Century Casinos, Inc. · NASDAQ:CNTY
Century Casinos — Q1 2018 Earnings Presentation
36 slides from Century Casinos's earnings presentation, May 9, 2018
Slide 1: Century Casinos Financial Results Q1 2018
CENTURY CASINOS Financial Results Q1 2018 Century Casinos 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: Q1 2018 Net Operating Revenue by Reportable Segment and Operating Segment
Q1 2018 Net Operating Revenue by Reportable Segment and Operating Segment (in USD) Excluding Corporate and Other Operating Segment Canada 36% United States 19% Poland 43% Ships & Other 2% CRA 13% CSA 5% CAL 6% CDR 11% CBS 1% CMR 0% CTL 11% CRC 8% CPL 43% SCCL 0% Ships & Other 2% Century Casinos 4
Slide 5: Q1 2018 by Reportable Segment and Operating Segment
Q1 2018 Earnings from Operations by Reportable Segment and Operating Segment (in USD) Excluding Corporate and Other Operating Segment Canada 65% United States 21% Poland 19% Ships & Other-5% CRA 29% CSA 9% CAL 3% CDR 29% CBS 0% CMR -5% CTL 10% CRC 11% CPL 19% SCCL -6% Ships & Other 1% Century Casino
Slide 6: Q1 2018 Net Income by Reportable Segment and Operating Segment
Q1 2018 Net Income Attributable to Century Casinos, Inc. Shareholders by Reportable Segment and Operating Segment (in USD) Excluding Corporate and Other Operating Segment Canada 66% United States 29% Poland 17% Ships & Other-12% CRA 39% CSA 6% CAL 4% CDR 21% CBS 0% CMR -4% CTL 14% CRC 15% CPL 17% SC
Slide 7: Q1 2018 Adjusted EBITDA by Reportable Segment and Operating Segment
Q1 2018 Adjusted EBITDA* by Reportable Segment and Operating Segment (in USD) Excluding Corporate and Other Operating Segment Canada 55% United States 20% Poland 24% Ships & Other 1% CRA 22% CSA 7% CAL 3% CDR 23% CBS 0% CMR 0% CTL 10% CRC 10% CPL 24% SCCL 0% Ships & Other 1% Adjusted EDITDA is a non
Slide 8: Net Operating Revenue per Quarter
Net Operating Revenue per Quarter (in USD) 29.1 30.4 33.2 36.4 40.6 Q1 31.6 37.9 35.2 37.3 Q2 28.1 33.5 34.5 41.0 Q3 31.3 31.9 36.3 39.3 Q4 0 5 10 15 20 25 30 35 40 45 2014 2015 2016 2017 2018 Century Casinos 8
Slide 9: Balance Sheet (Selected Information in USD)
Balance Sheet(Selected Information in USD) In millions (except BVPS) March 31, 2018 December 31, 2017 Change Total Assets 271.8 274.9 (1%) Book Value per Share* 6.10 6.13 (1%) Net Debt** (11.8) (17.7) (34%) *Book Value per Share is defined as total Century Casinos, Inc. shareholders’ equity divided
Slide 10: Income Statement (Selected Information in USD)
Income Statement (Selected Information in USD) In millions (except EPS) Q1 2018 Q1 2017 Change Net Operating Revenue 40.6 36.4 12% Earnings from Operations 3.3 4.5 (28%) Net Earnings Attributable to Century Casinos, Inc. Shareholders 0.9 2.2 (57%) Adjusted EBITDA*6.6 6.7 (2%) Basic Earnings per Shar
Slide 11: Constant Currency Results (in USD)
Constant Currency Results (in USD) In millions Q1 2018 Q1 2017 Change Net Operating Revenue as reported (GAAP)40.6 36.4 12% Foreign currency impact vs. 2017 (3.5) Net Operating Revenue constant currency (non-GAAP)* 37.2 36.4 2% Earnings from Operations as reported (GAAP) 3.3 4.5 (28%) Foreign curren
Slide 12: Constant Currency Results (in USD)
Constant Currency Results (in USD) * In millions Q1 2018 Q1 2017 Change Net Earnings Attributable to Century Casinos, Inc. Shareholders as reported (GAAP) 0.9 2.2 (57%) Foreign currency impact vs. 2017 (0.3) Net Earnings Attributable to Century Casinos, Inc. Shareholders constant currency (non-GAAP)
Slide 13: Debt to Adjusted EBITDA
Debt to Adjusted EBITDA* (in USD) As of March 31, 2018 and December 31, 2010-2017 1.7x 2010 0.8x 2011 0.3x 2012 2.7x 2013 3.0x 2014 1.6x 2015 2.2x 2016 2.2x 2017 2.1x 2018 0x 1x 2x 3x 4x *Debt to Adjusted EBITDA is calculated by dividing the Company’s trailing twelve-month Adjusted EBITDA by the pri
Slide 14: Canada (Selected Information in CAD)
Q1 Highlights –CANADA (Selected Information in CAD) In millions Q1 2018 Q1 2017 Change Net Operating Revenue 18.6 17.4 7% Operating Costs and Expenses 14.1 13.4 5% Earnings from Operations 4.5 4.0 12% Net Earnings Attributable to Century Casinos, Inc. Shareholders 2.1 2.0 5% Adjusted EBITDA*6.0 5.1
Slide 15: Canada – Century Resorts Alberta
Q1 Highlights –CANADA (Selected Information in CAD) In millions Q1 2018 Q1 2017 Change Net Operating Revenue 6.7 6.7 1% Operating Costs and Expenses 4.7 4.8 (3%) Earnings from Operations 2.0 1.9 10% Net Earnings Attributable to Century Casinos, Inc. Shareholders 1.3 1.2 8% Adjusted EBITDA*2.3 2.1 9%
Slide 16: Canada – Century Casino St. Albert
Q1 Highlights –CANADA (Selected Information in CAD). In millions Q1 2018 Q1 2017 Change Net Operating Revenue 2.7 2.6 3% Operating Costs and Expenses 2.1 2.1 1% Earnings from Operations 0.6 0.6 11% Net Earnings Attributable to Century Casinos, Inc. Shareholders 0.2 0.1 160% Adjusted EBITDA*0.7 0.7 6
Slide 17: Canada – Century Casino Calgary
Q1 Highlights –CANADA (Selected Information in CAD). In millions Q1 2018 Q1 2017 Change Net Operating Revenue 2.8 2.5 11% Operating Costs and Expenses 2.6 2.5 4% Earnings from Operations 0.2 0.0 1120% Net Earnings Attributable to Century Casinos, Inc. Shareholders 0.1 0.0 395% Adjusted EBITDA*0.4 0.
Slide 18: Canada – Century Downs Racetrack and Casino
Q1 Highlights –CANADA (Selected Information in CAD) In millions Q1 2018 Q1 2017 Change Net Operating Revenue 5.6 4.8 17% Operating Costs and Expenses 3.6 3.2 12% Earnings from Operations 2.0 1.6 27% Net Earnings Attributable to Century Casinos, Inc. Shareholders 0.8 0.6 30% Adjusted EBITDA*2.5 2.1 2
Slide 19: United States (Selected Information in USD)
Q1 Highlights –UNITED STATES (Selected Information in USD) In millions Q1 2018 Q1 2017 Change Net Operating Revenue 7.7 7.5 3% Operating Costs and Expenses 6.5 6.3 3% Earnings from Operations 1.2 1.2 1% Net Earnings Attributable to Century Casinos, Inc. Shareholders 0.9 0.7 22% Adjusted EBITDA*1.7 1
Slide 20: United States – Central City
Q1 Highlights –UNITED STATES (Selected Information in USD). In millions Q1 2018 Q1 2017 Change Net Operating Revenue 4.6 4.6 0% Operating Costs and Expenses 4.0 3.9 4% Earnings from Operations 0.6 0.7 (18%) Net Earnings Attributable to Century Casinos, Inc. Shareholders 0.4 0.4 (1%) Adjusted EBITDA*
Slide 21: United States – Cripple Creek
Q1 Highlights –UNITED STATES (Selected Information in USD) . In millions Q1 2018 Q1 2017 Change Net Operating Revenue 3.1 2.9 6% Operating Costs and Expenses 2.5 2.5 2% Earnings from Operations 0.6 0.4 31% Net Earnings Attributable to Century Casinos, Inc. Shareholders 0.4 0.3 60% Adjusted EBITDA*0.
Slide 22: Poland (Selected Information in PLN)
Q1 Highlights –POLAND (Selected Information in PLN) In millions Q1 2018 Q1 2017 Change Net Operating Revenue 59.1 59.0 0% Operating Costs and Expenses 55.6 51.7 8% Earnings from Operations 3.5 7.3 (52%) Net Earnings Attributable to Century Casinos, Inc. Shareholders 1.6 4.0 (59%) Adjusted EBITDA* 7.
Slide 23: Corporate and Other (Selected Information in USD)
Q1 Highlights –CORPORATE AND OTHER(Selected Information in USD) In millions Q1 2018 Q1 2017 Change Net Operating Revenue 0.9 1.2 (28%) Operating Costs and Expenses 3.4 2.7 24% Earnings from Operations (2.5) (1.5) (64%) Net Earnings Attributable to Century Casinos, Inc. Shareholders (2.5) (1.1) (126%
Slide 24: Corporate and Other – Cruise Ships and Other
Q1 Highlights –CORPORATE AND OTHER (Selected Information in USD) In millions Q1 2018 Q1 2017 Change Net Operating Revenue 0.9 1.2 (28%) Operating Costs and Expenses 0.8 0.9 (7%) Earnings from Operations—0.3 (100%) Net Earnings Attributable to Century Casinos, Inc. Shareholders—0.3 (100%) Adjusted EB
Slide 25: Additional Projects Under Development
Q1 Highlights –ADDITIONAL PROJECTS UNDER DEVELOPMENT Saw Close Casino Ltd. In June 2017, the Company acquired 100% of the outstanding common stock and the casino licenses held by Saw Close Casino Ltd. (“SCCL”). The Company is using the casino licenses to develop and operate a casino in Bath, England
Slide 26: Additional Projects Under Development
Q1 Highlights –ADDITIONAL PROJECTS UNDER DEVELOPMENT Bermuda In August 2017, the Company announced that, together with Hamilton Properties Limited, it had submitted a license application for a casino to the Bermudan government for a casino at the Hamilton Princess Hotel & Beach Club in Hamilton, Ber
Slide 27: 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 -Edmonton CRA Century Casino Calgary CAL Century Downs Racetrack and Casino CDR Century Bets! CBS Century Mile Racetrack and Casino CMR Century Casino & Hotel
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 u
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 interests (earnings) losses and transaction
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 fore
Slide 31: Reconciliation – Canada
Appendix A –NON-GAAP FINANCIAL MEASURES Reconciliation of Adjusted EBITDA (in thousands) -CANADA For the three months ended March 31, 2018in CAD CRA CSA CAL CDR CBS CMR Total Canada Net Operating Revenue $6,743 $2,731 $2,792 $5,575 $727 $ — $18,568 Net earnings (loss) attributable to Century Casinos
Slide 32: Reconciliation – Canada continued
Appendix A –NON-GAAP FINANCIAL MEASURES Reconciliation of Adjusted EBITDA (in thousands) –CANADA continued For the three months ended March 31, 2017 in CAD CRA CSA CAL CDR CBS CMR Total Canada Net Operating Revenue $6,697 $2,647 $2,513 $4,765 $796 $— $17,418 Net earnings (loss) attributable to Centu
Slide 33: Reconciliation – United States
Appendix A –NON-GAAP FINANCIAL MEASURES Reconciliation of Adjusted EBITDA (in thousands) –UNITED STATES For the three months ended March 31, 2018 For the three months ended March 31, 2017 in USD Central City Cripple Creek Total United States Net Operating Revenue $4,614 $3,092 $7,706 Net earnings (l
Slide 34: Reconciliation – Poland
Appendix A –NON-GAAP FINANCIAL MEASURES Reconciliation of Adjusted EBITDA (in thousands) –POLAND For the three months ended March 31, in PLN 2018 2017 Net Operating Revenue 59,103 PLN 58,956 PLN Net earnings (loss) attributable to Century Casinos, Inc. shareholders 1,637 3,998 Interest expense (inco
Slide 35: Reconciliation – Corporate and Other
Appendix A –NON-GAAP FINANCIAL MEASURES Reconciliation of Adjusted EBITDA (in thousands) –CORPORATE AND OTHER For the three months ended March 31, 2018 For the three months ended March 31, 2017in USD Cruise Ships and Other Saw Close Casino Corporate Other Total Corporate Other Net Operating Revenue
Slide 36: Reconciliation of Net Debt
Appendix A –NON-GAAP FINANCIAL MEASURES Reconciliation of Net Debt (in thousands) March 31, 2018 December 31, 2017 Amounts in thousands Total long-term debt, including current portion $53,969 $56,713 Deferred financing costs 220 258 Total principal $54,189 $56,971 Less: cash and cash equivalents $65