Century Casinos, Inc. · NASDAQ:CNTY
Century Casinos — Q2 2019 Earnings Presentation
39 slides from Century Casinos's earnings presentation, 2019
Slide 1: Century Casinos Financial Results Q2 2019
CENTURY CASINOS Financial Results Q2 2019 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: Notes on Presentation
Notes on Presentation In this presentation the term “USD” refers to US dollars, the term “CAD” refers to Canadian dollars, the term “PLN” refers to Polish zloty and the term “GBP” refers to the British pound. Adjusted EBITDA and Adjusted EBITDA margin are non-GAAP financial measures. See Appendix A
Slide 4: Net Operating Revenue by Reportable Segment and Operating Segment
Q2 2019 Net Operating Revenue by Reportable Segment and Operating Segment (in USD) Excluding Corporate Other Operating Segment CCB, Ships & Other 3% Canada Poland 42% 38% Ships & CCB Other CRA 2% 1% 10% CSA 5% CAL 4% CPL 38% CDR 10% CBS 1% CMR United States CRC 12% CTL 17% 7% 10% 4
Slide 5: Earnings (Loss) from Operations by Reportable Segment and Operating Segment
Q2 2019 Earnings (Loss) from Operations by Reportable Segment and Operating Segment (in USD) Excluding Corporate Other Operating Segment CCB, Ships & Other -30% Poland 18% Canada Ships & 84% Other -19% CRA 26% CCB -11% CSA 13% CPL 18% CAL 4% United States 28% CRC 16% CDR 38% CTL 12% CMR 2% CBS 1% 5
Slide 6: Net Earnings (Loss) Attributable to Shareholders by Segment
Q2 2019 Net Earnings (Loss) Attributable to Century Casinos, Inc. Shareholders by Reportable Segment and Operating Segment (in USD) Excluding Corporate Other Operating Segment CCB, Ships & Other -142% Canada 147% Ships & Other -64% CRA 48% CSA 20% CAL 24% CCB -78% CDR 60% Poland 24% CBS 2% CPL 24% U
Slide 7: Adjusted EBITDA by Reportable Segment and Operating Segment
Q2 2019 Adjusted EBITDA* by Reportable Segment and Operating Segment (in USD) Excluding Corporate Other Operating Segment CCB, Ships & Other -16% Poland 23% Ships & Canada Other 68% CCB CRA -9% -7% 20% CSA CPL 9% 23% CAL 4% United CRC 14% CDR States 29% 25% CTL CMR CBS 11% 5% 1% *Adjusted EBITDA is
Slide 8: Net Operating Revenue per Quarter
Net Operating Revenue per Quarter (in USD) 60 52.4 50 45.6 45.1 43.6 40.6 41.0 39.6 39.3 40 36.4 37.9 37.3 36.3 35.2 33.2 33.5 34.5 31.9 30.4 30 20 10 0 Q1 Q2 Q3 Q4 2015 2016 2017 2018 2019 8
Slide 9: Balance Sheet
Balance Sheet (Selected Information in USD) In millions (except BVPS) June 30, 2019 December 31, 2018 Change Total Assets 340.3 278.8 22% Total Debt 72.1 59.5 21% Book Value per Share* 6.14 6.00 2% Net Debt** 25.5 14.4 *Book Value per Share is defined as total Century Casinos, Inc. shareholders’ equ
Slide 10: Income Statement
Income Statement (Selected Information in USD) In millions (except EPS) Q2 2019 Q2 2018 Change Net Operating Revenue 52.4 39.6 32% Earnings from Operations 2.6 1.0 161% Net (Loss) Earnings Attributable to Century Casinos, Inc. Shareholders (0.6) 0.3 (278%) Adjusted EBITDA* 6.7 4.7 44% Basic and Dilu
Slide 11: Constant Currency Results
Constant Currency Results (in USD) In millions Q2 2019 Q2 2018 Change Net Operating Revenue as reported (GAAP) 52.4 39.6 32% Foreign currency impact vs. 2018 2.1 Net Operating Revenue constant currency (non-GAAP)* 54.6 39.6 38% Earnings from Operations as reported (GAAP) 2.6 1.0 161% Foreign currenc
Slide 12: Constant Currency Results: Net (Loss) Earnings
Constant Currency Results (in USD) In millions Q2 2019 Q2 2018 Change Net (Loss) Earnings Attributable to Century Casinos, Inc. Shareholders as reported (GAAP) (0.6) 0.3 (278%) Foreign currency impact vs. 2018 — Net (Loss) Earnings Attributable to Century Casinos, Inc. Shareholders constant currency
Slide 13: Debt and Net Debt to Adjusted EBITDA
Debt and Net Debt to Adjusted EBITDA* (in USD) As of June 30, 2019 and for the years ended December 31, 2011-2018 4x 3.0x 3x 2.8x 2.7x 2.5x 2.2x 2.2x 2x 1.6x 1.1x 1.0x 1x 0.8x 0.5x 0.7x 0.6x 0.3x 0.3x 0x 2011 2012 2013 2014 2015 2016 2017 2018 2019 -1x -0.7x -1.5x -2x -2.0x -3x Debt to Adjusted EBIT
Slide 14: Q2 2019 Highlights – Canada
Q2 2019 Highlights – CANADA (Selected Information in CAD) In millions Q2 2019 Q2 2018 Change Net Operating Revenue 29.4 19.8 49% Operating Costs and Expenses 22.9 14.9 54% Earnings from Operations 6.5 4.9 33% Net Earnings Attributable to Century Casinos, Inc. Shareholders 4.2 2.0 113% Adjusted EBITD
Slide 15: Century Casino & Hotel - Edmonton
Q2 2019 Highlights – CANADA (Selected Information in CAD) CENTURY CASINO & HOTEL - EDMONTON In millions Q2 2019 Q2 2018 Change Net Operating Revenue 6.7 6.8 (1%) Operating Costs and Expenses 4.7 4.7 (1%) Earnings from Operations 2.0 2.1 (1%) Net Earnings Attributable to Century Casinos, Inc. Shareho
Slide 16: Century Casino St. Albert
Q2 2019 Highlights – CANADA (Selected Information in CAD) CENTURY CASINO ST. ALBERT In millions Q2 2019 Q2 2018 Change Net Operating Revenue 3.2 2.9 9% Operating Costs and Expenses 2.2 2.1 1% Earnings from Operations 1.0 0.8 31% Net Earnings Attributable to Century Casinos, Inc. Shareholders 0.5 0.3
Slide 17: Century Mile Racetrack and Casino
Q2 2019 Highlights – CANADA (Selected Information in CAD) CENTURY MILE RACETRACK AND CASINO In millions Q2 2019 Q2 2018 Change Net Operating Revenue 8.6 — 100% Operating Costs and Expenses 8.5 0.5 1488% Earnings (Loss) from Operations 0.2 (0.5) 134% Net Loss Attributable to Century Casinos, Inc. Sha
Slide 18: Century Casino Calgary
Q2 2019 Highlights – CANADA (Selected Information in CAD) CENTURY CASINO CALGARY In millions Q2 2019 Q2 2018 Change Net Operating Revenue 2.9 2.7 7% Operating Costs and Expenses 2.5 2.7 (4%) Earnings from Operations 0.3 — 1357% Net Earnings (Loss) Attributable to Century Casinos, Inc. Shareholders 0
Slide 19: Century Downs Racetrack and Casino
Q2 2019 Highlights – CANADA (Selected Information in CAD) CENTURY DOWNS RACETRACK AND CASINO In millions Q2 2019 Q2 2018 Change Net Operating Revenue 7.2 6.5 11% Operating Costs and Expenses 4.3 4.1 5% Earnings from Operations 2.9 2.4 22% Net Earnings Attributable to Century Casinos, Inc. Shareholde
Slide 20: Q2 2019 Highlights – United States
Q2 2019 Highlights – UNITED STATES (Selected Information in USD) In millions Q2 2019 Q2 2018 Change Net Operating Revenue 8.8 8.5 4% Operating Costs and Expenses 7.2 6.9 3% Earnings from Operations 1.6 1.5 6% Net Earnings Attributable to Century Casinos, Inc. Shareholders 1.2 1.2 7% Adjusted EBITDA*
Slide 21: Century Casino & Hotel - Central City
Q2 2019 Highlights – UNITED STATES (Selected Information in USD) CENTURY CASINO & HOTEL - CENTRAL CITY In millions Q2 2019 Q2 2018 Change Net Operating Revenue 5.1 5.0 1% Operating Costs and Expenses 4.4 4.4 1% Earnings from Operations 0.7 0.7 1% Net Earnings Attributable to Century Casinos, Inc. Sh
Slide 22: Century Casino & Hotel - Cripple Creek
Q2 2019 Highlights – UNITED STATES (Selected Information in USD) CENTURY CASINO & HOTEL - CRIPPLE CREEK In millions Q2 2019 Q2 2018 Change Net Operating Revenue 3.8 3.4 9% Operating Costs and Expenses 2.8 2.6 9% Earnings from Operations 1.0 0.9 10% Net Earnings Attributable to Century Casinos, Inc.
Slide 23: Q2 2019 Highlights – Poland
Q2 2019 Highlights – POLAND (Selected Information in PLN) In millions Q2 2019 Q2 2018 Change Net Operating Revenue 76.6 52.2 47% Operating Costs and Expenses 72.6 57.0 27% Earnings (Loss) from Operations 3.9 (4.9) 181% Net Earnings (Loss) Attributable to Century Casinos, Inc. Shareholders 1.6 (2.6)
Slide 24: Q2 2019 Highlights – Corporate and Other
Q2 2019 Highlights – CORPORATE AND OTHER (Selected Information in USD) In millions Q2 2019 Q2 2018 Change Net Operating Revenue 1.5 1.3 21% Operating Costs and Expenses 6.5 4.3 53% Loss from Operations (4.9) (3.0) (66%) Net Loss Attributable to Century Casinos, Inc. Shareholders (4.8) (2.0) (138%) A
Slide 25: Cruise Ships and Other
Q2 2019 Highlights – CORPORATE AND OTHER (Selected Information in USD) CRUISE SHIPS AND OTHER In millions Q2 2019 Q2 2018 Change Net Operating Revenue 0.5 0.7 (27%) Operating Costs and Expenses 1.7 0.7 137% (Loss) Earnings from Operations (1.1) — (2349%) Net (Loss) Earnings Attributable to Century C
Slide 26: Century Casino Bath
Q2 2019 Highlights – CORPORATE AND OTHER (Selected Information in GBP) CENTURY CASINO BATH In millions Q2 2019 Q2 2018 Change Net Operating Revenue 0.7 0.4 76% Operating Costs and Expenses 1.2 1.1 12% Loss from Operations (0.5) (0.7) 26% Net Loss Attributable to Century Casinos, Inc. Shareholders (1
Slide 27: Q2 2019 Highlights – Additional Projects Under Development
Q2 2019 Highlights – ADDITIONAL PROJECTS UNDER DEVELOPMENT United States On June 17, 2019, the Company entered into a definitive agreement to acquire the operations of Cape Girardeau, Caruthersville and Mountaineer from Eldorado Resorts, Inc. for approximately $107.0 million (the “Acquisition”), whi
Slide 28: Appendix A – Abbreviations of Subsidiaries and Operating Segments
Appendix A – ABBREVIATIONS OF CENTURY CASINOS, INC. SUBSIDIARIES AND CERTAIN OPERATING SEGMENTS Subsidiary Abbreviation Century Casino & Hotel - Edmonton CRA Century Casino St. Albert CSA Century Casino Calgary CAL Century Downs Racetrack and Casino CDR Century Bets! CBS Century Mile Racetrack and C
Slide 29: Appendix A – Non-GAAP Financial Measures
Appendix A – 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
Slide 30: 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 and amortization, non-controlling interests net earnings (loss) and trans
Slide 31: 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 financial information compared to prior period financial information
Slide 32: Reconciliation of Adjusted EBITDA – Canada
Appendix A – NON-GAAP FINANCIAL MEASURES Reconciliation of Adjusted EBITDA (in thousands) - CANADA For the three months ended June 30, 2019 Total in CAD CRA CSA CAL CDR CBS CMR Canada Net Operating Revenue $ 6,695 $ 3,159 $ 2,852 $ 7,169 $ 895 $ 8,642 $ 29,412 Net earnings (loss) attributable to Cen
Slide 33: Reconciliation of Adjusted EBITDA – Canada continued
Appendix A – NON-GAAP FINANCIAL MEASURES Reconciliation of Adjusted EBITDA (in thousands) – CANADA continued For the three months ended June 30, 2018 Total in CAD CRA CSA CAL CDR CBS CMR Canada Net Operating Revenue $ 6,768 $ 2,898 $ 2,672 $ 6,463 $ 996 — $ 19,797 Net earnings (loss) attributable to
Slide 34: Reconciliation of Adjusted EBITDA – United States
Appendix A – NON-GAAP FINANCIAL MEASURES Reconciliation of Adjusted EBITDA (in thousands) – UNITED STATES For the three months ended June 30, 2019 Total United in USD Central City Cripple Creek States Net Operating Revenue $ 5,057 $ 3,752 $ 8,809 Net earnings attributable to Century Casinos, Inc. sh
Slide 35: Reconciliation of Adjusted EBITDA – Poland
Appendix A – NON-GAAP FINANCIAL MEASURES Reconciliation of Adjusted EBITDA (in thousands) – POLAND For the three months ended June 30, in PLN 2019 2018 Net Operating Revenue PLN 76,573 PLN 52,154 Net earnings (loss) attributable to Century Casinos, Inc. shareholders 1,622 (2,613) Interest expense (i
Slide 36: Reconciliation of Adjusted EBITDA – Corporate and Other
Appendix A – NON-GAAP FINANCIAL MEASURES Reconciliation of Adjusted EBITDA (in thousands) – CORPORATE AND OTHER For the three months ended June 30, 2019 Cruise Ships and Century Casino Total Corporate in USD Other Bath Corporate Other and Other Net Operating Revenue $ 538 $ 902 $ 101 $ 1,541 Net los
Slide 37: Reconciliation of Adjusted EBITDA – Century Casino Bath
Appendix A – NON-GAAP FINANCIAL MEASURES Reconciliation of Adjusted EBITDA (in thousands) – CENTURY CASINO BATH For the three months ended June 30, in GBP 2019 2018 Net Operating Revenue GBP 700 GBP 398 Net loss attributable to Century Casinos, Inc. shareholders (1,278) (663) Interest expense (incom
Slide 38: Reconciliation of Net Debt
Appendix A – NON-GAAP FINANCIAL MEASURES Reconciliation of Net Debt (in thousands) Amounts in thousands June 30, 2019 June 30, 2018 Total long-term debt, including current portion $ 72,057 $ 54,296 Deferred financing costs 411 208 Total principal $ 72,468 $ 54,504 Less: Cash and cash equivalents $ 4
Slide 39: Reconciliation of Net Debt 2011-2018
Appendix A – NON-GAAP FINANCIAL MEASURES Reconciliation of Net Debt (in thousands) December 31, Amounts in thousands 2011 2012 2013 2014 2015 2016 2017 2018 Total long-term debt, including current portion $ 8,999 $ 3,079 $ 33,738 $ 37,894 $ 36,520 $ 55,609 $ 56,713 $ 59,523 Deferred financing costs