Century Casinos, Inc. · NASDAQ:CNTY
Century Casinos — FY2018 Earnings Presentation
37 slides from Century Casinos's earnings presentation, 2019
Slide 1: Century Casinos Financial Results 2018
CENTURY CASINOS Financial Results 2018 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: 2018 Net Operating Revenue by Reportable Segment and Operating Segment
2018 Net Operating Revenue by Reportable Segment and Operating Segment (in USD) Excluding Corporate Other Operating Segment CCB, Ships & Other 4% Canada 36% Poland Ships & CCB Other 40% 2% 2% CRA 13% CSA 5% CAL 5% CPL 40% CDR 12% CBS 1% CMR United States CTL 0% 20% CRC 12% 8% 4
Slide 5: 2018 Earnings from Operations by Reportable Segment and Operating Segment
2018 Earnings from Operations by Reportable Segment and Operating Segment (in USD) Excluding Corporate Other Operating Segment CCB, Ships & Other -12% Poland 1% United States 32% Ships & Other 2% CCB -14% CPL 1% CRA 34% CRC 18% Canada 79% CTL 14% CSA 14% CAL 0% CMR -9% CBS 1% CDR 39% 5
Slide 6: 2018 Net Income by Reportable Segment and Operating Segment
2018 Net Income Attributable to Century Casinos, Inc. Shareholders by Reportable Segment and Operating Segment (in USD) Excluding Corporate Other Operating Segment CCB, Ships & Other -18% Poland -2% Ships & CCB Other 3% Canada -21% 77% United States CRA 45% 43% CPL -2% CRC 24% CSA 11% CTL 19% CAL 0%
Slide 7: 2018 Adjusted EBITDA by Reportable Segment and Operating Segment
2018 Adjusted EBITDA* by Reportable Segment and Operating Segment (in USD) Excluding Corporate Other Operating Segment CCB, Ships & Other, -4% Poland, 16% Ships & CCB Other -6% 2% CRA CPL 23% Canada, 62% 16% United States, 26% CSA CRC 9% 13% CAL 2% CTL 13% CMR CBS CDR 0% 1% 27% *Adjusted EBITDA is a
Slide 8: Net Operating Revenue per Quarter
Net Operating Revenue per Quarter (in USD) 50 45.1 45 43.6 40.6 41.0 39.6 39.3 40 37.9 37.3 36.4 36.3 35.2 34.5 35 33.2 33.5 30.4 31.6 31.3 31.9 29.1 30 28.1 25 20 15 10 5 0 Q1 Q2 Q3 Q4 2014 2015 2016 2017 2018 8
Slide 9: Balance Sheet
Balance Sheet (Selected Information in USD) In millions (except BVPS) December 31, 2018 December 31, 2017 Change Total Assets 278.8 274.9 1% Total Debt 59.5 56.7 5% Book Value per Share* 6.00 6.13 (2%) Net Debt** 14.4 (17.7) *Book Value per Share is defined as total Century Casinos, Inc. shareholder
Slide 10: Income Statement
Income Statement (Selected Information in USD) In millions (except EPS) 2018 2017 Change Net Operating Revenue 168.9 154.1 10% Earnings from Operations 9.5 14.6 (35%) Net Earnings Attributable to Century Casinos, Inc. Shareholders 3.4 6.3 (46%) Adjusted EBITDA* 23.4 26.1 (10%) Basic Earnings per Sha
Slide 11: Constant Currency Results
Constant Currency Results (in USD) In millions 2018 2017 Change Net Operating Revenue as reported (GAAP) 168.9 154.1 10% Foreign currency impact vs. 2017 (3.0) Net Operating Revenue constant currency (non-GAAP)* 166.0 154.1 8% Earnings from Operations as reported (GAAP) 9.5 14.6 (35%) Foreign curren
Slide 12: Constant Currency Results
Constant Currency Results (in USD) In millions 2018 2017 Change Net Earnings Attributable to Century Casinos, Inc. Shareholders as reported (GAAP) 3.4 6.3 (46%) Foreign currency impact vs. 2017 0.1 Net Earnings Attributable to Century Casinos, Inc. Shareholders constant currency (non-GAAP)* 3.5 6.3
Slide 13: Debt to Adjusted EBITDA
Debt to Adjusted EBITDA* (in USD) As of and for the years ended December 31, 2010-2018 4x 3.0x 3x 2.7x 2.5x 2.2x 2.2x 2x 1.7x 1.6x 1x 0.8x 0.3x 0x 2010 2011 2012 2013 2014 2015 2016 2017 2018 *Debt to Adjusted EBITDA is calculated by dividing the Company’s trailing twelve-month Adjusted EBITDA by th
Slide 14: 2018 Highlights – Canada
2018 Highlights – CANADA (Selected Information in CAD) In millions 2018 2017 Change Net Operating Revenue 79.6 74.8 6% Operating Costs and Expenses 60.6 55.9 8% Earnings from Operations 19.0 18.9 — Net Earnings Attributable to Century Casinos, Inc. Shareholders 7.5 10.4 (28%) Adjusted EBITDA* 25.3 2
Slide 15: Century Resorts Alberta
2018 Highlights – CANADA (Selected Information in CAD) CENTURY RESORTS ALBERTA In millions 2018 2017 Change Net Operating Revenue 27.4 27.5 — Operating Costs and Expenses 19.0 18.8 1% Earnings from Operations 8.4 8.7 (4%) Net Earnings Attributable to Century Casinos, Inc. Shareholders 3.6 6.0 (41%)
Slide 16: Century Casino St. Albert
2018 Highlights – CANADA (Selected Information in CAD) CENTURY CASINO ST. ALBERT In millions 2018 2017 Change Net Operating Revenue 11.9 11.4 4% Operating Costs and Expenses 8.6 8.3 4% Earnings from Operations 3.3 3.1 4% Net Earnings Attributable to Century Casinos, Inc. Shareholders 1.4 1.6 (9%) Ad
Slide 17: Century Casino Calgary
2018 Highlights – CANADA (Selected Information in CAD) CENTURY CASINO CALGARY In millions 2018 2017 Change Net Operating Revenue 10.6 9.9 7% Operating Costs and Expenses 10.6 10.3 4% Loss from Operations (0.1) (0.3) 81% Net Loss Attributable to Century Casinos, Inc. Shareholders (0.1) (0.2) 25% Adju
Slide 18: Century Downs Racetrack and Casino
2018 Highlights – CANADA (Selected Information in CAD) CENTURY DOWNS RACETRACK AND CASINO In millions 2018 2017 Change Net Operating Revenue 26.4 22.5 17% Operating Costs and Expenses 17.1 15.3 12% Earnings from Operations 9.3 7.2 30% Net Earnings Attributable to Century Casinos, Inc. Shareholders 4
Slide 19: 2018 Highlights – United States
2018 Highlights – UNITED STATES (Selected Information in USD) In millions 2018 2017 Change Net Operating Revenue 33.5 32.2 4% Operating Costs and Expenses 27.6 26.6 4% Earnings from Operations 5.9 5.6 5% Net Earnings Attributable to Century Casinos, Inc. Shareholders 4.4 3.5 26% Adjusted EBITDA* 8.1
Slide 20: Central City
2018 Highlights – UNITED STATES (Selected Information in USD) CENTRAL CITY In millions 2018 2017 Change Net Operating Revenue 19.7 19.2 2% Operating Costs and Expenses 17.1 16.3 4% Earnings from Operations 2.6 2.9 (8%) Net Earnings Attributable to Century Casinos, Inc. Shareholders 2.0 1.8 10% Adjus
Slide 21: Cripple Creek
2018 Highlights – UNITED STATES (Selected Information in USD) CRIPPLE CREEK In millions 2018 2017 Change Net Operating Revenue 13.8 12.9 7% Operating Costs and Expenses 10.5 10.2 3% Earnings from Operations 3.3 2.7 19% Net Earnings Attributable to Century Casinos, Inc. Shareholders 2.4 1.7 43% Adjus
Slide 22: 2018 Highlights – Poland
2018 Highlights – POLAND (Selected Information in PLN) In millions 2018 2017 Change Net Operating Revenue 246.7 225.5 9% Operating Costs and Expenses 246.2 215.1 15% Earnings from Operations 0.4 10.4 (96%) Net (Loss) Earnings Attributable to Century Casinos, Inc. Shareholders (0.8) 4.1 (120%) Adjust
Slide 23: 2018 Highlights – Corporate and Other
2018 Highlights – CORPORATE AND OTHER (Selected Information in USD) In millions 2018 2017 Change Net Operating Revenue 5.9 4.4 34% Operating Costs and Expenses 17.1 12.6 36% Loss from Operations (11.2) (8.2) (37%) Net Loss Attributable to Century Casinos, Inc. Shareholders (8.5) (6.2) (38%) Adjusted
Slide 24: Cruise Ships and Other
2018 Highlights – CORPORATE AND OTHER (Selected Information in USD) CRUISE SHIPS AND OTHER In millions 2018 2017 Change Net Operating Revenue 3.1 4.4 (29%) Operating Costs and Expenses 2.8 3.8 (25%) Earnings from Operations 0.3 0.6 (54%) Net Earnings Attributable to Century Casinos, Inc. Shareholder
Slide 25: Century Casino Bath
2018 Highlights – CORPORATE AND OTHER (Selected Information in GBP) CENTURY CASINO BATH In millions 2018 Net Operating Revenue 2.1 Operating Costs and Expenses 4.0 Loss from Operations (2.0) Net Loss Attributable to Century Casinos, Inc. Shareholders (2.0) Adjusted EBITDA* (1.3) Adjusted EBITDA Marg
Slide 26: 2018 Highlights – Additional Projects Under Development
2018 Highlights – ADDITIONAL PROJECTS UNDER DEVELOPMENT Century Mile In September 2016, the Company was selected as the successful applicant by Horse Racing Alberta to own, build and operate a horse racing facility in the Edmonton market area, which the Company will operate as Century Mile Racetrack
Slide 27: 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 St. Albert CSA Century Casino Calgary CAL Century Downs Racetrack and Casino CDR Century Bets! CBS Century Mile Racetrack and C
Slide 28: 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 29: 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 30: 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 financial information compared to prior period financial information
Slide 31: Appendix A – Non-GAAP Financial Measures: Canada
Appendix A – NON-GAAP FINANCIAL MEASURES Reconciliation of Adjusted EBITDA (in thousands) - CANADA For the year ended December 31, 2018 in CAD CRA CSA CAL CDR CBS CMR Total Canada Net Operating Revenue $ 27,414 $ 11,858 $ 10,575 $ 26,431 $ 3,296 $ — $ 79,574 Net earnings (loss) attributable to Centu
Slide 32: Appendix A – Non-GAAP Financial Measures: Canada continued
Appendix A – NON-GAAP FINANCIAL MEASURES Reconciliation of Adjusted EBITDA (in thousands) – CANADA continued 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 $ — $ 74,821 Net earnings (loss) attributable
Slide 33: Appendix A – Non-GAAP Financial Measures: United States
Appendix A – NON-GAAP FINANCIAL MEASURES Reconciliation of Adjusted EBITDA (in thousands) – UNITED STATES For the year ended December 31, 2018 Total United in USD Central City Cripple Creek States Net Operating Revenue $ 19,681 $ 13,802 $ 33,483 Net earnings attributable to Century Casinos, Inc. sha
Slide 34: Appendix A – Non-GAAP Financial Measures: Poland
Appendix A – NON-GAAP FINANCIAL MEASURES Reconciliation of Adjusted EBITDA (in thousands) – POLAND For the year ended December 31, in PLN 2018 2017 Net Operating Revenue PLN 246,662 PLN 225,476 Net (loss) earnings attributable to Century Casinos, Inc. shareholders (825) 4,090 Interest expense (incom
Slide 35: Appendix A – Non-GAAP Financial Measures: Corporate and Other
Appendix A – NON-GAAP FINANCIAL MEASURES Reconciliation of Adjusted EBITDA (in thousands) – CORPORATE AND OTHER For the year ended December 31, 2018 Cruise Ships and Century Casino Total Corporate in USD Other Bath Corporate Other Other Net Operating Revenue $ 3,108 $ 2,684 $ 93 $ 5,885 Net earnings
Slide 36: Appendix A – Non-GAAP Financial Measures: Century Casino Bath
Appendix A – NON-GAAP FINANCIAL MEASURES Reconciliation of Adjusted EBITDA (in thousands) – CENTURY CASINO BATH For the year ended December 31, in GBP 2018 Net Operating Revenue GBP 2,062 Net earnings (loss) attributable to Century Casinos, Inc. shareholders (2,028) Interest expense (income), net 54
Slide 37: Appendix A – Reconciliation of Net Debt
Appendix A – NON-GAAP FINANCIAL MEASURES Reconciliation of Net Debt (in thousands) December 31, 2018 December 31, 2017 Amounts in thousands Total long-term debt, including current portion $ 59,523 $ 56,713 Deferred financing costs 496 258 Total principal $ 60,019 $ 56,971 Less: cash and cash equival