Century Casinos, Inc. · NASDAQ:CNTY
Century Casinos — Q3 2016 Earnings Presentation
34 slides from Century Casinos's earnings presentation, Nov 1, 2016
Slide 1: Financial Results Q3 2016
Financial Results Q3 2016
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: Reportable and Operating Segment Information
Reportable and Operating Segment Information As of September 30, 2016 Reportable Segment Operating Segment Canada Century Casino & Hotel – Edmonton (“CRA”) Canada Century Casino Calgary (“CAL”) Canada Century Downs Racetrack and Casino (“CDR”) Canada Century Bets! (“CBS”) United States Century Casin
Slide 4: Net Operating Revenue by Reportable and Operating Segment
Net Operating Revenue by Reportable and Operating Segment (in USD)
Slide 5: Earnings from Operations by Reportable and Operating Segment
Earnings from Operations by Reportable and Operating Segment* (in USD) *The Corporate Other operating segment is excluded from the charts above. Earnings from operations for Corporate Other for the quarter ended September 30, 2016 was ($1.9) million.
Slide 6: Net Income (Loss) by Reportable and Operating Segment
Net Income (Loss) Attributable to Century Casinos, Inc. Shareholders by Reportable and Operating Segment* (in USD) *The Corporate Other operating segment is excluded from the charts above. Net income (loss) attributable to Century Casinos. Inc. shareholders for Corporate Other for the quarter ended
Slide 7: Adjusted EBITDA by Reportable and Operating Segment
Adjusted EBITDA* by Reportable and Operating Segment** (in USD) *Adjusted EBITDA is a non-GAAP financial measure. See Appendix A for the definition and reconciliation of Adjusted EBITDA. ** The Corporate Other operating segment is excluded from the charts above. Adjusted EBITDA* for Corporate Other
Slide 8: Net Operating Revenue per Quarter
Net Operating Revenue per Quarter (in USD)
Slide 9: Balance Sheet
Balance Sheet (Selected Information) In USD mil (except BVPS) September 30, 2016 December 31, 2015 Change Total Assets 219.5 187.1 17% Book Value per Share* 5.39 5.01 8% Net Debt** 25.8 7.4 *Book Value per Share is defined as total Century Casinos, Inc. shareholders’ equity divided by outstanding co
Slide 10: Income Statement
Income Statement (Selected Information as of September 30, 2016) In USD mil (except EPS) Q3 2016 Q3 2015 Change Net Operating Revenue 34.5 33.5 3% Earnings from Operations 3.8 4.1 (6%) Net Earnings Attributable to Century Casinos, Inc. Shareholders 1.9 2.7 (31%) Adjusted EBITDA* 6.3 6.7 (7%) Earning
Slide 11: Constant Currency Results
Constant Currency Results In USD millions Q3 2016 Q3 2015 Change Net Operating Revenue as reported (GAAP) 34.5 33.5 3% Foreign currency impact vs. 2015 0.4 Net Operating Revenue constant currency (non-GAAP)* 34.9 33.5 4% Earnings from Operations as reported (GAAP) 3.8 4.1 (6%) Foreign currency impac
Slide 12: Constant Currency Results
Constant Currency Results In USD millions Q3 2016 Q3 2015 Change Net Earnings Attributable to Century Casinos, Inc. Shareholders as 1.9 2.7 (31%) reported (GAAP) Foreign currency impact vs. 2015 0.1 Net Earnings Attributable to Century Casinos, Inc. Shareholders 2.0 2.7 (28%) constant currency (non-
Slide 13: Debt to Adjusted EBITDA
Debt to Adjusted EBITDA* (in USD) *Debt to Adjusted EBITDA is calculated by dividing the Company’s trailing twelve-month Adjusted EBITDA by total long-term debt. Adjusted EBITDA is a non-GAAP financial measure. See Appendix A for the definition and reconciliation of Adjusted EBITDA.
Slide 14: Net Debt to Adjusted EBITDA
Net Debt to Adjusted EBITDA* (in USD) *Net Debt to Adjusted EBITDA is calculated by dividing the Company’s trailing twelve-month Adjusted EBITDA by Net Debt. Net Debt and Adjusted EBITDA are non-GAAP financial measures. See Appendix A for the definition and reconciliation of Net Debt and Adjusted EB
Slide 15: Q3 Highlights – Canada
Q3 Highlights – Canada (Selected Information as of September 30, 2016) In CAD mil Q3 2016 Q3 2015 Change Net Operating Revenue 15.7 16.0 (2%) Operating Costs and Expenses 12.3 11.7 5% Earnings from Operations 3.4 4.3 (21%) Net Earnings Attributable to Century Casinos, 1.9 2.2 (16%) Inc. Shareholders
Slide 16: Canada – CRA
Q3 Highlights – Canada (Selected Information as of September 30, 2016) CRA In CAD mil Q3 2016 Q3 2015 Change Net Operating Revenue 6.5 7.2 (9%) Operating Costs and Expenses 4.8 4.7 2% Earnings from Operations 1.7 2.5 (30%) Net Earnings Attributable to Century Casinos, Inc. Shareholders 1.1 1.5 (27%)
Slide 17: Canada – CAL
Q3 Highlights – Canada (Selected Information as of September 30, 2016) CAL In CAD mil Q3 2016 Q3 2015 Change Net Operating Revenue 2.1 2.3 (10%) Operating Costs and Expenses 2.4 2.4 2% Earnings from Operations (0.3) (0.1) (409%) Net Earnings Attributable to Century Casinos, Inc. Shareholders (0.3) (
Slide 18: Canada – CDR
Q3 Highlights – Canada (Selected Information as of September 30, 2016) CDR In CAD mil Q3 2016 Q3 2015 Change Net Operating Revenue 5.7 5.0 13% Operating Costs and Expenses 3.8 3.7 4% Earnings from Operations 1.9 1.4 36% Net Earnings Attributable to Century Casinos, Inc. Shareholders 1.0 0.6 69% Adju
Slide 19: Canada – CBS
Q3 Highlights – Canada (Selected Information as of September 30, 2016) CBS In CAD mil Q3 2016 Q3 2015 Change Net Operating Revenue 1.4 1.4 (4%) Operating Costs and Expenses 1.2 1.0 30% Earnings from Operations 0.1 0.5 (73%) Net Earnings Attributable to Century Casinos, Inc. Shareholders 0.1 0.3 (75%
Slide 20: Q3 Highlights – United States
Q3 Highlights – United States (Selected Information as of September 30, 2016) In USD mil Q3 2016 Q3 2015 Change Net Operating Revenue 8.2 8.0 3% Operating Costs and Expenses 6.6 6.5 2% Earnings from Operations 1.6 1.5 8% Net Earnings Attributable to Century Casinos, 1.0 0.9 7% Inc. Shareholders Adju
Slide 21: United States – CTL
Q3 Highlights – United States (Selected Information as of September 30, 2016) CTL In USD mil Q3 2016 Q3 2015 Change Net Operating Revenue 4.8 4.4 10% Operating Costs and Expenses 3.9 3.8 3% Earnings from Operations 0.9 0.6 55% Net Earnings Attributable to Century Casinos, Inc. Shareholders 0.6 0.4 5
Slide 22: United States – CRC
Q3 Highlights – United States (Selected Information as of September 30, 2016) CRC In USD mil Q3 2016 Q3 2015 Change Net Operating Revenue 3.3 3.5 (5%) Operating Costs and Expenses 2.6 2.6 1% Earnings from Operations 0.7 0.9 (23%) Net Earnings Attributable to Century Casinos, Inc. Shareholders 0.4 0.
Slide 23: Q3 Highlights – Poland
Q3 Highlights – Poland (Selected Information as of September 30, 2016) In PLN mil Q3 2016 Q3 2015 Change Net Operating Revenue 51.9 46.9 11% Operating Costs and Expenses 46.5 43.3 8% Earnings from Operations 5.4 3.6 50% Net Earnings Attributable to Century Casinos, 3.0 1.9 57% Inc. Shareholders Adju
Slide 24: Q3 Highlights – Corporate and Other
Q3 Highlights – Corporate and Other (Selected Information as of September 30, 2016) In USD mil Q3 2016 Q3 2015 Change Net Operating Revenue 1.0 0.9 6% Operating Costs and Expenses 2.7 2.6 7% Earnings from Operations (1.8) (1.6) (8%) Net (Loss) Earnings Attributable to Century (1.3) (0.7) (82%) Casin
Slide 25: Corporate and Other – Cruise Ships and Other
Q3 Highlights – Corporate and Other (Selected Information as of September 30, 2016) Cruise Ships and Other In USD mil Q3 2016 Q3 2015 Change Net Operating Revenue 1.0 0.9 6% Operating Costs and Expenses 0.9 0.6 47% Earnings from Operations 0.1 0.3 (64%) Net Earnings Attributable to Century Casinos,
Slide 26: Corporate and Other – Corporate Other
Q3 Highlights – Corporate and Other (Selected Information as of September 30, 2016) Corporate Other In USD mil Q3 2016 Q3 2015 Change Net Operating Revenue 0.0 0.0 0% Operating Costs and Expenses 1.9 2.0 (4%) Earnings from Operations (1.9) (2.0) 4% Net (Loss) Earnings Attributable to Century Casinos
Slide 27: Additional Projects Under Development
Q3 Highlights – Additional Projects Under Development Century Mile In September 2016, the Company was selected as the successful applicant by Horse Racing Alberta to own, build and operate a horse racing facility in the Edmonton market area, which the Company will operate as Century Mile. Century Mi
Slide 28: Appendix A – Non-GAAP Financial Measures
Appendix A – Non-GAAP Financial Measures The Company supplements its condensed consolidated financial statements prepared in accordance with U.S. generally accepted accounting principles (“US GAAP”) by using the following non-GAAP financial measures, which management believes are useful in properly
Slide 29: 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, amortization, non-controlling interest (earnings) losses and transaction
Slide 30: Reconciliation of Adjusted EBITDA – Canada
Appendix A (continued) Reconciliation of Adjusted EBITDA – Canada (in thousands) For the three months ended September 30, 2016 in CAD Amounts in thousands CRA CAL CDR CBS Total Canada Net operating revenue $ 6,527 $ 2,076 $ 5,690 $ 1,374 $ 15,667 Net earnings (loss) attributable to Century Casinos,
Slide 31: Reconciliation of Adjusted EBITDA – United States
Appendix A (continued) Reconciliation of Adjusted EBITDA – United States (in thousands) For the three months ended September 30, 2016 in USD Amounts in thousands CTL CRC Total United States Net operating revenue $ 4,842 $ 3,346 $ 8,188 Net earnings attributable to Century Casinos, Inc. shareholders
Slide 32: Reconciliation of Adjusted EBITDA – Poland
Appendix A (continued) Reconciliation of Adjusted EBITDA – Poland (in thousands) For the three months ended September 30, 2016 in PLN Amounts in thousands Poland Net operating revenue 51,936 Net earnings attributable to Century Casinos, Inc. shareholders 2,985 Interest expense (income), net (1) Inco
Slide 33: Reconciliation of Adjusted EBITDA – Corporate and Other
Appendix A (continued) Reconciliation of Adjusted EBITDA – Corporate and Other (in thousands) For the three months ended September 30, 2016 in USD Cruise Ships Corporate Total Corporate Amounts in thousands and Other Other and Other Net operating revenue $ 977 $ 0 $ 977 Net earnings (loss) attributa
Slide 34: Reconciliation of Net Debt
Appendix A (continued) Reconciliation of Net Debt (in thousands) September 30, December 31, 2016 2015 Total long-term debt, including current portion $ 58,356 $ 36,520 Deferred financing costs 398 261 Total principal $ 58,754 $ 36,781 Less: cash and cash equivalents 32,966 29,366 Net debt $ 25,788 $