Century Casinos, Inc. Announces Third Quarter 2010 Results
</pre> <p><span class="xn-location">COLORADO SPRINGS</span>, Colo., <span class="xn-chron">Nov. 9, 2010</span> /CNW/ -- Century Casinos, Inc. (Nasdaq Capital Market® and <span class="xn-location">Vienna</span> Stock Exchange: CNTY) today announced its financial results for the three and nine months ended <span class="xn-chron">September 30, 2010</span>.</p> <pre> Third Quarter 2010 Highlights -- Net operating revenue was $16.0 million, a 16% increase from third quarter 2009. -- Net earnings per share was $0.01, an increase from a net loss per share of $0.03 in the third quarter 2009. </pre> <p> </p> <p> </p> <pre> For the Three Months Ended September 30, 2010 Amounts in thousands, except share data Consolidated Results: 2010 2009% Change Net operating revenue 15,984 13,724 16% Operating earnings from continuing operations 744 788 (6%) Earnings from discontinued operations - 461 NM Earnings (loss) from continuing operations 321 (1,179) NM Net earnings (loss) attributable to Century Casinos, Inc. 321 (727) NM and Subsidiaries </pre> <p> </p> <p>Adjusted EBITDA* 2,424 2,554 (5%)</p> <p> </p> <pre> Basic and Diluted earnings per share: Earnings (Loss) from continuing operations 0.01 (0.05) NM Net earnings (loss) 0.01 (0.03) NM Weighted-average common shares, basic and diluted 23,851,110 23,622,974 </pre> <p> </p> <p> </p> <pre> For the Nine Months Ended September 30, 2010 Amounts in thousands, except share data Consolidated Results: 2010 2009% Change Net operating revenue 45,061 37,607 20% Operating earnings from continuing operations 1,433 657 118% Earnings from discontinued operations - 23,140 NM Earnings (loss) from continuing operations 191 (3,683) NM Net earnings (loss) attributable to Century Casinos, Inc. 191 18,521 (99%) and Subsidiaries </pre> <p> </p> <p>Adjusted EBITDA* 6,528 6,216 5%</p> <p> </p> <pre> Basic and Diluted earnings per share: Earnings (Loss) from continuing operations 0.01 (0.15) NM Net earnings (loss) 0.01 0.79 (99%) Weighted-average common shares, basic and diluted 23,771,930 23,557,398 </pre> <p>"We are pleased with our overall performance for the third quarter, especially when considering the current North American gaming environment," said Erwin Haitzmann and Peter Hoetzinger. Co-Chief Executive Officers of Century Casinos. "We look forward to completing the renovation work at our new casino in <span class="xn-location">Calgary</span> in mid November and to start operating the property under the Century Casino brand."</p> <pre> Third Quarter 2010 Results </pre> <p>Net operating revenue increased by <span class="xn-money">$2.3 million</span>, or 16%, for the three months ended <span class="xn-chron">September 30, 2010</span> compared to the three months ended <span class="xn-chron">September 30, 2009</span>. The increase in net operating revenue is mainly attributable to the acquisition of the <span class="xn-location">Calgary</span> property, additional revenue generated from two new cruise line agreements and an increase in revenue in Central City and <span class="xn-location">Edmonton</span>, slightly offset by a decrease in Cripple Creek.</p> <p/> <p>Operating earnings from continuing operations decreased 6% for the three months ended <span class="xn-chron">September 30, 2010</span> compared to the three months ended <span class="xn-chron">September 30, 2009</span>. Operating earnings generated by the Company's Century Casino & Hotel in Central City increased by <span class="xn-money">$0.1 million</span> as it continues to benefit from increased revenue as well as cost controlling measures. These earnings were offset by a <span class="xn-money">$0.1 million</span> decrease for the Company's Century Casino & Hotel in Cripple Creek. Adjusted EBITDA declined <span class="xn-money">$130,000</span> or 5%, to <span class="xn-money">$2.4 million</span> in the three months ended <span class="xn-chron">September 30, 2010</span> compared to the three months ended <span class="xn-chron">September 30, 2009</span>.</p> <p/> <p>Net earnings per share (EPS) for the three months ended <span class="xn-chron">September 30, 2010</span> was <span class="xn-money">$0.01</span>, an increase from a net loss per share of <span class="xn-money">$0.03</span> for the three months ended <span class="xn-chron">September 30, 2009</span>. The EPS increase is primarily due to an increase in net earnings caused by <span class="xn-money">$1.3 million</span> in interest expense savings for the three months ended <span class="xn-chron">September 30, 2010</span> compared to the three months ended <span class="xn-chron">September 30, 2009</span>, related to the repayment of the Company's third party debt in Colorado.</p> <pre> Nine Month 2010 Results </pre> <p>Net operating revenue increased by <span class="xn-money">$7.5 million</span>, or 20%, for the nine months ended <span class="xn-chron">September 30, 2010</span> compared to the nine months ended <span class="xn-chron">September 30, 2009</span>. The increase in net operating revenue is mainly attributable to the acquisition of the <span class="xn-location">Calgary</span> property, additional revenue generated from two new cruise line agreements and an increase in revenue in <span class="xn-location">Edmonton</span>, slightly offset by a decrease in Cripple Creek.</p> <p/> <p>Operating earnings from continuing operations increased by <span class="xn-money">$0.8 million</span> or 118%, for the nine months ended <span class="xn-chron">September 30, 2010</span> compared to the nine months ended <span class="xn-chron">September 30, 2009</span>. The increase is primarily due to <span class="xn-money">$0.8 million</span> in cost savings in the corporate segment. Corporate cost savings increased primarily due to a reduction in the amount of stock compensation and overall corporate expenses recognized during the nine months ended <span class="xn-chron">September 30, 2010</span> compared to the nine months ended <span class="xn-chron">September 30, 2009</span>. Adjusted EBITDA for the nine months ended <span class="xn-chron">September 30, 2010</span> improved 5% to <span class="xn-money">$6.5 million</span> compared to the nine months ended <span class="xn-chron">September 30, 2009</span>.</p> <p/> <p>EPS for the nine months ended <span class="xn-chron">September 30, 2010</span> was <span class="xn-money">$0.01</span>, compared to EPS of <span class="xn-money">$0.79</span> for the nine months ended <span class="xn-chron">September 30, 2009</span>. Excluding discontinued operations, EPS from continuing operations for the nine months ended <span class="xn-chron">September 30, 2010</span> was <span class="xn-money">$0.01</span> compared to a loss per share from continuing operations for the nine months ended <span class="xn-chron">September 30, 2009</span> of <span class="xn-money">$0.15</span>. The increase in EPS from continuing operations is primarily due to <span class="xn-money">$2.6 million</span> in interest expense savings for the nine months ended <span class="xn-chron">September 30, 2010</span> compared to the nine months ended <span class="xn-chron">September 30, 2009</span> related to the repayment of the Company's third party debt in Colorado in the third and fourth quarter of 2009, as well as the 118% increase in operating earnings from continuing operations.</p> <pre> </pre> <p> </p> <pre> Property Results (Continuing Operations) ---------------------------------------- (in thousands) -------------- </pre> <p> </p> <pre> Net Operating Revenue Adjusted EBITDA* ------------- ---------------- For the Three Months -------------------- Ended September Ended September 30, 30, 2010 2009 2010 2009 ---- ---- ---- ---- Century Casino & Hotel, Edmonton 5,291 5,091 1,693 1,776 Century Casino, Calgary 1,964 - (90) - Century Casino & Hotel, Central City 4,849 4,790 1,283 1,176 Century Casino & Hotel, Cripple Creek 3,010 3,246 639 768 Cruise Ships 870 597 113 156 Corporate - - (1,214) (1,322) Consolidated 15,984 13,724 2,424 2,554 ====== ====== ===== ===== </pre> <p> </p> <p> </p> <pre> Net Operating Adjusted Revenue EBITDA* ------------- -------- For the Nine Months ------------------- Ended September Ended September 30, 30, 2010 2009 2010 2009 ---- ---- ---- ---- Century Casino & Hotel, Edmonton 16,147 14,729 5,107 5,105 Century Casino, Calgary 5,804 - 62 - Century Casino & Hotel, Central City 13,231 13,132 3,152 3,219 Century Casino & Hotel, Cripple Creek 7,893 8,259 1,322 1,613 Cruise Ships 1,986 1,487 350 266 Corporate - - (3,465) (3,987) Consolidated 45,061 37,607 6,528 6,216 ====== ====== ===== ===== Balance Sheet and Liquidity </pre> <p>As of <span class="xn-chron">September 30, 2010</span>, the Company has <span class="xn-money">$24.8 million</span> in cash and cash equivalents, and <span class="xn-money">$13.6 million</span> in long-term debt obligations on its balance sheet.</p> <pre> Conference Call Information </pre> <p>The Company has posted the Form 10-Q filed with the SEC for the third quarter of 2010 on its website at <a href="http://www.cnty.com/corporate/investor/sec-filings/">www.cnty.com/corporate/investor/sec-filings/</a>.</p> <p/> <p>Century Casinos will host its third quarter 2010 earnings conference call on <span class="xn-chron">November 9, 2010</span> at <span class="xn-chron">10:00 am MST</span>; <span class="xn-chron">6:00 pm CET</span>, respectively. U.S. domestic participants should dial 1-800-894-5910 for all other international participants; please use +1-785-424-1052 to dial in. Participants may also listen to the call live or obtain a recording of the call on the Company's website at <a href="http://www.cnty.com/corporate/investor/financial-results/">www.cnty.com/corporate/investor/financial-results/</a>.</p> <p/> <p>*See discussion and reconciliation of Non-GAAP financial measures in Supplemental Information below.</p> <pre> </pre> <p> </p> <pre> CENTURY CASINOS, INC. AND SUBSIDIARIES FINANCIAL INFORMATION - US GAAP BASIS </pre> <p> </p> <pre> For the three For the nine months months ended September ended September 30, 30, ---------------- ---------------- Amounts in thousands, except for share and per share information 2010 2009 2010 2009 ---- ---- ---- ---- Operating revenue: Gaming $14,348 $12,804 $40,169 $35,414 Hotel, food and beverage 2,789 2,279 8,311 6,215 Other 773 523 2,122 1,395 --- --- ----- ----- Gross revenue 17,910 15,606 50,602 43,024 Less: Promotional allowances 1,926 1,882 5,541 5,417 Net operating revenue 15,984 13,724 45,061 37,607 ------ ------ ------ ------ Operating costs and expenses: Gaming 6,289 5,196 17,578 14,254 Hotel, food and beverage 2,404 1,807 6,742 5,006 General and administrative 4,986 4,440 15,082 13,318 Depreciation 1,529 1,526 4,542 4,648 ----- ----- ----- ----- Total operating costs and expenses 15,208 12,969 43,944 37,226 </pre> <p> </p> <pre> Earnings from equity investment (32) 33 316 276 </pre> <p> </p> <pre> Operating earnings from continuing operations 744 788 1,433 657 </pre> <p> </p> <pre> Non-operating income (expense): Interest income 17 33 39 43 Interest expense (280) (1,618) (861) (3,433) (Losses) on foreign currency transactions and other 14 (182) 26 (431) Non-operating (expense), net (249) (1,767) (796) (3,821) ---- ------ ---- ------ </pre> <p> </p> <pre> Earnings (loss) from continuing operations before income taxes 495 (979) 637 (3,164) </pre> <p> </p> <pre> Income tax provision 174 200 446 519 Earnings (loss) from continuing operations 321 (1,179) 191 (3,683) --- ------ --- ------ </pre> <p> </p> <pre> Discontinued operations: Earnings from discontinued operations - (38) - 2,674 Gain on disposition of Century Casino Millennium - - - 915 Gain on disposition of Century Casinos Africa - 429 - 20,277 Income tax provision - (70) - 726 Earnings from discontinued operations - 461 - 23,140 --- --- --- ------ </pre> <p> </p> <pre> Net earnings (loss) 321 (718) 191 19,457 Less: Net loss attributable to the noncontrolling interests (continuing operations) - (5) - (42) Net earnings attributable to the noncontrolling interests (discontinued operations) - 14 - 978 </pre> <p> </p> <pre> Net earnings (loss) attributable to Century Casinos, Inc. and subsidiaries $321 ($727) $191 $18,521 ==== ===== ==== ======= </pre> <p> </p> <pre> CENTURY CASINOS, INC. AND SUBSIDIARIES -------------------------------------- FINANCIAL INFORMATION - US GAAP BASIS ------------------------------------- </pre> <p> </p> <pre> For the three months For the nine months ended September 30, ended September 30, ------------------- ------------------- 2010 2009 2010 2009 ---- ---- ---- ---- Basic earnings per share: Earnings (loss) from continuing operations $0.01 ($0.05) $0.01 ($0.15) Earnings from discontinued operations - 0.02 - 0.94 Net earnings (loss) $0.01 ($0.03) $0.01 $0.79 ===== ====== ===== ===== </pre> <p> </p> <pre> Diluted earnings per share: Earnings (loss) from continuing operations $0.01 ($0.05) $0.01 ($0.15) Earnings from discontinued operations - 0.02 - 0.94 Net earnings (loss) $0.01 ($0.03) $0.01 $0.79 ===== ====== ===== ===== </pre> <p> </p> <pre> Century Casinos, Inc. Condensed Consolidated Balance Sheets (Unaudited) (Amounts in thousands) </pre> <p> </p> <pre> September 30, December 31, 2010 2009 ---- ---- Assets Current Assets $26,558 $39,627 Property and equipment, net 101,798 88,241 Other Assets 9,043 7,442 Total Assets $137,399 $135,310 ======== ======== </pre> <p> </p> <pre> Liabilities and Shareholders' Equity Current Liabilities $11,088 $10,984 Non-Current Liabilities 16,814 16,037 Shareholders' Equity 109,497 108,289 Total Liabilities and Shareholders' Equity $137,399 $135,310 ======== ======== </pre> <p> </p> <pre> CENTURY CASINOS, INC. AND SUBSIDIARIES -------------------------------------- SUPPLEMENTAL INFORMATION ------------------------ Century Casinos, Inc. Adjusted EBITDA Margins ** by Property (Unaudited) </pre> <p> </p> <pre> For the Three For the Nine Months Months Ended September Ended September 30, 30, 2010 2009 2010 2009 ---- ---- ---- ---- Century Casino & Hotel, Edmonton 32% 35% 32% 35% Century Casino, Calgary -5% - 1% - Century Casino & Hotel, Central City 26% 25% 24% 25% Century Casino & Hotel, Cripple Creek 21% 24% 17% 20% Cruise Ships 13% 26% 18% 18% Consolidated Adjusted EBITDA Margin 15% 19% 14% 17% </pre> <p> </p> <pre> Century Casinos, Inc. Reconciliation of Adjusted EBITDA * to Earnings (Loss) from Continuing Operations by Property (Unaudited) For the Three Months Ended September 30, 2010 </pre> <p> </p> <p>Amounts in thousands</p> <p> </p> <pre> Three Months Ended September 30, 2010 ------------------------------------- Edmonton Calgary Central Cripple -------- ------- City Creek ---- ----- </pre> <p> </p> <p> </p> <pre> Earnings (loss) from continuing operations 769 (119) 377 217 Interest income (4) - - - Interest expense 280 - - - Income taxes 296 (45) 219 134 Depreciation 350 77 677 288 Stock compensation - - - - Foreign currency (4) (3) - - Property write-down and other write offs - - 10 - Disposition of fixed assets 6 - - - Adjusted EBITDA* 1,693 (90) 1,283 639 ===== === ===== === </pre> <p> </p> <p> </p> <pre> Three Months Ended September 30, 2010 ------------------------------------- Cruise Corporate Total Ships --------- ----- ----- </pre> <p> </p> <p> </p> <pre> Earnings (loss) from continuing operations 29 (952) 321 Interest income - (13) (17) Interest expense - - 280 Income taxes 1 (431) 174 Depreciation 83 54 1,529 Stock compensation - 98 98 Foreign currency - (15) (22) Property write-down and other write offs - (10) - Disposition of fixed assets - 55 61 Adjusted EBITDA* 113 (1,214) 2,424 === ====== ===== </pre> <p> </p> <p> </p> <p> </p> <pre> Three Months Ended September 30, 2009 ------------------------------------- Edmonton Calgary Central Cripple City Creek </pre> <p> </p> <p> </p> <pre> Earnings (loss) from continuing operations 819 - (527) 283 Interest income (2) - - - Interest expense 293 - 1,316 5 Income taxes 314 - (335) 173 Depreciation 340 - 721 307 Stock compensation - - - - Foreign currency 12 - - - Disposition of fixed assets - - 1 - --- --- --- --- Adjusted EBITDA* 1,776 - 1,176 768 ===== === ===== === </pre> <p> </p> <p> </p> <p> </p> <pre> Three Months Ended September 30, 2009 ------------------------------------- Cruise Corporate Total Ships </pre> <p> </p> <p> </p> <pre> Earnings (loss) from continuing operations 62 (1,816) (1,179) Interest income - (31) (33) Interest expense - 4 1,618 Income taxes 3 45 200 Depreciation 91 67 1,526 Stock compensation - 239 239 Foreign currency - 170 182 Disposition of fixed assets - - 1 --- --- --- Adjusted EBITDA* 156 (1,322) 2,554 === ====== ===== </pre> <p> </p> <pre> CENTURY CASINOS, INC. AND SUBSIDIARIES -------------------------------------- SUPPLEMENTAL INFORMATION ------------------------ Century Casinos, Inc. Reconciliation of Adjusted EBITDA * to Earnings (Loss) from Continuing Operations by Property (Unaudited) For the Nine Months Ended September 30, 2010 </pre> <p> </p> <p>Amounts in thousands</p> <p> </p> <pre> Nine Months Ended September 30, 2010 ------------------------------------ Edmonton Calgary Central Cripple -------- ------- City Creek ---- ----- </pre> <p> </p> <p> </p> <pre> Earnings (loss) from continuing operations 2,340 (87) 723 279 Interest income (20) (1) - - Interest expense 857 - - - Income taxes 856 (33) 405 171 Depreciation 1,047 185 2,023 871 Stock compensation - - - - Foreign currency 18 (2) - - Disposition of fixed assets 9 - 1 1 --- --- --- --- Adjusted EBITDA* 5,107 62 3,152 1,322 ===== === ===== ===== </pre> <p> </p> <p> </p> <pre> Nine Months Ended September 30, 2010 ------------------------------------ Cruise Corporate Total Ships --------- ----- ----- </pre> <p> </p> <p> </p> <pre> Earnings (loss) from continuing operations 94 (3,158) 191 Interest income - (18) (39) Interest expense - 4 861 Income taxes 3 (956) 446 Depreciation 253 163 4,542 Stock compensation - 386 386 Foreign currency - 57 73 Disposition of fixed assets - 57 68 --- --- Adjusted EBITDA* 350 (3,465) 6,528 === ====== ===== </pre> <p> </p> <p> </p> <p> </p> <pre> Nine Months Ended September 30, 2009 ------------------------------------ Edmonton Calgary Central Cripple -------- ------- City Creek ---- ----- </pre> <p> </p> <p> </p> <pre> Earnings (loss) from continuing operations 2,353 - (829) 263 Interest income (4) - (1) - Interest expense 823 - 2,368 143 Income taxes 916 - (545) 161 Depreciation 959 - 2,223 1,046 Stock compensation - - - - Foreign currency 58 - - - Disposition of fixed assets including impairments and other write offs - - 3 - Adjusted EBITDA* 5,105 0 3,219 1,613 ===== === ===== ===== </pre> <p> </p> <p> </p> <p> </p> <pre> Nine Months Ended September 30, 2009 ------------------------------------ Cruise Corporate Total Ships --------- ----- ----- </pre> <p> </p> <p> </p> <pre> Earnings (loss) from continuing operations 45 (5,515) (3,683) Interest income - (38) (43) Interest expense - 99 3,433 Income taxes 1 (14) 519 Depreciation 220 200 4,648 Stock compensation - 863 863 Foreign currency - 403 461 Disposition of fixed assets including impairments and other write offs - 15 18 Adjusted EBITDA* 266 (3,987) 6,216 === ====== ===== </pre> <p> </p> <p> </p> <pre> CENTURY CASINOS, INC. AND SUBSIDIARIES SUPPLEMENTAL INFORMATION </pre> <p>* The Company defines Adjusted EBITDA as earnings (loss) from continuing operations before interest, income taxes, 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) and certain other one-time items. Intercompany transactions consisting primarily of management fees and interest, along with their related tax effects, are excluded from the presentation of net earnings and Adjusted EBITDA reported for each property. These adjustments have no effect on the consolidated results. Adjusted EBITDA is not considered a measure of performance recognized under accounting principles generally accepted in the <span class="xn-location">United States</span> of America. Management believes that Adjusted EBITDA is a valuable measure of the relative performance among its operating segments. 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 companies. Please see the reconciliation of Adjusted EBITDA to earnings (loss) from continuing operations above. Not all of the aforementioned items occur in each reporting period, but have been included in the definition based on historical activity.</p> <p/> <p>** The Company defines Adjusted EBITDA margin as 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.</p> <pre> About Century Casinos, Inc.: </pre> <p>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 <span class="xn-location">Edmonton</span>, Alberta, <span class="xn-location">Canada</span> and the Century Casino in <span class="xn-location">Calgary</span>, Alberta, <span class="xn-location">Canada</span>. The Company also operates casinos aboard eleven luxury cruise vessels (Silver Cloud, Regatta, Insignia, Nautica, Mein Schiff, Wind Surf, Wind Star, Wind Spirit, Seven Seas Voyager, Seven Seas Mariner, Seven Seas Navigator) and signed contracts for casinos on three additional ships (Marina, Riviera and TUI Mein Schiff II) that are expected to start operations soon. Through its Austrian subsidiary, Century Casinos <span class="xn-location">Europe</span> GmbH, the Company holds a 33.3% ownership interest in Casinos <span class="xn-location">Poland</span> Ltd., the owner and operator of seven full casinos in <span class="xn-location">Poland</span>. Century Casinos, Inc. continues to pursue other international projects in various stages of development.</p> <p/> <p>For more information about Century Casinos, visit our website at <a href="http://www.centurycasinos.com">www.centurycasinos.com</a>. Century Casinos' common stock trades on The NASDAQ Capital Market® and the <span class="xn-location">Vienna</span> Stock Exchange under the symbol CNTY.</p> <p/> <p>This release may contain "forward-looking statements" within the meaning of 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, expected competition, the impact of new gaming laws, plans for our casinos and the impact of the economic downturn. 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 sections entitled "Risk Factors" under Item 1A in our Annual Report on Form 10-K filed on <span class="xn-chron">March 15, 2010</span>. 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.</p> <pre>
For further information: Peter Hoetzinger, Co CEO & President of Century Casinos, Inc., +1-719-689-5813, +43 664 355 3935, [email protected] Web Site: http://www.centurycasinos.com
Share this article