Century Casinos, Inc. Announces Fourth Quarter 2011 Results
COLORADO SPRINGS, Colorado, 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.
Amounts in thousands,
except share and per For the Three Months For the Year
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 For the Year
Ended December 31, 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 For the Year
Ended December 31, 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 For the Year
Ended December 31, 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*
For the Three For the Three
Months Months
Ended December 31, Ended December 31,
2011 2010 2011 2010
Century Casino & Hotel, Edmonton $6,116 $5,696 $1,963 $1,775
Century Casino, Calgary 2,703 2,286 302 (255)
Century Casino & Hotel, Central City 4,306 4,138 858 883
Century Casino & Hotel, Cripple Creek 2,682 2,458 277 249
Cruise Ships & Aruba 1,796 1,001 261 61
Corporate Other 0 52 (1,332) (1,346)
Consolidated $17,603 $15,631 $2,329 $1,367
Property and Category Results
(in thousands)
Net Operating Revenue Adjusted EBITDA*
For the Year For the Year
Ended December 31, Ended December 31,
2011 2010 2011 2010
Century Casino & Hotel, Edmonton $23,906 $21,844 $7,899 $6,881
Century Casino, Calgary 10,206 8,090 620 (193)
Century Casino & Hotel, Central City 17,980 17,368 3,779 4,024
Century Casino & Hotel, Cripple Creek 12,236 10,351 2,296 1,571
Cruise Ships & Aruba 6,538 2,988 1,027 412
Corporate Other 0 51 (4,929) (4,786)
Consolidated $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 For the Year Ended
Ended December 31, 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
Cruise
Central Cripple Ships &
Edmonton Calgary City Creek 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
Cruise
Central Cripple Ships &
Edmonton Calgary City Creek 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
Cruise
Central Cripple Ships &
Edmonton Calgary City Creek 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
Cruise
Central Cripple Ships &
Edmonton Calgary City Creek 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 http://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.
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