Century Casinos, Inc. · NASDAQ:CNTY
Century Casinos — Q3 2019 Earnings Presentation
42 slides from Century Casinos's earnings presentation, Nov 4, 2019
Slide 1: Century Casinos Financial Results Q3 2019
CENTURY CASINOS Financial Results Q3 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: Q3 2019 Net Operating Revenue by Reportable Segment and Operating Segment
Q3 2019 Net Operating Revenue by Reportable Segment and Operating Segment (in USD) Excluding Corporate Other Operating Segment CCB, Ships & Other 2% Canada Poland 42% 39% Ships & CCB Other CRA 1% 1% 10% CSA 4% CAL 4% CPL 39% CDR 11% CBS 1% CMR 12% United States CRC CTL 17% 7% 10% 4
Slide 5: Q3 2019 Earnings (Loss) from Operations by Segment
Q3 2019 Earnings (Loss) from Operations by Reportable Segment and Operating Segment (in USD) Excluding Corporate Other Operating Segment CCB, Ships & Other -6% Poland 24% Canada 54% Ships & CCB -9% Other 3% CRA 25% CPL 24% CSA 10% CAL -1% United States 28% CRC 16% CDR 26% CTL 12% CMR -7%CBS 1% 5
Slide 6: Q3 2019 Net Earnings (Loss) Attributable to Shareholders by Segment
Q3 2019 Net Earnings (Loss) Attributable to Century Casinos, Inc. Shareholders by Reportable Segment and Operating Segment (in USD) Excluding Corporate Other Operating Segment CCB, Ships & Other -16% Canada 50% Poland 24% Ships & Other 4% CCB -20% CRA 43% CPL 24% CSA 15% CRC 24% CAL -10% United Stat
Slide 7: Q3 2019 Adjusted EBITDA by Reportable Segment and Operating Segment
Q3 2019 Adjusted EBITDA* by Reportable Segment and Operating Segment (in USD) Excluding Corporate Other Operating Segment CCB, Ships & Other -3% Poland 26% Canada Ships & 52% CCB Other -5% 2% CRA 19% CPL 26% CSA 8% CAL 1% United States 25% CDR CRC 22% 13% CTL CBSCMR 12% 1% 1% *Adjusted EBITDA is a n
Slide 8: Net Operating Revenue per Quarter (in USD)
Net Operating Revenue per Quarter (in USD) 60 52.4 52.9 50 45.6 45.1 43.6 40.6 41.0 39.6 39.3 40 36.4 37.9 37.3 36.3 35.2 33.2 33.5 34.5 31.9 30.4 30 20 10 0 Q1 Q2 Q3 Q4 2015 2016 2017 2018 2019 8
Slide 9: Balance Sheet
Balance Sheet (Selected Information in USD) In millions (except BVPS) September 30, 2019 December 31, 2018 Change Total Assets 339.9 278.8 22% Total Debt 71.1 59.5 19% Book Value per Share* 6.09 6.00 1% Net Debt** 27.4 14.4 *Book Value per Share is defined as total Century Casinos, Inc. shareholders
Slide 10: Income Statement
Income Statement (Selected Information in USD) In millions (except EPS) Q3 2019 Q3 2018 Change Net Operating Revenue 52.9 43.6 22% Earnings from Operations 3.5 3.2 8% Net Earnings Attributable to Century Casinos, Inc. Shareholders 0.5 1.6 (71%) Adjusted EBITDA* 7.1 6.4 12% Basic Earnings per Share 0
Slide 11: Constant Currency Results (in USD)
Constant Currency Results (in USD) In millions Q3 2019 Q3 2018 Change Net Operating Revenue as reported (GAAP) 52.9 43.6 22% Foreign currency impact vs. 2018 1.3 Net Operating Revenue constant currency (non-GAAP)* 54.2 43.6 24% Earnings from Operations as reported (GAAP) 3.5 3.2 8% Foreign currency
Slide 12: Constant Currency Results: Net Earnings Attributable to Shareholders
Constant Currency Results (in USD) In millions Q3 2019 Q3 2018 Change Net Earnings Attributable to Century Casinos, Inc. Shareholders as reported (GAAP) 0.5 1.6 (71%) Foreign currency impact vs. 2018 — Net Earnings Attributable to Century Casinos, Inc. Shareholders constant currency (non-GAAP)* 0.5
Slide 13: Debt and Net Debt to Adjusted EBITDA
Debt and Net Debt to Adjusted EBITDA* (in USD) As of September 30, 2019 and for the years ended December 31, 2011-2018 4x 3.0x 3x 2.7x 2.7x 2.5x 2.2x 2.2x 2x 1.6x 1.1x 1.0x 1x 0.8x 0.5x 0.7x 0.6x 0.3x 0.3x 0x 2011 2012 2013 2014 2015 2016 2017 2018 2019 -1x -0.7x -1.5x -2x -2.0x -3x Debt to Adjusted
Slide 14: Q3 2019 Highlights – Canada
Q3 2019 Highlights – CANADA (Selected Information in CAD) In millions Q3 2019 Q3 2018 Change Net Operating Revenue 29.1 20.5 42% Operating Costs and Expenses 24.5 15.8 55% Earnings from Operations 4.7 4.7 2% Net Earnings Attributable to Century Casinos, Inc. Shareholders 1.7 2.8 (39%) Adjusted EBITD
Slide 15: Century Casino & Hotel - Edmonton
Q3 2019 Highlights – CANADA (Selected Information in CAD) CENTURY CASINO & HOTEL - EDMONTON In millions Q3 2019 Q3 2018 Change Net Operating Revenue 6.8 6.7 1% Operating Costs and Expenses 4.7 4.6 1% Earnings from Operations 2.2 2.1 2% Net Earnings Attributable to Century Casinos, Inc. Shareholders
Slide 16: Century Casino St. Albert
Q3 2019 Highlights – CANADA (Selected Information in CAD) CENTURY CASINO ST. ALBERT In millions Q3 2019 Q3 2018 Change Net Operating Revenue 3.0 2.9 3% Operating Costs and Expenses 2.1 2.2 (1%) Earnings from Operations 0.9 0.8 12% Net Earnings Attributable to Century Casinos, Inc. Shareholders 0.7 0
Slide 17: Century Mile Racetrack and Casino
Q3 2019 Highlights – CANADA (Selected Information in CAD) CENTURY MILE RACETRACK AND CASINO In millions Q3 2019 Q3 2018 Change Net Operating Revenue 8.1 — 100% Operating Costs and Expenses 8.7 0.6 1379% Loss from Operations (0.6) (0.6) (4%) Net Loss Attributable to Century Casinos, Inc. Shareholders
Slide 18: Century Casino Calgary
Q3 2019 Highlights – CANADA (Selected Information in CAD) CENTURY CASINO CALGARY In millions Q3 2019 Q3 2018 Change Net Operating Revenue 2.5 2.4 3% Operating Costs and Expenses 2.5 2.6 (3%) Loss from Operations (0.1) (0.2) 69% Net Loss Attributable to Century Casinos, Inc. Shareholders (0.5) (0.1)
Slide 19: Century Downs Racetrack and Casino
Q3 2019 Highlights – CANADA (Selected Information in CAD) CENTURY DOWNS RACETRACK AND CASINO In millions Q3 2019 Q3 2018 Change Net Operating Revenue 8.0 7.6 6% Operating Costs and Expenses 5.8 5.0 15% Earnings from Operations 2.2 2.6 (13%) Net Earnings Attributable to Century Casinos, Inc. Sharehol
Slide 20: Q3 2019 Highlights – United States
Q3 2019 Highlights – UNITED STATES (Selected Information in USD) In millions Q3 2019 Q3 2018 Change Net Operating Revenue 9.2 9.4 (2%) Operating Costs and Expenses 7.4 7.2 2% Earnings from Operations 1.8 2.1 (15%) Net Earnings Attributable to Century Casinos, Inc. Shareholders 1.3 1.6 (15%) Adjusted
Slide 21: Century Casino & Hotel - Central City
Q3 2019 Highlights – UNITED STATES (Selected Information in USD) CENTURY CASINO & HOTEL - CENTRAL CITY In millions Q3 2019 Q3 2018 Change Net Operating Revenue 5.4 5.2 3% Operating Costs and Expenses 4.6 4.4 3% Earnings from Operations 0.8 0.8 1% Net Earnings Attributable to Century Casinos, Inc. Sh
Slide 22: Century Casino & Hotel - Cripple Creek
Q3 2019 Highlights – UNITED STATES (Selected Information in USD) CENTURY CASINO & HOTEL - CRIPPLE CREEK In millions Q3 2019 Q3 2018 Change Net Operating Revenue 3.8 4.1 (7%) Operating Costs and Expenses 2.8 2.8 0% Earnings from Operations 1.0 1.3 (24%) Net Earnings Attributable to Century Casinos, I
Slide 23: Q3 2019 Highlights – Poland
Q3 2019 Highlights – POLAND (Selected Information in PLN) In millions Q3 2019 Q3 2018 Change Net Operating Revenue 79.0 61.9 28% Operating Costs and Expenses 72.9 61.9 18% Earnings from Operations 6.1 0.1 11035% Net Earnings (Loss) Attributable to Century Casinos, Inc. Shareholders 2.9 (0.4) 825% Ad
Slide 24: Q3 2019 Highlights – Corporate and Other
Q3 2019 Highlights – CORPORATE AND OTHER (Selected Information in USD) In millions Q3 2019 Q3 2018 Change Net Operating Revenue 1.3 1.8 (26%) Operating Costs and Expenses 4.8 4.3 11% Loss from Operations (3.5) (2.5) (37%) Net Loss Attributable to Century Casinos, Inc. Shareholders (3.3) (1.5) (114%)
Slide 25: Cruise Ships and Other
Q3 2019 Highlights – CORPORATE AND OTHER (Selected Information in USD) CRUISE SHIPS AND OTHER In millions Q3 2019 Q3 2018 Change Net Operating Revenue 0.6 0.7 (16%) Operating Costs and Expenses 0.4 0.6 (34%) Earnings from Operations 0.2 0.1 128% Net Earnings Attributable to Century Casinos, Inc. Sha
Slide 26: Century Casino Bath
Q3 2019 Highlights – CORPORATE AND OTHER (Selected Information in GBP) CENTURY CASINO BATH In millions Q3 2019 Q3 2018 Change Net Operating Revenue 0.6 0.8 (29%) Operating Costs and Expenses 1.1 1.3 (17%) Loss from Operations (0.5) (0.5) (5%) Net Loss Attributable to Century Casinos, Inc. Shareholde
Slide 27: Additional Projects Under Development – United States
Q3 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”), whi
Slide 28: Additional Projects Under Development – Bermuda
Q3 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, Ber
Slide 29: 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 C
Slide 30: 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 31: 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 32: 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 33: Reconciliation – Canada, Q3 2019
Appendix A – NON-GAAP FINANCIAL MEASURES Reconciliation of Adjusted EBITDA (in thousands) - CANADA For the three months ended September 30, 2019 Total in CAD CRA CSA CAL CDR CBS CMR Canada Net Operating Revenue $ 6,810 $ 2,999 $ 2,475 $ 8,010 $ 744 $ 8,101 $ 29,139 Net earnings (loss) attributable t
Slide 34: Reconciliation – Canada continued, Q3 2018
Appendix A – NON-GAAP FINANCIAL MEASURES Reconciliation of Adjusted EBITDA (in thousands) – CANADA continued For the three months ended September 30, 2018 Total in CAD CRA CSA CAL CDR CBS CMR Canada Net Operating Revenue $ 6,734 $ 2,923 $ 2,410 $ 7,574 $ 850 — $ 20,491 Net earnings (loss) attributab
Slide 35: Reconciliation – United States
Appendix A – NON-GAAP FINANCIAL MEASURES Reconciliation of Adjusted EBITDA (in thousands) – UNITED STATES For the three months ended September 30, 2019 Total United in USD Central City Cripple Creek States Net Operating Revenue $ 5,370 $ 3,829 $ 9,199 Net earnings attributable to Century Casinos, In
Slide 36: Reconciliation – Poland
Appendix A – NON-GAAP FINANCIAL MEASURES Reconciliation of Adjusted EBITDA (in thousands) – POLAND For the three months ended September 30, in PLN 2019 2018 Net Operating Revenue PLN 78,995 PLN 61,917 Net earnings (loss) attributable to Century Casinos, Inc. shareholders 2,872 (396) Interest expense
Slide 37: Reconciliation – Corporate and Other
Appendix A – NON-GAAP FINANCIAL MEASURES Reconciliation of Adjusted EBITDA (in thousands) – CORPORATE AND OTHER For the three months ended September 30, 2019 Cruise Ships and Century Casino Total Corporate in USD Other Bath Corporate Other and Other Net Operating Revenue $ 598 $ 715 — $ 1,313 Net ea
Slide 38: Reconciliation – Century Casino Bath
Appendix A – NON-GAAP FINANCIAL MEASURES Reconciliation of Adjusted EBITDA (in thousands) – CENTURY CASINO BATH For the three months ended September 30, in GBP 2019 2018 Net Operating Revenue GBP 581 GBP 814 Net loss attributable to Century Casinos, Inc. shareholders (800) (610) Interest expense (in
Slide 39: Reconciliation of Net Debt
Appendix A – NON-GAAP FINANCIAL MEASURES Reconciliation of Net Debt (in thousands) Amounts in thousands September 30, 2019 September 30, 2018 Total long-term debt, including current portion $ 71,069 $ 53,285 Deferred financing costs 387 250 Total principal $ 71,456 $ 53,535 Less: Cash and cash equiv
Slide 40: Reconciliation of Net Debt
Appendix A – NON-GAAP FINANCIAL MEASURES Reconciliation of Net Debt (in thousands) December 31, Amounts in thousands 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
Slide 41: Reconciliation of LTM Results – Net Operating Revenue
Appendix A – NON-GAAP FINANCIAL MEASURES Reconciliation of LTM Results Net Operating Revenue Acquired Properties Pro Forma (1) Amounts in millions Century Combined (2) For the three months ended: December 31, 2018 $ 45.1 March 31, 2019 45.6 June 30, 2019 52.4 September 30, 2019 52.9 LTM Results $ 19
Slide 42: Reconciliation of LTM Results – Adjusted EBITDA
Appendix A – NON-GAAP FINANCIAL MEASURES Reconciliation of LTM Results Adjusted EBITDA Pro Forma Pro Forma Acquired Pro Forma Combined VICI Combined Properties Adjustments EBITDAR Lease EBITDA (1) (2) (3)(4) (3) Amounts in thousands Century Payment For the three months ended: December 31, 2018 $ 5.8