Century Casinos, Inc. · NASDAQ:CNTY
Century Casinos — Q3 2020 Earnings Presentation
32 slides from Century Casinos's earnings presentation, Nov 6, 2020
Slide 1: Century Casinos, Inc. Financial Results Q3 2020
CENTURY CASINOS, INC. Financial Results Q3 2020 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. Between March 13, 2020 and March 17, 2020, the Company closed all of its casinos, hotels and other facilities to comply with quarantines issued by governments to contain t
Slide 5: Q3 2020 Net Operating Revenue by Reportable Segment and Operating Segment
Q3 2020 Net Operating Revenue by Reportable Segment and Operating Segment (in USD) Excluding Corporate and Other Reportable Segment Poland Canada 17% 17% Edmonton Poland 10% 17% Calgary 7% Colorado 11% Missouri 25% United States 66% West Virginia 30% 5
Slide 6: Q3 2020 Earnings from Operations by Reportable Segment and Operating Segment
Q3 2020 Earnings from Operations by Reportable Segment and Operating Segment (in USD) Excluding Corporate and Other Reportable Segment Poland 1% Canada 18% Poland Edmonton 1% 9% Calgary 9% Missouri 39% United States Colorado 81% 24% West Virginia 18% 6
Slide 7: Q3 2020 Net Earnings Attributable to Shareholders by Segment
Q3 2020 Net Earnings Attributable to Century Casinos, Inc. Shareholders by Reportable Segment and Operating Segment (in USD) Excluding Corporate and Other Reportable Segment Poland 1% Canada 20% Poland Edmonton 1% 13% Missouri 23% Calgary 7% United States 79% West Virginia 12% Colorado 44% 7
Slide 8: Q3 2020 Adjusted EBITDA by Reportable Segment and Operating Segment
Q3 2020 Adjusted EBITDA* by Reportable Segment and Operating Segment (in USD) Excluding Corporate and Other Reportable Segment Poland 4% Canada 17% Poland Edmonton 4% 9% Calgary 8% Missouri 40% Colorado 20% United States 79% West Virginia 19% *Adjusted EBITDA is a non-GAAP financial measure. See App
Slide 9: Net Operating Revenue per Quarter
Net Operating Revenue per Quarter (in USD) 120 100 95.7 87.7 80 67.2 60 52.9 52.4 45.6 43.6 45.1 40.6 39.6 41.0 39.3 40 33.2 36.4 35.2 37.3 36.1 34.5 36.3 20 0 Q1 Q2 Q3 Q4 2016 2017 2018 2019 2020 9
Slide 10: Balance Sheet
Balance Sheet (Selected Information in USD) In millions (except BVPS) September 30, 2020 December 31, 2019 Change Total Assets 671.8 726.9 (8%) Total Debt 184.1 179.0 3% Book Value per Share* 3.55 5.54 (36%) Net Debt** 131.7 134.2 *Book Value per Share is defined as total Century Casinos, Inc. share
Slide 11: Income Statement
Income Statement (Selected Information in USD) In millions Q3 2020 Q3 2019 Change Net Operating Revenue 95.7 52.9 81% Earnings from Operations 15.0 3.5 331% Net Earnings Attributable to Century Casinos, Inc. 3.7 0.5 678% Shareholders Adjusted EBITDA* 22.2 7.1 213% Basic and Diluted Earnings per Shar
Slide 12: Constant Currency Results (in USD)
Constant Currency Results (in USD) In millions Q3 2020 Q3 2019 Change Net Operating Revenue as reported (GAAP) 95.7 52.9 81% Foreign currency impact vs. 2019 (0.2) Net Operating Revenue constant currency (non-GAAP)* 95.5 52.9 80% Earnings from Operations as reported (GAAP) 15.0 3.5 331% Foreign curr
Slide 13: Debt and Net Debt to Adjusted EBITDA
Debt and Net Debt to Adjusted EBITDA* (in USD) As of September 30, 2020 and for the years ended December 31, 2012-2019 11x 10x 9.5x 9x 8x 6.8x 6.8x 7x 6x 5.1x 5x 4x 3.0x 3x 2.7x 2.5x 2.2x 2.2x 2x 1.6x 1.1x 1x 0.5x 0.7x 0.6x 0.3x 0.3x 0x -1x 2012 2013 2014 2015 2016 2017 2018 2019 2020 -0.7x -2x -2.0
Slide 14: Q3 2020 Highlights – United States
Q3 2020 Highlights – UNITED STATES (Selected Information in USD) In millions Q3 2020 Q3 2019 Change Net Operating Revenue 62.6 9.2 581% Operating Costs and Expenses 47.9 7.4 549% Earnings from Operations 14.7 1.8 711% Net Earnings Attributable to Century Casinos, Inc. 7.7 1.3 468% Shareholders Adjus
Slide 15: Q3 2020 Highlights – United States Colorado
Q3 2020 Highlights – UNITED STATES (Selected Information in USD) COLORADO In millions Q3 2020 Q3 2019 Change Net Operating Revenue 10.4 9.2 13% Operating Costs and Expenses 6.1 7.4 (17%) Earnings from Operations 4.3 1.8 137% Net Earnings Attributable to Century Casinos, Inc. 4.3 1.3 218% Shareholder
Slide 16: Q3 2020 Highlights – United States West Virginia
Q3 2020 Highlights – UNITED STATES (Selected Information in USD) WEST VIRGINIA In millions Q3 2020 Net Operating Revenue 28.4 Operating Costs and Expenses 25.1 Earnings from Operations 3.2 Net Earnings Attributable to Century Casinos, Inc. Shareholders 1.1 Adjusted EBITDA* 4.8 Adjusted EBITDA Margin
Slide 17: Q3 2020 Highlights – United States Missouri
Q3 2020 Highlights – UNITED STATES (Selected Information in USD) MISSOURI In millions Q3 2020 Net Operating Revenue 23.9 Operating Costs and Expenses 16.7 Earnings from Operations 7.2 Net Earnings Attributable to Century Casinos, Inc. Shareholders 2.2 Adjusted EBITDA* 9.7 Adjusted EBITDA Margin* 41%
Slide 18: Q3 2020 Highlights – Canada
Q3 2020 Highlights – CANADA (Selected Information in CAD) In millions Q3 2020 Q3 2019 Change Net Operating Revenue 22.1 29.1 (24%) Operating Costs and Expenses 18.0 24.5 (27%) Earnings from Operations 4.1 4.7 (12%) Net Earnings Attributable to Century Casinos, Inc. 5.0 1.7 193% Shareholders Adjusted
Slide 19: Q3 2020 Highlights – Canada Edmonton
Q3 2020 Highlights – CANADA (Selected Information in CAD) EDMONTON In millions Q3 2020 Q3 2019 Change Net Operating Revenue 13.5 17.9 (25%) Operating Costs and Expenses 11.5 15.5 (26%) Earnings from Operations 2.0 2.4 (17%) Net Earnings Attributable to Century Casinos, Inc. 4.2 1.1 285% Shareholders
Slide 20: Q3 2020 Highlights – Canada Calgary
Q3 2020 Highlights – CANADA (Selected Information in CAD) CALGARY In millions Q3 2020 Q3 2019 Change Net Operating Revenue 8.6 11.2 (24%) Operating Costs and Expenses 6.5 9.0 (28%) Earnings from Operations 2.1 2.2 (6%) Net Earnings Attributable to Century Casinos, Inc. 0.8 0.6 32% Shareholders Adjus
Slide 21: Q3 2020 Highlights – Poland
Q3 2020 Highlights – POLAND (Selected Information in PLN) In millions Q3 2020 Q3 2019 Change Net Operating Revenue 62.1 79.0 (21%) Operating Costs and Expenses 61.3 72.9 (16%) Earnings from Operations 0.8 6.1 (87%) Net Earnings Attributable to Century Casinos, Inc. 0.3 2.9 (89%) Shareholders Adjuste
Slide 22: Q3 2020 Highlights – Corporate and Other
Q3 2020 Highlights – CORPORATE AND OTHER (Selected Information in USD) In millions Q3 2020 Q3 2019 Change Net Operating Revenue 0.1 1.3 (89%) Operating Costs and Expenses 3.1 4.8 (35%) Loss from Operations (3.0) (3.5) 14% Net Loss Attributable to Century Casinos, Inc. Shareholders (5.9) (3.3) (80%)
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 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 27: Appendix A – Reconciliation – United States
Appendix A – NON-GAAP FINANCIAL MEASURES Reconciliation of Adjusted EBITDA (in thousands) – UNITED STATES For the three months ended September 30, 2020 Total United in USD Colorado West Virginia Missouri States Net Operating Revenue $ 10,423 $ 28,372 $ 23,852 $ 62,647 Net earnings attributable to Ce
Slide 28: Appendix A – Reconciliation – Canada
Appendix A – NON-GAAP FINANCIAL MEASURES Reconciliation of Adjusted EBITDA (in thousands) - CANADA For the three months ended September 30, 2020 in CAD Edmonton Calgary Total Canada Net Operating Revenue $ 13,506 $ 8,576 $ 22,082 Net earnings attributable to Century Casinos, Inc. shareholders 4,156
Slide 29: Appendix A – Reconciliation – Poland
Appendix A – NON-GAAP FINANCIAL MEASURES Reconciliation of Adjusted EBITDA (in thousands) – POLAND For the three months ended September 30, in PLN 2020 2019 Net Operating Revenue PLN 62,106 PLN 78,995 Net earnings attributable to Century Casinos, Inc. shareholders 321 2,872 Interest expense (income)
Slide 30: 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 September 30, in USD 2020 2019 Net Operating Revenue $ 143 $ 1,313 Net loss attributable to Century Casinos, Inc. shareholders (5,874) (3,264) Interest expense (
Slide 31: Appendix A – Reconciliation of Net Debt
Appendix A – NON-GAAP FINANCIAL MEASURES Reconciliation of Net Debt (in thousands) Amounts in thousands September 30, 2020 September 30, 2019 Total long-term debt, including current portion $ 184,106 $ 71,069 Deferred financing costs 9,651 387 Total principal $ 193,757 $ 71,456 Less: Cash and cash e
Slide 32: Appendix A – Reconciliation of Debt and Net Debt to Adjusted EBITDA
Appendix A – NON-GAAP FINANCIAL MEASURES Reconciliation of Debt and Net Debt to Adjusted EBITDA Calculation (in thousands) Trailing 12-Month Trailing 12-Month in USD Q4 2019 Q1 2020 Q2 2020 Q3 2020 September 30, 2020 December 31, 2019 Net (loss) earnings attributable to Century Casinos, Inc. $ (20,1