Century Casinos, Inc. · NASDAQ:CNTY
Century Casinos — Q1 2024 Earnings Presentation
39 slides from Century Casinos's earnings presentation, May 9, 2024
Slide 1: Results through Q1 2024 Investor Presentation
Results through Q1 2024 INVESTOR PRESENTATION Peter Hoetzinger, Co CEO & President
Slide 2: Forward-Looking Statements
FORWARD - LOOKING STATEMENTS 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 Private Securities Litigation Reform Act o
Slide 3: Key Investment Highlights
KEY INVESTMENT HIGHLIGHTS • Well Established Multi-Channel Gaming Company: 7,406 slot/electronic Growth Drivers gaming machines, 231 gaming tables and 2,115 hotel rooms across 19 • Improvements at Nugget Casino Resort in Reno-Sparks, NV properties1 in USA, Canada and Europe. • Century Casino Caruthe
Slide 4: Multi-Channel Gaming Company
MULTI-CHANNEL GAMING COMPANY Regional Casinos Racing and On/Off-Track Betting Sportsbook (Retail & Online) and iGaming The online world and the land-based casino Horse races at our racetracks provide a real Sports betting and iGaming are integral parts world co-exist successfully. experience. Pari-m
Slide 5: North American Property Footprint
NORTH AMERICAN PROPERTY FOOTPRINT 11 Properties In the USA (Nevada, Colorado, Missouri, West Virginia and Maryland) and Canada (Alberta) 2,115 Hotel Rooms Across eight casino hotel/resort properties. Additional 38 rooms to be added by the end of 2024. 6,991 Slot Machines & 143 Table Games Offering p
Slide 6: Regional Markets Overview
REGIONAL MARKETS OVERVIEW Diverse regional exposure in stable, mature gaming markets in the U.S. • Regional markets resilient during the pandemic Gross Gaming Revenue (GGR)1 • 2021 through 2023 Gross Gaming Revenue levels materially up versus 2019 1.088 1.060 across all markets served in the U.S. Co
Slide 7: Stable Performance
STABLE PERFORMANCE US regional GGR has maintained stable growth since 2001 and has been resilient to macroeconomic changes including oil prices and CPI U.S. Regional GGR 1 58 52 47 39 40 34 34 35 37 31 30 30 31 31 32 26 27 29 29 29 22 24 24 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Slide 8: Income Statement
INCOME STATEMENT Selected information in USD, millions Q1 2024 Q1 2023 CHANGE Net Operating Revenue 136.0 108.5 25% Adjusted EBITDAR 1 21.3 26.1 (18%) Net Loss Attributable to Century Casinos, Inc. Shareholders (13.5) (1.2) (990%) 1. Adjusted EBITDAR is a non-GAAP financial measure. See Appendix for
Slide 9: CNTY Consolidated Results
CNTY CONSOLIDATED RESULTS 2022 – 2024 Quarterly Results 1 Net Operating Revenue Adjusted EBITDAR2 180 35 33,3 161,2 160 29,8 29,3 143,8 30 28,1 136,0 136,8 26,1 140 25,4 25 23,8 120 111,1 112,6 21,3 21,7 103,1 108,5 103,8 100 20 80 15 60 10 40 20 5 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2022 2023 2024 2022 202
Slide 10: Balance Sheet and Leverage
BALANCE SHEET AND LEVERAGE As of March 31, 2024 Cash 5.9X $136.5 Debt Leverage 1 Anticipate Debt Leverage to trend towards 5.0X by the end of 2024 via increase trailing Total Principal Debt 1 Net Debt 2 twelve-month Adjusted EBITDAR. $342.0 $205.5 3.6X 4.3X Net Debt Leverage 2 Adjusted Net Debt Leve
Slide 11: U.S. Operations Overview
U.S. OPERATIONS OVERVIEW East, Midwest and West Regions 10
Slide 12: East Region Market Overview: West Virginia
EAST REGION MARKET OVERVIEW West Virginia POINTS OF DIFFERENTIATION MOUNTAINEER CASINO, RESORT & RACES MARKET DYNAMICS AND DEMOGRAPHICS • Represents the only full-service resort and casino • Located on the Ohio River in the northern • West Virginia was an early adopter of internet in the immediate v
Slide 13: East Region Market Overview: Maryland
EAST REGION MARKET OVERVIEW Maryland POINTS OF DIFFERENTIATION ROCKY GAP CASINO, RESORT & GOLF MARKET DYNAMICS AND DEMOGRAPHICS • Complete casino resort with Jack Nicklaus • Located against a picturesque outdoor backdrop • Western Maryland is expected to see annual Signature golf course, and large e
Slide 14: East Region Results
EAST REGION RESULTS West Virginia and Maryland Net Operating Revenue Adjusted EBITDAR1 50,0 9,0 8,5 44,0 44,2 8,0 45,0 8,0 40,0 38,5 7,0 35,0 6,0 29,7 30,4 5,3 30,0 28,2 4,9 26,3 26,7 26,5 5,0 4,8 25,0 4,3 3,9 3,9 4,0 3,5 20,0 3,0 15,0 2,0 10,0 5,0 1,0 0,0 0,0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2022 2023 2024
Slide 15: Midwest Region Market Overview: Colorado
MIDWEST REGION MARKET OVERVIEW Colorado POINTS OF DIFFERENTIATION CENTURY CASINO & HOTEL – CENTRAL CITY MARKET DYNAMICS AND DEMOGRAPHICS • Strategically located in close proximity to Denver, • Denver and Colorado Springs MSAs, both Colorado (Central City ~35 miles away) and exhibiting strong demogra
Slide 16: Midwest Region Market Overview: Missouri
MIDWEST REGION MARKET OVERVIEW Missouri POINTS OF DIFFERENTIATION CENTURY CASINO & HOTEL – CAPE GIRARDEAU MARKET DYNAMICS AND DEMOGRAPHICS • Cape Girardeau and Caruthersville are both local, • Missouri is one of the largest regional gaming drive-to markets with loyal customer bases. markets with ~$1
Slide 17: Midwest Region Results
MIDWEST REGION RESULTS Colorado and Missouri Net Operating Revenue Adjusted EBITDAR1 45,0 20,0 40,6 40,3 40,4 39,7 39,2 39,2 18,0 17,4 40,0 39,0 37,6 35,8 16,1 15,9 15,9 16,0 15,4 15,3 35,0 14,4 14,0 13,5 30,0 12,8 12,0 25,0 10,0 20,0 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 Q4 202
Slide 18: West Region Market Overview: Nevada
WEST REGION MARKET OVERVIEW Nevada POINTS OF DIFFERENTIATION NUGGET CASINO RESORT MARKET DYNAMICS AND DEMOGRAPHICS • Newly remodeled full-service resort conveniently • Located in Reno-Sparks, Nevada (aka the • Reno is famous for its casinos and as a located on Route I-80 with easy access from the “B
Slide 19: Additional Growth Drivers
ADDITIONAL GROWTH DRIVERS Overview and Caruthersville Land-based Casino 18
Slide 20: Next Stage of Growth: Value Creation Projects
NEXT STAGE OF GROWTH Attractive Value Creation Projects Remaining/Total Estimated Adjusted Estimated Project Description Capex Requirement EBITDAR1 Impact Completion East Maryland Beach access and bar renovations $0.3M / $0.4M $0.2M Q2 - Q4 2024 (Rocky Gap) Midwest Colorado Hotel refresh $0.1M / $0.
Slide 21: Missouri Projects – Caruthersville Land-Based Casino & Hotel
NEXT STAGE OF GROWTH Missouri Projects – Caruthersville Permanent Land-Based Casino & Hotel • Groundbreaking in December 2022. Expected opening in late 2024. • Transformation to full destination resort to attract customers from further into Missouri, Tennessee and Arkansas and provide guests with a
Slide 22: Long-Term Growth
LONG-TERM GROWTH Strategic Initiatives Projected to Drive Steady Growth 800 50,0% Approaching 3% s–C AGR 1 45,0% en u e $700M 700 ev Net R $635M 40,0% 600 ADJUSTED EBITDAR MARGIN $550M 35,0% NET OPERATING REVENUE 500 30,0% 2025 Assumptions: $431M 24,0% • Full year of 24,0% 400 improvements at 25,0%
Slide 23: Forecast 2024 and 2025 Cash Generation
NEXT STAGE OF GROWTH Forecast 2024 and 2025 Cash Generation 2024 2025 Target Revenue 635 +10% 700 Target Adjusted EBITDAR1 134 168 Rent Payments2 (64) (68) Capex Maintenance (19) (15) Capex Projects3 (16) (9) Interest on Goldman Term Loan (“TLB”) (38) (38) Principal Repayment TLB (7) (4) Tax (includ
Slide 24: Appendix
APPENDIX 23
Slide 25: Additional Results by Reportable Segment Q1 2024
APPENDIX Additional Results by Reportable Segment Q1 2024 1 Earnings from Operations Net Earnings (Loss) Attributable to Century Casinos, Inc. Shareholders Poland: 0% United States: -169% Poland: 0% Canada: 69% Canada: 32% United States: 68% In USD, $ millions. 24 1. Excludes the Corporate and Other
Slide 26: Abbreviations of Subsidiaries and Reporting Units
APPENDIX Abbreviations of Century Casinos, Inc. Subsidiaries and Certain Reporting Units Name Abbreviation Operating Segment Mountaineer Casino, Resort & Races MTR or Mountaineer East Rocky Gap Casino, Resort & Golf ROK or Rocky Gap East Century Casino & Hotel Cape Girardeau CCG or Cape Girardeau Mi
Slide 27: 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. Amounts presented are rounded. As such, rounding differences could occur in period-over-period changes and percentages repo
Slide 28: Non-GAAP Financial Measures
APPENDIX Non-GAAP Financial Measures • The Company supplements its consolidated financial statements prepared in accordance with US generally accepted accounting principles (“GAAP”) by using the following non-GAAP financial measures, which management believes are useful in properly understanding the
Slide 29: Non-GAAP Financial Measures
APPENDIX Non-GAAP Financial Measures • Adjusted EBITDAR is defined as net (loss) earnings attributable to Century Casinos, Inc. shareholders before interest expense (income) (including interest expense related to the Company’s Master Lease), net, income taxes (benefit), depreciation, amortization, n
Slide 30: Non-GAAP Financial Measures
APPENDIX Non-GAAP Financial Measures • Adjusted EBITDAR (continued). Adjusted EBITDAR should not be construed as an alternative to net earnings (loss) attributable to Century Casinos, Inc. shareholders, the most directly comparable GAAP measure, as indicators of our performance. In addition, Adjuste
Slide 31: Non-GAAP Financial Measures
APPENDIX Non-GAAP Financial Measures • Lease Adjusted Net Leverage is calculated by dividing the Company’s trailing twelve-month Adjusted EBITDAR by the Company’s Lease Debt (as defined in this Appendix) plus Net Debt. Lease Adjusted Net Leverage shows the Company’s leverage as if the Master Lease,
Slide 32: Reconciliation of Adjusted EBITDAR
APPENDIX Non-GAAP Financial Measures – Reconciliation of Adjusted EBITDAR For the three months ended March 31, 2024 2023 Net operating revenue $ 136,017 $ 108,508 Net loss attributable to Century Casinos, Inc. shareholders (13,544) (1,243) Interest expense (income), net 25,129 17,504 Income tax (ben
Slide 33: Reconciliation of Adjusted EBITDAR by Segment
APPENDIX Non-GAAP Financial Measures – Reconciliation of Adjusted EBITDAR For the three months ended For the three months ended March 31, 2024 March 31, 2023 Total Total United United East Midwest West States East Midwest West States Net (loss) earnings attributable to Century Casinos, Inc. sharehol
Slide 34: Reconciliation of Adjusted EBITDAR Quarterly
APPENDIX Non-GAAP Financial Measures – Reconciliation of Adjusted EBITDAR 2022 2023 2024 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Net earnings (loss) attributable to Century Casinos, Inc. shareholders $ 0.2 $ 8.9 $ 2.9 $ (4.0) $ (1.2) $ (2.0) $ (23.4) $ (10.8) $ (13.5) Interest expense (income), net 10.8 21.8 15.
Slide 35: Reconciliation of Adjusted EBITDAR Trailing Twelve Months
APPENDIX Non-GAAP Financial Measures – Reconciliation of Adjusted EBITDAR Trailing Twelve Months Ended Year Ended March 31, December 31, Q2 2023 Q3 2023 Q4 2023 Q1 2024 2024 2023 Net Operating Revenue $136,761 $161,179 $143,760 $136,017 $577,717 $550,206 Net loss earnings attributable to Century Cas
Slide 36: Calculation of Interest Expense (Income), Net
APPENDIX Calculation of Interest Expense (Income), Net Trailing Twelve Months Ended Year Ended March 31, December 31, Q2 2023 Q3 2023 Q4 2023 Q1 2024 2024 2023 Interest income (119) (75) (1,775) (686) (2,655) (2,114) Interest expense - Credit Agreements 9,742 10,056 10,649 9,899 40,346 39,703 Intere
Slide 37: Calculation of Rent Payments
APPENDIX Calculation of Rent Payments Trailing Twelve Months Ended Year Ended March 31, December 31, Q2 2023 Q3 2023 Q4 2023 Q1 2024 2024 2023 Cash payments on Master Lease 6,866 11,923 15,085 9,444 43,318 40,739 Cash payments on CDR land lease 497 275 — — 772 1,258 Cash payments on Nugget lease (50
Slide 38: Calculations and Components Used in Calculations
APPENDIX Non-GAAP Financial Measures – Calculations and Components Used in Calculations Trailing Twelve Months Ended March 31, 2024 Cash $136.5 Cash in Casinos $43.8 Total Principal Debt $342.0 Net Debt $205.5 1 Adjusted EBITDAR $109.2 2 Rent Payments ($51.7) 3 Debt Leverage 5.9x Net Debt Leverage 4
Slide 39: Calculation of Net Debt
APPENDIX Non-GAAP Financial Measures – Calculation of Net Debt March 31, 2024 December 31, 2023 Total long-term debt, including current portion $ 328,548 $ 332,680 Deferred financing costs 13,475 14,149 Total principal $ 342,023 $ 346,829 Less: Cash and cash equivalents $ 136,543 $ 171,327 Net Debt