Century Casinos, Inc. · NASDAQ:CNTY
Century Casinos — Q2 2017 Earnings Presentation
32 slides from Century Casinos's earnings presentation, Aug 7, 2017
Slide 1: Century Casinos Financial Results Q2 2017
CENTURY CASINOS Financial Results Q2 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: Q2 2017 Net Operating Revenue by Segment
Q2 2017 Net Operating Revenue by Reportable Segment and Operating Segment (in USD) Excluding Corporate and Other Operating Segment Ships & Other 3% Canada 38% Poland 38% Ships & Other CRA 3% 14% CSA 6% CPL CAL 38% 5% CDR 11% CBS 2% United States CTL CRC 21% 13% 8% 3
Slide 4: Q2 2017 Earnings from Operations
Q2 2017 Earnings from Operations by Reportable Segment and Operating Segment (in USD) Excluding Corporate and Other Operating Segment Ships & Other 4% Poland 11% United States Ships & 23% Other 4% CPL 11% CRA 28% Canada 62% CRC 11% CTL 12% CSA 10% CBS 2% CAL -4% CDR 26% 4
Slide 5: Q2 2017 Net Income Attributable to Century Casinos Shareholders
Q2 2017 Net Income Attributable to Century Casinos, Inc. Shareholders by Reportable Segment and Operating Segment (in USD) Excluding Corporate and Other Operating Segment Ships & Other 7% Poland 13% Ships & Canada Other 7% 55% CPL 13% CRA 31% United States 25% CRC 12% CSA 8% CTL 13% CAL -6% CBS 2% C
Slide 6: Q2 2017 Adjusted EBITDA
Q2 2017 Adjusted EBITDA* by Reportable Segment and Operating Segment (in USD) Excluding Corporate and Other Operating Segment Ships & Other 4% Poland 19% Ships & Other Canada 4% CRA 54% CPL 22% 19% United States CSA 23% CRC 8% 11% CAL -1% CTL CDR 12% CBS 22% 1% *Adjusted EBITDA is a non-GAAP financi
Slide 7: Net Operating Revenue per Quarter
Net Operating Revenue per Quarter (in USD) 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 20.0 18.0 15.0 10.0 5.0 0.0 Q1 Q2 Q3 Q4 2013 2014 2015 2016 2017 7
Slide 8: Balance Sheet
Balance Sheet (Selected Information in USD) In millions (except BVPS) June 30, 2017 December 31, 2016 Change Total Assets 223.6 217.8 3% Book Value per Share* 5.72 5.41 6% Net Debt** 16.2 17.2 (6%) *Book Value per Share is defined as total Century Casinos, Inc. shareholders’ equity divided by outsta
Slide 9: Income Statement
Income Statement (Selected Information in USD) In millions (except EPS) Q2 2017 Q2 2016 Change Net Operating Revenue 37.3 35.2 6% Earnings from Operations 3.6 4.5 (20%) Net Earnings Attributable to Century Casinos, Inc. Shareholders 1.8 2.2 (20%) Adjusted EBITDA* 6.4 6.9 (7%) Basic Earnings per Shar
Slide 10: Constant Currency Results
Constant Currency Results (in USD) In millions Q2 2017 Q2 2016 Change Net Operating Revenue as reported (GAAP) 37.3 35.2 6% Foreign currency impact vs. 2016 0.5 Net Operating Revenue constant currency (non- GAAP)* 37.8 35.2 7% Earnings from Operations as reported (GAAP) 3.6 4.5 (20%) Foreign currenc
Slide 11: Constant Currency Results
Constant Currency Results (in USD) In millions Q2 2017 Q2 2016 Change Net Earnings Attributable to Century Casinos, Inc. Shareholders as reported (GAAP) 1.8 2.2 (20%) Foreign currency impact vs. 2016 0.1 Net Earnings Attributable to Century Casinos, Inc. Shareholders constant currency (non-GAAP)* 1.
Slide 12: Debt to Adjusted EBITDA
Debt to Adjusted EBITDA* (in USD) As of June 30, 2017 and December 31, 2009-2016 4x 3.0x 3x 2.7x 2.2x 2.1x 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 prin
Slide 13: Q2 Highlights – Canada
Q2 Highlights – CANADA (Selected Information in CAD) In millions Q2 2017 Q2 2016 Change Net Operating Revenue 18.9 17.0 11% Operating Costs and Expenses 14.0 12.3 14% Earnings from Operations 4.9 4.7 5% Net Earnings Attributable to Century Casinos, Inc. Shareholders 2.6 2.5 4% Adjusted EBITDA* 6.1 5
Slide 14: Q2 Highlights – Canada: Century Resorts Alberta
Q2 Highlights – CANADA (Selected Information in CAD) CENTURY RESORTS ALBERTA In millions Q2 2017 Q2 2016 Change Net Operating Revenue 6.9 7.0 (2%) Operating Costs and Expenses 4.7 4.7 0% Earnings from Operations 2.1 2.3 (7%) Net Earnings Attributable to Century Casinos, Inc. Shareholders 1.5 1.5 2%
Slide 15: Q2 Highlights – Canada: Century Casino St. Albert
Q2 Highlights – CANADA (Selected Information in CAD) CENTURY CASINO ST. ALBERT In millions Q2 2017 Q2 2016* Change Net Operating Revenue 2.9 - 100% Operating Costs and Expenses 2.0 - 100% Earnings from Operations 0.8 - 100% Net Earnings Attributable to Century Casinos, Inc. Shareholders 0.4 - 100% A
Slide 16: Q2 Highlights – Canada: Century Casino Calgary
Q2 Highlights – CANADA (Selected Information in CAD) CENTURY CASINO CALGARY In millions Q2 2017 Q2 2016 Change Net Operating Revenue 2.3 2.7 (14%) Operating Costs and Expenses 2.6 2.5 8% Earnings from Operations (0.3) 0.3 (211%) Net Earnings Attributable to Century Casinos, Inc. Shareholders (0.2) 0
Slide 17: Q2 Highlights – Canada: Century Downs Racetrack and Casino
Q2 Highlights – CANADA (Selected Information in CAD) CENTURY DOWNS RACETRACK AND CASINO In millions Q2 2017 Q2 2016 Change Net Operating Revenue 5.8 5.7 3% Operating Costs and Expenses 3.8 3.8 (2%) Earnings from Operations 2.1 1.8 12% Net Earnings Attributable to Century Casinos, Inc. Shareholders 0
Slide 18: Q2 Highlights – United States
Q2 Highlights – UNITED STATES (Selected Information in USD) In millions Q2 2017 Q2 2016 Change Net Operating Revenue 7.9 7.7 3% Operating Costs and Expenses 6.6 6.4 4% Earnings from Operations 1.3 1.3 0% Net Earnings Attributable to Century Casinos, Inc. Shareholders 0.8 0.8 0% Adjusted EBITDA* 2.0
Slide 19: Q2 Highlights – United States: Central City
Q2 Highlights – UNITED STATES (Selected Information in USD) CENTRAL CITY In millions Q2 2017 Q2 2016 Change Net Operating Revenue 4.8 4.7 3% Operating Costs and Expenses 4.1 3.9 6% Earnings from Operations 0.7 0.8 (13%) Net Earnings Attributable to Century Casinos, Inc. Shareholders 0.5 0.5 (12%) Ad
Slide 20: Q2 Highlights – United States: Cripple Creek
Q2 Highlights – UNITED STATES (Selected Information in USD) CRIPPLE CREEK In millions Q2 2017 Q2 2016 Change Net Operating Revenue 3.1 3.0 4% Operating Costs and Expenses 2.5 2.5 0% Earnings from Operations 0.6 0.5 21% Net Earnings Attributable to Century Casinos, Inc. Shareholders 0.4 0.3 21% Adjus
Slide 21: Q2 Highlights – Poland
Q2 Highlights – POLAND (Selected Information in PLN) In millions Q2 2017 Q2 2016 Change Net Operating Revenue 54.9 52.5 5% Operating Costs and Expenses 52.3 47.3 11% Earnings from Operations 2.5 5.2 (52%) Net Earnings Attributable to Century Casinos, Inc. Shareholders 1.3 2.7 (53%) Adjusted EBITDA*
Slide 22: Q2 Highlights – Corporate and Other
Q2 Highlights – CORPORATE AND OTHER (Selected Information in USD) In millions Q2 2017 Q2 2016 Change Net Operating Revenue 1.1 0.8 39% Operating Costs and Expenses 3.0 2.6 20% Earnings from Operations (2.0) (1.8) (11%) Net Earnings Attributable to Century Casinos, Inc. Shareholders (1.3) (1.2) (7%)
Slide 23: Q2 Highlights – Cruise Ships and Other
Q2 Highlights – CORPORATE AND OTHER (Selected Information in USD) CRUISE SHIPS AND OTHER In millions Q2 2017 Q2 2016 Change Net Operating Revenue 1.1 0.8 39% Operating Costs and Expenses 0.8 0.5 50% Earnings from Operations 0.2 0.2 12% Net Earnings Attributable to Century Casinos, Inc. Shareholders
Slide 24: Additional Projects Under Development
Q2 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 Bath
Slide 25: 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 26: 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 transactio
Slide 27: 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 28: Appendix A – Reconciliation – Canada
Appendix A – NON-GAAP FINANCIAL MEASURES Reconciliation of Adjusted EBITDA (in thousands) - CANADA For the three months ended June 30, 2017 in CAD CRA CSA CAL CDR CBS Total Canada Net operating revenue $ 6,853 $ 2,862 $ 2,340 $ 5,834 $ 995 $ 18,884 Net earnings (loss) attributable to Century Casinos
Slide 29: Appendix A – Reconciliation – United States
Appendix A – NON-GAAP FINANCIAL MEASURES Reconciliation of Adjusted EBITDA (in thousands) – UNITED STATES For the three months ended June 30, 2017 Total United in USD Central City Cripple Creek States Net operating revenue $ 4,814 $ 3,129 $ 7,943 Net earnings (loss) attributable to Century Casinos,
Slide 30: Appendix A – Reconciliation – Poland
Appendix A – NON-GAAP FINANCIAL MEASURES Reconciliation of Adjusted EBITDA (in thousands) – POLAND For the three months ended June 30, in PLN 2017 2016 Net operating revenue PLN 54,851 PLN 52,502 Net earnings (loss) attributable to Century Casinos, Inc. shareholders 1,280 2,714 Interest expense (inc
Slide 31: Appendix A – Reconciliation – Corporate and Other
Appendix A – NON-GAAP FINANCIAL MEASURES Reconciliation of Adjusted EBITDA (in thousands) – CORPORATE AND OTHER For the three months ended June 30, 2017 Cruise Ships and Total Corporate in USD Other Corporate Other Other Net operating revenue $ 1,060 $ 0 $ 1,060 Net earnings (loss) attributable to C
Slide 32: Appendix A – Reconciliation of Net Debt
Appendix A – NON-GAAP FINANCIAL MEASURES Reconciliation of Net Debt (in thousands) June 30, 2017 December 31, 2016 Amounts in thousands Total long-term debt, including current portion $ 54,675 $ 55,609 Deferred financing costs 310 412 Total principal $ 54,985 $ 56,021 Less: cash and cash equivalents