Century Casinos, Inc. Announces Second Quarter 2011 Results
COLORADO SPRINGS, Colorado, August 12, 2011 /PRNewswire/ --
Century Casinos, Inc. (NASDAQ Capital Market® and Vienna Stock Exchange: CNTY) today announced its financial results for the three and six months ended June 30, 2011.
Second Quarter 2011 Highlights
- Net operating revenue was $18.0 million, a 21% increase compared to the three months ended June 30, 2010.
- Adjusted EBITDA* was $2.8 million, a 38% increase from the three months ended June 30, 2010.
- Net earnings per share was $0.03 compared to a net loss of $0.01 for the three months ended June 30, 2010.
Amounts in
thousands, except
share and per For the Three Months
share --------------------
data Ended June 30, 2011
---- -------------------
Consolidated %
Results: 2011 2010 Change
------------ ---- ---- ------
Net operating
revenue $18,002 $14,940 21%
------------- ------- ------- ---
Earnings from
operations 977 344 184%
------------- --- --- ---
Net earnings (loss) 644 (259) 349%
------------------- --- ---- ---
Adjusted EBITDA* $2,760 $2,005 38%
---------------- ------ ------ ---
Earnings per share:
-------------------
Basic $0.03 ($0.01) 400%
----- ----- ------ ---
Diluted $0.03 ($0.01) 400%
------- ----- ------ ---
Weighted-average
common shares:
----------------
Basic 23,717,165 23,815,936
----- ---------- ----------
Dilutive 24,026,095 23,815,936
-------- ---------- ----------
Amounts in
thousands, except
share and per For the Six Months
share -------------------
data Ended June 30, 2011
---- -------------------
Consolidated %
Results: 2011 2010 Change
------------ ---- ---- ------
Net operating
revenue $35,117 $29,077 21%
------------- ------- ------- ---
Earnings from
operations 1,733 694 150%
------------- ----- --- ---
Net earnings (loss) 1,008 (129) 881%
------------------- ----- ---- ---
Adjusted EBITDA* $5,284 $3,989 33%
---------------- ------ ------ ---
Earnings per share:
-------------------
Basic $0.04 ($0.01) 500%
----- ----- ------ ---
Diluted $0.04 ($0.01) 500%
------- ----- ------ ---
Weighted-average
common shares:
----------------
Basic 23,714,215 23,815,936
----- ---------- ----------
Dilutive 24,015,947 23,815,936
-------- ---------- ----------
"We are very pleased with our performance for the second quarter, especially when considering that each of our operations posted increases in revenue as well as Adjusted EBITDA and overall earnings from operations almost tripled," said Erwin Haitzmann and Peter Hoetzinger, Co-Chief Executive Officers of Century Casinos. "Initial results for the first half of the third quarter indicate further improvement," they continued.
Second Quarter and Six Month 2011 Results
Net operating revenue increased by $3.1 million or 21% and $6.0 million or 21% for the three and six months ended June 30, 2011 compared to the three and six months ended June 30, 2010, respectively, due to increased revenue from all properties. The increase in net operating revenue at our Canadian properties is due in part to higher customer volumes and an increase in the average exchange rate between the U.S. dollar and Canadian dollar of 5.8% and 5.6% for the three and six months ended June 30, 2011 compared to the three and six months ended June 30, 2010, respectively.
The increase in net operating revenue at our Central City property is due in part to increased table games revenue generated from craps and player banked poker, increased customer volumes, increased revenue from slot machines that were moved from the lower level to the main level and increased video poker play. The increase in net operating revenue at our Cripple Creek property is due in part to increased slot revenue from new slot machines, additional table games revenue generated after moving the table games pit from the back of the casino to the front, improved customer service and new marketing strategies aimed at improving the gaming floor atmosphere and differentiating our casino from competitors.
The increase in net operating revenue from our ship-based casinos and other is primarily due to additional ship-based casinos placed into operation during the three and six months ended June 30, 2011 as compared to the three and six months ended June 30, 2010.
Total operating costs and expenses increased by $2.7 million or 18% and $5.1 million or 18% for the three and six months ended June 30, 2011 compared to the three and six months ended June 30, 2010, respectively, due to increased operating costs at all of our properties. Total operating costs and expenses at our property in Edmonton increased primarily due to the increase in the average exchange rate between the U.S. dollar and Canadian dollar of 5.8% and 5.6% for the three and six months ended June 30, 2011 compared to the three and six months ended June 30, 2010, respectively.
Total operating costs and expenses at our property in Calgary increased due to the addition of a player's club point redemption program and additional staffing costs incurred in order to provide improved customer service for the three and six months ended June 30, 2011 compared to the three and six months ended June 30, 2010. The increase is also attributable to an increase in the average exchange rate between the U.S. dollar and Canadian dollar of 5.8% and 5.6% for the three and six months ended June 30, 2011 compared to the three and six months ended June 30, 2010, respectively.
Total operating costs and expenses at our Colorado properties increased due to increased marketing costs from more aggressive marketing campaigns, increased gaming taxes as a result of higher gaming revenue and increased staffing costs in order to provide improved customer service for the three and six months ended June 30, 2011 compared to the three and six months ended June 30, 2010.
Total operating costs and expenses from our ship-based casinos increased for the three and six months ended June 30, 2011 compared to the three and six months ended June 30, 2010 as a result of increased concession and annual fees paid to cruise ship operators for the ability to operate ship-based casinos.
Net earnings increased by $0.9 million and $1.1 million for the three and six months ended June 30, 2011 compared to the three and six months ended June 30, 2010, respectively. The increase is due to increased earnings from operations at our Edmonton, Central City and Cripple Creek properties offset by losses from operations at our Calgary property. In addition, the increase in the average exchange rate between the U.S. dollar and Canadian dollar of 5.8% and 5.6% for the three and six months ended June 30, 2011 compared to the three and six months ended June 30, 2010, respectively, contributed to the increase in net earnings.
Property Results
(in thousands)
--------------
Net Operating Adjusted
Revenue EBITDA*
------- --------
For the Three For the Three
Months Months
Ended June Ended June
30, 30,
----------- -----------
2011 2010 2011 2010
---- ---- ---- ----
Century Casino
& Hotel,
Edmonton 6,185 5,497 2,163 1,766
Century Casino,
Calgary 2,467 2,098 120 (26)
Century Casino
& Hotel, Central
City 4,520 4,210 951 947
Century Casino
& Hotel, Cripple
Creek 3,211 2,617 685 490
Cruise Ships
and Other 1,619 518 314 79
Corporate - - (1,473) (1,251)
Consolidated 18,002 14,940 2,760 2,005
====== ====== ===== =====
Net Operating Adjusted
Revenue EBITDA*
------- --------
For the Six For the Six
Months Months
Ended June Ended June
30, 30,
----------- -----------
2011 2010 2011 2010
---- ---- ---- ----
Century Casino
& Hotel,
Edmonton 11,938 10,857 4,003 3,415
Century Casino,
Calgary 5,056 3,840 219 153
Century Casino
& Hotel, Central
City 8,920 8,382 1,909 1,868
Century Casino
& Hotel, Cripple
Creek 6,049 4,882 1,216 682
Cruise Ships
and Other 3,154 1,116 546 236
Corporate - - (2,609) (2,365)
Consolidated 35,117 29,077 5,284 3,989
====== ====== ===== =====
Balance Sheet and Liquidity
As of June 30, 2011, the Company had $19.8 million in cash and cash equivalents and $10.8 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 second quarter of 2011 on its website at http://corporate.cnty.com/investor-relations/sec-filings/.
Century Casinos will host its second 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/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 For the six months
ended June 30, ended June 30,
Amounts in thousands, except
for share and per
share information 2011 2010 2011 2010
---- ---- ---- ----
Operating revenue:
Gaming $15,928 $13,239 $30,753 $25,821
Hotel, bowling, food and
beverage 3,141 2,756 6,384 5,521
Other 1,004 770 1,939 1,349
----- --- ----- -----
Gross revenue 20,073 16,765 39,076 32,691
Less: Promotional allowances (2,071) (1,825) (3,959) (3,614)
Net operating revenue 18,002 14,940 35,117 29,077
------ ------ ------ ------
Operating costs and
expenses:
Gaming 7,341 5,854 14,272 11,287
Hotel, bowling, food and
beverage 2,553 2,228 5,064 4,338
General and administrative 5,848 5,150 11,216 10,093
Depreciation 1,665 1,524 3,306 3,013
----- ----- ----- -----
Total operating costs and
expenses 17,407 14,756 33,858 28,731
------ ------ ------ ------
Earnings from equity
investment 382 160 474 348
Earnings from operations 977 344 1,733 694
--- --- ----- ---
Non-operating income
(expense):
Interest income 5 14 7 22
Interest expense (197) (281) (443) (572)
Gains (losses) on foreign
currency 114 (244) 189 (1)
transactions and other
Non-operating income
(expense), net (78) (511) (247) (551)
--- ---- ---- ----
Earnings (loss) before
income taxes 899 (167) 1,486 143
Income tax provision 255 92 478 272
Net earnings (loss) $644 ($259) $1,008 ($129)
==== ===== ====== =====
Earnings per share:
Basic $0.03 ($0.01) $0.04 ($0.01)
----- ------ ----- ------
Diluted $0.03 ($0.01) $0.04 ($0.01)
===== ====== ===== ======
CENTURY CASINOS, INC. AND SUBSIDIARIES
FINANCIAL INFORMATION - US GAAP BASIS
-------------------------------------
Century Casinos, Inc.
Condensed Consolidated Balance Sheets
(Amounts in thousands)
December
June 30, 31,
2011 2010
---- ----
Assets
Current assets $21,981 $23,467
Property and equipment, net 103,669 103,956
Other assets 9,908 9,303
Total assets $135,558 $136,726
======== ========
Liabilities and Shareholders' Equity
Current liabilities $10,803 $14,057
Non-current liabilities 10,668 11,171
Shareholders' equity 114,087 111,498
Total liabilities and shareholders' equity $135,558 $136,726
======== ========
CENTURY CASINOS, INC. AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION
------------------------
Century Casinos, Inc.
Adjusted EBITDA Margins ** by Property (Unaudited)
For the Three For the Six
Months Months
Ended June 30, Ended June 30,
-------------- --------------
2011 2010 2011 2010
---- ---- ---- ----
Century Casino & Hotel,
Edmonton 35% 32% 34% 31%
Century Casino, Calgary 5% (1%) 4% 4%
Century Casino & Hotel,
Central City 21% 22% 21% 22%
Century Casino & Hotel,
Cripple Creek 21% 19% 20% 14%
Cruise Ships and Other 19% 15% 17% 21%
Consolidated Adjusted
EBITDA Margin 15% 13% 15% 14%
Century Casinos, Inc.
Reconciliation of Adjusted EBITDA * to Earnings (Loss) by Property
(Unaudited)
For the Three and Six Months Ended June 30, 2011 and 2010
Amounts In thousands
Three Months Ended June 30, 2011
--------------------------------
Central Cripple
Edmonton Calgary City Creek
-------- ------- ---- -----
Earnings (loss) 1,182 (73) 177 268
Interest income (5) - - -
Interest expense 197 1 - -
Income taxes 414 (2) 96 164
Depreciation 377 194 664 258
Non-cash stock based
compensation - - - -
Foreign currency
(gains) (2) - - -
Loss (gain) on
disposition of fixed - - 14 (5)
assets
Adjusted EBITDA* 2,163 120 951 685
===== === === ===
Three Months Ended June 30, 2011
--------------------------------
Cruise
Ships &
Other Corporate Total
----- --------- -----
Earnings (loss) 160 (1,070) 644
Interest income - - (5)
Interest expense - (1) 197
Income taxes 3 (420) 255
Depreciation 108 64 1,665
Non-cash stock based
compensation - 96 96
Foreign currency
(gains) - (112) (114)
Loss (gain) on
disposition of fixed 43 (30) 22
assets
Adjusted EBITDA* 314 (1,473) 2,760
=== ====== =====
CENTURY CASINOS, INC. AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION
------------------------
Century Casinos, Inc.
Reconciliation of Adjusted EBITDA * to Earnings (Loss) by Property
(Unaudited)
For the Three and Six Months Ended June 30, 2011 and 2010
Three Months Ended June 30, 2010
--------------------------------
Central Cripple
Edmonton Calgary City Creek
-------- ------- ---- -----
Earnings (loss) 855 (62) 176 121
Interest income (10) (1) - -
Interest expense 288 - - -
Income taxes 280 (26) 97 74
Depreciation 353 67 674 294
Non-cash stock based
compensation - - - -
Foreign currency
(gains) losses (3) (4) - -
Loss on disposition of
fixed assets 3 - - 1
Adjusted EBITDA* 1,766 (26) 947 490
===== === === ===
Three Months Ended June 30, 2010
--------------------------------
Cruise
Ships &
Other Corporate Total
----- --------- -----
Earnings (loss) (3) (1,346) (259)
Interest income - (3) (14)
Interest expense - (7) 281
Income taxes - (333) 92
Depreciation 82 54 1,524
Non-cash stock based
compensation - 145 145
Foreign currency
(gains) losses - 238 231
Loss on disposition of
fixed assets - 1 5
Adjusted EBITDA* 79 (1,251) 2,005
=== ====== =====
Six Months Ended June 30, 2011
------------------------------
Central Cripple
Edmonton Calgary City Creek
-------- ------- ---- -----
Earnings (loss) 2,080 (236) 372 437
Interest income (7) - - -
Interest expense 440 1 - -
Income taxes 756 32 203 268
Depreciation 741 383 1,319 516
Non-cash stock based
compensation - - - -
Foreign currency
(gains) losses (7) 39 - -
Loss (gain) on
disposition of fixed - - 15 (5)
assets
Adjusted EBITDA* 4,003 219 1,909 1,216
===== === ===== =====
Six Months Ended June 30, 2011
------------------------------
Cruise
Ships &
Other Corporate Total
----- --------- -----
Earnings (loss) 279 (1,924) 1,008
Interest income - - (7)
Interest expense - 2 443
Income taxes 5 (786) 478
Depreciation 219 128 3,306
Non-cash stock based
compensation - 192 192
Foreign currency
(gains) losses - (221) (189)
Loss (gain) on
disposition of fixed 43 - 53
assets
Adjusted EBITDA* 546 (2,609) 5,284
=== ====== =====
CENTURY CASINOS, INC. AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION
------------------------
Century Casinos, Inc.
Reconciliation of Adjusted EBITDA * to Earnings (Loss) by Property
(Unaudited)
For the Three and Six Months Ended June 30, 2011 and 2010
Six Months Ended June 30, 2010
------------------------------
Central Cripple
Edmonton Calgary City Creek
-------- ------- ---- -----
Earnings (loss) 1,574 32 338 61
Interest income (18) (1) - -
Interest expense 577 - - -
Income taxes 561 13 183 37
Depreciation 696 108 1,346 583
Non-cash stock based
compensation - - - -
Foreign currency losses 22 1 - -
Impairments and other
write-offs - - - -
Loss on disposition of
fixed assets 3 - 1 1
Adjusted EBITDA* 3,415 153 1,868 682
===== === ===== ===
Six Months Ended June 30, 2010
------------------------------
Cruise
Ships &
Other Corporate Total
----- --------- -----
Earnings (loss) 64 (2,198) (129)
Interest income - (3) (22)
Interest expense - (5) 572
Income taxes 2 (524) 272
Depreciation 170 110 3,013
Non-cash stock based
compensation - 288 288
Foreign currency losses - 73 96
Impairments and other
write-offs - (108) (108)
Loss on disposition of
fixed assets - 2 7
Adjusted EBITDA* 236 (2,365) 3,989
=== ====== =====
* 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. 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) from continuing operations 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 full 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 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 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, future results of operations for the third quarter of 2011 and other periods, 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 sections 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.
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