Century Casinos, Inc. Announces Third Quarter 2017 Results

COLORADO SPRINGS, Colo., Nov. 6, 2017 /PRNewswire/ -- Century Casinos, Inc. (NASDAQ Capital Market®: CNTY) today announced its financial results for the three and nine months ended September 30, 2017.

Third Quarter 2017 Highlights*

• Net operating revenue was $41.0 million, an increase of 19% from the three months ended September 30, 2016.
• Earnings from operations were $4.8 million, an increase of 25% from the three months ended September 30, 2016.
• Net earnings attributable to Century Casinos, Inc. shareholders were $7.6 million, an increase of 304% from the three months ended September 30, 2016.
• Adjusted EBITDA** was $7.5 million, an increase of 20% from the three months ended September 30, 2016.
• Earnings per share were $0.31.  
• Book value per share*** at September 30, 2017 was $6.14.

In August 2017, the Company announced that, together with the owner of the Hamilton Princess Hotel & Beach Club in Hamilton, Bermuda, it had submitted a license application to the Bermudan government for a casino at the Hamilton Princess Hotel & Beach Club. The Bermudan government will issue a provisional casino license as the next step in the application process. The conditions of the provisional casino license must be agreed upon by the Bermudan government and the company awarded the license. The Company currently has no estimated time frame on when this will be completed, and there is no assurance a license will be awarded. The Company entered into a long-term management agreement with the owner of the hotel to manage the operations of the casino and receive a management fee if a license is awarded. The Company also will provide a $5.0 million loan for the purchase of casino equipment if the license is awarded.

In June 2017, the Company acquired 100% of the outstanding common stock and the casino licenses held by Saw Close Casino Ltd. ("SCCL"). The Company will utilize the casino licenses to develop and operate a casino in Bath, England. The Company estimates that the project will cost approximately $7.5 million and that the casino will open in the first half of 2018, subject to the receipt of certain regulatory and governmental approvals.

In June 2017, the Company opened the casino in the Hilton Warsaw Hotel and Conference Centre in Warsaw, Poland.

In May 2017, the Company began operating the ship-based casino onboard the Mein Schiff 6.

In October 2016, the Company acquired the Apex Casino in suburban Edmonton, Alberta, Canada. Century Casino St. Albert contributed $2.3 million in net operating revenue and $0.6 million in net earnings for the three months ended September 30, 2017 and $6.5 million in net operating revenue and $0.9 million in net earnings for the nine months ended September 30, 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 Racetrack and Casino. 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 project is located on Edmonton International Airport land 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 $48.1 million. Construction of the Century Mile project began in July 2017. The Company estimates that construction of this project will take approximately 15 months and that it will be completed during the fourth quarter of 2018. The Company is seeking to obtain financing for the Century Mile project.

The consolidated results for the three and nine months ended September 30, 2017 and 2016 are as follows:

"The third quarter results reflect excellent performances from all operating segments," Erwin Haitzmann and Peter Hoetzinger, Co-Chief Executive Officers of Century Casinos remarked. "Based on the continued strength of our U.S. operations, we released a valuation allowance, resulting in a tax benefit of $5.1 million in the third quarter. At Century Downs Racetrack and Casino in Calgary, Canada, thoroughbred racing has been a great generator of additional customers, which has increased gaming and food and beverage revenue. In Poland, revenue at our new casino at the Hilton Warsaw Hotel has climbed steadily since opening in early June and we have won the license tenders for three additional casinos, which we estimate will open by the first quarter of next year," they continued. "Our most exciting growth opportunity, the Century Mile Racetrack and Casino project in Edmonton, Canada, is under construction and we plan to complete construction during the fourth quarter of next year", 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 September 30, 2017:

The Company's net operating revenue increased by $6.5 million, or 19%, and by $11.8 million, or 12%, for the three and nine months ended September 30, 2017, compared to the three and nine months ended September 30, 2016. Following is a summary of the changes in net operating revenue by reportable segment for the three and nine months ended September 30, 2017, compared to the three and nine months ended September 30, 2016:

The Company's earnings from operations increased by $0.9 million, or 25%, and by $0.5 million, or 4%, for the three and nine months ended September 30, 2017, compared to the three and nine months ended September 30, 2016.  Following is a summary of the changes in earnings from operations by reportable segment for the three and nine months ended September 30, 2017, compared to the three and nine months ended September 30, 2016:

Net earnings (loss) attributable to Century Casinos, Inc. shareholders increased by $5.7 million, or 304%, and by $5.2 million, or 81%, for the three and nine months ended September 30, 2017, compared to the three and nine months ended September 30, 2016. Following is a summary of the changes in net earnings (loss) attributable to Century Casinos, Inc. shareholders by reportable segment for the three and nine months ended September 30, 2017, compared to the three and nine months ended September 30, 2016:

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*** increased by $1.3 million, or 20%, and by $1.2 million, or 6%, for the three and nine months ended September 30, 2017 compared to the three and nine months ended September 30, 2016. Following is a summary of the changes in Adjusted EBITDA** by reportable segment for the three and nine months ended September 30, 2017 compared to the three and nine months ended September 30, 2016: