Century Casinos, Inc. · NASDAQ:CNTY
Century Casinos — Q3 2022 Earnings Presentation
45 slides from Century Casinos's earnings presentation, Nov 4, 2022
Slide 1: Financial Results Q3 2022
FINANCIAL RESULTS Q3 2022
Slide 2: Forward-Looking Statements, Business Environment & Risk Factors
Forward-Looking Statements, Business Environment & 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 Private
Slide 3: Notes on Presentation
Notes on Presentation COVID-19 UPDATE Since the inception of the COVID-19 pandemic in March 2020, the Company’s casinos have varied their operations based on the governmental health and safety requirements in the jurisdictions in which they are located. The COVID-19 pandemic impacted the Company’s r
Slide 4: New Developments
New Developments ROCKY GAP CASINO RESORT ACQUISITION On August 24, 2022, the Company entered into a definitive agreement with Lakes Maryland Development, LLC (“Lakes Maryland”), Golden Entertainment, Inc (“Golden”), and VICI Properties L.P. (“VICI PropCo”), pursuant to which the Company agreed to ac
Slide 5: Recent Developments – Century Casino Caruthersville
Recent Developments – Century Casino Caruthersville On October 26, 2022, the Missouri Gaming Commission approved the relocation of the casino at Century Casino Caruthersville Low water (“Caruthersville”) from the riverboat and the levels and barge to a land-based pavilion until the new access to the
Slide 6: Net Operating Revenue
Net Operating Revenue Q3 2022 by Reportable Segment and Operating Segment (1) (in USD) Canada 18% Calgary Colorado 6% 12% Edmonton 12% West Virginia Poland 27% Poland 19% 19% United States 63% Missouri 24% 1. Excludes the Corporate and Other Reportable Segment. 5
Slide 7: Earnings from Operations
Earnings from Operations Q3 2022 by Reportable Segment and Operating Segment (1) (in USD) Canada 17% Calgary 9% Colorado Poland Edmonton 21% 12% 8% Poland 12% West Virginia 16% United States 71% Missouri 34% 1. Excludes the Corporate and Other Reportable Segment. 6
Slide 8: Net Earnings Attributable to Century Casinos, Inc. Shareholders
Net Earnings Attributable to Century Casinos, Inc. Shareholders Q3 2022 by Reportable Segment and Operating Segment (1) (in USD) Canada United States 37% 34% Calgary 13% Colorado 33% Edmonton 24% West Virginia 8% Poland Missouri Poland 29% -7% 29% In the United States reportable segment, income tax
Slide 9: Adjusted EBITDA
Adjusted EBITDA (1) Q3 2022 by Reportable Segment and Operating Segment (2) (in USD) Canada 17% Calgary 8% Colorado Poland Edmonton 18% 11% 9% Poland 11% West Virginia 18% United States 72% Missouri 36% 1. Adjusted EBITDA is a non-GAAP financial measure. See Appendix for the definition and reconcili
Slide 10: Net Operating Revenue per Quarter
Net Operating Revenue per Quarter In USD (in millions) 140 120 116.6 111.1 112.6 107.3 103.1 100 95.7 92.2 87.7 84.8 80 72.4 67.2 60 52.4 52.9 45.6 43.6 45.1 40.6 39.6 40 36.1 20 0 Q1 Q2 Q3 Q4 2018 2019 2020 2021 2022 9
Slide 11: Adjusted EBITDA per Quarter
Adjusted EBITDA(1) per Quarter In USD (in millions) 35.0 33.1 29.8 30.0 28.1 25.2 24.9 25.0 23.8 22.2 20.0 18.3 14.7 15.0 9.6 9.8 10.0 6.6 6.7 6.7 7.1 6.4 5.8 4.7 5.0 0.0 (1.8) (5.0) Q1 Q2 Q3 Q4 2018 2019 2020 2021 2022 1. Adjusted EBITDA is a non-GAAP financial measure. See Appendix for the definit
Slide 12: Balance Sheet and Leverage
Balance Sheet and Leverage As of September 30, 2022 4.6x 3.4x 6.2x Total Principal Debt to Adjusted Net Debt to Adjusted EBITDA2 Lease Adjusted Net Leverage EBITDA1 (10.6x)3 As of 9/30/22 (in millions) 5.5x Lease Adjusted Net Leverage Cash $99.3 (8.0x)3 Total Principal Debt1 $367.3 Net Debt $268.0 L
Slide 13: Income Statement
Income Statement Selected information in USD, in millions except for per share Q3 2022 Q3 2021 Change Net Operating Revenue 112.6 116.6 -4% Earnings from Operations 20.0 25.7 -22% Net Earnings Attributable to Century Casinos, Inc. Shareholders 2.9 11.2 -74% Adjusted EBITDA1 28.1 33.1 -15% Basic Earn
Slide 14: United States Highlights
United States Highlights Selected information in USD, in millions Q3 2022 Q3 2021 Change Net Operating Revenue 70.7 73.9 -4% Operating Costs and Expenses 54.4 54.4 — Earnings from Operations 16.3 19.5 -16% Net Earnings Attributable to Century Casinos, 1 Inc. Shareholders 2.4 12.4 -81% 2 Adjusted EBI
Slide 15: Colorado Highlights
Colorado Highlights Selected information in USD, in millions Net Operating Revenue CRIPPLE CENTRAL CREEK CITY 16.0 13.5 14.0 12.111.6 12.5 19,610 22,640 12.0 9.4 10.3 10.4 9.5 11.3 10.0 Casino Sq. Casino Sq. 8.0 6.7 Footage Footage 6.0 376 413 4.0 2.0 2.0 Slot Machines Slot Machines 0.0 Q1 Q2 Q3 Q4
Slide 16: Missouri Highlights
Missouri Highlights Selected information in USD, in millions CAPE Net Operating Revenue CARUTHERSVILLE GIRARDEAU 40.0 34.1 41,530 21,000 35.0 31.0 28.7 29.0 29.7 28.3 30.0 26.8 23.9 24.5 Casino Sq. Casino Sq. 25.0 21.6 Footage Footage 20.0 15.0 843 519 10.0 9.6 5.0 Slot Machines Slot Machines 0.0 Q1
Slide 17: West Virginia Highlights
West Virginia Highlights Selected information in USD, in millions MOUNTAINEER Net Operating Revenue 35.0 31.730.4 30.629.7 72,380 28.4 28.7 30.0 25.123.926.3 24.5 25.0 Casino Sq. 20.0 Footage 15.0 12.2 1,033 10.0 5.0 Slot Machines 0.0 Q1 Q2 Q3 Q4 32 2020 2021 2022 Tables Adjusted EBITDA (1) 357 7.0
Slide 18: Canada Highlights
Canada Highlights Selected information in CAD, in millions Q3 2022 Q3 2021 Change Net Operating Revenue 26.2 26.9 -3% Operating Costs and Expenses 21.1 18.4 +15% Earnings from Operations 5.1 8.5 -40% Net (Loss) Earnings Attributable to Century Casinos, Inc. Shareholders -1.8 4.0 -145% Adjusted EBITD
Slide 19: Edmonton Highlights
Edmonton Highlights Selected information in CAD, in millions CENTURY Net Operating Revenue EDMONTON ST. ALBERT MILE 20.0 17.817.8 18.0 16.8 32,960 12,970 19,480 16.0 13.1 13.6 13.5 13.5 14.0 Casino Sq. Casino Sq. Casino Sq. 12.0 10.2 Footage Footage Footage 10.0 8.0 5.1 835 434 584 6.0 4.0 3.9 1.3 2
Slide 20: Calgary Highlights
Calgary Highlights1 Selected information in CAD, in millions CENTURY Net Operating Revenue DOWNS 10.0 9.1 9.0 8.5 8.6 8.3 25,500 8.0 6.7 7.5 7.1 7.0 6.4 Casino Sq. 6.0 Footage 5.0 4.0 3.1 673 3.0 2.0 1.2 2.6 Slot/VLT 1.0 0.0 Machines Q1 Q2 Q3 Q4 2020 2021 2022 Adjusted EBITDA2 5.0 4.3 4.0 3.4 3.0 2.
Slide 21: Poland Highlights
Poland Highlights Selected information in PLN, in millions Q3 2022 Q3 2021 Change Net Operating Revenue 102.2 81.9 +25% Operating Costs and Expenses 89.7 71.7 +25% Earnings from Operations 12.5 10.2 +22% Net Earnings Attributable to Century Casinos, Inc. Shareholders 8.9 6.2 +44% Adjusted EBITDA1 15
Slide 22: Poland Highlights
Poland Highlights Selected information in PLN, in millions CASINOS Net Operating Revenue POLAND 120.0 102.2 85,560 100.0 90.2 94.7 81.9 90.7 Casino Sq. 80.0 66.6 62.1 Footage 60.0 51.0 535 40.0 22.4 29.632.5 20.0 Slot Machines 0.0 Q1 Q2 Q3 Q4 117 2020 2021 2022 Tables Adjusted EBITDA1 8 20.0 15.5 15
Slide 23: Corporate and Other Highlights
Corporate and Other Highlights Selected information in USD, in millions Q3 2022 Q3 2021 Change The Corporate and Other reportable segment includes Cruise Net Operating Revenue Ships & Other and Corporate Other reporting units. 0.0 0.2 -81% Our equity investment in Smooth Bourbon, LLC is included
Slide 24: Century's Commitment
Environmental, Social and Governance (“ESG”) Century’s Commitment Environmental Social Responsibility Corporate Governance Century is committed to Century is involved with local Century created an ESG environmental responsibility in projects and charities in the Steering Committee to oversee the com
Slide 25: Projects & Pending Acquisitions
PROJECTS & PENDING ACQUISITIONS 24
Slide 26: Century is Well-Positioned for the Next Stage of Growth
Century is Well-Positioned for the Next Stage of Growth Century’s operating expertise has provided opportunities to make small yet meaningful changes that have long-term impact. Recently Completed or In-Process Organic Growth Projects Truing Up mobile app to enhance customer experience, build loya
Slide 27: Century is Well-Positioned for the Next Stage of Growth
Century is Well-Positioned for the Next Stage of Growth Missouri Projects Caruthersville Century recently purchased the neighboring two-story hotel. — The new Century hotel is the only hotel in downtown Caruthersville Caruthersville. Two-Story Hotel ― The hotel opened in late October 2022. Renderi
Slide 28: Nugget Casino Resort Property Overview
Nugget Casino Resort Property Overview Acquisition Pending Property Stats1 Owned Land Acreage Casino Sq. Ft. 29 50,200 Recent Renovation Slots $90+ million 859 Full-time Equivalent Table Games Employees 576 29 Rooms Restaurants 1,382 7 Convention Space Amphitheater Seats Sq. Ft. 110,000 8,555 Q3 202
Slide 29: Rocky Gap Casino Resort Property Overview
Rocky Gap Casino Resort Property Overview Acquisition Pending Property Stats1 Land Acreage2 Casino Sq. Ft. 270 25,000+ Recent Renovation Slots $10+ million 630 Employees Table Games 409 16 Food and Beverage Rooms Venues 198 5 Event Center Sq. Ft. Golf Course 5,000 18-hole Q3 2022 Adjusted Q3 2022 Re
Slide 30: Pro Forma Century Casinos, Inc. Portfolio
Pro Forma Century Casinos, Inc. Portfolio Acquisitions Pending Pending acquisition in Pending acquisition in Pro Forma Reno/Sparks, Nevada Maryland # of Properties 17 Properties 1 Property 1 Property 19 Properties # of Slot Machines 6,167 859 630 7,656 # of Table Games 226 29 16 271 # of Hotel Rooms
Slide 31: Appendix
APPENDIX 30
Slide 32: Abbreviations of Century Casinos Subsidiaries and Reporting Units
Appendix Abbreviations of Century Casinos, Inc. Subsidiaries and Certain Reporting Units Abbreviation Century Casino & Hotel – Central City CTL or Central City Century Casino & Hotel – Cripple Creek CRC or Cripple Creek Mountaineer Casino, Racetrack & Resort MTR or Mountaineer Century Casino Cape Gi
Slide 33: Non-GAAP Financial Measures
Appendix 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 the
Slide 34: Non-GAAP Financial Measures
Appendix 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 transacti
Slide 35: Non-GAAP Financial Measures
Appendix Non-GAAP Financial Measures The Company defines Net Debt as Total Principal Debt minus cash and cash equivalents. Total Principal Debt is defined as total long-term debt (including current portion) plus deferred financing costs. Net Debt is not considered a liquidity measure recognized unde
Slide 36: Reconciliation of Adjusted EBITDA
Appendix Non-GAAP Financial Measures – Reconciliation of Adjusted EBITDA Century Casinos, Inc. For the three months ended September 30, in USD, in thousands 2022 2021 Net Operating Revenue $ 112,552 $ 116,610 Net earnings attributable to Century Casinos, Inc. shareholders 2,944 11,226 Interest expen
Slide 37: Reconciliation of Adjusted EBITDA – United States
Appendix Non-GAAP Financial Measures – Reconciliation of Adjusted EBITDA United States For the three months ended September 30, 2022 Total United in USD, in thousands Colorado West Virginia Missouri States Net Operating Revenue $ 13,517 $ 30,391 $ 26,810 $ 70,718 Net income (loss) attributable to Ce
Slide 38: Reconciliation of Adjusted EBITDA – Canada
Appendix Non-GAAP Financial Measures – Reconciliation of Adjusted EBITDA Canada For the three months ended September 30, 2022 in CAD, in thousands Edmonton Calgary Total Canada Net Operating Revenue $ 17,843 $ 8,319 $ 26,162 Net (loss) income attributable to Century Casinos, Inc. shareholders (2,987
Slide 39: Reconciliation of Adjusted EBITDA – Poland
Appendix Non-GAAP Financial Measures – Reconciliation of Adjusted EBITDA Poland For the three months ended September 30, in PLN, in thousands 2022 2021 Net Operating Revenue PLN 102,186 PLN 81,911 Net income attributable to Century Casinos, Inc. shareholders 8,892 6,196 Interest (income) expense, ne
Slide 40: Reconciliation of Adjusted EBITDA – Corporate and Other
Appendix Non-GAAP Financial Measures – Reconciliation of Adjusted EBITDA Corporate and Other For the three months ended September 30, in USD, in thousands 2022 2021 Net Operating Revenue $ 36 $ 194 Net loss attributable to Century Casinos, Inc. shareholders (4,083) (7,908) Interest expense (income),
Slide 41: Reconciliation of Adjusted EBITDA – Nugget and Rocky Gap
Appendix Non-GAAP Financial Measures – Reconciliation of Adjusted EBITDA 1 Nugget Casino Resort For the three months ended September 30, in USD, in thousands 2022 Net Operating Revenue $ 31,457 Net income 2,875 Interest expense 25 Depreciation and amortization 2,827 Management fees 250 Rent expense
Slide 42: Reconciliation of Quarterly Adjusted EBITDA
Appendix Non-GAAP Financial Measures – Reconciliation of Quarterly Adjusted EBITDA 2018 2019 2020 2021 2022 in USD, in millions Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Net earnings (loss) attributable to Century Casinos, Inc. shareholders $ 0.9 $ 0.3 $ 1.6 $ 0.5 $ 1.1 $ (0.6) $ 0.5
Slide 43: Reconciliation of Adjusted EBITDA less Cash Payments on Master Lease
Appendix Non-GAAP Financial Measures – Reconciliation of Adjusted EBITDA and Adjusted EBITDA less Cash Payments on Master Lease Financing Obligation (in thousands) Trailing 12-Month Trailing 12-Month September 30, December 31, in USD, in thousands Q4 2021 Q1 2022 Q2 2022 Q3 2022 2022 2021 Net earnin
Slide 44: Calculation of Lease Adjusted Debt and Pro Forma Lease Adjusted Debt
Appendix Non-GAAP Financial Measures – Calculation of Lease Adjusted Debt and Pro Forma Lease Adjusted Debt September 30, 2022 Nugget Acquisition Rocky Gap Acquisition September 30, 2022 (1) (2) in dollars, in millions Current PENDING PENDING PRO FORMA Cash $ 99.3 $ - $ (56.1) $ 43.2 Total Principal
Slide 45: Reconciliation of Net Debt
Appendix Non-GAAP Financial Measures – Reconciliation of Net Debt Amounts in thousands September 30, 2022 December 31, 2021 Total long-term debt, including current portion $ 349,766 $ 181,484 Deferred financing costs 17,510 7,695 Total principal $ 367,276 $ 189,179 Less: Cash and cash equivalents $