Century Casinos, Inc. · NASDAQ:CNTY
Century Casinos — Q1 2004 Earnings Presentation
27 slides from Century Casinos's earnings presentation, May 14, 2004
Slide 1: Review of Financial Results for Quarter Ended March 31, 2004
CENTURY CASINOS CENTURY CASINOS, INC. Review of Financial Results of Operations and Financial Condition as of and for the quarter ended March 31, 2004 May 14, 2004 1
Slide 2: Disclosure
CENTURY CASINOS Disclosure This presentation may contain forward-looking statements that involve risks and uncertainties. Among the other important factors which could cause actual results to differ materially from those in the forward-looking statements are economic, competitive, and governmental f
Slide 3: Balance Sheet
CENTURY CASINOS Balance Sheet Total Assets $52.1 million as of March 31, 2003 compared to $56.8 million as of March 31, 2004: $2.0 million of the increase in assets during the twelve trailing months ended March 31, 2004 is related to Womacks new slot accounting system and new slot machines.
Slide 4: Balance Sheet: Long-Term Debt
CENTURY CASINOS , Balance Sheet Long -Term Debt $11.71 million was available under the RCF as of March 31, 2004. Long-term debt breakdown: Dollar amounts in As of March 31, thousands (unaudited (unaudited)) 2002 2003 2004 Wells Fargo Debt $11,873 $13,702 $10,683 ABSA Debt 2,464 3,032 2,666 Othe
Slide 5: Debt/Equity Mix
CENTURY CASINOS Debt/Equity Mix As of March 31, 2004 Industry Average 39% 61% 37% 63% Total Debt Equity Source: Reuters.com, May 11, 2004 Equity $28.4 million as of March 31, 2003 compared to $34.8 million as of March 31, 2004. 12.7% CAGR since 1994. As of March 31, 2004, book value per sh
Slide 6: Operating Results
CENTURY CASINOS Operating Results Dollar amounts in thousands (unaudited (unaudited)) $8,000 $6,000 $4,000 $2,000 $0 1st Qtr 2002 1st Qtr 2003 1st Qtr 2004 Net Operating Revenue $6,892 $7,381 $8,130 Earnings from Operations $1,973 $1,698 $1,696 Net Earnings (1) $925 $755 $904 EBITDA (2) $2,578 $2,33
Slide 7: Earnings per Share
CENTURY CASINOS Earnings per Share 1st Qtr 1st Qtr 1st Qtr 2002 2003 2004 Basic Earnings per Share $0.07 $0.06 $0.07 Weighted Average Common 13,728,784 13,579,411 13,681,438 Shares Outstanding $0.08 $0.06 Basic Earnings Per $0.04 Share $0.02 $0.00 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr 2002 2003 2004 7
Slide 8: Cash Flows
CENTURY CASINOS Cash Flows Operating Free Cash Flow Operating free cash flow is cash provided from operating activities less capital expenditures. Dollar amounts in thousands (unaudited) unaudited) 1st Qtr 2002 1st Qtr 2003 1st Qtr 2004 Cash flow from operations $1,190 $809 $1,257 Capital expend
Slide 9: Outstanding Shares
CENTURY CASINOS Outstanding Shares Outstanding Shares of Common Stock 13,575,964 as of March 31, 2003 and 13,681,900 as of March 31, 2004. Treasury Stock 44,200 shares were repurchased on the open market since the first quarter of 2003 at an average price per share of $2.29. 20,000 shares
Slide 10: Stock Price Performance
CENTURY CASINOS Stock Price Performance CNTY, NASDAQ & S&P 500 2000-2004 300% 250% 200% 150% 100% CNTY 50% 0% S&P 500 -50% NASDAQ -100% Jan-00 Jul-00 Jan-01 Jul-01 Jan-02 Jul-02 Jan-03 Jul-03 Jan-04 ^ Percentage Change 10
Slide 11: Contribution by Segment
CENTURY CASINOS Contribution by Segment Net Operating Revenues Net Operating Revenues (1) 2003 2004 33% 4% 5% 41% 54% 63% Colorado South Africa Cruise Ships Colorado South Africa Cruise Ships (1) Shown net operating revenues exclude corporate segment’s net operating revenues of $27 thousand. 11
Slide 12: Colorado Segment
CENTURY CASINOS Colorado Segment Womacks Casino and Hotel 625 slot machines 6 table games 21 hotel rooms 1 restaurant approximately 200 employees 12
Slide 13: Womacks Casino and Hotel Operating Results
WOMACKS CASINO AND HOTEL Operating Results Dollar amounts in thousands (unaudited (unaudited)) $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 $0 1st Qtr 2002 1st Qtr 2003 1st Qtr 2004 Net Operating Revenue $5,193 $4,644 $4,345 Earnings from Operations $2,284 $1,695 $1,477 Net Earnings $1,191 $1,038 $959
Slide 14: Womacks Market Data
WOMACKS CASINO AND HOTEL Dollar amounts in thousands, except for average win per day (unaudited) (unaudited) Market Data 1st Qtr 2002 1st Qtr 2003 1st Qtr 2004 Gross Gaming Revenue $5,825 $5,293 $4,875 Market Share of Cripple Creek 17.47% 16.14% 14.32% Market Average Number of Slot Machines 612 66
Slide 15: Womacks Operational Results and Management's Focus
WOMACKS CASINO AND HOTEL Operational Results and Management’s Focus The covered parking garages provided by two of our competitors gives them somewhat of an advantage during the winter. Both competitors also have a large number of hotel rooms, providing them with an advantage, especially during i
Slide 16: Womacks Operational Results and Management's Focus (continued)
WOMACKS CASINO AND HOTEL Operational Results and Management’s Focus (continued) Competitors’ actions. The Company’s marketing strategy is tailored to compete by promoting the Gold Club in which patrons can earn rewards that can be redeemed for discounted or free meals, rooms, cash and other priz
Slide 17: South African Segment
CENTURY CASINOS South African Segment Caledon Hotel, Spa & Casino 275 slot machines 8 table games 92 hotel rooms 3 restaurants 2 bars conference facilities equestrian center approximately 340 employees South African Corporate Administration 17
Slide 18: Caledon Operating Results (in USD)
CALEDON HOTEL, SPA & CASINO Operating Results (in USD) Dollar amounts in thousands (unaudited (unaudited)) $3,500 $3,000 $2,500 $2,000 $1,500 $1,000 $500 $0 1st Qtr 2002 1st Qtr 2003 1st Qtr 2004 Net Operating Revenue $1,534 $2,407 $3,320 Earnings from Operations $282 $544 $835 Net Earnings $47 $221
Slide 19: Caledon Operating Results (in Rand)
CALEDON HOTEL, SPA & CASINO Operating Results (in Rand) Rand amounts in thousands (unaudited (unaudited)) R 24,000 R 20,000 R 16,000 R 12,000 R 8,000 R 4,000 R0 1st Qtr 2002 1st Qtr 2003 1st Qtr 2004 Net Operating Revenue R 17,621 R 19,866 R 22,296 Earnings from Operations R 3,329 R 4,454 R 5,593 Ne
Slide 20: Caledon Gross Gaming Revenue
CALEDON HOTEL, SPA & CASINO Gross Gaming Revenue Dollar and Rand amounts in thousands, except for average average win per day (unaudited (unaudited)) 1st Qtr 2002 1st Qtr 2003 1st Qtr 2004 Gross Gaming Revenue (in USD) $1,281 $1,904 $2,778 Gross Gaming Revenue (in Rand) R14,721 R15,723 R18,672 Ave
Slide 21: Caledon Operational Results and Management's Focus
CALEDON HOTEL, SPA & CASINO Operational Results and Management’s Focus Conferences and trade shows held at the resort could play a significant role in the operation of the hotel, but have not done so recently. Management is attempting to gain additional exposure in this area through marketing eff
Slide 22: Cruise Ship Segment
CENTURY CASINOS Cruise Ship Segment Cruise Ships Silverseas (4 ships) 74 slot machines 14 table games 18 employees The World of ResidenSea 20 slot machines 3 table games 2 employees Oceania Cruises (2 ships) 72 slot machines 10 table games 10 employees 22
Slide 23: Cruise Ships Operating Results
CRUISE SHIPS Operating Results Dollar amounts in thousands (unaudited (unaudited)) $500 $400 $300 $200 $100 $0 ($100) 1st Qtr 2002 1st Qtr 2003 1st Qtr 2004 Net Operating Revenue $105 $330 $438 Earnings from Operations ($4) $101 $92 Net Earnings ($3) $63 $89 EBITDA $9 $116 $109 The cruise ship con
Slide 24: Casino Millennium
CASINO MILLENNIUM Casino Millennium 38 slot machines 15 table games approximately 70 employees In January 2004, the Company acquired an additional 40% interest in Casino Millennium, bringing its total ownership to 50%. Casino Millennium operational results are accounted for under the equity
Slide 25: Casino Millennium Operating Results
CASINO MILLENNIUM Operating Results Dollar and CZK amounts in thousands (unaudited (unaudited)) $700 CZK 18,000 $600 CZK 15,000 $500 CZK 12,000 $400 CZK 9,000 $300 $200 CZK 6,000 $100 CZK 3,000 $0 CZK 0 1st Qtr 2004 1st Qtr 2004 Net Operating Revenue $606 Net Operating Revenue CZK 15,955 Earnings fr
Slide 26: Potential Growth Opportunities
CENTURY CASINOS Potential Growth Opportunities In September 2003, Century Resorts Alberta, a 55% owned subsidiary of Century Resorts International, applied for a gaming license in Edmonton, Alberta, Canada. The proposed project, The Celebrations Casino and Hotel, is planned to include a casino,
Slide 27: Potential Growth Opportunities (continued)
CENTURY CASINOS Potential Growth Opportunities (continued) In Cripple Creek, having spanned the alley behind the existing casino, Womacks is positioned to continue building out the casino on a single level to the rear of the property to Meyers Avenue. This could result in Womacks having the larg