Century Casinos, Inc. · NASDAQ:CNTY
Century Casinos — Q3 2021 Earnings Presentation
34 slides from Century Casinos's earnings presentation, Nov 5, 2021
Slide 1: Financial Results Q3 2021
CENTURY CASINOS, INC. Financial Results Q3 2021 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: Notes on Presentation
Notes on Presentation 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 A for the definition and reconciliat
Slide 4: COVID-19 Update
COVID-19 U pdate The COVID-19 pandemic has had an adverse effect on the Company’s 2020 results of operations and financial condition, and has impacted the Company’s results of operations to a lesser extent in 2021 because the Company’s United States properties were open and operating during this per
Slide 5: Other Projects and Developments
O ther Projects and Developments The Company plans to relocate its Century Casino Caruthersville casino, currently the last remaining riverboat on open water in Missouri, to a land-based casino with an attached hotel, estimated to open in 2024, and to build a hotel that will attach onto Century Casi
Slide 6: Net Operating Revenue by Reportable Segment and Operating Segment
Q3 2021 Net Operating Revenue by Reportable Segment and Operating Segment (in USD) Excluding Corporate and Other Reportable Segment Poland 18% Canada 18% United States 64% Poland 18% Edmonton 12% Calgary 6% Colorado 11% West Virginia 27% Missouri 26% Century Casinos 6
Slide 7: Earnings (Loss) from Operations by Reportable Segment and Operating Segment
Q3 2021 Earnings (Loss) from Operations by Reportable Segment and Operating Segment (in USD) Excluding Corporate and Other Reportable Segment Poland 9% Canada 24% United States 67% Poland 9% Edmonton 12% Calgary 12% Colorado 16% West Virginia 15% Missouri 36% Century Casinos 7
Slide 8: Net Earnings (Loss) Attributable to Shareholders by Segment
Q3 2021 Net Earnings (L oss ) Attributable to Century Casinos, Inc. Shareholders by Reportable Segment and Operating Segment (in USD) Excluding Corporate and Other Reportable Segment Poland 8% Canada 27% United States 65% Poland 8% Edmonton 18% Calgary 9% Colorado 24% West Virginia 11% Missouri 30%
Slide 9: Adjusted EBITDA by Reportable Segment and Operating Segment
Q3 2021 Adjusted EBITDA* by Reportable Segment and Operating Segment (in USD) Excluding Corporate and Other Reportable Segment Poland 9% Canada 22% United States 69% Poland 9% Edmonton 13% Calgary 9% Colorado 14% West Virginia 17% Missouri 38% *Adjusted EBITDA is a non-GAAP financial measure. See Ap
Slide 10: Net Operating Revenue per Quarter
Net Operating Revenue per Quarter (in USD) In millions 0 20 40 60 80 100 120 140 Q1 36.4 40.6 45.6 87.7 72.4 Q2 37.3 39.6 52.4 36.1 92.2 Q3 41.0 43.6 52.9 95.7 116.6 Q4 39.3 45.1 67.2 84.8 2017 2018 2019 2020 2021 Century Casinos 10
Slide 11: Balance Sheet
Balance Sheet (Selected Information in USD) In millions (except BVPS) September 30, 2021 December 31, 2020 Change Total Assets 697.9 680.8 3% Total Debt 182.4 184.6 (1%) Book Value per Share* 4.59 3.99 15% Net Debt** 89.8 130.4 *Book Value per Share is defined as total Century Casinos, Inc. sharehol
Slide 12: Income Statement
Income Statement (Selected Information in USD) In millions Q3 2021 Q3 2020 Change Net Operating Revenue 116.6 95.7 22% Earnings from Operations 25.7 15.0 71% Net Earnings Attributable to Century Casinos, Inc. Shareholders 11.2 3.7 200% Adjusted EBITDA* 33.1 22.2 49% Basic Earnings per Share 0.38 0.1
Slide 13: Debt and Net Debt to Adjusted EBITDA
Debt and Net Debt to Adjusted EBITDA* (in USD) As of September 30, 2021 and for the years ended December 31, 2013-2020 -2x -1x 0x 1x 2x 3x 4x 5x 6x 7x 8x 9x 2013 2.7x 0.5x 2014 3.0x 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 2.8x 1.4x Debt to
Slide 14: Highlights – United States
Q3 2021 Highlights – U nited States (Selected Information in USD) In millions Q3 2021 Q3 2020 Change Net Operating Revenue 73.9 62.6 18% Operating Costs and Expenses 54.4 47.9 13% Earnings from Operations 19.5 14.7 33% Net Earnings Attributable to Century Casinos, Inc. Shareholders 12.4 7.7 62% Adju
Slide 15: Highlights – Colorado
Q3 2021 Highlights – C olorado (Selected Information in USD, in millions ) Net Operating Revenue 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 Q1 8.1 6.7 9.4 Q2 8.8 2.0 12.1 Q3 9.2 10.4 12.5 Q4 7.8 9.5 2019 2020 2021 Adjusted EBITDA* 0.0 1.0 2.0 3.0 4.0 5.0 6.0 Q1 1.9 0.8 3.1 Q2 2.2 0.3 4.8 Q3 2.3 4.8 5.0 Q4 1
Slide 16: Highlights – West Virginia
Q3 2021 Highlights – W est Virginia (Selected Information in USD, in millions ) Net Operating Revenue 0.0 5.0 10.0 15.0 20.0 25.0 30.0 35.0 Q1 25.1 23.9 Q2 12.2 30.6 Q3 28.4 31.7 Q4 ** 8.7 24.5 2019 2020 2021 Adjusted EBITDA* -1.0 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 Q1 1.8 3.6 Q2 -0.5 6.2 Q3 4.8 5.9 Q4
Slide 17: Highlights – Missouri
Q3 2021 Highlights – M issouri (Selected Information in USD, in millions ) Net Operating Revenue 0.0 5.0 10.0 15.0 20.0 25.0 30.0 35.0 40.0 Q1 21.6 31.0 Q2 9.6 34.1 Q3 23.9 29.7 Q4 ** 7.4 24.5 2019 2020 2021 Adjusted EBITDA* 0.0 5.0 10.0 15.0 20.0 Q1 6.1 15.4 Q2 2.3 17.2 Q3 9.7 13.4 Q4 ** 2.6 10.4 2
Slide 18: Highlights – Canada
Q3 2021 Highlights – C anada (Selected Information in CAD) In millions Q3 2021 Q3 2020 Change Net Operating Revenue 26.9 22.1 22% Operating Costs and Expenses 18.4 18.0 2% Earnings from Operations 8.5 4.1 108% Net Earnings Attributable to Century Casinos, Inc. Shareholders 4.0 5.0 (20%) Adjusted EBI
Slide 19: Highlights – Edmonton
Q3 2021 Highlights – Edmonton (Selected Information in CAD, in millions ) Net Operating Revenue 0.0 5.0 10.0 15.0 20.0 Q1 11.8 13.1 1.3 Q2 18.5 3.9 5.1 Q3 17.9 13.5 17.8 Q4 16.6 10.2 2019 2020 2021 Adjusted EBITDA* -4.0 -2.0 0.0 2.0 4.0 6.0 8.0 Q1 2.9 1.4 -2.4 Q2 4.0 -0.2 0.3 Q3 3.5 3.2 5.7 Q4 3.9 2
Slide 20: Highlights – Calgary
Q3 2021 Highlights – C a lgary (Selected Information in CAD, in millions ) Net Operating Revenue 0.0 2.0 4.0 6.0 8.0 10.0 12.0 Q1 9.9 8.5 1.2 Q2 10.9 2.6 3.1 Q3 11.2 8.6 9.1 Q4 10.2 6.4 2019 2020 2021 Adjusted EBITDA* -1.0 0.0 1.0 2.0 3.0 4.0 5.0 Q1 3.8 2.5 -0.7 Q2 3.9 0.0 0.5 Q3 2.9 2.7 4.3 Q4 3.2
Slide 21: Highlights – Poland
Q3 2021 Highlights – P oland (Selected Information in PLN) In millions Q3 2021 Q3 2020 Change Net Operating Revenue 81.9 62.1 32% Operating Costs and Expenses 71.7 61.3 17% Earnings from Operations 10.2 0.8 1179% Net Earnings Attributable to Century Casinos, Inc. Shareholders 6.2 0.3 1830% Adjusted
Slide 22: Highlights – Poland
Q3 2021 Highlights – P oland (Selected Information in PLN, in millions ) Net Operating Revenue 0.0 20.0 40.0 60.0 80.0 100.0 Q1 74.8 66.6 22.4 Q2 76.6 29.6 32.5 Q3 79.0 62.1 81.9 Q4 83.9 51.0 2019 2020 2021 Adjusted EBITDA* -15.0 -10.0 -5.0 0.0 5.0 10.0 15.0 Q1 9.3 4.1 -9.6 Q2 7.6 -6.3 -4.0 Q3 9.6 3
Slide 23: Highlights – Corporate and Other
Q3 2021 Highlights – C orporate and Other (Selected Information in USD) In millions Q3 2021 Q3 2020 Change Net Operating Revenue 0.2 0.1 36% Operating Costs and Expenses 3.4 3.1 10% Loss from Operations (3.2) (3.0) 9% Net Loss Attributable to Century Casinos, Inc. Shareholders (7.9) (5.9) 35% Adjust
Slide 24: Appendix A – Abbreviations of Century Casinos, Inc. Subsidiaries and Certain Operating Segments
Appendix A – A bbreviations of C entury C asinos , I nc . S ubsidiaries and C ertain O perating S egments Subsidiary Abbreviation Century Casino & Hotel – Central City CTL Century Casino & Hotel – Cripple Creek CRC Mountaineer Casino, Racetrack & Resort MTR Century Casino Cape Girardeau CCG Century
Slide 25: Appendix A – Non-GAAP Financial Measures
Appendix A – N on -GAAP F inancial M easures 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 understan
Slide 26: Appendix A – Non-GAAP Financial Measures
Appendix A – N on -GAAP F inancial M easures 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 (loss) and t
Slide 27: Appendix A – Non-GAAP Financial Measures
Appendix A – N on -GAAP F inancial M easures 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 is a va
Slide 28: Reconciliation of Adjusted EBITDA
Appendix A – N on -GAAP F inancial M easures Reconciliation of Adjusted EBITDA (in thousands ) For the three months ended September 30, in USD 2021 2020 Net Operating Revenue $ 116,610 $ 95,706 Net earnings attributable to Century Casinos, Inc. shareholders 11,226 3,748 Interest expense (income), ne
Slide 29: Reconciliation of Adjusted EBITDA – United States
Appendix A – N on -GAAP F inancial M easures Reconciliation of Adjusted EBITDA (in thousands ) – U nited S tates For the three months ended September 30, 2021 in USD Colorado West Virginia Missouri Total United States Net Operating Revenue $ 12,507 $ 31,737 $ 29,653 $ 73,897 Net income attributable
Slide 30: Reconciliation of Adjusted EBITDA – Canada
Appendix A – N on -GAAP F inancial M easures Reconciliation of Adjusted EBITDA (in thousands ) - C anada For the three months ended September 30, 2021 in CAD Edmonton Calgary Total Canada Net Operating Revenue $ 17,826 $ 9,073 $ 26,899 Net income attributable to Century Casinos, Inc. shareholders 1,
Slide 31: Reconciliation of Adjusted EBITDA – Poland
Appendix A – N on -GAAP F inancial M easures Reconciliation of Adjusted EBITDA (in thousands ) – P oland For the three months ended September 30, in PLN 2021 2020 Net Operating Revenue PLN 81,911 PLN 62,106 Net income attributable to Century Casinos, Inc. shareholders 6,196 321 Interest (income) exp
Slide 32: Reconciliation of Adjusted EBITDA – Corporate and Other
Appendix A – N on -GAAP F inancial M easures Reconciliation of Adjusted EBITDA (in thousands ) – C orporate and Other For the three months ended September 30, in USD 2021 2020 Net Operating Revenue $ 194 $ 143 Net loss attributable to Century Casinos, Inc. shareholders (7,908) (5,874) Interest expen
Slide 33: Reconciliation of Adjusted EBITDA Less Cash Payments on Master Lease
Appendix A – N on -GAAP F inancial M easures Reconciliation of Adjusted EBITDA and Adjusted EBITDA Less Cash Payments on Master Lease Financing Obligation (in thousands ) in USD Q4 2020 Q1 2021 Q2 2021 Q3 2021 Trailing 12-Month September 30, 2021 Trailing 12-Month December 31, 2020 Net earnings (los
Slide 34: Reconciliation of Net Debt
Appendix A – N on -GAAP F inancial M easures Reconciliation of Net Debt (in thousands ) Amounts in thousands September 30, 2021 December 31, 2020 Total long-term debt, including current portion $ 182,445 $ 184,550 Def erred financing costs 8,086 9,261 Total principal $ 190,531 $ 193,811 Less: Cash a