CORRECTION: Century Casinos Reports Financial Results for Third Quarter 2013

COLORADO SPRINGS, Colo., Nov. 21, 2013 /PRNewswire/ -- Century Casinos, Inc. (NASDAQ Capital Market® and Vienna Stock Exchange: CNTY) announced today due to a mathematical error certain corrections to a press release it issued on November 14, 2013. The corrections did not change third quarter 2013 results and are the following:

  1. On page two, Adjusted EBITDA for the nine months ended September 30, 2013 has been changed from $14.588 million to $10.447 million.
  2. On page five, Adjusted EBITDA for the nine months ended September 30, 2013 for the category Corporate Other has been changed from ($446) million to ($4.587) million.
  3. On pages eight and nine, non-cash stock based compensation for the category Corporate Other has been changed from $1 thousand to $8 thousand for the three months ended September 30, 2013 and from $4 thousand to $11 thousand for the nine months ended September 30, 2013.

The November 14, 2013 earnings release that follows has been corrected and restated in its entirety to reflect these corrections.

Century Casinos, Inc. Announces Third Quarter 2013 Results

Colorado Springs, ColoradoNovember 14, 2013 – 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, 2013.

Third Quarter 2013 Highlights*

  • Net operating revenue was $28.8 million, a 54% increase compared to the three months ended September 30, 2012.
  • Adjusted EBITDA** was $3.3 million, a 20% increase from the three months ended September 30, 2012.
  • Net earnings were $1.1 million, a 10% decrease from the three months ended September 30, 2012.
  • Earnings per share were $0.04, a 20% decrease from the three months ended September 30, 2012.

The period over period increases in net operating revenue and Adjusted EBITDA relate primarily to the inclusion of operating results from Casinos Poland, Ltd. (CPL) in the second quarter of 2013. In April 2013, the Company completed the purchase of an additional 33.3% ownership interest in CPL. The Company now owns a 66.6% ownership interest in CPL and consolidates CPL financial information as a majority-owned subsidiary for which the Company has a controlling financial interest. Prior to the acquisition of this additional interest in CPL, the Company owned 33.3% of CPL and accounted for the CPL ownership interest as an equity investment.


For the Three Months

For the Nine Months

Amounts in thousands, except per share data

Ended September 30,

Ended September 30,

Consolidated Results:

2013

2012

% Change

2013

2012

% Change

Net operating revenue

$28,826

$18,723

54%

$75,164

$54,082

39%

Earnings from operations

1,370

1,615

(15%)

5,499

4,882

13%

Net earnings

1,073

1,186

(10%)

6,392

3,467

84%








Adjusted EBITDA**

$3,346

$2,795

20%

$10,447

$8,440

24%








Earnings per share:







Basic

$0.04

$0.05

(20%)

$0.26

$0.14

86%

Diluted

$0.04

$0.05

(20%)

$0.26

$0.14

86%

Weighted average common shares: 







Basic 

24,249

24,117


24,334

24,117


Diluted

24,413

24,140


24,464

24,318


"We posted solid results in the third quarter, even though both our Colorado operations and our casino in Calgary were significantly impacted by severe floods in their feeder markets. We are also very excited about the progress we made with the racetrack and casino project in Calgary", said Erwin Haitzmann and Peter Hoetzinger, Co Chief Executive Officers of Century Casinos. 

Three Months and Nine Ended September 30, 2013 Results*

Net operating revenue increased by $10.1 million, or 54%, and increased by $21.1 million, or 39% for the three and nine months ended September 30, 2013 compared to the three and nine months ended September 30, 2012. Following is a summary of the changes in net operating revenue by property or category for the three and nine months ended September 30, 2013 compared to the three and nine months ended September 30, 2012:







Net Operating Revenue



For the Three Months

For the Nine Months


 Ended September 30,

Ended September 30,


2013/2012

2013/2012

Amounts in millions

Change

% Change

Change

% Change

Century Casino & Hotel, Edmonton

$0.0

0%

$0.7

4%

Century Casino, Calgary

(0.4)

(18%)

(0.9)

(13%)

Century Casino & Hotel, Central City

(0.5)

(10%)

(0.7)

(5%)

Century Casino & Hotel, Cripple Creek

(0.1)

(2%)

0.0

0%

Casinos Poland

11.1

100%

21.9

100%

Cruise Ships & Other

0.0

(2%)

0.1

2%

Total

$10.1

54%

$21.1

39%

Earnings from operations decreased by ($0.3) million, or (15%), and increased by $0.6 million, or 13% for the three and nine months ended September 30, 2013 compared to the three and nine months ended September 30, 2012. Following is a summary of the changes in earnings from operations by property or category for the three and nine months ended September 30, 2013 compared to the three and nine months ended September 30, 2012:







Earnings from Operations



For the Three Months

For the Nine Months


 Ended September 30,

Ended September 30,


2013/2012

2013/2012

Amounts in millions

Change

% Change

Change

% Change

Century Casino & Hotel, Edmonton

$0.2

11%

$0.9

18%

Century Casino, Calgary

0.2

57%

0.4

84%

Century Casino & Hotel, Central City

(0.2)

(30%)

(0.4)

(21%)

Century Casino & Hotel, Cripple Creek

(0.1)

(12%)

0.3

19%

Casinos Poland

(0.1)

(100%)

0.5

100%

Cruise Ships & Other

(0.1)

(35%)

0.0

5%

Corporate Other

(0.2)

(15%)

(1.1)

(31%)

Total

($0.3)

(15%)

$0.6

13%

Net earnings decreased by ($0.1) million, or (10%), and increased by $2.9 million, or 84% for the three and nine months ended September 30, 2013 compared to the three and nine months ended September 30, 2012. Following is a summary of the changes in net earnings by property or category for the three and nine months ended September 30, 2013 compared to the three and nine months ended September 30, 2012:







Net Earnings



For the Three Months

For the Nine Months


 Ended September 30,

Ended September 30,


2013/2012

2013/2012

Amounts in millions

Change

% Change

Change

% Change

Century Casino & Hotel, Edmonton

$0.2

15%

$1.0

31%

Century Casino, Calgary

0.2

56%

$0.5

98%

Century Casino & Hotel, Central City

(0.2)

(30%)

(0.3)

(21%)

Century Casino & Hotel, Cripple Creek

0.0

(12%)

0.2

19%

Casinos Poland

0.0

100%

0.4

100%

Cruise Ships & Other

(0.0)

(37%)

0.0

4.7%

Corporate Other

(0.3)

(43%)

1.1

59%

Total

($0.1)

(10%)

$2.9

84%

Items deducted from or added to earnings from operations to arrive at net earnings include gain on business combination related to the acquisition of the additional ownership interest in CPL, interest income, interest expense, gains on foreign currency transactions, income tax expense and non-controlling interest.

Property and Category Results (in thousands)

The following are property and category results for net operating revenue and Adjusted EBITDA.















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,

Change

Ended September 30,

Change

Ended September 30,

Change

Ended September 30,

Change


2013

2012


2013

2012


2013

2012


2013

2012


Century Casino & Hotel, Edmonton

$6,095

$6,091

0%

$2,137

$1,958

9%

$18,756

$18,035

4%

$6,757

$5,817

16%

Century Casino, Calgary

1,928

2,337

(18%)

41

(213)

119%

6,392

7,336

(13%)

603

69

774%

Century Casino & Hotel, Central City

4,559

5,057

(10%)

937

1,202

(22%)

13,416

14,147

(5%)

2,662

3,160

(16%)

Century Casino & Hotel, Cripple Creek

3,311

3,377

(2%)

776

860

(10%)

9,374

9,406

(0%)

2,339

2,121

10%

Casinos Poland

11,115

0

100%

734

0

100%

21,985

0

100%

1,875

0

100%

Cruise Ships & Other

1,818

1,861

(2%)

247

313

(21%)

5,241

5,158

2%

798

773

3%

Corporate

0

0

0%

(1,526)

(1,325)

15%

0

0

0%

(4,587)

(3,500)

31%

Consolidated

$28,826

$18,723

54%

$3,346

$2,795

20%

$75,164

$54,082

39%

$10,447

$8,440

24%

Balance Sheet and Liquidity

As of September 30, 2013, the Company had $30.4 million in cash and cash equivalents and $16.0 million in outstanding debt on its balance sheet compared to $24.7 million in cash and cash equivalents and $3.6 million in debt obligations at December 31, 2012. On February 21, 2013, the Company borrowed an additional $7.3 million from its Bank of Montreal credit agreement to pay for the additional 33.3% investment in CPL, which closed on April 8, 2013. The credit agreement has a term of five years and is guaranteed by the Company. Once repaid, these amounts cannot be reborrowed. As of September 30, 2013, the Company had approximately $14.9 million available for borrowing under the credit agreement. In addition, the Company had $6.2 million in outstanding debt related to CPL as of September 30, 2013.

Conference Call Information

Today the Company will post a copy of the Form 10-Q filed with the SEC for the quarter ended September 30, 2013 on its website at http://corporate.cnty.com/investor-relations/sec-filings.

Century Casinos will host its third quarter 2013 earnings conference call today at 7:00 am MDT; 3:00 pm CET, respectively. U.S. domestic participants should dial 1-888-203-7667. For all other international participants, please use 719-234-0008 to dial-in. Participants may also listen to the call live or obtain a recording of the call on the Company's website until November 30, 2013 at http://corporate.cnty.com/investor-relations/sec-filings.

 

(continued)

CENTURY CASINOS, INC. AND SUBSIDIARIES

FINANCIAL INFORMATION – US GAAP BASIS (Unaudited)







For the Three Months Ended September 30,

For the Nine Months Ended September 30,

Amounts in thousands, except for per share information

2013

2012

2013

2012

Operating revenue:





  Gaming

$26,758

$16,778

$68,603

$47,746

  Hotel, bowling, food and beverage

3,141

3,189

9,554

9,645

  Other

923

1,041

2,802

3,086

           Gross revenue

30,822

21,008

80,959

60,477

Less: Promotional allowances

(1,996)

(2,285)

(5,795)

(6,395)

Net operating revenue

28,826

18,723

75,164

54,082

Operating costs and expenses:





  Gaming

13,959

7,954

34,401

22,645

  Hotel, bowling, food and beverage

2,691

2,534

7,787

7,391

  General and administrative

9,121

5,385

22,678

16,010

  Depreciation and amortization

1,685

1,178

4,671

3,535

Total operating costs and expenses

27,456

17,051

69,537

49,581

Earnings from equity investment

0

(57)

(128)

381

Earnings from operations

1,370

1,615

5,499

4,882

Non-operating income (expense):





Gain on business combination

0

0

2,074

0

  Interest income

7

7

18

36

  Interest expense

(206)

(57)

(550)

(600)

  Gains on foreign currency transactions and other

66

(36)

234

(19)

Non-operating income (expense), net

(133)

(86)

1,776

(583)

Earnings before income taxes and non-controlling interest

1,237

1,529

7,275

4,299

Income tax provision

132

343

685

832

Net earnings

1,105

1,186

6,590

3,467

Less: Net earnings attributable to non-controlling interest

32

0

198

0

Net earnings attributable to Century Casinos, Inc. shareholders

$1,073

$1,186

$6,392

$3,467






Earnings per share attributable to Century Casinos, Inc.:





  Basic

$0.04

$0.05

$0.26

$0.14

  Diluted

$0.04

$0.05

$0.26

$0.14

 

 

CENTURY CASINOS, INC. AND SUBSIDIARIES

FINANCIAL INFORMATION – US GAAP BASIS




Century Casinos, Inc.



Condensed Consolidated Balance Sheets



(Amounts in thousands)




September 30,

December 31,


2013

2012

Assets



Current assets

$33,333

$26,535

Property and equipment, net

113,726

99,526

Other assets

22,283

11,275

Total assets

$169,342

$137,336




Liabilities and Shareholders' Equity



Current liabilities

$27,205

$13,071

Non-current liabilities

13,591

6,109

Shareholders' equity

128,546

118,156

Total liabilities and shareholders' equity

$169,342

$137,336

 

 

CENTURY CASINOS, INC. AND SUBSIDIARIES

SUPPLEMENTAL INFORMATION


Century Casinos, Inc.

Adjusted EBITDA Margins * by Property or Category (Unaudited)








For the Three Months

For the Nine Months


Ended September 30,

Ended September 30,


2013

2012

2013

2012

Century Casino & Hotel, Edmonton

35%

32%

36%

32%

Century Casino, Calgary

2%

(9%)

9%

1%

Century Casino & Hotel, Central City

21%

24%

20%

22%

Century Casino & Hotel, Cripple Creek

23%

25%

25%

23%

Casinos Poland

7%

0%

9%

0%

Cruise Ships & Other

14%

17%

15%

15%

Consolidated Adjusted EBITDA Margin

12%

15%

14%

16%

 

 

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

For the three months ended September 30, 2013


Amounts in thousands











Three Months Ended September 30, 2013


Edmonton

Calgary

Central City

Cripple Creek

Casinos Poland

Cruise Ships & Other

Corporate

Total

Net earnings (loss)

$1,296

($177)

$385

$330

$62

$125

($948)

$1,073

Interest income

0

0

0

0

(1)

0

(6)

(7)

Interest expense

114

0

0

1

88

0

3

206

Income taxes (benefit)

464

(10)

237

203

(174)

17

(605)

132

Depreciation and amortization

258

228

315

242

512

101

29

1,685

Non-controlling interest

0

0

0

0

32

0

0

32

Non-cash stock based compensation

0

0

0

0

0

0

8

8

Foreign currency losses (gains)

5

0

0

0

(64)

0

(7)

(66)

(Gain) loss on disposition of fixed assets

0

0

0

0

279

4

0

283

Adjusted EBITDA*

$2,137

$41

$937

$776

$734

$247

($1,526)

$3,346

 

 

CENTURY CASINOS, INC. AND SUBSIDIARIES

SUPPLEMENTAL INFORMATION


Century Casinos, Inc.

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

For the three months ended September 30, 2012

Amounts in thousands










Three Months Ended September 30, 2012


Edmonton

Calgary

Central City

Cripple Creek

Cruise Ships & Other

Corporate

Total

Net earnings (loss)

$1,127

($399)

$550

$375

$198

($665)

$1,186

Interest income

(3)

(1)

0

0

0

(3)

(7)

Interest expense

57

0

0

0

0

0

57

Income taxes (benefit)

485

(50)

336

230

20

(678)

343

Depreciation and amortization

260

217

319

255

96

31

1,178

Non-cash stock based compensation

0

0

0

0

0

2

2

Foreign currency losses (gains)

30

19

0

0

(1)

(12)

36

(Gain) loss on disposition of fixed assets

2

1

(3)

0

0

0

0

Adjusted EBITDA*

$1,958

($213)

$1,202

$860

$313

($1,325)

$2,795

 

 

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

For the nine months ended September 30, 2013


Amounts in thousands











Nine Months Ended September 30, 2013


Edmonton

Calgary

Central City

Cripple Creek

Casinos Poland

Cruise Ships & Other

Corporate

Total

Net earnings (loss)

$4,312

($9)

$1,048

$1,005

$395

$433

($792)

$6,392

Interest income

0

0

0

0

(2)

0

(16)

(18)

Interest expense

325

0

0

2

226

(3)

0

550

Income taxes (benefit)

1,362

(75)

642

615

(186)

59

(1,732)

685

Depreciation and amortization

775

691

977

717

1,119

302

90

4,671

Non-controlling interest

0

0

0

0

198

0

0

198

Non-cash stock based compensation

0

0

0

0

0

0

11

11

Foreign currency (gains) losses

(17)

(4)

0

0

(138)

(1)

(74)

(234)

(Gain) loss on disposition of fixed assets

0

0

(5)

0

263

8

0

266

(Gain) on business combination

0

0

0

0

0

0

(2,074)

(2,074)

Adjusted EBITDA*

$6,757

$603

$2,662

$2,339

$1,875

$798

($4,587)

$10,447

 

 

CENTURY CASINOS, INC. AND SUBSIDIARIES

SUPPLEMENTAL INFORMATION


Century Casinos, Inc.

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

For the nine months ended September 30, 2012

Amounts in thousands










Nine Months Ended September 30, 2012


Edmonton

Calgary

Central City

Cripple Creek

Cruise Ships & Other

Corporate

Total

Net earnings (loss)

$3,281

($486)

$1,323

$844

$420

($1,915)

$3,467

Interest income

(12)

(1)

0

0

0

(23)

(36)

Interest expense

598

0

0

0

0

2

600

Income taxes (benefit)

1,178

(80)

812

517

44

(1,639)

832

Depreciation and amortization

746

631

1,021

760

291

86

3,535

Non-cash stock based compensation

0

0

0

0

0

0

0

Foreign currency losses (gains)

24

4

0

0

2

(11)

19

(Gain) loss on disposition of fixed assets

2

1

4

0

16

0

23

Adjusted EBITDA*

$5,817

$69

$3,160

$2,121

$773

($3,500)

$8,440

*  The Company defines Adjusted EBITDA as net earnings (loss) before interest, income taxes (benefit), 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, gain on business combination 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 of America ("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 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 net 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.

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 66.6% 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 future results of operations (including results for Casinos Poland, Ltd.), operating efficiencies, synergies and operational performance, economic improvements in 2013, debt repayment 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 30, 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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