Century Casinos, Inc. · NASDAQ:CNTY
Century Casinos — Investor Presentation (June 2012)
29 slides from Century Casinos's investor presentation, June 2012
Slide 1: Corporate Presentation
CORPORATE PRESENTATION June 2012 Peter Hoetzinger, Co-CEO & President
Slide 2: Safe Harbor Statement
Safe Harbor Statement Century Casinos, Inc. (the "Company") has prepared this presentation for the sole purpose of providing information relating to the Company. The content of this presentation is based on public information and on data provided by the Company's management. No reliance may be place
Slide 3: International Casino Entertainment Company
International Casino Entertainment Company § Develop and operate mid-market, regional casinos in regulated markets world-wide § 24 casino operations (approx. 3,000 slots and 200 tables): – 4 in North America (US and Canada) – 7 in Eastern Europe (Poland) – 1 in the Caribbean (Aruba) – 12 on cruise
Slide 4: Investment Highlights
Investment Highlights § Established facilities in key markets with high barriers to entry (limited number of casino licenses in Canada and Poland) § As general economic conditions improve, streamlined operations bring high percentage of incremental revenues to the bottom line § Recent acquisition
Slide 5: Business Review
= o > i) o n n co) £ o 5 faa)
Slide 6: International Diversification
International Diversification Edmonton Calgary Denver Colorado Springs Eastern Europe (7 Casinos in Poland) Aruba Land-‐based Casinos (12) Ship-‐based Casinos (12) 6
Slide 7: Colorado Casino Market
Colorado Casino Market § We are in 2 out of 3 cities that allow casino gaming (outside of Indian reservations). Historic mining towns (Cripple Creek and Central City) have developed into tourist attractions. § Regulatory environment – $100 betting limits – All popular casino games available – Open
Slide 8: Colorado Hotel Casinos
Colorado Hotel Casinos Central City Cripple Creek Edmonton (near Denver, (near Colorado Alberta, Canada CO) Springs, CO) Ownership Wholly Owned Wholly Owned Opened/Acquired 2006 1993 Slot Machines 507 (100% TITO) 437 (100% TITO) Table Games 12 6 Hotel Rooms 26 21 Parking Garage Surface Restaurants/B
Slide 9: Alberta, Canada, Casino Market
Alberta, Canada, Casino Market § Limited number of casino licenses in Alberta – high barrier to entry § Alberta Gaming & Liquor Commission (AGLC) is investment partner – Revenue split provides incentive for AGLC to improve our business – Upgrading slot machines at both properties § Calgary Casino
Slide 10: Canada Hotel Casinos
Canada Hotel Casinos Calgary Edmonton Alberta, Canada Alberta, Canada Wholly Owned: Wholly Owned: Ownership AGLC split AGLC split Acquired Jan 2010 Opened/Acquired 2006 Re-Open Nov 2010 Gaming Machines 529 (100% TITO) 726 (100% TITO) Table Games 18 34 Hotel Rooms -- 26 Parking Surface Heated Garage
Slide 11: International Casinos: Poland
International Casinos: Poland § Casinos Poland Ltd. has a 56% share of the Polish Casino Market § Limited number of casino licenses – high barrier to entry § Operating at high-end hotel venues in cities throughout Poland § Solid performance continues despite - or because - of changes in Gaming L
Slide 12: International Casinos: Aruba
International Casinos: Aruba § December 2010: signed long-term management agreement with Carlson Radisson Hotel Group – Assist in managing the casino and receive management fee – No investment required from us § Equipment and interior design upgrade § Radisson Hotel & Spa Resort with 355 rooms an
Slide 13: International Casinos: Cruise Ships
International Casinos: Cruise Ships § Largest independent operator of casinos onboard luxury cruise ships § Opportunistic approach towards cruise lines with affluent passengers – Target smaller cruise lines with one to ten ships – Cruise lines with more ships tend to manage their own casino busine
Slide 14: International Casinos
International Casinos Aruba Poland Cruise Ships Antilles, Caribbean CNTY has a 1/3 stake in Management contract 100% owned and operated Ownership Casinos Poland Ltd. with Radisson hotel under concession contracts Opened/Acquired March 2007 December 2010 Varies # of Casinos 7, +1 in development 1 12
Slide 15: Revenue Diversification per Casino
Revenue Diversification per Casino Ships & Aruba 9% Cripple Creek Edmonton 16% 34% Central City 26% Calgary 15% 15
Slide 16: Adj. EBITDA Diversification per Casino
Adj. EBITDA Diversification per Casino Ships & Aruba 6% Cripple Creek 13% Edmonton 49% Central City 25% Calgary 7% 16
Slide 17: Financial Results 2011 vs. 2010
Financial Results 2011 vs. 2010 Net Opera6ng Revenue $ 70.9 Million + 17% Adj. EBITDA $ 10.7 Million + 35% Earnings from Opera6ons $ 4.3 Million + 300% Net Earnings $ 3.0 Million + 196% Earnings per Share $ 0.13 + 225% Net Cash $ 16.1 Million + 101% 17
Slide 18: Q1 2012 vs. Q1 2011
Q1 2012 vs. Q1 2011 Net Opera6ng Revenue $ 17.6 Million + 3% Adj. EBITDA $ 2.8 Million + 9% Earnings from Opera6ons $ 1.6 Million + 108% Net Earnings $ 1.1 Million + 211% Earnings per Share $ 0.05 + 150% Net Cash $ 16.2 Million + 71% Ø 9th consecuCve quarter with increases in both revenues and net
Slide 19: Net Operating Revenue
Net Operating Revenue (in USD Mio.) $25 $20 $17,6 $18,0 $18,1 $17,6 $17,1 $16,0 $15,6 $14,9 $15 $14,1 $10 $5 $0 Q1 Q2 Q3 Q4 2010 2011 2012 2010 2011 2010 2011 2010 2011 19
Slide 20: Adj. EBITDA
Adj. EBITDA (in USD Mio.) $3,5 $3,1 $3,0 $2,8 $2,8 $2,5 $2,4 $2,5 $2,3 $2,0 $2,0 $2,0 $1,5 $1,4 $1,0 $0,5 $0,0 Q1 Q2 Q3 Q4 2010 2011 2012 2010 2011 2010 2011 2010 2011 20
Slide 21: Earnings per Share
Earnings per Share $0,07 $0,06 $0,06 $0,05 $0,05 $0,04 $0,03 $0,03 $0,03 $0,03 $0,02 $0,02 $0,01 $0,01 $0,01 $0,00 -$0,01 -$0,01 -$0,02 Q1 Q2 Q3 Q4 2010 2011 2012 2010 2011 2010 2011 2010 *) 2011 *) EPS in Q4-2010 included a $1.2 mil gain on bargain purchase associated with the Calgary acquisition 2
Slide 22: Debt / Adj. EBITDA
Debt / Adj. EBITDA 5x 4,5x 4x 3x 2,1x 2x 1,7x 1x 0,9x 0,3x 0x 2008 2009 2010 2011 TTM 22
Slide 23: Summary & Outlook
Summary & Outlook § Internationally diversified portfolio is profitable and growing despite difficult economy – poised for further growth as general economy improves § 9 consecutive quarters with increases in both revenues and net earnings § One of the healthiest balance sheets in the industry (n
Slide 24: Contact Information
CONTACT INFORMATION Peter Hoetzinger Co CEO & President peter.hoetzinger@cnty.com US: + 1 (719) 689 5813 Europe: + 43 664 355 3935
Slide 25: Ti dh lad pall
Ti dh lad pall ioaiiibNe
Slide 26: Annexures
2) Oo — =) x< oO Cc cS <x
Slide 27: 2010 Transactions
2010 Transactions Land § Calgary - January acquisition of the Silver Dollar Casino for $11.5 mil - November $3 mil re-launch under Century brand § Cripple Creek, CO - September re-launch under Century brand § Central City, CO - December relocation of Deli and Poker room § Aruba - December agreem
Slide 28: Land Properties - Characteristics
Land Properties - Characteristics § Mid-size casinos, catering primarily to local customers with some tourism § Key Criteria – Well regulated markets with robust casino legislation – Immediate catchment area – residents within 60-90 minutes – Economic terms (gaming tax structure, investment requir
Slide 29: Management Team
Management Team § Erwin Haitzmann: Co Founder, Chairman of the Board, Co CEO 35 years casino experience § Peter Hoetzinger: Co Founder, Vice Chairman of the Board, Co CEO & President 25 years casino experience § Margaret Stapleton Executive VP of Finance § Timothy Wright Vice President Accountin