Century Casinos, Inc. · NASDAQ:CNTY
Century Casinos — Q1 2021 Earnings Presentation
32 slides from Century Casinos's earnings presentation, May 7, 2021
Slide 1: Century Casinos, Inc. Financial Results Q1 2021
CENTURY CASINOS, INC. Financial Results Q1 2021 CENTURY CASINOS 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: Notes on Presentation
Notes on Presentation In this presentation the term “USD” refers to US dollars, the term “CAD” refers to Canadian dollars and the term “PLN” refers to Polish zloty. Adjusted EBITDA and Adjusted EBITDA margin are non-GAAP financial measures. See Appendix A for the definition and reconciliation of Adj
Slide 4: COVID-19 Update
COVID-19 UPDATE In late 2019, an outbreak of COVID-19 was identified in China and has since spread throughout much of the world. The COVID-19 pandemic has had an adverse effect on the Company’s 2020 and first quarter 2021 results of operations and financial condition and the Company expects this sit
Slide 5: Net Operating Revenue by Reportable Segment and Operating Segment
Q1 2021 Net Operating Revenue by Reportable Segment and Operating Segment (in USD) Excluding Corporate and Other Reportable Segment Poland 8% Canada 3% United States 89% Missouri 43% Poland 8% Edmonton 2% Calgary 1% Colorado 13% West Virginia 33% CENTURY CASINOS 5
Slide 6: Earnings (Loss) from Operations by Reportable Segment and Operating Segment
Q1 2021 Earnings (Loss) from Operations by Reportable Segment and Operating Segment (in USD) Excluding Corporate and Other Reportable Segment Poland -32% Canada -37% United States 169% Poland -32% Edmonton -28% Calgary -9% Colorado 26% West Virginia 20% Missouri 123% CENTURY CASINOS 6
Slide 7: Net Earnings (Loss) Attributable to Shareholders by Segment
Q1 2021 Net Earnings (L oss ) Attributable to Century Casinos, Inc. Shareholders by Reportable Segment and Operating Segment (in USD) Excluding Corporate and Other Reportable Segment Poland -35% Canada -67% United States 202% Poland -35% Missouri 151% Edmonton -53% Calgary -14% Colorado 51% West Vir
Slide 8: Adjusted EBITDA by Reportable Segment and Operating Segment
Q1 2021 Adjusted EBITDA* by Reportable Segment and Operating Segment (in USD) Excluding Corporate and Other Reportable Segment Poland -15% Canada -15% United States 130% Missouri 91% Poland -15% Edmonton -12% Calgary -3% Colorado 18% West Virginia 21% *Adjusted EBITDA is a non-GAAP financial measure
Slide 9: Net Operating Revenue per Quarter
Net Operating Revenue per Quarter (in USD) In millions 120 100 80 60 40 20 0 Q1 36.4 40.6 45.6 87.7 72.4 Q2 37.3 39.6 52.4 36.1 Q3 41.0 43.6 52.9 95.7 Q4 39.3 45.1 67.2 84.8 2017 2018 2019 2020 2021 CENTURY CASINO 9
Slide 10: Balance Sheet
Balance Sheet (Selected Information in USD) In millions (except BVPS) March 31, 2021 December 31, 2020 Change Total Assets 673.8 680.8 (1%) Total Debt 184.4 184.6 – Book Value per Share* 3.99 3.99 – Net Debt** 127.3 130.4 *Book Value per Share is defined as total Century Casinos, Inc. shareholders’
Slide 11: Income Statement
Income Statement (Selected Information in USD) In million Q1 2021 Q1 2020 Change Net Operating Revenue 72.4 87.7 (17%) Earnings (Loss) from Operations 8.2 (31.8) 126% Net Loss Attributable to Century Casinos, Inc. Shareholders (1.4) (45.9) 97% Adjusted EBITDA* 14.7 9.6 53% Basic and Diluted Loss per
Slide 12: Debt and Net Debt to Adjusted EBITDA
Debt and Net Debt to Adjusted EBITDA* (in USD) As of March 31, 2021 and for the years ended December 31, 2013-2020 -2X -1X 0X 1X 2X 3X 4X 5X 6X 7X 8X 9X 2013 2.7X 0.5X 2014 3.0X 1.1X 2015 1.6X 0.3X 2016 2.2X 0.7X 2017 2.2X -0.7X 2018 2.5X 0.6X 201 9 6.8X 5.1X 20 20 7.9X 5.6X 202 1 6.3X 4.2X Debt to
Slide 13: Highlights – United States
Q1 2021 Highlights – UNITED STATES (Selected Information in USD) In millions Q1 2021 Q1 2020 Change Net Operating Revenue 64.4 53.4 21% Impairment – Intangible Assets – 29.6 (100%) Operating Costs and Expenses 46.8 78.5 (40%) Earnings (Loss) from Operations 17.5 (25.1) 170% Net Earnings (Loss) Attri
Slide 14: Highlights – Colorado
Q1 2021 Highlights – COLORADO (Selected Information in USD, in millions) Net Operating Revenue 0.0 2.0 4.0 6.0 8.0 10.0 12.0 Q1 8.1 6.7 9.4 Q2 8.8 2.0 Q3 9.2 10.4 Q4 7.8 9.5 2019 2020 2021 Adjusted EBITDA* 0.0 1.0 2.0 3.0 4.0 5.0 6.0 Q1 1.9 0.8 3.1 Q2 2.2 0.3 Q3 2.3 4.8 Q4 1.6 3.4 2019 2020 2021 As
Slide 15: Highlights – West Virginia
Q1 2021 Highlights – WEST VIRGINIA (Selected Information in USD, in millions) Net Operating Revenue 0.0 5.0 10.0 15.0 20.0 25.0 30.0 Q1 25.1 23.9 Q2 12.2 Q3 28.4 Q4** 8.7 24.5 2019 2020 2021 Adjusted EBITDA* -1.0 0.0 1.0 2.0 3.0 4.0 5.0 6.0 Q1 1.8 3.6 Q2 -0.5 Q3 4.8 Q4** 1.3 3.3 As of March 31, 2021
Slide 16: Highlights – Missouri
Q1 2021 Highlights – MISSOURI (Selected Information in USD, in millions) Net Operating Revenue 0.0 5.0 10.0 15.0 20.0 25.0 30.0 35.0 Q1 21.6 31.0 Q2 9.6 Q3 23.9 Q4** 7.4 24.5 2019 2020 2021 Adjusted EBITDA* 0.0 5.0 10.0 15.0 20.0 Q1 6.1 15.4 Q2 2.3 Q3 9.7 Q4** 2.6 10.4 2019 2020 2021 As of March 31,
Slide 17: Highlights – Canada
Q1 2021 Highlights – CANADA (Selected Information in CAD) In millions Q12021 Q12020 Change Net Operating Revenue 2.5 21.6 (88%) Impairment - Intangible Assets — 4.7 (100%) Operating Costs and Expenses 7.4 24.1 (69%) Losses from Operations (4.8) (2.6) (73%) Net Loss Attributable to Century Casinos, I
Slide 18: Highlights – Edmonton
Q1 2021 Highlights – Edmonton (Selected Information in CAD, in millions) Net Operating Revenue 0.0 5.0 10.0 15.0 20.0 Q1 11.8 13.1 1.3 Q2 18.5 3.9 Q3 17.9 13.5 Q4 16.6 10.2 2019 2020 2021 Adjusted EBITDA* -3.0 -2.0 -1.0 0.0 1.0 2.0 3.0 4.0 5.0 Q1 2.9 1.4 - 2.4 Q2 4.0 -0.2 Q3 3.5 3.2 Q4 3.9 2.5 As of
Slide 19: Highlights – Calgary
Q1 2021 Highlights – Calgary (Selected Information in CAD, in millions) Net Operating Revenue 0.0 2.0 4.0 6.0 8.0 10.0 12.0 Q1 9.9 8.5 1.2 Q2 10.9 2.6 Q3 11.2 8.6 Q4 10.2 6.4 2019 2020 2021 Adjusted EBITDA* -1.0 0.0 1.0 2.0 3.0 4.0 5.0 Q1 3.8 2.5 -0.7 Q2 3.9 0.0 Q3 2.9 2.7 Q4 3.2 2.8 2019 2020 2021
Slide 20: Highlights – Poland
Q1 2021 Highlights – POLAND (Selected Information in PLN) In millions Q1 2021 Q1 2020 Change Net Operating Revenue 22.4 66.6 (66%) Operating Costs and Expenses 35.0 65.5 (47%) (Loss) Earnings from Operations (12.6) 1.1 (1259%) Net (Loss) Earnings Attributable to Century Casinos, Inc. Shareholders (6
Slide 21: Highlights – Poland
Q1 2021 Highlights – POLAND (Selected Information in PLN, in millions) Net Operating Revenue 0.0 20.0 40.0 60.0 80.0 100.0 Q1 74.8 66.6 22.4 Q2 76.6 29.6 Q3 79.0 62.1 Q4 83.9 51.0 2019 2020 2021 Adjusted EBITDA* -15.0 -10.0 -5.0 0.0 5.0 10.0 15.0 Q1 9.3 4.1 -9.6 Q 2 7.6 -6.3 Q 3 9.6 3.8 Q 4 9.6 -0.9
Slide 22: Highlights – Corporate and Other
Q1 2021 Highlights – CORPORATE AND OTHER (Selected Information in USD) In millions Q1 2021 Q12020 Change Net Operating Revenue 0.1 1.0 (87%) Operating Costs and Expenses 2.2 6.3 (65%) Loss from Operations (2.1) (5.3) 60% Net Loss Attributable to Century Casinos, Inc. Shareholders (6.7) (7.3) 8% Adju
Slide 23: Appendix A – Abbreviations of Subsidiaries and Operating Segments
Appendix A – ABBREVIATIONS OF CENTURY CASINOS, INC. SUBSIDIARIES AND CERTAIN OPERATING SEGMENTS Subsidiary Abbreviation Century Casino & Hotel – Central City CTL Century Casino & Hotel – Cripple Creek CRC Mountaineer Casino, Racetrack & Resort MTR Century Casino Cape Girardeau CCG Century Casino Car
Slide 24: Appendix A – Non-GAAP Financial Measures
Appendix A – NON-GAAP FINANCIAL MEASURES The Company supplements its consolidated financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) by using the following non-GAAP financial measures, which management believes are useful in properly understanding
Slide 25: 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 and amortization, non-controlling interests net earnings (loss) and trans
Slide 26: Appendix A – Non-GAAP Financial Measures
Appendix A – NON-GAAP FINANCIAL MEASURES The Company defines Net Debt as total long-term debt (including current portion) plus deferred financing costs minus cash and cash equivalents. Net Debt is not considered a liquidity measure recognized under GAAP. Management believes that Net Debt is a valuab
Slide 27: Reconciliation of Adjusted EBITDA – United States
Appendix A – NON-GAAP FINANCIAL MEASURES Reconciliation of Adjusted EBITDA (in thousands) – UNITED STATES For the three months ended March 31, 2021 in USD Colorado West Virginia Missouri Total United States Net Operating Revenue $ 9,430 $ 23,941 $ 31,000 $ 64,371 Net earnings (loss) attributable to
Slide 28: Reconciliation of Adjusted EBITDA – Canada
Appendix A – NON-GAAP FINANCIAL MEASURES Reconciliation of Adjusted EBITDA (in thousands) – CANADA in CAD For the three months ended March 31, 2021 Edmonton Calgary Total Canada Net Operating Revenue $ 1,326 $ 1,214 $ 2,540 Net loss attributable to Century Casinos, Inc. shareholders (2,364) (924) (3
Slide 29: Reconciliation of Adjusted EBITDA – Poland
Appendix A – NON-GAAP FINANCIAL MEASURES Reconciliation of Adjusted EBITDA (in thousands) – POLAND in PLN For the three months ended March 31, 2021 2020 Net Operating Revenue PLN 22,354 PLN 66,582 Net (loss) earnings attributable to Century Casinos, Inc shareholders (6,872) 740 Interest expense (inc
Slide 30: Reconciliation of Adjusted EBITDA – Corporate and Other
Appendix A – NON-GAAP FINANCIAL MEASURES Reconciliation of Adjusted EBITDA (in thousands) – CORPORATE AND OTHER in USD For the three months ended March 31, 2021 2020 Net Operating Revenue $ 123 $ 980 Net loss attributable to Century Casinos, Inc. shareholders (6,666) (7,260) Interest expense (income
Slide 31: Reconciliation of Adjusted EBITDA Less Cash Payments on Master Lease
Appendix A – NON-GAAP FINANCIAL MEASURES Reconciliation of Adjusted EBITDA and Adjusted EBITDA Less Cash Payments on Master Lease Financing Obligation (in thousands) in USD Q2 2020 Q3 2020 Q4 2020 Q1 2021 Trailing 12-Month March 31, 2021 Trailing 12-Month December 31, 2020 Net (loss) earnings attrib
Slide 32: Reconciliation of Net Debt
Appendix A – NON-GAAP FINANCIAL MEASURES Reconciliation of Net Debt (in thousands) Amounts in thousands March 31, 2021 December 31, 2020 Total long-term debt, including current portion $ 184,421 $ 184,550 Deferred financing costs 8,869 9,261 Total principal $ 193,290 $ 193,811 Less: Cash and cash eq