Century Casinos, Inc. · NASDAQ:CNTY
Century Casinos — Investor Presentation (September 2022)
48 slides from Century Casinos's investor presentation, September 2022
Slide 1: Investor Presentation
INVESTOR PRESENTATION Peter Hoetzinger, Co CEO & President September 2022
Slide 2: 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 3: Multi-Channel North American Gaming Company
Multi-Channel North American Gaming Company Land-based Casinos (USA and Canada) Reno, Nevada Use land-based casinos to get more online customers. The online world and the land- based casino world co-exist successfully. Western Maryland Racinos and On/Off-Track Betting Give online customers a better
Slide 4: 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 5: 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 GGR levels materially up versus 2019 $811 $828 $842 $834 $976 $560 across all markets served in the U.S. – Sustainable f
Slide 6: Stable Historical Performance of Regional GGR in the U.S.
Stable Historical Performance of Regional GGR in the U.S. Stable growth since 2001 and resilient to macroeconomic changes including oil prices and CPI U.S. Regional GGR ($bn) $50.0 $ 47 $ 39 $ 40 $ 35 $ 37 $40.0 $ 32 $ 34 $ 34 $ 31 $ 30 $ 29 $ 30 $ 31 $ 31 $ 27 $ 29 $ 29 $30.0 $ 24 $ 24 $ 26 $ 22 $2
Slide 7: U.S. Operations Overview
U.S. OPERATIONS OVERVIEW
Slide 8: 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 412 § Voted Denver’s Best Casino sinc
Slide 9: Colorado Region Results
Colorado Region Results Central City and Cripple Creek Net Operating Revenue 14,0 12,5 12,1 11,6 11,3 12,0 10,3 10,4 10,0 9,4 9,5 8,0 6,7 6,0 4,0 2,0 2,0 0,0 Q1 Q2 Q3 Q4 2020 2021 2022 Adjusted EBITDA 6,0 4,8 4,8 5,0 5,0 4,4 3,9 4,0 3,4 3,1 3,3 3,0 2,0 0,8 1,0 0,3 0,0 Q1 Q2 Q3 Q4 2020 2021 2022 8
Slide 10: Missouri Region Market Overview and Asset Summary
Missouri Region Market Overview and Asset Summary Cape Girardeau and Caruthersville Asset Property Highlights Key Stats1 § Cape Girardeau 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 Mac
Slide 11: Missouri Region Results
Missouri Region Results Cape Girardeau and Caruthersville Net Operating Revenue 40,0 34,1 35,0 31,0 28,7 29,0 29,7 28,3 30,0 23,9 24,5 25,0 21,6 20,0 15,0 9,6 10,0 5,0 0,0 Q1 Q2 Q3 Q4 2020 2021 2022 Adjusted EBITDA 20,0 18,0 17,2 15,4 16,0 12,8 13,0 13,4 12,8 14,0 12,0 10,4 9,7 10,0 8,0 6,1 6,0 4,0
Slide 12: West Virginia Region Market Overview and Asset Summary
West Virginia Region Market Overview and Asset Summary Mountaineer Casino 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 5,000-seat convention
Slide 13: West Virginia Region Results
West Virginia Region Results Mountaineer Casino Net Operating Revenue 35,0 31,7 30,6 29,7 30,0 28,4 28,7 25,1 26,3 23,9 24,5 25,0 20,0 15,0 12,2 10,0 5,0 0,0 Q1 Q2 Q3 Q4 2020 2021 2022 Adjusted EBITDA 7,0 6,2 5,9 6,0 4,9 4,8 5,0 4,3 4,5 4,0 3,6 3,3 3,0 1,8 2,0 1,0 0,0 -1,0 -0,5 Q1 Q2 Q3 Q4 2020 2021
Slide 14: The Nugget Casino Resort, NV
THE NUGGET CASINO RESORT, NV (PENDING ACQUISITION)
Slide 15: Transaction Overview
Transaction Overview § In February 2022, Century announced a definitive agreement with Marnell Gaming, LLC to acquire 100% of Nugget OpCo and 50% of Nugget 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
Slide 16: 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, two 29 50,200 hotel towers, a conv
Slide 17: Reno-Sparks, NV Competitive Landscape
Reno-Sparks, NV Competitive Landscape 16
Slide 18: Top Reasons Why We Love the Nugget
Top 10 Reasons Why We Love the Nugget 1 EXISTING OPERATION 2 GREAT LOCATION ON I-80 Long operating history Unparalleled exposure to No development risk, no construction delays 260,000 cars daily at nearby intersection 3 CONVENTION FACILITY 4 CAPITAL IMPROVEMENTS Largest convention facility of any Re
Slide 19: Reno-Sparks Developments Driving Significant Untapped Potential
Reno-Sparks Developments Driving Significant Untapped Potential in the Current Market Area Highlights Reno-Sparks Average Per Room Per Day Statistics § Reno, known as the “Biggest Little City in the World” is famous for its casinos, but is also known as a $215 $222 destination for outdoor recreation
Slide 20: Continued Growth of Reno-Sparks Economy
Continued Growth of Reno-Sparks Economy Reno-Sparks Unemployment Rate 25.0 % 20.0 % 15.0 % 10.0 % 5.0 % 2.9 % 0.0 % 2016 2017 2018 2019 2020 2021 Washoe County Population Forecast Washoe County Personal Income Per Capita 3.94% C AGR: R: 1.04% ’21-’26 $ 87,751 ’21-’26 CAG $ 84,352 559,373 $ 81,082 55
Slide 21: Rocky Gap Casino Resort, MD
ROCKY GAP CASINO RESORT, MD (PENDING ACQUISITION OF THE OPERATIONS)
Slide 22: 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 within 12 months pending receipt of
Slide 23: Rocky Gap Casino Resort
Rocky Gap Casino Resort § Only Casino Resort in Western Maryland, with 10 million + Adults within in 100-mile radius § 198 hotel rooms § 630 slot machines § 16 table games § $10mm of property upgrades since 2018 q remodeled rooms and suits q new sports lounge q renovation and upgrade of F&B offering
Slide 24: Rocky Gap, MD Competitive Landscape
Rocky Gap, MD Competitive Landscape 23
Slide 25: Superior Product Offering to Competition
Superior Product Offering to Competition CENTURY CASINOS Pending Acquisition 24
Slide 26: Maryland Gaming Revenue
Maryland Gaming Revenue A The Video Lottery Facility Location Commission awarded licenses to six land-based casinos, the latest of which opened in 2016 Maryland Gross Gaming Revenue (1) (Sin millions) $1,994 $1,746 $1,757 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 LTM Apr'22 ©) CovI
Slide 27: Further Growth Drivers
FURTHER GROWTH DRIVERS
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 § Partnerships with established iGaming and sports betting operato
Slide 29: Century is Well-Positioned for the Next Stage of Growth: Missouri Projects
Century is Well-Positioned for the Next Stage of Growth Missouri Projects Caruthersville § Century purchased the neighboring two-story hotel and plans extensive renovations Caruthersville – The new Century hotel will be the only hotel in Non-Floating Facility downtown Caruthersville Rendering – The
Slide 30: Key Financials
KEY FINANCIALS
Slide 31: CNTY Consolidated Results
CNTY Consolidated Results 2018 – 2022 Quarterly Net Operating Revenue 140,0 111,1 116,6 120,0 103,1 107,3 92,2 95,7 100,0 87,7 84,8 80,0 72,4 67,2 60,0 52,4 52,9 40,6 45,6 39,6 36,1 43,6 45,1 40,0 20,0 0,0 Q1 Q2 Q3 Q4 2018 2019 2020 2021 2022 Adjusted EBITDA 35,0 33,1 29,8 30,0 25,2 23,8 24,9 25,0 2
Slide 32: Pro Forma Overview
Pro Forma Overview Pending Pending Pro Forma acquisition in acquisition in Reno/Sparks, Maryland Nevada # of Properties 17 Properties 1 Property 1 Property 19 Properties # of Slot Machines 6,179 859 630 7,668 # of Table Games 234 29 16 279 # of Hotel Rooms 430 1,382 198 2,010 Canada Canada 9% 6% Pol
Slide 33: Proven Track Record of Consistent EBITDA Stability
Century Has a Proven Track Record of Consistent EBITDA Stability and is Poised for Future Growth Decade plus of steady Adj. EBITDA growth with attractive opportunities to accelerate growth with new acquisition Pro 2010 - 2017 2018 - Present Forma1 ü Increased Canadian footprint through developments
Slide 34: Broad Geographic and Asset Diversification
Broad Geographic and Asset Diversification No single property accounts for more than 25% of Property Adj. EBITDA § Acquisition of the Nugget and Rocky Gap significantly increases Century’s scale § 46% increase in revenue § 61% increase in Adj. EBITDA § Further diversifies earnings on geographic and
Slide 35: Summary of Pro Forma Historical Financial Performance
Summary of Pro Forma Historical Financial Performance in millions Key Highlights Revenue $567 § Stable revenue growth across Century, the Nugget $78 and Rocky Gap with strong recovery post-COVID $413 $100 $377 § Consistent Adj. EBITDA growth combined with $302 $321 $70 $52 $57 margin expansion $67 $
Slide 36: Reconciliation of Lease Adjusted Debt (capitalized at 10.6x)
Reconciliation of Lease Adjusted Debt and Pro Forma Lease Adjusted Debt (capitalized at 10.6x) Non-GAAP Financial Measures June 30, 2022 Nugget Rocky Gap June 30, 2022 (1) (2) in dollars, in millions Current Adj Adj Pro Forma Cash $ 96,2 $ - $ (56,1) $ 40,1 Total Debt 369,9 - - 369,9 Net Debt 273,7
Slide 37: Reconciliation of Lease Adjusted Debt (capitalized at 8x)
Reconciliation of Lease Adjusted Debt and Pro Forma Lease Adjusted Debt (capitalized at 8x) Non-GAAP Financial Measures June 30, 2022 Nugget Rocky Gap June 30, 2022 (1) (2) in dollars, in millions Current Adj Adj Pro Forma Cash $ 96,2 $ - $ (56,1) $ 40,1 Total Debt 369,9 - - 369,9 Net Debt 273,7 - 5
Slide 38: Thank You!
THANK YOU!
Slide 39: Appendix
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Slide 40: Summary of Financing Transaction
Summary of Financing Transaction New Term Loan and Revolver § Goldman Sachs $350mm 7-year Senior Secured Term Loan (and a $30mm 5-year Senior Secured Super Priority Revolver) at SOFR plus 6%, entered into on April 1, 2022 § Together with approximately $30mm of existing balance sheet cash from Centur
Slide 41: Impact of COVID-19 Post-Reopening Performance
Multi-Channel North American Gaming Company Impact of COVID-19 Post-Reopening Performance § To comply with government mandates as a result of the § Century’s geographic diversity with locations in hyperlocal, COVID-19 pandemic, Century closed casinos, hotels and drive-to markets with a loyal custome
Slide 42: Successful ERI/CZR Assets Integration
Successful ERI/CZR Assets Integration Improved performance immediately after take-over Selected key operational changes: § Refreshed slot floors, replacing ~5% of the worst performing slot machines with new machines and redesigned the gaming floor layout as well as VIP area and smoking section § Int
Slide 43: Poland Casino Locations
Poland Casino Locations • Population 38.4 MM 1 Marriot Warsaw • GDP growth 5.3% 1 Hilton Warsaw • Limited number of licenses 1 Wawa Casino at LIM Center 2 Hotel President Bielsko – Biala ~200 miles 3 Park Inn Katowice 4 Dwor Kosciuszko Krakow 5 Double Tree Wroclaw 6 Manufaktura Entertainment Lodz ~1
Slide 44: Experienced Management Team with Significant Gaming Operating Expertise
Experienced Management Team with Significant Gaming Operating Expertise Century’s management team has combined 100+ years of experience and has operated 100+ Casinos in 20+ countries Erwin Haitzmann Peter Hoetzinger Margaret Stapleton Andreas Terler Timothy Wright Chairman of the Board, Co- Vice Cha
Slide 45: Non-GAAP Financial Measures
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 transactions, pre-
Slide 46: Reconciliation of Adjusted EBITDA – Century Casinos, Inc.
Non-GAAP Financial Measures Reconciliation of Adjusted EBITDA – Century Casinos, Inc. (in millions) 6-Months FYE December 31, Ended 2017 2018 2019 2020 2021 30-Jun-22 Net earnings (loss) attributable to Century Casinos, Inc. shareholders $ 6 $ 3 $ (19) $ (48) $ 21 $ 9 Interest expense (income), net
Slide 47: Reconciliation of Adjusted EBITDA – Nugget Casino Resort
Non-GAAP Financial Measures Reconciliation of Adjusted EBITDA – Nugget Casino Resort (in millions) FYE December 31, 2017 2018 2019 2020 2021 Net earnings (loss) $ 7 $ 5 $ 4 $ (6) $ 16 Interest expense (income), net 0 1 1 1 1 Depreciation and amortization 7 11 11 14 14 Management fees 1 1 1 1 1 One t
Slide 48: Reconciliation of Adjusted EBITDA – Rocky Gap Casino Resort
Non-GAAP Financial Measures Reconciliation of Adjusted EBITDA – Rocky Gap Casino Resort (in millions) FYE December 31, 2017 2018 2019 2020 2021 Net earnings $ 15 $ 15 $ 16 $ 10 $ 22 Interest expense 0 0 0 0 0 Depreciation and amortization 4 4 4 4 4 One time adjustments - - 0 1 0 Loss on disposal of
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