CENTURY CASINOS, INC. 
By August14, 2013
PRESS RELEASE
Century Casinos, Inc. Announces SecondQuarter 2013Results
Colorado Springs, Colorado - August14, 2013- Century Casinos, Inc. (NASDAQ Capital Market® and Vienna Stock Exchange: CNTY) today announced its financial results for the threeand sixmonths ended June30, 2013.
SecondQuarter 2013Highlights*
· | Net operating revenue was $28.3million, a 59%increase compared to the three months ended June30, 2012. |
· | Adjusted EBITDA**was $3.9million, a 34%increase from the three months ended June30, 2012. |
· | Net earningswere$3.7million, a 219%increase from the three months ended June30, 2012. |
· | Earnings per share were$0.15, a200%increase from the three months ended June30, 2012. |
The period over period increases relate primarily to the inclusion of operating results from Casinos Poland, Ltd. (CPL) in the second quarter of 2013. In April 2013, the Company completed the purchase of an additional 33.3% ownership interest in CPL. The Company now owns a 66.6% ownership interest in CPL and consolidates CPL financial information as a majority-owned subsidiary for which the Company has a controlling financial interest. Prior to the acquisition of this additional interest in CPL, the Company owned 33.3% of CPL and accounted for the CPL ownership interest as an equity investment.
The period over period increases relate primarily to the inclusion of operating results from Casinos Poland, Ltd. (CPL) in the second quarter of 2013. In April 2013, the Company completed the purchase of an additional 33.3% ownership interest in CPL. The Company now owns a 66.6% ownership interest in CPL and consolidates CPL financial information as a majority-owned subsidiary for which the Company has a controlling financial interest. Prior to the acquisition of this additional interest in CPL, the Company owned 33.3% of CPL and accounted for the CPL ownership interest as an equity investment. | ||||||
For the Three Months | For the Six Months | |||||
Amounts in thousands, except per share data | Ended June 30, | Ended June 30, | ||||
Consolidated Results: | 2013 | 2012 | % Change | 2013 | 2012 | % Change |
Net operating revenue | $ 28,348 | $ 17,791 | 59% | $ 46,337 | $ 35,360 | 31% |
Earnings from operations | 2,083 | 1,695 | 23% | 4,129 | 3,267 | 26% |
Net earnings | 3,657 | 1,148 | 219% | 5,319 | 2,281 | 133% |
Adjusted EBITDA** | $ 3,863 | $ 2,886 | 34% | $ 7,101 | $ 5,645 | 26% |
Earnings per share: | ||||||
Basic | $ 0.15 | $ 0.05 | 200% | $ 0.22 | $ 0.10 | 120% |
Diluted | $ 0.15 | $ 0.05 | 200% | $ 0.22 | $ 0.09 | 144% |
Weighted average common shares: | ||||||
Basic | 24,128 | 23,890 | 24,128 | 23,884 | ||
Diluted | 24,209 | 24,060 | 24,183 | 24,055 | ||
*Amounts presented are rounded. As such, rounding differences could occur in period over period changes and percentages reported.
**Adjusted EBITDA is a Non-GAAP financial measure. See discussion and reconciliation of Non-GAAP financial measures in Supplemental Information below.
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We posted excellent results in the second quarter. The Casinos Poland acquisition is complete and has been immediately accretive to net operating revenue",said Erwin Haitzmann and Peter Hoetzinger, Co Chief Executive Officers of Century Casinos. "Even when excluding the one-time gain associated with the Casinos Poland acquisition, net earnings increased by 38% and earnings per share increased from 5 cents to 7 cents for the quarter. With a solid balance sheet, a book value per share of $4.98 and borrowing capacity under the credit agreement withtheBank of Montreal we are well positioned for further growth", they continued.
Three Monthsand SixEnded June 30, 2013Results*
Net operating revenue increased by $10.5million, or 59%, and increased by $10.9million, or 31.0%,for the three and six months ended June30, 2013compared to the three and six months ended June30, 2012. Following is a summary of the change in net operating revenue by property or category for the three and six months ended June30, 2013compared to the threeand sixmonths endedJune30, 2012:
Net Operating Revenue | ||||
For the Three Months | For the Six Months | |||
Ended June 30, | Ended June 30, | |||
2013/2012 | 2013/2012 | |||
Amounts in millions | Change | % Change | Change | % Change |
Century Casino & Hotel, Edmonton | $ 0.2 | 3% | $ 0.7 | 6% |
Century Casino, Calgary | (0.3) | (12%) | (0.6) | (11%) |
Century Casino & Hotel, Central City | (0.2) | (4%) | (0.2) | (3%) |
Century Casino & Hotel, Cripple Creek | 0.0 | 1% | 0.0 | (1%) |
Casinos Poland | 10.9 | 100% | 10.9 | 100% |
Cruise Ships & Other | (0.1) | (5%) | 0.1 | 4% |
Total | $ 10.5 | 59% | $ 10.9 | 31% |
Earnings from operations increased by$0.4million, or 23%,and increased by $0.9million, or26.4%,for the three and six months ended June30, 2013compared to the three and six months ended June30, 2012. Following is a summary of the change in earnings from operations by property or category for the three and six months ended June30, 2013compared to the three and six months ended June30, 2012:
Earnings from Operations | ||||
For the Three Months | For the Six Months | |||
Ended June 30, | Ended June 30, | |||
2013/2012 | 2013/2012 | |||
Amounts in millions | Change | % Change | Change | % Change |
Century Casino & Hotel, Edmonton | $ 0.3 | 16% | $ 0.7 | 22% |
Century Casino, Calgary | 0.2 | 92% | 0.2 | 178% |
Century Casino & Hotel, Central City | (0.1) | (23%) | (0.2) | (15%) |
Century Casino & Hotel, Cripple Creek | 0.1 | 26% | 0.3 | 43% |
Casinos Poland | 0.6 | 100% | 0.6 | 100% |
Cruise Ships & Other | 0.0 | 26% | 0.1 | 40% |
Corporate Other | (0.6) | (56%) | (0.9) | (40%) |
Total | $ 0.4 | 23% | $ 0.9 | 26% |
*Amounts presented are rounded. As such, rounding differences could occur in period over period changes and percentages reported.
**Adjusted EBITDA is a Non-GAAP financial measure. See discussion and reconciliation of Non-GAAP financial measures in Supplemental Information below.
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Net earnings increased by $2.5million, or 219%,and increased by$3.0million, or133.2%,for the three and six months ended June30, 2013compared to the three and six months ended June30, 2012. Following is a summary of the change in net earnings by property or category for the three and six months ended June30, 2013compared to the threeand sixmonths ended June30, 2012:
Net Earnings | ||||
For the Three Months | For the Six Months | |||
Ended June 30, | Ended June 30, | |||
2013/2012 | 2013/2012 | |||
Amounts in millions | Change | % Change | Change | % Change |
Century Casino & Hotel, Edmonton | $ 0.3 | 32% | $ 0.9 | 40% |
Century Casino, Calgary | 0.1 | 150% | $ 0.3 | 304% |
Century Casino & Hotel, Central City | (0.1) | (23%) | (0.1) | (15%) |
Century Casino & Hotel, Cripple Creek | 0.1 | 25% | 0.2 | 43% |
Casinos Poland | 0.3 | 100% | 0.3 | 100% |
Cruise Ships & Other | 0.0 | 19% | 0.1 | 40% |
Corporate Other | 1.7 | 272% | 1.4 | 113% |
Total | $ 2.5 | 219% | $ 3.0 | 133% |
Items deducted from or added to earnings from operations to arrive at net earnings include gain on business combinationrelated to the acquisition of the additional ownership interest in CPL, interest income,interest expense,gains on foreign currency transactions,income tax expense and non-controlling interest.
For the three months ended June 30, 2013, the Company recognized a gain of $2.1 million as a result of measuring at fair value itsinitial33.3% ownership interest in CPL held prior to the acquisition date. As a result, the Corporate Other category reported net earnings of $1.7 million for the period.
*Amounts presented are rounded. As such, rounding differences could occur in period over period changes and percentages reported.
**Adjusted EBITDA is a Non-GAAP financial measure. See discussion and reconciliation of Non-GAAP financial measures in Supplemental Information below.
3/10
Propertyand Category Results
(in thousands)
The following are property and category results for net operating revenue and Adjusted EBITDA.
Net Operating Revenue | Adjusted EBITDA** | Net Operating Revenue | Adjusted EBITDA** | |||||
For the Three Months | For the Three Months | For the Six Months | For the Six Months | |||||
Ended June 30, | Ended June 30, | Ended June 30, | Ended June 30, | |||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |
Century Casino & Hotel, Edmonton | $ 6,208 | $ 6,006 | $ 2,253 | $ 1,969 | $ 12,661 | $ 11,948 | $ 4,624 | $ 3,860 |
Century Casino, Calgary | 2,110 | 2,398 | 216 | 30 | 4,466 | 4,999 | 564 | 283 |
Century Casino & Hotel, Central City | 4,410 | 4,581 | 826 | 986 | 8,856 | 9,090 | 1,723 | 1,958 |
Century Casino & Hotel, Cripple Creek | 3,168 | 3,150 | 843 | 736 | 6,060 | 6,029 | 1,559 | 1,261 |
Casinos Poland | 10,870 | 0 | 1,141 | 0 | 10,870 | 0 | 1,141 | 0 |
Cruise Ships & Other | 1,582 | 1,656 | 233 | 220 | 3,424 | 3,294 | 551 | 457 |
Corporate | 0 | 0 | (1,649) | (1,055) | 0 | 0 | (3,060) | (2,174) |
Consolidated | $ 28,348 | $ 17,791 | $ 3,863 | $ 2,886 | $ 46,337 | $ 35,360 | $ 7,102 | $ 5,645 |
Balance Sheet and Liquidity
As of June30,2013, the Company had $28.2million in cash and cash equivalents and$16.4million in debt obligations on itsbalance sheet compared to $24.7million in cash and cash equivalents and $3.6million in debt obligations at December 31,2012. On February 21, 2013, the Company borrowed an additional $7.3 million from its Bank of Montrealcredit agreement to pay for the additional 33.3% investment in CPL, which closed on April 8, 2013. The credit agreement has a term of five years and is guaranteed by the Company.Once repaid, these amounts cannot be reborrowed.As of June30,2013, the Company had approximately $14.9 million available for borrowing under the credit agreement.In addition, because of the CPL acquisition, the Company added $6.4 million in debt obligations as of June 30, 2013.
Conference Call Information
Today the Company will post a copy of the Form 10-Qfiled with the SEC for the quarter ended June30,2013on its website atcorporate.cnty.com/investor-relations/sec-filings.
Century Casinos will host its secondquarter 2013earnings conference call todayat 10:00 am MDT; 6:00 pm CET,respectively. U.S. domestic participants should dial 1-800-210-9006. For all other international participants,please use 0800-295-236to dial-in.Participants may also listen to the call live or obtain a recording of the call on the Company's websiteuntil August 30, 2013 atcorporate.cnty.com/investor-relations/sec-filings.
(continued)
*Amounts presented are rounded. As such, rounding differences could occur in period over period changes and percentages reported.
**Adjusted EBITDA is a Non-GAAP financial measure. See discussion and reconciliation of Non-GAAP financial measures in Supplemental Information below.
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CENTURY CASINOS, INC. AND SUBSIDIARIES
FINANCIAL INFORMATION - US GAAP BASIS(Unaudited)
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CENTURY CASINOS, INC. AND SUBSIDIARIES
FINANCIAL INFORMATION - US GAAP BASIS
Century Casinos, Inc. | ||
Condensed Consolidated Balance Sheets (Unaudited) | ||
(Amounts in thousands) | ||
June30, | December 31, | |
2013 | 2012 | |
Assets | ||
Current assets | $ 31,084 | $ 26,535 |
Property and equipment, net | 112,756 | 99,526 |
Other assets | 21,552 | 11,275 |
Total assets | $ 165,392 | $ 137,336 |
Liabilities and Shareholders' Equity | ||
Current liabilities | $ 25,804 | $ 13,071 |
Non-current liabilities | 14,181 | 6,109 |
Shareholders' equity | 125,407 | 118,156 |
Total liabilities and shareholders' equity | $ 165,392 | $ 137,336 |
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CENTURY CASINOS, INC. AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION
Century Casinos, Inc.
Adjusted EBITDA Margins ** by Property or Category (Unaudited)
For the Three Months | For the Six Months | |||
Ended June 30, | Ended June 30, | |||
2013 | 2012 | 2013 | 2012 | |
Century Casino & Hotel, Edmonton | 36% | 33% | 37% | 32% |
Century Casino, Calgary | 10% | 1% | 13% | 6% |
Century Casino & Hotel, Central City | 19% | 22% | 19% | 22% |
Century Casino & Hotel, Cripple Creek | 27% | 23% | 26% | 21% |
Casinos Poland | 10% | 0% | 10% | 0% |
Cruise Ships & Other | 15% | 13% | 16% | 14% |
Consolidated Adjusted EBITDA Margin | 14% | 16% | 15% | 16% |
Reconciliation of Adjusted EBITDA * to Net Earnings (Loss) by Property or Category
For the three months ended June 30, 2013
Amounts in thousands
Three Months Ended June 30, 2013 | ||||||||
Edmonton | Calgary | Central City | Cripple Creek | Casinos Poland | Cruise Ships & Other | Corporate | Total | |
Net earnings (loss) | $ 1,421 | $ 46 | $ 305 | $ 376 | $ 333 | $ 108 | $ 1,068 | $ 3,657 |
Interest income | 0 | 0 | 0 | 0 | (1) | 0 | (4) | (5) |
Interest expense | 121 | 0 | 0 | 0 | 138 | 4 | 1 | 264 |
Income taxes (benefit) | 452 | (59) | 188 | 231 | (12) | 20 | (584) | 236 |
Depreciation | 257 | 230 | 333 | 236 | 607 | 101 | 31 | 1,795 |
Non-controlling interest | 0 | 0 | 0 | 0 | 166 | 0 | 0 | 166 |
Non-cash stock based compensation | 0 | 0 | 0 | 0 | 0 | 0 | 1 | 1 |
Foreign currency losses (gains) | 2 | (1) | 0 | 0 | (74) | 0 | (88) | (161) |
(Gain) loss on disposition of fixed assets | 0 | 0 | 0 | 0 | (16) | 0 | 0 | (16) |
Gain on business combination | 0 | 0 | 0 | 0 | 0 | 0 | (2,074) | (2,074) |
Adjusted EBITDA* | $ 2,253 | $ 216 | $ 826 | $ 843 | $ 1,141 | $ 233 | $ (1,649) | $ 3,863 |
/P>
7/10
CENTURY CASINOS, INC. AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION
Century Casinos, Inc.
Reconciliation of Adjusted EBITDA * to Net Earnings (Loss) by Property or Category (Unaudited)
For the three months ended June 30, 2012
Amounts in thousands
Three Months Ended June 30, 2012 | |||||||
Edmonton | Calgary | Central City | Cripple Creek | Cruise Ships & Other | Corporate | Total | |
Net earnings (loss) | $ 1,075 | $ (92) | $ 396 | $ 300 | $ 93 | $ (624) | $ 1,148 |
Interest income | (5) | 0 | 0 | 0 | 0 | (18) | (23) |
Interest expense | 394 | 0 | 0 | 0 | 0 | 1 | 395 |
Income taxes (benefit) | 280 | (75) | 243 | 183 | 10 | (444) | 197 |
Depreciation | 244 | 209 | 347 | 253 | 98 | 29 | 1,180 |
Non-cash stock based compensation | 0 | 0 | 0 | 0 | 0 | (5) | (5) |
Foreign currency losses (gains) | (19) | (12) | 0 | 0 | 3 | 6 | (22) |
(Gain) loss on disposition of fixed assets | 0 | 0 | 0 | 0 | 16 | 0 | 16 |
Adjusted EBITDA* | $ 1,969 | $ 30 | $ 986 | $ 736 | $ 220 | $ (1,055) | $ 2,886 |
Reconciliation of Adjusted EBITDA * to Net Earnings (Loss) by Property or Category
For the six months ended June 30, 2013
Amounts in thousands
Six Months Ended June 30, 2013 | ||||||||
Edmonton | Calgary | Central City | Cripple Creek | Casinos Poland | Cruise Ships & Other | Corporate | Total | |
Net earnings (loss) | $ 3,019 | $ 171 | $ 660 | $ 672 | $ 333 | $ 307 | $ 157 | $ 5,319 |
Interest income | 0 | 0 | 0 | 0 | (1) | 0 | (10) | (11) |
Interest expense | 211 | 0 | 0 | 0 | 138 | (3) | (2) | 344 |
Income taxes (benefit) | 899 | (65) | 405 | 412 | (12) | 41 | (1,127) | 553 |
Depreciation | 517 | 463 | 663 | 475 | 607 | 202 | 59 | 2,986 |
Non-controlling interest | 0 | 0 | 0 | 0 | 166 | 0 | 0 | 166 |
Non-cash stock based compensation | 0 | 0 | 0 | 0 | 0 | 0 | 3 | 3 |
Foreign currency (gains) losses | (22) | (5) | 0 | 0 | (74) | 0 | (67) | (168) |
(Gain) loss on disposition of fixed assets | 0 | 0 | (5) | 0 | (16) | 4 | 0 | (17) |
Gain on business combination | 0 | 0 | 0 | 0 | 0 | 0 | (2,074) | (2,074) |
Adjusted EBITDA* | $ 4,624 | $ 564 | $ 1,723 | $ 1,559 | $ 1,141 | $ 551 | $ (3,061) | $ 7,101 |
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Century Casinos, Inc.
Reconciliation of Adjusted EBITDA * to Net Earnings (Loss) by Property or Category
For the six months ended June 30, 2012
Amounts in thousands
Six Months Ended June 30, 2012 | |||||||
Edmonton | Calgary | Central City | Cripple Creek | Cruise Ships & Other | Corporate | Total | |
Net earnings (loss) | $ 2,153 | $ (84) | $ 776 | $ 469 | $ 219 | $ (1,252) | $ 2,281 |
Interest income | (8) | 0 | 0 | 0 | 0 | (21) | (29) |
Interest expense | 541 | 0 | 0 | 0 | 0 | 2 | 543 |
Income taxes (benefit) | 694 | (31) | 475 | 287 | 24 | (960) | 489 |
Depreciation | 486 | 413 | 701 | 505 | 195 | 58 | 2,358 |
Non-cash stock based compensation | 0 | 0 | 0 | 0 | 0 | (2) | (2) |
Foreign currency losses (gains) | (6) | (15) | 0 | 0 | 3 | 1 | (17) |
(Gain) loss on disposition of fixed assets | 0 | 0 | 6 | 0 | 16 | 0 | 22 |
Adjusted EBITDA** | $ 3,860 | $ 283 | $ 1,958 | $ 1,261 | $ 457 | $ (2,174) | $ 5,645 |
* The Company definesAdjusted EBITDA as net earnings (loss) before interest, income taxes(benefit), depreciation, amortization, pre-opening expenses, non-cash stock based compensation charges, asset impairment costs, (gains)losses on disposition of fixed assets, discontinued operations, realized foreign currency (gains)losses, gain on business combinationand certain other one-time items. Intercompany transactions consisting primarily of management and royalty fees and interest, along with their related tax effects, are excluded from the presentation of net earnings and Adjusted EBITDA reported for each property. Not all of the aforementioned items occur in each reporting period, but have been included in the definition based on historical activity. These adjustments have no effect on the consolidated resultsas reported under accounting principles generally accepted in the United Statesof America ("US GAAP"). Adjusted EBITDA is not considered a measure of performance recognized under US GAAP. Management believes that Adjusted EBITDA is a valuable measure of the relative performanceFONT style="font-family: Arial; font-size: 10pt; display: inline;"> of its properties and the Company. The gaming industry commonly uses Adjusted EBITDA as a method of arriving at the economic value of a casino operation. Management uses Adjusted EBITDA to compare the relative operating performance of separate operating units by eliminating the above mentioned items associated with the varying levels of capital expenditures for infrastructure required to generate revenue, and the often high cost of acquiring existing operations. EBITDA (Earnings before interest, taxes, depreciation and amortization) is used by the Company's lending institution to gauge operating performance. The Company's computation of Adjusted EBITDA may be different from, and therefore may not be comparable to, similar measures used by other companieswithin the gaming industry. Please see the reconciliation of Adjusted EBITDA to net earnings (loss) above.
** The Company defines Adjusted EBITDA marginas Adjusted EBITDA divided by net operating revenue. Management uses this margin as one of several measures to evaluate the efficiency of the Company's casino operations.
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CENTURY CASINOS, INC. AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION
About Century Casinos, Inc.:
Century Casinos, Inc. is an international casino entertainment company that owns and operates Century Casino & Hotels in Cripple Creek and Central City, Colorado, and in Edmonton, Alberta, Canada and the Century Casino in Calgary, Alberta, Canada. The Company also operates casinos aboard twelve luxury cruise vessels (Regatta, Nautica, Marina, Riviera, Mein Schiff 1, Mein Schiff 2, Wind Surf, Wind Star, Wind Spirit, Seven Seas Voyager, Seven Seas Mariner and Seven Seas Navigator). Through its Austrian subsidiary, Century Casinos Europe GmbH, the Company holds a 66.6% ownership interest in Casinos Poland Ltd., the owner and operator of nine casinos in Poland. The Company also manages the operations of the casino at the Radisson Aruba Resort, Casino & Spa in Aruba, Caribbean. Century Casinos, Inc. continues to pursue other international projects in various stages of development.
For more information about Century Casinos, visit our website at www.centurycasinos.com. Century Casinos' common stock trades on The NASDAQ Capital Market® and the Vienna Stock Exchange under the symbol CNTY.
This release may contain "forward-looking statements" within the meaning of Section 27A of the Security Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. These statements are based on the beliefs and assumptions of the management of Century Casinos based on information currently available to management. Such forward-looking statements include, but are not limited to, statements regarding future results of operations(including results for Casinos Poland,Ltd.), operatingefficiencies, synergies and operational performance, economic improvements in 2013, debt repaymentandplans for our casinosand our Company. Such forward-looking statements are subject to risks, uncertainties and other factors that could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. Important factors that could cause actual results to differ materially from the forward-looking statements include, among others, the risks described in the section entitled "Risk Factors" under Item 1A in our Annual Report on Form 10-K for the year ended December 30,2012. Century Casinos disclaims any obligation to revise or update any forward-looking statement that may be made from time to time by it or on its behalf.
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