Century Casinos, Inc. · NASDAQ:CNTY
Century Casinos — FY2019 Earnings Presentation
33 slides from Century Casinos's earnings presentation, Mar 13, 2020
Slide 1: Century Casinos Financial Results 2019
CENTURY CASINOS Financial Results 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 Priv
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: Highlights
2019 Highlights On December 6, 2019, the Company completed its acquisition (the “Acquisition”) of the operations of Isle Casino Cape Girardeau, located in Cape Girardeau, Missouri, Lady Luck Caruthersville, located in Caruthersville, Missouri, and Mountaineer Casino, Racetrack and Resort located in
Slide 5: Net Operating Revenue by Reportable Segment and Operating Segment
2019 Net Operating Revenue by Reportable Segment and Operating Segment (in USD) Excluding Corporate Other Reporting Unit CCB, Ships & Other 3% Canada 37% United States 23% Poland 37% CCB, Ships & Other 3% Edmonton 22% Calgary 15% Colorado 16% West Virginia 4% Missouri 3% Poland 37% Century Casinos 5
Slide 6: Earnings (Loss) from Operations by Reportable Segment and Operating Segment
2019 Earnings (Loss) from Operations by Reportable Segment and Operating Segment (in USD) Excluding Corporate Other Reporting Unit CCB, Ships & Other -172% Canada 139% United States 82% Poland 51% CCB, Ships & Other -172% Edmonton 65% Calgary 74% Colorado 51% West Virginia 10% Missouri 21% Poland 51
Slide 7: Net Earnings (Loss) Attributable Shareholders by Segment
2019 Net Earnings (Loss) Attributable to Century Casinos, Inc. Shareholders by Reportable Segment and Operating Segment (in USD) Excluding Corporate Other Reporting Unit CCB, Ships & Other -435% Poland 73% United States 122% Canada 140% CCB, Ships & Other -435% Edmonton 60% Calgary 80% Colorado 91%
Slide 8: Adjusted EBITDA by Reportable Segment and Operating Segment
2019 Adjusted EBITDA* by Reportable Segment and Operating Segment (in USD) Excluding Corporate Other Reporting Unit CCB, Ships & Other -6% Canada 52% United States 30% Poland 24% CCB, Ships & Other -6% Edmonton 26% Calgary 26% Colorado 20% West Virginia 3% Missouri 7% Poland 24% *Adjusted EBITDA is
Slide 9: Net Operating Revenue per Quarter
Net Operating Revenue per Quarter (in USD) 0 10 20 30 40 50 60 70 80 Q1 30.4 33.2 36.4 40.6 45.6 Q2 37.9 35.2 37.3 39.6 52.4 Q3 33.5 34.5 41.0 43.6 52.9 Q4 31.9 36.3 39.3 45.1 67.2 2015 2016 2017 2018 2019 Century Casinos 9
Slide 10: Balance Sheet (Selected Information in USD)
Balance Sheet (Selected Information in USD) In million ( except BVPS ) Total Assets Total Debt Book Value per Share* Net Debt** December 31.2018 726.9 179.0 5.54 134.2 2 78.8 59.5 6.00 14.4 Change 16 1 % 201% (8%) *Book Value per Share is defined as total Century Casinos, Inc. shareholders’ equity d
Slide 11: Income Statement (Selected Information in USD)
Income Statement (Selected Information in USD) In mlllons (except EPS) Net Operating Revenue (Loss) Earnings from Operations Net (Loss) Earnings Attributable to Century Casinos, Inc. Shareholders Adjusted EBITDA* Basic (Loss) Earnings per Share Diluted (Loss) Earnings per Share 2019 2018 Change 218.
Slide 12: Constant Currency Results (in USD)
Constant Currency Results (in USD) in millions Net Operating Revenue as reported (GAAP) Foreign currency impact vs. 2018 Net Operating Revenue constant currency (non-GAAP)* (Loss) Earnings from Operations as reported (GAAP) Foreign currency impact vs. 2018 (Loss) Earnings from Operations constant cu
Slide 13: Debt and Net Debt to Adjusted EBITDA
Debt and Net Debt to Adjusted EBITDA* (in USD) For the years ended December 31, 2011-2019 7x 6x 5x 4x 3x 2x 1x 0x -1x -2x -3x 2011 0.8x -1.5x 2012 0.3x -2.0x 2013 2.7x 0.5x 2014 3.0x 1.1x 2015 1.6x 0.3x 2016 2.2x 0.7x 2017 2.2x -0.7x 2018 2.5x 0.6x 2019 5.9x 4.4x Debt to Adjusted EBITDA Net Debt to
Slide 14: Highlights – Canada
2019 Highlights – CANADA (Selected Information in CAD) In millions Net Operating Revenue Operating Costs and Expenses Earnings from Operations Net Earnings Attributable to Century Casinos, Inc. Shareholders Adjusted EBITDA* Adjusted EBITDA Margin* 2019 2018 Change 107.0 79.6 35% 85.6 60.6 41% 21.4 1
Slide 15: Highlights – Canada: Edmonton
2019 Highlights – CANADA (Selected Information in CAD) EDMONTON In mil lions 2019 2018 Change Net Operating Revenue 64.8 39.3 65% Operating Costs and Expenses 54.7 29.8 84% Earnings from Operations Net Earnings Attributable to Century Casinos, Inc. 10.0 9.4 6% Shareholders 6.6 3.4 93% Adjusted EBITD
Slide 16: Highlights – Canada: Calgary
2019 Highlights – CANADA (Selected Information in CAD) CALGARY In m illions 2019 2018 Change Net Operating Revenue 42.2 40.3 5% Operating Costs and Expenses 30.9 30.8 — Earnings from Operations Net Earnings Attributable to Century Casinos, Inc. 11.4 9.5 19% Shareholders 5.0 4.1 22% Adjusted EBITDA*
Slide 17: Highlights – United States
2019 Highlights – UNITED STATES (Selected Information in USD) In mlllons Net Operating Revenue Operating Costs and Expenses Earnings from Operations Net Earnings Attributable to Century Casinos, Inc. Shareholders Adjusted EBITDA* Adjusted EBITDA Margin* 2019 2018 Change 50.0 33.5 49% 40.5 27.6 47% 9
Slide 18: Highlights – United States: Colorado
2019 Highlights – UNITED STATES (Selected Information in USD) COLORADO In mIlions 2019 2018 Change Net Operating Revenue 33.9 33.5 1% Operating Costs and Expenses 28.1 27.6 2% Earnings from Operations Net Earnings Attributable to Century Casinos, Inc. 5.9 5.9 — Shareholders 4.4 4.4 — Adjusted EBITDA
Slide 19: Highlights – United States: West Virginia
2019 Highlights – UNITED STATES (Selected Information in USD) WEST VIRGINIA ln milfons 2019 Net Operating Revenue 8.7 Operating Costs and Expenses 7.5 Earnings from Operations 1.2 Net Earnings Attributable to Century Casinos, Inc. Shareholders 0.4 Adjusted EBITDA*' 1.3 Adjusted EBITDA Margin* 15% A
Slide 20: Highlights – United States: Missouri
2019 Highlights – UNITED STATES (Selected Information in USD) MISSOURI ln milfons 2019 Net Operating Revenue 7.4 Operating Costs and Expenses 4.9 Earnings from Operations 2.5 Net Earnings Attributable to Century Casinos, Inc. Shareholders 1.0 Adjusted EBITDA*' 2.6 Adjusted EBITDA Margin* 35% As of
Slide 21: Highlights – Poland
2019 Highlights – POLAND (Selected Information in PLN) In mlllons Net Operating Revenue Operating Costs and Expenses Earnings from Operations Net Earnings (Loss) Attributable to Century Casinos, Inc. Shareholders Adjusted EBITDA* Adjusted EBITDA Margin* 2019 2018 Change 314.3 246.7 27% 289.3 246.2 1
Slide 22: Highlights – Corporate and Other
2019 Highlights – CORPORATE AND OTHER (Selected Information in USD) In mlllons Net Operating Revenue Operating Costs and Expenses Loss from Operations Net Loss Attributable to Century Casinos, Inc. Shareholders Adjusted EBITDA* Adjusted EBITDA Margin* 2019 2018 Change 5.7 5.9 (3%) 42.4 17.1 148% (36
Slide 23: Highlights – Additional Projects Under Development
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, Bermud
Slide 24: Appendix A – Abbreviations of Subsidiaries and Operating Segments
Appendix A – ABBREVIATIONS OF CENTURY CASINOS, INC. SUBSIDIARIES AND CERTAIN OPERATING SEGMENTS Reportable Segment Operating Segment Reporting Unit Abbreviation United States Colorado Century Casino & Hotel – Central City CTL Century Casino & Hotel – Cripple Creek CRC West Virginia Mountaineer Casin
Slide 25: 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 26: Appendix A – Non-GAAP Financial Measures: Adjusted EBITDA
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 27: Appendix A – Non-GAAP Financial Measures: Constant Currency
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 28: Reconciliation – United States
Appendix A – NON-GAAP FINANCIAL MEASURES Reconciliation of Adjusted EBITDA (in thousands) – UNITED STATES For the year ended December 31, 2019 in USD Colorado West Virginia Missouri Total United States Net Operating Revenue $ 33,940 $ 8,688 $ 7,370 $ 49,998 Net earnings attributable to Century Casin
Slide 29: Reconciliation – Canada
Appendix A – NON-GAAP FINANCIAL MEASURES Reconciliation of Adjusted EBITDA (in thousands) – CANADA For the year ended December 31, 2019 in CAD Edmonton Calgary Total Canada Net Operating Revenue $ 64,776 $ 42,232 $ 107,008 Net earnings attributable to Century Casinos, Inc. shareholders 6,607 5,011 1
Slide 30: Reconciliation – Canada continued
Appendix A – NON-GAAP FINANCIAL MEASURES Reconciliation of Adjusted EBITDA (in thousands) – CANADA continued in CAD Net Operating Revenue Net earnings attributable to Century Casinos, Inc. shareholders Interest expense (income), net Income taxes Depreciation and amortization Non-controlling interest
Slide 31: Reconciliation – Poland
Appendix A – NON-GAAP FINANCIAL MEASURES Reconciliation of Adjusted EBITDA (in thousands) – POLAND in PLN Net Operating Revenue Net earnings (loss) attributable to Century Casinos, Inc shareholders Interest expense (income), net Income taxes Depreciation and amortization Non-controlling interests Ga
Slide 32: Reconciliation – Corporate and Other
Appendix A – NON-GAAP FINANCIAL MEASURES Reconciliation of Adjusted EBITDA (in thousands) – CORPORATE AND OTHER in USD Net Operating Revenue Net loss attributable to Century Casinos, Inc. shareholders Interest expense (income), net Income tax benefit Depreciation and amortization Non-controlling int
Slide 33: Reconciliation of Net Debt
Appendix A – NON-GAAP FINANCIAL MEASURES Reconciliation of Net Debt (in thousands) Amounts in thousands Total long-term debt, including current portion Deferred financing costs Total principal Less: Cash and cash equivalents Net Debt December 31, 2019 $ 178.963 9,998 $ 188.961 $ 54.754 $ 134,207 Dec