Century Casinos, Inc. · NASDAQ:CNTY
Century Casinos — Merger or Acquisition (June 2019)
17 slides from Century Casinos's merger presentation, June 2019
Slide 1: Investor Presentation June 2019
Investor Presentation June 2019 1
Slide 2: Forward Looking Statements
Forward Looking Statements This release may contain certain “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, and the Private Securities Litigation Reform Act of 1995. Forward-look
Slide 3: Transaction Overview
Transaction Overview • Century Casinos to acquire the operations of three assets from Eldorado Resorts for $107mm Transaction • VICI Properties Inc. (“VICI”) to acquire the underlying real estate of the assets for $278mm Structure • Century Casinos will enter into a master lease agreement with VICI
Slide 4: Strategic Rationale / Transaction Highlights
Strategic Rationale / Transaction Highlights Well positioned assets in strong, stable markets Further enhance scale and North American presence Opportunities to drive incremental growth through operational improvements Strong and growing free cash flow generation Securely capitalized with ample capa
Slide 5: Acquired Asset Overview
Acquired Asset Overview Source: Eldorado Resorts filings with the U.S. Securities and Exchange Commission as of 3/31/2019. 5
Slide 6: Pro Forma Portfolio Overview
Pro Forma Portfolio Overview Pro Forma # of Properties 15 properties 3 properties 18 properties # of Slot Machines 4,285 2,856 7,141 # of Table Games 187 65 252 # of Hotel Rooms 73 357 430 LTM 3/31/19 Net $174mm $219mm $393mm Operating Revenue LTM 3/31/19 $24mm $26mm(2) $50mm Adjusted EBITDA(1) Note
Slide 7: Pro Forma Geography
Pro Forma Geography North American Geographic Profile(1) Alberta Saskatchewan British Mountaineer Columbia Central City Manitoba Cripple Creek St. Albert Edmonton Cape Girardeau Century Mile Caruthersville Calgary Century Downs Century Existing Assets Acquired Assets Adjusted LTM 3/31/2019 EBITDAR b
Slide 8: Pro Forma Financials
Pro Forma Financials Historical and Pro Forma Net Operating Revenue $388.1 $393.2 $219.2 $219.3 $139.2 $154.1 $168.9 $173.9 YE 12/31/2016 YE 12/31/2017 PF 12/31/2018 LTM PF 3/31/2019 Historical and Pro Forma Adjusted EBITDA(1) $47.3 $49.8 $25.8 $26.1 $24.0 $26.3 $23.4 $23.5 YE 12/31/2016 YE 12/31/20
Slide 9: Sources and Uses and Pro Forma Capitalization
Sources and Uses and Pro Forma Capitalization Sources of Funds Amount Uses of Funds Amount Revolver ($10MM, Undrawn) $- Acquisition Consideration $107 Term Loan 170 Repay BMO Facility - 3/31/19 48 Acquired Assets Cage Cash 12 Cash to Balance Sheet 15 Transaction Fees and Expenses 12 Total $182 Total
Slide 10: Acquired Properties Overviews
Acquired Properties Overviews
Slide 11: Isle Casino Cape Girardeau
Isle Casino Cape Girardeau Property Overview Market Map Location • Cape Girardeau, Missouri • Located approximately 120 miles south of St. Louis, Missouri Property Description • Opened in 2012 • Dockside casino featuring: ‒ 41,500 sq. ft. of gaming space ‒ 863 slot machines ‒ 20 table games ‒ 3 dini
Slide 12: Lady Luck Caruthersville
Lady Luck Caruthersville Property Overview Market Map Location • Caruthersville, Missouri • Riverboat casino located along the Mississippi River Property Description • Opened in 1995 • Riverboat casino featuring: ‒ 21,000 sq. ft. of gaming space ‒ 507 slot machines ‒ 9 table games ‒ 2 dining venues
Slide 13: Mountaineer Casino, Racetrack and Resort
Mountaineer Casino, Racetrack and Resort Property Overview Market Map Location • New Cumberland, West Virginia • Located one hour away from downtown Pittsburgh, Pennsylvania Property Description • Casino opened in 1994 • Racetrack casino featuring: ‒ 1,486 slot machines ‒ 36 table games and a poker
Slide 14: Appendix A
a Appendix A
Slide 15: Adjusted EBITDA Definition
Adjusted EBITDA Definition 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 net earnings (loss) and transactions, pre‐openi
Slide 16: Reconciliation of Adjusted EBITDA of Century Casinos, Inc.
Reconciliation of Adjusted EBITDA of Century Casinos, Inc. For the year ended (In $ Millions) 12/31/16 12/31/17 12/31/18 LTM 3/31/19 Net earnings (loss) attributable to Century Casinos, Inc. shareholders $9,215 $6,259 $3,394 $3,536 Interest expense (income), net 3,088 3,569 4,114 4,357 Income taxes
Slide 17: Reconciliation of Pro Forma Adjusted EBITDA of Acquired Assets
Reconciliation of Pro Forma Adjusted EBITDA of Acquired Assets (In $ Millions) LTM 3/31/19 Reported LTM Adjusted EBITDAR $49.6 Plus: Corporate Overhead Allocation 3.3 Less: Estimated Incremental Century Costs for Acquired Assets (1.6) Pro Forma LTM Adjusted EBITDAR 51.3 Less: Rent Expense (25.0) Pro