Century Casinos, Inc. · NASDAQ:CNTY
Century Casinos — Q1 2019 Earnings Presentation
39 slides from Century Casinos's earnings presentation, May 9, 2019
Slide 1: Century Casinos Financial Results Q1 2019
CENTURY CASINOS Financial Results Q1 2019 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, the term “PLN” refers to Polish zloty and the term “GBP” refers to the British pound. Adjusted EBITDA and Adjusted EBITDA margin are non-GAAP financial measures. See Appendix A
Slide 4: Net Operating Revenue by Reportable Segment and Operating Segment
Q1 2019 Net Operating Revenue by Reportable Segment and Operating Segment (in USD) Excluding Corporate Other Operating Segment Poland 43% United States 18% Canada 36% CCB, Ships & Other 3% CPL 43% CCB 2% Ships & Other 1% CRA 11% CSA 5% CAL 5% CDR 10% CBS 1% CMR 4% CTL 11% CRC 7% Century Casinos 4
Slide 5: Earnings from Operations by Reportable Segment and Operating Segment
Q1 2019 Earnings from Operations by Reportable Segment and Operating Segment (in USD) Excluding Corporate Other Operating Segment Poland 28% United States 23% Canada 62% CCB, Ships & Other -13% CCB -15% Ships & Other 2% CRA 26% CSA 10% CAL 5% CDR 34% CBS 1% CMR -14% CTL 11% CRC 12% CPL 28% CCB -15%
Slide 6: Net Income Attributable to Shareholders by Segment
Q1 2019 Net Income Attributable to Century Casinos, Inc. Shareholders by Reportable Segment and Operating Segment (in USD) Excluding Corporate Other Operating Segment Poland 33% United States 35% Canada 57% CCB, Ships & Other -35% CCB -28% Ships & Other 3% CRA 32% CSA 8% CAL 8% CDR 34% CBS 1% CMR -2
Slide 7: Adjusted EBITDA by Reportable Segment and Operating Segment
Q1 2019 Adjusted EBITDA* by Reportable Segment and Operating Segment (in USD) Excluding Corporate Other Operating Segment Poland 28% United States 22% Canada 56% CCB, Ships & Other -6% CCB -8% Ships & Other 2% CRA 20% CSA 7% CAL 5% CDR 26% CBS 1% CMR -3% CTL 11% CRC 11% CPL 28% Century Casinos 7
Slide 8: Net Operating Revenue per Quarter
Net Operating Revenue per Quarter (in USD) 0 5 10 15 20 25 30 35 40 45 50 Q1 30.4 33.2 36.4 40.6 45.6 Q2 37.9 35.2 37.3 39.6 Q3 33.5 34.5 41.0 43.6Q4 31.9 36.3 39.3 45.1 2015 2016 2017 2018 2019 Century Casinos 8
Slide 9: Balance Sheet
Balance Sheet (Selected Information in USD) In millions (except BVPS) March 31, 2019 December 31, 2018 Change Total Assets 333.1 278.8 19% Total Debt 67.8 59.5 14% Book Value per Share* 6.08 6.00 1% Net Debt** 18.7 14.4 * *Book Value per Share is defined as total Century Casinos, Inc. shareholders’
Slide 10: Income Statement
Income Statement (Selected Information in USD) In millions (except EPS) Q1 2019 Q1 2018 Change Net Operating Revenue 45.6 40.6 12% Earnings from Operations 3.4 3.3 6% Net Earnings Attributable to Century Casinos, Inc. Shareholders 1.1 0.9 15% Adjusted EBITDA* 6.7 6.6 2% Basic and Diluted Earnings pe
Slide 11: Constant Currency Results
Constant Currency Results (in USD) In millions Q1 2019 Q1 2018 Change Net Operating Revenue as reported (GAAP) 45.6 40.6 12% Foreign currency impact vs. 2018 3.2 Net Operating Revenue constant currency (non-GAAP) * 48.8 40.6 20% Earnings from Operations as reported (GAAP) 3.4 3.3 6% Foreign currency
Slide 12: Constant Currency Results
Constant Currency Results (in USD) In millions Q1 2019 Q1 2018 Change Net Earnings Attributable to Century Casinos, Inc. Shareholders as reported (GAAP) 1.1 0.9 15% Foreign currency impact vs. 201 8 0. 2 Net Earnings Attributable to Century Casinos, Inc. Shareholders constant currency (non-GAAP) * 1
Slide 13: Debt and Net Debt to Adjusted EBITDA
Debt and Net Debt to Adjusted EBITDA* (in USD) As of March 31, 2019 and for the years ended December 31, 2011-2018 -3x -2x -1x 0x 1x 2x 3x 4x 2011 2012 2013 2014 2015 2016 2017 2018 2019 01.5x 0.8x 02.0x 0.3x 0.5x 2.7x 1.1x 3.0x 0.3x 1.6x 0.7x 2.2x -0.7x 2.2x 0.6x 2.5x 0.8x 2.9x Debt to Adjusted EBI
Slide 14: Canada
Q1 2019 Highlights – CANADA (Selected Information in CAD) In millions Q1 2019 Q1 2018 Change Net Operating Revenue 21.7 18.6 17% Operating Costs and Expenses 16.8 14.1 19% Earnings from Operations 4.9 4.5 9% Net Earnings Attributable to Century Casinos, Inc. Shareholders 2.8 2.1 30% Adjusted EBITDA*
Slide 15: Canada - Century Resorts Alberta
Q1 2019 Highlights – CANADA (Selected Information in CAD) Century Resorts Alberta In millions Q1 2019 Q1 2018 Change Net Operating Revenue 6.8 6.7 1% Operating Costs and Expenses 4.8 4.7 1% Earnings from Operations 2.1 2.0 1% Net Earnings Attributable to Century Casinos, Inc. Shareholders 1.9 1.3 42
Slide 16: Canada - Century Casino St. Albert
Q1 2019 Highlights – CANADA (Selected Information in CAD) Century Casino St. Albert In millions Q1 2019 Q1 2018 Change Net Operating Revenue 2.8 2.7 4% Operating Costs and Expenses 2.1 2.1 (2%) Earnings from Operations 0.8 0.6 23% Net Earnings Attributable to Century Casinos, Inc. Shareholders 0.3 0
Slide 17: Canada - Century Mile Racetrack and Casino
Q1 2019 Highlights – CANADA (Selected Information in CAD) Century Mile Racetrack and Casino In millions Q1 2019 Q1 2018 Change Net Operating Revenue 2.1 – 100% Operating Costs and Expenses 3.2 0.4 779% Losses from Operations (1.1) (0.4) 779% Net Losses Attributable to Century Casinos, Inc. Sharehold
Slide 18: Canada - Century Casino Calgary
Q1 2019 Highlights – CANADA (Selected Information in CAD) Century Casino Calgary In millions Q1 2019 Q1 2018 Change Net Operating Revenue 3.0 2.8 8% Operating Costs and Expenses 2.6 2.6 0% Earnings from Operations 0.4 0.2 118% Net Earnings Attributable to Century Casinos, Inc. Shareholders 0.3 0.1 1
Slide 19: Canada - Century Downs Racetrack and Casino
Q1 2019 Highlights – CANADA (Selected Information in CAD) Century Downs Racetrack and Casino In millions Q1 2019 Q1 2018 Change Net Operating Revenue 6.2 3.0 2.8 8% Operating Costs and Expenses 3.5 3.6 (3%) Earnings from Operations 2.7 2.0 36% Net Earnings Attributable to Century Casinos, Inc. Share
Slide 20: United States
Q1 2019 Highlights – UNITED STATES (Selected Information in USD) In millions Q1 2019 Q1 2018 Change Net Operating Revenue 8.1 7.7 5% Operating Costs and Expenses 6.7 6.5 3% Earnings from Operations 1.3 1.2 14% Net Earnings Attributable to Century Casinos, Inc. Shareholders 1.0 0.9 13% Adjusted EBITD
Slide 21: United States - Central City
Q1 2019 Highlights – UNITED STATES (Selected Information in USD) Central City In millions Q1 2019 Q1 2018 Change Net Operating Revenue 4.7 4.6 3% Operating Costs and Expenses 4.1 4.0 1% Earnings from Operations 0.7 0.6 13% Net Earnings Attributable to Century Casinos, Inc. Shareholders 0.5 0.4 10% A
Slide 22: United States - Cripple Creek
Q1 2019 Highlights – UNITED STATES (Selected Information in USD) Cripple Creek In millions Q1 2019 Q1 2018 Change Net Operating Revenue 3.3 3.1 8% Operating Costs and Expenses 2.7 2.5 6% Earnings from Operations 0.7 0.6 15% Net Earnings Attributable to Century Casinos, Inc. Shareholders 0.5 0.4 15%
Slide 23: Poland
Q1 2019 Highlights – POLAND (Selected Information in PLN) In millions Q1 2019 Q1 2018 Change Net Operating Revenue 74.8 59.1 27% Operating Costs and Expenses 68.5 55.6 23% Earnings from Operations 6.3 3.5 83% Net Earnings Attributable to Century Casinos, Inc. Shareholders 3.2 1.6 94% Adjusted EBITDA
Slide 24: Corporate and Other
Q1 2019 Highlights – CORPORATE AND OTHER (Selected Information in USD ) In millions Q1 2019 Q1 2018 Change Net Operating Revenue 1.5 0.9 74% Operating Costs and Expenses 4.8 3.4 42% Loss from Operations (3.3) (2.5) (31%) Net (Loss) Earnings Attributable to Century Casinos, Inc. Shareholders (2.4) (2
Slide 25: Corporate and Other - Cruise Ships and Other
Q1 2019 Highlights – CORPORATE AND OTHER Cruise Ships and Other (Selected Information in USD) In millions Q1 2019 Q1 2018 Change Net Operating Revenue 0.6 0.9 (30%) Operating Costs and Expenses 0.5 0.8 (40%) Earnings from Operations 0.1 – 206% Net Earnings Attributable to Century Casinos, Inc. Share
Slide 26: Corporate and Other - Century Casino Bath
Q1 2019 Highlights – CORPORATE AND OTHER Century Casino Bath (Selected Information in GBP) In millions Q1 2019 Q1 2018 Change Net Operating Revenue 0.7 – 100% Operating Costs and Expenses 1.4 0.2 492% Loss from Operations (0.7) (0.2) (198%) Net Loss Attributable to Century Casinos, Inc. Shareholders
Slide 27: Additional Projects Under Development
Q1 2019 Highlights – ADDITIONAL PROJECTS UNDER DEVELOPMENT Bermuda In August 2017, the Company announced that, together with Hamilton Properties Limited, it had submitted a casino license application to the Bermudan government for a casino at the Hamilton Princess Hotel & Beach Club in Hamilton, Ber
Slide 28: 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 St. Albert CSA Century Casino Calgary CAL Century Downs Racetrack and Casino CDR Century Bets! CBS Century Mile Racetrack and C
Slide 29: Appendix A - Non-GAAP Financial Measures
Appendix A – NON-GAAP FINANCIAL MEASURES 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 understanding
Slide 30: 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 and amortization, non-controlling interests net earnings (loss) and trans
Slide 31: 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 financial information compared to prior period financial information
Slide 32: Reconciliation of Adjusted EBITDA - Canada 2019
Appendix A – NON-GAAP FINANCIAL MEASURES Reconciliation of Adjusted EBITDA (in thousands) – CANADA For the three months ended March 31, 2019 in CAD CRA CSA CAL CR CBS CMR Total Canada Net Operating Revenue $6,835 $2,845 $3,012 $6,192 $681 $2,110 $21,675 Net earnings (loss) attributable to Century Ca
Slide 33: Reconciliation of Adjusted EBITDA - Canada 2018
Appendix A – NON-GAAP FINANCIAL MEASURES Reconciliation of Adjusted EBITDA (in thousands) – CANADA For the three months ended March 31, 2018 in CAD CRA CSA CAL CR CBS CMR Total Canada Net Operating Revenue $6, 743 $2, 731 $ 2,792 $ 5,575 $ 727 $ - $ 18,568 Net earnings (loss) attributable to Century
Slide 34: Reconciliation of Adjusted EBITDA - United States
Appendix A – NON-GAAP FINANCIAL MEASURES Reconciliation of Adjusted EBITDA (in thousands) – UNITED STATES For the three months ended March 31, 2019 in USD Central City Cripple Creek Total United States Net Operating Revenue $4,739 $3,329 $8,068 Net earnings attributable to Century Casinos, Inc. shar
Slide 35: Reconciliation of Adjusted EBITDA - Poland
Appendix A – NON-GAAP FINANCIAL MEASURES Reconciliation of Adjusted EBITDA (in thousands) – POLAND For the three months ended March 31, 2019 in PLN 2019 2018 Net Operating Revenue PLN 74,833 PLN 59,103 Net earnings attributable to Century Casinos, Inc. shareholders 3,170 1,637 Interest expense (inco
Slide 36: Reconciliation of Adjusted EBITDA - 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, 2019 in USD Cruise Ships and Other Century Casino Bath Corporate Other Total Corporate and Other Net Operating Revenue $601 $895 - $1,496 Net earnings
Slide 37: Reconciliation of Adjusted EBITDA - Century Casino Bath
Appendix A – NON-GAAP FINANCIAL MEASURES Reconciliation of Adjusted EBITDA (in thousands) – CENTURY CASINO BATH in GBP For the three months ended March 31, 2019 2018 Net Operating Revenue GBP 686 GBP – Net loss attributable to Century Casinos, Inc. shareholders (454) (142) Interest expense (income),
Slide 38: Reconciliation of Net Debt
Appendix A – NON-GAAP FINANCIAL MEASURES Reconciliation of Net Debt (in thousands) Amounts in thousands March 31, 2019 March 31, 2018 Total long-term debt, including current portion $67,772 $53,969 Deferred financing costs 477 220 Total principal $68,249 $54,189 Less: cash and cash equivalents $49,5
Slide 39: Reconciliation of Net Debt
Appendix A – NON-GAAP FINANCIAL MEASURES Reconciliation of Net Debt (in thousands) Amounts in thousands December 31, 2011 2012 2013 2014 2015 2016 2017 2018 Total long-term debt, including current portion $8,999 $3,079 $33,738 $37,894 $36,520 $55,609 $56,713 $59,523 Deferred financing costs 101 485