Century Casinos, Inc. · NASDAQ:CNTY
Century Casinos — Q2 2022 Earnings Presentation
44 slides from Century Casinos's earnings presentation, Aug 5, 2022
Slide 1: Century Casinos Financial Results Q2 2022
CENTURY CASINOS FINANCIAL RESULTS Q2 2022 0
Slide 2: Forward-Looking Statements, Business Environment & Risk Factors
Forward-Looking Statements, Business Environment & Risk Factors CENTURY CASINOS 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”),
Slide 3: Notes on Presentation
Notes on Presentation CENTURY CASINOS 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, Adjusted EBITDA margin and Net Debt are non-GAAP financial measures. See Appendix for the definition a
Slide 4: New Developments
New Developments CENTURY CASINOS COVID-19 UPDATE Since the inception of the COVID-19 pandemic in March 2020, the Company’s casinos have varied their operations based on the governmental health and safety requirements in the jurisdictions in which they are located. The COVID-19 pandemic impacted the
Slide 5: Financial Results
FINANCIAL RESULTS CENTURY CASINOS 4
Slide 6: Q2 2022 by Reportable Segment and Operating Segment
Net Operating Revenue Q2 2022 by Reportable Segment and Operating Segment (1) (in USD) CENTURY CASINOS Canada 17% United States 63% Poland 20% Edmonton 12% Calgary 5% Colorado 10% West Virginia 27% Missouri 26% Poland 20% 1. Excludes the Corporate and Other Reportable Segment. 5
Slide 7: Earnings from Operations Q2 2022 by Segment
Earnings from Operations Q2 2022 by Reportable Segment and Operating Segment (1) (in USD) CENTURY CASINOS Canada 18% United States 73% Poland 9% Calgary 10% Edmonton 8% Poland 9% Colorado 16% West Virginia 14% Missouri 43% 1. Excludes the Corporate and Other Reportable Segment. 6
Slide 8: Net Earnings Attributable to Shareholders Q2 2022 by Segment
Net Earnings Attributable to Century Casinos, Inc. Shareholders Q2 2022 by Reportable Segment and Operating Segment (1) (in USD) CENTURY CASINOS Canada 19% United States 72% Poland 9% Calgary 8% Colorado 27% West Virginia 9% Missouri 36% Edmonton 11% Poland 9% 1. Excludes the Corporate and Other Rep
Slide 9: Adjusted EBITDA Q2 2022 by Segment
Adjusted EBITDA (1) Q2 2022 by Reportable Segment and Operating Segment (2) (in USD) CENTURY CASINOS Canada 19% United States 72% Poland 9% Calgary 9% Colorado 14% West Virginia 16% Missouri 42% Poland 9% Edmonton 10% Adjusted EBITDA is a non-GAAP financial measure. See Appendix for the definition a
Slide 10: Diversified Gaming Company with Focus on Local and Regional Markets
Diversified Gaming Company with Focus on Local and Regional Markets CENTURY CASINOS # of Properties # of Slot Machines # of Table Games # of Hotel Rooms Q2 2022 Geographic Concentration by Reportable Segment Adjusted EBITDA (2) CENTURY CASINOS 17 Properties ( 1) 6,179 234 430 Poland 9% Canada 19% Un
Slide 11: Net Operating Revenue per Quarter
Net Operating Revenue per Quarter In USD (in millions) CENTURY CASINOS 140 120 100 80 60 40 20 0 Q1 40.6 45.6 87.7 72.4 103.1 Q2 39.6 52.4 36.1 92.2 111.1 Q3 43.6 52.9 95.7 116.6 Q4 45. 1 67.2 84.8 107.3 2018 2019 2020 2021 2022 1 0
Slide 12: Adjusted EBITDA per Quarter
Adjusted EBITDA (1) per Quarter In USD (in millions) CENTURY CASINOS 35.0 30.0 25.0 20.0 15.0 10.0 5.0 0 (5.0) Q1 6.6 6.7 9.6 14.7 23.8 Q2 4.7 6.7 (1.8) 25.2 29.8 Q3 6.4 7.1 22.2 33.1 Q4 5.8 9.8 18.3 24.9 2018 2019 2020 2021 2022 1. Adjusted EBITDA is a non-GAAP financial measure. See Appendix for t
Slide 13: Balance Sheet
Balance Sheet Selected information in USD CENTURY CASINOS in millons (except BVPS) June 30,2022 December 31,2021 Change Total Assets 875.8 703.4 25% Total Debt, net of Deferred Financing Costs ( 1 ) 352.2 181.5 94% Book Value per Share ( 2 ) 5.00 4.78 5% Net Deb t ( 3 ) 273.7 81.4 As of June 30, 202
Slide 14: Income Statement
Income Statement Selected information in USD CENTURY CASINOS In millions Q2 2022 Q2 2021 Change Net Operating Revenue 111.1 92.2 21% Earnings from Operations 20.8 18.1 15% Net Earnings Attributable to Century Casinos, Inc. Shareholders 8.9 6.9 29% Adjusted EBITDA (1 ) 29.8 25.2 18% Basic Earnings pe
Slide 15: Debt and Net Debt to Adjusted EBITDA
Debt and Net Debt to Adjusted EBITDA (1) As of June 30, 2022 and for the years ended December 31, 2014-2021 (in USD) CENTURY CASINOS 9.0 8.0 7.0 6.0 5.0 4.0 3.0 2.0 1.0 0.0 -1.0 -2.0 2014 3 .0 x 1.1x 2015 1.6x 0.3x 2016 2.2x 0.7x 2017 2.2x -0.7x 2018 2.5x 0.6x 2019 6.8x 5.1x 2020 7.9x 5.6x 2021 2.5x
Slide 16: United States Highlights
United States Highlights Selected information in USD CENTURY CASINOS In millions Q2 2022 Q2 2021 Change Net Operating Revenue 70.3 76.7 (8%) Operating Costs and Expenses 52.7 53.2 (1%) Earnings from Operations 17.6 23.5 (25%) Net Earnings Attributable to Century Casinos, Inc. 10.5 16.5 (36%) Adjuste
Slide 17: Colorado Highlights
Colorado Highlights Selected information in USD, in millions CENTURY CASINOS Key Stats (1) Central City Casino Sq. Footage 22,640 Slot Machines 412 Tables 8 Hotel Rooms 26 Net Operating Revenue 14.0 12.0 10.0 8.0 6.0 4.0 2.0 0.0 Q1 6.7 9.4 10.3 Q2 2.0 12.1 11.6 Q3 10.4 12.5 Q4 9.5 11.3 2020 2021 202
Slide 18: Missouri Highlights
Missouri Highlights Selected information in USD, in millions CENTURY CASINOS Key Stats (1) Cape Girardeau Casino Sq. Footage 41,530 Slot Machines 846 Tables 23 Hotel Rooms N/A Net Operating Revenue 40.0 35.0 30.0 25.0 20.0 15.0 10.0 5.0 0.0 Q1 21.6 31.0 28.7 Q2 9. 6 34.1 29.0 Q3 23.9 29.7 Q4 24.5 28
Slide 19: West Virginia Highlights
West Virginia Highlights Selected information in USD, in millions CENTURY CASINOS Key Stats (1) Mountaineer Casino Sq. Footage 72,380 Slot Machines 1,037 Tables 36 Hotel Rooms 357 Net Operating Revenue 35 .0 30 .0 25 .0 20 .0 15 .0 10 .0 5 .0 0 .0 Q1 25.1 23.9 26.3 Q2 12.2 30.6 29.7 Q3 28.4 31.7 Q4
Slide 20: Canada Highlights
Canada Highlights Selected information in CAD CENTURY CASINOS In millions Q2 2022 Q2 2021 Change Net Operating Revenue 24.3 8.2 198% Operating Costs and Expenses 18.8 8.9 110% Earnings (Loss) from Operations 5.5 (0.8) 814% Net Earnings (Loss) Attributable to Century Casinos. Inc. Shareholders 1.0 (0
Slide 21: Edmonton Highlights
Edmonton Highlights Selected information in CAD, in millions CENTURY CASINOS Key Stats (1) Edmonton Casino Sq. Footage 32,960 Slot / VLT Machines (2) 839 Tables 23 Hotel Rooms 26 St Albert Casino Sq. Footage 12,970 Slot/VLT Machines (2) 434 Tables 10 Century Mile Casino Sq. Footage 19,480 Slot/VLT M
Slide 22: Calgary Highlights
Calgary Highlights (1) Selected information in CAD, in millions CENTURY CASINOS Key Stats (2) Century Downs Casino Sq. Footage 25,500 Slot/VLT Machines 673 Net Operating Revenue 10.0 9.0 8.0 7.0 6.0 5.0 4.0 3.0 2.0 1.0 0.0 Q1 8.5 1.2 6.7 Q2 2.6 3.1 7.5 Q3 8.6 9.1 Q4 6.4 7.1 2020 2021 2022 Adjusted E
Slide 23: Poland Highlights
Poland Highlights Selected information in PLN CENTURY CASINOS In millions Q2 2022 Q2 2021 Change Net Operating Revenue 94.7 32.5 191% Operating Costs and Expenses 85.7 39.4 118% Earnings (Loss) from Operations 8.9 (6.9) 230% Net Earnings (Loss) Attributable to Century Casinos Inc. Shareholders 5.0 (
Slide 24: Poland Highlights
Poland Highlights Selected information in PLN, in millions CENTURY CASINOS Key Stats (1) Casinos Poland Casino Sq. Footage 85,560 Slot Machines 526 Tables 121 # of Casinos 8 Net Operating Revenue 100.0 90.0 80.0 70.0 60.0 50.0 40.0 30.0 20.0 10.0 0.0 Q1 66.6 22.4 90.2 Q2 29.6 32.5 94.7 Q3 62.1 81.9
Slide 25: Corporate and Other Highlights
Corporate and Other Highlights Selected information in USD CENTURY CASINOS In millions Q2 2022 Q2 2021 Change Net Operating Revenue 0.1 0.1 (53%) Operating Costs and Expenses 4.3 3.1 38% Loss from Operations (3.2) (3.0) 7% Net Loss Attributable to Century Casinos. Inc. Shareholders (5.9) (7.1) (17%)
Slide 26: Projects
PROJECTS CENTURY CASINOS 25
Slide 27: Nugget Casino Resort Property Overview
Nugget Casino Resort Property Overview CENTURY CASINOS Key Highlights The newly remodeled Nugget Casino is conveniently located on route I-80 with easy access from the airport. The full-service resort boasts a large gaming floor, two hotel towers, a convention space, outdoor amphitheater, and a wide
Slide 28: Strategic Rationale and Investment Highlights
Strategic Rationale and Investment Highlights The Nugget Reno Offers Immediate Synergies to a Growing Century Platform CENTURY CASINOS Expand Century’s US Footprint and Enter Fast Growing Reno Market Offers Century an entry into the state of Nevada and a high profile, top 15 US gaming market (1) tha
Slide 29: Century is Well-Positioned for the Next Stage of Growth
Century is Well-Positioned for the Next Stage of Growth CENTURY CASINOS Century’s operating expertise has provided opportunities to make small yet meaningful changes that have long-term impact. Recently Completed or In-Process Organic Growth Projects Truing Up mobile app to enhance customer experien
Slide 30: Century is Well-Positioned for the Next Stage of Growth: Missouri Projects
Century is Well-Positioned for the Next Stage of Growth Missouri Projects CENTURY CASINOS Caruthersville Century recently purchased the neighboring two-story hotel. The new Century hotel will be the only hotel in downtown Caruthersville. The project is scheduled to open in August 2022 and is expecte
Slide 31: Appendix
APPENDIX CENTURY CASINOS 30
Slide 32: Abbreviations of Century Casinos Subsidiaries and Reporting Units
Appendix Abbreviations of Century Casinos, Inc. Subsidiaries and Certain Reporting Units CENTURY CASINOS Abbreviation Century Casino & Hotel – Central City CTL or Central City Century Casino & Hotel – Cripple Creek CRC or Cripple Creek Mountaineer Casino, Racetrack & Resort MTR or Mountaineer Centur
Slide 33: Non-GAAP Financial Measures
Appendix Non-GAAP Financial Measures CENTURY CASINOS 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 u
Slide 34: Non-GAAP Financial Measures: Adjusted EBITDA Definition
Appendix Non-GAAP Financial Measures CENTURY CASINOS 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 (los
Slide 35: Non-GAAP Financial Measures: Net Debt Definition
Appendix Non-GAAP Financial Measures CENTURY CASINOS 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
Slide 36: Reconciliation of Adjusted EBITDA
Appendix Non-GAAP Financial Measures – Reconciliation of Adjusted EBITDA CENTURY CASINOS Century Casinos, Inc. For the three months ended June 30, in USD, in thousands 2022 2021 Net Operating Revenue $ 111,122 $ 92,185 Net earnings attributable to Century Casinos, Inc. shareholders 8,856 6,855 Inter
Slide 37: Reconciliation of Adjusted EBITDA: United States
Appendix Non-GAAP Financial Measures – Reconciliation of Adjusted EBITDA CENTURY CASINOS United States in USD, in thousands For the three months ended June 30, 2022 Colorado West Virginia Missouri Total United States Net Operating Revenue $ 11,590 $ 29,699 $ 29,024 $ 70,313 Net inco m e attributable
Slide 38: Reconciliation of Adjusted EBITDA: Canada
Appendix Non-GAAP Financial Measures – Reconciliation of Adjusted EBITDA CENTURY CASINOS Canada For the three months ended June 30, 2022 in CAD, in thousands Edmonton Calgary Total Canada Net Operating Revenue $ 16,768 $ 7,508 $ 24,276 Net (loss) income attributable to Century Casinos, Inc. sharehol
Slide 39: Reconciliation of Adjusted EBITDA: Poland
Appendix Non-GAAP Financial Measures – Reconciliation of Adjusted EBITDA CENTURY CASINOS Poland For the three months ended June 30, in PLN, in thousands 2022 2021 Net Operating Revenue PLN 94,662 PLN 32,489 Net inco m e (loss) attributable to Century Casinos, Inc. shareholders 4,971 (3,855) Interest
Slide 40: Reconciliation of Adjusted EBITDA: Corporate and Other
Appendix Non-GAAP Financial Measures – Reconciliation of Adjusted EBITDA CENTURY CASINOS Corporate and Other in USD, in thousands For the three months ended June 30, 2022 2021 Net Operating Revenue $ 65 $ 138 Net loss attributable to Century Casinos, Inc. shareholders (5,862) (7,084) Interest expens
Slide 41: Reconciliation of Adjusted EBITDA: Nugget Casino Resort
Appendix Non-GAAP Financial Measures – Reconciliation of Adjusted EBITDA CENTURY CASINOS Nugget Casino Resort in USD, in thousands For the three months ended June 30, 2022 Net Operating Revenue $ 24,243 Net income 487 Depreciation and amortization 3,000 Management fees 250 Rent expense 3,750 Gain on
Slide 42: Reconciliation of Quarterly Adjusted EBITDA
Appendix Non-GAAP Financial Measures – Reconciliation of Quarterly Adjusted EBITDA CENTURY CASINOS 2018 2019 2020 2021 2022 in USD , in millions Q 1 Q 2 Q 3 Q 4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Net earnings ( l oss) attributable to Century Casinos. Inc. shareholders $ 0.9 $ 0 . 3 $ 1 . 6 $
Slide 43: Reconciliation of Adjusted EBITDA less Cash Payments on Master Lease
Appendix Non-GAAP Financial Measures – Reconciliation of Adjusted EBITDA and Adjusted EBITDA less Cash Payments on Master Lease Financing Obligation (in thousands) CENTURY CASINOS in USD Q3 2021 Q4 2021 Q1 2022 02 2022 Trailing 12-Month June 30,2022 Trailing 12-Month December 31, 2021 Net earnings a
Slide 44: Reconciliation of Net Debt
Appendix Non-GAAP Financial Measures – Reconciliation of Net Debt CENTURY CASINOS Amounts in thousands June 30 , 2022 December 31, 2021 Total long-term debt, including current portion $ 352,173 $ 181.484 Deferred financing costs 17 , 723 7 , 695 Total principal $ 369 , 896 $ 189 , 179 Less: Cash and