Century Casinos, Inc. Announces Second Quarter 2023 Results
- 23% increase in net operating revenue
- Completed acquisitions of Rocky Gap Casino Resort, Nugget Casino Resort, and the Canada Real Estate Sale
- Positive outlook for the Nugget with record group bookings
- 10% decrease in earnings from operations
- 122% decrease in net loss attributable to Century Casinos, Inc. shareholders
Second Quarter 2023 Highlights*
Compared to the three months ended June 30, 2022:
- Net operating revenue was
, an increase of$136.8 million 23% . - Earnings from operations were
, a decrease of$18.6 million 10% . - Net loss attributable to Century Casinos, Inc. shareholders was
( , a decrease of ($2.0) million 122% ). - Adjusted EBITDA** was
, a decrease of ($29.3 million 2% ). - Loss per share was (
).$0.06 - Book value per share*** at June 30, 2023 was
.$4.77
ROCKY GAP CASINO RESORT ACQUISITION
On July 25, 2023, the Company completed its previously announced acquisition of the operations of Rocky Gap Casino Resort in
On May 16, 2023, the Company entered into definitive agreements for subsidiaries of VICI PropCo Buyer to acquire the real estate assets of Century Casino & Hotel Edmonton in
NUGGET CASINO RESORT ACQUISITION
On April 3, 2023, the Company completed its previously announced acquisition of
RESULTS
The consolidated results for the three and six months ended June 30, 2023 and 2022 are as follows:
For the three months | For the six months | |||||||||||||||
Amounts in thousands, except per share data | ended June 30, | % | ended June 30, | % | ||||||||||||
Consolidated Results: | 2023 | 2022 | Change | 2023 | 2022 | Change | ||||||||||
Net Operating Revenue | $ | 136,761 | $ | 111,122 | 23 % | $ | 245,268 | $ | 214,224 | 15 % | ||||||
Earnings from Operations | 18,629 | 20,802 | (10 %) | 37,028 | 33,846 | 9 % | ||||||||||
Net (Loss) Earnings Attributable to Century Casinos, Inc. Shareholders | $ | (1,959) | $ | 8,856 | (122 %) | $ | (3,202) | $ | 9,074 | (135 %) | ||||||
Adjusted EBITDA** | $ | 29,288 | $ | 29,778 | (2 %) | $ | 55,340 | $ | 53,601 | 3 % | ||||||
(Loss) Earnings Per Share Attributable to Century Casinos, Inc. Shareholders: | ||||||||||||||||
Basic | $ | (0.06) | $ | 0.30 | (120 %) | $ | (0.11) | $ | 0.30 | (137 %) | ||||||
Diluted | $ | (0.06) | $ | 0.28 | (121 %) | $ | (0.11) | $ | 0.29 | (138 %) | ||||||
"We are pleased with the results of this quarter, generating record revenue due to the addition of the Nugget Casino Resort, partially offset by construction disruption at our
REPORTABLE SEGMENT RESULTS*
The table below shows the Company's reporting units and operating segments that are included in each of the Company's reportable segments as of June 30, 2023:
Reportable Segment | Operating Segment | Reporting Unit |
East | Mountaineer Casino, Resort & Races | |
Midwest | Century Casino & Hotel - | |
Century Casino & Hotel - | ||
Century Casino Cape Girardeau | ||
Century Casino Caruthersville and The Farmstead | ||
West | Nugget Casino Resort and Smooth Bourbon, LLC | |
Century Casino & Hotel - | ||
Century Casino St. Albert | ||
Century Mile Racetrack and Casino | ||
Century Downs Racetrack and Casino ("CDR") | ||
Casinos | ||
Corporate and Other | Corporate and Other | Cruise Ships & Other (2) |
Corporate Other (3) |
(1) | The Company operated the Century Sports facility through February 10, 2022. |
(2) | The Company operated on ship-based casinos through April 16, 2023. |
(3) | The Company's equity interest in Smooth Bourbon was included in the Corporate Other reporting unit until April 3, 2023, when the Nugget acquisition closed and the Company began consolidating Smooth Bourbon. |
The Company's net operating revenue increased by
Net Operating Revenue | ||||||||||||||||||||||
For the three months | For the six months | |||||||||||||||||||||
Amounts in | ended June 30, | $ | % | ended June 30, | $ | % | ||||||||||||||||
thousands | 2023 | 2022 | Change | Change | 2023 | 2022 | Change | Change | ||||||||||||||
$ | 94,408 | $ | 70,313 | $ | 24,095 | 34 % | $ | 160,772 | $ | 135,556 | $ | 25,216 | 19 % | |||||||||
18,834 | 19,037 | (203) | (1 %) | 35,342 | 35,039 | 303 | 1 % | |||||||||||||||
23,515 | 21,707 | 1,808 | 8 % | 49,093 | 43,531 | 5,562 | 13 % | |||||||||||||||
Corporate and Other | 4 | 65 | (61) | (94 %) | 61 | 98 | (37) | (38 %) | ||||||||||||||
Consolidated | $ | 136,761 | $ | 111,122 | $ | 25,639 | 23 % | $ | 245,268 | $ | 214,224 | $ | 31,044 | 15 % | ||||||||
The Company's earnings from operations decreased by
Earnings (Loss) from Operations | ||||||||||||||||||||||
For the three months | For the six months | |||||||||||||||||||||
Amounts in | ended June 30, | $ | % | ended June 30, | $ | % | ||||||||||||||||
thousands | 2023 | 2022 | Change | Change | 2023 | 2022 | Change | Change | ||||||||||||||
$ | 17,531 | $ | 17,624 | $ | (93) | (1 %) | $ | 31,801 | $ | 33,147 | $ | (1,346) | (4 %) | |||||||||
4,645 | 4,334 | 311 | 7 % | 8,652 | 4,933 | 3,719 | 75 % | |||||||||||||||
1,224 | 2,047 | (823) | (40 %) | 3,867 | 4,008 | (141) | (4 %) | |||||||||||||||
Corporate and Other | (4,771) | (3,203) | (1,568) | (49 %) | (7,292) | (8,242) | 950 | 12 % | ||||||||||||||
Consolidated | $ | 18,629 | $ | 20,802 | $ | (2,173) | (10 %) | $ | 37,028 | $ | 33,846 | $ | 3,182 | 9 % | ||||||||
Net earnings attributable to Century Casinos, Inc. shareholders decreased by
Net (Loss) Earnings Attributable to Century Casinos, Inc. Shareholders | ||||||||||||||||||||||
For the three months | For the six months | |||||||||||||||||||||
Amounts in | ended June 30, | $ | % | ended June 30, | $ | % | ||||||||||||||||
thousands | 2023 | 2022 | Change | Change | 2023 | 2022 | Change | Change | ||||||||||||||
$ | 7,252 | $ | 10,521 | $ | (3,269) | (31 %) | $ | 12,627 | $ | 19,038 | $ | (6,411) | (34 %) | |||||||||
2,729 | 2,875 | (146) | (5 %) | 4,602 | 2,170 | 2,432 | 112 % | |||||||||||||||
704 | 1,322 | (618) | (47 %) | 2,277 | 2,255 | 22 | 1 % | |||||||||||||||
Corporate and Other | (12,644) | (5,862) | (6,782) | (116 %) | (22,708) | (14,389) | (8,319) | (58 %) | ||||||||||||||
Consolidated | $ | (1,959) | $ | 8,856 | $ | (10,815) | (122 %) | $ | (3,202) | $ | 9,074 | $ | (12,276) | (135 %) | ||||||||
Items deducted from or added to earnings from operations to arrive at net (loss) earnings attributable to Century Casinos, Inc. shareholders include interest income, interest expense, gains (losses) on foreign currency transactions and other, income tax (benefit) expense and non-controlling interests. Net earnings attributable to Century Casinos, Inc. shareholders decreased for the six months ended June 30, 2023 compared to the six months ended June 30, 2022 primarily due to the release of a
Adjusted EBITDA** decreased by
Adjusted EBITDA** | ||||||||||||||||||||||
For the three months | For the six months | |||||||||||||||||||||
Amounts in | ended June 30, | $ | % | ended June 30, | $ | % | ||||||||||||||||
thousands | 2023 | 2022 | Change | Change | 2023 | 2022 | Change | Change | ||||||||||||||
$ | 25,824 | $ | 22,382 | $ | 3,442 | 15 % | $ | 45,595 | $ | 42,692 | $ | 2,903 | 7 % | |||||||||
5,114 | 5,568 | (454) | (8 %) | 9,676 | 9,562 | 114 | 1 % | |||||||||||||||
1,885 | 2,724 | (839) | (31 %) | 5,163 | 5,368 | (205) | (4 %) | |||||||||||||||
Corporate and Other | (3,535) | (896) | (2,639) | (295 %) | (5,094) | (4,021) | (1,073) | (27 %) | ||||||||||||||
Consolidated | $ | 29,288 | $ | 29,778 | $ | (490) | (2 %) | $ | 55,340 | $ | 53,601 | $ | 1,739 | 3 % | ||||||||
BALANCE SHEET AND LIQUIDITY
As of June 30, 2023, the Company had
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 June 30, 2023 on its website at www.cnty.com/investor/financials/sec-filings/. The Company will also post a presentation of the second quarter 2023 results on its website at www.cnty.com/investor/presentations/.
The Company will host its second quarter 2023 earnings conference call today, Tuesday, August 8, 2023 at 9:00 am EDT / 7:00 am MDT.
* 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-US GAAP financial measures. See discussion and reconciliation of Non-US 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.
CENTURY CASINOS, INC. AND SUBSIDIARIES – | ||||||||||||
UNAUDITED FINANCIAL INFORMATION – US GAAP BASIS | ||||||||||||
Condensed Consolidated Statements of (Loss) Earnings | ||||||||||||
For the three months | For the six months | |||||||||||
ended June 30, | ended June 30, | |||||||||||
Amounts in thousands, except for per share information | 2023 | 2022 | 2023 | 2022 | ||||||||
Operating revenue: | ||||||||||||
Net operating revenue | $ | 136,761 | $ | 111,122 | $ | 245,268 | $ | 214,224 | ||||
Operating costs and expenses: | ||||||||||||
Total operating costs and expenses | 118,162 | 91,383 | 209,361 | 181,441 | ||||||||
Earnings from equity investment | 30 | 1,063 | 1,121 | 1,063 | ||||||||
Earnings from operations | 18,629 | 20,802 | 37,028 | 33,846 | ||||||||
Non-operating (expense) income, net | (18,170) | (21,372) | (31,915) | (30,272) | ||||||||
Earnings (loss) before income taxes | 459 | (570) | 5,113 | 3,574 | ||||||||
Income tax (expense) benefit | (96) | 10,421 | (1,719) | 8,986 | ||||||||
Net earnings | 363 | 9,851 | 3,394 | 12,560 | ||||||||
Net earnings attributable to non-controlling interests | (2,322) | (995) | (6,596) | (3,486) | ||||||||
Net (loss) earnings attributable to Century Casinos, Inc. shareholders | $ | (1,959) | $ | 8,856 | $ | (3,202) | $ | 9,074 | ||||
(Loss) earnings per share attributable to Century Casinos, Inc. shareholders: | ||||||||||||
Basic | $ | (0.06) | $ | 0.30 | $ | (0.11) | $ | 0.30 | ||||
Diluted | $ | (0.06) | $ | 0.28 | $ | (0.11) | $ | 0.29 | ||||
Weighted average common shares | ||||||||||||
Basic | 30,335 | 29,843 | 30,196 | 29,752 | ||||||||
Diluted | 30,335 | 31,506 | 30,196 | 31,489 | ||||||||
Condensed Consolidated Balance Sheets | ||||||
June 30, | December 31, | |||||
Amounts in thousands | 2023 | 2022 | ||||
Assets | ||||||
Current assets | $ | 139,995 | $ | 228,019 | ||
Property and equipment, net | 694,107 | 464,650 | ||||
Other assets | 165,134 | 192,298 | ||||
Total assets | $ | 999,236 | $ | 884,967 | ||
Liabilities and Equity | ||||||
Current liabilities | $ | 89,632 | $ | 65,413 | ||
Non-current liabilities | 663,011 | 665,355 | ||||
Century Casinos, Inc. shareholders' equity | 144,809 | 144,028 | ||||
Non-controlling interests | 101,784 | 10,171 | ||||
Total liabilities and equity | $ | 999,236 | $ | 884,967 |
CENTURY CASINOS, INC. AND SUBSIDIARIES | |||||||||||||||
UNAUDITED SUPPLEMENTAL INFORMATION | |||||||||||||||
Reconciliation of Adjusted EBITDA* to Net Earnings (Loss) Attributable to Century Casinos, Inc. Shareholders by Reportable Segment. | |||||||||||||||
For the three months ended June 30, 2023 | |||||||||||||||
Amounts in thousands | United | Corporate | Total | ||||||||||||
Net earnings (loss) attributable to Century Casinos, Inc. shareholders | $ | 7,252 | $ | 2,729 | $ | 704 | $ | (12,644) | $ | (1,959) | |||||
Interest expense (income), net (1) | 7,299 | 547 | (117) | 10,501 | 18,230 | ||||||||||
Income taxes (benefit) | 1,188 | 1,145 | 388 | (2,625) | 96 | ||||||||||
Depreciation and amortization | 8,326 | 1,146 | 661 | 57 | 10,190 | ||||||||||
Net earnings attributable to non-controlling interests | 1,792 | 177 | 353 | — | 2,322 | ||||||||||
Non-cash stock-based compensation | — | — | — | 928 | 928 | ||||||||||
Gain on foreign currency transactions, cost recovery income and other (2) | — | (630) | (104) | (3) | (737) | ||||||||||
Gain on disposition of fixed assets | (33) | — | — | — | (33) | ||||||||||
Acquisition costs | — | — | — | 251 | 251 | ||||||||||
Adjusted EBITDA | $ | 25,824 | $ | 5,114 | $ | 1,885 | $ | (3,535) | $ | 29,288 |
(1) | Included in interest expense (income), net is interest expense of |
(2) | Includes |
For the three months ended June 30, 2022 | |||||||||||||||
Amounts in thousands | United | Corporate | Total | ||||||||||||
Net earnings (loss) attributable to Century Casinos, Inc. shareholders | $ | 10,521 | $ | 2,875 | $ | 1,322 | $ | (5,862) | $ | 8,856 | |||||
Interest expense (income), net (1) | 7,103 | 585 | (54) | 14,162 | 21,796 | ||||||||||
Income taxes (benefit) | — | 574 | 515 | (11,510) | (10,421) | ||||||||||
Depreciation and amortization | 4,758 | 1,226 | 676 | 119 | 6,779 | ||||||||||
Net earnings attributable to non-controlling interests | — | 334 | 661 | — | 995 | ||||||||||
Non-cash stock-based compensation | — | — | — | 1,012 | 1,012 | ||||||||||
(Gain) loss on foreign currency transactions and cost recovery income (2) | — | (34) | (397) | 7 | (424) | ||||||||||
Loss (gain) on disposition of fixed assets | — | 8 | 1 | (121) | (112) | ||||||||||
Acquisition costs | — | — | — | 1,297 | 1,297 | ||||||||||
Adjusted EBITDA | $ | 22,382 | $ | 5,568 | $ | 2,724 | $ | (896) | $ | 29,778 |
(1) | Included in interest expense (income), net is interest expense of |
CENTURY CASINOS, INC. AND SUBSIDIARIES | |||||||||||||||
UNAUDITED SUPPLEMENTAL INFORMATION | |||||||||||||||
Reconciliation of Adjusted EBITDA* to Net Earnings (Loss) Attributable to Century Casinos, Inc. Shareholders by Reportable Segment | |||||||||||||||
For the six months ended June 30, 2023 | |||||||||||||||
Amounts in thousands | United | Corporate | Total | ||||||||||||
Net earnings (loss) attributable to Century Casinos, Inc. shareholders | $ | 12,627 | $ | 4,602 | $ | 2,277 | $ | (22,708) | $ | (3,202) | |||||
Interest expense (income), net (1) | 14,418 | 1,070 | (211) | 20,455 | 35,732 | ||||||||||
Income taxes (benefit) | 2,964 | 2,779 | 1,020 | (5,044) | 1,719 | ||||||||||
Depreciation and amortization | 13,357 | 2,272 | 1,295 | 120 | 17,044 | ||||||||||
Net earnings attributable to non-controlling interests | 1,792 | 3,665 | 1,139 | — | 6,596 | ||||||||||
Non-cash stock-based compensation | — | — | — | 1,664 | 1,664 | ||||||||||
(Gain) loss on foreign currency transactions, cost recovery income and other (2) | — | (4,715) | (358) | 5 | (5,068) | ||||||||||
Loss on disposition of fixed assets | 437 | 3 | 1 | 5 | 446 | ||||||||||
Acquisition costs | — | — | — | 409 | 409 | ||||||||||
Adjusted EBITDA | $ | 45,595 | $ | 9,676 | $ | 5,163 | $ | (5,094) | $ | 55,340 |
(1) | Included in interest expense (income), net is interest expense of |
(2) | Includes |
For the six months ended June 30, 2022 | |||||||||||||||
Amounts in thousands | United | Corporate | Total | ||||||||||||
Net earnings (loss) attributable to Century Casinos, Inc. shareholders | $ | 19,038 | $ | 2,170 | $ | 2,255 | $ | (14,389) | $ | 9,074 | |||||
Interest expense (income), net (1) | 14,109 | 1,152 | (67) | 17,395 | 32,589 | ||||||||||
Income taxes (benefit) | — | 1,197 | 1,072 | (11,255) | (8,986) | ||||||||||
Depreciation and amortization | 9,526 | 2,452 | 1,356 | 240 | 13,574 | ||||||||||
Net earnings attributable to non-controlling interests | — | 2,359 | 1,127 | — | 3,486 | ||||||||||
Non-cash stock-based compensation | — | — | — | 1,685 | 1,685 | ||||||||||
Loss (gain) on foreign currency transactions, cost recovery income and other (2) | — | 209 | (379) | (5) | (175) | ||||||||||
Loss (gain) on disposition of fixed assets | 19 | 23 | 4 | (121) | (75) | ||||||||||
Acquisition costs | — | — | — | 2,429 | 2,429 | ||||||||||
Adjusted EBITDA | $ | 42,692 | $ | 9,562 | $ | 5,368 | $ | (4,021) | $ | 53,601 |
(1) | Included in interest expense (income), net is interest expense of |
(2) | Loss of |
CENTURY CASINOS, INC. AND SUBSIDIARIES | ||||
UNAUDITED SUPPLEMENTAL INFORMATION | ||||
Adjusted EBITDA Margins** | ||||
For the three months | For the six months | |||
ended June 30, | ended June 30, | |||
2023 | 2022 | 2023 | 2022 | |
27 % | 32 % | 28 % | 31 % | |
27 % | 29 % | 27 % | 28 % | |
8 % | 13 % | 11 % | 12 % | |
Corporate and Other | NM (1) | NM | NM | NM |
Consolidated | 21 % | 27 % | 23 % | 25 % |
(1) Not meaningful. |
* The Company defines Adjusted EBITDA as net earnings (loss) attributable to Century Casinos, Inc. shareholders before interest expense (income), net, income taxes (benefit), depreciation and amortization, non-controlling interests net earnings (loss) and transactions, pre-opening expenses, acquisition costs, non-cash stock-based compensation charges, asset impairment costs, loss (gain) on disposition of fixed assets, discontinued operations, (gain) loss on foreign currency transactions, cost recovery income and other, gain on business combination and certain other one-time transactions. Expense related to the Master Lease and CDR land lease is included in the interest expense (income), net line item. Intercompany transactions consisting primarily of management and royalty fees and interest, along with their related tax effects, are excluded from the presentation of net earnings (loss) attributable to Century Casinos, Inc. shareholders and Adjusted EBITDA reported for each segment. Non-cash stock-based compensation expense is presented under Corporate and Other as the expense is not allocated to reportable segments when reviewed by the Company's chief operating decision makers. Not all of the aforementioned items occur in each reporting period, but have been included in the definition based on historical activity. These adjustments have no effect on the consolidated results as reported under US GAAP. Adjusted EBITDA is not considered a measure of performance recognized under US GAAP. Management believes that Adjusted EBITDA is a valuable measure of the relative performance of the Company and its properties. The gaming industry commonly uses Adjusted EBITDA as a method of arriving at the economic value of a casino operation. Management believes that using Adjusted EBITDA is a useful way 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. Adjusted EBITDA also 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 within the gaming industry. Please see the reconciliation of Adjusted EBITDA to net (loss) earnings attributable to Century Casinos, Inc. shareholders above.
** The Company defines Adjusted EBITDA margin as Adjusted EBITDA divided by net operating revenue. Adjusted EBITDA margin is a non-US GAAP measure. Management uses this margin as one of several measures to evaluate the efficiency of the Company's casino operations.
CENTURY CASINOS, INC. AND SUBSIDIARIES
UNAUDITED SUPPLEMENTAL INFORMATION
ABOUT CENTURY CASINOS, INC.:
Century Casinos, Inc. is a casino entertainment company. The Company owns and operates Century Casino & Hotels in
Century Casinos' common stock trades on The Nasdaq Capital Market® under the symbol CNTY. For more information about Century Casinos, visit our website at www.cnty.com.
FORWARD-LOOKING STATEMENTS, BUSINESS ENVIRONMENT & RISK FACTORS
This release may contain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and 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, statements regarding completed and pending acquisitions, projects in development and other opportunities, including the expected benefits of our Nugget and Rocky Gap acquisitions, closing of the Canada Real Estate Sale and completion of our
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SOURCE Century Casinos, Inc.
FAQ
What were Century Casinos, Inc.'s financial results for the three and six months ended June 30, 2023?
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