Century Casinos, Inc. · NASDAQ:CNTY
Century Casinos — Q1 2023 Earnings Presentation
52 slides from Century Casinos's earnings presentation, May 9, 2023
Slide 1: Investor Presentation: Results through Q1 2023
INVESTOR PRESENTATION Peter Hoetzinger, Co CEO & President Results through Q1 2023
Slide 2: Forward-Looking Statements, Business Environment, Risk Factors & Notes on Presentation
Forward-Looking Statements, Business Environment, Risk Factors & Notes on Presentation 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
Slide 3: Key Investment Highlights
Key Investment Highlights Founded in 1992, Century Casinos is a multi-channel gaming company with focus on drive-to U.S. markets Casinos located in attractive markets with limited new competition risk Regional and local customer base. Majority of revenue comes from guests who live within a one
Slide 4: Multi-Channel North American Gaming Company
Multi-Channel North American Gaming Company1 Land-based Casinos (USA and Canada) The online world and the land-based casino world co-exist successfully. Pending regulatory approval Western Maryland Racing and On/Off-Track Betting Give online customers a better experience and social excitement when t
Slide 5: Century's Property Footprint
Century’s Property Footprint1 Diversified Local Gaming Footprint in Drive-to Markets Century Downs Century Casino Century Casino Century Mile Racetrack and Casino St. Albert & Hotel Edmonton Racetrack and Casino Casinos Poland Locations: - Warsaw at Marriott Hotel - Warsaw at Hilton Hotel - Wawa at
Slide 6: Diverse Regional Exposure in Stable, Mature Gaming Markets in the U.S.
Diverse Regional Exposure in Stable, Mature Gaming Markets in the U.S. Exposure to attractive regional markets proven to be Colorado GGR resilient throughout the pandemic. – 2021 and 2022 GGR1 levels materially up versus $811 $828 $842 $834 $560 $976 $1,060 2019 across almost all markets served in
Slide 7: Stable Historical Performance of Regional GGR in the U.S.
Stable Historical Performance of Regional GGR in the U.S. US regional GGR has maintained stable growth since 2001 and is resilient to macroeconomic changes including oil prices and CPI U.S. Regional GGR ($bn) WTI Crude Oil Price (US$ / Barrel) CPI Index YoY % Change Sources: UNLV Gaming Research and
Slide 8: Pro Forma Century Casinos, Inc. Portfolio
Pro Forma Century Casinos, Inc. Portfolio One Acquisition Pending Acquired Pending acquisition in Pro Forma April 3, 2023 Maryland # of Properties 17 Properties 1 Property 1 Property 19 Properties # of Slot Machines 6,043 892 630 7,565 # of Table Games 223 29 16 268 # of Hotel Rooms 466 1,382 198 2,
Slide 9: Broad Geographic and Asset Diversification
Broad Geographic and Asset Diversification No Single Property Accounts for More than 25% of Adjusted EBITDA Acquisition of the Nugget and Rocky Gap is expected to significantly increase Century’s scale Pro Forma 41% increase in revenue Pro Forma 50% increase in Adj. EBITDA Further diversifie
Slide 10: Summary of Pro Forma Historical Financial Performance
Summary of Pro Forma Historical Financial Performance (in Millions) Key Highlights Revenue Stable revenue growth across Century, the Nugget $567 $608 and Rocky Gap with strong recovery post-COVID $78 $78 $99 Consistent Adjusted EBITDA growth combined with $377 $413 $52 $100 $321 margin expansion
Slide 11: Proven Track Record of Consistent Adjusted EBITDA Stability
Century Has a Proven Track Record of Consistent Adjusted EBITDA Stability and is Poised for Future Growth Decade plus of steady Adjusted EBITDA growth with attractive opportunities to accelerate growth with new acquisitions Pro 2012 - 2017 2018 - Present Forma Increased Canadian footprint through
Slide 12: Income Statement
Income Statement Selected information in USD, in millions except for per share Q1 2023 Q1 2022 Change Net Operating Revenue 108.5 103.1 +5% Earnings from Operations 18.4 13.0 +41% Net (Loss) Earnings Attributable to Century Casinos, Inc. Shareholders -1.2 0.2 -670% Adjusted EBITDA1 26.1 23.8 +9% Bas
Slide 13: Balance Sheet and Leverage
Balance Sheet and Leverage As of March 31, 2023 4.9x 3.5x 4.8x Total Principal Debt to Adjusted Net Debt to Adjusted EBITDA less Lease Adjusted Net Leverage EBITDA less Lease Payments1 Lease Payments2 (8.0x)3 3.5x 3.1x 4.7x Pro Forma4 Total Principal Debt to Pro Forma4 Net Debt to Pro Forma4 Lease A
Slide 14: 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 15: CNTY Consolidated Results
CNTY Consolidated Results 2019 – 2023 Quarterly Results (in USD, in millions) Net Operating Revenue 140 111.1 116.6112.6 120 103.1108.5 107.3103.8 92.2 95.7 100 87.7 84.8 80 72.4 67.2 60 52.4 52.9 45.6 36.1 40 20 0 Q1 Q2 Q3 Q4 2019 2020 2021 2022 2023 Adjusted EBITDA (1) 35.0 33.1 29.8 30.0 28.1 26.
Slide 16: Net Operating Revenue by Segment
Net Operating Revenue Q1 2023 by Reportable Segment and Operating Segment (1) (in USD) Canada 15% Calgary Colorado 4% 10% Edmonton 11% West Virginia 25% Poland Poland 24% 24% United States 61% Missouri 26% 1. Excludes the Corporate and Other Reportable Segment. 15
Slide 17: Adjusted EBITDA by Segment
Adjusted EBITDA (1) Q1 2023 by Reportable Segment and Operating Segment (2) (in USD) Canada 16% Calgary Colorado Poland 6% 11% 12% Edmonton 10% West Virginia 14% Poland 12% United States 72% Missouri 47% 1. Adjusted EBITDA is a non-GAAP financial measure. See Appendix for the definition and reconcil
Slide 18: U.S. Operations Overview
• Colorado • Missouri U.S. OPERATIONS OVERVIEW • West Virginia
Slide 19: Colorado Region Market Overview and Asset Summary
Colorado Region Market Overview and Asset Summary Central City and Cripple Creek Asset Property Highlights Key Stats1 Central City is located just 45 minutes west of Denver, Casino Sq. Footage 22,640 Colorado Slot Machines 409 Easily accessible from highway I-70 Tables 8 Online sports betting
Slide 20: Colorado Region Results
Colorado Region Results Central City and Cripple Creek Net Operating Revenue Adjusted EBITDA 1 16.0 6.0 5.3 14.0 13.5 5.0 5.0 4.8 12.5 12.1 12.0 11.6 4.4 11.3 11.2 10.6 3.9 10.3 4.0 10.0 9.4 3.6 3.3 3.2 3.1 8.0 3.0 6.0 2.0 4.0 1.0 2.0 0.0 0.0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2021 2022 2023 2021 2022 2023 1.
Slide 21: Missouri Region Market Overview and Asset Summary
Missouri Region Market Overview and Asset Summary Cape Girardeau and Caruthersville Asset Property Highlights Key Stats1 Casino is situated in downtown Cape Girardeau Casino Sq. Footage 41,530 The property opened in October 2012 with the 13th and final gaming license in Missouri Slot Machines 83
Slide 22: Missouri Region Results
Missouri Region Results Cape Girardeau and Caruthersville Net Operating Revenue Adjusted EBITDA 1 40.0 20.0 18.0 17.2 35.0 34.1 31.0 16.0 15.4 29.7 30.0 28.7 29.1 29.0 28.3 26.8 14.0 13.4 12.8 12.7 13.0 12.8 24.6 25.0 12.0 10.6 20.0 10.0 9.2 8.0 15.0 6.0 10.0 4.0 5.0 2.0 0.0 0.0 Q1 Q2 Q3 Q4 Q1 Q2 Q3
Slide 23: West Virginia Region Market Overview and Asset Summary
West Virginia Region Market Overview and Asset Summary Mountaineer Casino, Racetrack & Resort Asset Property Highlights Key Stats1 Mountaineer Casino is the area’s only full-service resort Casino Sq. Footage 72,380 and casino featuring world-class thoroughbred racing, an 18-hole golf course and 5,
Slide 24: West Virginia Region Results
West Virginia Region Results Mountaineer Casino, Racetrack & Resort Net Operating Revenue Adjusted EBITDA 1 35.0 7.0 31.7 30.6 6.2 30.4 29.7 5.9 30.0 28.7 6.0 26.3 26.7 26.5 5.3 4.9 25.0 23.9 5.0 4.5 4.3 3.9 20.0 4.0 3.6 3.5 15.0 3.0 10.0 2.0 5.0 1.0 0.0 0.0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2021 2022 2023 20
Slide 25: Acquired April 3, 2023: Reno-Sparks, Nevada
ACQUIRED APRIL 3, 2023 RENO-SPARKS, NEVADA
Slide 26: Transaction Overview: Nugget
Transaction Overview In February 2022, Century announced a definitive agreement with Marnell Gaming, LLC to acquire 100% of Nugget Sparks, LLC (“Nugget”) and 50% of Smooth Bourbon, LLC (“Smooth Bourbon”) for a total of $195mm On April 1, 2022, Century closed on the 50% interest in Smooth Bourbon
Slide 27: Nugget Casino Resort Property Overview
Nugget Casino Resort Property Overview Key Highlights Property Stats The newly remodeled Nugget Casino is conveniently Owned Land Acreage Casino Sq. Ft. located on route I-80 with easy access from the airport The full-service resort boasts a large gaming floor, 29 71,200 two hotel towers, a conv
Slide 28: Continued Growth of Reno-Sparks Economy
Continued Growth of Reno-Sparks Economy Reno-Sparks Area Highlights Reno-Sparks Unemployment Rate Reno, known as the “Biggest Little City in the World” is 25.0 % famous for its casinos, but is also known as a destination for outdoor recreation with proximity to 20.0 % Lake Tahoe and several ski re
Slide 29: Pending Acquisition: Flintstone, Maryland
PENDING ACQUISITION FLINTSTONE, MARYLAND
Slide 30: Transaction Overview: Rocky Gap
Transaction Overview In August 2022, Century announced a definitive agreement to acquire the operations of Rocky Gap Casino Resort for $56.1mm – Represents a purchase price multiple of 4.9 x 2021 Adj. EBITDA (pro forma after lease payments to VICI) and is expected to close in Q2 2023 pending recei
Slide 31: Rocky Gap Casino Resort
Rocky Gap Casino Resort Only casino resort in western Maryland, with 10 million + adults within a 100-mile radius 198 hotel rooms 630 slot machines 16 table games $10mm of property upgrades since 2018 remodeled rooms and suites new sports lounge renovation and upgrade of food and bev
Slide 32: Rocky Gap, MD Competitive Landscape
Rocky Gap, MD Competitive Landscape Property attracts local and destination drive-in customers from Maryland and surrounding states. 31
Slide 33: Additional Growth Drivers
• Cape Girardeau Hotel • Caruthersville Land-based ADDITIONAL GROWTH DRIVERS
Slide 34: Missouri Projects: Cape Girardeau Hotel
Century is Well-Positioned for the Next Stage of Growth Missouri Projects – Cape Girardeau Hotel Century has commenced construction of a 69- room hotel at Cape Girardeau connected to the existing casino Project will transform the facility to a full resort destination with gaming, various bars and
Slide 35: Missouri Projects: Caruthersville Temporary Casino & Hotel
Century is Well-Positioned for the Next Stage of Growth Missouri Projects – Caruthersville Temporary Land-Based Casino & Hotel Originally, the casino operated on a riverboat and barge. Closed all games on the riverboat in October 2022 as it was no longer accessible due to record low water levels (
Slide 36: Missouri Projects: Caruthersville Permanent Casino & Hotel
Century is Well-Positioned for the Next Stage of Growth Missouri Projects – Caruthersville Permanent Land-Based Casino & Hotel Groundbreaking on December 2, 2022. Expected opening in late 2024. 600 slot machines (with the possibility of an expansion for an additional 140), table games, a restaur
Slide 37: Thank You!
THANK YOU !
Slide 38: Appendix
APPENDIX
Slide 39: Earnings from Operations by Segment
Appendix Earnings from Operations – Q1 2023 by Reportable Segment and Operating Segment1 (in USD) Canada 19% Calgary Colorado 10% 13% Edmonton Poland 9% 13% West Virginia 10% Poland 13% United States 68% Missouri 45% 1. Excludes the Corporate and Other Reportable Segment. 38
Slide 40: Net Earnings by Segment
Appendix Net Earnings Attributable to Century Casinos, Inc. Shareholders - Q1 2023 by Reportable Segment and Operating Segment1 (in USD) Canada 21% Calgary 4% Colorado Edmonton 23% 17% Poland West 18% Virginia 0% Poland United States 18% 61% Missouri 38% 1. Excludes the Corporate and Other Reportabl
Slide 41: Abbreviations of 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 42: Terms and Definitions
Appendix Terms and Definitions 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 “Non-GAAP Financial Measur
Slide 43: 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 44: Non-GAAP Financial Measures: Adjusted EBITDA Definition
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 45: Non-GAAP Financial Measures: Net Debt Definition
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 46: Reconciliation of Adjusted EBITDA
Appendix Non-GAAP Financial Measures – Reconciliation of Adjusted EBITDA Century Casinos, Inc. For the three months ended March 31, in USD, in thousands 2023 2022 Net Operating Revenue $ 108,508 $ 103,103 Net (loss) earnings attributable to Century Casinos, Inc. shareholders (1,243) 218 Interest exp
Slide 47: Reconciliation of Adjusted EBITDA by U.S. Region
Appendix Non-GAAP Financial Measures – Reconciliation of Adjusted EBITDA For the three months ended March 31, 2023 Total United in USD, in thousands Colorado West Virginia Missouri States Net income attributable to Century Casinos, Inc. shareholders 2,015 6 3,354 5,375 Interest expense (income), net
Slide 48: Reconciliation of Adjusted EBITDA: Nugget and Rocky Gap
Appendix Non-GAAP Financial Measures – Reconciliation of Adjusted EBITDA 1 Nugget Casino Resort For the year ended December 31, in USD, in thousands 2022 Net Operating Revenue $ 99,089 Net income 1,984 Interest expense 223 Depreciation and amortization 12,025 Management fees 1,000 Rent expense 11,32
Slide 49: Reconciliation of Quarterly Adjusted EBITDA
Appendix Non-GAAP Financial Measures – Reconciliation of Quarterly Adjusted EBITDA 2019 2020 2021 2022 2023 in USD, in millions Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Net earnings (loss) attributable to Century Casinos, Inc. shareholders $ 1.1 $ (0.6) $ 0.5 $ (20.1) $ (45.9) $ (12.6) $ 3
Slide 50: Reconciliation of Adjusted EBITDA less Lease Payments
Appendix Non-GAAP Financial Measures – Reconciliation of Adjusted EBITDA and Adjusted EBITDA less Lease Payments (in thousands) Trailing-Twelve Year Ended Months Ended December 31, in USD, in thousands Q2 2022 Q3 2022 Q4 2022 Q1 2023 March 31, 2023 2022 Net earnings (loss) attributable to Century Ca
Slide 51: Calculation of Lease Adjusted Net Leverage
Appendix Non-GAAP Financial Measures – Calculation of Lease Adjusted Net Leverage and Lease Adjusted Leverage Trailing-Twelve Trailing-Twelve Months ended Nugget Rocky Gap Months ended (1) March 31, 2023 Acquisition Acquisition March 31, 2023 in dollars, in millions Current PENDING (2) PRO FORMA Cas
Slide 52: Reconciliation of Net Debt
Appendix Non-GAAP Financial Measures – Reconciliation of Net Debt Amounts in thousands March 31, 2023 December 31, 2022 Total long-term debt, including current portion $ 349,005 $ 349,580 Deferred financing costs 16,170 16,844 Total principal $ 365,175 $ 366,424 Less: Cash and cash equivalents $ 102