COLORADO SPRINGS, Colo., Aug. 13 /PRNewswire-FirstCall/ -- Century Casinos, Inc. (NASDAQ Capital Market® and Vienna Stock Exchange: CNTY) announced today certain corrections to a press release it issued on August 9, 2010. Among the corrections are the following:
1. On page one, Earnings from discontinued operations for the three months ended June 30, 2009 has been changed from $1.424 million to $20.777 million. 2. On page one, Earnings from discontinued operations for the six months ended June 30, 2009 has been changed from $2.712 million to $22.679 million.
The August 9, 2010 press release that follows has been corrected and restated in its entirety to reflect these and certain other corrections.
Colorado Springs, Colo., August 9, 2010 - Century Casinos, Inc. (NASDAQ Capital Market® and Vienna Stock Exchange: CNTY) announced today its financial results for the three and six months ended June 30, 2010.
For the Three Months Amounts in thousands, except share data Ended June 30, % Consolidated Results: 2010 2009 Change ---- ---- ------ Net operating revenue $14,940 $11,884 25.7% Operating earnings (loss) from continuing operations 344 (307) 212.1% Loss from continuing operations (259) (1,045) 75.2% Earnings from discontinued operations - 20,777 NM Net (loss) earnings (259) 19,732 -101.3% Net (loss) earnings attributable to Century Casinos, Inc. (259) 18,903 -101.4% Adjusted EBITDA* $2,005 $1,563 28.2% Basic and Diluted earnings per share: Loss from continuing operations ($0.01) ($0.05) Net (loss) earnings ($0.01) $0.80 Weighted-average common shares, basic and diluted 23,815,936 23,524,067 For the Six Months Amounts in thousands, except share data Ended June 30, % Consolidated Results: 2010 2009 Change ---- ---- ------ Net operating revenue $29,077 $23,883 21.7% Operating earnings (loss) from continuing operations 694 (131) 630.0% Loss from continuing operations (129) (2,504) 94.8% Earnings from discontinued operations - 22,679 NM Net (loss) earnings (129) 20,175 -100.6% Net (loss) earnings attributable to Century Casinos, Inc. (129) 19,248 -100.7% Adjusted EBITDA* $3,989 $3,662 8.9% Basic and Diluted earnings per share: Loss from continuing operations ($0.01) ($0.10) Net (loss) earnings ($0.01) $0.82 Weighted-average common shares, basic and diluted 23,815,936 23,524,067 Three Months Ended June 30, 2010
Net operating revenue for the three months ended June 30, 2010 was $14.9 million compared to $11.9 million for the three months ended June 30, 2009. The increase in net operating revenue of $3.0 million is attributable to the following: $2.1 million of net operating revenue due to the acquisition of the Silver Dollar in the first quarter of 2010; $0.7 million due to improved business conditions at our Edmonton, Alberta property resulting from the completion of road construction; an improvement in the average exchange rate between the U.S. dollar and the Canadian dollar; and $0.2 million due to improved business conditions at our Womacks Casino in Cripple Creek, Colorado from better weather conditions and the impact of Amendment 50, which allowed 24 hour operations and increased table limits in Colorado as of July 2009.
For the second quarter of 2010, consolidated Adjusted EBITDA* was $2.0 million. This represents a 28.2% increase in consolidated Adjusted EBITDA* over the same quarter of last year. All operating segments provided positive Adjusted EBITDA*, with the exception of Silver Dollar, totaling $3.2 million which was offset by Corporate operations of $1.2 million. Management attributes the improvement in Adjusted EBITDA* to improved earnings from operations between the second quarter of 2009 and the second quarter of 2010.
Operating earnings from continuing operations increased $0.6 million from a loss of $0.3 million for the three months ended June 30, 2009 to an income of $0.3 million for the three months ended June 30, 2010. Operating earnings from continuing operations for the three months ended June 30, 2010 at Century Casino & Hotel at Edmonton improved by $0.2 million resulting from an increase in revenue in the nickel slot denomination, an increase in the number of slot units and improved business volume associated with the completion of road construction. Operating earnings from continuing operations for the three months ended June 30, 2010 at the Womacks Casino in Cripple Creek and the Century Casino and Hotel in Central City, Colorado improved by $0.2 million due to better weather conditions in the second quarter of 2010 compared to the second quarter 2009 and the impact of Amendment 50. Corporate earnings from operations improved by $0.2 million primarily due to a reduction in the amount of stock compensation recognized in the second quarter of 2010 compared to the second quarter of 2009.
Adjusted for foreign currency transaction gains and losses, the Company recognized a loss from continuing operations of $0.01 million*, for the second quarter of 2010 compared to a loss from continuing operations of $1.3 million for the second quarter of 2009.
Including discontinued operations, in the second quarter of 2009, the Company reported net earnings attributable to Century Casinos, Inc. and subsidiaries of $18.9 million, or $0.80 per share. During the second quarter of 2009, the Company recorded a gain of $0.04 million on the sale of its Casino in Prague, Czech Republics and $19.8 million on the sale of its casinos in South Africa.
Six Months Ended June 30, 2010
Net operating revenue for the six months ended June 30, 2010 was $29.1 million compared to $23.9 million for the six months ended June 30, 2009. The increase in net operating revenue of $5.2 million is attributable to the following: $3.9 million of net operating revenue due to the acquisition of the Silver Dollar in the first quarter of 2010, $1.2 million due to improved business conditions resulting from the completion of road construction and an improvement in the average exchange rate between the U.S. dollar and the Canadian dollar at our casino in Edmonton and $0.2 million from the impact of three new casinos on the cruise ships Wind Surf, Wind Star and Wind Spirit, all beginning service in April 2010. These increases in net operating revenue were offset by a $0.1 million decrease in net operating revenue associated with Womacks Casino at Cripple Creek.
For the six months ended June 30, 2010, consolidated Adjusted EBITDA* was $4.0 million. This represents an 8.9% increase in consolidated Adjusted EBITDA* over the same period of last year. All operating segments provided positive Adjusted EBITDA* totaling $6.4 million which was offset by Corporate operations of $2.4 million. Management attributes the improvement in Adjusted EBITDA* to improved earnings from operations between the six months ended June 30, 2009 and the six months ended June 30, 2010.
Earnings from continuing operations increased $0.8 million from a loss of $0.1 million for the six months ended June 30, 2009 to a gain of $0.7 million for the six months ended June 30, 2010 due to a decrease in corporate expenses associated with the amount of stock compensation recognized of $0.4 million and a reduction in professional fees of $0.2 million. The increase in ship casino revenue of $0.1 million is due to the addition of three new ship casinos which began service in April 2010. The addition of the Silver Dollar in the first quarter of 2010 contributed $0.1 million.
Adjusted for foreign currency transaction gains and losses and an insurance recovery, the Company recognized a loss from continuing operations of $0.2 million*, for the six months ended June 30, 2010 compared to a loss from continuing operations of $2.3 million for the six months ended June 30, 2009.
Including discontinued operations, for the six months ended June 30, 2009, the Company reported net earnings attributable to Century Casinos, Inc. and subsidiaries of $19.2 million. For the six months ended June 30, 2009, the Company recorded a gain of $0.9 million and $19.8 million on the sale of its sale of its Casino in Prague, Czech Republics and South Africa, respectively.
Purchase of Silver Dollar Casino
On January 13, 2010, the Company acquired the Silver Dollar and related land for total consideration of $11.5 million. The Company paid a $1.0 million deposit towards the acquisition on November 6, 2009, with the remainder paid on January 13, 2010, using cash on hand.
The Silver Dollar is a 93,000 square-foot casino facility located on approximately seven acres of land in Calgary, Alberta, Canada. The casino facility includes 504 slot machines, 25 video lottery terminals, 16 table games, two restaurants, a lounge, a 5,000 square-foot showroom, an 18,000 square-foot convention center and a 30-lane bowling alley. The Company plans to change the name of the Silver Dollar Casino to "Century Casino" by the end of October 2010.
Property Results (Continuing Operations) ---------------------------------------- (in thousands) -------------- Net Operating Revenue ------------- For the Three Months -------------------- Ended June 30, 2010 2009 ---- ---- Century Casino & Hotel, Edmonton $5,497 $4,843 Silver Dollar Casino, Calgary 2,098 - Womacks Casino & Hotel, Cripple Creek 2,617 2,441 Century Casino & Hotel, Central City 4,210 4,178 Cruise Ships 518 422 Corporate - - Consolidated net operating revenue $14,940 $11,884 ======= ======= Adjusted EBITDA* -------- For the Three Months -------------------- Ended June 30, 2010 2009 ---- ---- Century Casino & Hotel, Edmonton $1,759 $1,554 Silver Dollar Casino, Calgary (26) - Womacks Casino & Hotel, Cripple Creek 490 351 Century Casino & Hotel, Central City 947 980 Cruise Ships 79 52 Corporate (1,246) (1,374) Consolidated net operating revenue $2,003 $1,563 ====== ====== Net Operating Revenue ------------- For the Six Months ------------------ Ended June 30, 2010 2009 ---- ---- Century Casino & Hotel, Edmonton $10,857 $9,639 Silver Dollar Casino, Calgary 3,840 - Womacks Casino & Hotel, Cripple Creek 4,882 5,013 Century Casino & Hotel, Central City 8,382 8,341 Cruise Ships 1,116 890 Corporate - - Consolidated net operating revenue $29,077 $23,883 ======= ======= Adjusted EBITDA* -------- For the Six Months ------------------ Ended June 30, 2010 2009 ---- ---- Century Casino & Hotel, Edmonton $3,400 $3,329 Silver Dollar Casino, Calgary $153 - Womacks Casino & Hotel, Cripple Creek $682 $845 Century Casino & Hotel, Central City $1,868 $2,043 Cruise Ships $236 $110 Corporate ($2,251) ($2,665) Consolidated net operating revenue $4,088 $3,662 ====== ====== Three Months Ended June 30, 2010
Century Casino & Hotel (Edmonton, Alberta, Canada) - Net operating revenue at the Century Casino & Hotel in Edmonton increased by 13.5% to $5.5 million for the second quarter of 2010 compared to $4.8 million for the second quarter of 2009. This increase is primarily due to an increase in table games and slot revenue and the improved exchange rate between the U.S. dollar and Canadian dollar. Management believes that improved business conditions following completion of road construction near the casino and an increase in the size of player wagers was the primary reason for the increase in table games revenue, and improvements to the floor by the Alberta Gaming and Liquor Commission (AGLC) with slot machine movements and conversions contributed to an increase in slot revenue. In Canadian dollars, Adjusted EBITDA* remained constant at CAD 1.8 million for the three months ended June 30 2010 and 2009.
Womacks Casino (Cripple Creek, Colorado, USA) - Net operating revenue at Womacks Casino increased $0.2 million, or 7.2%, from $2.4 million for the second quarter of 2009 to $2.6 million for the second quarter of 2010. Management believes that Womacks has increased revenue due to positive customer service, food product improvements, improved weather conditions and the impact of Amendment 50. Adjusted EBITDA* increased 39.6% from $0.4 million for the second quarter of 2009 to $0.5 million for the second quarter of 2010 primarily due to improved earnings from operations between the second quarter of 2009 and the second quarter of 2010.
Century Casino and Hotel (Central City, Colorado, USA) - Net operating revenue at the Century Casino and Hotel in Central City remained flat at $4.2 million when comparing the second quarter of 2010 to the second quarter of 2009, primarily due to poor overall economic conditions impacting revenues. Coin-in remained flat and the slot hold percentage is down due to a change in slot play from video to video poker, which has a lower hold percentage. Table revenue increased by 77% due to increased table game limits from Amendment 50. Century Casino's market share for the three months ended June 30, 2010 increased compared to the three months ended June 30, 2009 to 29.1% from 28.9%. Management believes that weekend promotions have helped to maintain business. Adjusted EBITDA* for the Century Casino and Hotel in Central City for the second quarter of 2010 decreased by 3.4% to $0.9 million compared to $1.0 million in the second quarter of 2010. The decrease is primarily due to poor overall economic conditions.
Cruise Ships - The Company's ship-based casinos contributed net operating revenue of $0.5 million for the second quarter of 2010 compared to $0.4 million in the second quarter of 2009. Adjusted EBITDA* increased from $0.05 million for the second quarter of 2009 to $0.08 million for the second quarter of 2010. The increase in net operating revenue and adjusted EBITDA is primarily due to increases in gaming revenue from three new cruise ships, Wind Star, Wind Surf and Wind Spirit, which all began service in April 2010, and a $36,000 increase in revenue from Mein Schiff.
Corporate - Corporate operations reported negative Adjusted EBITDA* of $1.2 million for the second quarter of 2010 compared to negative Adjusted EBITDA* of $1.4 million for the second quarter of 2009. The lower negative Adjusted EBITDA* is primarily due to a reduction in the amount of stock compensation recognized in the second quarter of 2010 compared to the second quarter of 2009.
Six Months Ended June 30, 2010
Century Casino & Hotel (Edmonton, Alberta, Canada) - Net operating revenue at the Century Casino & Hotel in Edmonton increased by 12.6% to $10.9 million for the six months ended June 30, 2010 compared to $9.6 million for the six months ended June 30, 2009. This increase is primarily due to an increase in table games and slot revenue and the improved exchange rate between the U.S. dollar and Canadian dollar. Management believes that improved business conditions following completion of road construction near the casino and an increase in the size of player wagers was the primary reason for the increase in table games revenue, and improvements to the floor by the AGLC with slot machine movements and conversions contributed to an increase in slot revenue. In Canadian dollars, Adjusted EBITDA* decreased from CAD 4.0 million to CAD 3.5 for the six months ended June 30 2010 and 2009 primarily due to a decrease in table games hold in the first quarter.
Womacks Casino (Cripple Creek, Colorado, USA) - Net operating revenue at Womacks Casino in Cripple Creek, Colorado decreased $0.1 million, or 2.6%, from $4.9 million for the six months ending June 30, 2010 compared to $5.0 million for the same period in 2009, primarily due to a decline in the gaming market. Adjusted EBITDA* decreased 19.3% from $0.8 million to $0.7 million primarily due a decrease in net operating revenue between the six months ended June 30, 2010 and the six months ended June 30,2009.
Century Casino and Hotel (Central City, Colorado, USA) - Net operating revenue at the Century Casino and Hotel in Central City remained flat at $8.3 million when comparing the six months ending June 30, 2010 to the same period of 2009. Management attributes the flat operating revenue to poor overall economic conditions. Coin-in revenue remained flat and the slot hold percentage was down due to a change in slot play from video to video poker, which has a lower hold percentage. Table revenue increased due to Amendment 50. Management believes that weekend promotions have helped to maintain business. Adjusted EBITDA* for the Century Casino and Hotel in Central City for the six months ending June 30, 2010 decreased 8.6% to $1.9 million from $2.0 million for the six months ending June 30, 2009. This decrease is primarily due to an increase in operating expenses between the six months ended June 30, 2010 and the six months ended June 30, 2009.
Cruise Ships - The Company's ship-based casinos contributed net operating revenue of $1.1 million for the six months ended June 30, 2010 compared to $0.9 million for the six months ended June 30, 2009 as the result of the impact of three new cruise ships, Wind Star, Wind Surf and Wind Spirit, which all began service in April 2010. Adjusted EBITDA* increased $0.1 to $0.2 million for the six months ended June 30 2010 compared to $0.1 million for the six months ended June 30, 2009. The increase in adjusted EBITDA is also attributable to the impact of the three new ship casinos.
Corporate - Corporate operations reported negative Adjusted EBITDA* of $2.3 million for six months ended June 30, 2010 compared to negative Adjusted EBITDA* of $2.7 million for the six months ended June 30, 2009. The lower negative Adjusted EBITDA* is primarily due to a decrease in the amount of stock compensation recognized and a reduction in professional fees for six months ended June 30, 2010 as compared to the same period of 2009.
Liquidity
Cash and cash equivalents totaled $24.5 million at June 30, 2010 and the Company had working capital (current assets minus current liabilities) of $15.8 million. During 2010, the Company paid $9.3 million for its acquisition of the Silver Dollar. In April 2010, the Company paid $2.2 million for land in Cripple Creek, Colorado. The Company expects to pay approximately $3.0 million in capital expenditures at all its casinos over the next twelve months.
The Company has posted the Form 10-Q filed with the SEC for the second quarter of 2010 on its website at http://www.cnty.com/corporate/investor/sec-filings/ .
Century Casinos will host its Q2 2010 Earnings Conference Call on August 9, 2010 at 8:00 am MDT; 4:00 pm CEST, respectively. U.S. domestic participants please dial +1-800-862-9098; all other international participants please use +1-785-424-1051 to dial in. Participants may also listen to the call live or obtain a recording of the call on our website at http://www.cnty.com/corporate/investor/financial-results/.
*See discussion and reconciliation of Non-GAAP financial measures in Supplemental Information below.
CENTURY CASINOS, INC. AND SUBSIDIARIES FINANCIAL INFORMATION - US GAAP BASIS For the three months ended June 30, Amounts in thousands, except for share and per share information 2010 2009 ---- ---- Operating revenue: Gaming $13,239 $11,138 Hotel, food and beverage 2,756 2,037 Other 770 463 --- --- Gross revenue 16,765 13,638 Less: Promotional allowances 1,825 1,754 Net operating revenue 14,940 11,884 ------ ------ Operating costs and expenses: Gaming 5,854 4,589 Hotel, food and beverage 2,228 1,659 General and administrative 5,150 4,547 Depreciation 1,524 1,550 ----- ----- Total operating costs and expenses 14,756 12,345 Earnings from equity investment 160 154 Operating earnings (loss) from continuing operations 344 (307) Non-operating income (expense): Interest income 14 1 Interest expense (281) (915) (Losses) gains on foreign currency transactions and other (244) 276 Non-operating (expense), net (511) (638) ---- ---- (Loss) income from continuing operations before income taxes (167) (945) Income tax provision 92 100 Loss from continuing operations (259) (1,045) ---- ------ Discontinued operations: Earnings from discontinued operations - 1,424 Gain on disposition of Century Casino Millennium - 38 Gain on disposition of Century Casinos Africa - 19,848 Income tax provision - 533 Earnings from discontinued operations - 20,777 --- ------ Net (loss) earnings (259) 19,732 Less: Net earnings attributable to the noncontrolling interests (continuing operations) - (19) Net earnings attributable to the noncontrolling interests (discontinued operations) - 848 Net (loss) earnings attributable to Century Casinos, Inc. and subsidiaries ($259) $$18,903 ===== ======== For the six months ended June 30, Amounts in thousands, except for share and per share information 2010 2009 ---- ---- Operating revenue: Gaming $25,821 $22,610 Hotel, food and beverage 5,521 3,936 Other 1,349 872 ----- --- Gross revenue 32,691 27,418 Less: Promotional allowances 3,614 3,535 Net operating revenue 29,077 23,883 ------ ------ Operating costs and expenses: Gaming 11,287 9,058 Hotel, food and beverage 4,338 3,199 General and administrative 10,093 8,878 Depreciation 3,013 3,122 ----- ----- Total operating costs and expenses 28,731 24,257 Earnings from equity investment 348 243 Operating earnings (loss) from continuing operations 694 (131) Non-operating income (expense): Interest income 22 10 Interest expense (572) (1,815) (Losses) gains on foreign currency transactions and other (1) (249) Non-operating (expense), net (551) (2,054) ---- ------ (Loss) income from continuing operations before income taxes 143 (2,185) Income tax provision 272 319 Loss from continuing operations (129) (2,504) ---- ------ Discontinued operations: Earnings from discontinued operations - 2,712 Gain on disposition of Century Casino Millennium - 915 Gain on disposition of Century Casinos Africa - 19,848 Income tax provision - 796 Earnings from discontinued operations - 22,679 --- ------ Net (loss) earnings (129) 20,175 Less: Net earnings attributable to the noncontrolling interests (continuing operations) - (37) Net earnings attributable to the noncontrolling interests (discontinued operations) - 964 Net (loss) earnings attributable to Century Casinos, Inc. and subsidiaries ($129) $19,248 ===== ======= CENTURY CASINOS, INC. AND SUBSIDIARIES -------------------------------------- FINANCIAL INFORMATION - US GAAP BASIS ------------------------------------- Century Casinos, Inc. Earnings per Share For the three months ended June 30, 2010 2009 ---- ---- Basic earnings per share: Loss from continuing operations ($0.01) ($0.05) Earnings from discontinued operations - 0.85 Net (loss) earnings ($0.01) $0.80 ====== ===== Diluted earnings per share: Loss from continuing operations ($0.01) ($0.05) Earnings from discontinued operations - 0.85 Net (loss) earnings ($0.01) $0.80 ====== ===== Amounts attributable to Century Casinos, Inc. and subsidiaries common shareholders: Loss from continuing operations ($259) ($1,026) Earnings from discontinued operations - 19,929 Net (loss) earnings ($259) $18,903 ===== ======= Weighted average common shares, basic and diluted 23,815,936 23,524,067 For the six months ended June 30, 2010 2009 ---- ---- Basic earnings per share: Loss from continuing operations ($0.01) ($0.10) Earnings from discontinued operations - 0.92 Net (loss) earnings ($0.01) $0.82 ====== ===== Diluted earnings per share: Loss from continuing operations ($0.01) ($0.10) Earnings from discontinued operations - 0.92 Net (loss) earnings ($0.01) $0.82 ====== ===== Amounts attributable to Century Casinos, Inc. and subsidiaries common shareholders: Loss from continuing operations ($129) ($2,467) Earnings from discontinued operations - 21,715 Net (loss) earnings ($129) $19,248 ===== ======= Weighted average common shares, basic and diluted 23,815,936 23,524,067 CENTURY CASINOS, INC. AND SUBSIDIARIES -------------------------------------- FINANCIAL INFORMATION - US GAAP BASIS ------------------------------------- Century Casinos, Inc. Condensed Consolidated Balance Sheets (Unaudited) (Amounts in thousands) December June 30, 31, 2010 2009 ---- ---- Assets Current Assets $26,171 $39,627 Property and equipment, net 99,710 88,241 Other Assets 8,498 7,442 Total Assets $134,379 $135,310 ======== ======== Liabilities and Shareholders' Equity Current Liabilities $10,356 $10,984 Non-Current Liabilities 16,636 16,037 Shareholders' Equity 107,387 108,289 Total Liabilities and Shareholders' Equity $134,379 $135,310 ======== ======== CENTURY CASINOS, INC. AND SUBSIDIARIES -------------------------------------- SUPPLEMENTAL INFORMATION ------------------------ Century Casinos, Inc. Adjusted EBITDA Margins ** by Property (Unaudited) For the Three Months Ended June 30, -------------- 2010 2009 ---- ---- Century Casino & Hotel (Edmonton) 32% 32% Silver Dollar Casino (Calgary) -1% 0% Womacks Casino & Hotel (Cripple Creek) 19% 14% Century Casino & Hotel (Central City) 22% 23% Cruise Ships 15% 12% Consolidated Adjusted EBITDA Margin 13% 13% For the Six Months Ended June 30, -------------- 2010 2009 ---- ---- Century Casino & Hotel (Edmonton) 31% 34% Silver Dollar Casino (Calgary) 4% 0% Womacks Casino & Hotel (Cripple Creek) 14% 17% Century Casino & Hotel (Central City) 22% 24% Cruise Ships 21% 12% Consolidated Adjusted EBITDA Margin 14% 15% Century Casinos, Inc. Reconciliation of Adjusted EBITDA * to Earnings (Loss) from Continuing Operations by Property (Unaudited) For the Three Months Ended June 30, 2010 Amounts in thousands Three Months Ended June 30, 2010 -------------------------------- Central Cruise Cripple Edmonton Creek City Ships -------- -------- ---- ----- Earnings (loss) from continuing operations $855 $121 $176 ($3) Interest income (10) - - - Interest expense 288 - - - Income taxes 280 74 97 - Depreciation 353 294 674 82 Stock compensation - - - - Foreign currency (3) - - - Disposition of fixed assets 3 1 - - --- --- --- --- Adjusted EBITDA* $1,766 $490 $947 $79 ====== ==== ==== === Amounts in thousands Three Months Ended June 30, 2010 -------------------------------- Silver Dollar Corporate Total ------ --------- ----- Earnings (loss) from continuing operations ($62) ($1,346) ($259) Interest income (1) (3) (14) Interest expense - (7) 281 Income taxes (26) (333) 92 Depreciation 67 54 1,524 Stock compensation - 145 145 Foreign currency (4) 238 231 Disposition of fixed assets - 1 5 --- --- --- Adjusted EBITDA* ($26) ($1,251) $2,005 ==== ======= ====== Three Months Ended June 30, 2009 -------------------------------- Central Cruise Cripple Edmonton Creek City Ships -------- -------- ---- ----- Earnings (loss) from continuing operations $653 ($41) ($171) ($17) Interest income - - - - Interest expense 281 74 515 - Income taxes 253 (25) (117) (2) Depreciation 320 343 751 71 Stock compensation - - - - Foreign currency 47 - - - Disposition of fixed assets - - 2 - --- --- --- --- Adjusted EBITDA* $1,554 $351 $980 $52 ====== ==== ==== === Three Months Ended June 30, 2009 -------------------------------- Silver Dollar Corporate Total ------ --------- ----- Earnings (loss) from continuing operations - ($1,469) ($1,045) Interest income - (1) (1) Interest expense - 45 915 Income taxes - (9) 100 Depreciation - 65 1,550 Stock compensation - 275 275 Foreign currency - (293) (246) Disposition of fixed assets - 13 15 --- --- --- Adjusted EBITDA* - ($1,374) $1,563 === ======= ====== CENTURY CASINOS, INC. AND SUBSIDIARIES -------------------------------------- SUPPLEMENTAL INFORMATION ------------------------ Century Casinos, Inc. Reconciliation of Adjusted EBITDA* to Earnings (Loss) from Continuing Operations by Property (Unaudited) For the Six Months Ended June 30, 2010 (Amounts in Thousands) Six Months Ended June 30, 2010 ------------------------------ Central Cruise Cripple Edmonton Creek City Ships -------- -------- ---- ----- Earnings from continuing operations $1,574 $61 $338 $64 Interest income (18) - - - Interest expense 577 - - - Income taxes 561 37 183 2 Depreciation 696 583 1,346 170 Stock compensation - - - - Foreign currency 22 - - - Disposition of fixed assets 3 1 1 - Other one-time items - - - - --- --- --- --- Adjusted EBITDA* $3,415 $682 $1,868 $236 Six Months Ended June 30, 2010 ------------------------------ Silver Dollar Corporate Total ------ --------- ----- Earnings from continuing operations $32 ($2,198) ($129) Interest income (1) (3) (22) Interest expense - (5) 572 Income taxes 13 (524) 272 Depreciation 108 110 3,013 Stock compensation - 288 288 Foreign currency 1 73 96 Disposition of fixed assets - 2 7 Other one-time items - (108) (108) --- ---- ---- Adjusted EBITDA* $153 ($2,365) $3,989 Six Months Ended June 30, 2009 ------------------------------ Central Cruise Cripple Edmonton Creek City Ships -------- -------- ---- ----- Earnings from continuing operations $1,534 ($20) ($302) ($17) Interest income (2) - (1) - Interest expense 530 138 1,052 - Income taxes 602 (12) (210) (2) Depreciation 619 739 1,502 129 Stock compensation - - - - Foreign currency 46 - - - Disposition of fixed assets - - 2 - Impairments and other write-offs - - - - --- --- --- --- Adjusted EBITDA* $3,329 $845 $2,043 $110 ====== ==== ====== ==== Six Months Ended June 30, 2009 ------------------------------ Silver Dollar Corporate Total ------ --------- ----- Earnings from continuing operations - ($3,699) ($2,504) Interest income - (7) (10) Interest expense - 95 1,815 Income taxes - (59) 319 Depreciation - 133 3,122 Stock compensation - 624 624 Foreign currency - 233 279 Disposition of fixed assets - 13 15 Impairments and other write-offs - 2 2 --- --- --- Adjusted EBITDA* - ($2,665) $3,662 === ======= ====== CENTURY CASINOS, INC. AND SUBSIDIARIES -------------------------------------- SUPPLEMENTAL INFORMATION ------------------------ Century Casinos, Inc. Adjusted Net Loss (Unaudited) (Amounts in thousands) For the Three Months For the Six Months Ended June 30, Ended June 30, -------------- -------------- 2010 2009 2010 2009 ---- ---- ---- ---- Loss from continuing operations ($259) ($1,045) ($129) ($2,504) Foreign currency loss (gains) 244 (276) 1 249 Other income - insurance reimbursement - - (108) - Adjusted Net Loss ($15) ($1,321) ($236) ($2,255) ==== ======= ===== ======= Century Casino & Hotel (Edmonton) Reconciliation of Adjusted EBITDA to Net Earnings (Unaudited) in Canadian Dollars (Amounts in thousands) For the For the three three For the six For the six months months months ended months ended ended ended June 30, June 30, June 30, June 30, 2010 2009 2010 2009 --------- --------- --------- --------- Net earnings - CAD $$835 $823 $1,639 $1,920 Interest income (11) (1) (19) (3) Interest expense 296 327 597 637 Income taxes 287 296 578 728 Depreciation 363 373 720 745 Foreign currency (gains) 41 (1) 6 (1) Loss on disposition of fixed assets 2 - 3 - Adjusted EBITDA* -CAD $$1,813 $1,817 $3,524 $4,026 ======= ====== ====== ====== Silver Dollar Casino Reconciliation of Adjusted EBITDA* to Net Earnings (Unaudited) in Canadian Dollars (Amounts in thousands) January April 1, 13, to June to June 30 30 2010 2010 ---- ---- Net earnings - CAD $(80) 29 Interest income (1) (1) Interest expense 0 0 Income taxes (29) 12 Depreciation 69 112 Foreign currency 10 7 Adjusted EBITDA* - CAD $(31) 159 ==== === CENTURY CASINOS, INC. AND SUBSIDIARIES SUPPLEMENTAL INFORMATION
* The Company defines Adjusted EBITDA as earnings (loss) from continuing operations before interest, income taxes, depreciation, amortization, pre-opening expenses, non-cash stock based compensation charges, asset impairment costs, gains (losses) on disposition of fixed assets, discontinued operations, realized foreign currency gains (losses) and certain other one-time items. For the first quarter of 2010, the Company recognized revenue of $0.1 million for insurance proceeds received on damages to a property, in Wells, Nevada, that the Company no longer owns. Intercompany transactions consisting primarily of management fees and interest, along with their related tax effects, are excluded from the presentation of net earnings and Adjusted EBITDA reported for each property. These adjustments have no effect on the consolidated results. Adjusted EBITDA is not considered a measure of performance recognized under accounting principles generally accepted in the United States of America. Management believes that Adjusted EBITDA is a valuable measure of the relative performance among its operating segments. The gaming industry commonly uses Adjusted EBITDA as a method of arriving at the economic value of a casino operation. Management uses Adjusted EBITDA to compare the relative operating performance of separate operating units by eliminating the above mentioned items associated with the varying levels of capital expenditures for infrastructure required to generate revenue, and the often high cost of acquiring existing operations. EBITDA (Earnings before interest, taxes, depreciation and amortization) is used by the Company's lending institution to gauge operating performance. The Company's computation of Adjusted EBITDA may be different from, and therefore may not be comparable to, similar measures used by other companies. Please see the reconciliation of Adjusted EBITDA to earnings from continuing operations below. Not all of the aforementioned items occur in each reporting period, but have been included in the definition based on historical activity.
** The Company defines Adjusted EBITDA margin as Adjusted EBITDA divided by net operating revenue. Management uses this margin as one of several measures to evaluate the efficiency of the Company's casino operations.
CENTURY CASINOS, INC. AND SUBSIDIARIES SUPPLEMENTAL INFORMATION About Century Casinos, Inc.:
Century Casinos, Inc. is an international casino entertainment company that owns and operates the Womacks Casino & Hotel in Cripple Creek, Colorado, the Century Casino & Hotel in Central City, Colorado, the Century Casino & Hotel in Edmonton, Canada and the Silver Dollar Casino in Calgary, Canada. The Company also operates casinos aboard eight luxury cruise vessels (Silver Cloud, Regatta, Insignia, Nautica, Mein Schiff, Wind Surf, Wind Star, Wind Spirit) and signed contracts for casinos on six additional ships (Seven Seas Voyager, Seven Seas Mariner, Seven Seas Navigator, Marina, Riviera and TUI Mein Schiff II) that are expected to start operations soon. Through its Austrian subsidiary, Century Casinos Europe GmbH, the Company holds a 33.3% ownership interest in Casinos Poland Ltd., the owner and operator of seven full casinos and one slot casino in Poland. Century Casinos, Inc. continues to pursue other international projects in various stages of development.
For more information about Century Casinos, visit our website at http://www.centurycasinos.com/. Century Casinos' common stock trades on The NASDAQ Capital Market® and the Vienna Stock Exchange under the symbol CNTY.
This release may contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on the beliefs and assumptions of the management of Century Casinos based on information currently available to management. Such forward-looking statements include, but are not limited to, expected competition, the impact of new gaming laws, plans for our casinos and the impact of the economic downturn. Such forward-looking statements are subject to risks, uncertainties and other factors that could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. Important factors that could cause actual results to differ materially from the forward-looking statements include, among others, the risks described in the sections entitled "Risk Factors" under Item 1A in our Annual Report on Form 10-K filed on March 15, 2010. Century Casinos disclaims any obligation to revise or update any forward-looking statement that may be made from time to time by it or on its behalf.
Century Casinos, Inc.
CONTACT: Peter Hoetzinger, Co CEO & President of Century Casinos, Inc.,
+1-719-689-5813, +43-664-355-3935, peter.hoetzinger@cnty.com
Web Site: http://www.centurycasinos.com/
