Century Casinos, Inc. · NASDAQ:CNTY
Century Casinos — FY2019 Earnings Presentation
33 slides from Century Casinos's earnings presentation, 2019
Slide 1: Century Casinos Financial Results 2019
CENTURY CASINOS Financial Results 2019 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, the term “PLN” refers to Polish zloty and the term “GBP” refers to the British pound. Adjusted EBITDA and Adjusted EBITDA margin are non-GAAP financial measures. See Appendix A
Slide 4: 2019 Highlights
2019 Highlights On December 6, 2019, the Company completed its acquisition (the “Acquisition”) of the operations of Isle Casino Cape Girardeau, located in Cape Girardeau, Missouri, Lady Luck Caruthersville, located in Caruthersville, Missouri, and Mountaineer Casino, Racetrack and Resort located in
Slide 5: 2019 Net Operating Revenue by Reportable Segment and Operating Segment
2019 Net Operating Revenue by Reportable Segment and Operating Segment (in USD) Excluding Corporate Other Reporting Unit CCB, Ships & Other 3% Canada 37% Poland 37% CCB, Ships & Other 3% Edmonton 22% Poland 37% Calgary 15% United States Missouri West 3% Virginia Colorado 23% 16% 4% 5
Slide 6: 2019 Earnings (Loss) from Operations by Reportable Segment and Operating Segment
2019 Earnings (Loss) from Operations by Reportable Segment and Operating Segment (in USD) Excluding Corporate Other Reporting Unit Canada 139% CCB, Ships & Other -172% Edmonton 65% CCB, Ships & Other -172% Calgary 74% United States 82% Poland Colorado 51% 51% Poland 51% West Missouri Virginia 10% 21
Slide 7: 2019 Net Earnings (Loss) Attributable to Shareholders by Segment
2019 Net Earnings (Loss) Attributable to Century Casinos, Inc. Shareholders by Reportable Segment and Operating Segment (in USD) Excluding Corporate Other Reporting Unit Canada 140% United States Edmonton 122% 60% CCB, Ships & Other Calgary -435% 80% Colorado 91% CCB, Ships & Other West Virginia Pol
Slide 8: 2019 Adjusted EBITDA by Reportable Segment and Operating Segment
2019 Adjusted EBITDA* by Reportable Segment and Operating Segment (in USD) Excluding Corporate Other Reporting Unit CCB, Ships & Other -6% Poland 24% Canada 52% CCB, Ships & Other -6% Edmonton 26% Poland 24% Missouri 7% United States West Calgary 30% Virginia 26% 3% Colorado 20% *Adjusted EBITDA is
Slide 9: Net Operating Revenue per Quarter
Net Operating Revenue per Quarter (in USD) 80 70 67.2 60 52.4 52.9 50 45.6 45.1 43.6 40.6 39.6 41.0 37.9 39.3 40 36.4 35.2 37.3 36.3 33.2 33.5 34.5 31.9 30.4 30 20 10 0 Q1 Q2 Q3 Q4 2015 2016 2017 2018 2019 9
Slide 10: Balance Sheet
Balance Sheet (Selected Information in USD) In millions (except BVPS) December 31, 2019 December 31, 2018 Change Total Assets 726.9 278.8 161% Total Debt 179.0 59.5 201% Book Value per Share* 5.54 6.00 (8%) Net Debt** 134.2 14.4 *Book Value per Share is defined as total Century Casinos, Inc. shareho
Slide 11: Income Statement
Income Statement (Selected Information in USD) In millions (except EPS) 2019 2018 Change Net Operating Revenue 218.2 168.9 29% (Loss) Earnings from Operations (5.2) 9.5 (155%) Net (Loss) Earnings Attributable to Century Casinos, Inc. Shareholders (19.2) 3.4 (664%) Adjusted EBITDA* 30.3 23.4 30% Basi
Slide 12: Constant Currency Results (in USD)
Constant Currency Results (in USD) In millions 2019 2018 Change Net Operating Revenue as reported (GAAP) 218.2 168.9 29% Foreign currency impact vs. 2018 7.2 Net Operating Revenue constant currency (non-GAAP)* 225.4 168.9 33% (Loss) Earnings from Operations as reported (GAAP) (5.2) 9.5 (155%) Foreig
Slide 13: Debt and Net Debt to Adjusted EBITDA
Debt and Net Debt to Adjusted EBITDA* (in USD) For the years ended December 31, 2011-2019 7x 5.9x 6x 5x 4.4x 4x 3.0x 3x 2.7x 2.5x 2.2x 2.2x 2x 1.6x 1.1x 0.8x 0.7x 1x 0.5x 0.6x 0.3x 0.3x 0x 2011 2012 2013 2014 2015 2016 2017 2018 2019 -1x -0.7x -2x -1.5x -2.0x -3x Debt to Adjusted EBITDA Net Debt to
Slide 14: 2019 Highlights – Canada
2019 Highlights – CANADA (Selected Information in CAD) In millions 2019 2018 Change Net Operating Revenue 107.0 79.6 35% Operating Costs and Expenses 85.6 60.6 41% Earnings from Operations 21.4 19.0 13% Net Earnings Attributable to Century Casinos, Inc. Shareholders 11.6 7.5 54% Adjusted EBITDA* 28.
Slide 15: 2019 Highlights – Canada Edmonton
2019 Highlights – CANADA (Selected Information in CAD) EDMONTON In millions 2019 2018 Change Net Operating Revenue 64.8 39.3 65% Operating Costs and Expenses 54.7 29.8 84% Earnings from Operations 10.0 9.4 6% Net Earnings Attributable to Century Casinos, Inc. Shareholders 6.6 3.4 93% Adjusted EBITDA
Slide 16: 2019 Highlights – Canada Calgary
2019 Highlights – CANADA (Selected Information in CAD) CALGARY In millions 2019 2018 Change Net Operating Revenue 42.2 40.3 5% Operating Costs and Expenses 30.9 30.8 — Earnings from Operations 11.4 9.5 19% Net Earnings Attributable to Century Casinos, Inc. Shareholders 5.0 4.1 22% Adjusted EBITDA* 1
Slide 17: 2019 Highlights – United States
2019 Highlights – UNITED STATES (Selected Information in USD) In millions 2019 2018 Change Net Operating Revenue 50.0 33.5 49% Operating Costs and Expenses 40.5 27.6 47% Earnings from Operations 9.5 5.9 61% Net Earnings Attributable to Century Casinos, Inc. Shareholders 5.8 4.4 33% Adjusted EBITDA*
Slide 18: 2019 Highlights – United States Colorado
2019 Highlights – UNITED STATES (Selected Information in USD) COLORADO In millions 2019 2018 Change Net Operating Revenue 33.9 33.5 1% Operating Costs and Expenses 28.1 27.6 2% Earnings from Operations 5.9 5.9 — Net Earnings Attributable to Century Casinos, Inc. Shareholders 4.4 4.4 — Adjusted EBITD
Slide 19: 2019 Highlights – United States West Virginia
2019 Highlights – UNITED STATES (Selected Information in USD) WEST VIRGINIA In millions 2019 Net Operating Revenue 8.7 Operating Costs and Expenses 7.5 Earnings from Operations 1.2 Net Earnings Attributable to Century Casinos, Inc. Shareholders 0.4 Adjusted EBITDA* 1.3 Adjusted EBITDA Margin* 15%
Slide 20: 2019 Highlights – United States Missouri
2019 Highlights – UNITED STATES (Selected Information in USD) MISSOURI In millions 2019 Net Operating Revenue 7.4 Operating Costs and Expenses 4.9 Earnings from Operations 2.5 Net Earnings Attributable to Century Casinos, Inc. Shareholders 1.0 Adjusted EBITDA* 2.6 Adjusted EBITDA Margin* 35% As of
Slide 21: 2019 Highlights – Poland
2019 Highlights – POLAND (Selected Information in PLN) In millions 2019 2018 Change Net Operating Revenue 314.3 246.7 27% Operating Costs and Expenses 289.3 246.2 18% Earnings from Operations 24.9 0.4 5918% Net Earnings (Loss) Attributable to Century Casinos, Inc. Shareholders 12.8 (0.8) 1656% Adjus
Slide 22: 2019 Highlights – Corporate and Other
2019 Highlights – CORPORATE AND OTHER (Selected Information in USD) In millions 2019 2018 Change Net Operating Revenue 5.7 5.9 (3%) Operating Costs and Expenses 42.4 17.1 148% Loss from Operations (36.7) (11.2) (228%) Net Loss Attributable to Century Casinos, Inc. Shareholders (35.1) (8.5) (311%) Ad
Slide 23: 2019 Highlights – Additional Projects Under Development
2019 Highlights – ADDITIONAL PROJECTS UNDER DEVELOPMENT Bermuda In August 2017, the Company announced that, together with Hamilton Properties Limited, it had submitted a casino license application to the Bermudan government for a casino at the Hamilton Princess Hotel & Beach Club in Hamilton, Bermud
Slide 24: Appendix A – Abbreviations of Subsidiaries and Operating Segments
Appendix A – ABBREVIATIONS OF CENTURY CASINOS, INC. SUBSIDIARIES AND CERTAIN OPERATING SEGMENTS Reportable Segment Operating Segment Reporting Unit Abbreviation United States Colorado Century Casino & Hotel – Central City CTL Century Casino & Hotel – Cripple Creek CRC West Virginia Mountaineer Casin
Slide 25: 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 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 and amortization, non-controlling interests net earnings (loss) and trans
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 financial information compared to prior period financial information
Slide 28: Appendix A – Reconciliation – United States
Appendix A – NON-GAAP FINANCIAL MEASURES Reconciliation of Adjusted EBITDA (in thousands) – UNITED STATES For the year ended December 31, 2019 Total United in USD Colorado West Virginia Missouri States Net Operating Revenue $ 33,940 $ 8,688 $ 7,370 $ 49,998 Net earnings attributable to Century Casin
Slide 29: Appendix A – Reconciliation – Canada
Appendix A – NON-GAAP FINANCIAL MEASURES Reconciliation of Adjusted EBITDA (in thousands) - CANADA For the year ended December 31, 2019 in CAD Edmonton Calgary Total Canada Net Operating Revenue $ 64,776 $ 42,232 $ 107,008 Net earnings attributable to Century Casinos, Inc. shareholders 6,607 5,011 1
Slide 30: Appendix A – Reconciliation – Canada continued
Appendix A – NON-GAAP FINANCIAL MEASURES Reconciliation of Adjusted EBITDA (in thousands) – CANADA continued For the year ended December 31, 2018 in CAD Edmonton Calgary Total Canada Net Operating Revenue $ 39,272 $ 40,302 $ 79,574 Net earnings attributable to Century Casinos, Inc. shareholders 3,42
Slide 31: Appendix A – Reconciliation – Poland
Appendix A – NON-GAAP FINANCIAL MEASURES Reconciliation of Adjusted EBITDA (in thousands) – POLAND For the year ended December 31, in PLN 2019 2018 Net Operating Revenue PLN 314,264 PLN 246,662 Net earnings (loss) attributable to Century Casinos, Inc. shareholders 12,838 (825) Interest expense (inco
Slide 32: Appendix A – Reconciliation – Corporate and Other
Appendix A – NON-GAAP FINANCIAL MEASURES Reconciliation of Adjusted EBITDA (in thousands) – CORPORATE AND OTHER For the year ended December 31, in USD 2019 2018 Net Operating Revenue $ 5,685 $ 5,885 Net loss attributable to Century Casinos, Inc. shareholders (35,115) (8,541) Interest expense (income
Slide 33: Appendix A – Reconciliation of Net Debt
Appendix A – NON-GAAP FINANCIAL MEASURES Reconciliation of Net Debt (in thousands) Amounts in thousands December 31, 2019 December 31, 2018 Total long-term debt, including current portion $ 178,963 $ 59,523 Deferred financing costs 9,998 496 Total principal $ 188,961 $ 60,019 Less: Cash and cash equ