Century Casinos, Inc. · NASDAQ:CNTY
Century Casinos — FY2020 Earnings Presentation
32 slides from Century Casinos's earnings presentation, Mar 12, 2021
Slide 1: Century Casinos, Inc. Financial Results 2020
CENTURY CASINOS, INC. Financial Results 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. The COVID-19 pandemic had an adverse effect on our 2020 results of operations and financial condition, and we expect the situation will continue to have an adverse impact
Slide 5: 2020 Net Operating Revenue by Reportable Segment and Operating Segment
2020 NET OPERATING REVENUE by Reportable Segment and Operating Segment (in USD) Excluding Corporate and Other Reportable Segment Poland Canada 18% 17% Edmonton Poland 10% 18% Calgary 7% Colorado 9% Missouri 26% United States 65% West Virginia 30% 5
Slide 6: 2020 Earnings (Loss) from Operations by Segment
2020 EARNINGS (LOSS) FROM OPERATIONS by Reportable Segment and Operating Segment (in USD) Excluding Corporate and Other Reportable Segment Poland -52% United States Poland Edmonton -22% -52% -29% Calgary 203% Canada Missouri 174% -205% West Virginia 47% Colorado 136% 6
Slide 7: 2020 Net (Loss) Earnings Attributable to Shareholders by Segment
2020 NET (LOSS) EARNINGS ATTRIBUTABLE TO CENTURY CASINOS, INC. SHAREHOLDERS by Reportable Segment and Operating Segment (in USD) Excluding Corporate and Other Reportable Segment Poland Canada -5% 9% Edmonton Poland -15% -5% Calgary 24% Colorado Missouri 23% -107% United States -104% West Virginia -2
Slide 8: 2020 Adjusted EBITDA by Segment
2020 ADJUSTED EBITDA* by Reportable Segment and Operating Segment (in USD) Excluding Corporate and Other Reportable Segment Poland 1% Canada 19% Poland Edmonton 1% 9% Calgary 10% Missouri 48% Colorado 16% United States 80% West Virginia 16% *Adjusted EBITDA is a non-GAAP financial measure. See Appen
Slide 9: Net Operating Revenue per Quarter
NET OPERATING REVENUE PER QUARTER (in USD) 120 100 95.7 87.7 84.8 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) December 31, 2020 December 31, 2019 Change Total Assets 680.8 726.9 (6%) Total Debt 184.6 179.0 3% Book Value per Share* 3.99 5.54 (28%) Net Debt** 130.4 134.2 *Book Value per Share is defined as total Century Casinos, Inc. shareh
Slide 11: Income Statement
INCOME STATEMENT (Selected Information in USD) In millions 2020 2019 Change Net Operating Revenue 304.3 218.2 39% Loss from Operations (0.1) (5.2) 98% Net Loss Attributable to Century Casinos, Inc. Shareholders (48.0) (19.2) (151%) Adjusted EBITDA* 48.4 30.3 60% Basic and Diluted Loss per Share (1.6
Slide 12: Debt and Net Debt to Adjusted EBITDA
DEBT AND NET DEBT TO ADJUSTED EBITDA* (in USD) For the years ended December 31, 2012-2020 9x 7.9x 8x 7x 6.8x 6x 5.6x 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 -0.7x -2x -2.0x -3x 2012 2013 2014 2015 2016 2017 2018 2019 2020 Debt to Adjusted EBITDA Net Deb
Slide 13: 2020 Highlights – United States
2020 HIGHLIGHTS – UNITED STATES (Selected Information in USD) In millions 2020 2019 Change Net Operating Revenue 198.3 50.0 297% Operating Costs and Expenses 199.5 40.5 392% (Loss) Earnings from Operations (1.2) 9.5 (113%) Net (Loss) Earnings Attributable to Century Casinos, Inc. Shareholders (30.6)
Slide 14: 2020 Highlights – Colorado
2020 HIGHLIGHTS – COLORADO (Selected Information in USD, in millions) Net Operating Revenue Adjusted EBITDA* 12.0 6.0 10.4 9.4 9.2 9.5 4.8 10.0 5.0 8.5 8.8 7.7 8.1 7.9 7.8 8.0 6.7 4.0 3.4 6.0 3.0 2.7 2.1 2.2 2.3 4.0 2.0 1.7 1.9 1.6 1.6 2.0 0.8 2.0 1.0 0.3 0.0 0.0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2018 2019 20
Slide 15: 2020 Highlights – West Virginia
2020 Highlights – WEST VIRGINIA (Selected Information in USD, in millions) Net Operating Revenue Adjusted EBITDA* 30.0 28.4 6.0 25.1 24.5 4.8 25.0 5.0 20.0 4.0 3.3 15.0 12.2 3.0 1.8 10.0 8.7 2.0 1.3 5.0 1.0 0.0 0.0 Q1 Q2 Q3 Q4** -1.0 Q1 Q2 -0.5 Q3 Q4** 2018 2019 2020 2018 2019 2020 As of December 3
Slide 16: 2020 Highlights – Missouri
2020 Highlights – MISSOURI (Selected Information in USD, in millions) Net Operating Revenue Adjusted EBITDA* 30.0 12.0 10.4 23.9 24.5 9.7 25.0 21.6 10.0 20.0 8.0 6.1 15.0 6.0 9.6 10.0 7.4 4.0 2.6 2.3 5.0 2.0 0.0 0.0 Q1 Q2 Q3 Q4** Q1 Q2 Q3 Q4** 2018 2019 2020 2018 2019 2020 As of December 31, 2020,
Slide 17: 2020 Highlights – Canada
2020 Highlights – CANADA (Selected Information in CAD) In millions 2020 2019 Change Net Operating Revenue 66.8 107.0 (38%) Operating Costs and Expenses 63.6 85.6 (26%) Gain from Sale of Casino Operations (8.4) — 100% Earnings from Operations 11.6 21.4 (46%) Net Earnings Attributable to Century Casin
Slide 18: 2020 Highlights – Edmonton
2020 Highlights – EDMONTON (Selected Information in CAD, in millions) Net Operating Revenue Adjusted EBITDA* 20.0 18.5 17.9 5.0 16.6 4.0 3.9 4.0 3.5 3.7 15.0 13.1 13.5 3.1 3.2 3.3 3.2 11.8 2.9 10.4 10.2 3.0 2.5 9.5 9.7 9.7 10.0 2.0 1.4 5.0 3.9 1.0 0.0 0.0 Q1 Q2 -0.2 Q3 Q4 Q1 Q2 Q3 Q4 -1.0 2018 2019
Slide 19: 2020 Highlights – Calgary
2020 Highlights – CALGARY (Selected Information in CAD, in millions) Net Operating Revenue Adjusted EBITDA* 12.0 10.9 10.811.2 5.0 9.9 10.1 10.3 10.2 10.0 9.1 3.8 3.9 8.5 8.6 4.0 3.2 3.2 8.0 2.9 3.0 2.9 2.9 2.8 6.4 3.0 2.5 2.7 6.0 2.0 4.0 2.6 2.0 1.0 0.0 0.0 0.0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2018 2019 202
Slide 20: 2020 Highlights – Poland
2020 Highlights – POLAND (Selected Information in PLN) In millions 2020 2019 Change Net Operating Revenue 209.3 314.3 (33%) Operating Costs and Expenses 220.8 289.3 (24%) (Loss) Earnings from Operations (11.5) 24.9 (146%) Net (Loss) Earnings Attributable to Century Casinos, Inc. Shareholders (4.2) 1
Slide 21: 2020 Highlights – Poland
2020 Highlights – POLAND (Selected Information in PLN, in millions) Net Operating Revenue Adjusted EBITDA* 100.0 15.0 83.9 76.6 79.0 9.6 9.6 80.0 74.8 73.5 9.3 66.6 10.0 7.6 61.9 62.1 7.2 6.5 59.1 60.0 52.2 51.0 4.1 3.8 5.0 3.3 40.0 0.6 29.6 0.0 20.0 Q1 Q2 Q3 Q4 -0.9 -5.0 0.0 -6.3 Q1 Q2 Q3 Q4 -10.0
Slide 22: 2020 Highlights – Corporate and Other
2020 Highlights – CORPORATE AND OTHER (Selected Information in USD) In millions 2020 2019 Change Net Operating Revenue 1.4 5.7 (75%) Operating Costs and Expenses 6.9 42.4 (84%) Loss from Operations (5.5) (36.7) 85% Net Loss Attributable to Century Casinos, Inc. Shareholders (18.6) (35.1) 47% Adjuste
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 (loss) earnings 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 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 27: 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, 2020 Total United in USD Colorado West Virginia Missouri States Net Operating Revenue $ 28,609 $ 90,161 $ 79,574 $ 198,344 Net earnings (loss) attributable to Cen
Slide 28: Reconciliation of Adjusted EBITDA – Canada
Appendix A – NON-GAAP FINANCIAL MEASURES Reconciliation of Adjusted EBITDA (in thousands) - CANADA For the year ended December 31, 2020 in CAD Edmonton Calgary Total Canada Net Operating Revenue $ 40,716 $ 26,104 $ 66,820 Net (loss) earnings attributable to Century Casinos, Inc. shareholders (4,385)
Slide 29: 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 2020 2019 Net Operating Revenue PLN 209,303 PLN 314,264 Net (loss) earnings attributable to Century Casinos, Inc. shareholders (4,166) 12,838 Interest expense (in
Slide 30: 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 2020 2019 Net Operating Revenue $ 1,413 $ 5,685 Net loss attributable to Century Casinos, Inc. shareholders (18,609) (35,115) Interest expense (incom
Slide 31: 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) Year Ended Year Ended in USD Q1 2020 Q2 2020 Q3 2020 Q4 2020 December 31, 2020 December 31, 2019 Net (loss) earnings attributable to C
Slide 32: Reconciliation of Net Debt
Appendix A – NON-GAAP FINANCIAL MEASURES Reconciliation of Net Debt (in thousands) Amounts in thousands December 31, 2020 December 31, 2019 Total long-term debt, including current portion $ 184,550 $ 178,963 Deferred financing costs 9,261 9,998 Total principal $ 193,811 $ 188,961 Less: Cash and cash