Century Casinos, Inc. Announces Second Quarter 2024 Results
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.
- 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.
- 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
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
Century Casinos' Q2 results reveal operational challenges across key markets. The
Positively, the US segment saw
Management's projection of reduced capital expenditures (
The
This decision has dramatically impacted the bottom line, turning what would have been a modest loss into a substantial
Investors should closely monitor future quarters for any reversal of this allowance, which would signal improved profit expectations. The
Challenging First Half of the Year but Maintain Positive Outlook
Second Quarter 2024 Highlights*
Compared to the three months ended June 30, 2023:
- Net operating revenue was
, an increase of$146.4 million 7% . - Earnings from operations were
, a decrease of ($14.3 million 23% ). - Net loss attributable to Century Casinos, Inc. shareholders was
( and basic loss per share was ($41.6) million ).$1.36 - Adjusted EBITDAR** was
, a decrease of ($27.4 million 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
UPDATES
Caruthersville Project – The Company is constructing a new land-based casino with a 38 room hotel in
Valuation Allowance – During the second quarter of 2024, the Company recorded a valuation allowance on its net deferred tax assets related to
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 | ||||||||||||||
$ | 106,515 | $ | 94,408 | $ | 12,107 | 13 % | $ | 202,543 | $ | 160,772 | $ | 41,771 | 26 % | |||||||||
19,827 | 18,834 | 993 | 5 % | 38,153 | 35,342 | 2,811 | 8 % | |||||||||||||||
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 | ||||||||||||||
$ | 14,102 | $ | 17,531 | $ | (3,429) | (20 %) | $ | 22,561 | $ | 31,801 | $ | (9,240) | (29 %) | |||||||||
4,362 | 4,645 | (283) | (6 %) | 8,398 | 8,652 | (254) | (3 %) | |||||||||||||||
(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 | ||||||||||||||
$ | (27,593) | $ | 7,252 | $ | (34,845) | (480 %) | $ | (29,137) | $ | 12,627 | $ | (41,764) | (331 %) | |||||||||
1,009 | 2,729 | (1,720) | (63 %) | 2,146 | 4,602 | (2,456) | (53 %) | |||||||||||||||
(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
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 | ||||||||||||||
$ | 25,037 | $ | 25,824 | $ | (787) | (3 %) | $ | 44,175 | $ | 45,595 | $ | (1,420) | (3 %) | |||||||||
5,451 | 5,114 | 337 | 7 % | 10,599 | 9,676 | 923 | 10 % | |||||||||||||||
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
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.
* | 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 | ||||||||||||
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 | |||||||||||||||
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 | Corporate | 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 |
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 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 |
CENTURY CASINOS, INC. AND SUBSIDIARIES | |||||||||||||||
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 | Corporate | 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 |
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 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 |
CENTURY CASINOS, INC. AND SUBSIDIARIES | |||||||||||||
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 | ||||||||||
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 % | |||||||||
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 % | |||||||||
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 |
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 |
CENTURY CASINOS, INC. AND SUBSIDIARIES | ||
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 |
East | Mountaineer Casino, Resort & Races | |
Rocky Gap Casino, Resort & Golf | ||
Midwest | Century Casino & Hotel — | |
Century Casino & Hotel — | ||
Century Casino & Hotel — | ||
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 | ||
Casinos | ||
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
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
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SOURCE Century Casinos, Inc.
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