2014

Century Casinos, Inc. Announces Third Quarter 2011 Results

COLORADO SPRINGS, Colo., Nov. 8, 2011 /PRNewswire/ -- Century Casinos, Inc. (NASDAQ Capital Market® and Vienna Stock Exchange: CNTY) today announced its financial results for the three and nine months ended September 30, 2011.

Third Quarter 2011 Highlights

  • Net operating revenue was $18.1 million, a 14% increase compared to the three months ended September 30, 2010.
  • Adjusted EBITDA* was $3.1 million, a 27% increase from the three months ended September 30, 2010.
  • Net earnings per share was $0.06 compared to $0.01 for the three months ended September 30, 2010.



For the Three Months

For the Nine Months

Amounts in thousands, except share and per share data

Ended September 30,

Ended September 30,

Consolidated Results:

2011

2010

%
Change

2011

2010

%
Change

Net operating revenue

$18,146

$15,984

14%

$53,263

$45,061

18%

Earnings from operations

1,548

744

108%

3,281

1,433

129%

Net earnings

1,423

321

343%

2,431

191

1173%








Adjusted EBITDA*

$3,081

$2,424

27%

$8,364

$6,528

28%








Earnings per share:







Basic  

$0.06

$0.01

500%

$0.10

$0.01

900%

Diluted

$0.06

$0.01

500%

$0.10

$0.01

900%

Weighted-average common shares:  







Basic  

23,877,362

23,678,795


23,715,224

23,584,079


Dilutive

24,191,252

23,851,110


24,015,139

23,771,930





"We are very pleased to report another quarter with growth in revenue, adjusted EBITDA and net earnings. Our strategies to continuously elevate the guest experience at our properties and to improve operating efficiencies are generating positive results. By leveraging management expertise across multiple properties in Colorado, USA and Alberta, Canada, we are starting to create synergies that should drive even higher levels of operational performance," said Erwin Haitzmann and Peter Hoetzinger, Co Chief Executive Officers of Century Casinos. "We remain focused on operational improvements and the pursuit of potential new opportunities to create additional value for shareholders," they continued.

Three and Nine Months Ended September 30, 2011 Results

Net operating revenue increased by $2.2 million, or 13.5%, and $8.2 million, or 18.2%, for the three and nine months ended September 30, 2011 compared to the three and nine months ended September 30, 2010, respectively. Net operating revenue increased at all properties except Central City for the three months ended September 30, 2011 compared to the three months ended September 30, 2010. Net operating revenue increased at all properties for the nine months ended September 30, 2011 compared to the nine months ended September 30, 2010. Following is a summary of net operating revenue increases and decreases by property for the three and nine months ended September 30, 2011 compared to the three and nine months ended September 30, 2010, respectively:



Net Operating Revenue


For the three months
ended September 30,

For the nine months
ended September 30,

Amounts in millions

Change

% Change

Change

% Change

Century Casino & Hotel, Edmonton

$0.6

10.6%

$1.6

10.2%

Century Casino, Calgary

0.5

24.5%

1.7

29.3%

Century Casino & Hotel, Central City

(0.1)

(2.0%)

0.4

3.3%

Century Casino & Hotel, Cripple Creek

0.5

16.5%

1.7

21.0%

Cruise Ships & Other

0.7

82.5%

2.8

138.8%




Total operating costs and expenses increased by $1.6 million, or 10.8%, and $6.8 million, or 15.4%, for the three and nine months ended September 30, 2011 compared to the three and nine months ended September 30, 2010, respectively. Total operating costs increased at all of our properties for both the three and nine months ended September 30, 2011 compared to the three and nine months ended September 30, 2010. Following is a summary of total operating costs and expenses increases by property for the three and nine months ended September 30, 2011 compared to the three and nine months ended September 30, 2010, respectively:  



Total Operating Costs


For the three months
ended September 30,

For the nine months
ended September 30,

Amounts in millions

Change

% Change

Change

% Change

Century Casino & Hotel, Edmonton

$0.3

8.4%

$0.9

7.2%

Century Casino, Calgary

0.4

19.4%

1.8

31.0%

Century Casino & Hotel, Central City

0.1

0.8%

0.5

4.3%

Century Casino & Hotel, Cripple Creek

0.3

11.2%

0.9

11.5%

Cruise Ships & Other

0.6

75.8%

2.5

130.2%

Corporate

(0.1)

(5.8%)

0.2

4.9%




Net earnings increased by $1.1 million, or 343%, and $2.2 million, or 1173%, for the three and nine months ended September 30, 2011 compared to the three and nine months ended September 30, 2010, respectively. Net earnings increased at all of our properties except Central City for the three months ended September 30, 2011 compared to the three months ended September 30, 2010. Net earnings increased at all of our properties except for Central City and Calgary for the nine months ended September 30, 2011 compared to the nine months ended September 30, 2010. Following is a summary of net earnings increases and decreases by property for the three and nine months ended September 30, 2011 compared to the three and nine months ended September 30, 2010, respectively:  



Net Earnings


For the three months
ended September 30,

For the nine months
ended September 30,

Amounts in millions

Change

% Change

Change

% Change

Century Casino & Hotel, Edmonton

$0.4

49.4%

$0.9

38.5%

Century Casino, Calgary

0.2

162.2%

(0.1)

(74.7%)

Century Casino & Hotel, Central City

(0.1)

(19.9%)

(0.0)

(6.0%)

Century Casino & Hotel, Cripple Creek

0.1

57.1%

0.5

178.5%

Cruise Ships & Other

0.1

275.9%

0.3

311.7%




Property Results
(in thousands)



Net Operating
Revenue

Adjusted EBITDA*

Net Operating
Revenue

Adjusted EBITDA*


For the Three
Months

For the Three
Months

For the Nine
Months

For the Nine
Months

Ended September
30,

Ended September
30,

Ended September
30,

Ended September
30,


2011

2010

2011

2010

2011

2010

2011

2010

Century Casino & Hotel, Edmonton

5,852

5,291

1,936

1,693

17,791

16,147

5,939

5,107

Century Casino, Calgary

2,446

1,964

96

(90)

7,503

5,804

318

62

Century Casino & Hotel, Central City

4,754

4,849

1,010

1,283

13,674

13,231

2,919

3,152

Century Casino & Hotel, Cripple Creek

3,506

3,010

804

639

9,554

7,893

2,019

1,322

Cruise Ships & Other

1,588

870

223

113

4,741

1,986

768

350

Corporate

-

-

(988)

(1,214)

-

-

(3,599)

(3,465)

Consolidated

18,146

15,984

3,081

2,424

53,263

45,061

8,364

6,528




Balance Sheet and Liquidity

As of September 30, 2011, the Company had $21.3 million in cash and cash equivalents and $9.4 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-Q filed with the SEC for the third quarter of 2011 on its website at http://corporate.cnty.com/investor-relations/sec-filings/

Century Casinos will host its third quarter 2011 earnings conference call today at 10:00 am MST; 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/financial-results/

*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 September 30,

For the nine months
ended September 30,

Amounts in thousands, except for per share information

2011

2010

2011

2010

Operating revenue:





 Gaming

$16,236

$14,348

$46,989

$40,169

 Hotel, bowling, food and beverage

3,152

2,789

9,536

8,311

 Other

956

773

2,895

2,122

           Gross revenue

20,344

17,910

59,420

50,602

Less: Promotional allowances

(2,198)

(1,926)

(6,157)

(5,541)

Net operating revenue

18,146

15,984

53,263

45,061

Operating costs and expenses:





 Gaming

7,543

6,289

21,815

17,578

 Hotel, bowling, food and beverage

2,565

2,404

7,629

6,742

 General and administrative

5,213

4,986

16,429

15,082

 Depreciation

1,526

1,529

4,832

4,542

Total operating costs and expenses

16,847

15,208

50,705

43,944

Earnings from equity investment

249

(32)

723

316

Earnings from operations

1,548

744

3,281

1,433

Non-operating income (expense):





 Interest income

6

17

13

39

 Interest expense

(186)

(280)

(629)

(861)

 (Losses) gains on foreign currency transactions & other

(27)

14

162

26

Non-operating income (expense), net

(207)

(249)

(454)

(796)

Earnings before income taxes

1,341

495

2,827

637

Income tax provision

(82)

174

396

446

Net earnings

$1,423

$321

$2,431

$191






Earnings per share:





 Basic

$0.06

$0.01

$0.10

$0.01

 Diluted

$0.06

$0.01

$0.10

$0.01




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


Century Casinos, Inc.
Condensed Consolidated Balance Sheets
(Amounts in thousands)



September 30,

December 31,

2011

2010

Assets



Current Assets

$23,804

$23,467

Property and equipment, net

99,357

103,956

Other Assets

9,339

9,303

Total Assets

$132,500

$136,726




Liabilities and Shareholders' Equity



Current Liabilities

$11,325

$14,057

Non-Current Liabilities

9,394

11,171

Shareholders' Equity

111,781

111,498

Total Liabilities and Shareholders' Equity

$132,500

$136,726




CENTURY CASINOS, INC. AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION


Century Casinos, Inc.
Adjusted EBITDA Margins ** by Property (Unaudited)



For the Three Months

For the Nine Months

Ended September 30,

Ended September 30,


2011

2010

2011

2010

Century Casino & Hotel, Edmonton

33%

32%

33%

32%

Century Casino, Calgary

4%

-5%

4%

1%

Century Casino & Hotel, Central City

21%

26%

21%

24%

Century Casino & Hotel, Cripple Creek

23%

21%

21%

17%

Cruise Ships & Other

14%

13%

16%

18%

Consolidated Adjusted EBITDA Margin

17%

15%

16%

14%




Century Casinos, Inc.
Reconciliation of Adjusted EBITDA * to Earnings (Loss) by Property (Unaudited)
For the Three and Nine Months Ended September 30, 2011 and 2010


Amounts In thousands


Three Months Ended September 30, 2011


Edmonton

Calgary

Central
City

Cripple
Creek

Cruise
Ships &
Other

Corporate

Total


Earnings (loss)

1,149

74

302

341

109

(552)

1,423

Interest income

(6)

-

-

-

-

-

(6)

Interest expense

185

-

-

-

-

1

186

Income taxes (benefit)

234

(170)

173

208

2

(529)

(82)

Depreciation

373

194

535

255

112

57

1,526

Non-cash stock based compensation

-

-

-

-

-

4

4

Foreign currency losses (gains)

1

(2)

-

-

-

29

28

Loss on disposition of fixed assets

-

-

-

-

-

2

2

Adjusted EBITDA*

1,936

96

1,010

804

223

(988)

3,081




CENTURY CASINOS, INC. AND SUBSIDIARIES

SUPPLEMENTAL INFORMATION


Century Casinos, Inc.
Reconciliation of Adjusted EBITDA * to Earnings (Loss) by Property (Unaudited)
For the Three and Nine Months Ended September 30, 2011 and 2010



Three Months Ended September 30, 2010


Edmonton

Calgary

Central
City

Cripple
Creek

Cruise
Ships &
Other

Corporate

Total


Earnings (loss)

769

(119)

377

217

29

(952)

321

Interest income

(4)

-

-

-

-

(13)

(17)

Interest expense

280

-

-

-

-

-

280

Income taxes (benefit)

296

(45)

219

134

1

(431)

174

Depreciation

350

77

677

288

83

54

1,529

Non-cash stock based compensation

-

-

-

-

-

98

98

Foreign currency (gains)

(4)

(3)

-

-

-

(15)

(22)

Property write-down and other write offs

-

-

10

-

-

(10)

-

Loss on disposition of fixed assets

6

-

-

-

-

55

61

Adjusted EBITDA*

1,693

(90)

1,283

639

113

(1,214)

2,424


















Nine Months Ended September 30, 2011


Edmonton

Calgary

Central
City

Cripple
Creek

Cruise
Ships &
Other

Corporate

Total


Earnings (loss)

3,242

(152)

673

777

387

(2,496)

2,431

Interest income

(13)

-

-

-

-

-

(13)

Interest expense

626

1

-

-

-

1

628

Income taxes (benefit)

975

(144)

377

476

7

(1,295)

396

Depreciation

1,114

577

1,854

771

331

185

4,832

Non-cash stock based compensation

-

-

-

-

-

196

196

Foreign currency (gains) losses

(5)

36

-

-

-

(192)

(161)

Loss (Gain) on disposition of fixed assets

-

-

15

(5)

43

2

55

Adjusted EBITDA*

5,939

318

2,919

2,019

768

(3,599)

8,364




CENTURY CASINOS, INC. AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION


Century Casinos, Inc.
Reconciliation of Adjusted EBITDA * to Earnings (Loss) by Property (Unaudited)
For the Three and Nine Months Ended September 30, 2011 and 2010


Nine Months Ended September 30, 2010


Edmonton

Calgary

Central
City

Cripple
Creek

Cruise
Ships &
Other

Corporate

Total


Earnings (loss)

2,340

(87)

723

279

94

(3,158)

191

Interest income

(20)

(1)

-

-

-

(18)

(39)

Interest expense

857

-

-

-

-

4

861

Income taxes (benefit)

856

(33)

405

171

3

(956)

446

Depreciation

1,047

185

2,023

871

253

163

4,542

Non-cash stock based compensation

-

-

-

-

-

386

386

Foreign currency losses (gains)

18

(2)

-

-

-

57

73

Loss on disposition of fixed assets

9

-

1

1

-

57

68

Adjusted EBITDA*

5,107

62

3,152

1,322

350

(3,465)

6,528




*  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. 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 seven casinos in Poland. The Company also manages 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, operational efficiencies, synergies and operational performance, expected competition, the impact of new gaming laws and plans for our casinos. 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, 2010. 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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