Century Casinos, Inc. · NASDAQ:CNTY
Century Casinos — Q2 2015 Earnings Presentation
25 slides from Century Casinos's earnings presentation, Aug 7, 2015
Slide 1: Financial Results Q2 2015
Financial Results Q2 2015
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: Q2 2015 Results by Segment (in USD)
Q2 2015 Results by Segment (in USD) *Adjusted EBITDA is a non-GAAP financial measure. See Appendix A for the definition and reconciliation of Adjusted EBITDA. **Adjusted EBITDA for Corporate and Other represents only our cruise ship, Aruba and MCE agreements. Adjusted EBITDA from Corporate Other is
Slide 4: Net Operating Revenue per Quarter
Net Operating Revenue per Quarter $14.1$17.1$17.6$18.0$29.1$30.4$14.9$18.0$17.8$28.3$31.6$37.9$16.0$18.1$18.7$28.8$28.1$15.6$17.6$17.7$29.4$31.3$0$5$10$15$20$25$30$35$402010201120122013201420152010201120122013201420152010201120122013201420102011201220132014(in millions) Net Operating Revenue Q1 Q4 Q
Slide 5: Income Statement and Balance Sheet
Income Statement and Balance Sheet (select information as of June 30, 2015) In USD mil (except EPS and BVPS) Q2 2015 Q2 2014 Change Net Operating Revenue 37.9 31.6 20% Adjusted EBITDA 6.8 3.2 116% Earnings per Share 0.27 0.01 2600% Total Assets 194.7 190.5 2% Book Value per Share 5.05 5.02 1% Net De
Slide 6: Constant Currency Results
Constant Currency Results In USD millions Q2 2015 Q2 2014 Change Net Operating Revenue as reported (GAAP) 37.9 31.6 20% Unfavorable foreign currency impact vs. 2014 4.5 Constant Currency (non-GAAP)* 42.4 31.6 34% Adjusted EBITDA as reported 6.8 3.2 116% Unfavorable foreign currency impact vs. 2014 1
Slide 7: Debt to Adjusted EBITDA
Debt to Adjusted EBITDA (in USD) 4.5x 2.1x 1.7x 0.9x 0.3x 2.7x 3.0x 2.4x 0x1x2x3x4x5x20082009201020112012201320142015Debt/Adj. EBITDA
Slide 8: Canada
Q2 Highlights – Canada (Selected Information as of June 30, 2015) In CAD mil Q2 2015 Q2 2014 Change Net Operating Revenue 16.4 9.5 72% Operating Costs and Expenses 11.1 7.3 52% Adjusted EBITDA 5.9 2.7 118% Adjusted EBITDA Margin 36% 28%
Slide 9: Canada: Edmonton
Q2 Highlights – Canada (Selected Information as of June 30, 2015) Edmonton In CAD mil Q2 2015 Q2 2014 Change Net Operating Revenue 7.2 6.9 4% Operating Costs and Expenses 4.7 4.6 1% Adjusted EBITDA 2.8 2.5 11% Adjusted EBITDA Margin 39% 37% .Gaming revenue increased CAD 0.2 million, or 4%. •Increase
Slide 10: Canada: Calgary
Q2 Highlights – Canada (Selected Information as of June 30, 2015) Calgary In CAD mil Q2 2015 Q2 2014 Change Net Operating Revenue 2.4 2.6 (6%) Operating Costs and Expenses 2.3 2.4 (6%) Adjusted EBITDA 0.3 0.4 (12%) Adjusted EBITDA Margin 14% 15%
Slide 11: Canada: Century Downs Racetrack and Casino
Q2 Highlights – Canada (Selected Information as of June 30, 2015) Century Downs Racetrack and Casino In CAD mil Q2 2015 Q2 2014 Change Net Operating Revenue 5.8 0.1 7558% Operating Costs and Expenses 3.5 0.3 1086% Adjusted EBITDA 2.5 (0.2) 1213% Adjusted EBITDA Margin 43% (292%) .Casino opened on Ap
Slide 12: Canada: Century Bets!
Q2 Highlights – Canada (Selected Information as of June 30, 2015) Century Bets! In CAD mil Q2 2015 Net Operating Revenue 1.0 Operating Costs and Expenses 0.7 Adjusted EBITDA 0.3 Adjusted EBITDA Margin 27% .Century Bets! was formed in January 2015. .Century Bets! began operating the pari-mutuel off-t
Slide 13: United States
Q2 Highlights – United States (Selected Information as of June 30, 2015) In USD mil Q2 2015 Q2 2014 Change Net Operating Revenue 7.2 6.7 7% Operating Costs and Expenses 6.1 6.1 0% Adjusted EBITDA 1.7 1.2 40% Adjusted EBITDA Margin 24% 18%
Slide 14: United States: Central City
Q2 Highlights – United States (Selected Information as of June 30, 2015) Central City In USD mil Q2 2015 Q2 2014 Change Net Operating Revenue 4.3 4.1 5% Operating Costs and Expenses 3.6 3.7 (1%) Adjusted EBITDA 1.0 0.7 33% Adjusted EBITDA Margin 23% 18% .Gaming revenue increased $0.4 million, or 8%.
Slide 15: United States: Cripple Creek
Q2 Highlights – United States (Selected Information as of June 30, 2015) Cripple Creek In USD mil Q2 2015 Q2 2014 Change Net Operating Revenue 2.9 2.7 11% Operating Costs and Expenses 2.5 2.5 2% Adjusted EBITDA 0.7 0.5 52% Adjusted EBITDA Margin 25% 18% .Gaming revenue increased $0.2 million, or 8%.
Slide 16: Poland
Q2 Highlights – Poland (Selected Information as of June 30, 2015) In PLN mil Q2 2015 Q2 2014 Change Net Operating Revenue 47.6 43.3 10% Operating Costs and Expenses 43.4 45.1 (4%) Adjusted EBITDA 6.6 3.0 123% Adjusted EBITDA Margin 14% 7% .Gaming revenue increased PLN 3.5 million, or 8%. •Added 57 n
Slide 17: Corporate and Other
Q2 Highlights – Corporate and Other (Selected Information as of June 30, 2015) In USD mil Q2 2015 Q2 2014 Change Net Operating Revenue 4.5 1.9 141% Operating Costs and Expenses 3.1 3.6 (13%) Adjusted EBITDA (1.5) (1.5) 3% Adjusted EBITDA Margin N/A N/A
Slide 18: Corporate and Other: Cruise Ships and Other
Q2 Highlights – Corporate and Other (Selected Information as of June 30, 2015) Cruise Ships and Other In USD mil Q2 2015 Q2 2014 Change Net Operating Revenue 1.1 1.9 (40%) Operating Costs and Expenses 0.9 1.8 (48%) Adjusted EBITDA 0.2 0.2 6% Adjusted EBITDA Margin 18% 10% .In March 2015, we mutually
Slide 19: Corporate and Other: Corporate Other
Q2 Highlights – Corporate and Other (Selected Information as of June 30, 2015) Corporate Other In USD mil Q2 2015 Q2 2014 Change Net Operating Revenue 3.4 0.0 100% Operating Costs and Expenses 2.2 1.8 22% Adjusted EBITDA (1.7) (1.7) 2% Adjusted EBITDA Margin N/A N/A .Expenses incurred by Corporate O
Slide 20: 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 (“US GAAP”) by using the following non-GAAP financial measures, which management believes are useful in properly
Slide 21: Appendix A – Non GAAP Financial Measures
Appendix A – Non GAAP Financial Measures The Company defines Adjusted EBITDA as net earnings (loss) before interest expense (income), net, income taxes (benefit), depreciation, amortization, non-controlling interest (earnings) losses and transactions, pre-opening expenses, acquisition costs, non-cas
Slide 22: Appendix A (continued) Reconciliation of Adjusted EBITDA – Canada
Appendix A (continued) Reconciliation of Adjusted For the three months ended June 30, 2015 in CAD Edmonton Calgary Century Downs Century Bets! Total Canada Net operating revenue $ 7,158 $ 2,404 $ 5,820 $ 985 $ 16,367 Net earnings (loss) attributable to Century Casinos, Inc. shareholders 1,300 317 1,
Slide 23: Appendix A (continued) Reconciliation of Adjusted EBITDA – United States
Appendix A (continued) Reconciliation of Adjusted EBITDA – United States (in thousands) For the three months ended June 30, 2015 in USD Central City Cripple Creek Total United States Net operating revenue $ 4,271 $ 2,939 $ 7,210 Net earnings (loss) attributable to Century Casinos, Inc. shareholders
Slide 24: Appendix A (continued) Reconciliation of Adjusted EBITDA – Poland
Appendix A (continued) Reconciliation of Adjusted For the three months ended June 30, 2015 in PLN Poland Net operating revenue $ 47,569 Net earnings (loss) attributable to Century Casinos, Inc. shareholders 2,136 Interest expense (income), net 160 Income taxes (benefit) 988 Depreciation and amortiza
Slide 25: Appendix A (continued) Reconciliation of Adjusted EBITDA – Corporate and Other
Appendix A (continued) Reconciliation of Adjusted EBITDA – Corporate and Other (in thousands) For the three months ended June 30, 2015 in USD Cruise Ships and Other Corporate Other Total Corporate and Other Net operating revenue $ 1,116 $ 3,365 $ 4,481 Net earnings (loss) attributable to Century Cas