Century Casinos, Inc. · NASDAQ:CNTY
Century Casinos — Q2 2018 Earnings Presentation
36 slides from Century Casinos's earnings presentation, 2018
Slide 1: Century Casinos Financial Results Q2 2018
CENTURY CASINOS Financial Results Q2 2018 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: Forward-Looking Statements, Business Environment and Risk Factors continued
Forward-Looking Statements, Business Environment and Risk Factors continued 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 m
Slide 4: Q2 2018 Net Operating Revenue by Reportable Segment and Operating Segment
Q2 2018 Net Operating Revenue by Reportable Segment and Operating Segment (in USD) Excluding Corporate Other Operating Segment CCB, Ships & Other 3% Canada 38% Poland 37% Ships & CCB Other CRA 1% 2% 13% CSA 6% CPL CAL 37% 5% CDR 12% CBS 2% United States CRC CTL CMR 22% 9% 13% 0% 4
Slide 5: Q2 2018 Earnings from Operations by Reportable Segment and Operating Segment
Q2 2018 Earnings from Operations by Reportable Segment and Operating Segment (in USD) Excluding Corporate Other Operating Segment CCB, Ships & Other -27% Poland -43% Canada Ships & 121% Other 2% CCB -29% CRA 51% CPL -43% CSA 19% CAL 0% United States CRC 28% 49% CDR 59% CTL 21% CMR -13% CBS 5% 5
Slide 6: Q2 2018 Net Income by Reportable Segment and Operating Segment
Q2 2018 Net Income Attributable to Century Casinos, Inc. Shareholders by Reportable Segment and Operating Segment (in USD) Excluding Corporate Other Operating Segment CCB, Ships & Other -16% Poland -39% Canada 98% Ships & CCB Other 2% -18% CRA 49% CPL -39% CSA 13% CAL 0% United States CRC 32% 57% CD
Slide 7: Q2 2018 Adjusted EBITDA by Reportable Segment and Operating Segment
Q2 2018 Adjusted EBITDA* by Reportable Segment and Operating Segment (in USD) Excluding Corporate Other Operating Segment CCB, Ships & Other, -10% Poland, 2% United States, 32% Ships & CCB Other 2% CPL -12% CRA 2% 28% CRC Canada, 76% 17% CSA 10% CTL 15% CAL 3% CMR 0% CBS CDR 2% 33% *Adjusted EBITDA
Slide 8: Net Operating Revenue per Quarter
Net Operating Revenue per Quarter (in USD) 45 40.6 41.0 39.6 39.3 40 37.9 37.3 36.4 36.3 35.2 34.5 35 33.2 33.5 31.6 31.3 31.9 30.4 29.1 30 28.1 25 20 15 10 5 0 Q1 Q2 Q3 Q4 2014 2015 2016 2017 2018 8
Slide 9: Balance Sheet
Balance Sheet (Selected Information in USD) In millions (except BVPS) June 30, 2018 December 31, 2017 Change Total Assets 269.4 274.9 (2%) Total Debt 54.3 56.7 (4%) Book Value per Share* 6.02 6.13 (2%) Net Debt** 0.1 (17.7) *Book Value per Share is defined as total Century Casinos, Inc. shareholders
Slide 10: Income Statement Q2 2018 Q2 2017
Income Statement (Selected Information in USD) In millions (except EPS) Q2 2018 Q2 2017 Change Net Operating Revenue 39.6 37.3 6% Earnings from Operations 1.0 3.6 (73%) Net Earnings Attributable to Century Casinos, Inc. Shareholders 0.3 1.8 (82%) Adjusted EBITDA* 4.7 6.4 (27%) Basic and Diluted Earn
Slide 11: Constant Currency Results (in USD)
Constant Currency Results (in USD) In millions Q2 2018 Q2 2017 Change Net Operating Revenue as reported (GAAP) 39.6 37.3 6% Foreign currency impact vs. 2017 (1.6) Net Operating Revenue constant currency (non-GAAP)* 38.0 37.3 2% Earnings from Operations as reported (GAAP) 1.0 3.6 (73%) Foreign curren
Slide 12: Constant Currency Results (in USD) Net Earnings
Constant Currency Results (in USD) In millions Q2 2018 Q2 2017 Change Net Earnings Attributable to Century Casinos, Inc. Shareholders as reported (GAAP) 0.3 1.8 (82%) Foreign currency impact vs. 2017 — Net Earnings Attributable to Century Casinos, Inc. Shareholders constant currency (non-GAAP)* 0.3
Slide 13: Debt to Adjusted EBITDA
Debt to Adjusted EBITDA* (in USD) As of June 30, 2018 and December 31, 2010-2017 4x 3.0x 3x 2.7x 2.2x 2.2x 2.2x 2x 1.7x 1.6x 1x 0.8x 0.3x 0x 2010 2011 2012 2013 2014 2015 2016 2017 2018 *Debt to Adjusted EBITDA is calculated by dividing the Company’s trailing twelve-month Adjusted EBITDA by the prin
Slide 14: Q2 Highlights – Canada
Q2 Highlights – CANADA (Selected Information in CAD) In millions Q2 2018 Q2 2017 Change Net Operating Revenue 19.8 18.9 5% Operating Costs and Expenses 14.9 14.0 7% Earnings from Operations 4.9 4.9 0% Net Earnings Attributable to Century Casinos, Inc. Shareholders 2.0 2.6 (25%) Adjusted EBITDA* 6.4
Slide 15: Century Resorts Alberta
Q2 Highlights – CANADA (Selected Information in CAD) CENTURY RESORTS ALBERTA In millions Q2 2018 Q2 2017 Change Net Operating Revenue 6.8 6.9 (1%) Operating Costs and Expenses 4.7 4.7 (0%) Earnings from Operations 2.1 2.1 (3%) Net Earnings Attributable to Century Casinos, Inc. Shareholders 1.2 1.5 (
Slide 16: Century Casino St. Albert
Q2 Highlights – CANADA (Selected Information in CAD) CENTURY CASINO ST. ALBERT In millions Q2 2018 Q2 2017 Change Net Operating Revenue 2.9 2.9 1% Operating Costs and Expenses 2.1 2.0 5% Earnings from Operations 0.8 0.8 (7%) Net Earnings Attributable to Century Casinos, Inc. Shareholders 0.3 0.4 (6%
Slide 17: Century Casino Calgary
Q2 Highlights – CANADA (Selected Information in CAD) CENTURY CASINO CALGARY In millions Q2 2018 Q2 2017 Change Net Operating Revenue 2.7 2.3 14% Operating Costs and Expenses 2.7 2.6 0% Earnings (Loss) from Operations — (0.3) 107% Net Loss Attributable to Century Casinos, Inc. Shareholders — (0.2) 86
Slide 18: Century Downs Racetrack and Casino
Q2 Highlights – CANADA (Selected Information in CAD) CENTURY DOWNS RACETRACK AND CASINO In millions Q2 2018 Q2 2017 Change Net Operating Revenue 6.5 5.8 11% Operating Costs and Expenses 4.1 3.8 8% Earnings from Operations 2.4 2.1 16% Net Earnings Attributable to Century Casinos, Inc. Shareholders 1.
Slide 19: Q2 Highlights – United States
Q2 Highlights – UNITED STATES (Selected Information in USD) In millions Q2 2018 Q2 2017 Change Net Operating Revenue 8.5 7.9 7% Operating Costs and Expenses 6.9 6.6 5% Earnings from Operations 1.5 1.3 15% Net Earnings Attributable to Century Casinos, Inc. Shareholders 1.2 0.8 38% Adjusted EBITDA* 2.
Slide 20: Central City
Q2 Highlights – UNITED STATES (Selected Information in USD) CENTRAL CITY In millions Q2 2018 Q2 2017 Change Net Operating Revenue 5.0 4.8 5% Operating Costs and Expenses 4.4 4.1 7% Earnings from Operations 0.7 0.7 (9%) Net Earnings Attributable to Century Casinos, Inc. Shareholders 0.5 0.5 10% Adjus
Slide 21: Cripple Creek
Q2 Highlights – UNITED STATES (Selected Information in USD) CRIPPLE CREEK In millions Q2 2018 Q2 2017 Change Net Operating Revenue 3.4 3.1 10% Operating Costs and Expenses 2.6 2.5 2% Earnings from Operations 0.9 0.6 43% Net Earnings Attributable to Century Casinos, Inc. Shareholders 0.7 0.4 70% Adju
Slide 22: Q2 Highlights – Poland
Q2 Highlights – POLAND (Selected Information in PLN) In millions Q2 2018 Q2 2017 Change Net Operating Revenue 52.2 54.9 (5%) Operating Costs and Expenses 57.0 52.3 9% (Loss) Earnings from Operations (4.9) 2.5 (293%) Net (Loss) Earnings Attributable to Century Casinos, Inc. Shareholders (2.6) 1.3 (30
Slide 23: Q2 Highlights – Corporate and Other
Q2 Highlights – CORPORATE AND OTHER (Selected Information in USD) In millions Q2 2018 Q2 2017 Change Net Operating Revenue 1.3 1.1 20% Operating Costs and Expenses 4.3 3.0 40% Loss from Operations (3.0) (2.0) (50%) Net Loss Attributable to Century Casinos, Inc. Shareholders (2.0) (1.3) (55%) Adjuste
Slide 24: Cruise Ships and Other
Q2 Highlights – CORPORATE AND OTHER (Selected Information in USD) CRUISE SHIPS AND OTHER In millions Q2 2018 Q2 2017 Change Net Operating Revenue 0.7 1.1 (30%) Operating Costs and Expenses 0.7 0.8 (16%) Earnings from Operations — 0.2 (80%) Net Earnings Attributable to Century Casinos, Inc. Sharehold
Slide 25: Century Casino Bath
Q2 Highlights – CORPORATE AND OTHER (Selected Information in USD) CENTURY CASINO BATH In millions Q2 2018 Net Operating Revenue 0.5 Operating Costs and Expenses 1.4 Loss from Operations (0.9) Net Loss Attributable to Century Casinos, Inc. Shareholders (0.4) Adjusted EBITDA* (0.8) Adjusted EBITDA Mar
Slide 26: Q2 Highlights – Additional Projects Under Development
Q2 Highlights – ADDITIONAL PROJECTS UNDER DEVELOPMENT Century Mile In September 2016, the Company was selected as the successful applicant by Horse Racing Alberta to own, build and operate a horse racing facility in the Edmonton market area, which the Company will operate as Century Mile Racetrack a
Slide 27: Appendix A – Abbreviations of Century Casinos, Inc. Subsidiaries and Certain 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 28: Appendix A – Non-GAAP Financial Measures
Appendix A – NON-GAAP FINANCIAL MEASURES The Company supplements its condensed 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 und
Slide 29: 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, amortization, non- controlling interest net earnings (loss) and transact
Slide 30: 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 revenue compared to prior period revenue using the prior period’s for
Slide 31: Appendix A – Non-GAAP Financial Measures
Appendix A – NON-GAAP FINANCIAL MEASURES Reconciliation of Adjusted EBITDA (in thousands) - CANADA For the three months ended June 30, 2018 Total in CAD CRA CSA CAL CDR CBS CMR Canada Net Operating Revenue $ 6,768 $ 2,898 $ 2,672 $ 6,463 $ 996 — $ 19,797 Net earnings (loss) attributable to Century C
Slide 32: Appendix A – Non-GAAP Financial Measures
Appendix A – NON-GAAP FINANCIAL MEASURES Reconciliation of Adjusted EBITDA (in thousands) – CANADA continued For the three months ended June 30, 2017 Total in CAD CRA CSA CAL CDR CBS CMR Canada Net Operating Revenue $ 6,853 $ 2,862 $ 2,340 $ 5,834 $ 995 — $ 18,884 Net earnings (loss) attributable to
Slide 33: Appendix A – Non-GAAP Financial Measures
Appendix A – NON-GAAP FINANCIAL MEASURES Reconciliation of Adjusted EBITDA (in thousands) – UNITED STATES For the three months ended June 30, 2018 Total United in USD Central City Cripple Creek States Net Operating Revenue $ 5,032 $ 3,444 $ 8,476 Net earnings (loss) attributable to Century Casinos,
Slide 34: Appendix A – Non-GAAP Financial Measures
Appendix A – NON-GAAP FINANCIAL MEASURES Reconciliation of Adjusted EBITDA (in thousands) – POLAND For the three months ended June 30, in PLN 2018 2017 Net Operating Revenue PLN 52,154 PLN 54,851 Net (loss) earnings attributable to Century Casinos, Inc. shareholders (2,613) 1,280 Interest expense (i
Slide 35: Appendix A – Non-GAAP Financial Measures
Appendix A – NON-GAAP FINANCIAL MEASURES Reconciliation of Adjusted EBITDA (in thousands) – CORPORATE AND OTHER For the three months ended June 30, 2018 Cruise Ships and Century Casino Total Corporate in USD Other Bath Corporate Other Other Net Operating Revenue $ 741 $ 533 — $ 1,274 Net earnings (l
Slide 36: Appendix A – Non-GAAP Financial Measures
Appendix A – NON-GAAP FINANCIAL MEASURES Reconciliation of Net Debt (in thousands) June 30, 2018 December 31, 2017 Amounts in thousands Total long-term debt, including current portion $ 54,296 $ 56,713 Deferred financing costs 208 258 Total principal $ 54,504 $ 56,971 Less: cash and cash equivalents