Century Casinos, Inc. · NASDAQ:CNTY
Century Casinos — Q2 2016 Earnings Presentation
32 slides from Century Casinos's earnings presentation, Aug 5, 2016
Slide 1: Financial Results Q2 2016
Financial Results Q2 2016
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: Q2 2016 Results by Segment (in USD)
Q2 2016 Results by Segment (in USD)
Slide 4: Q2 2016 Results by Segment (in USD)
Q2 2016 Results by Segment (in USD)
Slide 5: Q2 2016 Results by Segment (in USD)
Q2 2016 Results by Segment (in USD) *Adjusted EBITDA is a non-GAAP financial measure. See Appendix A for the definition and reconciliation of Adjusted EBITDA.
Slide 6: Net Operating Revenue per Quarter (in USD)
Net Operating Revenue per Quarter (in USD)
Slide 7: Income Statement and Balance Sheet
Income Statement and Balance Sheet (Selected Information as of June 30, 2016) In USD mil (except EPS and BVPS) Q2 2016 Q2 2015 Change Net Operating Revenue 35.2 37.9 (7%) Net Earnings Attributable to Century Casinos, Inc. Shareholders 2.2 6.6 (66%) Adjusted EBITDA* 6.9 6.8 1% Earnings per Share 0.09
Slide 8: Constant Currency Results
Constant Currency Results** In USD millions Q2 2016 Q2 2015 Change Net Operating Revenue as reported (GAAP) 35.2 37.9 (7%) Foreign currency impact vs. 2015 1.3 Net Operating Revenue constant currency (non-GAAP)* 36.5 37.9 (4%) Net Earnings Attributable to Century Casinos, Inc. Shareholders as 2.2 6.
Slide 9: Debt to Adjusted EBITDA (in USD)
Debt to Adjusted EBITDA (in USD)
Slide 10: Q2 Highlights – Canada
Q2 Highlights – Canada (Selected Information as of June 30, 2016) In CAD mil Q2 2016 Q2 2015 Change Net Operating Revenue 17.0 16.4 4% Operating Costs and Expenses 12.3 11.1 10% Net Earnings Attributable to Century Casinos, 2.5 3.0 (14%) Inc. Shareholders Adjusted EBITDA* 5.7 5.9 (3%) Adjusted EBITD
Slide 11: Edmonton
Q2 Highlights – Canada (Selected Information as of June 30, 2016) Edmonton In CAD mil Q2 2016 Q2 2015 Change Net Operating Revenue 7.0 7.2 (2%) Operating Costs and Expenses 4.7 4.7 1% Net Earnings Attributable to Century Casinos, Inc. Shareholders 1.5 1.3 13% Adjusted EBITDA* 2.6 2.8 (7%) Adjusted E
Slide 12: Calgary
Q2 Highlights – Canada (Selected Information as of June 30, 2016) Calgary In CAD mil Q2 2016 Q2 2015 Change Net Operating Revenue 2.7 2.4 13% Operating Costs and Expenses 2.5 2.3 8% Net Earnings Attributable to Century Casinos, Inc. Shareholders 0.1 0.3 (54%) Adjusted EBITDA* 0.5 0.3 48% Adjusted EB
Slide 13: Century Downs Racetrack and Casino
Q2 Highlights – Canada (Selected Information as of June 30, 2016) Century Downs Racetrack and Casino In CAD mil Q2 2016 Q2 2015 Change Net Operating Revenue 5.7 5.8 (2%) Operating Costs and Expenses 3.8 3.5 9% Net Earnings Attributable to Century Casinos, Inc. Shareholders 0.8 1.2 (30%) Adjusted EBI
Slide 14: Century Bets
Q2 Highlights – Canada (Selected Information as of June 30, 2016) Century Bets In CAD mil Q2 2016 Q2 2015 Change Net Operating Revenue 1.6 1.0 58% Operating Costs and Expenses 1.3 0.7 94% Net Earnings Attributable to Century Casinos, Inc. Shareholders 0.1 0.2 (38%) Adjusted EBITDA* 0.2 0.3 (8%) Adju
Slide 15: Q2 Highlights – United States
Q2 Highlights – United States (Selected Information as of June 30, 2016) In USD mil Q2 2016 Q2 2015 Change Net Operating Revenue 7.7 7.2 7% Operating Costs and Expenses 6.4 6.1 4% Net Earnings Attributable to Century Casinos, 0.8 0.7 16% Inc. Shareholders Adjusted EBITDA* 2.0 1.7 15% Adjusted EBITDA
Slide 16: Central City
Q2 Highlights – United States (Selected Information as of June 30, 2016) Central City In USD mil Q2 2016 Q2 2015 Change Net Operating Revenue 4.7 4.3 10% Operating Costs and Expenses 3.9 3.6 7% Net Earnings Attributable to Century Casinos, Inc. Shareholders 0.5 0.4 28% Adjusted EBITDA* 1.2 1.0 18% A
Slide 17: Cripple Creek
Q2 Highlights – United States (Selected Information as of June 30, 2016) Cripple Creek In USD mil Q2 2016 Q2 2015 Change Net Operating Revenue 3.0 2.9 3% Operating Costs and Expenses 2.5 2.5 0% Net Earnings Attributable to Century Casinos, Inc. Shareholders 0.3 0.3 0% Adjusted EBITDA* 0.8 0.7 11% Ad
Slide 18: Q2 Highlights – Poland
Q2 Highlights – Poland (Selected Information as of June 30, 2016) In PLN mil Q2 2016 Q2 2015 Change Net Operating Revenue 52.5 47.6 10% Operating Costs and Expenses 47.3 43.4 9% Net Earnings Attributable to Century Casinos, 2.7 2.1 27% Inc. Shareholders Adjusted EBITDA* 7.6 6.6 16% Adjusted EBITDA M
Slide 19: Q2 Highlights – Corporate and Other
Q2 Highlights – Corporate and Other (Selected Information as of June 30, 2016) In USD mil Q2 2016 Q2 2015 Change Net Operating Revenue 0.8 4.5 (83%) Operating Costs and Expenses 2.6 3.1 (18%) Net (Loss) Earnings Attributable to Century (1.2) 3.1 (140%) Casinos, Inc. Shareholders Adjusted EBITDA* (1.
Slide 20: Cruise Ships and Other
Q2 Highlights – Corporate and Other (Selected Information as of June 30, 2016) Cruise Ships and Other In USD mil Q2 2016 Q2 2015 Change Net Operating Revenue 0.8 1.1 (32%) Operating Costs and Expenses 0.5 0.9 (41%) Net Earnings Attributable to Century Casinos, Inc. Shareholders 0.2 0.2 11% Adjusted
Slide 21: Corporate Other
Q2 Highlights – Corporate and Other (Selected Information as of June 30, 2016) Corporate Other In USD mil Q2 2016 Q2 2015 Change Net Operating Revenue 0.0 3.4 (100% Operating Costs and Expenses 2.0 2.2 (7%) Net (Loss) Earnings Attributable to Century Casinos, Inc. Shareholders (1.4) 2.9 (149%) Adjus
Slide 22: Additional Projects Under Development
Q2 Highlights – Additional Projects Under Development In June 2016, the Company announced that its subsidiary Century Casinos Europe GmbH (“CCE”) had entered into an agreement to acquire 100% of the issued and outstanding shares and related land of entities operating the Apex Casino (“Apex”) in subu
Slide 23: 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 24: 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 interest (earnings) losses and transaction
Slide 25: Appendix A (continued): Reconciliation of Adjusted EBITDA – Canada
Appendix A (continued) Reconciliation of Adjusted EBITDA – Canada (in thousands) For the three months ended June 30, 2016 in CAD Amounts in thousands Edmonton Calgary Century Downs Century Bets Total Canada Net operating revenue $ 7,007 $ 2,724 $ 5,684 $ 1,554 $ 16,969 Net earnings (loss) attributab
Slide 26: Appendix A (continued): Reconciliation of Adjusted EBITDA – United States
Appendix A (continued) Reconciliation of Adjusted EBITDA – United States (in thousands) For the three months ended June 30, 2016 in USD Amounts in thousands Central City Cripple Creek Total United States Net operating revenue $ 4,690 $ 3,013 $ 7,703 Net earnings attributable to Century Casinos, Inc.
Slide 27: Appendix A (continued): Reconciliation of Adjusted EBITDA – Poland
Appendix A (continued) Reconciliation of Adjusted EBITDA – Poland (in thousands) For the three months ended June 30, 2016 in PLN Amounts in thousands Poland Net operating revenue 52,502 Net earnings attributable to Century Casinos, Inc. shareholders 2,714 Interest expense (income), net 31 Income tax
Slide 28: Appendix A (continued): Reconciliation of Adjusted EBITDA – Corporate and Other
Appendix A (continued) Reconciliation of Adjusted EBITDA – Corporate and Other (in thousands) For the three months ended June 30, 2016 in USD Cruise Ships Corporate Total Corporate Amounts in thousands and Other Other and Other Net operating revenue $ 761 $ 0 $ 761 Net earnings (loss) attributable t
Slide 29: Appendix B: Results Net of Earnings from Termination Agreement with Norwegian
Appendix B Results Net of Earnings from Termination Agreement with Norwegian In USD millions Q2 2016 Q2 2015 Change Net Operating Revenue as reported (GAAP) 35.2 37.9 (7%) Less: Earnings from Termination Agreement (3.4) Foreign currency impact vs. 2015 1.3 Net Operating Revenue constant currency (no
Slide 30: Appendix B (continued): Results Net of Earnings from Termination Agreement
Appendix B (continued) Results Net of Earnings from Termination Agreement with Norwegian In USD millions Q2 2016 Q2 2015 Change Net Earnings Attributable to Century Casinos, Inc. Shareholders as 2.2 6.6 (66%) reported (GAAP) Less: Earnings from Termination Agreement (3.3) Foreign currency impact vs.
Slide 31: Appendix C: Unaudited Results – Apex
Appendix C Unaudited Results – Apex (Selected Information as of June 30, 2016) Apex* Year End 2016** Year End 2015** In CAD mil (Unaudited) (Unaudited) Net Operating Revenue 11.3 11.0 3% Operating Costs and Expenses 7.9 8.7 (10%) Net Earnings 2.7 1.7 60% EBITDA 4.8 4.0 20% *The 2016 and 2015 year-en
Slide 32: Appendix C: Reconciliation of Adjusted EBITDA – Apex
Appendix C Reconciliation of Adjusted EBITDA – Apex* (in thousands) in CAD For the year For the year ended June 30, ended June 30, Amounts in thousands 2016 2015 Net operating revenue $ 11,287 $ 10,973 Net earnings 2,747 1,713 Interest expense (income), net 126 143 Income taxes (benefit) 688 520 Dep