Century Casinos, Inc. · NASDAQ:CNTY
Century Casinos — Brean Murray, Carret & Co Consumer Conference 2011
29 slides from Century Casinos's conference presentation, Sep 27, 2011
Slide 1: Corporate Presentation
CORPORATE PRESENTATION Peter Hoetzinger, Co-CEO & President September 2011
Slide 2: Safe Harbor Statement
Safe Harbor Statement Century Casinos, Inc. (the "Company") has prepared this presentation for the sole purpose of providing information relating to the Company. The content of this presentation is based on public information and on data provided by the Company's management. No reliance may be place
Slide 3: International Casino Entertainment Company
International Casino Entertainment Company § Develop and operate gaming establishments in regulated markets world-wide § 24 Casino Operations (3,000 slots and 220 tables): – 4 in North America (US and Canada) – 7 in Eastern Europe (Poland) – 1 in the Caribbean (Aruba) – 12 on cruise ships (largest
Slide 4: Investment Highlights
Investment Highlights § Established facilities in key markets with high barriers to entry (limited number of casino licenses in Canada and Poland) § Strong balance sheet (net cash position) § Expansion opportunities in new geographies § Operational optimization program to increase margins as rev
Slide 5: 2010 Transactions
2010 Transactions Land § Calgary - January acquisition of the Silver Dollar Casino for $11.5mm - November re-launch under Century brand § Cripple Creek, CO - September re-launch under Century brand § Central City, CO - December relocation of Deli and Poker room § Aruba - December agreement with
Slide 6: Business Review
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Slide 7: International Diversification
International Diversification Edmonton Calgary Denver Colorado Springs Eastern Europe (7 Casinos in Poland) Aruba Land-‐based Casino resorts (12) Ship-‐based Casinos (12) 7
Slide 8: Land Properties
Land Properties § Mid-size casinos, catering primarily to local customers with some tourism § Key Criteria – Well regulated markets with robust casino legislation – Immediate catchment area – residents within 60-90 minutes – Economic terms (gaming tax structure, investment required) § Non-gaming
Slide 9: Colorado Casino Market
Colorado Casino Market § We are in 2 out of the 3 cities that allow casino gaming (outside of Indian reservations). Historic mining towns have developed into tourist attractions. § Regulatory environment more favorable since July 2009 – Increased betting limits – Additional games – Extended hours
Slide 10: Colorado Hotel Casinos
Colorado Hotel Casinos Central City Cripple Creek Edmonton (near Denver, (near Colorado Alberta, Canada CO) Springs, CO) Ownership Wholly Owned Wholly Owned Opened/Acquired 2006 1993 Slot Machines 502 (100% TITO) 440 (100% TITO) Table Games 11 6 Hotel Rooms 26 21 Parking Garage Surface Restaurants/B
Slide 11: Alberta, Canada, Casino Market
Alberta, Canada, Casino Market § Limited number of casino licenses in Alberta – high barrier to entry § Alberta Gaming & Liquor Commission (AGLC) is an active partner – Revenue split provides incentive for AGLC to improve our business – Upgrading slot machines at both properties § Calgary Casino
Slide 12: Canada Hotel Casinos
Canada Hotel Casinos Calgary Edmonton Alberta, Canada Alberta, Canada Ownership Wholly Owned: AGLC Wholly Owned: split AGLC split Opened/Acquired Acquired Jan 2010 2006 Re-Open Nov 2010 Slot Machines 529 (100% TITO) 688 (100% TITO) Table Games 17 35 Hotel Rooms -- 26 Parking Surface Heated Garage Re
Slide 13: International Casinos: Poland
International Casinos: Poland § Casinos Poland has a 53% share of the Polish Casino Market § Limited number of casino licenses – high barrier to entry § Locations – Warsaw (2), Krakow, Poznan, Katowice, Wroclaw, Gdynia, Sosnowiec – High-end venues include Hyatt and Marriott hotels § Solid perfor
Slide 14: International Casinos: Aruba
International Casinos: Aruba § December 2010 signed long-term management agreement with Carlson Radisson Hotel Group – Assist in managing the casino and receive management fee – No investment required from us § Casino currently undergoing an equipment and interior design upgrade § Radisson Hotel
Slide 15: International Casinos: Cruise Ships
International Casinos: Cruise Ships § Largest independent operator of casinos onboard luxury cruise ships § Opportunistic approach towards cruise lines with affluent passengers – Target smaller cruise lines with one to ten ships – Cruise lines with more ships tend to manage their own casino busine
Slide 16: International Casinos
International Casinos Poland Aruba Cruise Ships Antiles, Caribbean CNTY has 33.3% stake in Management contract 100% owned and operated Ownership Casinos Poland Ltd. with Radisson hotel under concession contracts Opened/Acquired March 2007 December 2010 Varies # of Casinos 7, +1 in development 1 12,
Slide 17: EBITDA Distribution per Casino
EBITDA Distribution per Casino Adj. EBITDA per Casino in Q2-‐2011 Edmonton (44%) Central City (19%) Cripple Creek (14%) Poland -‐ our share (14%) Ships & Aruba (6%) Calgary (2%) 17
Slide 18: Consolidated Financials
Consolidated Financials
Slide 19: At a Glance (as of June 30, 2011)
At a Glance (as of June 30, 2011 - in USD) • Share Price: $2.80* Capital Structure • Shares outstanding: 23.8 mil • Market Cap: $66.9 mil* • Cash/Cash equivalents: $19.8 mil Cash/Debt • Bank Debt: $10.8 mil (at 7% fixed, matures in 12/2012) • Net Cash: $9.0 mil vs. $8.0 mil on Dec 31/10, up 12% • Ne
Slide 20: Financial Charts
Financial Charts Revenue by Source Gaming F&B, Hotel, Bowling Other 20
Slide 21: Financial Charts
Financial Charts 10 Year Net OperaKng Revenue (conTnuing operaTons, in millions) $70 $60 $50 Opened $40 Calgary $30 Opened $20 Central City and Edmonton $10 $0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 21
Slide 22: Financial Charts
Financial Charts Quarterly Net Operating Revenue and Adj. EBITDA $20 + 21% $18 $16 + 26% $14 $12 $10 Net OperaTng Revenue (mil) $8 Adjusted EBITDA $6 (mil) $4 $2 $0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2009 2010 2011 22
Slide 23: Financial Charts
Financial Charts Gearing RaKo (Net Debt / Equity): -‐ 7% (in USD Mio) 23
Slide 24: Summary & Outlook
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Slide 25: Management Team
Management Team § Erwin Haitzmann: Founder, Chairman of the Board, Co CEO 40 years casino experience § Peter Hoetzinger: Founder, Vice Chairman of the Board, Co CEO & President 25 years casino experience § Margaret Stapleton Executive VP of Finance § Timothy Wright Vice President Accounting & Co
Slide 26: Growth Drivers & Initiatives
Growth Drivers & Initiatives § Margin improvement at all existing properties § In Q2-2011, every single property increased revenues and EBITDA § One additional cruise ship casino under contract (opening Q1-2012) § Remain location flexible to undertake projects in any well regulated casino market
Slide 27: Summary & Outlook
Summary & Outlook § Healthy balance sheet (net cash) § International diversification § Existing portfolio is profitable and growing despite difficult economy – further growth potential during economic recovery § Recent acquisitions expected to provide substantial revenue increases (i.e. Calgary,
Slide 28: Contact Information
CONTACT INFORMATION Peter Hoetzinger Co CEO & President peter.hoetzinger@cnty.com Europe: + 43 664 355 3935 US: + 1 (719) 689 5813
Slide 29: Q & A session
Q & A session Q & A Session 29
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