Century Casinos, Inc. · NASDAQ:CNTY
Century Casinos — Q2 2021 Earnings Presentation
33 slides from Century Casinos's earnings presentation, 2021
Slide 1: Century Casinos, Inc. Financial Results Q2 2021
Exhibit 99.2 CENTURY CASINOS, INC. Financial Results Q2 2021 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 Priva
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 and the term “PLN” refers to Polish zloty. Adjusted EBITDA, Adjusted EBITDA margin and Net Debt are non-GAAP financial measures. See Appendix A for the definition and reconciliat
Slide 4: COVID-19 Update
COVID-19 UPDATE In late 2019, an outbreak of COVID-19 was identified in China and has since spread throughout much of the world. The COVID-19 pandemic has had an adverse effect on the Company’s 2020 results of operations and financial condition, and impacted the Company’s results of operations to a
Slide 5: Q2 2021 Net Operating Revenue by Reportable Segment and Operating Segment
Q2 2021 Net Operating Revenue by Reportable Segment and Operating Segment (in USD) Excluding Corporate and Other Reportable Segment Poland 9% Canada 8% United States 83% Missouri 37% Poland 9% Edmonton 5% Calgary 3% Colorado 13% West Virginia 33% CENTURY CASINOS 5
Slide 6: Q2 2021 Earnings (Loss) from Operations by Reportable Segment and Operating Segment
Q2 2021 Earnings (Loss) from Operations by Reportable Segment and Operating Segment (in USD) Excluding Corporate and Other Reportable Segment Poland -9% Canada -2% United States 111% Missouri 68% Poland -9% Edmonton -3% Calgary 1% Colorado 21% West Virginia 22% Century Casinos 6
Slide 7: Q2 2021 Net Earnings (Loss) Attributable to Shareholders by Segment
Q2 2021 Net Earnings (Loss) Attributable to Century Casinos, Inc. Shareholders by Reportable Segment and Operating Segment (in USD) Excluding Corporate and Other Reportable Segment United States 118% Poland -7% Canada -11% Missouri 68% Poland -7% Edmonton -10% Calgary -1% Colorado 32% West Virginia
Slide 8: Q2 2021 Adjusted EBITDA by Reportable Segment and Operating Segment
Q2 2021 Adjusted EBITDA* by Reportable Segment and Operating Segment (in USD) Excluding Corporate and Other Reportable Segment United States 102% Poland -4% Canada 2% Missouri 63% Poland -4% Edmonton 1% Calgary 1% Colorado 17% West Virginia 22% *Adjusted EBITDA is a non-GAAP financial measure. See A
Slide 9: Net Operating Revenue per Quarter
Net Operating Revenue per Quarter (in USD) In millions 0 20 40 60 80 100 120 Q1 36.4 40.6 45.6 87.7 72.4 Q2 37.3 39.6 52.4 36.1 92.2 Q3 41.0 43.6 52.9 95.7 Q4 39.3 45.1 67.2 84.8 2017 2018 2019 2020 2021 Century Casinos 9
Slide 10: Balance Sheet
Balance Sheet (Selected Information in USD) In millions (except BVPS) June 30, 2021 December 31, 2020 Change Total Assets 688.8 680.8 1% Total Debt 183.9 184.6 - Book Value per Share* 4.31 3.99 8% Net Debt** 112.2 130.4 *Book Value per Share is defined as total Century Casinos, Inc. shareholders’ eq
Slide 11: Income Statement
Income Statement (Selected Information in USD) In millions Q2 2021 Q2 2020 Change Net Operating Revenue 92.2 36.1 155% Earnings (Loss) from Operations 18.1 (2.1) 957% Net Earnings (Loss) Attributable to Century Casinos, Inc. Shareholders 6.9 (12.6) 154% Adjusted EBITDA* 25.2 (1.8) 1532% Basic Earnin
Slide 12: Debt and Net Debt to Adjusted EBITDA
Debt and Net Debt to Adjusted EBITDA* (in USD) As of June 30, 2021 and for the years ended December 31, 2013-2020 9x 8x 7x 6x 5x 4x 3x 2x lx 0x -1x -2x 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 6.8X 5.1X 2020 7.9X 5.6X 2021 3.3X 2.0X Debt to Adju
Slide 13: Q2 2021 Highlights – United States
Q2 2021 Highlights – UNITED STATES (Selected Information in USD) In millions Q2 2021 Q2 2020 Change Net Operating Revenue 76.7 23.8 222% Impairment -Intangible Assets — 1.2 (100%) Operating Costs and Expenses 53.2 27.1 96% Earnings (Loss) from Operations 23.5 (3.3) 809% Net Earnings (Loss) Attributa
Slide 14: Q2 2021 Highlights – Colorado
Q2 2021 Highlights – COLORADO (Selected Information in USD, in millions) Net Operating Revenue 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 Q1 8.1 6.7 9.4 Q2 8.8 2.0 12.1 Q3 9.2 10.4 Q4 7.8 9.5 2019 2020 2021 Adjusted EBITDA* 0.0 1.0 2.0 3.0 4.0 5.0 6.0 Q1 1.9 0.8 3.1 Q2 2.2 0.3 4.8 Q3 2.3 4.8 Q4 1.6 3.4 2019
Slide 15: Q2 2021 Highlights – West Virginia
Q2 2021 Highlights – WEST VIRGINIA (Selected Information in USD, in millions) Net Operating Revenue 0.0 5.0 10.0 15.0 20.0 25.0 30.0 35.0 Q1 25.1 23.9 Q2 12.2 30.6 Q3 28.4 Q4** 8.7 24.5 2019 2020 2021 Adjusted EBITDA* -1.0 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 Q1 1.8 3.6 Q2 -0.5 6.2 Q3 4.8 Q4** 1.3 3.3 20
Slide 16: Q2 2021 Highlights – Missouri
Q2 2021 Highlights – MISSOURI (Selected Information in USD, in millions) Net Operating Revenue 0.0 5.0 10.0 15.0 20.0 25.0 30.0 35.0 40.0 Q1 21.6 31.0 Q2 9.6 34.1 Q3 23.9 Q4** 7.4 24.5 2019 2020 2021 Adjusted EBITDA* 0.0 5.0 10.0 15.0 20.0 Q1 6.1 15.4 Q2 2.3 17.2 Q3 9.7 Q4** 2.6 10.4 2019 2020 2021
Slide 17: Q2 2021 Highlights – Canada
Q2 2021 Highlights – CANADA (Selected Information in CAD) In millions Q2 2021 Q2 2020 Change Net Operating Revenue 8.2 6.4 27% Operating Costs and Expenses 8.9 8.3 8% Losses from Operations (0.8) (1.9) 58% Net (Loss) Earnings Attributable to Century Casinos, Inc. Shareholders (0.7) 2.4 (130%) Adjust
Slide 18: Q2 2021 Highlights – Edmonton
Q2 2021 Highlights – Edmonton (Selected Information in CAD, in millions) Net Operating Revenue 0.0 5.0 10.0 15.0 20.0 Q1 11.8 13.1 1.3 Q2 18.5 3.9 5.1 Q3 17.9 13.5 Q4 16.6 10.2 2019 2020 2021 Adjusted EBITDA* -3.0 -2.0 -1.0 0.0 1.0 2.0 3.0 4.0 5.0 Q1 2.9 1.4 -2.4 Q2 4.0 -0.2 0.3 Q3 3.5 3.2 Q4 3.9 2.
Slide 19: Q2 2021 Highlights – Calgary
Q2 2021 Highlights – Calgary (Selected Information in CAD, in millions) Net Operating Revenue 0.0 2.0 4.0 6.0 8.0 10.0 12.0 Q1 9.9 8.5 1.2 Q2 10.9 2.6 3.1 Q3 11.2 8.6 Q4 10.2 6.4 2019 2020 2021 Adjusted EBITDA* -1.0 0.0 1.0 2.0 3.0 4.0 5.0 Q1 3.8 2.5 -0.7 Q2 3.9 0.0 0.5 Q3 2.9 2.7 Q4 3.2 2.8 2019 20
Slide 20: Q2 2021 Highlights – Poland
Q2 2021 Highlights – POLAND (Selected Information in PLN) In millions Q2 2021 Q2 2020 Change Net Operating Revenue 32.5 29.6 10% Operating Costs and Expenses 39.4 38.9 1% Loss from Operations (6.9) (9.3) 26% Net Loss Attributable to Century Casinos, Inc. Shareholders (3.9) (6.3) 39% Adjusted EBITDA*
Slide 21: Q2 2021 Highlights – Poland
Q2 2021 Highlights – POLAND (Selected Information in PLN, in millions) Net Operating Revenue 0.0 20.0 40.0 60.0 80.0 100.0 Q1 74.8 66.6 22.4 Q2 76.6 29.6 32.5 Q3 79.0 62.1 Q4 83.9 51.0 2019 2020 2021 Adjusted EBITDA* -15.0 -10.0 -5.0 0.0 5.0 10.0 15.0 Q1 9.3 4.1 -9.6 Q2 7.6 -6.3 -4.0 Q3 9.6 3.8 Q4 9
Slide 22: Q2 2021 Highlights – Corporate and Other
Q2 2021 Highlights – CORPORATE AND OTHER (Selected Information in USD) In millions Q2 2021 Q2 2020 Change Net Operating Revenue 0.1 0.2 (15%) Operating Costs and Expenses 3.1 (4.5) 170% (Loss) Earnings from Operations (3.0) 4.6 (165%) Net (Loss) Earnings Attributable to Century Casinos, Inc. Shareho
Slide 23: Appendix A – Abbreviations of Century Casinos, Inc. Subsidiaries and Operating Segments
Appendix A – ABBREVIATIONS OF CENTURY CASINOS, INC. SUBSIDIARIES AND CERTAIN OPERATING SEGMENTS Subsidiary Abbreviation Century Casino & Hotel – Central City CTL Century Casino & Hotel – Cripple Creek CRC Mountaineer Casino, Racetrack & Resort MTR Century Casino Cape Girardeau CCG Century Casino Car
Slide 24: 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 25: Appendix A – Non-GAAP Financial Measures
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 26: Appendix A – Non-GAAP Financial Measures
Appendix A – NON-GAAP FINANCIAL MEASURES 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 is a valuab
Slide 27: Reconciliation of Adjusted EBITDA
Appendix A – NON-GAAP FINANCIAL MEASURES Reconciliation of Adjusted EBITDA (in thousands) For the three months ended June 30, in USD 2021 2020 Net Operating Revenue $ 92,185 $ 36,103 Net earnings (loss) attributable to Century Casinos, Inc. shareholders 6,855 (12,607) Interest expense (income), net
Slide 28: Reconciliation of Adjusted EBITDA – United States
Appendix A – NON-GAAP FINANCIAL MEASURES Reconciliation of Adjusted EBITDA (in thousands) – UNITED STATES For the three months ended June 30, 2021 in USD Colorado West Virginia Missouri Total United States Net Operating Revenue $ 12,071 $ 30,561 $ 34,068 $ 76,700 Net earnings attributable to Century
Slide 29: Reconciliation of Adjusted EBITDA – Canada
Appendix A – NON-GAAP FINANCIAL MEASURES Reconciliation of Adjusted EBITDA (in thousands) – CANADA For the three months ended June 30, 2021 in CAD Edmonton Calgary Total Canada Net Operating Revenue $ 5,083 $ 3,071 $ 8,154 Net loss attributable to Century Casinos, Inc. shareholders (490) (209) (699)
Slide 30: Reconciliation of Adjusted EBITDA – Poland
Appendix A – NON-GAAP FINANCIAL MEASURES Reconciliation of Adjusted EBITDA (in thousands) – POLAND For the three months ended June 30, in PLN 2021 2020 Net Operating Revenue PLN 32,489 PLN 29,573 Net loss attributable to Century Casinos, Inc. shareholders (3,855) (6,267) Interest expense (income), n
Slide 31: Reconciliation of Adjusted EBITDA – Corporate and Other
Appendix A – NON-GAAP FINANCIAL MEASURES Reconciliation of Adjusted EBITDA (in thousands) – CORPORATE AND OTHER For the three months ended June 30, in USD 2021 2020 Net Operating Revenue $ 138 $ 162 Net (loss) earnings attributable to Century Casinos, Inc. shareholders (7,084) 691 Interest expense (
Slide 32: Reconciliation of Adjusted EBITDA Less Cash Payments on Master Lease
Appendix A – NON-GAAP FINANCIAL MEASURES Reconciliation of Adjusted EBITDA and Adjusted EBITDA Less Cash Payments on Master Lease Financing Obligation (in thousands) in USD Q3 2020 Q4 2020 Q1 2021 Q2 2021 Trailing 12-Month June 30, 2021 Trailing 12-Month December 31, 2020 Net earnings (loss) attribu
Slide 33: Reconciliation of Net Debt
Appendix A – NON-GAAP FINANCIAL MEASURES Reconciliation of Net Debt (in thousands) Amounts in thousands June 30, 2021 December 31,2020 Total long-term debt, including current portion $ 183,865 $ 184,550 Deferred financing costs 8,478 9,261 Total principal $ 192,343 $ 193,811 Less: Cash and cash equi