Century Casinos, Inc. Announces First Quarter 2018 Results

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:

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:

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:

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:

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:

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:

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.