Century Casinos, Inc. Announces Third Quarter 2018 Results

COLORADO SPRINGS, Colo., Nov. 7, 2018 /PRNewswire/ -- Century Casinos, Inc. (Nasdaq Capital Market®: CNTY) today announced its financial results for the three and nine months ended September 30, 2018.

Third Quarter 2018 Highlights*

• Net operating revenue was $43.6 million, an increase of 6% from the three months ended September 30, 2017.
• Earnings from operations were $3.2 million, a decrease of 32% from the three months ended September 30, 2017.
• Net earnings attributable to Century Casinos, Inc. shareholders was $1.6 million, a decrease of 79% from the three months ended September 30, 2017.
• Adjusted EBITDA** was $6.4 million, a decrease of 16% from the three months ended September 30, 2017.
• Basic and diluted earnings per share were $0.06 and $0.05, respectively.  
• Book value per share*** at September 30, 2018 was $6.14.

The consolidated results for the three and nine months ended September 30, 2018 and 2017 are as follows:

During the third quarter of 2017, the Company released its $5.1 million U.S. valuation allowance on its U.S. deferred tax assets, resulting in a tax benefit and increased net earnings attributable to Century Casinos, Inc. shareholders.

"This quarter we had broad-based revenue growth in the United States, Canada and Poland. With the reopening of two casinos in Poland in the latter half of the quarter we anticipate strong Adjusted EBITDA performance will return to that segment," Erwin Haitzmann and Peter Hoetzinger, Co-Chief Executive Officers of Century Casinos remarked. "Although operations in Bath have ramped up slower than expected, which impacted Adjusted EBITDA for the third quarter, we look forward to a strong finish to the year for the company," they continued. "We are excited for the 2019 outlook with the Century Mile project continuing to trend on-time and on-budget for an April 2019 opening," 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, 2018:

The Company's net operating revenue increased by $2.5 million, or 6%, and by $9.1 million, or 8%, for the three and nine months ended September 30, 2018, compared to the three and nine months ended September 30, 2017. Following is a summary of the changes in net operating revenue by reportable segment for the three and nine months ended September 30, 2018, compared to the three and nine months ended September 30, 2017:

The Company's earnings from operations decreased by ($1.5) million, or (32%), and by ($5.4) million, or (42%), for the three and nine months ended September 30, 2018, compared to the three and nine months ended September 30, 2017.  Following is a summary of the changes in earnings (loss) from operations by reportable segment for the three and nine months ended September 30, 2018, compared to the three and nine months ended September 30, 2017:

Net earnings (loss) attributable to Century Casinos, Inc. shareholders decreased by ($6.0) million, or (79%), and by ($8.7) million, or (75%), for the three and nine months ended September 30, 2018, compared to the three and nine months ended September 30, 2017. 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, 2018, compared to the three and nine months ended September 30, 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 ($1.2) million, or (16%), and by ($3.1) million, or (15%), for the three and nine months ended September 30, 2018 compared to the three and nine months ended September 30, 2017. Following is a summary of the changes in Adjusted EBITDA** by reportable segment for the three and nine months ended September 30, 2018 compared to the three and nine months ended September 30, 2017:

Balance Sheet and Liquidity
As of September 30, 2018, the Company had $46.8 million in cash and cash equivalents and $53.3 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 outstanding debt as of September 30, 2018 included $33.3 million related to the Company's BMO Credit Agreement, $2.3 million of bank debt related to Casinos Poland, $2.6 million of bank debt related to Century Casino Bath, $0.3 million related to capital leases for Century Resorts Alberta, Century Casino Calgary, Century Casino St. Albert, Century Downs Racetrack and Casino ("CDR") and Centur