Century Casinos, Inc. · NASDAQ:CNTY
Century Casinos — Q1 2017 Earnings Presentation
32 slides from Century Casinos's earnings presentation, 2017
Slide 1: Century Casinos Financial Results Q1 2017
CENTURY CASINOS Financial Results Q1 2017 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: Q1 2017 Net Operating Revenue by Reportable Segment and Operating Segment
Q1 2017 Net Operating Revenue by Reportable Segment and Operating Segment (in USD) Excluding Corporate and Other Operating Segment Ships & Other 3% Canada 36% Poland 40% Ships & Other CRA 3% 14% CSA 5% CAL CPL 5% 40% CDR 10% CBS 2% United States CTL 21% CRC 8% 13% 3
Slide 4: Q1 2017 Earnings from Operations by Reportable Segment and Operating Segment
Q1 2017 Earnings from Operations by Reportable Segment and Operating Segment (in USD) Excluding Corporate and Other Operating Segment Ships & Other 5% Poland 29% Canada 48% Ships & Other 5% CRA 22% CPL 29% CSA 7% CAL 0% United States CRC CDR 18% 7% CTL CBS 19% 11% 0% 4
Slide 5: Q1 2017 Net Income (Loss) Attributable to Shareholders by Segment
Q1 2017 Net Income (Loss) Attributable to Century Casinos, Inc. Shareholders by Reportable Segment and Operating Segment (in USD) Excluding Corporate and Other Operating Segment Ships & Other 7% Canada 42% Poland 31% Ships & Other 7% CRA 26% CPL 31% CSA 2% CAL 0% CDR 14% United States CRC CTL CBS 20
Slide 6: Q1 2017 Adjusted EBITDA by Reportable Segment and Operating Segment
Q1 2017 Adjusted EBITDA* by Reportable Segment and Operating Segment (in USD) Excluding Corporate and Other Operating Segment Ships & Other 5% Poland 28% Canada 46% Ships & Other 5% CRA 19% CPL 28% CSA 6% CAL 2% United States CRC CDR 21% 9% 19% CTL CBS 12% 0% 6
Slide 7: Net Operating Revenue per Quarter (in USD)
Net Operating Revenue per Quarter (in USD) 40.0 37.9 36.4 36.3 35.2 34.5 35.0 33.2 33.5 31.6 31.3 31.9 30.4 29.1 28.8 28.1 29.4 30.0 28.3 25.0 20.0 18.0 15.0 10.0 5.0 0.0 Q1 Q2 Q3 Q4 2013 2014 2015 2016 2017 7
Slide 8: Balance Sheet
Balance Sheet (Selected Information in USD) In millions (except BVPS) March 31, 2017 December 31, 2016 Change Total Assets 218.1 217.8 0% Book Value per Share* 5.55 5.41 3% Net Debt** 15.2 17.2 *Book Value per Share is defined as total Century Casinos, Inc. shareholders’ equity divided by outstandin
Slide 9: Income Statement
Income Statement (Selected Information as of March 31, 2017 in USD) In millions (except EPS) Q1 2017 Q1 2016 Change Net Operating Revenue 36.4 33.2 10% Earnings from Operations 4.5 4.1 10% Net Earnings Attributable to Century Casinos, Inc. Shareholders 2.2 2.3 (5%) Adjusted EBITDA* 6.7 6.3 6% Basic
Slide 10: Constant Currency Results (in USD)
Constant Currency Results (in USD) In millions Q1 2017 Q1 2016 Change Net Operating Revenue as reported (GAAP) 36.4 33.2 10% Foreign currency impact vs. 2016 (0.1) Net Operating Revenue constant currency (non- GAAP)* 36.3 33.2 9% Earnings from Operations as reported (GAAP) 4.5 4.1 10% Foreign curren
Slide 11: Constant Currency Results (in USD)
Constant Currency Results (in USD) In millions Q1 2017 Q1 2016 Change Net Earnings Attributable to Century Casinos, Inc. Shareholders as reported (GAAP) 2.2 2.3 (5%) Foreign currency impact vs. 2016 (0.1) Net Earnings Attributable to Century Casinos, Inc. Shareholders constant currency (non-GAAP)* 2
Slide 12: Debt to Adjusted EBITDA (in USD)
Debt to Adjusted EBITDA* (in USD) As of March 31, 2017 4x 3.0x 3x 2.9x 2.7x 2.2x 2.1x 2.0x 2x 1.7x 1x 0.8x 0.3x 0x 2008 2009 2010 2011 2012 2013 2014 2015 2016 *Debt to Adjusted EBITDA is calculated by dividing the Company’s trailing twelve-month Adjusted EBITDA by Debt. Adjusted EBITDA is a non-GAA
Slide 13: Q1 Highlights – Canada
Q1 Highlights – CANADA (Selected Information in CAD) In millions Q1 2017 Q1 2016 Change Net Operating Revenue 17.4 17.7 (2%) Operating Costs and Expenses 13.4 13.0 3% Earnings from Operations 4.0 4.8 (17%) Net Earnings Attributable to Century Casinos, Inc. Shareholders 2.0 2.8 (29%) Adjusted EBITDA*
Slide 14: Q1 Highlights – Canada: Century Resorts Alberta
Q1 Highlights – CANADA (Selected Information in CAD) CENTURY RESORTS ALBERTA In millions Q1 2017 Q1 2016 Change Net Operating Revenue 6.7 7.7 (13%) Operating Costs and Expenses 4.8 5.1 (4%) Earnings from Operations 1.9 2.6 (30%) Net Earnings Attributable to Century Casinos, Inc. Shareholders 1.2 1.8
Slide 15: Q1 Highlights – Canada: Century Casino St. Albert
Q1 Highlights – CANADA (Selected Information in CAD) CENTURY CASINO ST. ALBERT In millions Q1 2017 Q1 2016 Change Net Operating Revenue 2.6 0.0 100% Operating Costs and Expenses 2.1 0.0 100% Earnings from Operations 0.6 0.0 100% Net Earnings Attributable to Century Casinos, Inc. Shareholders 0.1 0.0
Slide 16: Q1 Highlights – Canada: Century Casino Calgary
Q1 Highlights – CANADA (Selected Information in CAD) CENTURY CASINO CALGARY In millions Q1 2017 Q1 2016 Change Net Operating Revenue 2.5 2.9 (12%) Operating Costs and Expenses 2.5 2.4 3% Earnings from Operations 0.0 0.4 (96%) Net Earnings Attributable to Century Casinos, Inc. Shareholders 0.0 0.4 (9
Slide 17: Q1 Highlights – Canada: Century Downs Racetrack and Casino
Q1 Highlights – CANADA (Selected Information in CAD) CENTURY DOWNS RACETRACK AND CASINO In millions Q1 2017 Q1 2016 Change Net Operating Revenue 4.8 4.9 (2%) Operating Costs and Expenses 3.2 3.2 1% Earnings from Operations 1.6 1.7 (7%) Net Earnings Attributable to Century Casinos, Inc. Shareholders
Slide 18: Q1 Highlights – United States
Q1 Highlights – UNITED STATES (Selected Information in USD) In millions Q1 2017 Q1 2016 Change Net Operating Revenue 7.5 7.1 6% Operating Costs and Expenses 6.3 6.2 2% Earnings from Operations 1.2 0.9 32% Net Earnings Attributable to Century Casinos, Inc. Shareholders 0.7 0.5 32% Adjusted EBITDA* 1.
Slide 19: Q1 Highlights – United States: Central City
Q1 Highlights – UNITED STATES (Selected Information in USD) CENTRAL CITY In millions Q1 2017 Q1 2016 Change Net Operating Revenue 4.6 4.2 8% Operating Costs and Expenses 3.9 3.7 5% Earnings from Operations 0.7 0.5 33% Net Earnings Attributable to Century Casinos, Inc. Shareholders 0.4 0.3 33% Adjust
Slide 20: Q1 Highlights – United States: Cripple Creek
Q1 Highlights – UNITED STATES (Selected Information in USD) CRIPPLE CREEK In millions Q1 2017 Q1 2016 Change Net Operating Revenue 2.9 2.8 3% Operating Costs and Expenses 2.5 2.5 (1%) Earnings from Operations 0.4 0.3 31% Net Earnings Attributable to Century Casinos, Inc. Shareholders 0.3 0.2 30% Adj
Slide 21: Q1 Highlights – Poland
Q1 Highlights – POLAND (Selected Information in PLN) In millions Q1 2017 Q1 2016 Change Net Operating Revenue 59.0 48.4 22% Operating Costs and Expenses 51.7 44.2 17% Earnings from Operations 7.3 4.2 72% Net Earnings Attributable to Century Casinos, Inc. Shareholders 4.0 2.2 81% Adjusted EBITDA* 9.6
Slide 22: Q1 Highlights – Corporate and Other
Q1 Highlights – CORPORATE AND OTHER (Selected Information in USD) In millions Q1 2017 Q1 2016 Change Net Operating Revenue 1.2 0.9 34% Operating Costs and Expenses 2.7 2.3 19% Earnings from Operations (1.5) (1.4) (9%) Net Earnings Attributable to Century Casinos, Inc. Shareholders (1.1) (1.0) (15%)
Slide 23: Q1 Highlights – Corporate and Other: Cruise Ships and Other
Q1 Highlights – CORPORATE AND OTHER (Selected Information in USD) CRUISE SHIPS AND OTHER In millions Q1 2017 Q1 2016 Change Net Operating Revenue 1.2 0.9 34% Operating Costs and Expenses 0.9 0.5 76% Earnings from Operations 0.3 0.4 (21%) Net Earnings Attributable to Century Casinos, Inc. Shareholder
Slide 24: Q1 Highlights – Additional Projects Under Development
Q1 Highlights – ADDITIONAL PROJECTS UNDER DEVELOPMENT Century Mile In September 2016, the Company was selected as the successful applicant by Horse Racing Alberta to own, build and operate a horse racing facility in the Edmonton market area, which the Company will operate as Century Mile. Century Mi
Slide 25: Appendix A – Non-GAAP Financial Measures
Appendix A – NON-GAAP FINANCIAL MEASURES The Company supplements its condensed consolidated financial statements prepared in accordance with U.S. generally accepted accounting principles (“US GAAP”) by using the following non-GAAP financial measures, which management believes are useful in properly
Slide 26: 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, amortization, non- controlling interest (earnings) losses and transactio
Slide 27: 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 revenue compared to prior period revenue using the prior period’s for
Slide 28: Appendix A – Reconciliation – Canada
Appendix A – NON-GAAP FINANCIAL MEASURES Reconciliation of Adjusted EBITDA (in thousands) - CANADA For the three months ended March 31, 2017 in CAD CRA CSA CAL CDR CBS Total Canada Net operating revenue $ 6,697 $ 2,647 $ 2,513 $ 4,765 $ 796 $ 17,418 Net earnings (loss) attributable to Century Casino
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, 2017 Total United in USD Central City Cripple Creek States Net operating revenue $ 4,595 $ 2,905 $ 7,500 Net earnings (loss) attributable to Century Casinos,
Slide 30: 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 2017 2016 Net operating revenue PLN 58,956 PLN 48,397 Net earnings (loss) attributable to Century Casinos, Inc. shareholders 3,998 2,209 Interest expense (in
Slide 31: 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, 2017 Cruise Ships and Total Corporate in USD Other Corporate Other Other Net operating revenue $ 1,192 $ 0 $ 1,192 Net earnings (loss) attributable to
Slide 32: Appendix A – Reconciliation of Net Debt
Appendix A – NON-GAAP FINANCIAL MEASURES Reconciliation of Net Debt (in thousands) March 31, 2017 December 31, 2016 Amounts in thousands Total long-term debt, including current portion $ 54,608 $ 55,609 Deferred financing costs 341 412 Total principal $ 54,949 $ 56,021 Less: cash and cash equivalent