Slide 1: Century Casinos Financial Results Q3 2017
CENTURY CASINOS Financial Results Q3 2017 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: Forward-Looking Statements, Business Environment and Risk Factors continued
Forward-Looking Statements, Business Environment and Risk Factors continued 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 m
Slide 4: Q3 2017 Net Operating Revenue by Reportable Segment and Operating Segment
Q3 2017 Net Operating Revenue by Reportable Segment and Operating Segment (in USD) Excluding Corporate and Other Operating Segment Ships & Other 3% Canada 37% Poland 38% SCCL Ships & CRA Other 0% 3% 13% CSA 5% CAL CPL 38% 5% CDR 12% CBS United States CRC CTL CMR 2% 22% 9% 13% 0% 4
Slide 5: Q3 2017 Earnings from Operations by Reportable Segment and Operating Segment
Q3 2017 Earnings from Operations by Reportable Segment and Operating Segment (in USD) Excluding Corporate and Other Operating Segment Ships & Other Poland 2% 11% Ships & SCCL; -1%Other 3% United States Canada CPL 11% 30% CRA 24% 57% CRC 16% CSA 11% CAL 0% CTL 14% CMR 0% CDR 21% CBS 0% 5
Slide 6: Q3 2017 Net Income Attributable to Shareholders by Segment
Q3 2017 Net Income Attributable to Century Casinos, Inc. Shareholders by Reportable Segment and Operating Segment (in USD) Excluding Corporate and Other Operating Segment Ships & Other Poland 2% 10% Ships & United States SC… Other 4% 29% CPL 10% Canada 59% CRA 36% CRC 15% CTL 14% CSA 12% CMR 0% CBS
Slide 7: Q3 2017 Adjusted EBITDA by Reportable Segment and Operating Segment
Q3 2017 Adjusted EBITDA* by Reportable Segment and Operating Segment (in USD) Excluding Corporate and Other Operating Segment Ships & Other 3% Poland 16% SCCL Ships & Canada Other 0% 3% CRA 53% CPL 16% 21% United States 28% CSA CRC 9% 14% CAL 2% CTL CMR CBS CDR 14% 0% 0% 21% *Adjusted EBITDA is a no
Slide 8: Net Operating Revenue per Quarter
Net Operating Revenue per Quarter (in USD) 45,0 41,0 40,0 37,9 37,3 36,4 36,3 35,2 34,5 35,0 33,2 33,5 31,6 31,3 31,9 30,4 29,1 28,8 28,1 29,4 30,0 28,3 25,0 20,0 18,0 15,0 10,0 5,0 0,0 Q1 Q2 Q3 Q4 2013 2014 2015 2016 2017 8
Slide 9: Balance Sheet
Balance Sheet (Selected Information in USD) In millions (except BVPS) September 30, 2017 December 31, 2016 Change Total Assets 241.3 217.8 11% Book Value per Share* 6.14 5.41 14% Net Debt** 14.3 17.2 (17%) *Book Value per Share is defined as total Century Casinos, Inc. shareholders’ equity divided b
Slide 10: Income Statement
Income Statement (Selected Information in USD) In millions (except EPS) Q3 2017 Q3 2016 Change Net Operating Revenue 41.0 34.5 19% Earnings from Operations 4.8 3.8 25% Net Earnings Attributable to Century Casinos, Inc. Shareholders 7.6 1.9 304% Adjusted EBITDA* 7.5 6.3 20% Basic Earnings per Share 0
Slide 11: Constant Currency Results (in USD)
Constant Currency Results (in USD) In millions Q3 2017 Q3 2016 Change Net Operating Revenue as reported (GAAP) 41.0 34.5 19% Foreign currency impact vs. 2016 (1.7) Net Operating Revenue constant currency (non- GAAP)* 39.4 34.5 14% Earnings from Operations as reported (GAAP) 4.8 3.8 25% Foreign curre
Slide 12: Constant Currency Results (in USD)
Constant Currency Results (in USD) In millions Q3 2017 Q3 2016 Change Net Earnings Attributable to Century Casinos, Inc. Shareholders as reported (GAAP) 7.6 1.9 304% Foreign currency impact vs. 2016 0.0 Net Earnings Attributable to Century Casinos, Inc. Shareholders constant currency (non-GAAP)* 7.7
Slide 13: Debt to Adjusted EBITDA
Debt to Adjusted EBITDA* (in USD) As of September 30, 2017 and December 31, 2009-2016 4x 3,0x 3x 2,7x 2,2x 2,2x 2,0x 2x 1,7x 1,6x 1x 0,8x 0,3x 0x 2009 2010 2011 2012 2013 2014 2015 2016 2017 *Debt to Adjusted EBITDA is calculated by dividing the Company’s trailing twelve-month Adjusted EBITDA by the
Slide 14: Q3 Highlights – Canada
Q3 Highlights – CANADA (Selected Information in CAD) In millions Q3 2017 Q3 2016 Change Net Operating Revenue 19.2 15.7 22% Operating Costs and Expenses 14.3 12.3 16% Earnings from Operations 4.9 3.4 44% Net Earnings Attributable to Century Casinos, Inc. Shareholders 3.5 1.9 90% Adjusted EBITDA* 6.1
Slide 15: Q3 Highlights – Canada: Century Resorts Alberta
Q3 Highlights – CANADA (Selected Information in CAD) CENTURY RESORTS ALBERTA In millions Q3 2017 Q3 2016 Change Net Operating Revenue 6.6 6.5 2% Operating Costs and Expenses 4.5 4.8 (6%) Earnings from Operations 2.1 1.7 21% Net Earnings Attributable to Century Casinos, Inc. Shareholders 2.1 1.1 90%
Slide 16: Q3 Highlights – Canada: Century Casino St. Albert
Q3 Highlights – CANADA (Selected Information in CAD) CENTURY CASINO ST. ALBERT In millions Q3 2017 * Net Operating Revenue 2.9 Operating Costs and Expenses 2.0 Earnings from Operations 0.9 Net Earnings Attributable to Century Casinos, Inc. Shareholders 0.7 Adjusted EBITDA** 1.0 Adjusted EBITDA Margi
Slide 17: Q3 Highlights – Canada: Century Casino Calgary
Q3 Highlights – CANADA (Selected Information in CAD) CENTURY CASINO CALGARY In millions Q3 2017 Q3 2016 Change Net Operating Revenue 2.5 2.1 22% Operating Costs and Expenses 2.6 2.4 6% Earnings from Operations (0.0) (0.3) 88% Net Earnings Attributable to Century Casinos, Inc. Shareholders 0.0 (0.3)
Slide 18: Q3 Highlights – Canada: Century Downs Racetrack and Casino
Q3 Highlights – CANADA (Selected Information in CAD) CENTURY DOWNS RACETRACK AND CASINO In millions Q3 2017 Q3 2016 Change Net Operating Revenue 6.2 5.7 9% Operating Costs and Expenses 4.3 3.8 12% Earnings from Operations 1.9 1.9 1% Net Earnings Attributable to Century Casinos, Inc. Shareholders 0.7
Slide 19: Q3 Highlights – United States
Q3 Highlights – UNITED STATES (Selected Information in USD) In millions Q3 2017 Q3 2016 Change Net Operating Revenue 9.0 8.2 10% Operating Costs and Expenses 7.0 6.6 6% Earnings from Operations 2.1 1.6 27% Net Earnings Attributable to Century Casinos, Inc. Shareholders 1.3 1.0 28% Adjusted EBITDA* 2
Slide 20: Q3 Highlights – United States: Central City
Q3 Highlights – UNITED STATES (Selected Information in USD) CENTRAL CITY In millions Q3 2017 Q3 2016 Change Net Operating Revenue 5.2 4.8 8% Operating Costs and Expenses 4.3 3.9 8% Earnings from Operations 1.0 0.9 9% Net Earnings Attributable to Century Casinos, Inc. Shareholders 0.6 0.6 9% Adjusted
Slide 21: Q3 Highlights – United States: Cripple Creek
Q3 Highlights – UNITED STATES (Selected Information in USD) CRIPPLE CREEK In millions Q3 2017 Q3 2016 Change Net Operating Revenue 3.8 3.3 14% Operating Costs and Expenses 2.7 2.6 4% Earnings from Operations 1.1 0.7 51% Net Earnings Attributable to Century Casinos, Inc. Shareholders 0.7 0.4 52% Adju
Slide 22: Q3 Highlights – Poland
Q3 Highlights – POLAND (Selected Information in PLN) In millions Q3 2017 Q3 2016 Change Net Operating Revenue 56.3 51.9 8% Operating Costs and Expenses 53.4 46.5 15% Earnings from Operations 2.9 5.4 (47%) Net Earnings Attributable to Century Casinos, Inc. Shareholders 1.4 3.0 (53%) Adjusted EBITDA*
Slide 23: Q3 Highlights – Corporate and Other
Q3 Highlights – CORPORATE AND OTHER (Selected Information in USD) In millions Q3 2017 Q3 2016 Change Net Operating Revenue 1.2 1.0 20% Operating Costs and Expenses 3.2 2.7 15% Earnings from Operations (2.0) (1.8) (12%) Net Earnings Attributable to Century Casinos, Inc. Shareholders 3.3 (1.3) 359% Ad
Slide 24: Q3 Highlights – Corporate and Other: Cruise Ships and Other
Q3 Highlights – CORPORATE AND OTHER (Selected Information in USD) CRUISE SHIPS AND OTHER In millions Q3 2017 Q3 2016 Change Net Operating Revenue 1.2 1.0 20% Operating Costs and Expenses 1.0 0.9 13% Earnings from Operations 0.2 0.1 68% Net Earnings Attributable to Century Casinos, Inc. Shareholders
Slide 25: Q3 Highlights – Additional Projects Under Development
Q3 Highlights – ADDITIONAL PROJECTS UNDER DEVELOPMENT Saw Close Casino Ltd. In June 2017, the Company acquired 100% of the outstanding common stock and the casino licenses held by Saw Close Casino Ltd. (“SCCL”). The Company plans to utilize the casino licenses to develop and operate a casino in Bath
Slide 26: 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 Calgary CAL Century Downs Racetrack and Casino CDR Century Bets! CBS Century Mile Racetrack and Casino CMR Century Casino & Hot
Slide 27: Appendix A – Non-GAAP Financial Measures
Appendix A – NON-GAAP FINANCIAL MEASURES The Company supplements its condensed consolidated financial statements prepared in accordance with U.S. generally accepted accounting principles (“US GAAP”) by using the following non-GAAP financial measures, which management believes are useful in properly
Slide 28: 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, amortization, non-controlling interest (earnings) losses and transaction
Slide 29: 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 revenue compared to prior period revenue using the prior period’s for
Slide 30: Reconciliation – Canada, Q3 2017
Appendix A – NON-GAAP FINANCIAL MEASURES Reconciliation of Adjusted EBITDA (in thousands) - CANADA For the three months ended September 30, 2017 Total in CAD CRA CSA CAL CDR CBS CMR Canada Net operating revenue $ 6,625 $ 2,930 $ 2,524 $ 6,180 $ 891 $ 0 $ 19,150 Net earnings (loss) attributable to Ce
Slide 31: Reconciliation – Canada continued, Q3 2016
Appendix A – NON-GAAP FINANCIAL MEASURES Reconciliation of Adjusted EBITDA (in thousands) – CANADA continued For the three months ended September 30, 2016 Total in CAD CRA CSA CAL CDR CBS CMR Canada Net operating revenue $ 6,527 $ 0 $ 2,076 $ 5,690 $ 1,374 $ 0 $ 15,667 Net earnings (loss) attributab
Slide 32: Reconciliation – United States
Appendix A – NON-GAAP FINANCIAL MEASURES Reconciliation of Adjusted EBITDA (in thousands) – UNITED STATES For the three months ended September 30, 2017 Total United in USD Central City Cripple Creek States Net operating revenue $ 5,235 $ 3,804 $ 9,039 Net earnings (loss) attributable to Century Casi
Slide 33: Reconciliation – Poland
Appendix A – NON-GAAP FINANCIAL MEASURES Reconciliation of Adjusted EBITDA (in thousands) – POLAND For the three months ended September 30, in PLN 2017 2016 Net operating revenue PLN 56,293 PLN 51,936 Net earnings (loss) attributable to Century Casinos, Inc. shareholders 1,398 2,985 Interest expense
Slide 34: Reconciliation – Corporate and Other
Appendix A – NON-GAAP FINANCIAL MEASURES Reconciliation of Adjusted EBITDA (in thousands) – CORPORATE AND OTHER For the three months ended September 30, 2017 Cruise Ships and Total Corporate in USD Other Saw Close Casino Corporate Other Other Net operating revenue $ 1,174 $ 0 $ 0 $ 1,174 Net earning
Slide 35: Reconciliation of Net Debt
Appendix A – NON-GAAP FINANCIAL MEASURES Reconciliation of Net Debt (in thousands) September 30, 2017 December 31, 2016 Amounts in thousands Total long-term debt, including current portion $ 58,299 $ 55,609 Deferred financing costs 291 412 Total principal $ 58,590 $ 56,021 Less: cash and cash equiva