Century Casinos, Inc. · NASDAQ:CNTY
Century Casinos — Q1 2020 Earnings Presentation
34 slides from Century Casinos's earnings presentation, May 20, 2020
Slide 1: Century Casinos Financial Results Q1 2020
CENTURY CASINOS Financial Results Q1 2020 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, the term “PLN” refers to Polish zloty and the term “GBP” refers to the British pound. Adjusted EBITDA and Adjusted EBITDA margin are non-GAAP financial measures. See Appendix A
Slide 4: COVID-19
COVID-19 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 first quarter 2020 results of operations and financial condition, and we expect this situation will have an adver
Slide 5: Q1 2020 Net Operating Revenue by Reportable Segment and Operating Segment
Q1 2020 Net Operating Revenue by Reportable Segment and Operating Segment (in USD) Excluding Corporate Other Operating Segment CCB, Ships & Other 1% Canada Poland 18% 19% CCB, Ships & Other Edmonton 1% Poland 11% 19% Calgary 7% Colorado 8% Missouri United States 25% 62% West Virginia 29% 5
Slide 6: Q1 2020 (Loss) Earnings from Operations by Segment
Q1 2020 (Loss) Earnings from Operations by Reportable Segment and Operating Segment (in USD) Excluding Corporate Other Operating Segment CCB, Ships & Other Canada Poland -3% -6% 1% CCB, Ships & Poland Other Edmonton 1% -3% -11% Calgary 5% Colorado 1% West Virginia 0% United States -92% Missouri -93%
Slide 7: Q1 2020 Net (Loss) Earnings Attributable to Shareholders by Segment
Q1 2020 Net (Loss) Earnings Attributable to Century Casinos, Inc. Shareholders by Reportable Segment and Operating Segment (in USD) Excluding Corporate Other Operating Segment Poland CCB, Ships & Other 0% -2% Canada -11% CCB, Ships & Poland Other Edmonton 0% -2% -13% Calgary 2% Colorado -1% West Vir
Slide 8: Q1 2020 Adjusted EBITDA by Segment
Q1 2020 Adjusted EBITDA* by Reportable Segment and Operating Segment (in USD) Excluding Corporate Other Operating Segment CCB, Ships & Other -7% Poland Canada 9% 25% CCB, Ships & Other Poland Edmonton -7% 9% 9% Calgary 16% Colorado 7% United States 73% West Virginia Missouri 15% 51% *Adjusted EBITDA
Slide 9: Net Operating Revenue per Quarter
Net Operating Revenue per Quarter (in USD) 100 90 87.7 80 70 67.2 60 52.4 52.9 50 45.6 45.1 43.6 40.6 39.6 41.0 39.3 40 36.4 37.3 36.3 35.2 34.5 33.2 30 20 10 0 Q1 Q2 Q3 Q4 2016 2017 2018 2019 2020 9
Slide 10: Balance Sheet
Balance Sheet (Selected Information in USD) In millions (except BVPS) March 31, 2020 December 31, 2019 Change Total Assets 670.1 726.9 (8%) Total Debt 194.0 179.0 8% Book Value per Share* 3.54 5.54 (36%) Net Debt** 140.4 134.2 *Book Value per Share is defined as total Century Casinos, Inc. sharehold
Slide 11: Income Statement
Income Statement (Selected Information in USD) In millions (except EPS) Q1 2020 Q1 2019 Change Net Operating Revenue 87.7 45.6 92% (Loss) Earnings from Operations (31.8) 3.4 (1022%) Net (Loss) Earnings Attributable to Century Casinos, Inc. Shareholders (45.9) 1.1 (4394%) Adjusted EBITDA* 9.6 6.7 44%
Slide 12: Constant Currency Results (in USD)
Constant Currency Results (in USD) In millions Q1 2020 Q1 2019 Change Net Operating Revenue as reported (GAAP) 87.7 45.6 92% Foreign currency impact vs. 2019 0.6 Net Operating Revenue constant currency (non-GAAP)* 88.2 45.6 93% (Loss) Earnings from Operations as reported (GAAP) (31.8) 3.4 (1022%) Fo
Slide 13: Constant Currency Results (in USD)
Constant Currency Results (in USD) In millions Q1 2020 Q1 2019 Change Net (Loss) Earnings Attributable to Century Casinos, Inc. Shareholders as reported (GAAP) (45.9) 1.1 (4394%) Foreign currency impact vs. 2019 (0.5) Net (Loss) Earnings Attributable to Century Casinos, Inc. Shareholders constant cu
Slide 14: Debt and Net Debt to Adjusted EBITDA
Debt and Net Debt to Adjusted EBITDA* (in USD) As of March 31, 2020 and for the years ended December 31, 2012-2019 7x 5.9x 5.8x 6x 5x 4.4x 4.2x 4x 3.0x 3x 2.7x 2.5x 2.2x 2.2x 2x 1.6x 1.1x 1x 0.5x 0.7x 0.6x 0.3x 0.3x 0x 2012 2013 2014 2015 2016 2017 2018 2019 2020 -1x -0.7x -2x -2.0x -3x Debt to Adju
Slide 15: Q1 2020 Highlights – United States
Q1 2020 Highlights – UNITED STATES (Selected Information in USD) In millions Q1 2020 Q1 2019 Change Net Operating Revenue 53.4 8.1 562% Impairment - Intangible Assets 29.6 — 100% Operating Costs and Expenses 78.5 6.7 1067% (Loss) Earnings from Operations (25.1) 1.3 (1974%) Net (Loss) Earnings Attrib
Slide 16: Q1 2020 Highlights – United States Colorado
Q1 2020 Highlights – UNITED STATES (Selected Information in USD) COLORADO In millions Q1 2020 Q1 2019 Change Net Operating Revenue 6.7 8.1 (17%) Operating Costs and Expenses 6.4 6.7 (5%) Earnings from Operations 0.3 1.3 (76%) Net (Loss) Earnings Attributable to Century Casinos, Inc. Shareholders (0.
Slide 17: Q1 2020 Highlights – United States West Virginia
Q1 2020 Highlights – UNITED STATES (Selected Information in USD) WEST VIRGINIA In millions Q1 2020 Net Operating Revenue 25.1 Impairment - Intangible Assets 0.4 Operating Costs and Expenses 25.2 Loss from Operations (0.1) Net Loss Attributable to Century Casinos, Inc. Shareholders (2.6) Adjusted EBI
Slide 18: Q1 2020 Highlights – United States Missouri
Q1 2020 Highlights – UNITED STATES (Selected Information in USD) MISSOURI In millions Q1 2020 Net Operating Revenue 21.6 Impairment - Intangible Assets 29.2 Operating Costs and Expenses 46.9 Loss from Operations (25.3) Net Loss Attributable to Century Casinos, Inc. Shareholders (31.1) Adjusted EBITD
Slide 19: Q1 2020 Highlights – Canada
Q1 2020 Highlights – CANADA (Selected Information in CAD) In millions Q1 2020 Q1 2019 Change Net Operating Revenue 21.6 21.7 (0%) Impairment - Intangible Assets 4.7 — 100% Operating Costs and Expenses 24.1 16.8 44% (Loss) Earnings from Operations (2.6) 4.9 (152%) Net (Loss) Earnings Attributable to
Slide 20: Q1 2020 Highlights – Canada Edmonton
Q1 2020 Highlights – CANADA (Selected Information in CAD) EDMONTON In millions Q1 2020 Q1 2019 Change Net Operating Revenue 13.1 11.8 11% Impairment - Intangible Assets 4.7 — 100% Operating Costs and Expenses 17.5 10.1 74% (Loss) Earnings from Operations (4.4) 1.7 (358%) Net (Loss) Earnings Attribut
Slide 21: Q1 2020 Highlights – Canada Calgary
Q1 2020 Highlights – CANADA (Selected Information in CAD) CALGARY In millions Q1 2020 Q1 2019 Change Net Operating Revenue 8.5 9.9 (14%) Operating Costs and Expenses 6.7 6.7 (0%) Earnings from Operations 1.9 3.2 (42%) Net Earnings Attributable to Century Casinos, Inc. Shareholders 0.8 1.6 (51%) Adju
Slide 22: Q1 2020 Highlights – Poland
Q1 2020 Highlights – POLAND (Selected Information in PLN) In millions Q1 2020 Q1 2019 Change Net Operating Revenue 66.6 74.8 (11%) Operating Costs and Expenses 65.5 68.5 (4%) Earnings from Operations 1.1 6.3 (83%) Net Earnings Attributable to Century Casinos, Inc. Shareholders 0.7 3.2 (77%) Adjusted
Slide 23: Q1 2020 Highlights – Corporate and Other
Q1 2020 Highlights – CORPORATE AND OTHER (Selected Information in USD) In millions Q1 2020 Q1 2019 Change Net Operating Revenue 1.0 1.5 (35%) Impairment - Intangible Assets 1.0 — 100% Operating Costs and Expenses 6.3 4.8 32% Loss from Operations (5.3) (3.3) (62%) Net Loss Attributable to Century Cas
Slide 24: Q1 2020 Highlights – Additional Projects Under Development
Q1 2020 Highlights – ADDITIONAL PROJECTS UNDER DEVELOPMENT Bermuda In August 2017, the Company announced that, together with Hamilton Properties Limited, it had submitted a casino license application to the Bermudan government for a casino at the Hamilton Princess Hotel & Beach Club in Hamilton, Ber
Slide 25: Appendix A – Abbreviations of 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 26: 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 27: 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 28: Appendix A – Non-GAAP Financial Measures
Appendix A – NON-GAAP FINANCIAL MEASURES The impact of foreign exchange rates is highly variable and difficult to predict. The Company uses a Constant Currency basis to show the impact from foreign exchange rates on current period financial information compared to prior period financial information
Slide 29: Appendix A – Reconciliation – United States
Appendix A – NON-GAAP FINANCIAL MEASURES Reconciliation of Adjusted EBITDA (in thousands) – UNITED STATES For the three months ended March 31, 2020 Total United in USD Colorado West Virginia Missouri States Net Operating Revenue $ 6,695 $ 25,110 $ 21,622 $ 53,427 Net loss attributable to Century Cas
Slide 30: Appendix A – Reconciliation – Canada
Appendix A – NON-GAAP FINANCIAL MEASURES Reconciliation of Adjusted EBITDA (in thousands) - CANADA For the three months ended March 31, 2020 in CAD Edmonton Calgary Total Canada Net Operating Revenue $ 13,078 $ 8,509 $ 21,587 Net (loss) earnings attributable to Century Casinos, Inc. shareholders (17
Slide 31: Appendix A – Reconciliation – Canada continued
Appendix A – NON-GAAP FINANCIAL MEASURES Reconciliation of Adjusted EBITDA (in thousands) – CANADA continued For the three months ended March 31, 2019 in CAD Edmonton Calgary Total Canada Net Operating Revenue $ 11,790 $ 9,885 $ 21,675 Net earnings attributable to Century Casinos, Inc. shareholders
Slide 32: Appendix A – Reconciliation – Poland
Appendix A – NON-GAAP FINANCIAL MEASURES Reconciliation of Adjusted EBITDA (in thousands) – POLAND For the three months ended March 31, in PLN 2020 2019 Net Operating Revenue PLN 66,582 PLN 74,833 Net earnings attributable to Century Casinos, Inc. shareholders 740 3,170 Interest expense (income), ne
Slide 33: Appendix A – Reconciliation – Corporate and Other
Appendix A – NON-GAAP FINANCIAL MEASURES Reconciliation of Adjusted EBITDA (in thousands) – CORPORATE AND OTHER For the three months ended March 31, in USD 2020 2019 Net Operating Revenue $ 980 $ 1,496 Net loss attributable to Century Casinos, Inc. shareholders (7,260) (2,375) Interest expense (inco
Slide 34: Appendix A – Reconciliation of Net Debt
Appendix A – NON-GAAP FINANCIAL MEASURES Reconciliation of Net Debt (in thousands) Amounts in thousands March 31, 2020 March 31, 2019 Total long-term debt, including current portion $ 194,029 $ 67,772 Deferred financing costs 10,090 477 Total principal $ 204,119 $ 68,249 Less: Cash and cash equivale