Century Casinos, Inc. · NASDAQ:CNTY
Century Casinos — Q2 2019 Earnings Presentation
39 slides from Century Casinos's earnings presentation, Aug 8, 2019
Slide 1: Century Casinos Financial Results Q2 2019
CENTURY CASINOS Financial Results Q2 2019
Slide 2: Forward-Looking Statements, Business Environment and Risk Factors
Forward-LookingStatements, Business Environment and RiskFactors 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 Private
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: Net Operating Revenue by Reportable Segment and Operating Segment
Q2 2019 Net Operating Revenue by Reportable Segment and Operating Segment (in USD) Excluding Corporate Other Operating Segment Canada 42% United States 17% Poland 38% CCB, Ships & Other 3% CRA 10% CSA 5% CAL 4% CDR 10% CBS 1% CMR 12% CTL 10% CRC 7% CPL 38% CCB 2% Ships & Other 1% 4
Slide 5: Earnings (Loss) from Operations by Reportable Segment and Operating Segment
Q2 2019 Earnings (Loss) from Operationsby Reportable Segment and Operating Segment (in USD) Excluding Corporate Other Operating Segment Canada 84% United States 28% Poland 18% CCB, Ships & Other -30% CRA 26% CSA 13% CAL 4% CDR 38% CBS 1% CMR 2% CTL 12% CRC 16% CPL 18% CCB -11% Ships & Other- 19% 5
Slide 6: Net Earnings (Loss) Attributable to Shareholders by Segment
Q2 2019 Net Earnings (Loss) Attributable to Century Casinos, Inc. Shareholders by ReportableSegment and Operating Segment (in USD) Excluding Corporate Other Operating Segment Canada 147% United States 71% Poland 24% CCB, Ships & Other -142% CRA 48% CSA 20% CAL 24% CDR 60% CBS 2% CMR -7% CTL 29% CRC
Slide 7: Adjusted EBITDA by Reportable Segment and Operating Segment
Q2 2019 Adjusted EBITDA* by Reportable Segment and Operating Segment (in USD) Excluding Corporate Other Operating Segment Canada 68% United States 25% Poland 23% CCB, Ships & Other -16% CRA 20% CSA 9% CAL 4% CDR 29% CBS 1% CMR 5% CTL 11% CRC 14% CPL 23% CCB -7% Ships & Other -9% *Adjusted EBITDA is
Slide 8: Net Operating Revenue per Quarter
Net Operating Revenue per Quarter (in USD) 30.4 37.9 33.5 31.9 33.2 35.2 34.5 36.3 36.4 37.3 41.0 39.3 40.6 39.6 43.6 45.1 45.6 52.4 0 10 20 30 40 50 60 Q1 Q2 Q3 Q4 2015 2016 2017 2018 2019 8
Slide 9: Balance Sheet (Selected Information in USD)
Balance Sheet (Selected Information in USD) In millions (except BVPS) June 30, 2019 December 31, 2018 Change Total Assets 340.3 278.8 22% Total Debt 72.1 59.5 21% Book Value per Share* 6.14 6.00 2% Net Debt** 25.5 14.4 *Book Value per Share is defined as total Century Casinos, Inc. shareholders’ equ
Slide 10: Income Statement (Selected Information in USD)
Income Statement (Selected Information in USD) In millions (except EPS) Q2 2019 Q2 2018 Change Net Operating Revenue 52.4 39.6 32% Earnings from Operations 2.6 1.0 161% Net (Loss) Earnings Attributable to Century Casinos, Inc. Shareholders (0.6)0.3 (278%) Adjusted EBITDA*6.7 4.7 44% Basic and Dilute
Slide 11: Constant Currency Results
Constant Currency Results (in USD) In millions Q2 2019 Q2 2018 Change Net Operating Revenue as reported (GAAP) 52.4 39.6 32% Foreign currency impact vs. 2018 2.1 Net Operating Revenue constant currency (non-GAAP)* 54.6 39.6 38% Earnings from Operations as reported (GAAP) 2.6 1.0 161% Foreign currenc
Slide 12: Constant Currency Results
Constant Currency Results (in USD) In millions Q2 2019 Q2 2018 Change Net (Loss) Earnings Attributable to Century Casinos, Inc. Shareholders as reported (GAAP) (0.6) 0.3 (278%) Foreign currency impact vs. 2018 — Net (Loss) Earnings Attributable to Century Casinos, Inc. Shareholders constant currency
Slide 13: Debt and Net Debt to Adjusted EBITDA
Debt and Net Debt to Adjusted EBITDA* (in USD) As of June 30, 2019 and for the years ended December 31, 2011-2018 0.8x 0.3x 2.7x 3.0x 1.6x 2.2x 2.2x 2.5x 2.8x -1.5x -2.0x 0.5x 1.1x 0.3x 0.7x -0.7x 0.6x 1.0x -3x -2x -1x 0x 1x 2x 3x 4x 2011 2012 2013 2014 2015 2016 2017 2018 2019 Debt to Adjusted EBIT
Slide 14: Canada (Selected Information in CAD)
Q2 2019 Highlights –CANADA (Selected Information in CAD) In millions Q2 2019 Q2 2018 Change Net Operating Revenue 29.4 19.8 49% Operating Costs and Expenses 22.9 14.9 54% Earnings from Operations 6.5 4.9 33% Net Earnings Attributable to Century Casinos, Inc. Shareholders 4.2 2.0 113% Adjusted EBITDA
Slide 15: Canada: Century Casino & Hotel - Edmonton
Q2 2019 Highlights –CANADA (Selected Information in CAD) CENTURY CASINO & HOTEL - EDMONTON In millions Q2 2019 Q2 2018 Change Net Operating Revenue 6.7 6.8 (1%) Operating Costs and Expenses 4.7 4.7 (1%) Earnings from Operations 2.0 2.1 (1%) Net Earnings Attributable to Century Casinos, Inc. Sharehol
Slide 16: Canada: Century Casino St. Albert
Q2 2019 Highlights –CANADA (Selected Information in CAD) CENTURY CASINO ST. ALBERT In millions Q2 2019 Q2 2018 Change Net Operating Revenue 3.2 2.9 9% Operating Costs and Expenses 2.2 2.1 1% Earnings from Operations 1.0 0.8 31% Net Earnings Attributable to Century Casinos, Inc. Shareholders 0.5 0.3
Slide 17: Canada: Century Mile Racetrack and Casino
Q2 2019 Highlights –CANADA (Selected Information in CAD) CENTURY MILE RACETRACK AND CASINO In millions Q2 2019 Q2 2018 Change Net Operating Revenue 8.6 —100% Operating Costs and Expenses 8.5 0.5 1488% Earnings (Loss) from Operations 0.2 (0.5) 134% Net Loss Attributable to Century Casinos, Inc. Share
Slide 18: Canada: Century Casino Calgary
Q2 2019 Highlights –CANADA (Selected Information in CAD) CENTURY CASINO CALGARY In millions Q2 2019 Q2 2018 Change Net Operating Revenue 2.92.7 7% Operating Costs and Expenses 2.5 2.7 (4%) Earnings from Operations 0.3 — 1357% Net Earnings (Loss) Attributable to Century Casinos, Inc. Shareholders 0.6
Slide 19: Canada: Century Downs Racetrack and Casino
Q2 2019 Highlights –CANADA(Selected Information in CAD) CENTURY DOWNS RACETRACK AND CASINO In millions Q2 2019 Q2 2018 Change Net Operating Revenue 7.2 6.5 11% Operating Costs and Expenses 4.3 4.1 5% Earnings from Operations 2.9 2.4 22% Net Earnings Attributable to Century Casinos, Inc. Shareholders
Slide 20: United States (Selected Information in USD)
Q2 2019 Highlights –UNITED STATES (Selected Information in USD) In millions Q2 2019 Q2 2018 Change Net Operating Revenue 8.8 8.5 4% Operating Costs and Expenses 7.2 6.9 3% Earnings from Operations 1.6 1.5 6% Net Earnings Attributable to Century Casinos, Inc. Shareholders 1.2 1.2 7% Adjusted EBITDA*
Slide 21: United States: Century Casino & Hotel - Central City
Q2 2019 Highlights –UNITED STATES (Selected Information in USD) CENTURY CASINO & HOTEL - CENTRAL CITY In millions Q2 2019 Q2 2018 Change Net Operating Revenue 5.1 5.0 1% Operating Costs and Expenses 4.4 4.4 1% Earnings from Operations 0.7 0.7 1% Net Earnings Attributable to Century Casinos, Inc. Sha
Slide 22: United States: Century Casino & Hotel - Cripple Creek
Q2 2019 Highlights –UNITED STATES (Selected Information in USD) CENTURY CASINO & HOTEL - CRIPPLE CREEK In millions Q2 2019 Q2 2018 Change Net Operating Revenue 3.8 3.4 9% Operating Costs and Expenses 2.8 2.6 9% Earnings from Operations 1.0 0.9 10% Net Earnings Attributable to Century Casinos, Inc. S
Slide 23: Poland (Selected Information in PLN)
Q2 2019 Highlights –POLAND (Selected Information in PLN) . In millions Q2 2019Q2 2018 Change Net Operating Revenue 76.6 52.2 47% Operating Costs and Expenses 72.6 57.0 27% Earnings (Loss) from Operations 3.9 (4.9) 181% Net Earnings (Loss) Attributable to Century Casinos, Inc. Shareholders 1.6 (2.6)
Slide 24: Corporate and Other (Selected Information in USD)
Q2 2019 Highlights –CORPORATE AND OTHER (Selected Information in USD) In millions Q2 2019Q2 2018 Change Net Operating Revenue 1.5 1.3 21% Operating Costs and Expenses 6.5 4.3 53% Loss from Operations (4.9) (3.0) (66%) Net Loss Attributable to Century Casinos, Inc. Shareholders (4.8) (2.0) (138%) Adj
Slide 25: Corporate and Other: Cruise Ships and Other
Q2 2019 Highlights –CORPORATE AND OTHER (Selected Information in USD) CRUISE SHIPS AND OTHER In millions Q2 2019 Q2 2018 Change Net Operating Revenue 0.50.7 (27%) Operating Costs and Expenses 1.70.7 137% (Loss) Earnings from Operations (1.1) — (2349%) Net (Loss) Earnings Attributable to Century Casi
Slide 26: Corporate and Other: Century Casino Bath
Q2 2019 Highlights –CORPORATE AND OTHER(Selected Information in GBP) CENTURY CASINO BATH In millions Q2 2019 Q2 2018 Change Net Operating Revenue 0.7 0.4 76% Operating Costs and Expenses 1.2 1.1 12% Loss from Operations (0.5) (0.7) 26% Net Loss Attributable to Century Casinos, Inc. Shareholders (1.3
Slide 27: Additional Projects Under Development
Q2 2019 Highlights –ADDITIONAL PROJECTS UNDER DEVELOPMENT United States On June 17, 2019, the Company entered into a definitive agreement to acquire the operations of Cape Girardeau, Caruthersville and Mountaineer from Eldorado Resorts, Inc. for approximately $107.0 million (the “Acquisition”), whic
Slide 28: Appendix A - Abbreviations of Subsidiaries and Operating Segments
Appendix A –ABBREVIATIONS OF CENTURY CASINOS, INC. SUBSIDIARIES AND CERTAIN OPERATING SEGMENTS Subsidiary Abbreviation Century Casino & Hotel -Edmonton CRA Century Casino St.Albert CSA Century Casino Calgary CAL Century Downs Racetrack and Casino CDR Century Bets! CBS Century Mile Racetrack and Casi
Slide 29: Appendix A - Non-GAAP Financial Measures
Appendix A –NON-GAAP FINANCIAL MEASURES The Company supplements its consolidated financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) by using the following non-GAAP financial measures, which management believes are useful in properly understanding
Slide 30: Appendix A - Non-GAAP Financial Measures
Appendix A –NON-GAAP FINANCIAL MEASURES The Company defines Adjusted EBITDA as net earnings (loss) attributable to Century Casinos, Inc. shareholders before interest expense (income), net, income taxes (benefit), depreciation and amortization, non-controlling interests net earnings (loss) and transa
Slide 31: Appendix A - Non-GAAP Financial Measures
Appendix A –NON-GAAP FINANCIAL MEASURES The impact of foreign exchange rates is highly variable and difficult to predict. The Company uses a Constant Currency basis to show the impact from foreign exchange rates on current period financial information compared to prior period financial information u
Slide 32: Reconciliation of Adjusted EBITDA - Canada
Appendix A –NON-GAAP FINANCIAL MEASURES Reconciliation of Adjusted EBITDA (in thousands) -CANADA For the three months ended June 30, 2019 in CAD CRA CSA CAL CDR CBS CMR Total Canada Net Operating Revenue 6,695$ 3,159$ 2,852$ 7,169$ 895$ 8,642$ 29,412$ Net earnings (loss) attributable to Century Casi
Slide 33: Reconciliation of Adjusted EBITDA - Canada continued
Appendix A –NON-GAAP FINANCIAL MEASURES Reconciliation of Adjusted EBITDA (in thousands) –CANADA continued For the three months ended June 30, 2018 in CAD CRA CSA CAL CDR CBS CMR Total Canada Net Operating Revenue 6,768$ 2,898$ 2,672$ 6,463$ 996$ — 19,797$ Net earnings (loss) attributable to Century
Slide 34: Reconciliation of Adjusted EBITDA - United States
Appendix A –NON-GAAP FINANCIAL MEASURES Reconciliation of Adjusted EBITDA (in thousands) –UNITED STATES For the three months ended June 30, 2019 in USD Central City Cripple CreekTotal United States Net Operating Revenue 5,057$ 3,752$ 8,809$ Net earnings attributable to Century Casinos, Inc. sharehol
Slide 35: Reconciliation of Adjusted EBITDA - Poland
Appendix A –NON-GAAP FINANCIAL MEASURES Reconciliation of Adjusted EBITDA (in thousands) –POLAND For the three months ended June 30, 2019 2018 in PLN Net Operating Revenue 76,573PLN 52,154PLN Net earnings (loss) attributable to Century Casinos, Inc. shareholders 1,622 (2,613) Interest expense (incom
Slide 36: Reconciliation of Adjusted EBITDA - Corporate and Other
Appendix A –NON-GAAP FINANCIAL MEASURES Reconciliation of Adjusted EBITDA (in thousands) –CORPORATE AND OTHER in USD For the three months ended June 30, 2019 Cruise Ships and Other Century Casino Bath Corporate Other Total Corporate and Other Net Operating Revenue 538$ 902$ 101$ 1,541$ Net loss attr
Slide 37: Reconciliation of Adjusted EBITDA - Century Casino Bath
Appendix A –NON-GAAP FINANCIAL MEASURES Reconciliation of Adjusted EBITDA (in thousands) –CENTURY CASINO BATH in GBP For the three months ended June 30, 2019 2018 Net Operating Revenue 700GBP 398GBP Net loss attributable to Century Casinos, Inc. shareholders (1,278) (663) Interest expense (income),
Slide 38: Reconciliation of Net Debt
Appendix A –NON-GAAP FINANCIAL MEASURES Reconciliation of Net Debt (in thousands) Amounts in thousands June 30, 2019 June 30, 2018 Total long-term debt, including current portion$ 72,057 $ 54,296 Deferred financing costs 411 208 Total principal$ 72,468 $ 54,504 Less: Cash and cash equivalents$ 47,00
Slide 39: Reconciliation of Net Debt
Appendix A –NON-GAAP FINANCIAL MEASURES Reconciliation of Net Debt (in thousands) Amounts in thousands December 31, 2011 2012 2013 2014 2015 2016 2017 2018 Total long-term debt, including current portion$ 8,999 $ 3,079 $ 33,738 $ 37,894 $ 36,520 $ 55,609 $ 56,713 $ 59,523 Deferred financing costs 10