COLORADO SPRINGS, Colo., May 9, 2018 /PRNewswire/ -- Century Casinos, Inc. (Nasdaq Capital Market®: CNTY) today announced its financial results for the three months ended March 31, 2018.
First Quarter 2018 Highlights*
- Net operating revenue was $40.6 million, an increase of 12% from the three months ended March 31, 2017.
- Earnings from operations were $3.3 million, a decrease of 28% from the three months ended March 31, 2017.
- Net earnings attributable to Century Casinos, Inc. shareholders was $0.9 million, a decrease of 57% from the three months ended March 31, 2017.
- Adjusted EBITDA** was $6.6 million, a decrease of 2% from the three months ended March 31, 2017.
- Earnings per share were $0.03.
- Book value per share*** at March 31, 2018 was $6.10.
The consolidated results for the three months ended March 31, 2018 and 2017 are as follows:
For the three months |
||||||||
Amounts in thousands, except per share data |
ended March 31, |
|||||||
Consolidated Results: |
2018 |
2017 |
% Change | |||||
Net Operating Revenue |
$ |
40,620 |
$ |
36,398 |
12% | |||
Earnings from Operations |
3,251 |
4,490 |
(28%) | |||||
Net Earnings Attributable to Century Casinos, Inc. Shareholders |
$ |
926 |
$ |
2,159 |
(57%) | |||
Adjusted EBITDA** |
$ |
6,562 |
$ |
6,711 |
(2%) | |||
Earnings Per Share: |
||||||||
Basic |
$ |
0.03 |
$ |
0.09 |
(67%) | |||
Diluted |
$ |
0.03 |
$ |
0.09 |
(67%) |
On April 24, 2018, the Company announced that its subsidiary, Century Resorts Management GmbH, acquired 51% of the outstanding common stock of Golden Hospitality Limited ("Golden"), a Hong Kong company. Golden entered into agreements with Minh Chau Ltd. ("Minh Chau"), the owner of a small hotel and international entertainment and gaming club in Vietnam to manage the hotel and international entertainment and gaming club as well as acquire a minority share in Minh Chau. The agreement with Minh Chau also enables Golden to acquire a minimum 51% ownership interest in Minh Chau over the next three years.
On May 4, 2018, the Company was approved to increase the borrowing capacity on its Bank of Montreal Credit Agreement ("BMO Credit Agreement") by CAD 35.0 million ($27.1 million based on the exchange rate in effect on March 31, 2018) for construction of the Century Mile project. The Company will utilize funds from the amended BMO Credit Agreement and $25.0 million from its November 2017 common stock offering for the Century Mile project. The Company expects to finalize the amendment to the BMO Credit Agreement in the second quarter of 2018.
"We are pleased with the results of the first quarter. Our Canadian operations increased revenue by 7% in local currency and our United States operations increased revenue by 3%," Erwin Haitzmann and Peter Hoetzinger, Co-Chief Executive Officers of Century Casinos remarked. "Adjusted EBITDA from our operations in Poland was negatively impacted, as expected, by the closure of casinos while awaiting re-licensing decisions," they continued. "Construction of our largest and most significant project to date, the Century Mile racetrack and casino development, continues to be on budget and on track for an early 2019 opening. In addition, we will open the Saw Close Casino in Bath, England on May 12, 2018", Haitzmann and Hoetzinger concluded.
Reportable Segment Results*
The table below shows the Company's operating segments that are included in each of the Company's reportable segments as of March 31, 2018:
Reportable Segment |
Operating Segment |
Canada |
Century Casino & Hotel - Edmonton |
Canada |
Century Casino St. Albert |
Canada |
Century Casino Calgary |
Canada |
Century Downs Racetrack and Casino |
Canada |
Century Bets! |
Canada |
Century Mile Racetrack and Casino |
United States |
Century Casino & Hotel – Central City |
United States |
Century Casino & Hotel – Cripple Creek |
Poland |
Casinos Poland |
Corporate and Other |
Cruise Ships & Other |
Corporate and Other |
Saw Close Casino Ltd. |
Corporate and Other |
Corporate Other |
The Company's net operating revenue increased by $4.2 million, or 12%, for the three months ended March 31, 2018, compared to the three months ended March 31, 2017. Following is a summary of the changes in operating revenue by reportable segment for the three months ended March 31, 2018, compared to the three months ended March 31, 2017:
Net Operating Revenue |
|||||||||||
For the three months |
|||||||||||
ended March 31, |
|||||||||||
Amounts in thousands |
2018 |
2017 |
$ Change |
% Change | |||||||
Canada |
$ |
14,672 |
$ |
13,160 |
$ |
1,512 |
12% | ||||
United States |
7,706 |
7,500 |
206 |
3% | |||||||
Poland |
17,382 |
14,546 |
2,836 |
20% | |||||||
Corporate and Other |
860 |
1,192 |
(332) |
(28%) | |||||||
Consolidated |
$ |
40,620 |
$ |
36,398 |
$ |
4,222 |
12% |
The Company's earnings from operations decreased by ($1.2) million, or (28%), for the three months ended March 31, 2018, compared to the three months ended March 31, 2017. Following is a summary of the changes in earnings from operations by reportable segment for the three months ended March 31, 2018, compared to the three months ended March 31, 2017:
Earnings (Loss) from Operations |
|||||||||||
For the three months |
|||||||||||
ended March 31, |
|||||||||||
Amounts in thousands |
2018 |
2017 |
$ Change |
% Change | |||||||
Canada |
$ |
3,548 |
$ |
3,047 |
$ |
501 |
16% | ||||
United States |
1,174 |
1,158 |
16 |
1% | |||||||
Poland |
1,024 |
1,806 |
(782) |
(43%) | |||||||
Corporate and Other |
(2,495) |
(1,521) |
(974) |
(64%) | |||||||
Consolidated |
$ |
3,251 |
$ |
4,490 |
$ |
(1,239) |
(28%) |
Net earnings (loss) attributable to Century Casinos, Inc. shareholders decreased by ($1.2) million, or (57%), for the three months ended March 31, 2018, compared to the three months ended March 31, 2017. Following is a summary of the changes in net earnings (loss) attributable to Century Casinos, Inc. shareholders by reportable segment for the three months ended March 31, 2018, compared to the three months ended March 31, 2017:
Net Earnings (Loss) |
|||||||||||
Attributable to Century |
|||||||||||
Casinos, Inc. Shareholders |
|||||||||||
For the three months |
|||||||||||
ended March 31, |
|||||||||||
Amounts in thousands |
2018 |
2017 |
$ Change |
% Change | |||||||
Canada |
$ |
2,019 |
$ |
1,470 |
$ |
549 |
37% | ||||
United States |
873 |
716 |
157 |
22% | |||||||
Poland |
534 |
1,081 |
(547) |
(51%) | |||||||
Corporate and Other |
(2,500) |
(1,108) |
(1,392) |
(126%) | |||||||
Consolidated |
$ |
926 |
$ |
2,159 |
$ |
(1,233) |
(57%) |
Items deducted from or added to earnings from operations to arrive at net earnings (loss) attributable to Century Casinos, Inc. shareholders include interest income, interest expense, gains (losses) on foreign currency transactions and other, income tax expense and non-controlling interests.
The Company's Adjusted EBITDA** decreased by ($0.1) million, or (2%), for the three months ended March 31, 2018 compared to the three months ended March 31, 2017. Following is a summary of the changes in Adjusted EBITDA** by reportable segment for the three months ended March 31, 2018 compared to the three months ended March 31, 2017:
Adjusted EBITDA** |
|||||||||||
For the three months |
|||||||||||
ended March 31, |
|||||||||||
Amounts in thousands |
2018 |
2017 |
$ Change |
% Change | |||||||
Canada |
$ |
4,704 |
$ |
3,882 |
$ |
822 |
21% | ||||
United States |
1,718 |
1,768 |
(50) |
(3%) | |||||||
Poland |
2,104 |
2,378 |
(274) |
(12%) | |||||||
Corporate and Other |
(1,964) |
(1,317) |
(647) |
(49%) | |||||||
Consolidated |
$ |
6,562 |
$ |
6,711 |
$ |
(149) |
(2%) |
* Amounts presented are rounded. As such, rounding differences could occur in period over period changes and percentages reported. |
** Adjusted EBITDA and Adjusted EBITDA margin are Non-GAAP financial measures. See discussion and reconciliation of Non-GAAP financial measures in Supplemental Information below. |
*** The Company defines book value per share as total Century Casinos, Inc. shareholders' equity divided by outstanding common shares. |
Balance Sheet and Liquidity
As of March 31, 2018, the Company had $65.9 million in cash and cash equivalents and $54.0 million in outstanding debt on its balance sheet compared to $74.7 million in cash and cash equivalents and $56.7 million in outstanding debt at December 31, 2017. The $54.0 million in outstanding debt as of March 31, 2018 includes $35.9 million related to the Company's BMO Credit Agreement, $2.8 million of bank debt related to Saw Close Casino Ltd., $0.4 million related to capital leases for Century Resorts Alberta, Century Casino Calgary, Century Casino St. Albert, Century Downs Racetrack and Casino ("CDR") and Century Mile Racetrack and Casino, and $15.1 million related to a long-term land lease for CDR, net of $0.2 million in deferred financing costs.
Conference Call Information
Today the Company will post a copy of its quarterly report on Form 10-Q filed with the SEC for the quarter ended March 31, 2018 on its website at http://corporate.cnty.com/investor-relations/sec-filings. The Company will also post a presentation on the first quarter results on its website at http://corporate.cnty.com/investor-relations/presentations-and-interviews.
The Company will host its first quarter 2018 earnings conference call today at 8:00 am MDT; 4:00 pm CEST, respectively. U.S. domestic participants should dial 1-844-244-9160. For all international participants, please use 330-931-4670 to dial-in. Participants may listen to the call live at https://centurycasinos.adobeconnect.com/earningsrelease or obtain a recording of the call on the Company's website until May 31, 2018 at http://corporate.cnty.com/investor-relations/sec-filings.
CENTURY CASINOS, INC. AND SUBSIDIARIES | ||||||
FINANCIAL INFORMATION – US GAAP BASIS | ||||||
Condensed Consolidated Statements of Earnings | ||||||
For the three months | ||||||
ended March 31, | ||||||
Amounts in thousands, except for per share information |
2018 |
2017 | ||||
Operating revenue: |
||||||
Net operating revenue |
$ |
40,620 |
$ |
36,398 | ||
Operating costs and expenses: |
||||||
Total operating costs and expenses |
37,369 |
31,908 | ||||
Earnings from operations |
3,251 |
4,490 | ||||
Non-operating income (expense), net |
(952) |
(698) | ||||
Earnings before income taxes |
2,299 |
3,792 | ||||
Income tax provision |
(980) |
(995) | ||||
Net earnings |
1,319 |
2,797 | ||||
Net earnings attributable to non-controlling interests |
(393) |
(638) | ||||
Net earnings attributable to Century Casinos, Inc. shareholders |
$ |
926 |
$ |
2,159 | ||
Earnings per share attributable to Century Casinos, Inc.: |
||||||
Basic |
$ |
0.03 |
$ |
0.09 | ||
Diluted |
$ |
0.03 |
$ |
0.09 | ||
Weighted average common shares |
||||||
Basic |
29,363 |
24,455 | ||||
Diluted |
29,994 |
24,856 |
CENTURY CASINOS, INC. AND SUBSIDIARIES | ||||||
FINANCIAL INFORMATION – US GAAP BASIS | ||||||
Condensed Consolidated Balance Sheets |
||||||
(Amounts in thousands) |
||||||
March 31, |
December 31, | |||||
2018 |
2017 | |||||
Assets |
||||||
Current assets |
$ |
75,266 |
$ |
84,321 | ||
Property and equipment, net |
159,717 |
152,778 | ||||
Other assets |
36,807 |
37,777 | ||||
Total assets |
$ |
271,790 |
$ |
274,876 | ||
Liabilities and Equity |
||||||
Current liabilities |
$ |
33,525 |
$ |
34,438 | ||
Non-current liabilities |
50,890 |
53,120 | ||||
Century Casinos, Inc. shareholders' equity |
179,588 |
179,897 | ||||
Non-controlling interests |
7,787 |
7,421 | ||||
Total liabilities and equity |
$ |
271,790 |
$ |
274,876 |
CENTURY CASINOS, INC. AND SUBSIDIARIES | ||||||||
SUPPLEMENTAL INFORMATION | ||||||||
Constant Currency* Results (unaudited) | ||||||||
(Amounts in thousands) | ||||||||
For the three months |
||||||||
ended March 31, |
||||||||
2018 |
2017 |
% Change | ||||||
Net operating revenue as reported (GAAP) |
$ |
40,620 |
$ |
36,398 |
12% | |||
Foreign currency impact vs. 2017 |
(3,453) |
|||||||
Net operating revenue constant currency (non-GAAP)* |
$ |
37,167 |
$ |
36,398 |
2% | |||
Earnings from operations (GAAP) |
$ |
3,251 |
$ |
4,490 |
(28%) | |||
Foreign currency impact vs. 2017 |
(281) |
|||||||
Earnings from operations constant currency (non-GAAP)* |
$ |
2,970 |
$ |
4,490 |
(34%) | |||
Net earnings attributable to Century Casinos, Inc. shareholders as reported (GAAP) |
$ |
926 |
$ |
2,159 |
(57%) | |||
Foreign currency impact vs. 2017 |
(309) |
|||||||
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