Century Casinos, Inc. · NASDAQ:CNTY
Century Casinos — Q1 2022 Earnings Presentation
42 slides from Century Casinos's earnings presentation, May 6, 2022
Slide 1: Century Casinos Financial Results Q1 2022
CENTURY CASINOS FINANCIAL RESULTS Q1 2022
Slide 2: Forward-Looking Statements, Business Environment & Risk Factors
Forward-Looking Statements, Business Environment& Risk Factors CENTURY CASINOS 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”),
Slide 3: Notes on Presentation
Notes on Presentation CENTURY CASINOS In this presentation the term “USD” refers to US dollars, the term “CAD” refers to Canadian dollars and the term “PLN” refers to Polish zloty. Adjusted EBITDA, Adjusted EBITDA margin and Net Debt are non-GAAP financial measures. See Appendix for the definition a
Slide 4: New Developments
New Developments CENTURY CASINOS COVID-19 UPDATE The COVID-19 pandemic impacted the Company’s results of operations in the first half of 2021 because of closures at the Company’s Canada and Poland properties during this period. The Company’s casinos have varied their operations based on the governme
Slide 5: Century Casinos Financial Results
CENTURY CASINOS FINANCIAL RESULTS
Slide 6: Q1 2022 by Reportable Segment and Operating Segment
Net Operating Revenue Q1 2022 by Reportable Segment and Operating Segment (1) (in USD) CENTURY CASINOS Canada 16% United States 63% Poland 21% Edmonton 11% Calgary 5% Colorado 10% West Virginia 25% Missouri 28% Poland 21% 1. Excludes the Corporate and Other Reportable Segment. 5
Slide 7: Earnings from Operations Q1 2022 by Segment
Earnings from Operations Q1 2022 by Reportable Segment and Operating Segment (1) (in USD) CENTURY CASINOS Canada 3% United States 86% Poland 11% Edmonton 5% Calgary -2% Colorado 15% West Virginia 14% Missouri 57% Poland 11% 1. Excludes the Corporate and Other Reportable Segment. 6
Slide 8: Net Earnings (Loss) Attributable to Shareholders by Segment
Net Earnings (Loss) Attributable to Century Casinos, Inc. Shareholders Q1 2022 by Reportable Segment and Operating Segment (1) (in USD) CENTURY CASINOS Canada -7% United States 96% Poland 11% Edmonton 5% Calgary -12% Colorado 32% West Virginia 6% Missouri 58% Poland 11% 1. Excludes the Corporate and
Slide 9: Adjusted EBITDA Q1 2022 by Segment
Adjusted EBITDA (1) Q1 2022 by Reportable Segment and Operating Segment (2) (in USD) CENTURY CASINOS Canada 15% United States 75% Poland 10% Edmonton 7% Calgary 8% Colorado 12% West Virginia 16% Missouri 47% Poland 10% 1. Adjusted EBITDA is a non-GAAP financial measure. See Appendix for the definiti
Slide 10: Diversified Gaming Company with Focus on Local and Regional Markets
Diversified Gaming Company with Focus on Local and Regional Markets CENTURY CASINOS CENTURY CASINOS Nugget CENTURY CASINOS # of Properties 17 Properties (1) 1 Property 18 Properties # of Slot Machines 6,291 859 7,150 # of Table Games 235 29 264 # of Hotel Rooms 430 1,382 1,812 Q1 2022 Geographic Con
Slide 11: Net Operating Revenue per Quarter
Net Operating Revenue per Quarter In USD (in millions) CENTURY CASINOS 140 120 100 80 60 40 20 0 Q1 40.6 45.6 87.7 72.4 103.1 Q2 39.6 52.4 36.1 92.2 Q3 43.6 52.9 95.7 116.6 Q4 45.1 67.2 84.8 107.3 2018 2019 2020 2021 2022 10
Slide 12: Balance Sheet
Balance Sheet Selected information in USD CENTURY CASINOS In millions (except BVPS) March 31, 2022 December 31, 2021 Change Total Assets 704.4 703.4 – Total Debt, net of Deferred Financing Costs (1) 181.0 181.5 – Book Value per Share (2) 4.85 4.78 1% Net Debt (3) 71.1 81.4 As of April 1, 2022, after
Slide 13: Income Statement
Income Statement Selected information in USD CENTURY CASINOS in millions Q1 2022 Q1 2021 Change Net Operating Revenue 103.1 72.4 42% Earnings from Operations 13.0 8.2 58% Net Earnings (Loss) Attributable to Century Casinos, Inc. Shareholders 0.2 (1.4) 115% Adjusted EBITDA (1) 23.8 14.7 62% Basic and
Slide 14: Debt and Net Debt to Adjusted EBITDA
Debt and Net Debt to Adjusted EBITDA (1) As of April 1, 2022 (2) and for the years ended December 31, 2014-2021 (in USD) CENTURY CASINOS 9.0 8.0 7.0 6.0 5.0 4.0 3.0 2.0 1.0 0.0 -1.0 -2.0 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 6.8x 5.1x 2020 7.9x 5.6x 2021 2.
Slide 15: United States Highlights
United States Highlights Selected information in USD CENTURY CASINOS in millions Q1 2022 Q1 2021 Change Net Operating Revenue 65.2 64.4 1% Operating Costs and Expenses 49.7 46.8 6% Earnings from Operations 15.5 17.5 (11%) Net Earnings Attributable to Century Casinos, Inc. Shareholders 8.5 10.6 (20%)
Slide 16: Colorado Highlights
Colorado Highlights Selected information in USD, in millions CENTURY CASINOS Key Stats (1) Central City Casino Sq. Footage 22,640 Slot Machines 441 Tables 8 Hotel Rooms 26 Cripple Creek Casino Sq. Footage 19,610 Slot Machines 385 Tables 6 Hotel Rooms 21 Net Operating Revenue 14.0 12.0 10.0 8.0 6.0 4
Slide 17: Missouri Highlights
Missouri Highlights Selected information in USD, in millions CENTURY CASINOS Key Stats (1) Cape Girardeau Casino Sq. Footage 41,530 Slot Machines 848 Tables 23 Hotel Rooms N/A Caruthersville Casino Sq. Footage 21,000 Slot Machines 526 Tables 9 Hotel Rooms N/A Net Operating Revenue 40.0 35.0 30.0 25.
Slide 18: West Virginia Highlights
West Virginia Highlights Selected information in USD, in millions CENTURY CASINOS Key Stats (1) Mountaineer Casino Sq. Footage 72,380 Slot Machines 1,104 Tables 35 Hotel Rooms 357 Net Operating Revenue 35.0 30.0 25.0 20.0 15.0 10.0 5.0 0.0 Q1 25.1 23.9 26.3 Q2 12.2 30.6 Q3 28.4 31.7 Q4 24.5 28.7 202
Slide 19: Canada Highlights
Canada Highlights Selected information in CAD CENTURY CASINOS in millions Q1 2022 Q1 2021 Change Net Operating Revenue 20.3 2.5 698% Operating Costs and Expenses 19.5 7.4 165% Earnings (Loss) from Operations 0.8 (4.8) 116% Net Earnings (Loss) Attributable to Century Casinos, Inc. Shareholders 0.2 (3
Slide 20: Edmonton Highlights
Edmonton Highlights Selected information in CAD, in millions CENTURY CASINOS Key Stats (1) Edmonton Casino Sq. Footage 32,960 Slot / VLT Machines (2) 840 Tables 23 Hotel Rooms 26 St. Albert Casino Sq. Footage 12,970 Slot / VLT Machines 428 Tables 10 Century Mile Casino Sq. Footage 19,480 Slot / VLT
Slide 21: Calgary Highlights
Calgary Highlights (1) Selected information in CAD, in millions CENTURY CASINOS Key Stats (2) Century Downs Casino Sq. Footage 25,500 Slot / VLT Machines 673 Net Operating Revenue 10.0 9.0 8.0 7.0 6.0 5.0 4.0 3.0 2.0 1.0 0.0 Q1 8.5 1.2 6.7 Q2 2.6 3.1 Q3 8.6 9.1 Q4 6.4 7.1 2020 2021 2022 Adjusted EBI
Slide 22: Poland Highlights
Poland Highlights Selected information in PLN CENTURY CASINOS in millions Q1 2022 Q1 2021 Change Net Operating Revenue 90.2 22.4 303% Operating Costs and Expenses 81.9 35.0 134% Earnings (Loss) from Operations 8.3 (12.6) 165% Net Earnings (Loss) Attributable to Century Casinos, Inc. Shareholders 4.2
Slide 23: Poland Highlights
Poland Highlights Selected information in PLN, in millions CENTURY CASINOS Key Stats (1) Casinos Poland Casino Sq. Footage 85,560 Slot Machines 526 Tables 121 # of Casinos 8 Net Operating Revenue 100.0 90.0 80.0 70.0 60.0 50.0 40.0 30.0 20.0 10.0 0.0 Q1 66.6 22.4 90.2 Q2 29.6 32.5 Q3 62.1 81.9 Q4 51
Slide 24: Corporate and Other Highlights
Corporate and Other Highlights Selected information in USD CENTURY CASINOS in millions Q1 2022 Q1 2021 Change Net Operating Revenue 0.0 0.1 (74%) Operating Costs and Expenses 5.1 2.2 128% Loss from Operations (5.0) (2.1) (140%) Net Loss Attributable to Century Casinos, Inc. Shareholders (8.5) (6.7)
Slide 25: Century Casinos Projects
CENTURY CASINOS PROJECTS
Slide 26: Nugget Casino Resort Property Overview
Nugget Casino Resort Property Overview CENTURY CASINOS Key Highlights • The newly remodeled Nugget Casino is conveniently located on route I-80 with easy access from the airport. • The full-service resort boasts a large gaming floor, two hotel towers, a convention space, outdoor amphitheater, and a
Slide 27: Strategic Rationale and Investment Highlights
Strategic Rationale and Investment Highlights The Nugget Reno Offers Immediate Synergies to a Growing Century Platform CENTURY CASINOS Expand Century’s US Footprint and Enter Fast Growing Reno Market • Offers Century an entry into the state of Nevada and a high profile, top 15 US gaming market (1) t
Slide 28: Century is Well-Positioned for the Next Stage of Growth
Century is Well-Positioned for the Next Stage of Growth CENTURY CASINOS 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 experi
Slide 29: Century is Well-Positioned for the Next Stage of Growth: Missouri Projects
Century is Well-Positioned for the Next Stage of Growth Missouri Projects CENTURY CASINOS Caruthersville • Century recently purchased the neighboring two-story hotel. - The new Century hotel will be the only hotel in downtown Caruthersville. • The project is scheduled to open in mid-2022 and is expe
Slide 30: Appendix
CENTURY CASINOS APPENDIX
Slide 31: Abbreviations of Subsidiaries and Certain Reporting Units
Appendix Abbreviations of Century Casinos, Inc. Subsidiaries and Certain Reporting Units CENTURY CASINOS 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
Slide 32: Non-GAAP Financial Measures
Appendix Non-GAAP Financial Measures CENTURY CASINOS 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 u
Slide 33: Non-GAAP Financial Measures: Adjusted EBITDA Definition
Appendix Non-GAAP Financial Measures CENTURY CASINOS 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 (los
Slide 34: Non-GAAP Financial Measures: Net Debt Definition
Appendix Non-GAAP Financial Measures CENTURY CASINOS The Company defines Net Debt as total long-term debt (including current portion) plus deferred financing costs minus cash and cash equivalents. Net Debt is not considered a liquidity measure recognized under GAAP. Management believes that Net Debt
Slide 35: Reconciliation of Adjusted EBITDA
Appendix Non-GAAP Financial Measures – Reconciliation of Adjusted EBITDA CENTURY CASINOS Century Casinos, Inc. For the three months ended March 31, in USD, in thousands 2022 2021 Net Operating Revenue $103,103 $72,415 Net earnings (loss) attributable to Century Casinos, Inc. shareholders 218 (1,419)
Slide 36: Reconciliation of Adjusted EBITDA: United States
Appendix Non-GAAP Financial Measures – Reconciliation of Adjusted EBITDA CENTURY CASINOS United States For the three months ended March 31, 2022 in USD, in thousands Colorado West Virginia Missouri Total United States Net Operating Revenue $10,328 $26,262 $28,658 $65,248 Net income attributable to C
Slide 37: Reconciliation of Adjusted EBITDA: Canada
Appendix Non-GAAP Financial Measures – Reconciliation of Adjusted EBITDA CENTURY CASINOS Canada For the three months ended March 31, 2022 in CAD, in thousands Edmonton Calgary Total Canada Net Operating Revenue $13,600 $6,670 $20,270 Net income (loss) attributable to Century Casinos, Inc. shareholde
Slide 38: Reconciliation of Adjusted EBITDA: Poland
Appendix Non-GAAP Financial Measures – Reconciliation of Adjusted EBITDA CENTURY CASINOS Poland For the three months ended March 31, in PLN, in thousands 2022 2021 Net Operating Revenue PLN 90,166 PLN 22,354 Net income (loss) attributable to Century Casinos, Inc. shareholders 4,233 (6,872) Interest
Slide 39: Reconciliation of Adjusted EBITDA: Corporate and Other
Appendix Non-GAAP Financial Measures – Reconciliation of Adjusted EBITDA Reconciliation of Adjusted EBITDA CENTURY CASINOS Corporate and Other For the three months ended March 31, in USD, in thousands 2022 2021 Net Operating Revenue $32 $123 Net loss attributable to Century Casinos, Inc. shareholder
Slide 40: Reconciliation of Adjusted EBITDA: Nugget Casino Resort
Appendix Non-GAAP Financial Measures – Reconciliation of Adjusted EBITDA CENTURY CASINOS Nugget Casino Resort For the three months ended March 31, in USD, in thousands 2022 Net Operating Revenue $20,639 Net income 688 Interest expense (income), net 190 Depreciation and amortization 3,530 Management
Slide 41: 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) CENTURY CASINOS in USD Q2 2021 Q3 2021 Q4 2021 Q1 2022 Trailing 12-Month March 31, 2022 Trailing 12-Month December 31, 2021 Net earnings
Slide 42: Reconciliation of Net Debt
Appendix Non-GAAP Financial Measures – Reconciliation of Net Debt CENTURY CASINOS Amounts in thousands March 31, 2022 Effects of Goldman Credit Agreement and PropCo Acquisition April 1 2022 (1) December 31, 2021 Total long-term debt, including current portion $180,995 $191,129 $372,124 $181,484 Defe