Century Casinos, Inc. · NASDAQ:CNTY
Century Casinos — Roth Conference, Dana Point, California (March 2012)
33 slides from Century Casinos's conference presentation, Mar 12, 2012
Slide 1: Corporate Presentation
CORPORATE PRESENTATION March 2012 Peter Hoetzinger, Co-CEO & President
Slide 2: Safe Harbor Statement
Safe Harbor Statement Century Casinos, Inc. (the "Company") has prepared this presentation for the sole purpose of providing information relating to the Company. The content of this presentation is based on public information and on data provided by the Company's management. No reliance may be place
Slide 3: International Casino Entertainment Company
International Casino Entertainment Company § Develop and operate mid-market, regional casinos in regulated markets world-wide § 24 casino operations (approx. 3,000 slots and 200 tables): – 4 in North America (US and Canada) – 7 in Eastern Europe (Poland) – 1 in the Caribbean (Aruba) – 12 on cruise
Slide 4: Investment Highlights
Investment Highlights § Established facilities in key markets with high barriers to entry (limited number of casino licenses in Canada and Poland) § Strong balance sheet (net cash position) § Expansion opportunities in established as well as new geographies § As general economic conditions impro
Slide 5: Business Review
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Slide 6: International Diversification
International Diversification Edmonton Calgary Denver Colorado Springs Eastern Europe (7 Casinos in Poland) Aruba Land-‐based Casinos (12) Ship-‐based Casinos (12) 6
Slide 7: Colorado Casino Market
Colorado Casino Market § We are in 2 out of the 3 cities that allow casino gaming (outside of Indian reservations). Historic mining towns (Cripple Creek and Central City) have developed into tourist attractions. § Regulatory environment is favorable – $100 betting limits – All casino games availab
Slide 8: Colorado Hotel Casinos
Colorado Hotel Casinos Central City Cripple Creek Edmonton (near Denver, (near Colorado Alberta, Canada CO) Springs, CO) Ownership Wholly Owned Wholly Owned Opened/Acquired 2006 1993 Slot Machines 507 (100% TITO) 437 (100% TITO) Table Games 12 6 Hotel Rooms 26 21 Parking Garage Surface Restaurants/B
Slide 9: Alberta, Canada, Casino Market
Alberta, Canada, Casino Market § Limited number of casino licenses in Alberta – high barrier to entry § Alberta Gaming & Liquor Commission (AGLC) is investment partner – Revenue split provides incentive for AGLC to improve our business – Upgrading slot machines at both properties § Calgary Casino
Slide 10: Canada Hotel Casinos
Canada Hotel Casinos Calgary Edmonton Alberta, Canada Alberta, Canada Wholly Owned: Wholly Owned: Ownership AGLC split AGLC split Acquired Jan 2010 Opened/Acquired 2006 Re-Open Nov 2010 Gaming Machines 529 (100% TITO) 720 (100% TITO) Table Games 18 35 Hotel Rooms -- 26 Parking Surface Heated Garage
Slide 11: International Casinos: Poland
International Casinos: Poland § Casinos Poland Ltd. has a 56% share of the Polish Casino Market § Limited number of casino licenses – high barrier to entry § Locations – Warsaw, Katowice, Wroclaw, Gdynia, Sosnowiec. Several additional licenses pending. – Operating at high-end hotel venues in citi
Slide 12: International Casinos: Aruba
International Casinos: Aruba § December 2010: signed long-term management agreement with Carlson Radisson Hotel Group – Assist in managing the casino and receive management fee – No investment required from us § Casino currently undergoing an equipment and interior design upgrade § Radisson Hotel
Slide 13: International Casinos: Cruise Ships
International Casinos: Cruise Ships § Largest independent operator of casinos onboard luxury cruise ships § Opportunistic approach towards cruise lines with affluent passengers – Target smaller cruise lines with one to ten ships – Cruise lines with more ships tend to manage their own casino busine
Slide 14: International Casinos
International Casinos Aruba Poland Cruise Ships Antilles, Caribbean CNTY has 33.3% stake in Management contract 100% owned and operated Ownership Casinos Poland Ltd. with Radisson hotel under concession contracts Opened/Acquired March 2007 December 2010 Varies # of Casinos 7, +1 in development 1 12,
Slide 15: Revenue Diversification per Casino
Revenue Diversification per Casino Property-Level Revenue Diversification: Ships & Aruba 9% Edmonton 32% Central City 26% Calgary Cripple Creek 14% 19% 15
Slide 16: EBITDA Diversification per Casino
EBITDA Diversification per Casino Property-Level Adj. EBITDA Diversification: Ships & Aruba 5% Central City 25% Edmonton 48% Cripple Creek 20% Calgary 2% 16
Slide 17: Consolidated Financials
Consolidated Financials
Slide 18: Q3-2011 Results at a Glance
Q3-2011 Results at a Glance (as of Sep 30, 2011 - in USD) • Market Cap: $68.3 mil (as of March 2, 2012) Capital Structure • Shares outstanding: 23.8 mil • Largest Holders: Management (16%), Wells Fargo (12%) • Cash/Cash equivalents: $21.3 mil -- Net Cash: $11.9 mil Cash / Debt / CapEx • Debt: $9.4 m
Slide 19: Financial Charts: Revenue by Source
Financial Charts Revenue by Source Gaming F&B, Hotel, Bowling Other 19
Slide 20: Net Operating Revenue
Financial Charts Net Operating Revenue $25 $20 $18.0 $18.1 $17.1 $16.0 $15.6 $14.9 $14.1 (in millions) $15 $10 $5 $0 Q1 Q2 Q3 Q4 2010 2011 2010 2011 2010 2011 2010 20
Slide 21: Adj. EBITDA
Financial Charts $3.5 Adj. EBITDA $3.1 $3.0 $2.8 $2.5 $2.4 $2.5 $2.0 $2.0 (in millions) $2.0 $1.5 $1.4 $1.0 $0.5 $0.0 Q1 Q2 Q3 Q4 2010 2011 2010 2011 2010 2011 2010 21
Slide 22: Adj. EBITDA Margin
Financial Charts Adj. EBITDA Margin $3.5 0.25 $3.1 $3.0 $2.8 $2.5 0.2 $2.4 $2.5 $2.0 $2.0 (in millions) 0.15 $2.0 $1.5 $1.4 0.1 $1.0 0.05 $0.5 $0.0 0 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 Q3 2011 EBITDA Margin 22
Slide 23: EPS
Financial Charts EPS $0.07 $0.06 $0.06 $0.05 $0.04 $0.03 $0.03 $0.03 $0.02 $0.02 $0.01 $0.01 $0.01 $0.00 -$0.01 -$0.01 -$0.02 Q1 Q2 Q3 Q4 2010 2011 2010 2011 2010 2011 2010 23
Slide 24: Debt / Adj. EBITDA
Financial Charts Debt / Adj. EBITDA 5x 4.5x 4x 3x 2.1x 2x 1.7x 1.0x 1x 0x 2008 2009 2010 TTM 24
Slide 25: Summary & Outlook
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Slide 26: Operational Performance
Operational Performance § Internationally diversified portfolio is profitable and growing despite difficult economy – poised for further growth as general economy improves § Earnings from Operations more than doubled (+108%) in Q3 § 7th consecutive quarter with increases in both revenues and net
Slide 27: Outlook
Outlook § Expect to report strong results for fourth quarter 2011 (on March 29) § Additional cruise ship casino under contract (opening Q2-2012) § Debt refinancing underway with substantial savings potential § Globally experienced management team § Remain location flexible to undertake projects
Slide 28: Contact Information
CONTACT INFORMATION Peter Hoetzinger Co CEO & President peter.hoetzinger@cnty.com US: + 1 (719) 689 5813 Europe: + 43 664 355 3935
Slide 29: Q & A Session
Q & A Q & A Session 29
Slide 30: Annexures
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Slide 31: 2010 Transactions
2010 Transactions Land § Calgary - January acquisition of the Silver Dollar Casino for $11.5 mil - November $3 mil re-launch under Century brand § Cripple Creek, CO - September re-launch under Century brand § Central City, CO - December relocation of Deli and Poker room § Aruba - December agreem
Slide 32: Land Properties - Characteristics
Land Properties - Characteristics § Mid-size casinos, catering primarily to local customers with some tourism § Key Criteria – Well regulated markets with robust casino legislation – Immediate catchment area – residents within 60-90 minutes – Economic terms (gaming tax structure, investment requir
Slide 33: Management Team
Management Team § Erwin Haitzmann: Co Founder, Chairman of the Board, Co CEO 35 years casino experience § Peter Hoetzinger: Co Founder, Vice Chairman of the Board, Co CEO & President 25 years casino experience § Margaret Stapleton Executive VP of Finance § Timothy Wright Vice President Accountin
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