Century Casinos, Inc. Announces Third Quarter 2016 Results

COLORADO SPRINGS, Colo., Nov. 1, 2016 /CNW/ -- Century Casinos, Inc. (NASDAQ Capital Market®: CNTY) today announced its financial results for the three and nine months ended September 30, 2016.

Third Quarter 2016 Highlights*

• Net operating revenue was $34.5 million, a 3% increase from the three months ended September 30, 2015.
• Earnings from operations were $3.8 million, a 6% decrease from the three months ended September 30, 2015.
• Net earnings attributable to Century Casinos, Inc. shareholders were $1.9 million, a 31% decrease from the three months ended September 30, 2015.
• Adjusted EBITDA** was $6.3 million, a 7% decrease from the three months ended September 30, 2015.
• Earnings per share were $0.08.  
• Book value per share*** at September 30, 2016 was $5.39.

Operating results were primarily impacted by decreased net operating revenue at the Century Casino & Hotel in Edmonton ("CRA") due to an extensive refurbishment and remodel of the casino floor and food and beverage outlets for the three months ended September 30, 2016 compared to the three months ended September 30, 2015.

In October 2016, the Company's subsidiary, Century Casino St. Albert Inc. ("CSA"), acquired 100% of the issued and outstanding shares and related land of entities operating the Apex Casino in suburban Edmonton, Alberta, Canada. Century Casino St. Albert, formerly Apex Casino, is a 34,500 square foot casino facility located on approximately seven acres of land that includes 382 slot machines, 11 live table games, a restaurant, a bar, a lounge and a banquet facility that can accommodate up to 175 guests.

In June 2016, the Company began operating the ship-based casinos onboard the Mein Schiff 5, a new 2,500 passenger cruise ship, and the TUI Discovery, a 2,067 passenger cruise ship. Under an agreement with Diamond Cruise International Co., Ltd., the Company began operating the ship-based casino onboard Glory Sea, a 1,200 passenger cruise ship, in July 2016. Glory Sea operates in the Chinese cruise market with three and four-day trips between China, South Korea and Japan. The Glory Sea casino has 50 slot machines and 17 table games. Under an amended concession agreement with TUI Cruises, the Company also plans to operate the ship-based casino onboard Mein Schiff 6, a new 2,500 passenger cruise ship that is expected to begin operations in the third quarter of 2017.

In September 2016, the Company was selected as the successful applicant by Horse Racing Alberta to own, build and operate a horse racing facility in the Edmonton market area, which the Company will operate as Century Mile. Century Mile will be a one-mile horse racetrack and multi-level racing and entertainment center, which will include a gaming floor with slot machines as well as food and beverage outlets. The proposed location is on Edmonton International Airport land and close to the city of Leduc, just south of Edmonton and positioned off Queen Elizabeth II Highway. The Company estimates that the project will cost approximately CAD 50.0 million and be completed by the end of 2018.

The consolidated results for the three and nine months ended September 30, 2016 and 2015 are as follows:

"Operating results and Adjusted EBITDA were impacted by extensive refurbishment and remodeling at the Century Casino & Hotel in Edmonton, our largest property. However, we are very happy with the new gaming floor, restaurant, bar, poker room and the beautiful new VIP gaming areas," Erwin Haitzmann and Peter Hoetzinger, Co Chief Executive Officers of Century Casinos, said. "We opened another three shipboard casinos this year and are particularly excited about the newest addition to our portfolio of casinos, the Century Casino St. Albert in the greater Edmonton metropolitan region, which we acquired on October 1, 2016. Finally, we are thrilled to have been chosen by Horse Racing Alberta to develop and operate a new horse racing and gaming entertainment facility in South Edmonton," they continued.

Consolidated Results*

The table below shows the Company's operating segments that are included in each of the Company's reportable segments as of September 30, 2016:

The Company's net operating revenue increased by $1.0 million, or 3%, and by $0.5 million, or 0%, for the three and nine months ended September 30, 2016, compared to the three and nine months ended September 30, 2015. Following is a summary of the changes in net operating revenue by segment for the three and nine months ended September 30, 2016, compared to the three and nine months ended September 30, 2015:

The Company's earnings from operations decreased by ($0.2) million, or (6%), and by ($2.3) million, or (16%), for the three and nine months ended September 30, 2016, compared to the three and nine months ended September 30, 2015.  Following is a summary of the changes in earnings from operations by segment for the three and nine months ended September 30, 2016, compared to the three and nine months ended September 30, 2015:

Net earnings (loss) attributable to Century Casinos, Inc. shareholders decreased by ($0.8) million, or (31%), and by ($5.1) million, or (46%), for the three and nine months ended September 30, 2016, compared to the three and nine months ended September 30, 2015. Following is a summary of the changes in net earnings (loss) attributable to Century Casinos, Inc. shareholders by segment for the three and nine months ended September 30, 2016, compared to the three and nine months ended September 30, 2015:

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.

Segment Results (in thousands)*

The following are segment results for net operating revenue, earnings from operations, net earnings (loss) attributable to Century Casinos, Inc. shareholders and Adjusted EBITDA**.