Century Casinos, Inc. · NASDAQ:CNTY
Century Casinos — Q4 2023 Earnings Presentation
41 slides from Century Casinos's earnings presentation, Mar 14, 2024
Slide 1: Investor Presentation: Results through Q4 2023
Results through Q4 2023 INVESTOR PRESENTATION Peter Hoetzinger, Co CEO & President
Slide 2: Forward-Looking Statements
FORWARD - LOOKING STATEMENTS 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 Private Securities Litigation Reform Act o
Slide 3: Key Investment Highlights
KEY INVESTMENT HIGHLIGHTS • Founded in 1992: Century Casinos is a multi-channel gaming Growth Drivers company with focus on drive-to U.S. markets. • Acquisition of Nugget Casino Resort in Reno, NV • Acquisition of Rocky Gap Casino, Resort & Golf operations in MD • Strategically Located Casinos: Oper
Slide 4: Multi-Channel Gaming Company
MULTI-CHANNEL GAMING COMPANY Regional Casinos Racing and On/Off-Track Betting Sportsbook (Retail & Online) and iGaming The online world and the land-based casino Horse races at our racetracks provide a real Sports betting and iGaming are integral parts world co-exist successfully. experience. Pari-m
Slide 5: North American Property Footprint
NORTH AMERICAN PROPERTY FOOTPRINT 11 Properties In the USA (Nevada, Colorado, Missouri, West Virginia and Maryland) and Canada (Alberta) 2,153 Hotel Rooms Across seven1 casino hotel/resort properties; two new hotel additions are under construction (+107 rooms) 7,104 Slot Machines & 142 Table Games O
Slide 6: Regional Markets Overview
REGIONAL MARKETS OVERVIEW Diverse regional exposure in stable, mature gaming markets in the U.S. • Regional markets resilient during the pandemic Gross Gaming Revenue (GGR) • 2021 through 2023 Gross Gaming Revenue levels materially up versus 2019 $1,088 $1,060 across all markets served in the U.S. C
Slide 7: Stable Performance
STABLE PERFORMANCE US regional GGR has maintained stable growth since 2001 and has been resilient to macroeconomic changes including oil prices and CPI U.S. Regional GGR ($bn) $58 $52 $47 $39 $40 $34 $34 $35 $37 $31 $30 $30 $31 $31 $32 $26 $27 $29 $29 $29 $22 $24 $24 2001 2002 2003 2004 2005 2006 20
Slide 8: Income Statement
INCOME STATEMENT Selected information in USD, millions Q4 2023 Q4 2022 CHANGE Net Operating Revenue 143.8 103.8 39% Adjusted EBITDAR 1 25.4 21.7 17% Net Loss Attributable to Century Casinos, Inc. Shareholders (10.8) (4.0) (168%) 1. Adjusted EBITDAR is a non-GAAP financial measure. See Appendix for t
Slide 9: Balance Sheet and Leverage
BALANCE SHEET AND LEVERAGE As of December 31, 2023 In USD, in millions Cash 5.3X $171.3 Debt Leverage 1 Total Principal Debt 1 Net Debt 2 $346.8 $175.5 2.7X 3.4X Net Debt Leverage 2 Adjusted Net Debt Leverage 3 Adjusted EBITDAR 1 Rent Payments 1 (Max First Lien Net Leverage Ratio 5.5X) $114.0 $48.3
Slide 10: CNTY Consolidated Results
CNTY CONSOLIDATED RESULTS 2021 – 2023 Quarterly Results (in USD, millions) Net Operating Revenue Adjusted EBITDAR1 180 35 33.1 33.3 161.2 160 29.8 29.3 143.8 30 28.1 136.8 26.1 140 25.2 24.9 25.4 116.6 112.6 25 23.8 120 111.1 21.7 103.1 108.5 107.3 103.8 100 92.2 20 72.4 14.7 80 15 60 10 40 20 5 0 0
Slide 11: U.S. Operations
U.S. OPERATIONS OVERVIEW East, Midwest and West Regions 10
Slide 12: East Region Market Overview: West Virginia
EAST REGION MARKET OVERVIEW West Virginia Mountaineer Casino Resort & Races Market Demographics • Area’s only full-service resort and casino • Mountaineer serves the Pittsburgh and eastern Ohio drive-to markets featuring world-class thoroughbred • West Virginia was an early adopter of internet gamin
Slide 13: East Region Market Overview: Maryland
EAST REGION MARKET OVERVIEW Maryland Rocky Gap Casino, Resort & Golf Market Demographics • Rocky Gap Casino Resort combines a • Rocky Gap is the only casino resort in Western Maryland, attracting picturesque outdoor backdrop with a local and destination drive-in customers from MD, PA, WV and VA. 25,
Slide 14: East Region Results
EAST REGION RESULTS West Virginia and Maryland Net Operating Revenue Adjusted EBITDAR1 50.0 9.0 8.5 44.0 44.2 8.0 45.0 8.0 40.0 7.0 6.2 35.0 5.9 31.7 6.0 30.6 30.4 29.7 5.3 30.0 28.2 28.7 4.9 26.3 26.7 26.5 5.0 4.5 25.0 23.9 4.3 3.9 3.9 4.0 3.6 3.5 20.0 3.0 15.0 2.0 10.0 5.0 1.0 0.0 0.0 Q1 Q2 Q3 Q4
Slide 15: Midwest Market Overview: Colorado
MIDWEST MARKET OVERVIEW Colorado Century Casino & Hotel Central City Market Demographics • Central City is located just 45 minutes west • Central City and Cripple Creek serve the Denver and Colorado Springs of Denver, Colorado. MSAs, both of which are exhibiting strong demographic and economic trend
Slide 16: Midwest Market Overview: Missouri
MIDWEST MARKET OVERVIEW Missouri Century Casino Cape Girardeau Market Demographics • Situated in downtown Cape Girardeau • Cape Girardeau and Caruthersville are local, drive-to markets with loyal • ~7,700 sq. ft. entertainment center & event customer bases. center with seating for up to 600. • Misso
Slide 17: Midwest Region Results
MIDWEST REGION RESULTS Colorado and Missouri Net Operating Revenue Adjusted EBITDAR1 50.0 25.0 46.2 45.0 22.0 42.2 40.4 40.6 40.3 40.4 40.0 39.0 39.7 39.2 39.6 20.0 37.6 18.5 18.4 35.8 17.4 35.0 16.7 16.1 15.9 15.9 15.4 15.3 30.0 15.0 13.5 12.8 25.0 20.0 10.0 15.0 10.0 5.0 5.0 0.0 0.0 Q1 Q2 Q3 Q4 Q1
Slide 18: West Region Market Overview: Nevada
WEST REGION MARKET OVERVIEW Nevada Nugget Casino Resort Market Demographics • The newly remodeled Nugget Casino • Reno, the “Biggest Little City in the World”, is famous for its casinos and as a Resort is conveniently located on route destination for outdoor recreation with proximity to Lake Tahoe a
Slide 19: Additional Growth Drivers
ADDITIONAL GROWTH DRIVERS Overview, Cape Girardeau, Caruthersville Land-based 18
Slide 20: Next Stage of Growth: Value Creation Projects
NEXT STAGE OF GROWTH Attractive Value Creation Projects Project Description Estimated Capex Estimated Adjusted Estimated Completion Requirement EBITDAR1 Impact East Upgrades to restaurants, lake beach access $1M – $2M $0.5M – $1M 2024-2025 Various renovations and slot purchases $3M $0.5M – $1M Q2 20
Slide 21: Next Stage of Growth: Forecast 2024 Available Cash
NEXT STAGE OF GROWTH Forecast 2024 Available Cash 2024 Starting Cash $171.3 Cash in Casinos (estimate) ($42.0) Capex Maintenance1 ($7.2) Capex Projects (non-recurring)1 ($25.0) Caruthersville Project (non-recurring)2 ($19.4) Cash Tax (Canada Real Estate Sale) (non-recurring)3 ($19.0) Debt Repurchase
Slide 22: Missouri Projects – The Riverview
NEXT STAGE OF GROWTH Missouri Projects – The Riverview (Cape Girardeau) • The Riverview will be a 69-room hotel at Cape Girardeau connected to the existing casino. • Project will transform the facility to a full resort destination with gaming, various bars and dining venues, as well as conference, c
Slide 23: Missouri Projects – Caruthersville Land-Based Casino & Hotel
NEXT STAGE OF GROWTH Missouri Projects – Caruthersville Permanent Land-Based Casino & Hotel • Groundbreaking on December 2, 2022. Expected opening in late 2024. • Transformation from the last remaining riverboat to full destination resort to attract customers from further into Missouri, Tennessee an
Slide 24: Long-Term Growth
LONG-TERM GROWTH Strategic Initiatives Projected to Drive Steady Growth 800 40.0% Approaching 3% s–C AGR 1 en u e $700M 700 ev 35.0% Net R $635M 600 30.0% ADJUSTED EBITDAR MARGIN $550M NET OPERATING REVENUE 500 24.0% 24.0% 25.0% $431M 21.0% 20.7% 400 2025: 20.0% 2024: • Full year of • Full year of i
Slide 25: Appendix
APPENDIX 24
Slide 26: Additional Results by Reportable Segment Q4 2023
APPENDIX Additional Results by Reportable Segment Q4 2023 1 Earnings from Operations Net Earnings Attributable to Century Casinos, Inc. Shareholders United States: 6% Poland: 2% Poland: 6% Canada: 25% United States: 73% Canada: 88% 1. Excludes the Corporate and Other Reportable Segment. 25
Slide 27: Abbreviations of Subsidiaries and Reporting Units
APPENDIX Abbreviations of Century Casinos, Inc. Subsidiaries and Certain Reporting Units Name Abbreviation Operating Segment Mountaineer Casino, Resort & Races MTR or Mountaineer East Rocky Gap Casino, Resort & Golf ROK or Rocky Gap East Century Casino Cape Girardeau CCG or Cape Girardeau Midwest Ce
Slide 28: Terms and Definitions
APPENDIX Terms and Definitions • 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. Amounts presented are rounded. As such, rounding differences could occur in period-over-period changes and percentages repo
Slide 29: Terms and Definitions
APPENDIX Terms and Definitions • “Master Lease” means the Company’s master lease of its Missouri, West Virginia, Maryland and Canada properties with subsidiaries of VICI. • “Rent Payments” refer to cash payments related to the Company’s Master Lease, CDR land lease and 50% of the lease payments from
Slide 30: Non-GAAP Financial Measures
APPENDIX Non-GAAP Financial Measures • The Company supplements its consolidated financial statements prepared in accordance with US generally accepted accounting principles (“GAAP”) by using the following non-GAAP financial measures, which management believes are useful in properly understanding the
Slide 31: Non-GAAP Financial Measures
APPENDIX Non-GAAP Financial Measures • Adjusted EBITDAR is defined as net (loss) earnings attributable to Century Casinos, Inc. shareholders before interest expense (income) (including interest expense related to the Company’s Master Lease), net, income taxes (benefit), depreciation, amortization, n
Slide 32: Non-GAAP Financial Measures
APPENDIX Non-GAAP Financial Measures • Adjusted EBITDAR (continued). Adjusted EBITDAR should not be construed as an alternative to net earnings (loss) attributable to Century Casinos, Inc. shareholders, the most directly comparable GAAP measure, as indicators of our performance. In addition, Adjuste
Slide 33: Non-GAAP Financial Measures
APPENDIX Non-GAAP Financial Measures • Lease Adjusted Leverage is calculated by dividing the Company’s trailing twelve-month Adjusted EBITDAR by the Company’s Lease Debt (as defined in this Appendix) plus Net Debt. Lease Adjusted Leverage shows the Company’s leverage as if the Master Lease, CDR land
Slide 34: Reconciliation of Adjusted EBITDAR (Q4)
APPENDIX Non-GAAP Financial Measures – Reconciliation of Adjusted EBITDAR For the three months ended December 31, in USD, in thousands 2023 2022 Net operating revenue $ 143,760 $ 103,754 Net loss attributable to Century Casinos, Inc. shareholders (10,821) (4,042) Interest expense (income), net 24,70
Slide 35: Reconciliation of Adjusted EBITDAR by Region
APPENDIX Non-GAAP Financial Measures – Reconciliation of Adjusted EBITDAR For the three months ended For the three months ended December 31, 2023 December 31, 2022 Total Total United United in USD, in thousands East Midwest West States East Midwest West States Net (loss) earnings attributable to Cen
Slide 36: Reconciliation of Adjusted EBITDAR (Quarterly)
APPENDIX Non-GAAP Financial Measures – Reconciliation of Adjusted EBITDAR 2021 2022 2023 in USD, in millions Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Net (loss) earnings attributable to Century Casinos, Inc. shareholders $ (1.4) $ 6.9 $ 11.2 $ 4.0 $ 0.2 $ 8.9 $ 2.9 $ (4.0) $ (1.2) $ (2.0) $ (23.4) $ (10.
Slide 37: Reconciliation of Adjusted EBITDAR and Margin (Annual)
APPENDIX Non-GAAP Financial Measures – Reconciliation of Adjusted EBITDAR and Adjusted EBITDAR Margin Year Ended Year Ended December 31, December 31, in USD, in thousands 2023 2022 Net Operating Revenue $550,206 $430,529 Net (loss) earnings attributable to Century Casinos, Inc. shareholders $(28,198
Slide 38: Calculation of Interest Expense (Income), Net
APPENDIX Calculation of Interest Expense (Income), Net Year Ended Year Ended December 31, December 31, in USD, in thousands 2023 2022 Interest income (2,114) (851) Interest expense - Credit Agreements 39,703 25,089 Interest expense - VICI Financing Obligation 42,426 28,533 Interest expense - CDR Lan
Slide 39: Calculation of Rent Payments
APPENDIX Calculation of Rent Payments Year Ended Year Ended December 31, December 31, in USD, in millions 2023 2022 Cash payments on Master Lease 40,739 25,666 Cash payments on CDR land lease 1,258 2,088 Cash payments on Nugget lease (50%) 6,313 — Rent Payments $48,310 $27,754 38
Slide 40: Calculation of Lease Adjusted Net Leverage and Lease Adjusted Leverage
APPENDIX Non-GAAP Financial Measures – Calculation of Lease Adjusted Net Leverage and Lease Adjusted Leverage Year Ended in dollars, in millions December 31, 2023 Cash $ 171.3 Cash in Casinos $ 48.7 Total Principal Debt $ 346.8 Net Debt $ 175.5 1 Adj EBITDAR $ 114.0 2 Rent Payments $ (48.3) 3 Debt L
Slide 41: Calculation of Net Debt
APPENDIX Non-GAAP Financial Measures – Calculation of Net Debt Amounts in thousands December 31, 2023 Total long-term debt, including current portion $ 332,680 Deferred financing costs 14,149 Total principal $ 346,829 Less: Cash and cash equivalents $ 171,327 Net Debt $ 175,502 40