Century Casinos, Inc. · NASDAQ:CNTY
Century Casinos — Investor Presentation (January 2023)
33 slides from Century Casinos's investor presentation, January 2023
Slide 1: Investor Presentation
INVESTOR PRESENTATION Peter Hoetzinger, Co CEO & President January 2023
Slide 2: 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 o
Slide 3: Multi-Channel North American Gaming Company
Multi-Channel North American Gaming Company Land-based Casinos (USA and Canada) Reno, Nevada Pending The online world and the land-based regulatory casino world co-exist successfully. approval Western Maryland Racinos and On/Off-Track Betting Give online customers a better experience and social exci
Slide 4: Century’s Property Footprint
Century’s Property Footprint 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 L
Slide 5: Diverse Regional Exposure in Stable, Mature Gaming Markets in the U.S.
Diverse Regional Exposure in Stable, Mature Gaming Markets in the U.S. Colorado GGR § Exposure to attractive regional markets proven to be resilient throughout the pandemic $811 $828 $842 $834 $976 $560 – 2021 GGR levels materially up versus 2019 across all markets served in the U.S. 201 6 201 7 201
Slide 6: Stable Historical Performance of Regional GGR in the U.S.
Stable Historical Performance of Regional GGR in the U.S. Stable growth since 2001 and resilient to macroeconomic changes including oil prices and CPI U.S. Regional GGR ($bn) $50.0 $ 47 $ 39 $ 40 $ 35 $ 37 $40.0 $ 32 $ 34 $ 34 $ 31 $ 30 $ 29 $ 30 $ 31 $ 31 $ 27 $ 29 $ 29 $30.0 $ 24 $ 24 $ 26 $ 22 $2
Slide 7: U.S. Operations Overview
• Colorado • Missouri U.S. OPERATIONS OVERVIEW • West Virginia
Slide 8: 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 § Easily accessible from highway I-70 Slot Machines 413 § Voted Denver’s Best Casino sinc
Slide 9: Colorado Region Results
Colorado Region Results Central City and Cripple Creek Net Operating Revenue 16,0 13,5 14,0 12,5 12,1 11,6 12,0 11,3 10,3 10,4 9,4 9,5 10,0 8,0 6,7 6,0 4,0 2,0 2,0 0,0 Q1 Q2 Q3 Q4 202 0 202 1 202 2 Adjusted EBITDA 6,0 5,3 4,8 4,8 5,0 5,0 4,4 3,9 4,0 3,4 3,1 3,3 3,0 2,0 0,8 1,0 0,3 0,0 Q1 Q2 Q3 Q4 20
Slide 10: 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 84
Slide 11: Missouri Region Results
Missouri Region Results Cape Girardeau and Caruthersville Net Operating Revenue 40,0 34,1 35,0 31,0 28,7 29,0 29,7 28,3 30,0 26,8 23,9 24,5 25,0 21,6 20,0 15,0 9,6 10,0 5,0 0,0 Q1 Q2 Q3 Q4 202 0 202 1 202 2 Adjusted EBITDA 20,0 18,0 17,2 15,4 16,0 12,8 13,0 13,4 12,8 14,0 12,0 10,6 10,4 9,7 10,0 8,0
Slide 12: West Virginia Region Market Overview and Asset Summary
West Virginia Region Market Overview and Asset Summary Mountaineer Casino 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 5,000-seat conv
Slide 13: West Virginia Region Results
West Virginia Region Results Mountaineer Casino Resort Net Operating Revenue 35,0 31,7 30,6 29,7 30,4 30,0 28,4 28,7 25,1 26,3 23,9 24,5 25,0 20,0 15,0 12,2 10,0 5,0 0,0 Q1 Q2 Q3 Q4 202 0 202 1 202 2 Adjusted EBITDA 7,0 6,2 5,9 6,0 5,3 4,9 4,8 5,0 4,3 4,5 4,0 3,6 3,3 3,0 1,8 2,0 1,0 0,0 -1,0 -0,5 Q1
Slide 14: Pending Acquisition: Nugget Casino Resort
CASINO RESORT PENDING ACQUISITION RENO – SPARKS, NEVADA
Slide 15: Transaction Overview
Transaction Overview § In February 2022, Century announced a definitive agreement with Marnell Gaming, LLC to acquire 100% of Nugget OpCo and 50% of Nugget PropCo for a total of $195mm – Represents a blended purchase price multiple of ~7.8x LTM 12/31/2021 Adj. EBITDA; expected to close within 12-15
Slide 16: 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, two 29 50,200 hotel towers, a con
Slide 17: 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 famous for its casinos, but is also known as a 25.0 % destination for outdoor recreation with proximity to Lake Tahoe and several ski resorts.
Slide 18: Rocky Gap. Pending Acquisition
ROCKY GAP. CASINO - RESORT - GOLF FLINTSTONE, MARYLAND PENDING ACQUISITION
Slide 19: Transaction Overview
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 (after rent payments to VICI) and is expected to close within 12 months pending receipt of
Slide 20: Rocky Gap Casino Resort
Rocky Gap Casino Resort § Only Casino Resort in Western Maryland, with 10 million + Adults within in 100-mile radius. § 198 hotel rooms. § 630 slot machines. § 16 table games. § $10mm of property upgrades since 2018 q remodeled rooms and suits q new sports lounge q renovation and upgrade of F&B offe
Slide 21: Rocky Gap, MD Competitive Landscape
Rocky Gap, MD Competitive Landscape 20
Slide 22: Additional Growth Drivers
• Cape Girardeau Hotel • Caruthersville Land-based ADDITIONAL GROWTH DRIVERS
Slide 23: Missouri Projects – Cape Girardeau Hotel
Century is Well-Positioned for the Next Stages 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 24: Missouri Projects – Caruthersville Temporary Land-Based Casino & Hotel
Century is Well-Positioned for the Next Stages of Growth Missouri Projects – Caruthersville Temporary Land-Based Casino & Hotel § Originally, casino operated on a riverboat and barge. Closed all games on riverboat in 10/2022 as it was no longer accessible due to record low water levels (continued on
Slide 25: Missouri Projects – Caruthersville Permanent Land-Based Casino & Hotel
Century is Well-Positioned for the Next Stages of Growth Missouri Projects – Caruthersville Permanent Land-Based Casino & Hotel § Groundbreaking on December 2, 2022. Expected opening in late 2024. § 650 slot machines (with the possibility of an expansion for an additional 140), table games, a deli a
Slide 26: Key Financials
• Consolidated Revenue and Adj. EBITDA • Debt and Net Debt Leverage • Pro Forma Financial Info KEY FINANCIALS
Slide 27: CNTY Consolidated Results
CNTY Consolidated Results 2018 – 2022 Quarterly Net Operating Revenue 140 111,1 116,6112,6 120 103,1 107,3 92,2 95,7 100 87,7 84,8 80 72,4 67,2 60 52,4 52,9 40,6 45,6 39,6 36,1 43,6 45,1 40 20 0 Q1 Q2 Q3 Q4 2018 2019 2020 2021 2022 Adjusted EBITDA 35,0 33,1 29,8 28,1 30,0 25,2 23,8 24,9 25,0 22,2 20
Slide 28: Pro Forma Century Casinos, Inc. Portfolio
Pro Forma Century Casinos, Inc. Portfolio Two Acquisitions Pending Pending acquisition in Pending acquisition in Pro Forma Reno/Sparks, Nevada Maryland # of Properties 17 Properties 1 Property 1 Property 19 Properties # of Slot Machines 6,167 859 630 7,656 # of Table Games 226 29 16 271 # of Hotel R
Slide 29: Reconciliation of Lease Adjusted Debt and Pro Forma Lease Adjusted Debt
Reconciliation of Lease Adjusted Debt and Pro Forma Lease Adjusted Debt (Non-GAAP Financial Measures) September 30, 2022 Nugget Acquisition Rocky Gap Acquisition September 30, 2022 (1) (2) in dollars, in millions Current PENDING PENDING PRO FORMA Cash $ 99.3 $ - $ (56.1) $ 43.2 Total Principal Debt
Slide 30: Summary of Pro Forma Historical Financial Performance
Summary of Pro Forma Historical Financial Performance in millions Key Highlights Revenue $567 § Stable revenue growth across Century, the Nugget $78 and Rocky Gap with strong recovery post-COVID. $413 $377 $100 § Consistent Adj. EBITDA growth combined with $302 $321 $70 $52 $57 margin expansion. $67
Slide 31: Broad Geographic and Asset Diversification
Broad Geographic and Asset Diversification No single property accounts for more than 21% of Property Adj. EBITDA § Acquisitions of Nugget and Rocky Gap significantly increase Century’s scale. § 46% increase in revenue. § 61% increase in Adj. EBITDA. § Further diversifies earnings on geographic and p
Slide 32: Proven Track Record of Consistent EBITDA Stability
Century Has a Proven Track Record of Consistent EBITDA Stability and is Poised for Future Growth Decade plus of steady Adj. EBITDA growth with attractive opportunities to accelerate growth with new acquisitions Pro 2010 - 2017 2018 - Present Forma1 ü Increased Canadian footprint through developments
Slide 33: Thank You!
THANK YOU !
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