Century Casinos, Inc. · NASDAQ:CNTY
Century Casinos — Q4 2022 Earnings Presentation
53 slides from Century Casinos's earnings presentation, Mar 10, 2023
Slide 1: Investor Presentation
INVESTOR PRESENTATION Peter Hoetzinger, Co CEO & President Results through Q4 2022
Slide 2: Forward-Looking Statements, Business Environment & Risk Factors
Forward-Looking Statements, Business Environment & 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 Private
Slide 3: Notes on Presentation
Notes on Presentation COVID-19 UPDATE Since the inception of the COVID-19 pandemic in March 2020, the Company’s casinos have varied their operations based on the governmental health and safety requirements in the jurisdictions in which they are located. The COVID-19 pandemic impacted the Company’s r
Slide 4: 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 5: 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 Racing and On/Off-Track Betting Give online customers a better experience and social excit
Slide 6: 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 7: 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 GGR1 levels materially up versus 2019 $811 $828 $842 $834 $560 $976 across all markets served in the U.S. – Sustainable
Slide 8: Stable Historical Performance of Regional GGR in the U.S.
Stable Historical Performance of Regional GGR in the U.S. Stable growth since 2001 and resilient to macroeconomic changes including oil prices and CPI U.S. Regional GGR ($bn) $50.0 $ 47 $ 39 $ 40 $ 35 $ 37 $40.0 $ 32 $ 34 $ 34 $ 31 $ 30 $ 29 $ 30 $ 31 $ 31 $ 27 $ 29 $ 29 $ 24 $ 24 $ 26 $ 22 $30.0 $2
Slide 9: 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 6,063 892 630 7,585 # of Table Games 220 29 16 265 # of Hotel R
Slide 10: Net Operating Revenue
Net Operating Revenue 2022 by Reportable Segment and Operating Segment (1) (in USD) Canada 17% Calgary Colorado 5% 11% Edmonton 12% West Virginia 26% Poland Poland 21% 21% United States 62% Missouri 25% 1. Excludes the Corporate and Other Reportable Segment. 9
Slide 11: Earnings from Operations
Earnings from Operations 2022 by Reportable Segment and Operating Segment (1) (in USD) Canada 14% Poland Calgary 11% 7% Colorado Edmonton 18% 7% Poland 11% West Virginia 14% United States 75% Missouri 43% 1. Excludes the Corporate and Other Reportable Segment. 10
Slide 12: Net Earnings Attributable to Century Casinos, Inc. Shareholders
Net Earnings Attributable to Century Casinos, Inc. Shareholders 2022 by Reportable Segment and Operating Segment (1) (in USD) Canada 17% Calgary 4% Edmonton 13% Colorado Poland 31% 16% Poland 16% West United States Virginia 67% 6% Missouri 30% 1. Excludes the Corporate and Other Reportable Segment.
Slide 13: Adjusted EBITDA
Adjusted EBITDA (1) 2022 by Reportable Segment and Operating Segment (2) (in USD) Canada 17% Calgary Colorado 8% 15% Poland 11% Edmonton 9% West Poland Virginia 11% 16% United States 72% Missouri 41% 1. Adjusted EBITDA is a non-GAAP financial measure. See Appendix for the definition and reconciliati
Slide 14: CNTY Consolidated Results
CNTY Consolidated Results 2018 – 2022 Quarterly Results (in USD, in millions) Net Operating Revenue 140 111.1 116.6112.6 120 103.1 107.3103.8 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 (1) 35.0 33.1 29.
Slide 15: Income Statement
Income Statement Selected information in USD, in millions except for per share 2022 2021 Change Net Operating Revenue 430.5 388.5 +11% Earnings from Operations 67.6 68.5 -1% Net Earnings Attributable to Century Casinos, Inc. Shareholders 8.0 20.6 -61% Adjusted EBITDA1 103.3 97.9 +6% Basic Earnings p
Slide 16: Balance Sheet and Leverage
Balance Sheet and Leverage As of December 31, 2022 4.8x 3.5x 4.7x 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 Forma Net Debt to Pro Forma Lease
Slide 17: 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 18: 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 19: 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 acquisition Pro 2012 - 2017 2018 - Present Forma Increased Canadian footprint through d
Slide 20: 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 21: U.S. Operations Overview
• Colorado • Missouri U.S. OPERATIONS OVERVIEW • West Virginia
Slide 22: 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 23: 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 4.8 12.5 12.1 12.0 11.6 4.4 11.3 11.2 10.3 10.4 4.0 3.9 10.0 9.4 9.5 3.6 3.4 3.3 3.1 8.0 3.0 6.7 6.0 2.0 4.0 2.0 1.0 0.8 2.0 0.3 0.0 0.0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2020 2021
Slide 24: 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 25: 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 29.0 28.3 26.8 14.0 13.4 12.8 13.0 12.8 24.5 24.6 25.0 23.9 12.0 21.6 10.6 10.4 10.0 9.7 20.0 9.2 8.0 15.0 6.1 6.0 9.6 10.0 4.0 2.3 5.0 2.0 0.
Slide 26: Recent Developments – Century Casino Caruthersville
Recent Developments – Century Casino Caruthersville On October 26, 2022, the Missouri Gaming Commission approved the relocation of the casino at Century Casino Caruthersville Low water (“Caruthersville”) from the riverboat and the levels and barge to a land-based pavilion until the new access to the
Slide 27: 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 28: West Virginia Region Results
West Virginia Region Results Mountaineer Casino, Racetrack & Resort Net Operating Revenue Adjusted EBITDA 1 35.0 7.0 31.7 6.2 30.6 30.4 5.9 29.7 6.0 30.0 28.7 28.4 5.3 26.3 26.5 4.9 4.8 25.1 5.0 24.5 4.5 25.0 23.9 4.3 4.0 3.6 3.5 20.0 3.3 3.0 15.0 12.2 2.0 1.8 10.0 1.0 5.0 0.0 -0.5 0.0 -1.0 Q1 Q2 Q3
Slide 29: Pending Acquisition – Reno-Sparks, Nevada
PENDING ACQUISITION RENO-SPARKS, NEVADA
Slide 30: Transaction Overview
Transaction Overview In February 2022, Century announced a definitive agreement with Marnell Gaming, LLC to acquire 100% of OpCo and 50% of PropCo for a total of $195mm – Represents a blended purchase price multiple of ~7.8x LTM 12/31/2021 Adj. EBITDA and is expected to close within 12-15 months p
Slide 31: 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 32: 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 33: Pending Acquisition – Flintstone, Maryland
PENDING ACQUISITION FLINTSTONE, MARYLAND
Slide 34: 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 in Q2 2023 pending receipt of regul
Slide 35: 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 suits new sports lounge renovation and upgrade of F&B offerings
Slide 36: Rocky Gap, MD Competitive Landscape
Rocky Gap, MD Competitive Landscape 35
Slide 37: Additional Growth Drivers
• Cape Girardeau Hotel • Caruthersville Land-based ADDITIONAL GROWTH DRIVERS
Slide 38: 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 39: Missouri Projects – Caruthersville Temporary Land-Based 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 40: Missouri Projects – Caruthersville Permanent Land-Based 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 41: Thank You!
THANK YOU !
Slide 42: Appendix
APPENDIX
Slide 43: 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 44: 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 45: Non-GAAP Financial Measures
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 46: Non-GAAP Financial Measures
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 47: Reconciliation of Adjusted EBITDA
Appendix Non-GAAP Financial Measures – Reconciliation of Adjusted EBITDA Century Casinos, Inc. For the year ended December 31, in USD, in thousands 2022 2021 Net Operating Revenue $ 430,529 $ 388,506 Net earnings attributable to Century Casinos, Inc. shareholders 7,976 20,622 Interest expense (incom
Slide 48: Reconciliation of Adjusted EBITDA
Appendix Non-GAAP Financial Measures – Reconciliation of Adjusted EBITDA For the year ended December 31, 2022 Total United in USD, in thousands Colorado West Virginia Missouri States Net earnings attributable to Century Casinos, Inc. $ 11,460 $ 2,184 $ 11,115 $ 24,759 shareholders Interest (income)
Slide 49: Reconciliation of Adjusted EBITDA
Appendix Non-GAAP Financial Measures – Reconciliation of Adjusted EBITDA Nugget Casino Resort1 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 11,328
Slide 50: Reconciliation of Quarterly Adjusted EBITDA
Appendix Non-GAAP Financial Measures – Reconciliation of Quarterly Adjusted EBITDA 2018 2019 2020 2021 2022 in USD, in millions Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Net earnings (loss) attributable to Century Casinos, Inc. shareholders $ 0.9 $ 0.3 $ 1.6 $ 0.5 $ 1.1 $ (0.6) $ 0
Slide 51: Reconciliation of Adjusted EBITDA and Adjusted EBITDA less Lease Payments
Appendix Non-GAAP Financial Measures – Reconciliation of Adjusted EBITDA and Adjusted EBITDA less Lease Payments (in thousands) Year Ended Year Ended December 31, December 31, in USD, in thousands 2022 2021 Net earnings attributable to Century Casinos, Inc. shareholders $ 7,976 $ 20,622 Interest exp
Slide 52: Calculation of Lease Adjusted Net Leverage and Lease Adjusted Leverage
Appendix Non-GAAP Financial Measures – Calculation of Lease Adjusted Net Leverage and Lease Adjusted Leverage December 31, Nugget Rocky Gap December 31, 2022 Acquisition Acquisition 2022 (1) (2) in dollars, in millions Current PENDING PENDING PRO FORMA Cash $ 101.8 $ - $ (56.1) $ 45.7 Total Principa
Slide 53: Reconciliation of Net Debt
Appendix Non-GAAP Financial Measures – Reconciliation of Net Debt Amounts in thousands December 31, 2022 December 31, 2021 Total long-term debt, including current portion $ 349,580 $ 181,484 Deferred financing costs 16,844 7,695 Total principal $ 366,424 $ 189,179 Less: Cash and cash equivalents $ 1