Century Casinos, Inc. · NASDAQ:CNTY
Century Casinos — Q4 2016 Earnings Presentation
37 slides from Century Casinos's earnings presentation, Apr 17, 2017
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Slide 2: Corporate Presentation Q4 and YTD 2016
CORPORATE PRESENTATION! ! Q4 and YTD 2016 ! Peter Hoetzinger Co Founder, Co CEO & President April 2017 2
Slide 3: International Casino and Entertainment Company
International Casino and Entertainment Company! • Developer and operator of mid-market, mid-size casinos in regulated markets world-wide • Focus on entertainment with gaming and attractive non-gaming facilities (urban casino resort concept) • Target markets include locals and tourists • 1,800 cooper
Slide 4: International Casino and Entertainment Company
International Casino and Entertainment Company! • 47 casinos and off-track betting sites with 4,500 slots and 200 tables in – USA (Colorado) – Canada (Alberta) – Europe (Poland) – Caribbean (Aruba) – Argentina (Mendoza) – Luxury cruise vessels 4
Slide 5: International Diversification
International Diversification! Edmonton (2) Southern Alberta (18) ! Calgary (2) Denver Colorado Springs ! ! Poland (8) ! ! Aruba !! ! ! ! ! ! Argentina ! Land-based Casinos (16) Off-track Betting Sites (18) ! Ship-based Casinos (13) 5
Slide 6: Milestones
Milestones! • 1992 Company founded by Co CEOs Erwin Haitzmann and Peter Hoetzinger • 1993 First casino on cruise vessel • 1994 First casino in Colorado Listing on NASDAQ • 2000 Casinos in South Africa (sold in 2009 at approx. 9 x adj. EBITDA) • 2006 Market-entry Canada (Edmonton) • 2007 Market-entry
Slide 7: Overview Existing Properties
Overview Existing Properties! 7
Slide 8: Century Casino Cripple Creek
Century Casino Cripple Creek Near Colorado Springs, Colorado, USA Wholly Owned Opened in 1994 6 gaming tables, 445 gaming machines 1 restaurant, 2 bars 21 hotel rooms, 300+ parking 8
Slide 9: Century Casino Central City
Century Casino Central City Near Denver, Colorado, USA Wholly Owned, Opened in 2006 7 gaming tables, 495 gaming machines 2 restaurants, 1 bar 26 hotel rooms, 500 car parking garage 9
Slide 10: Century Casino Edmonton
Century Casino Edmonton In Edmonton, Alberta, Canada Wholly Owned Opened in 2006 34 gaming tables, 794 gaming machines 4 restaurants, 2 bars 26 hotel rooms, heated parking garage Showroom and comedy club 10
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Slide 12: Century Casino St. Albert
Century Casino St. Albert 11 miles from Century Casino Edmonton Acquisition closed on October 1, 2016 CAN $27.9 mil total investment 11 gaming tables, 382 gaming machines Restaurant, bar, lounge, banquet for 175 Expect operational synergies 12
Slide 13: Century Casino Calgary
Century Casino Calgary In Calgary, Alberta, Canada Wholly Owned Purchased 2010, renovated 2011 16 gaming tables, 529 gaming machines 1 restaurant, 4 bars Off-track horse betting parlor 1,100 seat showroom, 700+ parking 13
Slide 14: Century Downs
Century Downs North of Calgary, Alberta, Canada 75% ownership, full management control Opened in April 2015 557 gaming machines, electronic tables Restaurant, lounge & bar, event venues 5.5 furlong (0.7 miles) racetrack Off-track horse betting parlor 14
Slide 15: Century Bets
Century Bets! Exclusive license for Southern Alberta Pari-mutuel off-track horse betting network Signal to 18 off-track horse betting parlors 100+ racetracks worldwide under contract 15
Slide 16: Casinos Poland
Casinos Poland Eight casinos in major cities in Poland 66.6% ownership stake since April 2013 75 gaming tables, 50 gaming machines High-quality casinos in 4- and 5-star hotels Limited number of licenses Catering to international guests and locals 16
Slide 17: Mendoza, Argentina
Mendoza, Argentina Minority stake in Mendoza Central SA Long-term consulting services agreement Main shareholders affiliates of UnoMedios MCE leases slots to Casino de Mendoza MCE receives 43% of slot revenue Potential to grow in Latin America (Brazil) 17
Slide 18: Aruba, Caribbean
Aruba, Caribbean The Casino in the Hilton Aruba Resort Management agreement, no investment 12 gaming tables, 176 gaming machines Catering to international guests and locals 365 rooms and suites 18
Slide 19: Cruise Vessels
Cruise Vessels Largest independent ship casino operator 13 casinos on luxury vessels 42 gaming tables, 221 gaming machines Maritime Labor Convention 2006 certified 19
Slide 20: Diamond Cruises (China)
Diamond Cruises (China) Glory Sea Start in summer 2016, home port Shanghai 17 Tables, 20 Slots 1,200 max. passengers 20
Slide 21: Old
Old South Korea ERIN oy D "po Gwangju Busan ‘4 Mores 3 21
Slide 22: Financial Results
Financial Results! 22
Slide 23: Income Statement
Income Statement! In USD millions Q4 2016 Q4 2015 Change Net Operating Revenue as reported (GAAP) 36.3 31.9 14% Unfavorable foreign currency impact vs. Q4 2015 0.7 Adjusted for Constant Currency (non-GAAP)* 37.0 31.9 16%! Adjusted EBITDA as reported 6.3 4.5 40% Unfavorable foreign currency impact vs
Slide 24: USA (Colorado) Q4 2016 vs. Q4 2015
USA (Colorado) Q4 2016 vs. Q4 2015! Net Operating Revenue 11%! Adj. EBITDA 38%! Century Casino & Hotel Central City! The economy and consumer sentiment in the greater Denver metro area continue to be strong and we see consumers growing more confident and showing a greater willingness to spend. Resul
Slide 25: Canada (Alberta) Q4 2016 vs. Q4 2015
Canada (Alberta) Q4 2016 vs. Q4 2015! Net Operating Revenue 8%! Adj. EBITDA 43%! Century Casino & Hotel Edmonton! Our largest property. Extensive construction and remodel of gaming floor, VIP area and restaurants/bars finalized in Nov 2016. Mid single-digit growth in table drop and slot coin-in. ! C
Slide 26: Poland (Eastern Europe) Q4 2016 vs. Q4 2015
Poland (Eastern Europe) Q4 2016 vs. Q4 2015! Net Operating Revenue 23%! Adj. EBITDA 52%! ! Eight Casinos in Warsaw (2), Krakow, Lodz, Wroclaw, Poznan, Sosnowiec and Plock Strong operational growth, both slot and table play up year-over-year. F&B revenue up double-digit as well. Player loyalty progra
Slide 27: Ship Casinos and Management Contracts Q4 2016 vs. Q4 2015
Ship Casinos and Management Contracts Q4 2016 vs. Q4 2015! Net Operating Revenue 58%! Adj. EBITDA (43%)! Mein Schiff 1, 2, 3, 4 and 5, Discovery (TUI Cruises)! Wind Surf, Star, Spirit, Star Pride, Breeze and Legend (Windstar Cruises)! Glory Sea (Diamond Cruises, China)! Oceania Cruises and Seven Sea
Slide 28: Q4 2016 Net Operating Revenue by Operating Segment
Q4 2016 Net Operating Revenue by Operating Segment! Corporate and Other 4% Canada 33% Ships & Poland Other CRA 43% 3% 14% CSA 5% CAL CPL 5% 41% CDR 10% CBS United States -3% 20% CRC CTL 11% 8% 28
Slide 29: Q4 2016 Adjusted EBITDA by Operating Segment
Q4 2016 Adjusted EBITDA by Operating Segment! Ships & Other 2% Poland 29% Canada Ships & Other 51% 3% CRA 23% CPL 29% CSA 7% CAL 1% United States CRC 18% 9% CDR CTL CBS 19% 8% 1% 29
Slide 30: Net Operating Revenue per Quarter
Net Operating Revenue per Quarter (in USD millions)! 40 35 30 25 20 15 10 5 0 Q1 Q2 Q3 Q4 2012 2013 2014 2015 2016 30
Slide 31: Debt to Adjusted EBITDA
Debt to Adjusted EBITDA (as of December 31, 2016)! 5x 4.3x 4x 2.9x 3x 2.7x 2.2x 2.0x 2x 1.7x 1.6x 1x 0.8x 0.3x 0x 2008 2009 2010 2011 2012 2013 2014 2015 2016 Debt includes $0.2 million related to Casinos Poland, Ltd., $14.5 million related to Century Downs Racetrack and Casino’s long-term land leas
Slide 32: Confirmed New Developments
Confirmed New Developments! 32
Slide 33: REC and Racetrack Edmonton
REC and Racetrack Edmonton Project approved by AGLC and HRA Approx. CAN $50 million total project cost Edmonton Int’l Airport, one-mile Racetrack 600 gaming machines, parimutuel wagering Restaurant, bar, lounge, entertainment Projected opening: end 2018 / early 2019 33
Slide 34: Century Mile project location map
Century Casino St. Albert Century Casino Casino Yellowhead Northlands Park Palace Casino Grand Villa Casino River Cree Casino Casino Edmonton 25 miles 20 miles Century Mile project 34
Slide 35: Cruise Vessels
Cruise Vessels In Q3 2017, will add casino on Mein Schiff 6 35
Slide 36: Looking Ahead
Looking Ahead! • Robust operations with organic growth • Largest property (Edmonton) newly refurbished, beautiful new VIP casino areas • Newly opened ship-casinos expected to add from Q4 2016 forward • Newly acquired Apex Casino (now Century Casino St. Albert) accretive from Q4 2016 forward • South
Slide 37: Peter Hoetzinger
Peter Hoetzinger Co Founder, Co CEO & President peter.hoetzinger@cnty.com USA: (719) 689 5813 Europe: +43 664 355 3935 37