Century Casinos, Inc. Announces Fourth Quarter 2012 Results

COLORADO SPRINGS, Colo., March 28, 2013 /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, 2012.

2012 Highlights*

  • Net operating revenue was $71.8 million, a 1% increase from the year ended December 31, 2011.
  • Net earnings were $4.1 million, a 35% increase from the year ended December 31, 2011.
  • Earnings per share were $0.17
  • Book value per share** at December 31, 2012 was $4.90.

Fourth Quarter 2012 Highlights*

  • Net operating revenue was $17.7 million, a 1% increase from the three months ended December 31, 2011.
  • Net earnings were $0.6 million, a 6% increase from the three months ended December 31, 2011.
  • Earnings per share were $0.03








For the Three Months

For the Year

Amounts in thousands, except share and per share data

Ended December 31,

Ended December 31,

Consolidated Results:

2012

2011

% Change

2012

2011

% Change

Net operating revenue

$17,745

$17,603

1%

$71,828

$70,866

1%

Earnings from operations

894

984

(9%)

5,776

4,265

35%

Net earnings

624

590

6%

4,091

3,021

35%








Adjusted EBITDA***

$2,123

$2,329

(9%)

$10,563

$10,692

(1%)








Earnings per share:







Basic

$0.03

$0.03

0%

$0.17

$0.13

31%

Diluted

$0.03

$0.03

0%

$0.17

$0.13

31%

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

** The Company defines book value per share as total shareholders' equity divided by outstanding common shares.

***Adjusted EBITDA is a Non-GAAP financial measure. See discussion and reconciliation of Non-GAAP financial measures in Supplemental Information below.  

Weighted-average common shares:






Basic

24,126,727

23,877,362


24,004,166

23,891,874

Dilutive

24,144,772

24,044,231


24,104,616

24,070,634

"We are pleased to report another quarter with growth in revenue and net earnings, even though business levels softened a bit in the latter part of the year. We expect to close the Casinos Poland transaction, which we expect will be immediately accretive, in April and are very excited about the growth potential it brings for our company," said Erwin Haitzmann and Peter Hoetzinger, Co Chief Executive Officers of Century Casinos. "During 2012, we made significant progress on the implementation of our strategy to increase shareholder value and improve our financial flexibility and we successfully executed this strategy against a backdrop of ongoing macroeconomic uncertainty," they continued.

Three Months and Year Ended December 31, 2012 Results*

Net operating revenue increased by $0.1 million, or 0.8%, and $1.0 million, or 1.4%, for the three months and year ended December 31, 2012 compared to the three months and year ended December 31, 2011. Following is a summary of net operating revenue changes by property or category for the three months and year ended December 31, 2012 compared to the three months and year ended December 31, 2011, respectively:


Net Operating Revenue


For the Three Months

For the Year


 Ended December 31,

Ended December 31,


2012/2011

2012/2011

Amounts in millions

Change

Change

Century Casino & Hotel, Edmonton

$0.4

$0.6

Century Casino, Calgary

(0.1)

(0.3)

Century Casino & Hotel, Central City

0.0

0.5

Century Casino & Hotel, Cripple Creek

(0.2)

(0.3)

Cruise Ships & Other

0.0

0.4

Total

$0.1

$1.0

Earnings from operations decreased by ($0.1) million, or (9.1%), and increased by $1.5 million, or 35.4%, for the three months and year ended December 31, 2012 compared to the three months and year ended December 31, 2011. The increase in earnings from operations was due to increased efforts to attract customers, generate additional revenue and control costs. Following is a summary of earnings from operations changes by property or category for the three months and year ended December 31, 2012 compared to the three months and year ended December 31, 2011, respectively: 


Earnings from Operations


For the Three Months

For the Year


 Ended December 31,

Ended December 31,


2012/2011

2012/2011

Amounts in millions

Change

Change

Century Casino & Hotel, Edmonton

$0.2

$0.5

Century Casino, Calgary

(0.2)

(0.5)

Century Casino & Hotel, Central City

(0.1)

1.0

Century Casino & Hotel, Cripple Creek

0.0

0.1

Cruise Ships & Other

(0.1)

0.0

Corporate Other

0.1

0.5

Total

($0.1)

$1.5

Net earnings increased by less than $0.1 million, or 5.8%, and $1.1 million, or 35.4%, for the three months and year ended December 31, 2012 compared to the three months and year ended December 31, 2011. Following is a summary of net earnings changes by property or category for the three months and year ended December 31, 2012 compared to the three months and year ended December 31, 2011: 


Net Earnings


For the Three Months

For the Year


 Ended December 31,

Ended December 31,


2012/2011

2012/2011

Amounts in millions

Change

Change

Century Casino & Hotel, Edmonton

$0.4

$0.4

Century Casino, Calgary

(0.1)

(0.4)

Century Casino & Hotel, Central City

(0.1)

0.6

Century Casino & Hotel, Cripple Creek

0.0

0.1

Cruise Ships & Other

(0.1)

0.0

Corporate Other

(0.1)

0.4

Total

$0.0

$1.1

Items deducted from or added to earnings from operations to arrive at net earnings include interest income, interest expense, gains or losses on foreign currency transactions and income tax expense or benefit.

Property and Category Results*
(in thousands)

The following table shows net operating revenue and Adjusted EBITDA** by property or category for the three months and year ended December 31, 2012 and December 31, 2011.











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,


2012

2011

2012

2011

2012

2011

2012

2011

Century Casino & Hotel, Edmonton

$6,499

$6,116

$2,141

$1,963

$24,536

$23,906

$7,959

$7,899

Century Casino, Calgary

2,594

2,703

159

302

9,929

10,206

228

620

Century Casino & Hotel, Central City

4,354

4,306

714

858

18,501

17,980

3,875

3,779

Century Casino & Hotel, Cripple Creek

2,524

2,682

261

277

11,931

12,236

2,385

2,296

Cruise Ships & Other

1,766

1,796

157

261

6,923

6,538

929

1,027

Corporate

8

0

(1,309)

(1,332)

8

0

(4,813)

(4,929)

Consolidated

$17,745

$17,603

$2,123

$2,329

$71,828

$70,866

$10,563

$10,692

 

Balance Sheet and Liquidity

As of December 31, 2012, the Company had $24.8 million in cash and cash equivalents and $3.6 million in debt obligations on its balance sheet compared to $25.2 million in cash and cash equivalents and $9.1 million in debt obligations at December 31, 2011.

Conference Call Information

Today the Company will post a copy of the Annual Report on Form 10-K filed with the SEC for the year ended December 31, 2012 on its website at http://corporate.cnty.com/investor-relations/sec-filings.

Century Casinos will host its fourth quarter 2012 earnings conference call today, March 28, 2013 at 8:00 am MDT; 3:00 pm CET, respectively. U.S. domestic participants should dial 1-866-952-1906. For all other international participants, please use +1-785-424-1825 to dial-in. Participants may also listen to the call live or obtain a recording of the call on the Company's website until April 3, 2013 at http://corporate.cnty.com/investor-relations/financial-results/.

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

 

 

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

2012

2011

2012

2011

Operating revenue:





  Gaming

$15,125

$15,081

$62,871

$62,070

  Hotel, bowling, food and beverage

3,545

3,410

13,190

12,946

  Other

1,119

1,138

4,206

4,033

           Gross revenue

19,789

19,629

80,267

79,049

Less: Promotional allowances

(2,044)

(2,026)

(8,439)

(8,183)

Net operating revenue

17,745

17,603

71,828

70,866

Operating costs and expenses:





  Gaming

7,562

7,550

30,208

29,365

  Hotel, bowling, food and beverage

2,670

2,465

10,061

10,094

  General and administrative

5,443

5,158

21,452

21,587

  Depreciation

1,221

1,312

4,757

6,144

Total operating costs and expenses

16,896

16,485

66,478

67,190

Earnings from equity investment

45

(134)

426

589

Earnings from operations

894

984

5,776

4,265

Non-operating income (expense):





  Interest income

1

25

37

38

  Interest expense

(70)

(173)

(670)

(802)

  (Losses) gains on foreign currency transactions      

  & other

(5)

25

(24)

187

Non-operating (expense) income, net

(74)

(123)

(657)

(577)

Earnings before income taxes

820

861

5,119

3,688

Income tax provision

196

271

1,028

667

Net earnings

$624

$590

$4,091

$3,021






Earnings per share:





  Basic

$0.03

$0.03

$0.17

$0.13

  Diluted

$0.03

$0.03

$0.17

$0.13


 

 


CENTURY CASINOS, INC. AND SUBSIDIARIES

FINANCIAL INFORMATION – US GAAP BASIS




Century Casinos, Inc.



Condensed Consolidated Balance Sheets



(Amounts in thousands)




December 31,

December 31,


2012

2011

Assets



Current assets

$26,535

$27,286

Property and equipment, net

99,526

99,605

Other assets

11,275

9,836

Total assets

$137,336

$136,727




Liabilities and Shareholders' Equity



Current liabilities

$13,071

$21,359

Non-current liabilities

6,109

2,828

Shareholders' equity

118,156

112,540

Total liabilities and shareholders' equity

$137,336

$136,727


 


CENTURY CASINOS, INC. AND SUBSIDIARIES

SUPPLEMENTAL INFORMATION


The following tables show Adjusted EBITDA margins and Adjusted EBITDA to net earnings reconciliations by property or category. 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. A discussion of Adjusted EBITDA follows the tables.

 

Century Casinos, Inc.

Adjusted EBITDA Margins by Property or Category







For the Three Months

For the Year


Ended December 31,

Ended December 31,


2012

2011

2012

2011

Century Casino & Hotel, Edmonton

33%

32%

32%

33%

Century Casino, Calgary

6%

11%

2%

6%

Century Casino & Hotel, Central City

16%

20%

21%

21%

Century Casino & Hotel, Cripple Creek

10%

10%

20%

19%

Cruise Ships & Other

9%

15%

13%

16%

Consolidated Adjusted EBITDA Margin

12%

13%

15%

15%

 

 

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

For the three months ended December 31, 2012


Amounts in thousands










Three Months Ended December 31, 2012


Edmonton

Calgary

Central City

Cripple Creek

Cruise Ships & Other

Corporate

Total

Net earnings (loss)

$1,407

($45)

$236

$7

$30

($1,011)

$624

Interest income

0

0

0

0

0

(1)

(1)

Interest expense

57

0

0

0

11

2

70

Income taxes (benefit)

417

(35)

145

5

5

(341)

196

Depreciation

264

230

329

247

113

38

1,221

Non-cash stock based compensation

0

0

0

0

0

(4)

(4)

Foreign currency losses (gains)

(4)

5

0

0

(1)

5

5

(Gain) loss on disposition of fixed assets

0

4

4

2

(1)

1

10

Other write-offs

0

0

0

0

0

2

2

Adjusted EBITDA**

$2,141

$159

$714

$261

$157

($1,309)

$2,123

 

 

CENTURY CASINOS, INC. AND SUBSIDIARIES

SUPPLEMENTAL INFORMATION









Century Casinos, Inc.

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

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 & Other

Corporate

Total

Net 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)

(12)

(5)

0

0

0

(8)

(25)

(Gain) loss on disposition of fixed assets

0

0

(4)

0

0

28

24

Other write-offs

0

0

5

0

0

0

5

Adjusted EBITDA**

$1,963

$302

$858

$277

$261

($1,332)

$2,329

 

 

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

For the Year Ended December 31, 2012

Amounts in thousands










Year Ended December 31, 2012


Edmonton

Calgary

Central City

Cripple Creek

Cruise Ships & Other

Corporate

Total

Net earnings (loss)

$4,688

($527)

$1,561

$854

$450

($2,935)

$4,091

Interest income

(12)

(1)

0

0

0

(24)

(37)

Interest expense

656

0

0

0

11

3

670

Income taxes (benefit)

1,595

(117)

956

522

49

(1,977)

1,028

Depreciation

1,010

860

1,350

1,007

404

126

4,757

Non-cash stock based compensation

0

0

0

0

0

(4)

(4)

Foreign currency (gains) losses

20

9

0

0

0

(5)

24

(Gain) loss on disposition of fixed assets

2

4

8

2

15

1

32

Other write-offs

0

0

0

0

0

2

2

Adjusted EBITDA**

$7,959

$228

$3,875

$2,385

$929

($4,813)

$10,563

 

 

CENTURY CASINOS, INC. AND SUBSIDIARIES

SUPPLEMENTAL INFORMATION


Century Casinos, Inc.

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

For the Year Ended December 30, 2011

Amounts in thousands










Year Ended December 31, 2011


Edmonton

Calgary

Central City

Cripple Creek

Cruise Ships & Other

Corporate

Total

Net 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 losses (gains)

(18)

31

0

0

0

(200)

(187)

(Gain) loss on disposition of fixed assets

0

0

11

(5)

43

30

79

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

** The Company defines Adjusted EBITDA as net 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 accounting principles generally accepted in the United States ("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 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 net earnings (loss) above.

CENTURY CASINOS, INC. AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION

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, Nautica, Marina, Riviera, Mein Schiff 1, Mein Schiff 2, Wind Surf, Wind Star, Wind Spirit, Seven Seas Voyager, Seven Seas Mariner and Seven Seas Navigator). 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 nine 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 Casinos Poland, future results of operations, operating efficiencies, synergies and operational performance, 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, 2012. 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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