Century Casinos, Inc. · NASDAQ:CNTY
Century Casinos — FY2021 Earnings Presentation
33 slides from Century Casinos's earnings presentation, Mar 8, 2022
Slide 1: Century Casinos, Inc. Financial Results 2021
CENTURY CASINOS, INC. Financial Results 2021 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 The COVID-19 pandemic had an adverse effect on the Company’s 2020 results of operations and financial condition, and negatively impacted the Company’s results of operations to a lesser extent in 2021 because the Company’s United States properties were open and operating during this p
Slide 5: Other Projects and Developments
OTHER PROJECTS AND DEVELOPMENTS The Company plans to relocate its Century Casino Caruthersville casino, currently the last remaining casino riverboat on open water in Missouri, to a land-based casino with an attached hotel, estimated to open in 2024, and to build a hotel that will attach onto Centur
Slide 6: Net Operating Revenue by Reportable Segment and Operating Segment
2021 NET OPERATING REVENUE by Reportable Segment and Operating Segment (in USD) Excluding Corporate and Other Reportable Segment Canada Poland 12% 15% Edmonton Poland 8% Calgary 15% 4% Colorado 12% Missouri 32% United States 73% West Virginia 29% 6
Slide 7: Earnings (Loss) from Operations by Reportable Segment and Operating Segment
2021 EARNINGS (LOSS) FROM OPERATIONS by Reportable Segment and Operating Segment (in USD) Excluding Corporate and Other Reportable Segment Canada Poland 6% -1% Edmonton Poland 1% Calgary -1% 5% Colorado 19% Missouri 59% United States West Virginia 95% 17% 7
Slide 8: Net Earnings (Loss) Attributable to Shareholders by Segment
2021 NET EARNINGS (LOSS) ATTRIBUTABLE TO CENTURY CASINOS, INC. SHAREHOLDERS by Reportable Segment and Operating Segment (in USD) Excluding Corporate and Other Reportable Segment Poland Canada 1% 2% Edmonton Poland -1% Calgary 1% 3% Colorado 29% Missouri 56% United States 97% West Virginia 12% 8
Slide 9: Adjusted EBITDA by Reportable Segment and Operating Segment
2021 ADJUSTED EBITDA* by Reportable Segment and Operating Segment (in USD) Excluding Corporate and Other Reportable Segment Poland Canada 2% 9% Poland 2% Edmonton Calgary 4% 5% Colorado 16% Missouri 54% West Virginia United States 19% 89% *Adjusted EBITDA is a non-GAAP financial measure. See Appendi
Slide 10: Net Operating Revenue per Quarter
NET OPERATING REVENUE PER QUARTER (in USD) In millions 140 120 116,6 107,3 100 92,2 95,7 87,7 84,8 80 72,4 67,2 60 52,4 52,9 45,6 43,6 45,1 40,6 41 40 36,4 37,3 39,6 36,1 39,3 20 0 Q1 Q2 Q3 Q4 2017 2018 2019 2020 2021 10
Slide 11: Balance Sheet
BALANCE SHEET (Selected Information in USD) In millions (except BVPS) December 31, 2021 December 31, 2020 Change Total Assets 703.4 680.8 3% Total Debt 181.5 184.6 (2%) Book Value per Share* 4.78 3.99 20% Net Debt** 81.4 130.4 *Book Value per Share is defined as total Century Casinos, Inc. sharehold
Slide 12: Income Statement
INCOME STATEMENT (Selected Information in USD) In millions 2021 2020 Change Net Operating Revenue 388.5 304.3 28% Earnings (Loss) from Operations 68.5 (0.1) 54051% Net Earnings (Loss) Attributable to Century Casinos, Inc. Shareholders 20.6 (48.0) 143% Adjusted EBITDA* 97.9 48.4 102% Basic Earnings (
Slide 13: Debt and Net Debt to Adjusted EBITDA
DEBT AND NET DEBT TO ADJUSTED EBITDA* (in USD) For the years ended December 31, 2013-2021 9x 7,9x 8x 7x 6,8x 6x 5,6x 5,1x 5x 4x 3,0x 3x 2,7x 2,5x 2,5x 2,2x 2,2x 2x 1,6x 1,1x 1,1x 1x 0,5x 0,7x 0,6x 0,3x 0x -1x -0,7x -2x 2013 2014 2015 2016 2017 2018 2019 2020 2021 Debt to Adjusted EBITDA Net Debt to
Slide 14: 2021 Highlights – United States
2021 HIGHLIGHTS – UNITED STATES (Selected Information in USD) In millions 2021 2020 Change Net Operating Revenue 283.3 198.3 43% Operating Costs and Expenses 206.3 199.5 3% Earnings (Loss) from Operations 77.0 (1.2) 6567% Net Earnings (Loss) Attributable to Century Casinos, Inc. Shareholders 49.6 (3
Slide 15: 2021 Highlights – Colorado
2021 HIGHLIGHTS – COLORADO (Selected Information in USD, in millions) Net Operating Revenue Adjusted EBITDA* 14,0 12,5 6,0 12,1 12,0 11,3 4,8 4,8 5,0 10,4 5,0 9,4 9,5 10,0 8,8 9,2 3,9 8,1 7,8 4,0 3,4 8,0 6,7 3,1 3,0 2,3 6,0 1,9 2,2 2,0 1,6 4,0 2,0 0,8 2,0 1,0 0,3 0,0 0,0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2019
Slide 16: 2021 Highlights – West Virginia
2021 Highlights – WEST VIRGINIA (Selected Information in USD, in millions) Net Operating Revenue Adjusted EBITDA* 35,0 31,7 7,0 6,2 30,6 5,9 30,0 28,4 28,7 6,0 25,1 4,8 25,0 23,9 24,5 5,0 4,5 4,0 3,6 3,3 20,0 3,0 15,0 12,2 1,8 2,0 1,3 10,0 8,7 1,0 5,0 0,0 0,0 -1,0 -0,5 Q1 Q2 Q3 Q4** Q1 Q2 Q3 Q4** 20
Slide 17: 2021 Highlights – Missouri
2021 Highlights – MISSOURI (Selected Information in USD, in millions) Net Operating Revenue Adjusted EBITDA* 40,0 20,0 34,1 17,2 35,0 31,0 15,4 29,7 30,0 28,3 15,0 13,4 12,8 23,9 24,5 25,0 21,6 10,4 9,7 20,0 10,0 15,0 6,1 9,6 10,0 7,4 5,0 2,3 2,6 5,0 0,0 0,0 Q1 Q2 Q3 Q4** Q1 Q2 Q3 Q4** 2019 2020 202
Slide 18: 2021 Highlights – Canada
2021 Highlights – CANADA (Selected Information in CAD) In millions 2021 2020 Change Net Operating Revenue 58.2 66.8 (13%) Operating Costs and Expenses 52.6 55.2 (5%) Earnings from Operations 5.7 11.6 (51%) Net Earnings Attributable to Century Casinos, Inc. Shareholders 2.9 4.9 (41%) Adjusted EBITDA*
Slide 19: 2021 Highlights – Edmonton
2021 Highlights – EDMONTON (Selected Information in CAD, in millions) Net Operating Revenue Adjusted EBITDA* 20,0 18,5 17,9 17,8 8,0 16,6 5,7 6,0 15,0 13,1 13,5 13,5 4,0 3,9 4,0 3,5 3,2 11,8 2,9 10,2 2,5 1,8 10,0 2,0 1,4 0,3 5,1 0,0 5,0 3,9 -0,2 1,3 -2,0 -2,4 0,0 -4,0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2019 20
Slide 20: 2021 Highlights – Calgary
2021 Highlights – CALGARY (Selected Information in CAD, in millions) Net Operating Revenue Adjusted EBITDA* 12,0 10,9 11,2 5,0 10,2 4,3 9,9 3,8 3,9 10,0 8,6 9,1 4,0 8,5 3,2 2,9 2,7 2,8 8,0 7,1 3,0 2,5 2,5 6,4 6,0 2,0 4,0 3,1 1,0 0,5 2,6 0,0 2,0 1,2 0,0 0,0 -1,0 -0,7 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2019 2020
Slide 21: 2021 Highlights – Poland
2021 Highlights – POLAND (Selected Information in PLN) In millions 2021 2020 Change Net Operating Revenue 227.5 209.3 9% Operating Costs and Expenses 228.3 220.8 3% Loss from Operations (0.8) (11.5) 93% Net Earnings (Loss) Attributable to Century Casinos, Inc. Shareholders 2.3 (4.2) 155% Adjusted EB
Slide 22: 2021 Highlights – Poland
2021 Highlights – POLAND (Selected Information in PLN, in millions) Net Operating Revenue Adjusted EBITDA* 100,0 90,7 15,0 11,6 13,0 81,9 83,9 9,3 9,6 9,6 76,6 79,0 10,0 80,0 74,8 7,6 66,6 4,1 62,1 5,0 3,8 60,0 51,0 0,0 40,0 29,632,5 -0,9 22,4 -5,0 -4,0 20,0 -10,0 -6,3 -9,6 0,0 -15,0 Q1 Q2 Q3 Q4 Q1
Slide 23: 2021 Highlights – Corporate and Other
2021 Highlights – CORPORATE AND OTHER (Selected Information in USD) In millions 2021 2020 Change Net Operating Revenue 0.6 1.4 (61%) Operating Costs and Expenses 13.2 6.9 90% Loss from Operations (12.6) (5.5) (129%) Net Loss Attributable to Century Casinos, Inc. Shareholders (30.6) (18.6) (64%) Adju
Slide 24: Appendix A – Abbreviations of Subsidiaries and Reporting Units
Appendix A – ABBREVIATIONS OF CENTURY CASINOS, INC. SUBSIDIARIES AND CERTAIN REPORTING UNITS 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 Caruthersville CC
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 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 28: Appendix A – Reconciliation of Adjusted EBITDA – United States
Appendix A – NON-GAAP FINANCIAL MEASURES Reconciliation of Adjusted EBITDA (in thousands) – UNITED STATES For the year ended December 31, 2021 Total United in USD Colorado West Virginia Missouri States Net Operating Revenue $ 45,317 $ 114,962 $ 123,006 $ 283,285 Net earnings attributable to Century
Slide 29: Appendix A – Reconciliation of Adjusted EBITDA – Canada
Appendix A – NON-GAAP FINANCIAL MEASURES Reconciliation of Adjusted EBITDA (in thousands) - CANADA For the year ended December 31, 2021 in CAD Edmonton Calgary Total Canada Net Operating Revenue $ 37,742 $ 20,502 $ 58,244 Net (loss) earnings attributable to Century Casinos, Inc. shareholders (274) 3
Slide 30: Appendix A – Reconciliation of Adjusted EBITDA – Poland
Appendix A – NON-GAAP FINANCIAL MEASURES Reconciliation of Adjusted EBITDA (in thousands) – POLAND For the year ended December 31, in PLN 2021 2020 Net Operating Revenue PLN 227,471 PLN 209,303 Net earnings (loss) attributable to Century Casinos, Inc. shareholders 2,311 (4,166) Interest (income) exp
Slide 31: Appendix A – Reconciliation of Adjusted EBITDA – 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 2021 2020 Net Operating Revenue $ 567 $ 1,413 Net loss attributable to Century Casinos, Inc. shareholders (30,570) (18,609) Interest expense (income)
Slide 32: Appendix A – Reconciliation of Adjusted EBITDA Less Master Lease Payments
Appendix A – NON-GAAP FINANCIAL MEASURES Reconciliation of Adjusted EBITDA and Adjusted EBITDA Less Cash Payments on Master Lease Financing Obligation (in thousands) Trailing 12-Month Trailing 12-Month in USD Q1 2021 Q2 2021 Q3 2021 Q4 2021 December 31, 2021 December 31, 2020 Net earnings (loss) att
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, 2021 December 31, 2020 Total long-term debt, including current portion $ 181,484 $ 184,550 Deferred financing costs 7,695 9,261 Total principal $ 189,179 $ 193,811 Less: Cash and cash