Century Casinos, Inc. · NASDAQ:CNTY
Century Casinos — Investor Presentation (March 2019)
33 slides from Century Casinos's investor presentation, March 2019
Slide 1: Peter Hoetzinger, Co Founder, Co CEO & President
Peter Hoetzinger Co Founder, Co CEO & President March 2019 1
Slide 2: International Casino and Entertainment Company
International Casino and Entertainment Company • Developer and operator of mid-market, mid-size casinos in regulated markets world-wide • 5,143 gaming machines and 227 gaming tables • Focus on entertainment with gaming and attractive non-gaming facilities (urban casino resort concept) • Target marke
Slide 3: Investment Highlights
Investment Highlights Leading owner and operator of mid-sized casinos worldwide Casinos and new developments located in attractive markets with limited new competition risk Track record of accretive casino developments and acquisitions Longstanding management team with unrivalled international opera
Slide 4: Canada (Alberta) Overview
Canada (Alberta) Overview • Large gaming market with a moratorium on new gaming licenses Key Demographics for Calgary & Edmonton Unemployment Rate & Oil Price (2) • Population: Unemployment Avg. Crude Oil – Calgary: 1.1 million Rate Price 10.0% $120 – Edmonton: 1.2 million 9.0% 8.0% $100 • Median Ho
Slide 5: Edmonton (Alberta) Gaming Landscape
Edmonton (Alberta) Gaming Landscape 5
Slide 6: Century Casino Edmonton
Century Casino Edmonton In Edmonton, Alberta, Canada Wholly Owned, Opened in 2006 31,500 sft Casino Space 35 gaming tables, 827 gaming machines 4 restaurants, 2 bars 26 hotel rooms, heated parking garage Showroom and comedy club 6
Slide 7: Century Casino St. Albert
Century Casino St. Albert Acquired in October 2016 13,600 sft Casino Space 11 gaming tables, 427 gaming machines Restaurant, bar, lounge, banquet for 175 11 miles from Century Casino Edmonton Operational synergies 7
Slide 8: Calgary (Alberta) Gaming Landscape
Calgary (Alberta) Gaming Landscape 8
Slide 9: Century Casino Calgary
Century Casino Calgary In Calgary, Alberta, Canada Wholly Owned, Purchased 2010 20,000 sft Casino Space 16 gaming tables, 517 gaming machines 1 restaurant, 4 bars OTB parlor, Family Entertainment Center 700+ parking 9
Slide 10: Century Downs
Century Downs North of Calgary, Alberta, Canada Opened April 2015, 75% ownership 31,000 sft Casino Space 600 gaming machines, electronic tables Restaurant, lounge & bar, event venues 5.5 furlong (0.7 miles) racetrack Off-track horse betting parlor 10
Slide 11: Century Bets!
Century Bets! Exclusive license for Southern Alberta Pari-mutuel off-track horse betting network Signal to 15 off-track horse betting parlors 100+ racetracks worldwide under contract 11
Slide 12: U.S. (Colorado) Overview
U.S. (Colorado) Overview • Mature and stable gaming market with strong underlying feeder markets Key Demographics for Colorado Colorado Economic Overview (2) • Population % GDP Growth Unemployment Rate – Denver: 3.0 million 5.0% 4.7% 10.0% – Colorado Springs: 0.5 million 7.9% 4.0% 8.0% 3.2% 3.6% • M
Slide 13: Colorado Gaming Landscape
Colorado Gaming Landscape Cripple Creek # of Casinos 12 # of Slot Machines 3,606 # of Table Games 54 2018 Casino Revenue ($MM) $140 Central City # of Casinos 6 # of Slot Machines 2,007 # of Table Games 20 2018 Casino Revenue ($MM) $79 Black Hawk # of Casinos 15 # of Slot Machines 6,899 # of Table Ga
Slide 14: Century Casino Central City
Century Casino Central City Near Denver, Colorado, Opened in 2006 22,350 sft Casino Space 7 gaming tables, 491 gaming machines 2 restaurants, 1 bar 26 hotel rooms, 500 car parking garage 14
Slide 15: Century Casino Cripple Creek
Century Casino Cripple Creek Near Colorado Springs, Colorado, USA Opened in 1994 19,600 sft Casino Space 6 gaming tables, 437 gaming machines 1 restaurant, 2 bars 21 hotel rooms, 300+ parking 15
Slide 16: Poland Overview
Poland Overview • Stable gaming market with a strong underlying economy and limited casino licenses Key Demographics for Poland Poland Economic Overview (2) • Population: 38.4 million; % GDP Growth Unemployment Rate • GDP growth 2018 forecast at 4.6% (1); 7.0% 10.3% 12.0% 10.1% 6.2% • Key Industries
Slide 17: Casinos Poland
Casinos Poland 7 (soon 8) casinos in major cities in Poland 66.6% ownership stake since April 2013 103 gaming tables, 424 gaming machines High-quality casinos in 4- and 5-star hotels Limited number of licenses Catering to international guests and locals 17
Slide 18: Other International
Other International Century Mendoza Minh Chau Cruise Ships Casino Bath(1) Central Minh Chau, Mendoza, Location Bath, UK International Vietnam Argentina Total Square Feet 20,000 4,500 23,000 11,900 Slot Machines 60 9 600 177 Table Games 15 - - 32 (1) Opened in May 2018. 18
Slide 19: Financial Results
Financial Results at ees 19
Slide 20: Canada: Segment Results
Canada: Segment Results In CAD millions Q4 2018 Q4 2017 Change Net Operating Revenue 20.7 19.4 + 7% Adjusted EBITDA 6.6 6.3 + 6% Select Property Info Net Operating Adj. EBITDA EBITDA (Q4 2018 over Q4 2017) Revenue Margin Century Casino & Hotel Edmonton - 2% - 15% 34% Century Casino St. Albert + 12%
Slide 21: USA: Segment Results
USA: Segment Results In USD millions Q4 2018 Q4 2017 Change Net Operating Revenue 7.9 7.8 + 3% Adjusted EBITDA 1.6 1.6 - 2% Select Property Info Net Operating Adj. EBITDA EBITDA (Q4 2018 over Q4 2017) Revenue Margin Century Casino & Hotel Central City + 5% + 17% 17% Century Casino & Hotel Cripple Cr
Slide 22: Poland: Segment Results
Poland: Segment Results In PLN millions Q4 2018 Q4 2017 Change Net Operating Revenue 73.5 55.4 + 33% Adjusted EBITDA 6.5 3.6 + 83% Select Performance Info Q4 2018 Q4 2017 Change Revenue / Slot machine / Day (PLN) 1,073 985 + 9% Revenue / Gaming table / Day (PLN) 3,519 3,163 + 11% Net Operating Reven
Slide 23: Consolidated Income Statement and Balance Sheet
Consolidated Income Statement and Balance Sheet In USD millions (except book value per share) Q4 2018 Q4 2017 Change Net Operating Revenue 45.1 39.3 + 15% Adjusted EBITDA 5.8 5.4 + 7% Total Assets 278.8 274.9 + 2% Total Liabilities 59.5 56.7 - 4% Book Value per Share 6.00 6.13 - 2% Net Debt * 13.9 -
Slide 24: Revenue and Adj. EBITDA per Operating Segment (Q4 2018)
Revenue and Adj. EBITDA per Operating Segment (Q4 2018) Net Operating Revenue Adjusted EBITDA Corporate and Other, 4% Corporate and Other, -4% Canada, Poland, 22% 35% Poland, 43% Canada, 63% United States, 19% United States, 18% 24
Slide 25: Net Operating Revenue per Quarter (in USD Million)
Net Operating Revenue per Quarter (in USD Million) $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 $33,5 $32,5 $32,6 $31,6 $31,3 $30,4 $29,1 $28,8$28,1 $29,4 $30 $28,3 (in millions) $25 $20 $18,0 $15 $10 $5 $0 Q1 Q2 Q3 Q4 2013 2014 2015 2016 2017 2018 25
Slide 26: Debt / Net Debt to Adjusted EBITDA
Debt / Net Debt to Adjusted EBITDA (as of December 31, 2010-2018) 5x 4x 3,0x 3x 2,7x 2,5x 2,2x 2,2x 2x 1,7x 1,6x 1,1x 1x 0,8x 0,7x 0,6x 0,5x 0,3x 0,3x 0x 1,x -0,7x -1,0x -1,5x 2,x -2,1x 3,x 2010 2011 2012 2013 2014 2015 2016 2017 2018 26
Slide 27: New Projects
New Projects 27
Slide 28: New Project: Racetrack and Casino, Edmonton
New Project: Racetrack and Casino, Edmonton • CNTY’s largest and most significant project to-date • Strategically located on Edmonton International Airport land, just off the QE2 highway. Next to 428,000 s.ft. Outlet Center, Golf Club, hotels, restaurants, office buildings • One of multiple developm
Slide 29: Edmonton (Alberta) Gaming Landscape
Edmonton (Alberta) Gaming Landscape Northlands Park - CLOSED 29
Slide 30: CENTURY
CENTURY
Slide 31: CENTURY
CENTURY
Slide 32: New Project: Bermuda
CASINO New Project: Bermuda Currently no casinos in Bermuda Long-term casino management agreement with Hamilton Princess Hotel & Beach Club USD 5 mil loan for casino equipment Provisional license issued Government to adopt rules, regulations 200 slots, 17 tables and VIP high-limit area 32
Slide 33: NASDAQ: CNTY
NASDAQ: CNTY • Research coverage by four gaming analysts from – Stifel – Roth – Craig Hallum – Union Gaming • Average 12-month target price: $11.50 33