Century Casinos, Inc. · NASDAQ:CNTY
Century Casinos — Q2 2020 Earnings Presentation
33 slides from Century Casinos's earnings presentation, Aug 7, 2020
Slide 1: Century Casinos, Inc. Financial Results Q2 2020
CENTURY CASINOS, INC. Financial Results Q2 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. Between March 13, 2020 and March 17, 2020, the Company closed all of its casinos, hotels and other facilities to comply with quarantines issued by governments to contain t
Slide 5: Q2 2020 Net Operating Revenue by Reportable Segment and Operating Segment
Q2 2020 Net Operating Revenue by Reportable Segment and Operating Segment (in USD) Excluding Corporate and Other Reportable Segment Canada 13% Poland 20% Edmonton 8% Poland Calgary 20% 5% Colorado 6% United States Missouri 67% 27% West Virginia 34% 5
Slide 6: Q2 2020 Loss from Operations by Reportable Segment and Operating Segment
Q2 2020 Loss from Operations by Reportable Segment and Operating Segment (in USD) Excluding Corporate and Other Reportable Segment Canada -17% Poland -33% Edmonton -12% Calgary -5% Poland -33% Colorado -3% United States -50% Missouri West Virginia -11% -36% 6
Slide 7: Q2 2020 Net Loss by Reportable Segment and Operating Segment
Q2 2020 Net Loss Attributable to Century Casinos, Inc. Shareholders by Reportable Segment and Operating Segment (in USD) Excluding Corporate and Other Reportable Segment Poland -9% Canada -14% Edmonton Poland -9% Calgary -9% -5% Colorado -2% Missouri -42% United States West Virginia -77% -33% 7
Slide 8: Q2 2020 Adjusted EBITDA by Reportable Segment and Operating Segment
Q2 2020 Adjusted EBITDA* by Reportable Segment and Operating Segment (in USD) Excluding Corporate and Other Reportable Segment Canada 0% Poland -237% Edmonton -6% Calgary 6% Colorado 43% West Virginia Poland -83% United States -237% 337% Missouri 377% *Adjusted EBITDA is a non-GAAP financial measure
Slide 9: Net Operating Revenue per Quarter
Net Operating Revenue per Quarter (in USD) 100 90 87.7 80 70 67.2 60 52.4 52.9 50 45.6 45.1 43.6 40.6 39.6 41.0 39.3 40 36.4 37.3 36.1 36.3 35.2 34.5 33.2 30 20 10 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) June 30, 2020 December 31, 2019 Change Total Assets 665.4 726.9 (8%) Total Debt 194.1 179.0 8% Book Value per Share* 3.31 5.54 (40%) Net Debt** 152.4 134.2 *Book Value per Share is defined as total Century Casinos, Inc. shareholde
Slide 11: Income Statement
Income Statement (Selected Information in USD) In millions (except EPS) Q2 2020 Q2 2019 Change Net Operating Revenue 36.1 52.4 (31%) (Loss) Earnings from Operations (2.1) 2.6 (181%) Net Loss Attributable to Century Casinos, Inc. Shareholders (12.6) (0.6) (2131%) Adjusted EBITDA* (1.8) 6.7 (126%) Bas
Slide 12: Constant Currency Results (in USD)
Constant Currency Results (in USD) In millions Q2 2020 Q2 2019 Change Net Operating Revenue as reported (GAAP) 36.1 52.4 (31%) Foreign currency impact vs. 2019 0.5 Net Operating Revenue constant currency (non-GAAP)* 36.6 52.4 (30%) (Loss) Earnings from Operations as reported (GAAP) (2.1) 2.6 (181%)
Slide 13: Constant Currency Results (in USD)
Constant Currency Results (in USD) In millions Q2 2020 Q2 2019 Change Net Loss Attributable to Century Casinos, Inc. Shareholders as reported (GAAP) (12.6) (0.6) (2131%) Foreign currency impact vs. 2019 0.4 Net Loss Attributable to Century Casinos, Inc. Shareholders constant currency (non-GAAP)* (12
Slide 14: Debt and Net Debt to Adjusted EBITDA
Debt and Net Debt to Adjusted EBITDA* (in USD) As of June 30, 2020 and for the years ended December 31, 2012-2019 9x 7.8x 8x 7x 5.9x 6.2x 6x 5x 4.4x 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 2012 2013 2014 2015 2016 2017 2018 2019 2020 -1x -0.7x -2x -2.0x -3x Debt to
Slide 15: June 2020 Highlights – United States
June 2020 Highlights – UNITED STATES (Selected Information in USD) In millions June 2020 June 2019 Change Net Operating Revenue 23.6 3.0 689% Operating Costs and Expenses 16.7 2.4 599% Earnings from Operations 6.9 0.6 1047% Net Earnings Attributable to Century Casinos, Inc. Shareholders 4.6 0.5 769%
Slide 16: June 2020 Highlights – United States Colorado
June 2020 Highlights – UNITED STATES (Selected Information in USD) COLORADO In millions June 2020 June 2019 Change Net Operating Revenue 2.0 3.0 (32%) Operating Costs and Expenses 1.0 2.4 (58%) Earnings from Operations 1.0 0.1 822% Net Earnings Attributable to Century Casinos, Inc. Shareholders 1.0
Slide 17: June 2020 Highlights – United States West Virginia
June 2020 Highlights – UNITED STATES (Selected Information in USD) WEST VIRGINIA In millions June 2020 Net Operating Revenue 12.0 Operating Costs and Expenses 9.7 Earnings from Operations 2.3 Net Earnings Attributable to Century Casinos, Inc. Shareholders 1.6 Adjusted EBITDA* 3.3 Adjusted EBITDA Mar
Slide 18: June 2020 Highlights – United States Missouri
June 2020 Highlights – UNITED STATES (Selected Information in USD) MISSOURI In millions June 2020 Net Operating Revenue 9.6 Operating Costs and Expenses 6.0 Earnings from Operations 3.6 Net Earnings Attributable to Century Casinos, Inc. Shareholders 2.0 Adjusted EBITDA* 5.1 Adjusted EBITDA Margin* 5
Slide 19: June 2020 Highlights – Canada
June 2020 Highlights – CANADA (Selected Information in CAD) In millions June 2020 June 2019 Change Net Operating Revenue 4.9 9.7 (49%) Operating Costs and Expenses 3.8 7.6 (50%) Earnings from Operations 1.0 2.1 (53%) Net Earnings Attributable to Century Casinos, Inc. Shareholders 2.7 2.3 18% Adjuste
Slide 20: June 2020 Highlights – Canada Edmonton
June 2020 Highlights – CANADA (Selected Information in CAD) EDMONTON In millions June 2020 June 2019 Change Net Operating Revenue 2.9 6.0 (51%) Operating Costs and Expenses 2.4 5.0 (51%) Earnings from Operations 0.5 1.1 (73%) Net Earnings Attributable to Century Casinos, Inc. Shareholders 2.5 1.7 43
Slide 21: June 2020 Highlights – Canada Calgary
June 2020 Highlights – CANADA (Selected Information in CAD) CALGARY In millions June 2020 June 2019 Change Net Operating Revenue 1.9 3.7 (48%) Operating Costs and Expenses 1.5 2.6 (43%) Earnings from Operations 0.5 1.1 (53%) Net Earnings Attributable to Century Casinos, Inc. Shareholders 0.2 0.6 (64
Slide 22: June 2020 Highlights – Poland
June 2020 Highlights – POLAND (Selected Information in PLN) In millions June 2020 June 2019 Change Net Operating Revenue 21.8 26.7 (18%) Operating Costs and Expenses 19.1 25.9 (26%) Earnings from Operations 0.3 0.8 (66%) Net Earnings Attributable to Century Casinos, Inc. Shareholders 1.1 0.3 243% Ad
Slide 23: June 2020 Highlights – Corporate and Other
June 2020 Highlights – CORPORATE AND OTHER (Selected Information in USD) In millions June 2020 June 2019 Change Net Operating Revenue — 0.5 (91%) Operating Costs and Expenses 1.0 2.9 (63%) Loss from Operations (1.0) (2.4) (59%) Net Loss Attributable to Century Casinos, Inc. Shareholders (2.9) (3.2)
Slide 24: 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 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: Reconciliation – United States
Appendix A – NON-GAAP FINANCIAL MEASURES Reconciliation of Adjusted EBITDA (in thousands) – UNITED STATES June 2020 Total United in USD Colorado West Virginia Missouri States Net Operating Revenue $ 2,023 $ 11,972 $ 9,645 $ 23,640 Net earnings attributable to Century Casinos, Inc. 1,024 1,640 1,960
Slide 29: Reconciliation – Canada
Appendix A – NON-GAAP FINANCIAL MEASURES Reconciliation of Adjusted EBITDA (in thousands) - CANADA June 2020 in CAD Edmonton Calgary Total Canada Net Operating Revenue $ 2,949 $ 1,946 $ 4,895 Net earnings attributable to Century Casinos, Inc. shareholders 2,483 178 2,661 Interest expense (income), n
Slide 30: Reconciliation – Canada continued
Appendix A – NON-GAAP FINANCIAL MEASURES Reconciliation of Adjusted EBITDA (in thousands) – CANADA continued June 2019 in CAD Edmonton Calgary Total Canada Net Operating Revenue $ 6,032 $ 3,712 $ 9,744 Net earnings attributable to Century Casinos, Inc. shareholders 1,735 555 2,290 Interest expense (
Slide 31: Reconciliation – Poland
Appendix A – NON-GAAP FINANCIAL MEASURES Reconciliation of Adjusted EBITDA (in thousands) – POLAND June in PLN 2020 2019 Net Operating Revenue PLN 21,823 PLN 26,710 Net earnings attributable to Century Casinos, Inc. shareholders 1,139 321 Interest expense (income), net 11 55 Income (benefit) taxes (
Slide 32: Reconciliation – Corporate and Other
Appendix A – NON-GAAP FINANCIAL MEASURES Reconciliation of Adjusted EBITDA (in thousands) – CORPORATE AND OTHER June in USD 2020 2019 Net Operating Revenue $ 39 $ 429 Net loss attributable to Century Casinos, Inc. shareholders (2,903) (3,175) Interest expense (income), net 1,033 3 Income taxes 1,014
Slide 33: Reconciliation of Net Debt
Appendix A – NON-GAAP FINANCIAL MEASURES Reconciliation of Net Debt (in thousands) Amounts in thousands June 30, 2020 June 30, 2019 Total long-term debt, including current portion $ 194,149 $ 72,057 Deferred financing costs 9,846 411 Total principal $ 203,995 $ 72,468 Less: Cash and cash equivalents