12.6 11.1 13% Loss from Operations (8.2) (7.1) (15%) Income Tax Benefit (2.0) (2.1) 6% Net Loss Attributable to Century Casinos, Inc. Shareh
Slide 24: Highlights – Corporate and Other: Cruise Ships and Other
2017 Highlights – CORPORATE AND OTHER (Selected Information in USD) CRUISE SHIPS AND OTHER In millions 2017 2016 Change Net Operating Revenue 4.4 4.0 10% Operating Costs and Expenses 3.8 3.1 21% Earnings from Operations 0.6 0.9 (27%) Net Earnings Attributable to Century Casinos, Inc. Shareholders 0.
Slide 25: Highlights – Additional Projects Under Development
2017 Highlights – ADDITIONAL PROJECTS UNDER DEVELOPMENT Saw Close Casino Ltd. In June 2017, the Company acquired 100% of the outstanding common stock and the casino licenses held by Saw Close Casino Ltd. (“SCCL”). The Company plans to utilize the casino licenses to develop and operate a casino in Ba
Slide 26: Appendix A – Abbreviations of Century Casinos Subsidiaries and Operating Segments
Appendix A – ABBREVIATIONS OF CENTURY CASINOS, INC. SUBSIDIARIES AND CERTAIN OPERATING SEGMENTS Subsidiary Abbreviation Century Casino & Hotel - Edmonton CRA Century Casino Calgary CAL Century Downs Racetrack and Casino CDR Century Bets! CBS Century Mile Racetrack and Casino CMR Century Casino & Hot
Slide 27: Appendix A – Non-GAAP Financial Measures
Appendix A – NON-GAAP FINANCIAL MEASURES The Company supplements its condensed consolidated financial statements prepared in accordance with U.S. generally accepted accounting principles (“US GAAP”) by using the following non-GAAP financial measures, which management believes are useful in properly
Slide 28: Appendix A – Non-GAAP Financial Measures
Appendix A – 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, amortization, non- controlling interests (earnings) losses and transacti
Slide 29: Appendix A – Non-GAAP Financial Measures
Appendix A – NON-GAAP FINANCIAL MEASURES The impact of foreign exchange rates is highly variable and difficult to predict. The Company uses a Constant Currency basis to show the impact from foreign exchange rates on current period revenue compared to prior period revenue using the prior period’s for
Slide 30: Appendix A – Reconciliation – Canada 2017
Appendix A – NON-GAAP FINANCIAL MEASURES Reconciliation of Adjusted EBITDA (in thousands) - CANADA For the year ended December 31, 2017 in CAD CRA CSA CAL CDR CBS CMR Total Canada Net operating revenue $ 27,514 $ 11,401 $ 9,929 $ 22,509 $ 3,468 $ 0 $ 74,821 Net earnings (loss) attributable to Centur
Slide 31: Appendix A – Reconciliation – Canada continued 2016
Appendix A – NON-GAAP FINANCIAL MEASURES Reconciliation of Adjusted EBITDA (in thousands) – CANADA continued For the year ended December 31, 2016 in CAD CRA CSA CAL CDR CBS CMR Total Canada Net operating revenue $ 28,621 $ 2,696 $ 10,092 $ 21,153 $ 3,969 $ 0 $ 66,531 Net earnings (loss) attributable
Slide 32: Appendix A – Reconciliation – United States
Appendix A – NON-GAAP FINANCIAL MEASURES Reconciliation of Adjusted EBITDA (in thousands) – UNITED STATES For the year ended December 31, 2017 Total United in USD Central City Cripple Creek States Net operating revenue $ 19,211 $ 12,943 $ 32,154 Net earnings (loss) attributable to Century Casinos, I
Slide 33: Appendix A – Reconciliation – Poland
Appendix A – NON-GAAP FINANCIAL MEASURES Reconciliation of Adjusted EBITDA (in thousands) – POLAND For the year ended December 31, in PLN 2017 2016 Net operating revenue PLN 225,476 PLN 216,516 Net earnings (loss) attributable to Century Casinos, Inc. shareholders 4,090 11,348 Interest expense (inco
Slide 34: Appendix A – Reconciliation – Corporate and Other
Appendix A – NON-GAAP FINANCIAL MEASURES Reconciliation of Adjusted EBITDA (in thousands) – CORPORATE AND OTHER For the year ended December 31, 2017 Cruise Ships and Total Corporate in USD Other Saw Close Casino Corporate Other Other Net operating revenue $ 4,387 $ 0 $ 0 $ 4,387 Net earnings (loss)
Slide 35: Reconciliation of Net Debt
Appendix A – NON-GAAP FINANCIAL MEASURES Reconciliation of Net Debt (in thousands) December 31, 2017 December 31, 2016 Amounts in thousands Total long-term debt, including current portion $ 56,713 $ 55,609 Deferred financing costs 258 412 Total principal $ 56,971 $ 56,021 Less: cash and cash equival