Century Casinos, Inc. · NASDAQ:CNTY
Century Casinos — Q3 2023 Earnings Presentation
41 slides from Century Casinos's earnings presentation, Nov 9, 2023
Slide 1: Investor Presentation
INVESTOR PRESENTATION Peter Hoetzinger, Co CEO & President Results through Q3 2023
Slide 2: Forward-Looking Statements, Business Environment, Risk Factors & Notes on Presentation
Forward-Looking Statements, Business Environment, Risk Factors & Notes on Presentation 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
Slide 3: 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 4: Multi-Channel North American Gaming Company
Multi-Channel North American Gaming Company Land-based Casinos (USA and Canada) The online world and the land-based casino world co-exist successfully. Racing and On/Off-Track Betting Give online customers a better experience and social excitement when they visit land- based casino properties. Sport
Slide 5: Century's North American Property Footprint
Century’s North American Property Footprint Diversified Local Gaming Footprint in Drive-to Markets 4
Slide 6: 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 and 2022 GGR1 levels materially up versus $811 $828 $842 $834 $560 $976 $1,060 2019 across almost all markets served in
Slide 7: Stable Historical Performance of Regional GGR in the U.S.
Stable Historical Performance of Regional GGR in the U.S. US regional GGR has maintained stable growth since 2001 and is resilient to macroeconomic changes including oil prices and CPI U.S. Regional GGR ($bn) WTI Crude Oil Price (US$ / Barrel) CPI Index YoY % Change Sources: UNLV Gaming Research and
Slide 8: Income Statement
Income Statement Selected information in USD, in millions except for per share Q3 2023 Q3 2022 Change Net Operating Revenue 161.2 112.6 +43% Earnings from Operations 14.5 20.0 -28% Net (Loss) Earnings Attributable to Century Casinos, Inc. Shareholders -14.2 2.9 -581% Adjusted EBITDA1 33.3 28.1 +19%
Slide 9: Balance Sheet and Leverage
Balance Sheet and Leverage As of September 30, 2023 4.8x 2.2x 4.2x Total Principal Debt to Adjusted Net Debt to Adjusted EBITDA less Lease Adjusted Net Leverage EBITDA less Lease Payments1 Lease Payments2 (8.0x)3 (in millions) As of 9/30/23 Cash $189.0 Total Principal Debt1 $347.9 Net Debt $158.9 Le
Slide 10: Century's Commitment
Environmental, Social and Governance (“ESG”) Century’s Commitment Environmental Social Responsibility Corporate Governance Century is committed to Century is involved with local Century created an ESG environmental responsibility in projects and charities in the Steering Committee to oversee the com
Slide 11: CNTY Consolidated Results
CNTY Consolidated Results 2019 – 2023 Quarterly Results (in USD, in millions) Net Operating Revenue 200 161.2 150 136.8 111.1 116.6112.6 103.1108.5 95.7 107.3103.8 100 87.7 92.2 84.8 72.4 67.2 45.6 52.4 52.9 50 36.1 0 Q1 Q2 Q3 Q4 2019 2020 2021 2022 2023 Adjusted EBITDA (1) 40 35 33.1 33.3 29.8 29.3
Slide 12: Net Operating Revenue
Net Operating Revenue Q3 2023 by Reportable Segment and Operating Segment (1) (in USD) Canada 13% Canada Poland 13% Midwest 15% 25% Poland 15% East 27% United States 72% West 20% 1. Excludes the Corporate and Other Reportable Segment. 11
Slide 13: Adjusted EBITDA
Adjusted EBITDA (1) Q3 2023 by Reportable Segment and Operating Segment (2) (in USD) Canada 13% Poland 5% Canada 13% Poland Midwest 5% 41% West 18% United States 82% East 23% 1. Adjusted EBITDA is a non-GAAP financial measure. See Appendix for the definition and reconciliation of Adjusted EBITDA. 2.
Slide 14: U.S. Operations Overview
• East • Midwest U.S. OPERATIONS OVERVIEW • West
Slide 15: East Region Market Overview and Asset Summary
East Region Market Overview and Asset Summary West Virginia 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 center Locat
Slide 16: East Region Market Overview and Asset Summary
East Region Market Overview and Asset Summary Maryland Asset Property Highlights Key Stats1 Rocky Gap Casino Resort combines a picturesque Casino Sq. Footage 25,447 outdoor backdrop with a 25,000+ sq ft casino floor anchored by a 198-room hotel. Maryland’s only Jack Nicklaus Signature golf cours
Slide 17: East Region Results
East Region Results West Virginia and Maryland Net Operating Revenue Adjusted EBITDA 1 50 10 45 44.0 9 8.5 40 8 35 7 31.7 6.2 30.6 30.4 29.7 5.9 30 28.2 28.7 6 26.3 26.7 26.5 5.3 23.9 4.9 25 5 4.5 4.3 3.9 3.9 20 4 3.6 3.5 15 3 10 2 5 1 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2021 2022 2023 2021 2022 2023 1. Adj
Slide 18: Midwest Market Overview and Asset Summary
Midwest Market Overview and Asset Summary Colorado Asset Property Highlights Key Stats1 Central City is located just 45 minutes west of Denver, Casino Sq. Footage 22,640 Colorado Slot Machines 399 Easily accessible from highway I-70 Tables 8 Online sports betting through Tipico Sportsbook part
Slide 19: Midwest Region Market Overview and Asset Summary
Midwest Region Market Overview and Asset Summary Missouri Asset Property Highlights Key Stats1 Casino 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 Machines 832 Property includes an e
Slide 20: Midwest Region Results
Midwest Region Results Colorado and Missouri Net Operating Revenue Adjusted EBITDA 1 50 25 46.2 45 22.0 42.2 40.4 40.6 40.3 40.4 40 39.0 39.7 39.2 39.6 20 18.5 18.4 35.8 17.4 35 16.7 16.1 15.9 15.9 15.4 15.3 30 15 12.8 25 20 10 15 10 5 5 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2021 2022 2023 2021 2022 2023 1. A
Slide 21: West Region Market Overview and Asset Summary
West Region Market Overview and Asset Summary Nevada Asset Property Highlights Key Stats1 The newly remodeled Nugget Casino is conveniently Casino Sq. Footage 71,200 located on route I-80 with easy access from the airport The full-service resort boasts a large gaming floor, two Slot Machines 941
Slide 22: Additional Growth Drivers
• Overview • Cape Girardeau Hotel ADDITIONAL GROWTH DRIVERS • Caruthersville Land-based
Slide 23: Century is Well Positioned for the Next Stage of Growth
Century is Well Positioned for the Next Stage of Growth Attractive Value Creation Projects Estimated Project Estimated Capex Estimated Adjusted EBITDA1 Description Requirement Completion Impact New land-based casino $3m - $5m Funded by VICI Q4 2024 and hotel (net of increased rent) $2m - $3m $31m 69
Slide 24: Missouri Projects – Cape Girardeau Hotel
Century is Well-Positioned for the Next Stage of Growth Missouri Projects – Cape Girardeau Hotel Century commenced construction of a 69-room hotel at Cape Girardeau connected to the existing casino in September 2022. Project will transform the facility to a full resort destination with gaming, v
Slide 25: Missouri Projects – Caruthersville Temporary Land-Based Casino & Hotel
Century is Well-Positioned for the Next Stage of Growth Missouri Projects – Caruthersville Temporary Land-Based Casino & Hotel Originally, the casino operated on a riverboat and barge. Closed all games on the riverboat in October 2022 as it was no longer accessible due to record low water levels (
Slide 26: Missouri Projects – Caruthersville Permanent Land-Based Casino & Hotel
Century is Well-Positioned for the Next Stage of Growth Missouri Projects – Caruthersville Permanent Land-Based Casino & Hotel Groundbreaking on December 2, 2022. Expected opening in late 2024. 600 slot machines (with the possibility of an expansion for an additional 140), table games, a restaur
Slide 27: Thank You!
THANK YOU !
Slide 28: Appendix
APPENDIX
Slide 29: Earnings from Operations by Segment – Q3 2023
Appendix Earnings from Operations – Q3 2023 by Reportable Segment and Operating Segment1 (in USD) Canada 9% Poland 5% Canada 9% Poland 5% Midwest West 52% 12% East United States 22% 86% 1. Excludes the Corporate and Other Reportable Segment. 28
Slide 30: Net Earnings (Loss) by Segment – Q3 2023
Appendix Net Earnings (Loss) Attributable to Century Casinos, Inc. Shareholders – Q3 2023 by Reportable Segment and Operating Segment1 (in USD) Canada -40% Canada -40% Midwest 120% Poland Poland 18% 18% West 31% United States 122% East -29% 1. Excludes the Corporate and Other Reportable Segment. 29
Slide 31: Abbreviations of Subsidiaries and Reporting Units
Appendix Abbreviations of Century Casinos, Inc. Subsidiaries and Certain Reporting Units Abbreviation Operating Segment Century Casino & Hotel – Central City CTL or Central City Midwest Century Casino & Hotel – Cripple Creek CRC or Cripple Creek Midwest Mountaineer Casino, Resort & Races MTR or Moun
Slide 32: Terms and Definitions
Appendix Terms and Definitions In this presentation, the term “USD” refers to US dollars, the term “CAD” refers to Canadian dollars and the term “PLN” refers to Polish zloty. Amounts presented are rounded. As such, rounding differences could occur in period-over-period changes and percentages report
Slide 33: Non-GAAP Financial Measures
Appendix Non-GAAP Financial Measures The Company supplements its consolidated financial statements prepared in accordance with US generally accepted accounting principles (“GAAP”) by using the following non-GAAP financial measures, which management believes are useful in properly understanding the C
Slide 34: Non-GAAP Financial Measures
Appendix 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 transacti
Slide 35: Non-GAAP Financial Measures
Appendix Non-GAAP Financial Measures Adjusted EBITDA less Lease Payments is calculated by deducting the cash payments related to the Company’s Master Lease, CDR land lease and 50% of the lease payments from the Nugget to Smooth Bourbon (“Lease Payments”) from Adjusted EBITDA to calculate the debt an
Slide 36: Non-GAAP Financial Measures – Reconciliation of Adjusted EBITDA
Appendix Non-GAAP Financial Measures – Reconciliation of Adjusted EBITDA Century Casinos, Inc. For the three months ended September 30, in USD, in thousands 2023 2022 Net Operating Revenue $ 161,179 $ 112,552 Net (loss) earnings attributable to Century Casinos, Inc. shareholders (14,175) 2,944 Inter
Slide 37: Non-GAAP Financial Measures – Reconciliation of Adjusted EBITDA
Appendix Non-GAAP Financial Measures – Reconciliation of Adjusted EBITDA For the three months ended September 30, 2023 Total United in USD, in thousands East Midwest West States Net (loss) income attributable to Century Casinos, Inc. shareholders (1,249) 5,191 1,331 5,273 Interest expense (income),
Slide 38: Non-GAAP Financial Measures – Reconciliation of Quarterly Adjusted EBITDA
Appendix Non-GAAP Financial Measures – Reconciliation of Quarterly Adjusted EBITDA 2019 2020 2021 2022 2023 in USD, in millions Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Net earnings (loss) attributable to Century Casinos, Inc. shareholders $ 1.1 $ (0.6) $ 0.5 $(20.1) $(45.9) $(12.6)
Slide 39: Reconciliation of Adjusted EBITDA and Adjusted EBITDA less Lease Payments
Appendix Non-GAAP Financial Measures – Reconciliation of Adjusted EBITDA and Adjusted EBITDA less Lease Payments (in thousands) and Interest Expense (Income), Net (in millions) Trailing-Twelve Months Ended Year Ended September 30, December 31, in USD, in thousands Q4 2022 Q1 2023 Q2 2023 Q3 2023 202
Slide 40: Calculation of Lease Adjusted Net Leverage and Lease Adjusted Leverage
Appendix Non-GAAP Financial Measures – Calculation of Lease Adjusted Net Leverage and Lease Adjusted Leverage Trailing Twelve Months ended in dollars, in millions September 30, 2023 Cash $ 189.0 Total Principal Debt 347.9 Net Debt 158.9 Adj EBITDA (1) 110.4 Lease Payments (2) (37.8) Adj EBITDA less
Slide 41: Non-GAAP Financial Measures – Reconciliation of Net Debt
Appendix Non-GAAP Financial Measures – Reconciliation of Net Debt Amounts in thousands September 30, 2023 December 31, 2022 Total long-term debt, including current portion $ 333,086 $ 349,580 Deferred financing costs 14,837 16,844 Total principal $ 347,923 $ 366,424 Less: Cash and cash equivalents $