Century Casinos, Inc. · NASDAQ:CNTY
Century Casinos — Q3 2018 Earnings Presentation
36 slides from Century Casinos's earnings presentation, Nov 7, 2018
Slide 1: Century Casinos Financial Results Q3 2018
CENTURY CASINOS Financial Results Q3 2018 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: Forward-Looking Statements, Business Environment and Risk Factors continued
Forward-Looking Statements, Business Environment and Risk Factors continued 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 m
Slide 4: Q3 2018 Net Operating Revenue by Reportable Segment and Operating Segment
Q3 2018 Net Operating Revenue by Reportable Segment and Operating Segment (in USD) Excluding Corporate Other Operating Segment CCB, Ships & Other 4% Canada 36% Poland 38% Ships & CCB Other CRA 2% 2% 12% CSA 5% CAL 4% CPL 38% CDR 13% CBS 2% CMR United States CTL 0% CRC 12% 22% 10% 4
Slide 5: Q3 2018 Earnings from Operations by Reportable Segment and Operating Segment
Q3 2018 Earnings from Operations by Reportable Segment and Operating Segment (in USD) Excluding Corporate Other Operating Segment CCB, Ships & Other Poland -9% 0% United States 40% Ships & Other 2% CCB -11% CPL 0% CRA 31% Canada 69% CRC 25% CSA 11% CAL -3% CTL 15% CMR -9% CDR 38% CBS 1% 5
Slide 6: Q3 2018 Net Income Shareholders by Reportable Segment and Operating Segment
Q3 2018 Net Income Attributable to Century Casinos, Inc. Shareholders by Reportable Segment and Operating Segment (in USD) Excluding Corporate Other Operating Segment CCB, Ships & Other -25% Poland -3% Canada 66% Ships & CCB Other 3% -28% CRA 40% CPL -3% CSA 11% CRC 39% CAL -4% United States 62% CDR
Slide 7: Q3 2018 Adjusted EBITDA by Reportable Segment and Operating Segment
Q3 2018 Adjusted EBITDA* by Reportable Segment and Operating Segment (in USD) Excluding Corporate Other Operating Segment CCB, Ships & Other, -3% Poland, 11% Ships & CCB Other -5% 2% CRA CPL United Canada, 59% 11% 22% States, 33% CSA CRC 8% 19% CAL 0% CTL CDR 14% CMR CBS 28% 0% 1% *Adjusted EBITDA i
Slide 8: Net Operating Revenue per Quarter
Net Operating Revenue per Quarter (in USD) 50 45 43.6 40.6 41.0 39.6 39.3 40 37.9 37.3 36.4 36.3 35.2 34.5 35 33.2 33.5 30.4 31.6 31.3 31.9 29.1 30 28.1 25 20 15 10 5 0 Q1 Q2 Q3 Q4 2014 2015 2016 2017 2018 8
Slide 9: Balance Sheet
Balance Sheet (Selected Information in USD) In millions (except BVPS) September 30, 2018 December 31, 2017 Change Total Assets 279.5 274.9 2% Total Debt 53.3 56.7 (6%) Book Value per Share* 6.14 6.13 0% Net Debt** 6.7 (17.7) *Book Value per Share is defined as total Century Casinos, Inc. shareholder
Slide 10: Income Statement
Income Statement (Selected Information in USD) In millions (except EPS) Q3 2018 Q3 2017 Change Net Operating Revenue 43.6 41.0 6% Earnings from Operations 3.2 4.8 (32%) Net Earnings Attributable to Century Casinos, Inc. Shareholders 1.6 7.6 (79%) Adjusted EBITDA* 6.4 7.5 (16%) Basic Earnings per Sha
Slide 11: Constant Currency Results
Constant Currency Results (in USD) In millions Q3 2018 Q3 2017 Change Net Operating Revenue as reported (GAAP) 43.6 41.0 6% Foreign currency impact vs. 2017 1.0 Net Operating Revenue constant currency (non-GAAP)* 44.6 41.0 9% Earnings from Operations as reported (GAAP) 3.2 4.8 (32%) Foreign currency
Slide 12: Constant Currency Results: Net Earnings Attributable to Shareholders
Constant Currency Results (in USD) In millions Q3 2018 Q3 2017 Change Net Earnings Attributable to Century Casinos, Inc. Shareholders as reported (GAAP) 1.6 7.6 (79%) Foreign currency impact vs. 2017 0.1 Net Earnings Attributable to Century Casinos, Inc. Shareholders constant currency (non-GAAP)* 1.
Slide 13: Debt to Adjusted EBITDA
Debt to Adjusted EBITDA* (in USD) As of September 30, 2018 and December 31, 2010-2017 4x 3.0x 3x 2.7x 2.3x 2.2x 2.2x 2x 1.7x 1.6x 1x 0.8x 0.3x 0x 2010 2011 2012 2013 2014 2015 2016 2017 2018 *Debt to Adjusted EBITDA is calculated by dividing the Company’s trailing twelve-month Adjusted EBITDA by the
Slide 14: Q3 Highlights – Canada
Q3 Highlights – CANADA (Selected Information in CAD) In millions Q3 2018 Q3 2017 Change Net Operating Revenue 20.5 19.2 7% Operating Costs and Expenses 15.8 14.3 11% Earnings from Operations 4.7 4.9 (3%) Net Earnings Attributable to Century Casinos, Inc. Shareholders 2.8 3.5 (21%) Adjusted EBITDA* 6
Slide 15: Century Resorts Alberta
Q3 Highlights – CANADA (Selected Information in CAD) CENTURY RESORTS ALBERTA In millions Q3 2018 Q3 2017 Change Net Operating Revenue 6.7 6.6 2% Operating Costs and Expenses 4.6 4.5 3% Earnings from Operations 2.1 2.1 (0%) Net Earnings Attributable to Century Casinos, Inc. Shareholders 1.3 2.1 (39%)
Slide 16: Century Casino St. Albert
Q3 Highlights – CANADA (Selected Information in CAD) CENTURY CASINO ST. ALBERT In millions Q3 2018 Q3 2017 Change Net Operating Revenue 2.9 2.9 (0%) Operating Costs and Expenses 2.2 2.0 7% Earnings from Operations 0.8 0.9 (15%) Net Earnings Attributable to Century Casinos, Inc. Shareholders 0.4 0.7
Slide 17: Century Casino Calgary
Q3 Highlights – CANADA (Selected Information in CAD) CENTURY CASINO CALGARY In millions Q3 2018 Q3 2017 Change Net Operating Revenue 2.4 2.5 (5%) Operating Costs and Expenses 2.6 2.6 2% Earnings (Loss) from Operations (0.2) (0.0) (425%) Net Loss Attributable to Century Casinos, Inc. Shareholders (0.
Slide 18: Century Downs Racetrack and Casino
Q3 Highlights – CANADA (Selected Information in CAD) CENTURY DOWNS RACETRACK AND CASINO In millions Q3 2018 Q3 2017 Change Net Operating Revenue 7.6 6.2 23% Operating Costs and Expenses 5.0 4.3 17% Earnings from Operations 2.6 1.9 36% Net Earnings Attributable to Century Casinos, Inc. Shareholders 1
Slide 19: Q3 Highlights – United States
Q3 Highlights – UNITED STATES (Selected Information in USD) In millions Q3 2018 Q3 2017 Change Net Operating Revenue 9.4 9.0 4% Operating Costs and Expenses 7.2 7.0 4% Earnings from Operations 2.1 2.1 3% Net Earnings Attributable to Century Casinos, Inc. Shareholders 1.6 1.3 24% Adjusted EBITDA* 2.7
Slide 20: Central City
Q3 Highlights – UNITED STATES (Selected Information in USD) CENTRAL CITY In millions Q3 2018 Q3 2017 Change Net Operating Revenue 5.2 5.2 (0%) Operating Costs and Expenses 4.4 4.3 4% Earnings from Operations 0.8 1.0 (19%) Net Earnings Attributable to Century Casinos, Inc. Shareholders 0.6 0.6 (3%) A
Slide 21: Cripple Creek
Q3 Highlights – UNITED STATES (Selected Information in USD) CRIPPLE CREEK In millions Q3 2018 Q3 2017 Change Net Operating Revenue 4.1 3.8 9% Operating Costs and Expenses 2.8 2.7 3% Earnings from Operations 1.3 1.1 23% Net Earnings Attributable to Century Casinos, Inc. Shareholders 1.0 0.7 48% Adjus
Slide 22: Q3 Highlights – Poland
Q3 Highlights – POLAND (Selected Information in PLN) In millions Q3 2018 Q3 2017 Change Net Operating Revenue 61.9 56.3 10% Operating Costs and Expenses 61.9 53.4 16% Earnings from Operations 0.1 2.9 (98%) Net (Loss) Earnings Attributable to Century Casinos, Inc. Shareholders (0.4) 1.4 (128%) Adjust
Slide 23: Q3 Highlights – Corporate and Other
Q3 Highlights – CORPORATE AND OTHER (Selected Information in USD) In millions Q3 2018 Q3 2017 Change Net Operating Revenue 1.8 1.2 51% Operating Costs and Expenses 4.3 3.2 36% Loss from Operations (2.5) (2.0) (28%) Net (Loss) Earnings Attributable to Century Casinos, Inc. (1.5) 3.3 147% Shareholders
Slide 24: Cruise Ships and Other
Q3 Highlights – CORPORATE AND OTHER (Selected Information in USD) CRUISE SHIPS AND OTHER In millions Q3 2018 Q3 2017 Change Net Operating Revenue 0.7 1.2 (39%) Operating Costs and Expenses 0.6 1.0 (34%) Earnings from Operations 0.1 0.2 (62%) Net Earnings Attributable to Century Casinos, Inc. Shareho
Slide 25: Century Casino Bath
Q3 Highlights – CORPORATE AND OTHER (Selected Information in USD) CENTURY CASINO BATH In millions Q3 2018 Net Operating Revenue 1.1 Operating Costs and Expenses 1.7 Loss from Operations (0.6) Net Loss Attributable to Century Casinos, Inc. Shareholders (0.7) Adjusted EBITDA* (0.4) Adjusted EBITDA Mar
Slide 26: Q3 Highlights – 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 Racetrack a
Slide 27: Appendix A – Abbreviations of Century Casinos, Inc. Subsidiaries and Certain 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 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 (“GAAP”) by using the following non-GAAP financial measures, which management believes are useful in properly und
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 net earnings (loss) and transact
Slide 30: 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 revenue compared to prior period revenue using the prior period’s for
Slide 31: Appendix A – Non-GAAP Financial Measures: Canada Reconciliation
Appendix A – NON-GAAP FINANCIAL MEASURES Reconciliation of Adjusted EBITDA (in thousands) - CANADA 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) attributable to Cent
Slide 32: Appendix A – Non-GAAP Financial Measures: Canada continued
Appendix A – NON-GAAP FINANCIAL MEASURES Reconciliation of Adjusted EBITDA (in thousands) – CANADA continued For the three months ended September 30, 2017 Total in CAD CRA CSA CAL CDR CBS CMR Canada Net Operating Revenue $ 6,625 $ 2,930 $ 2,524 $ 6,180 $ 891 — $ 19,150 Net earnings (loss) attributab
Slide 33: Appendix A – Non-GAAP Financial Measures: United States
Appendix A – NON-GAAP FINANCIAL MEASURES Reconciliation of Adjusted EBITDA (in thousands) – UNITED STATES For the three months ended September 30, 2018 Total United in USD Central City Cripple Creek States Net Operating Revenue $ 5,228 $ 4,132 $ 9,360 Net earnings (loss) attributable to Century Casi
Slide 34: Appendix A – Non-GAAP Financial Measures: Poland
Appendix A – NON-GAAP FINANCIAL MEASURES Reconciliation of Adjusted EBITDA (in thousands) – POLAND For the three months ended September 30, in PLN 2018 2017 Net Operating Revenue PLN 61,917 PLN 56,293 Net (loss) earnings attributable to Century Casinos, Inc. shareholders (396) 1,398 Interest expense
Slide 35: Appendix A – Non-GAAP Financial Measures: 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, 2018 Cruise Ships and Century Casino Total Corporate in USD Other Bath Corporate Other and Other Net Operating Revenue $ 714 $ 1,060 — $ 1,774 Net
Slide 36: Appendix A – Reconciliation of Net Debt
Appendix A – NON-GAAP FINANCIAL MEASURES Reconciliation of Net Debt (in thousands) September 30, 2018 December 31, 2017 Amounts in thousands Total long-term debt, including current portion $ 53,285 $ 56,713 Deferred financing costs 250 258 Total principal $ 53,535 $ 56,971 Less: cash and cash equiva