Century Casinos, Inc. Announces Fourth Quarter 2011 Results

COLORADO SPRINGS, Colo., March 29, 2012 /PRNewswire/ -- Century Casinos, Inc. (NASDAQ Capital Market® and Vienna Stock Exchange: CNTY) today announced its financial results for the three months and year ended December 31, 2011.

Fourth Quarter 2011 Highlights

  • Net operating revenue was $17.6 million, a 13% increase compared to the three months ended December 31, 2010.
  • Adjusted EBITDA* was $2.3 million, a 70% increase from the three months ended December 31, 2010.



For the Three Months

For the Year

Amounts in thousands, except share and per share data

Ended December 31,

Ended December 31,

Consolidated Results:

2011

2010

%
Change

2011

2010

%
Change

Net operating revenue

$17,603

$15,631

13%

$70,866

$60,692

17%

Earnings from operations

984

(367)

368%

4,265

1,067

300%

Net earnings**

590

830

(29%)

3,021

1,022

196%








Adjusted EBITDA*

$2,329

$1,367

70%

$10,692

$7,909

35%








Earnings per share:







Basic  

$0.03

$0.04**

(25%)

$0.13

$0.04**

225%

Diluted

$0.03

$0.03**

0%

$0.13

$0.04**

225%

Weighted-average common shares:  







Basic  

23,877,362

23,701,249


23,891,874

23,613,612


Dilutive

24,044,231

23,887,634


24,070,634

23,795,358


** Net earnings results for the three months and year ended December 31, 2010, include a $1.2 million gain on bargain purchase associated with our Century Casino Calgary acquisition.




"We are pleased to report that 2011 revenue, adjusted EBITDA and net earnings significantly exceeded last year's results. Throughout the fourth quarter and full year, customer spending at our facilities improved despite widespread economic concerns and volatility in the capital markets. We also continued to make progress across the organization in enhancing operating efficiencies and maintaining a disciplined approach to marketing," said Erwin Haitzmann and Peter Hoetzinger, Co Chief Executive Officers of Century Casinos. "With substantial cash flow being generated from our current operations, we continue to actively monitor and conservatively manage our capital structure, which provides us with the financial flexibility to leverage our balance sheet for growth in other domestic and international gaming opportunities. We are encouraged by our 2011 performance and indications for general economic improvements in 2012. Our operational performance in the first quarter of 2012 indicates a continuation of the positive trends experienced last year," they continued.

Three Months and Year Ended December 31, 2011 Results

Net operating revenue increased by a total of $2.0 million, or 13%, for the three months ended December 31, 2011 compared to the three months ended December 31, 2010 and by a total of $10.2 million, or 17%, for the year ended December 31, 2011 compared to the year ended December 31, 2010. Following is a summary of the change in net operating revenue by property or category for the three months and year ended December 31, 2011 compared to the three months and year ended December 31, 2010, respectively:



Net Operating Revenue


For the Three Months
Ended December 31,

For the Year
Ended December 31,


2011

vs. 2010

2011

vs. 2010

Amounts in millions

Change

% Change

Change

% Change

Century Casino & Hotel, Edmonton

$0.4

7%

$2.1

9%

Century Casino, Calgary

0.4

18%

2.1

26%

Century Casino & Hotel, Central City

0.2

4%

0.6

4%

Century Casino & Hotel, Cripple Creek

0.2

9%

1.9

18%

Cruise Ships & Aruba

0.8

80%

3.5

119%

Total

$2.0

13%

$10.2

17%




Earnings from operations increased by a total of $1.3 million, or 368%, for the three months ended December 31, 2011 compared to the three months ended December 31, 2010 and by a total of $3.2 million, or 300%, for the year ended December 31, 2011 compared to the year ended December 31, 2010. Following is a summary of the change in earnings from operations by property or category for the three months and year ended December 31, 2011 compared to the three months and year ended December 31, 2010, respectively:  



Earnings from Operations


For the Three Months
Ended December 31,

For the Year
Ended December 31,


2011

vs. 2010

2011

vs. 2010

Amounts in millions

Change

% Change

Change

% Change

Century Casino & Hotel, Edmonton

$0.2

17.0%

$1.0

18.7%

Century Casino, Calgary

0.4

129.2%

0.3

65.8%

Century Casino & Hotel, Central City

0.3

209.5%

0.2

19.5%

Century Casino & Hotel, Cripple Creek

0.1

156.7%

0.9

206.0%

Cruise Ships & Other

0.2

443.2%

0.5

885.5%

Corporate Other

0.1

6.6%

0.3

4.9%

Total

$1.3

368.0%

$3.2

300.0%




Net earnings decreased by $0.2 million for the three months ended December 31, 2011 compared to the three months ended December 31, 2010 and increased by $2.0 million for the year ended December 31, 2011 compared to the year ended December 31, 2010. Following is a summary of the change in net earnings by property or category for the three months and year ended December 31, 2011 compared to the three months and year ended December 31, 2010, respectively:  



Net Earnings


For the Three Months
Ended December 31,

For the Year
Ended December 31,


2011

vs. 2010

2011

vs. 2010

Amounts in millions

Change

% Change

Change

% Change

Century Casino & Hotel, Edmonton

($0.0)

(1%)

$0.2

4%

Century Casino, Calgary

(0.8)

(97%)

(0.4)

(147%)

Century Casino & Hotel, Central City

0.2

190%

0.2

20%

Century Casino & Hotel, Cripple Creek

0.0

158%

0.5

207%

Cruise Ships & Aruba

0.2

426%

0.4

760%

Corporate Other

0.2

18%

1.1

25%

Total

($0.2)

(29%)

$2.0

196%




Included in net earnings results for the three months and year ended December 31, 2010, is a $1.2 million gain on bargain purchase associated with our Century Casino Calgary acquisition. Items deducted from or added to earnings from operations to arrive at net earnings include gain on bargain purchase, interest income, interest expense and gains on foreign currency transactions.

Overall, the increase in earnings from operations and net earnings in 2011 is due to increased efforts to attract customers and generate additional revenue while controlling costs at all properties. The increase is also due to a 4.0% increase in the average exchange rate between the U.S. and Canadian dollar for the year ended December 31, 2011 compared to the year ended December 31, 2010.

Property and Category Results

(in thousands)



Net Operating Revenue

Adjusted EBITDA*

Net Operating Revenue

Adjusted EBITDA*


For the Three
Months

For the Three
Months

For the Year

For the Year

Ended December 31,

Ended December 31,

Ended December 31,

Ended December 31,


2011

2010

2011

2010

2011

2010

2011

2010

Century Casino & Hotel, Edmonton

$6,116

$5,696

$1,963

$1,775

$23,906

$21,844

$7,899

$6,881

Century Casino, Calgary

2,703

2,286

302

(255)

10,206

8,090

620

(193)

Century Casino & Hotel, Central City

4,306

4,138

858

883

17,980

17,368

3,779

4,024

Century Casino & Hotel, Cripple Creek

2,682

2,458

277

249

12,236

10,351

2,296

1,571

Cruise Ships & Aruba

1,796

1,001

261

61

6,538

2,988

1,027

412

Corporate Other

0

52

(1,332)

(1,346)

0

51

(4,929)

(4,786)

Consolidated

$17,603

$15,631

$2,329

$1,367

$70,866

$60,692

$10,692

$7,909




Balance Sheet and Liquidity

As of December 31, 2011, the Company had $25.2 million in cash and cash equivalents and $9.1 million in debt obligations on its balance sheet compared to $21.5 million in cash and cash equivalents and $13.5 million in debt obligations at December 31, 2010.  

Conference Call Information

Today the Company will post a copy of the Form 10-K filed with the SEC for the year ended December 31, 2011 on its website at http://corporate.cnty.com/investor-relations/sec-filings.  

Century Casinos will host its fourth quarter 2011 earnings conference call today at 10:00 am MDT; 6:00 pm CET, respectively. U.S. domestic participants should dial 1-800-862-9098. For all other international participants, please use +1-785-424-1051 to dial in. Participants may also listen to the call live or obtain a recording of the call on the Company's website at http://corporate.cnty.com/investor-relations/sec-filings.

* See discussion and reconciliation of Non-GAAP financial measures in Supplemental Information below.

CENTURY CASINOS, INC. AND SUBSIDIARIES

FINANCIAL INFORMATION – US GAAP BASIS



For the Three Months
Ended December 31,

For the Year Ended
December 31,

Amounts in thousands, except for per share information

2011

2010

2011

2010

Operating revenue:





 Gaming

$15,081

$13,467

$62,070

$53,635

 Hotel, bowling, food and beverage

3,410

3,193

12,946

11,505

 Other

1,138

792

4,033

2,914

           Gross revenue

19,629

17,452

79,049

68,054

Less: Promotional allowances

(2,026)

(1,821)

(8,183)

(7,362)

Net operating revenue

17,603

15,631

70,866

60,692

Operating costs and expenses:





 Gaming

7,550

6,573

29,365

24,150

 Hotel, bowling, food and beverage

2,465

2,632

10,094

9,378

 General and administrative

5,153

5,428

21,582

20,493

 Impairments and other write-offs, net of recoveries

5

0

5

13

 Depreciation

1,312

1,583

6,144

6,125

Total operating costs and expenses

16,485

16,216

67,190

60,159

Earnings from equity investment

(134)

218

589

534

Earnings from operations

984

(367)

4,265

1,067

Non-operating income (expense):





 Gain on bargain purchase

0

1180

0

1,180

 Interest income

25

11

38

50

 Interest expense

(173)

(313)

(802)

(1,174)

 Gains on foreign currency transactions & other

25

143

187

169

Non-operating (expense) income, net

(123)

1,021

(577)

225

Earnings before income taxes

861

654

3,688

1,292

Income tax provision (benefit)

271

(176)

667

270

Net earnings

590

830

$3,021

$1,022






Earnings per share:





 Basic

$0.03

$0.04

$0.13

$0.04

 Diluted

$0.03

$0.03

$0.13

$0.04




CENTURY CASINOS, INC. AND SUBSIDIARIES

FINANCIAL INFORMATION – US GAAP BASIS


Century Casinos, Inc.

Condensed Consolidated Balance Sheets

(Amounts in thousands)




Revised


December 31,

December 31,

2011

2010

Assets



Current Assets

$27,286

$23,467

Property and equipment, net

99,605

103,956

Other Assets

9,836

9,169

Total Assets

$136,727

$136,592




Liabilities and Shareholders' Equity



Current Liabilities

$21,359

$14,243

Non-Current Liabilities

2,828

11,374

Shareholders' Equity

112,540

110,975

Total Liabilities and Shareholders' Equity

$136,727

$136,592




CENTURY CASINOS, INC. AND SUBSIDIARIES

SUPPLEMENTAL INFORMATION


Century Casinos, Inc.

Adjusted EBITDA Margins ** by Property or Category (Unaudited)



For the Three Months

For the Year

Ended December 31,

Ended December 31,


2011

2010

2011

2010

Century Casino & Hotel, Edmonton

32%

31%

33%

32%

Century Casino, Calgary

11%

(11%)

6%

(2%)

Century Casino & Hotel, Central City

20%

21%

21%

23%

Century Casino & Hotel, Cripple Creek

10%

10%

19%

15%

Cruise Ships & Aruba

15%

6%

16%

14%

Consolidated Adjusted EBITDA Margin

13%

9%

15%

13%





Reconciliation of Adjusted EBITDA * to Earnings (Loss) by Property or Category (Unaudited)

For the Three Months Ended December 31, 2011


Amounts In thousands


Three Months Ended December 31, 2011


Edmonton

Calgary

Central
City

Cripple
Creek

Cruise
Ships &
Aruba

Corporate

Total


Earnings (loss)

1,057

27

307

11

137

(949)

590

Interest income

(8)

0

0

0

0

(17)

(25)

Interest expense

168

3

0

0

0

2

173

Income taxes (benefit)

450

75

177

6

14

(451)

271

Depreciation

308

202

373

260

110

59

1,312

Non-cash stock based compensation

0

0

0

0

0

4

4

Foreign currency (gains) losses

(12)

(5)

0

0

0

(8)

(25)

(Gain) loss on disposition of fixed assets

0

0

(4)

0

0

28

24

Impairments and other write-offs

0

0

5

0

0

0

5

Adjusted EBITDA*

1,963

302

858

277

261

(1,332)

2,329





CENTURY CASINOS, INC. AND SUBSIDIARIES

SUPPLEMENTAL INFORMATION


Century Casinos, Inc.

Reconciliation of Adjusted EBITDA * to Earnings (Loss) by Property or Category (Unaudited)

For the Three Months Ended December 31, 2010



Three Months Ended December 31, 2010


Edmonton

Calgary

Central
City

Cripple
Creek

Cruise
Ships &
Other

Corporate

Total


Earnings (loss)

1,067

871

106

(19)

(42)

(1,153)

830

Interest income

(2)

0

0

0

0

(9)

(11)

Interest expense

309

0

0

0

0

4

313

Income taxes (benefit)

28

(43)

52

(11)

(2)

(200)

(176)

Depreciation

360

87

675

278

105

78

1,583

Non-cash stock based compensation

0

0

0

0

0

96

96

Foreign currency (gains)

13

10

0

0

0

(166)

(143)

Gain on bargain purchase

0

(1,180)

0

0

0

0

(1,180)

(Gain) loss on disposition of fixed assets

0

0

50

1

0

4

55

Adjusted EBITDA*

1,775

(255)

883

249

61

(1,346)

1,367




Reconciliation of Adjusted EBITDA * to Earnings (Loss) by Property or Category (Unaudited)

For the Year Ended December 31, 2011



Year Ended December 31, 2011


Edmonton

Calgary

Central City

Cripple
Creek

Cruise
Ships &
Other

Corporate

Total


Earnings (loss)

4,298

(126)

983

788

456

(3,378)

3,021

Interest income

(21)

0

0

0

0

(17)

(38)

Interest expense

794

4

0

0

0

4

802

Income taxes (benefit)

1,424

(68)

553

482

86

(1,810)

667

Depreciation

1,422

779

2,227

1,031

442

243

6,144

Non-cash stock based compensation

0

0

0

0

0

199

199

Foreign currency (gains) losses

(18)

31

0

0

0

(200)

(187)

(Gain) loss on disposition of fixed assets

0

0

11

(5)

43

30

79

Impairments and other write-offs

0

0

5

0

0

0

5

Adjusted EBITDA*

7,899

620

3,779

2,296

1,027

(4,929)

10,692




CENTURY CASINOS, INC. AND SUBSIDIARIES

SUPPLEMENTAL INFORMATION


Century Casinos, Inc.

Reconciliation of Adjusted EBITDA * to Earnings (Loss) by Property or Category (Unaudited)

For the Year Ended December 31, 2010



Year Ended December 31, 2010


Edmonton

Calgary

Central
City

Cripple
Creek

Cruise
Ships &
Aruba

Corporate

Total


Earnings (loss)

4,148

266

821

257

53

(4,523)

1,022

Interest income

(22)

(1)

0

0

0

(27)

(50)

Interest expense

1,166

0

0

0

0

8

1,174

Income taxes (benefit)

133

441

454

158

2

(918)

270

Depreciation

1,406

272

2,698

1,150

357

242

6,125

Non-cash stock based compensation

0

0

0

0

0

482

482

Foreign currency (gains) losses

31

9

0

0

0

(110)

(70)

Gain on bargain purchase

0

(1,180)

0

0

0

0

(1,180)

(Gain) loss on disposition of fixed assets

9

0

51

2

0

61

123

Impairments and other write-offs

10

0

0

4

0

(1)

13

Adjusted EBITDA*

6,881

(193)

4,024

1,571

412

(4,786)

7,909




*  The Company defines Adjusted EBITDA as earnings (loss) before interest, income taxes, depreciation, amortization, pre-opening expenses, non-cash stock based compensation charges, asset impairment costs, gains (losses) on disposition of fixed assets, discontinued operations, realized foreign currency gains (losses) and certain other one-time items. 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 and Adjusted EBITDA reported for each property. 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 EBITDA is not considered a measure of performance recognized under accounting principles generally accepted in the United States of America. Management believes that Adjusted EBITDA is a valuable measure of the relative performance of its properties and the Company. The gaming industry commonly uses Adjusted EBITDA as a method of arriving at the economic value of a casino operation. Management uses Adjusted EBITDA to compare the relative operating performance of separate operating units by eliminating the above mentioned items associated with the varying levels of capital expenditures for infrastructure required to generate revenue, and the often high cost of acquiring existing operations. EBITDA (Earnings before interest, taxes, depreciation and amortization) is used by the Company's lending institution to gauge operating performance. The Company's computation of Adjusted EBITDA may be different from, and therefore may not be comparable to, similar measures used by other companies within the gaming industry. Please see the reconciliation of Adjusted EBITDA to earnings (loss) above.

**  The Company defines Adjusted EBITDA margin as Adjusted EBITDA divided by net operating revenue. Management uses this margin as one of several measures to evaluate the efficiency of the Company's casino operations.

About Century Casinos, Inc.:

Century Casinos, Inc. is an international casino entertainment company that owns and operates Century Casino & Hotels in Cripple Creek and Central City, Colorado, and in Edmonton, Alberta, Canada and the Century Casino in Calgary, Alberta, Canada. The Company also operates casinos aboard twelve luxury cruise vessels (Regatta, Insignia, Nautica, Marina, Mein Schiff 1, Mein Schiff 2, Wind Surf, Wind Star, Wind Spirit, Seven Seas Voyager, Seven Seas Mariner and Seven Seas Navigator) and signed a contract for an additional casino on board Oceania Cruises' Riviera that is expected to start operations in 2012. Through its Austrian subsidiary, Century Casinos Europe GmbH, the Company holds a 33.3% ownership interest in Casinos Poland Ltd., the owner and operator of four casinos in Poland. The Company also manages the operations of the casino at the Radisson Aruba Resort, Casino & Spa in Aruba, Caribbean. Century Casinos, Inc. continues to pursue other international projects in various stages of development.

For more information about Century Casinos, visit our website at www.centurycasinos.com. Century Casinos' common stock trades on The NASDAQ Capital Market® and the Vienna Stock Exchange under the symbol CNTY.

This release may contain "forward-looking statements" within the meaning of Section 27A of the Security 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 future results of operations, operating efficiencies, synergies and operational performance, economic improvements in 2012 and plans for our casinos and our Company. 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, 2011. 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.

SOURCE Century Casinos, Inc.



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