Century Casinos, Inc. · NASDAQ:CNTY
Century Casinos — Q1 2022 Earnings Presentation
42 slides from Century Casinos's earnings presentation, 2022
Slide 1: Financial Results Q1 2022
FINANCIAL RESULTS Q1 2022 0
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 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 for the definition and reconciliatio
Slide 4: New Developments
New Developments COVID-19 UPDATE The COVID-19 pandemic impacted the Company’s results of operations in the first half of 2021 because of closures at the Company’s Canada and Poland properties during this period. The Company’s casinos have varied their operations based on the governmental health and
Slide 5: Financial Results
FINANCIAL RESULTS 4
Slide 6: Net Operating Revenue
Net Operating Revenue Q1 2022 by Reportable Segment and Operating Segment (1) (in USD) Canada 16% Calgary Colorado 5% 10% Edmonton 11% West Virginia 25% Poland Poland 21% 21% United States 63% Missouri 28% 1. Excludes the Corporate and Other Reportable Segment. 5
Slide 7: Earnings from Operations
Earnings from Operations Q1 2022 by Reportable Segment and Operating Segment (1) (in USD) Canada 3% Poland 11% Edmonton Calgary Colorado 5% -2% 15% Poland 11% West Virginia 14% United States 86% Missouri 57% 1. Excludes the Corporate and Other Reportable Segment. 6
Slide 8: Net Earnings (Loss) Attributable to Century Casinos, Inc. Shareholders
Net Earnings (Loss) Attributable to Century Casinos, Inc. Shareholders Q1 2022 by Reportable Segment and Operating Segment (1) (in USD) Canada -7% Poland 11% Calgary -12% Edmonton Colorado 5% 32% Poland 11% West Virginia 6% United States 96% Missouri 58% 1. Excludes the Corporate and Other Reportabl
Slide 9: Adjusted EBITDA
Adjusted EBITDA (1) Q1 2022 by Reportable Segment and Operating Segment (2) (in USD) Canada 15% Poland Calgary Colorado 10% 8% 12% Edmonton 7% West Poland Virginia 10% 16% United States 75% Missouri 47% 1. Adjusted EBITDA is a non-GAAP financial measure. See Appendix for the definition and reconcili
Slide 10: Diversified Gaming Company with Focus on Local and Regional Markets
Diversified Gaming Company with Focus on Local and Regional Markets # of Properties 17 Properties (1) 1 Property 18 Properties # of Slot Machines 6,291 859 7,150 # of Table Games 235 29 264 # of Hotel Rooms 430 1,382 1,812 Poland Poland 10% 8% Q1 2022 Geographic Canada Canada 15% Concentration by 13
Slide 11: Net Operating Revenue per Quarter
Net Operating Revenue per Quarter In USD (in millions) 140 120 116.6 107.3 103.1 100 95.7 92.2 87.7 84.8 80 72.4 67.2 60 52.4 52.9 45.6 43.6 45.1 40.6 39.6 40 36.1 20 0 Q1 Q2 Q3 Q4 2018 2019 2020 2021 2022 10
Slide 12: Balance Sheet
Balance Sheet Selected information in USD In millions (except BVPS) March 31, 2022 December 31, 2021 Change Total Assets 704.4 703.4 — Total Debt, net of Deferred Financing Costs (1) 181.0 181.5 — Book Value per Share(2) 4.85 4.78 1% Net Debt(3) 71.1 81.4 As of April 1, 2022, after giving effect to
Slide 13: Income Statement
Income Statement Selected information in USD In millions Q1 2022 Q1 2021 Change Net Operating Revenue 103.1 72.4 42% Earnings from Operations 13.0 8.2 58% Net Earnings (Loss) Attributable to Century Casinos, Inc. Shareholders 0.2 (1.4) 115% Adjusted EBITDA(1) 23.8 14.7 62% Basic and Diluted Earnings
Slide 14: Debt and Net Debt to Adjusted EBITDA
Debt and Net Debt to Adjusted EBITDA (1) As of April 1, 2022(2) and for the years ended December 31, 2014-2021 (in USD) 9.0 7.9x 8.0 7.0 6.8x 6.0 5.6x 5.1x 5.0 4.6x 4.0 3.5x 3.0x 3.0 2.5x 2.5x 2.2x 2.2x 2.0 1.6x 1.1x 1.1x 1.0 0.7x 0.6x 0.3x 0.0 -1.0 -0.7x -2.0 2014 2015 2016 2017 2018 2019 2020 2021
Slide 15: United States Highlights
United States Highlights Selected information in USD In millions Q1 2022 Q1 2021 Change Net Operating Revenue 65.2 64.4 1% Operating Costs and Expenses 49.7 46.8 6% Earnings from Operations 15.5 17.5 (11%) Net Earnings Attributable to Century Casinos, Inc. 8.5 10.6 (20%) Adjusted EBITDA(1) 20.3 22.1
Slide 16: Colorado Highlights
Colorado Highlights Selected information in USD, in millions Key Stats(1) Central City Net Operating Revenue 14.0 12.5 12.1 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 Casino Sq. Footage 22,640 0.0 Slot Machines 441 Q1 Q2 Q3 Q4 Tables 8 2020 2021 2022 Hotel Rooms 26 Cripple Creek Adjust
Slide 17: Missouri Highlights
Missouri Highlights Selected information in USD, in millions (1) Key Stats Cape Girardeau Net Operating Revenue 40.0 34.1 35.0 31.0 28.7 29.7 28.3 30.0 23.9 24.5 25.0 21.6 20.0 15.0 9.6 10.0 5.0 Casino Sq. Footage 41,530 0.0 Slot Machines 848 Q1 Q2 Q3 Q4 Tables 23 2020 2021 2022 Hotel Rooms N/A Caru
Slide 18: West Virginia Highlights
West Virginia Highlights Selected information in USD, in millions (1) Key Stats Mountaineer Net Operating Revenue 35.0 31.7 30.6 28.4 28.7 30.0 25.1 23.9 26.3 24.5 25.0 20.0 15.0 12.2 10.0 5.0 0.0 Casino Sq. Footage 72,380 Q1 Q2 Q3 Q4 Slot Machines 1,104 2020 2021 2022 Tables 35 Hotel Rooms 357 Adju
Slide 19: Canada Highlights
Canada Highlights Selected information in CAD In millions Q1 2022 Q1 2021 Change Net Operating Revenue 20.3 2.5 698% Operating Costs and Expenses 19.5 7.4 165% Earnings (Loss) from Operations 0.8 (4.8) 116% Net Earnings (Loss) Attributable to Century Casinos, Inc. Shareholders 0.2 (3.3) 107% Adjuste
Slide 20: Edmonton Highlights
Edmonton Highlights Selected information in CAD, in millions Key Stats(1) Edmonton Net Operating Revenue 20.0 17.8 18.0 16.0 13.6 13.1 13.5 13.5 14.0 12.0 10.2 10.0 Casino Sq. Footage 32,960 8.0 5.1 Slot / VLT Machines (2) 840 6.0 3.9 Tables 23 4.0 1.3 Hotel Rooms 26 2.0 0.0 St. Albert Q1 Q2 Q3 Q4 2
Slide 21: Calgary Highlights
Calgary Highlights (1) Selected information in CAD, in millions Key Stats(2) Net Operating Revenue Century Downs 10.0 9.1 9.0 8.5 8.6 8.0 7.1 6.7 6.4 7.0 6.0 5.0 4.0 3.1 3.0 2.6 2.0 1.2 1.0 0.0 Q1 Q2 Q3 Q4 Casino Sq. Footage 25,500 Slot / VLT Machines 673 2020 2021 2022 Adjusted EBITDA (3) 5.0 4.3 4
Slide 22: Poland Highlights
Poland Highlights Selected information in PLN In millions Q1 2022 Q1 2021 Change Net Operating Revenue 90.2 22.4 303% Operating Costs and Expenses 81.9 35.0 134% Earnings (Loss) from Operations 8.3 (12.6) 165% Net Earnings (Loss) Attributable to Century Casinos, Inc. Shareholders 4.2 (6.9) 162% Adju
Slide 23: Poland Highlights
Poland Highlights Selected information in PLN, in millions Key Stats(1) Casinos Poland Net Operating Revenue 100.0 90.2 90.7 90.0 81.9 80.0 66.6 70.0 62.1 60.0 51.0 50.0 40.0 29.6 32.5 30.0 22.4 20.0 10.0 0.0 Casino Sq. Footage 85,560 Q1 Q2 Q3 Q4 Slot Machines 526 2020 2021 2022 Tables 121 # of Casi
Slide 24: Corporate and Other Highlights
Corporate and Other Highlights Selected information in USD In millions Q1 2022 Q1 2021 Change Net Operating Revenue 0.0 0.1 (74%) Operating Costs and Expenses 5.1 2.2 128% Loss from Operations (5.0) (2.1) (140%) Net Loss Attributable to Century Casinos, Inc. Shareholders (8.5) (6.7) (28%) Adjusted E
Slide 25: Projects
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Slide 26: Nugget Casino Resort Property Overview
Nugget Casino Resort Property Overview Key Highlights Property Stats The newly remodeled Nugget Casino is conveniently located on route I-80 with easy access from the airport. Owned Land Acreage Casino Sq. Ft. The full-service resort boasts a large gaming floor, two 29 50,200 hotel towers, a con
Slide 27: Strategic Rationale and Investment Highlights
Strategic Rationale and Investment Highlights The Nugget Reno Offers Immediate Synergies to a Growing Century Platform Offers Century an entry into the state of Nevada and a high profile, top 15 US gaming market(1) that Expand Century’s has a revitalized and growing economic base US Footprint and
Slide 28: Century is Well-Positioned for the Next Stage of Growth
Century is Well-Positioned for the Next Stage of Growth Century’s operating expertise has provided opportunities to make small yet meaningful changes that have long-term impact. Recently Completed or in-Process Organic Growth Projects Truing Up mobile app to enhance customer experience, build loya
Slide 29: Century is Well-Positioned for the Next Stage of Growth
Century is Well-Positioned for the Next Stage of Growth Missouri Projects Caruthersville Century recently purchased the neighboring two-story hotel. — The new Century hotel will be the only hotel in downtown Caruthersville Two-Story Caruthersville. Hotel Rendering The project is scheduled to ope
Slide 30: Appendix
APPENDIX 29
Slide 31: Abbreviations of Century Casinos 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 32: 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 33: 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 34: Non-GAAP Financial Measures
Appendix 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 valuable m
Slide 35: Reconciliation of Adjusted EBITDA
Appendix Non-GAAP Financial Measures – Reconciliation of Adjusted EBITDA Century Casinos, Inc. For the three months ended March 31, in USD, in thousands 2022 2021 Net Operating Revenue $ 103,103 $ 72,415 Net earnings (loss) attributable to Century Casinos, Inc. shareholders 218 (1,419) Interest expe
Slide 36: Reconciliation of Adjusted EBITDA: United States
Appendix Non-GAAP Financial Measures – Reconciliation of Adjusted EBITDA United States For the three months ended March 31, 2022 Total United in USD, in thousands Colorado West Virginia Missouri States Net Operating Revenue $ 10,328 $ 26,262 $ 28,658 $ 65,248 Net income attributable to Century Casin
Slide 37: Reconciliation of Adjusted EBITDA: Canada
Appendix Non-GAAP Financial Measures – Reconciliation of Adjusted EBITDA Canada For the three months ended March 31, 2022 in CAD, in thousands Edmonton Calgary Total Canada Net Operating Revenue $ 13,600 $ 6,670 $ 20,270 Net income (loss) attributable to Century Casinos, Inc. shareholders 1,618 (1,4
Slide 38: Reconciliation of Adjusted EBITDA: Poland
Appendix Non-GAAP Financial Measures – Reconciliation of Adjusted EBITDA Poland For the three months ended March 31, in PLN, in thousands 2022 2021 Net Operating Revenue PLN 90,166 PLN 22,354 Net income (loss) attributable to Century Casinos, Inc. shareholders 4,233 (6,872) Interest (income) expense
Slide 39: Reconciliation of Adjusted EBITDA: Corporate and Other
Appendix Non-GAAP Financial Measures – Reconciliation of Adjusted EBITDA Corporate and Other For the three months ended March 31, in USD, in thousands 2022 2021 Net Operating Revenue $ 32 $ 123 Net loss attributable to Century Casinos, Inc. shareholders (8,531) (6,666) Interest expense (income), net
Slide 40: Reconciliation of Adjusted EBITDA: Nugget Casino Resort
Appendix Non-GAAP Financial Measures – Reconciliation of Adjusted EBITDA Nugget Casino Resort For the three months ended March 31, in USD, in thousands 2022 Net Operating Revenue $ 20,639 Net income 688 Interest expense (income), net 190 Depreciation and amortization 3,530 Management fees 250 Rent e
Slide 41: Reconciliation of Adjusted EBITDA and Adjusted EBITDA less Cash Payments on Master Lease
Appendix Non-GAAP Financial Measures – Reconciliation of Adjusted EBITDA and Adjusted EBITDA less Cash Payments on Master Lease Financing Obligation (in thousands) Trailing 12-Month Trailing 12-Month December 31, in USD Q2 2021 Q3 2021 Q4 2021 Q1 2022 March 31, 2022 2021 Net earnings attributable to
Slide 42: Reconciliation of Net Debt
Appendix Non-GAAP Financial Measures – Reconciliation of Net Debt Effects of Goldman Credit Agreement and Amounts in thousands March 31, 2022 PropCo Acquisition April 1, 2022 (1) December 31, 2021 Total long-term debt, including current portion $ 180,995 $ 191,129 $ 372,124 $ 181,484 Deferred financ