CORRECTION: Century Casinos, Inc. Announces Third Quarter 2019 Results

COLORADO SPRINGS, Colo., Nov. 5, 2019 /PRNewswire/ -- Century Casinos, Inc. (Nasdaq Capital Market®: CNTY) announced today that it corrected a press release issued November 5, 2019 to reflect a typographical error in the calculation of pro forma Adjusted EBITDA* for the 12 months ended September 30, 2019 as discussed below. The correction did not change the third quarter 2019 results.

Third Quarter 2019 Highlights*

• Net operating revenue was $52.9 million, an increase of 22% from the three months ended September 30, 2018.
• Earnings from operations were $3.5 million, an increase of 8% from the three months ended September 30, 2018.
• Net earnings attributable to Century Casinos, Inc. shareholders was $0.5 million, a decrease of (71%) from the three months ended September 30, 2018.
• Adjusted EBITDA** was $7.1 million, an increase of 12% from the three months ended September 30, 2018.
• Basic and diluted earnings per share attributable to Century Casinos, Inc. shareholders were $0.02, decreases of (67%) and (60%), respectively, from the three months ended September 30, 2018.  
• Book value per share*** at September 30, 2019 was $6.09.

The consolidated results for the three and nine months ended September 30, 2019 and 2018 are as follows:

On June 17, 2019, the Company entered into a definitive agreement to acquire the operations of Isle Casino Cape Girardeau, Lady Luck Caruthersville and Mountaineer Casino, Racetrack and Resort from Eldorado Resorts, Inc. ("Eldorado Resorts") for approximately $107.0 million (the "Acquisition"), which it expects to finance through a new credit facility. Simultaneous with the closing of the Acquisition, VICI Properties Inc. ("VICI") will acquire the real estate assets of the three properties for approximately $278.0 million and the Company will enter into a triple net lease agreement with VICI for the three casino properties. The lease will have an initial annual rent of approximately $25.0 million and an initial term of 15 years, with four five-year renewal options. The transaction, which is expected to close by year end, is subject to approval of the Missouri Gaming Commission as well as other customary closing conditions. On a pro forma basis giving effect to the Acquisition as if it had occurred on October 1, 2018, the Company's last twelve months ("LTM") net operating revenue and Adjusted EBITDA with the acquired properties were $415.3 million and $56.0 million, respectively. See a reconciliation of the LTM results in Supplemental Information below****.

"Operations at Century Mile continue to ramp up and we are pleased with the revenue generated at the property, which is in line with our expectations. We continue to analyze the cost structure, staffing levels and efficiencies of Century Mile to achieve the margins we expect, which is normal during the first phase of operations," Erwin Haitzmann and Peter Hoetzinger, Co-Chief Executive Officers of Century Casinos remarked. "We look forward to closing the Eldorado Acquisition and see some short-term low-cost measures that we can implement to improve performance," 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, 2019:

The Company's net operating revenue increased by $9.4 million, or 22%, and by $27.2 million, or 22%, for the three and nine months ended September 30, 2019, compared to the three and nine months ended September 30, 2018. Following is a summary of the changes in net operating revenue by reportable segment for the three and nine months ended September 30, 2019, compared to the three and nine months ended September 30, 2018:

The Company's earnings from operations increased by $0.2 million, or 8%, and by $2.0 million, or 27%, for the three and nine months ended September 30, 2019, compared to the three and nine months ended September 30, 2018.  Following is a summary of the changes in earnings (loss) from operations by reportable segment for the three and nine months ended September 30, 2019, compared to the three and nine months ended September 30, 2018:

Net earnings attributable to Century Casinos, Inc. shareholders decreased by ($1.2) million, or (71%), and by ($1.9) million, or (66%), for the three and nine months ended September 30, 2019, compared to the three and nine months ended September 30, 2018. 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, 2019, compared to the three and nine months ended September 30, 2018:

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 $0.7 million, or 12%, and by $2.9 million, or 17%, for the three and nine months ended September 30, 2019 compared to the three and nine months ended September 30, 2018. Following is a summary of the changes in Adjusted EBITDA** by reportable segment for the three and nine months ended September 30, 2019 compared to the three and nine months ended September 30, 2018:

* 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.
**** Pro forma net operating revenue and pro forma Adjusted EBITDA are Non-GAAP financial measures. See discussion and reconciliation of Non-GAAP financial measures in Supplemental Information below. The unaudited pro forma financial information is presented for illustrative purposes only and does not indicate the financial results of the combined company had the Acquisition occurred at the beginning of the period presented, nor the impact of possible business model changes. The unaudited pro forma financial information, while helpful in illustrating the financial characteristics of the combined company under one set of assumptions, does not reflect the realization of potential cost savings, revenue synergies, changes in market conditions and asset dispositions, among other factors, and, accordingly, does not attempt to predict or suggest future results. The Company expects to incur costs associated with the Acquisition and the integration of the businesses and operations of the Company and those of Isle Casino Cape Girardeau, Lady Luck Caruthersville and Mountaineer Casino, Racetrack and Resort. However, the unaudited pro forma financial information does not include these estimated merger and integration costs.

Balance Sheet and Liquidity

As of September 30, 2019, the Company had $44.0 million in cash and cash equivalents and $71.1 million in outstanding debt on its balance sheet compared to $45.6 million in cash and cash equivalents and $59.5 million in outstanding debt at December 31, 2018. The outstanding debt as of September 30, 2019 included $52.4 million related to the Company's credit agreement with the Bank of Montreal, $2.4 million of bank debt related to Casinos Poland, $2.0 million of bank debt related to Century Casino Bath, and $14.7 million related to a long-term land lease for Century Downs Racetrack and Casino ("CDR"), net of $0.4 million in deferred financing costs. Capital leases are no longer included in outstanding debt, due to the Company's adoption of Accounting Standards Update 2016-02, Leases (Topic 842), as of January 1, 2019.

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 September 30, 2019 on its website at