Century Casinos, Inc. · NASDAQ:CNTY
Century Casinos — Investor Presentation (March 2022)
36 slides from Century Casinos's investor presentation, March 2022
Slide 1: Investor Presentation
INVESTOR PRESENTATION Peter Hoetzinger, Co CEO & President March 2022 \\FIRMWIDE.CORP.GS.COM\IBDROOT\PROJECTS\IBD-NY\CHACMA2021\682151_1\_Graphics\Photoshop\Century Casinos PPT Cover Options B.psd
Slide 2: Key Investment Highlights
Key Investment Highlights n Founded in 1992, Century Casinos is a multi-channel gaming company with focus on drive-to US markets n Casinos located in attractive markets with limited new competition risk n Regional and local customer base. Majority of revenue comes from guests who live within a one-h
Slide 3: Multi-Channel North American Gaming Company
Multi-Channel North American Gaming Company Land-based Casinos (USA and Canada) Reno, Nevada Use land-based casinos to get more online Pending Acquisition customers. The online world and the land- based casino world co-exist successfully. Racinos and On/Off-Track Betting Give online customers a bett
Slide 4: Century's Property Footprint
Century’s Property Footprint Diversified Local Gaming Footprint in Drive-to Markets Century Downs Century Casino Century Casino Century Mile Casinos Poland Locations: Racetrack & Casino St. Albert & Hotel Edmonton Racetrack & Casino • Warsaw at Marriott Hotel • Warsaw at Hilton Hotel • Wawa at LIM C
Slide 5: Overview of Century Properties
Overview of Century Properties Mountaineer 2 Casinos and 2 Century Casino 8 Properties Century Casino & Casino, Century Casino Century Casino Racing Nugget Casino Property & Hotel Cripple throughout Hotel Central City Racetrack & Cape Girardeau Caruthersville Entertainment Resort Creek Poland Resort
Slide 6: Diversified Gaming Company with Focus on Local and Regional US markets
Diversified Gaming Company with Focus on Local and Regional US markets Pending new acquisition in Nevada Pro forma # of Properties 17 Properties 1 Property 18 Properties # of Slot Machines 6,282 859 7,141 # of Table Games 233 29 262 # of Hotel Rooms 430 1,382 1,812 Canada Canada Poland Poland 9% 7%
Slide 7: Diverse Regional Exposure in Stable, Mature Gaming Markets in the US
Diverse Regional Exposure in Stable, Mature Gaming Markets in the US Colorado GGR n Exposure to attractive regional markets proven to be resilient throughout the pandemic $ 842 $ 976 $ 811 $ 828 $ 834 — 2021 GGR levels materially up versus 2019 across $ 560 all markets served in the U.S. — Sustainab
Slide 8: Stable Historical Performance of Regional GGR in the US
Stable Historical Performance of Regional GGR in the US Stable growth since 2001 and resilient to macroeconomic changes including oil prices and CPI U.S. Regional GGR ($bn) $50.0 $ 47 $ 39 $ 40 $ 35 $ 37 $40.0 $ 32 $ 34 $ 34 $ 31 $ 30 $ 29 $ 30 $ 31 $ 31 $ 27 $ 29 $ 29 $30.0 $ 24 $ 24 $ 26 $ 22 $20.
Slide 9: US Operations Overview
US OPERATIONS OVERVIEW
Slide 10: Colorado Region Market Overview and Asset Summary
Colorado Region Market Overview and Asset Summary Central City and Cripple Creek Asset Property Highlights Key Stats1 n Central City is located just 45 minutes west of Denver, Casino Sq. Footage 22,640 sq. ft Colorado n Easily accessible from highway I-70 Slot Machines 438 n Voted Denver’s Best Casi
Slide 11: Colorado Region Results
Colorado Region Results Central City and Cripple Creek Net Operating Revenue 14,0 12,1 12,5 12,0 11,3 10,4 10,0 9,4 9,2 9,5 8,8 8,1 7,8 8,0 6,7 6,0 4,0 2,0 2,0 0,0 Q1 Q2 Q3 Q4 2019 2020 2021 Adjusted EBITDA 6,0 5,0 5,0 4,8 4,8 3,9 4,0 3,4 3,1 3,0 2,2 2,3 1,9 2,0 1,6 0,8 1,0 0,3 0,0 Q1 Q2 Q3 Q4 10 20
Slide 12: Missouri Region Market Overview and Asset Summary
Missouri Region Market Overview and Asset Summary Cape Girardeau and Caruthersville Asset Property Highlights Key Stats1 n Cape Girardeau is situated in downtown Cape Girardeau Casino Sq. Footage 41,530 sq. ft n The property opened in October 2012 with the 13th and final gaming license in Missouri S
Slide 13: Missouri Region Results
Missouri Region Results Cape Girardeau and Caruthersville Net Operating Revenue 40,0 34,1 35,0 31,0 29,7 30,0 28,3 24,3 23,0 22,9 23,9 23,7 24,5 25,0 21,6 20,0 15,0 9,6 10,0 5,0 0,0 Q1 Q2 Q3 Q4 2019 2020 2021 Adjusted EBITDA 20,0 18,0 17,2 15,4 16,0 13,4 14,0 12,8 12,0 10,4 9,7 10,0 8,7 7,9 7,9 8,0
Slide 14: West Virginia Region Market Overview and Asset Summary
West Virginia Region Market Overview and Asset Summary Mountaineer Casino Asset Property Highlights Key Stats1 n Mountaineer Casino is the area’s only full-service Casino Sq. Footage 72,380 sq. ft resort and casino featuring world-class thoroughbred racing, an 18-hole golf course and 5,000-seat conv
Slide 15: West Virginia Region Results
West Virginia Region Results Mountaineer Casino Net Operating Revenue 35,0 32,7 32,7 31,7 31,1 30,2 30,6 30,0 28,4 28,7 25,1 24,5 23,9 25,0 20,0 15,0 12,2 10,0 5,0 0,0 Q1 Q2 Q3 Q4 2019 2020 2021 Adjusted EBITDA 7,0 6,2 5,9 5,9 6,0 5,4 4,8 4,8 5,0 4,5 4,5 4,0 3,6 3,3 3,0 1,8 2,0 1,0 0,0 -1,0 -0,5 Q1
Slide 16: The Nugget Casino Resort, NV (Pending Acquisition)
THE NUGGET CASINO RESORT, NV (PENDING ACQUISITION)
Slide 17: Transaction Overview
Transaction Overview n On February 23, 2022, Century announced a definitive agreement with Marnell Gaming, LLC to acquire 100% of Nugget OpCo and 50% of Nugget PropCo for a total of $195 million ― Represents a blended purchase price multiple of ~7.8x LTM 12/31/2021 Adj. EBITDA and is expected to clo
Slide 18: Nugget Casino Resort Property Overview
Nugget Casino Resort Property Overview Key Highlights Property Stats n The newly remodeled Nugget Casino is conveniently located Owned Land Acreage Casino Sq. Ft. on route I-80 with easy access from the airport 29 50,200 n The full-service resort boasts a large gaming floor, two hotel towers, a conv
Slide 19: Reno, Sparks, NV Competitive Landscape
Reno, Sparks, NV Competitive Landscape 18
Slide 20: Top Ten Reasons Why We Love The Nugget
Top Ten Reasons Why We Love The Nugget Existing operation - Long operating history - No development risk - No construction delays Great location at I-80 - Unparalleled exposure - 260,000 cars daily at nearby intersection Largest convention facility of any Reno hotel casino - Sufficient number of roo
Slide 21: Reno-Sparks Developments Driving Significant Untapped Potential
Reno-Sparks Developments Driving Significant Untapped Potential in the Current Market Area Highlights Reno-Sparks Average Per Room Per Day Statistics n Reno, known as the “Biggest Little City in the World” is $222 $215 famous for its casinos, but is also known as a $196 destination for outdoor recre
Slide 22: Continued Growth of Reno-Sparks Economy
Continued Growth of Reno-Sparks Economy Reno-Sparks Unemployment Rate 25.0 % 20.0 % 15.0 % 10.0 % 5.0 % 2.9 % 0.0 % 2016 2017 2018 2019 2020 2021 Washoe County Population Forecast Washoe County Personal Income Per Capita 3.94% C AGR: R : 1.04% ’21-’26 $ 87,751 ’21-’26 C A G $ 84,352 559,373 $ 81,082
Slide 23: Further Growth Drivers
FURTHER GROWTH DRIVERS
Slide 24: Century is Well-Positioned for the Next Stage of Growth
Century is Well-Positioned for the Next Stage of Growth Century’s operating expertise has provided opportunities to make small yet meaningful changes that have long-term impact Recently Completed or in-Process Organic Growth Projects § Partnerships with established iGaming and sports betting operato
Slide 25: Century is Well-Positioned for the Next Stage of Growth
Century is Well-Positioned for the Next Stage of Growth Missouri Projects Caruthersville § Century purchased the neighboring two-story hotel and plans extensive renovations Caruthersville Non-Floating — The new Century hotel will be the only hotel in downtown Facility Rendering Caruthersville § Caru
Slide 26: Key Financials
5 KEY FINANCIALS
Slide 27: Summary of Financing Transaction
Summary of Financing Transaction New term loan and revolver n Commitment from Goldman Sachs for a $350 million 7-year Senior Secured Term Loan (and a $30 million 5-year Senior Secured Super Priority Revolver) n Together with $50 million of existing balance sheet cash from Century, $400 million of av
Slide 28: Summary of Pro Forma Historical Financial Performance
Summary of Pro Forma Historical Financial Performance In millions Key Highlights Revenue § Stable revenue growth across Century and the Nugget with $489,1 strong recovery post-COVID $100,4 § Consistent Adj. EBITDA growth combined with margin $361,2 expansion $307,3 $56,9 $254,4 $234,8 $89,1 $80,7 $8
Slide 29: Broad Geographic and Asset Diversification
Broad Geographic and Asset Diversification No single property accounts for more than 25% of property Adj. EBITDA n Acquisition of the Nugget significantly increases Century’s scale n 25% increase in revenue n 33% increase in Adj. EBITDA n Further diversifies earnings on geographic (7 markets across
Slide 30: Appendix
APPENDIX
Slide 31: Century Has a Proven Track Record of Consistent EBITDA Stability
Century Has a Proven Track Record of Consistent EBITDA Stability and is Poised for Future Growth Decade plus of steady Adj. EBITDA growth with attractive opportunities to accelerate growth with new acquisition Pro 2010 - 2017 2018 - Present $ in millions Forma1 ü Increased Canadian footprint through
Slide 32: Impact of COVID-19 and Performance Since Reopening
Impact of COVID-19 and Performance Since Reopening Impact of COVID-19 Post-Reopening Performance n To comply with government mandates as a result of the n Century’s geographic diversity with locations in hyperlocal, COVID-19 pandemic, Century closed casinos, hotels and drive-to markets with a loyal
Slide 33: Successful ERI/CZR Assets Integration
Successful ERI/CZR Assets Integration Improved performance immediately after take-over Selected key operational changes: § Refreshed slot floors, replacing ~5% of the worst performing slot machines with new machines and redesigned the gaming floor layout as well as VIP area and smoking section § Int
Slide 34: Poland (Europe)
Poland (Europe) Our casino locations • Population 38.4 MM 1 Marriot Warsaw • GDP growth 5.3% 1 Hilton Warsaw • Limited number of licenses 1 Wawa Casino at LIM Center Hotel President Bielsko – 2 Biala ~200 miles 3 Park Inn Katowice 4 Dwor Kosciuszko Krakow 5 Double Tree Wroclaw Manufaktura Entertainm
Slide 35: Experienced Management Team with Significant Gaming Operating Expertise
Experienced Management Team with Significant Gaming Operating Expertise Century’s management team has combined 100+ years of experience and has operated 100+ casinos in 20+ countries Erwin Haitzmann Peter Hoetzinger Margaret Stapleton Andreas Terler Timothy Wright Chairman of the Board, Co- Vice Cha
Slide 36: Non-GAAP Financial Measures
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 transactions, pre-