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Century Casinos, Inc. Announces Second Quarter 2024 Results

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Century Casinos (NASDAQ: CNTY) reported its Q2 2024 financial results, revealing a mixed performance. Net operating revenue increased by 7% to $146.4 million compared to Q2 2023, driven by gains in the U.S. and Canada. However, earnings from operations declined by 23% to $14.3 million, and there was a net loss of $41.6 million, translating to a basic loss per share of $1.36.

Adjusted EBITDAR decreased by 6% to $27.4 million. The company cited a valuation allowance on U.S. deferred tax assets, underperformance at the Nugget Casino Resort, and temporary closures in Poland as key challenges. Despite these setbacks, Century Casinos maintains a positive outlook, with significant capital projects nearing completion, including a new casino in Caruthersville, Missouri, and renovations in Poland.

As of June 30, 2024, the company had $123.2 million in cash and $341.6 million in outstanding debt. The company’s capital expenditures for the remainder of 2024 and 2025 are projected at $12.6 million and $12.0 million, respectively.

Century Casinos (NASDAQ: CNTY) ha riportato i risultati finanziari del secondo trimestre 2024, rivelando una performance mista. Le entrate operative nette sono aumentate del 7% a 146,4 milioni di dollari rispetto al Q2 2023, grazie ai guadagni negli Stati Uniti e in Canada. Tuttavia, gli utili dalle operazioni sono diminuiti del 23% a 14,3 milioni di dollari, e si è registrata una perdita netta di 41,6 milioni di dollari, corrispondente a una perdita base per azione di 1,36 dollari.

EBITDAR rettificato è diminuito del 6% a 27,4 milioni di dollari. L'azienda ha citato un'agevolazione di valutazione sugli attivi fiscali differiti statunitensi, l'andamento deludente del Nugget Casino Resort e le chiusure temporanee in Polonia come sfide principali. Nonostante questi ostacoli, Century Casinos mantiene un outlook positivo, con significativi progetti di capitale in fase di completamento, tra cui un nuovo casinò a Caruthersville, Missouri, e ristrutturazioni in Polonia.

Alla data del 30 giugno 2024, l'azienda aveva 123,2 milioni di dollari in contante e 341,6 milioni di dollari di debito in sospeso. Le spese in conto capitale dell'azienda per il resto del 2024 e per il 2025 sono previste in 12,6 milioni di dollari e 12,0 milioni di dollari, rispettivamente.

Century Casinos (NASDAQ: CNTY) informó sus resultados financieros del segundo trimestre de 2024, revelando un rendimiento mixto. Los ingresos operativos netos aumentaron un 7% a 146.4 millones de dólares en comparación con el Q2 2023, impulsados por las ganancias en EE. UU. y Canadá. Sin embargo, las ganancias de las operaciones cayeron un 23% a 14.3 millones de dólares, y hubo una pérdida neta de 41.6 millones de dólares, lo que se traduce en una pérdida básica por acción de 1.36 dólares.

El EBITDAR ajustado disminuyó un 6% a 27.4 millones de dólares. La compañía citó una provisión de valoración sobre los activos fiscales diferidos de EE. UU., un desempeño inferior en el Nugget Casino Resort y cierres temporales en Polonia como desafíos clave. A pesar de estos contratiempos, Century Casinos mantiene una perspectiva positiva, con proyectos de capital significativos que se acercan a la finalización, incluidos un nuevo casino en Caruthersville, Missouri, y renovaciones en Polonia.

Al 30 de junio de 2024, la compañía tenía 123.2 millones de dólares en efectivo y 341.6 millones de dólares en deuda pendiente. Se proyecta que los gastos de capital de la empresa para el resto de 2024 y 2025 sean de 12.6 millones de dólares y 12.0 millones de dólares, respectivamente.

센추리 카지노스 (NASDAQ: CNTY)가 2024년 2분기 재무 결과를 발표하면서 혼합된 성과를 드러냈습니다. 순 운영 수익은 2023년 2분기보다 7% 증가하여 1억 4,640만 달러에 달했으며, 이는 미국과 캐나다의 수익 증가에 힘입은 것입니다. 그러나 운영 수익은 23% 감소하여 1,430만 달러에 그쳤으며, 4,160만 달러의 순 손실이 발생하여 주당 기본 손실은 1.36달러로 나타났습니다.

조정된 EBITDAR는 6% 감소하여 2,740만 달러에 이르렀습니다. 회사는 미국의 이연 세금 자산에 대한 평가 충당금, Nugget Casino Resort의 부진한 성과, 그리고 폴란드의 일시적인 폐쇄를 주요 도전 과제로 언급했습니다. 이러한 역경에도 불구하고 센추리 카지노스는 미주리주 카루서스빌에 새 카지노 및 폴란드 리노베이션을 포함한 중요한 자본 프로젝트가 완료될 예정이라며 긍정적인 전망을 유지하고 있습니다.

2024년 6월 30일 기준으로 회사는 1억 2,320만 달러의 현금과 3억 4,160만 달러의 채무를 보유하고 있었습니다. 회사의 2024년 및 2025년 남은 자본 지출은 각각 1,260만 달러와 1,200만 달러로 예상됩니다.

Century Casinos (NASDAQ: CNTY) a publié ses résultats financiers du deuxième trimestre 2024, révélant une performance mitigée. Les revenus nets d'exploitation ont augmenté de 7 % pour atteindre 146,4 millions de dollars par rapport au Q2 2023, soutenus par des gains aux États-Unis et au Canada. Cependant, les bénéfices d'exploitation ont diminué de 23 % à 14,3 millions de dollars, et il y a eu une perte nette de 41,6 millions de dollars, ce qui équivaut à une perte de base par action de 1,36 dollar.

Le EBITDAR ajusté a diminué de 6 % pour atteindre 27,4 millions de dollars. L'entreprise a cité une provision de valorisation sur les actifs fiscaux différés américains, des performances inférieures au Nugget Casino Resort, et des fermetures temporaires en Pologne comme principaux défis. Malgré ces revers, Century Casinos garde une perspective positive, avec des projets de capital significatifs à l'approche de leur achèvement, y compris un nouveau casino à Caruthersville, Missouri, et des rénovations en Pologne.

Au 30 juin 2024, l'entreprise avait 123,2 millions de dollars en liquidités et 341,6 millions de dollars de dettes en cours. Les dépenses en capital de l'entreprise pour le reste de 2024 et pour 2025 sont projetées à 12,6 millions de dollars et 12,0 millions de dollars, respectivement.

Century Casinos (NASDAQ: CNTY) hat seine finanziellen Ergebnisse für das 2. Quartal 2024 veröffentlicht und ein gemischtes Ergebnis präsentiert. Der Nettobetriebsumsatz stieg um 7 % auf 146,4 Millionen Dollar im Vergleich zum Q2 2023, was auf Gewinne in den USA und Kanada zurückzuführen ist. Allerdings sanken die Betriebsergebnisse um 23 % auf 14,3 Millionen Dollar, und es gab einen Nettoverlust von 41,6 Millionen Dollar, was einem Basisverlust pro Aktie von 1,36 Dollar entspricht.

Der bereinigte EBITDAR verringerte sich um 6 % auf 27,4 Millionen Dollar. Das Unternehmen nannte eine Bewertungszulage auf US-Steueransprüche, eine schwache Leistung des Nugget Casino Resort und vorübergehende Schließungen in Polen als wichtige Herausforderungen. Trotz dieser Rückschläge zeigt sich Century Casinos optimistisch, da bedeutende Kapitalprojekte kurz vor dem Abschluss stehen, darunter ein neues Casino in Caruthersville, Missouri, sowie Renovierungen in Polen.

Zum 30. Juni 2024 verfügte das Unternehmen über 123,2 Millionen Dollar in bar und 341,6 Millionen Dollar an ausstehenden Schulden. Die Investitionsausgaben des Unternehmens für den Rest von 2024 und 2025 werden auf 12,6 Millionen Dollar bzw. 12,0 Millionen Dollar geschätzt.

Positive
  • Net operating revenue increased by 7% to $146.4 million.
  • New land-based casino in Caruthersville, Missouri, is ahead of schedule.
  • Significant capital projects nearing completion.
Negative
  • Earnings from operations fell by 23% to $14.3 million.
  • Net loss was $41.6 million, basic loss per share of $1.36.
  • Adjusted EBITDAR decreased by 6% to $27.4 million.
  • Temporary closures of two casinos in Poland.
  • Valuation allowance on U.S. deferred tax assets resulted in $23.8 million of tax expense.

Insights

Century Casinos reported mixed results for Q2 2024. While net operating revenue increased 7% to $146.4 million, earnings from operations decreased 23% to $14.3 million. The company posted a significant net loss of $41.6 million, largely due to a $23.8 million tax expense from a valuation allowance on US deferred tax assets.

Key concerns include:

  • Disappointing performance at Nugget Casino Resort
  • Temporary closures of two casinos in Poland
  • Increased interest expense from additional properties in Master Lease

However, the company maintains a positive outlook, citing progress on capital projects like the new Caruthersville casino opening ahead of schedule. With $123.2 million in cash and $341.6 million in debt, Century Casinos' liquidity position remains stable but warrants monitoring given recent losses.

Century Casinos' Q2 results reveal operational challenges across key markets. The 15% revenue decline in Poland due to casino closures is concerning. The underperformance of Nugget Casino Resort indicates integration difficulties following its recent acquisition.

Positively, the US segment saw 13% revenue growth, showing resilience in core markets. The company's focus on right-sizing and cost-cutting at Nugget is prudent, but execution will be critical. The accelerated opening of the Caruthersville land-based casino could provide a needed boost, potentially increasing gaming positions and hotel rooms by 50%.

Management's projection of reduced capital expenditures ($12.6 million for remainder of 2024, $12 million in 2025) suggests a shift towards operational optimization rather than expansion, which may help stabilize finances in the near term.

The $23.8 million tax expense from the valuation allowance on US deferred tax assets is a significant red flag. This accounting measure suggests management's reduced confidence in future US profitability, as it implies they don't expect to fully utilize these tax assets.

This decision has dramatically impacted the bottom line, turning what would have been a modest loss into a substantial $41.6 million net loss. While this is a non-cash charge, it reflects negatively on the company's near-term US outlook.

Investors should closely monitor future quarters for any reversal of this allowance, which would signal improved profit expectations. The $12.2 million tax payment related to the Canada properties sale also impacted cash flow, highlighting the tax complexities of Century's recent transactions.

Challenging First Half of the Year but Maintain Positive Outlook

COLORADO SPRINGS, Colo., Aug. 8, 2024 /PRNewswire/ -- Century Casinos, Inc. (the "Company", "we", "us", or "our") (Nasdaq Capital Market®: CNTY) today announced its financial results for the three and six months ended June 30, 2024.

Second Quarter 2024 Highlights*

Compared to the three months ended June 30, 2023:

  • Net operating revenue was $146.4 million, an increase of 7%.
  • Earnings from operations were $14.3 million, a decrease of (23%).
  • Net loss attributable to Century Casinos, Inc. shareholders was ($41.6) million and basic loss per share was ($1.36).
  • Adjusted EBITDAR** was $27.4 million, a decrease of (6%).

"Results for the second quarter of 2024 were impacted by a valuation allowance on our US deferred tax assets, a disappointing performance at the Nugget Casino Resort as well as temporary closures of two casinos in Poland. The Nugget has undergone a leadership change and is implementing right-sizing and cost-cutting initiatives to improve its performance," Erwin Haitzmann and Peter Hoetzinger, Co-Chief Executive Officers of Century Casinos remarked. "We have completed the majority of our elevated capital expenditure projects and are projecting total capital expenditures to be approximately $12.6 million for the remainder of 2024 and $12.0 million in 2025," they continued. "We look forward to opening our new land-based casino in Caruthersville, Missouri ahead of schedule later this year. The casino will increase gaming positions and hotel rooms in Caruthersville by approximately 50%," Messrs. Haitzmann and Hoetzinger concluded.

UPDATES

Caruthersville Project – The Company is constructing a new land-based casino with a 38 room hotel in Caruthersville, Missouri. The project continues to be on budget with an estimated project cost of $51.9 million. Construction started in December 2022 with estimated completion ahead of schedule in mid-November 2024. The Company is funding this project through VICI Properties, Inc. ("VICI"). Following completion, VICI will own the real estate improvements associated with the Caruthersville project, which will become a part of the Company's triple net lease ("Master Lease") with subsidiaries of VICI.

Poland – Renovations on the new casino location in Wroclaw continue, and the Company expects to open the casino in October 2024. The Company closed its Krakow casino in May 2024 and its LIM Center casino in Warsaw in July 2024 due to the expiration of the license at each location. The Company applied for licenses at both locations prior to their expirations, however, there can be no assurance that such licenses will be received.

Valuation Allowance – During the second quarter of 2024, the Company recorded a valuation allowance on its net deferred tax assets related to the United States, resulting in $23.8 million of tax expense.

RESULTS

The consolidated results for the three and six months ended June 30, 2024 and 2023 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:



2024



2023


Change



2024



2023


Change

Net Operating Revenue


$

146,435


$

136,761


7 %


$

282,451


$

245,268


15 %

Earnings from Operations



14,261



18,629


(23 %)



22,547



37,028


(39 %)

Net Loss Attributable to Century Casinos, Inc. Shareholders


$

(41,613)


$

(1,959)


(2024 %)


$

(55,157)


$

(3,202)


(1623 %)


















Adjusted EBITDAR**


$

27,448


$

29,288


(6 %)


$

48,697


$

55,340


(12 %)


















Net Loss Per Share Attributable to Century Casinos, Inc. Shareholders:

Basic


$

(1.36)


$

(0.06)


(2167 %)


$

(1.81)


$

(0.11)


(1546 %)

Diluted


$

(1.36)


$

(0.06)


(2167 %)


$

(1.81)


$

(0.11)


(1546 %)


















RESULTS BY REPORTABLE SEGMENT*

Following is a summary of the changes in net operating revenue by reportable segment for the three and six months ended June 30, 2024, compared to the three and six months ended June 30, 2023:


























Net Operating Revenue



For the three months







For the six months






Amounts in


ended June 30,



$


%


ended June 30,



$


%

thousands


2024


2023



Change


Change


2024


2023



Change


Change

United States


$

106,515


$

94,408


$

12,107


13 %


$

202,543


$

160,772


$

41,771


26 %

Canada



19,827



18,834



993


5 %



38,153



35,342



2,811


8 %

Poland



20,093



23,515



(3,422)


(15 %)



41,742



49,093



(7,351)


(15 %)

Corporate and Other





4



(4)


(100 %)



13



61



(48)


(79 %)

Consolidated


$

146,435


$

136,761


$

9,674


7 %


$

282,451


$

245,268


$

37,183


15 %
























Following is a summary of the changes in earnings (loss) from operations by reportable segment for the three and six months ended June 30, 2024, compared to the three and six months ended June 30, 2023:


























Earnings (Loss) from Operations



For the three months







For the six months






Amounts in


ended June 30,



$


%


ended June 30,



$


%

thousands


2024


2023



Change


Change


2024


2023



Change


Change

United States


$

14,102


$

17,531


$

(3,429)


(20 %)


$

22,561


$

31,801


$

(9,240)


(29 %)

Canada



4,362



4,645



(283)


(6 %)



8,398



8,652



(254)


(3 %)

Poland



(181)



1,224



(1,405)


(115 %)



(202)



3,867



(4,069)


(105 %)

Corporate and Other



(4,022)



(4,771)



749


16 %



(8,210)



(7,292)



(918)


(13 %)

Consolidated


$

14,261


$

18,629


$

(4,368)


(23 %)


$

22,547


$

37,028


$

(14,481)


(39 %)
























Following is a summary of the changes in net (loss) earnings attributable to Century Casinos, Inc. shareholders by reportable segment for the three and six months ended June 30, 2024, compared to the three and six months ended June 30, 2023:


























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


2024


2023



Change


Change


2024


2023



Change


Change

United States


$

(27,593)


$

7,252


$

(34,845)


(480 %)


$

(29,137)


$

12,627


$

(41,764)


(331 %)

Canada



1,009



2,729



(1,720)


(63 %)



2,146



4,602



(2,456)


(53 %)

Poland



(40)



704



(744)


(106 %)



(35)



2,277



(2,312)


(102 %)

Corporate and Other



(14,989)



(12,644)



(2,345)


(19 %)



(28,131)



(22,708)



(5,423)


(24 %)

Consolidated


$

(41,613)


$

(1,959)


$

(39,654)


(2024 %)


$

(55,157)


$

(3,202)


$

(51,955)


(1623 %)
























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. Increased interest expense and a valuation allowance on net deferred tax assets in the United States negatively impacted net loss attributable to Century Casinos, Inc. shareholders. Interest expense increased primarily due to additional properties added to the Master Lease. The Company recorded a valuation allowance on its net deferred tax assets related to the United States resulting in $23.8 million of tax expense for the three and six months ended June 30, 2024. Based on the analysis of future realization of the United States deferred tax assets, the Company concluded that it is more likely than not that the benefit from certain deferred tax assets will not be realized and therefore recorded the valuation allowance.

Following is a summary of the changes in Adjusted EBITDAR** by reportable segment for the three and six months ended June 30, 2024 compared to the three and six months ended June 30, 2023:


























Adjusted EBITDAR**



For the three months







For the six months






Amounts in


ended June 30,



$


%


ended June 30,



$


%

thousands


2024


2023



Change


Change


2024


2023



Change


Change

United States


$

25,037


$

25,824


$

(787)


(3 %)


$

44,175


$

45,595


$

(1,420)


(3 %)

Canada



5,451



5,114



337


7 %



10,599



9,676



923


10 %

Poland



450



1,885



(1,435)


(76 %)



1,208



5,163



(3,955)


(77 %)

Corporate and Other



(3,490)



(3,535)



45


1 %



(7,285)



(5,094)



(2,191)


(43 %)

Consolidated


$

27,448


$

29,288


$

(1,840)


(6 %)


$

48,697


$

55,340


$

(6,643)


(12 %)
























BALANCE SHEET AND LIQUIDITY

As of June 30, 2024, the Company had $123.2 million in cash and cash equivalents compared to $171.3 million in cash and cash equivalents at December 31, 2023. Cash and cash equivalents decreased primarily due to tax payments of $12.2 million related to the September 2023 sale and leaseback of the Company's Canada properties and purchases of property and equipment of $34.3 million. As of June 30, 2024, the Company had $341.6 million in outstanding debt compared to $346.8 million in outstanding debt at December 31, 2023. The outstanding debt as of June 30, 2024 included $339.5 million related to the term loan under the Goldman Credit Agreement and $2.1 million of bank debt related to Century Resorts Management GmbH ("CRM"). The Company also has a $653.8 million long-term financing obligation under its Master Lease.

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, 2024 on its website at www.cnty.com/investor/financials/sec-filings/. The Company will also post its current presentation, which may be used in one or more meetings with current and potential investors from time to time, at the Company's website under www.cnty.com/investor/presentations/.

The Company will host its second quarter 2024 earnings conference call today, Thursday, August 8, 2024 at 10:00 am EDT / 8:00 am MDT. U.S. domestic participants should dial 800-343-4136. For all international participants, please use 203-518-9843 to dial-in. The conference ID is 'Casinos'. Participants may listen to the call live at http://join.eventcastplus.com/eventcastplus/Century-Casinos-Q2-2024-Earnings-Call or obtain a recording of the call on the Company's website until August 31, 2024 at www.cnty.com/investor/financials/sec-filings/.

*

Amounts presented are rounded. As such, rounding differences could occur in period over period changes and percentages reported.

**

Adjusted EBITDAR, Adjusted EBITDAR margin and Net Debt are Non-US GAAP financial measures. See discussion and reconciliation of Non-US GAAP financial measures in Supplemental Information below.

 

CENTURY CASINOS, INC. AND SUBSIDIARIES
UNAUDITED FINANCIAL INFORMATION – US GAAP BASIS 


Condensed Consolidated Statements of Loss 


For the three months

For the six months


ended June 30,

ended June 30,

Amounts in thousands, except for per share information


2024


2023


2024


2023

Operating revenue:













Net operating revenue


$

146,435


$

136,761


$

282,451


$

245,268

Operating costs and expenses:













Total operating costs and expenses



132,174



118,162



259,904



209,361

Earnings from equity investment





30





1,121

Earnings from operations



14,261



18,629



22,547



37,028

Non-operating (expense) income, net



(23,655)



(18,170)



(47,621)



(31,915)

(Loss) earnings before income taxes



(9,394)



459



(25,074)



5,113

Income tax expense



(29,619)



(96)



(25,633)



(1,719)

Net (loss) earnings



(39,013)



363



(50,707)



3,394

Net earnings attributable to non-controlling interests



(2,600)



(2,322)



(4,450)



(6,596)

Net loss attributable to Century Casinos, Inc. shareholders


$

(41,613)


$

(1,959)


$

(55,157)


$

(3,202)














Net loss per share attributable to Century Casinos, Inc. shareholders:

  Basic


$

(1.36)


$

(0.06)


$

(1.81)


$

(0.11)

  Diluted


$

(1.36)


$

(0.06)


$

(1.81)


$

(0.11)














Weighted average common shares













  Basic



30,683



30,335



30,551



30,196

  Diluted



30,683



30,335



30,551



30,196














 








Condensed Consolidated Balance Sheets









June 30,


December 31,

Amounts in thousands


2024


2023

Assets







Current assets


$

161,992


$

207,017

Property and equipment, net



919,799



913,561

Other assets



219,903



239,084

Total assets


$

1,301,694


$

1,359,662








Liabilities and Equity







Current liabilities


$

82,661


$

93,619

Non-current liabilities



1,062,020



1,051,602

Century Casinos, Inc. shareholders' equity



64,579



121,392

Non-controlling interests



92,434



93,049

Total liabilities and equity


$

1,301,694


$

1,359,662

 

CENTURY CASINOS, INC. AND SUBSIDIARIES
UNAUDITED SUPPLEMENTAL INFORMATION


Reconciliation of Adjusted EBITDAR* to Net (Loss) Earnings Attributable to Century Casinos, Inc. Shareholders by Reportable Segment.



For the three months ended June 30, 2024

Amounts in thousands



United
States



Canada



Poland



Corporate
and Other



Total

Net (loss) earnings attributable to Century Casinos, Inc. shareholders


$

(27,593)


$

1,009


$

(40)


$

(14,989)


$

(41,613)

Interest expense (income), net (1)



11,694



3,152



(20)



10,257



25,083

Income tax expense



28,225



456



87



851



29,619

Depreciation and amortization



10,803



1,088



515



43



12,449

Net earnings (loss) attributable to non-controlling interests



1,776



843



(19)





2,600

Non-cash stock-based compensation









343



343

(Gain) loss on foreign currency transactions, cost recovery income and other (2)





(1,098)



(189)



5



(1,282)

Loss on disposition of fixed assets



132



1



116





249

Adjusted EBITDAR


$

25,037


$

5,451


$

450


$

(3,490)


$

27,448



(1)

See "Summary of Interest Expense (Income), Net" below for a breakdown of interest expense (income), net and "Cash Rent Payments" below for more information on the rent payments related to the Master Lease.

(2)

Includes $1.1 million related to cost recovery income for CDR.

 


















For the three months ended June 30, 2023

Amounts in thousands



United
States



Canada



Poland



Corporate
and Other



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 tax expense (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 and cost recovery income (2)





(630)



(104)



(3)



(737)

Gain on disposition of fixed assets



(33)









(33)

Acquisition costs









251



251

Adjusted EBITDAR


$

25,824


$

5,114


$

1,885


$

(3,535)


$

29,288



(1)

See "Summary of Interest Expense (Income), Net" below for a breakdown of interest expense and "Cash Rent Payments" below for more information on the rent payments related to the Master Lease.

(2)

Includes $0.7 million related to the earn out from the sale of casino operations in Calgary in 2020.

 

CENTURY CASINOS, INC. AND SUBSIDIARIES
UNAUDITED SUPPLEMENTAL INFORMATION


Reconciliation of Adjusted EBITDAR* to Net (Loss) Earnings Attributable to Century Casinos, Inc. Shareholders by Reportable Segment.



For the six months ended June 30, 2024

Amounts in thousands



United
States



Canada



Poland



Corporate
and Other



Total

Net (loss) earnings attributable to Century Casinos, Inc. shareholders


$

(29,137)


$

2,146


$

(35)


$

(28,131)


$

(55,157)

Interest expense (income), net (1)



23,440



6,061



(55)



20,765



50,211

Income tax expense (benefit)



24,705



1,184



238



(494)



25,633

Depreciation and amortization



21,093



2,237



1,053



97



24,480

Net earnings (loss) attributable to non-controlling interests



3,553



914



(17)





4,450

Non-cash stock-based compensation









846



846

Gain on foreign currency transactions, cost recovery income and other (2)





(1,907)



(333)



(350)



(2,590)

Loss (gain) on disposition of fixed assets



521



(36)



357



1



843

Acquisition costs









(19)



(19)

Adjusted EBITDAR


$

44,175


$

10,599


$

1,208


$

(7,285)


$

48,697



(1)

See "Summary of Interest Expense (Income), Net" below for a breakdown of interest expense (income), net and "Cash Rent Payments" below for more information on the rent payments related to the Master Lease.

(2)

Includes $1.1 million related to cost recovery income for CDR.

 


















For the six months ended June 30, 2023

Amounts in thousands



United
States



Canada



Poland



Corporate
and Other



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 tax expense (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 EBITDAR


$

45,595


$

9,676


$

5,163


$

(5,094)


$

55,340



(1)

See "Summary of Interest Expense (Income), Net" below for a breakdown of interest expense (income), net and "Cash Rent Payments" below for more information on the rent payments related to the Master Lease. 

(2)

Includes $1.2 million related to the earn out payment from the sale of casino operations in Calgary in 2020 and $3.5 million related to cost recovery income for CDR.

 

CENTURY CASINOS, INC. AND SUBSIDIARIES
UNAUDITED SUPPLEMENTAL INFORMATION


Net Income (Loss) Margins** and Adjusted EBITDAR Margins***






For the three months



For the six months





ended June 30,



ended June 30,





2024



2023



2024



2023

United States

Net Operating Revenue


$

106,515


$

94,408


$

202,543


$

160,772


Net Income (Loss) Margin



(26 %)



8 %



(14 %)



8 %


Adjusted EBITDAR Margin



24 %



27 %



22 %



28 %















Canada

Net Operating Revenue


$

19,827


$

18,834


$

38,153


$

35,342


Net Income (Loss) Margin



5 %



15 %



6 %



13 %


Adjusted EBITDAR Margin



28 %



27 %



28 %



27 %















Poland

Net Operating Revenue


$

20,093


$

23,515


$

41,742


$

49,093


Net Income (Loss) Margin





3 %





5 %


Adjusted EBITDAR Margin



2 %



8 %



3 %



11 %















Corporate and Other

Net Operating Revenue


$


$

4


$

13


$

61


Net Income (Loss) Margin



NM (1)



NM



NM



NM


Adjusted EBITDAR Margin



NM



NM



NM



NM















Consolidated

Net Operating Revenue


$

146,435


$

136,761


$

282,451


$

245,268


Net Income (Loss) Margin



(28 %)



(1 %)



(20 %)



(1 %)


Adjusted EBITDAR Margin



19 %



21 %



17 %



23 %



(1)

Not meaningful.

 

Summary of Interest Expense (Income), Net



For the three months

For the six months


ended June 30,

ended June 30,

Amounts in thousands



2024



2023



2024



2023

Interest income


$

(673)


$

(119)


$

(1,359)


$

(265)

Interest expense - Credit Agreements



9,821



9,742



19,720



18,999

Interest expense - VICI Financing Obligation



15,175



7,299



30,374



14,418

Interest expense - CDR Land Lease (1)





538





1,052

Interest expense - Deferred Financing Costs



674



674



1,348



1,347

Interest expense - Misc



86



96



128



181

Interest expense (income), net


$

25,083


$

18,230


$

50,211


$

35,732














(1)

The CDR Land Lease ended on September 6, 2023 in conjunction with the sale and leaseback of our Canada properties.

 

Cash Rent Payments



For the three months

For the six months


ended June 30,

ended June 30,

Amounts in thousands



2024



2023



2024



2023

Master Lease


$

15,195


$

6,866


$

24,639


$

13,731

CDR Land Lease





486





983

Nugget Lease (1)



1,913



1,900



3,175



1,900


(1)

Represents payments with respect to the 50% interest in the Nugget Lease owned by Marnell Gaming, LLC through Smooth Bourbon, LLC ("Smooth Bourbon"), a 50% owned subsidiary of the Company that owns the real estate assets underlying the Nugget Casino Resort.

 

CENTURY CASINOS, INC. AND SUBSIDIARIES
UNAUDITED SUPPLEMENTAL INFORMATION


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, 2024.


Reportable Segment

Operating Segment

Reporting Unit

United States

East

Mountaineer Casino, Resort & Races



Rocky Gap Casino, Resort & Golf


Midwest

Century Casino & Hotel — Central City



Century Casino & Hotel — Cripple Creek



Century Casino & Hotel — Cape Girardeau



Century Casino Caruthersville and The Farmstead


West

Nugget Casino Resort and Smooth Bourbon, LLC

Canada

Canada

Century Casino & Hotel — Edmonton



Century Casino St. Albert



Century Mile Racetrack and Casino



Century Downs Racetrack and Casino

Poland

Poland

Casinos Poland

Corporate and Other

Corporate and Other

Cruise Ships & Other (1)



Corporate Other (2)



(1)

The Company operated on ship-based casinos through April 16, 2023.

(2)

The Company's equity interest in Smooth Bourbon was included in the Corporate Other reporting unit until April 3, 2023, when the Company acquired the Nugget Casino Resort and the Company began consolidating Smooth Bourbon.

 

* We define Adjusted EBITDAR as net earnings (loss) attributable to Century Casinos, Inc. shareholders before interest expense (income) (including interest expense related to the Master Lease), net, income taxes (benefit), depreciation, amortization, non-controlling interests net earnings (losses) 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. The Master Lease is accounted for as a financing obligation. As such, a portion of the periodic payment under the Master Lease is recognized as interest expense with the remainder of the payment impacting the financing obligation using the effective interest method. 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 EBITDAR reported for each segment. 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 GAAP.

Adjusted EBITDAR is used outside of our financial statements solely as a valuation metric and is not considered a measure of performance recognized under GAAP. Adjusted EBITDAR is an additional metric used by analysts in valuing gaming companies subject to triple net leases such as our Master Lease since it eliminates the effects of variability in leasing methods and capital structures. This metric is included as supplemental disclosure because (i) we believe Adjusted EBITDAR is used by gaming operator analysts and investors to determine the equity value of gaming operators and (ii) financial analysts refer to Adjusted EBITDAR when valuing our business. We believe Adjusted EBITDAR is useful for equity valuation purposes because (i) its calculation isolates the effects of financing real estate, and (ii) using a multiple of Adjusted EBITDAR to calculate enterprise value allows for an adjustment to the balance sheet to recognize estimated liabilities arising from operating leases related to real estate.

Adjusted EBITDAR should not be construed as an alternative to net earnings (loss) attributable to Century Casinos, Inc. shareholders, the most directly comparable GAAP measure, as indicators of our performance. In addition, Adjusted EBITDAR as used by us may not be defined in the same manner as other companies in our industry, and, as a result, may not be comparable to similarly titled non-GAAP financial measures of other companies. Consolidated Adjusted EBITDAR should not be viewed as a measure of overall operating performance or considered in isolation or as an alternative to net earnings (loss) attributable to Century Casinos, Inc. shareholders, because it excludes the rent expense associated with our Master Lease and several other items.

** The Company defines net income (loss) margin as net income (loss) attributable to Century Casinos, Inc. shareholders divided by net operating revenue.

*** The Company defines Adjusted EBITDAR margin as Adjusted EBITDAR divided by net operating revenue. Adjusted EBITDAR margins are a non-US GAAP measure. Management uses these margins as one of several measures to evaluate the efficiency of the Company's casino operations.

ABOUT CENTURY CASINOS, INC.:

Century Casinos, Inc. is a casino entertainment company. In the United States the Company operates the following operating segments: (i) in the East, the Mountaineer Casino, Resort & Races in New Cumberland, West Virginia and Rocky Gap Casino, Resort & Golf in Flintstone, Maryland; (ii) in the Midwest, the Century Casinos & Hotels Cape Girardeau and Caruthersville in Missouri, and Century Casinos & Hotels in Cripple Creek and Central City, Colorado; and (iii) in the West, the Nugget Casino Resort, in Reno-Sparks, Nevada. In Alberta, Canada, the Company operates Century Casino & Hotel in Edmonton, the Century Casino in St. Albert, Century Mile Racetrack and Casino in Edmonton and Century Downs Racetrack and Casino in Calgary. In Poland, the Company operates six casinos through its subsidiary Casinos Poland Ltd. The Company continues to pursue other projects in various stages of development.

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 AND 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 projects in development and other opportunities, including our Caruthersville construction project and the timing for its completion, reopening our Poland casinos, the Goldman Credit Agreement and obligations under our Master Lease and our ability to repay our debt and other obligations, outcomes of legal proceedings, changes in our tax provisions or exposure to additional income tax liabilities, and plans for our casinos and our Company including expectations regarding 2024, 2025 and later results. 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 section entitled "Risk Factors" under Item 1A in our Annual Report on Form 10-K for the year ended December 31, 2023, and in subsequent periodic and current SEC filings we may make. 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.

 

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/century-casinos-inc-announces-second-quarter-2024-results-302217500.html

SOURCE Century Casinos, Inc.

FAQ

What were the Q2 2024 financial results for Century Casinos (CNTY)?

Century Casinos reported a 7% increase in net operating revenue to $146.4 million, a 23% decline in earnings from operations to $14.3 million, and a net loss of $41.6 million.

What caused the decline in earnings for Century Casinos in Q2 2024?

The decline was due to a valuation allowance on U.S. deferred tax assets, underperformance at the Nugget Casino Resort, and temporary closures of two casinos in Poland.

What are Century Casinos' capital expenditure projections for 2024 and 2025?

Century Casinos projects capital expenditures of $12.6 million for the remainder of 2024 and $12.0 million for 2025.

How did Century Casinos' Adjusted EBITDAR change in Q2 2024?

Adjusted EBITDAR decreased by 6% to $27.4 million compared to the same period in 2023.

What is the status of Century Casinos' new projects?

The new land-based casino in Caruthersville, Missouri, is ahead of schedule, and renovations in Poland are ongoing with expected completion in October 2024.

Century Casinos Inc

NASDAQ:CNTY

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