Gambling in the USA
Century Casinos, Inc. Announces Fourth Quarter and Full Year 2019 Results
Century Casinos, Inc. announced its financial results for the three months and year ended December 31, 2019.
Fourth Quarter 2019 Highlights*
- Net operating revenue was $67.2 million, an increase of 49% from the three months ended December 31, 2018.
- Loss from operations was ($14.7) million, a decrease of 846% from the three months ended December 31, 2018.
- Net loss attributable to Century Casinos, Inc. shareholders was ($20.1) million, a decrease of 4080% from the three months ended December 31, 2018.
- Adjusted EBITDA** was $9.8 million, an increase of 69% from the three months ended December 31, 2018.
- Loss per share was ($0.68).
2019 Highlights*
- Net operating revenue was $218.2 million, an increase of 29% from the year ended December 31, 2018.
- Loss from operations was ($5.2) million, a decrease of 155% from the year ended December 31, 2018.
- Net loss attributable to Century Casinos, Inc. shareholders was ($19.2) million, a decrease of 664% from the year ended December 31, 2018.
- Adjusted EBITDA** was $30.3 million, an increase of 30% from the year ended December 31, 2018.
- Basic loss per share was ($0.65), a decrease of 642% from the year ended December 31, 2018.
- Diluted loss per share was ($0.65), a decrease of 691% from the year ended December 31, 2018.
- Book value per share*** at December 31, 2019 was $5.54.
In December 2019, the Company determined that the intangible and tangible assets at Century Casino Bath were impaired. The impairment, which totaled $16.5 million, was determined after evaluating losses incurred by the casino since operations began and future forecasts of continued losses due to the current regulatory environment for casinos in England.
On December 6, 2019, the Company completed its acquisition (the “Acquisition”) of the operations of Isle Casino Cape Girardeau, located in Cape Girardeau, Missouri, Lady Luck Caruthersville, located in Caruthersville, Missouri, and Mountaineer Casino, Racetrack and Resort located in New Cumberland, West Virginia (collectively, the “Acquired Casinos”), from Eldorado Resorts, Inc. for an aggregate purchase price of approximately $110.6 million. Immediately prior to the Acquisition, the real estate assets underlying the Acquired Casinos were sold to an affiliate of VICI Properties Inc. (“VICI PropCo”). On the closing date, the Company and VICI PropCo entered into a triple net lease agreement (the “Master Lease”) for the three Acquired Casino properties. The Master Lease has an initial annual rent of approximately $25.0 million and an initial term of 15 years, with four five-year renewal options.
The consolidated results for the three months and year ended December 31, 2019 and 2018 are as follows:
|
For the three months |
For the year |
|||||||||||||||
|
Amounts in thousands, except per share data |
ended December 31, |
ended December 31, |
||||||||||||||
|
Consolidated Results: |
2019 |
2018 |
% Change |
2019 |
2018 |
% Change |
||||||||||
|
Net Operating Revenue |
$ |
67,236 |
$ |
45,106 |
49% |
$ |
218,227 |
$ |
168,938 |
29% |
||||||
|
(Loss) Earnings from Operations |
(14,745) |
1,976 |
(846%) |
(5,220) |
9,459 |
(155%) |
||||||||||
|
Net (Loss) Earnings Attributable to Century Casinos, Inc. Shareholders |
$ |
(20,140) |
$ |
506 |
(4080%) |
$ |
(19,155) |
$ |
3,394 |
(664%) |
||||||
|
Adjusted EBITDA** |
$ |
9,776 |
$ |
5,801 |
69% |
$ |
30,281 |
$ |
23,377 |
30% |
||||||
|
(Loss) Earnings Per Share Attributable to Century Casinos, Inc. Shareholders: |
||||||||||||||||
|
Basic |
$ |
(0.68) |
$ |
0.02 |
(3500%) |
$ |
(0.65) |
$ |
0.12 |
(642%) |
||||||
|
Diluted |
$ |
(0.68) |
$ |
0.02 |
(3500%) |
$ |
(0.65) |
$ |
0.11 |
(691%) |
||||||
“We are pleased with the fourth quarter results and the immediate impact the addition of the three casinos acquired from Eldorado Resorts had on our operating results,” Erwin Haitzmann and Peter Hoetzinger, Co-Chief Executive Officers of Century Casinos remarked. “The acquired casinos have had very encouraging initial results, and we are excited to continue integrating the operations into the Century brand and to see anticipated meaningful growth from this acquisition on Century Casinos in the future,” Messrs. Haitzmann and Hoetzinger concluded.
The Company is carefully monitoring the situation caused by the coronavirus (COVID-19) pandemic. Although the entire situation is unpredictable, our management teams are prepared to control what they can control. Our casinos are following and implementing the recommendations from the US Centers for Disease Control and Prevention, which include everyday preventative actions to help prevent the spread of respiratory viruses, such as washing your hands often with soap and water, avoiding touching your eyes, nose, and mouth with unwashed hands, covering your cough or sneeze with a tissue, cleaning and disinfecting frequently touched objects and surfaces and of course staying home when you are sick. We are also putting an extra effort into straight-forward and realistic guest messaging and have stepped-up employee trainings to ensure strict compliance with our policies and procedures. We are in constant communication with our employees to reinforce our sanitation safety procedures in both guest-facing and back-of-house areas. We are sanitizing high-traffic public areas at an increased frequency. Proper procedures are posted in all back-of-house work areas.
To date, COVID-19 has not had a significant impact on our US or Canadian markets, while the market in Poland has been weakening by approximately ten percent. Our customer base is very diversified within North America. Our casinos are ‘local’ casinos in urban and suburban locations, with the vast majority of our business from customers who live within an hour from our facilities. Our casinos have negligible meeting and convention business and few of our customers travel by air to visit us. This may temper the impact of COVID-19 on our business, but this situation continues to evolve and could adversely impact us until the virus runs its course.
Reportable Segment Results*
The table below shows the Company’s operating segments that are included in each of the Company’s reportable segments as of December 31, 2019:
|
Reportable Segment |
Operating Segment |
Reporting Unit |
|
United States |
Colorado |
Century Casino & Hotel – Central City |
|
Century Casino & Hotel – Cripple Creek |
||
|
West Virginia |
Mountaineer Casino, Racetrack & Resort |
|
|
Missouri |
Century Casino Cape Girardeau |
|
|
Century Casino Caruthersville |
||
|
Canada |
Edmonton |
Century Casino & Hotel – Edmonton |
|
Century Casino St. Albert |
||
|
Century Mile Racetrack and Casino |
||
|
Calgary |
Century Casino Calgary |
|
|
Century Downs Racetrack and Casino |
||
|
Century Bets! Inc. |
||
|
Poland |
Poland |
Casinos Poland |
|
Corporate and Other |
Corporate and Other |
Cruise Ships & Other |
|
Century Casino Bath |
||
|
Corporate Other |
The Company’s net operating revenue increased by $22.1 million, or 49%, and by $49.3 million, or 29%, for the three months and year ended December 31, 2019, compared to the three months and year ended December 31, 2018. Following is a summary of the changes in net operating revenue by reportable segment for the three months and year ended December 31, 2019, compared to the three months and year ended December 31, 2018:
|
Net Operating Revenue |
||||||||||||||||||||||
|
For the three months |
For the year |
|||||||||||||||||||||
|
ended December 31, |
ended December 31, |
|||||||||||||||||||||
|
Amounts in thousands |
2019 |
2018 |
$ Change |
% Change |
2019 |
2018 |
$ Change |
% Change |
||||||||||||||
|
United States |
$ |
23,926 |
$ |
7,938 |
$ |
15,988 |
201% |
$ |
49,998 |
$ |
33,483 |
$ |
16,515 |
49% |
||||||||
|
Canada |
20,291 |
15,678 |
4,613 |
29% |
80,650 |
61,361 |
19,289 |
31% |
||||||||||||||
|
Poland |
21,675 |
19,514 |
2,161 |
11% |
81,894 |
68,209 |
13,685 |
20% |
||||||||||||||
|
Corporate and Other |
1,344 |
1,976 |
(632) |
(32%) |
5,685 |
5,885 |
(200) |
(3%) |
||||||||||||||
|
Consolidated |
$ |
67,236 |
$ |
45,106 |
$ |
22,130 |
49% |
$ |
218,227 |
$ |
168,938 |
$ |
49,289 |
29% |
||||||||
The Company’s earnings from operations decreased by ($16.7) million, or (846%), and by ($14.7) million, or (155%), for the three months and year ended December 31, 2019, compared to the three months and year ended December 31, 2018. Following is a summary of the changes in earnings (loss) from operations by reportable segment for the three months and year ended December 31, 2019, compared to the three months and year ended December 31, 2018:
|
Earnings (Loss) from Operations |
||||||||||||||||||||||
|
For the three months |
For the year |
|||||||||||||||||||||
|
ended December 31, |
ended December 31, |
|||||||||||||||||||||
|
Amounts in thousands |
2019 |
2018 |
$ Change |
% Change |
2019 |
2018 |
$ Change |
% Change |
||||||||||||||
|
United States |
$ |
4,685 |
$ |
1,033 |
$ |
3,652 |
354% |
$ |
9,478 |
$ |
5,882 |
$ |
3,596 |
61% |
||||||||
|
Canada |
4,000 |
3,675 |
325 |
9% |
16,115 |
14,633 |
1,482 |
10% |
||||||||||||||
|
Poland |
1,627 |
460 |
1,167 |
254% |
5,915 |
145 |
5,770 |
3979% |
||||||||||||||
|
Corporate and Other |
(25,057) |
(3,192) |
(21,865) |
(685%) |
(36,728) |
(11,201) |
(25,527) |
(228%) |
||||||||||||||
|
Consolidated |
$ |
(14,745) |
$ |
1,976 |
$ |
(16,721) |
(846%) |
$ |
(5,220) |
$ |
9,459 |
$ |
(14,679) |
(155%) |
||||||||
Net earnings attributable to Century Casinos, Inc. shareholders decreased by ($20.6) million, or (4080%), and by ($22.5) million, or (664%), for the three months and year ended December 31, 2019, compared to the three months and year ended December 31, 2018. Following is a summary of the changes in net earnings (loss) attributable to Century Casinos, Inc. shareholders by reportable segment for the three months and year ended December 31, 2019, compared to the three months and year ended December 31, 2018:
|
Net Earnings (Loss) Attributable to Century Casinos, Inc. Shareholders |
||||||||||||||||||||||
|
For the three months |
For the year |
|||||||||||||||||||||
|
ended December 31, |
ended December 31, |
|||||||||||||||||||||
|
Amounts in thousands |
2019 |
2018 |
$ Change |
% Change |
2019 |
2018 |
$ Change |
% Change |
||||||||||||||
|
United States |
$ |
2,261 |
$ |
767 |
$ |
1,494 |
195% |
$ |
5,825 |
$ |
4,373 |
$ |
1,452 |
33% |
||||||||
|
Canada |
948 |
2,077 |
(1,129) |
(54%) |
6,669 |
7,715 |
(1,046) |
(14%) |
||||||||||||||
|
Poland |
1,352 |
179 |
1,173 |
655% |
3,466 |
(153) |
3,619 |
2365% |
||||||||||||||
|
Corporate and Other |
(24,701) |
(2,517) |
(22,184) |
(881%) |
(35,115) |
(8,541) |
(26,574) |
(311%) |
||||||||||||||
|
Consolidated |
$ |
(20,140) |
$ |
506 |
$ |
(20,646) |
(4080%) |
$ |
(19,155) |
$ |
3,394 |
$ |
(22,549) |
(664%) |
||||||||
Items deducted from or added to earnings from operations to arrive at net earnings (loss) attributable to Century Casinos, Inc. shareholders include interest income, interest expense, gains (losses) on foreign currency transactions and other, income tax expense and non-controlling interests.
The Company’s Adjusted EBITDA** increased by $4.0 million, or 69%, and by $6.9 million, or 30%, for the three months and year ended December 31, 2019 compared to the three months and year ended December 31, 2018. Following is a summary of the changes in Adjusted EBITDA** by reportable segment for the three months and year ended December 31, 2019 compared to the three months and year ended December 31, 2018:
|
Adjusted EBITDA** |
||||||||||||||||||||||
|
For the three months |
For the year |
|||||||||||||||||||||
|
ended December 31, |
ended December 31, |
|||||||||||||||||||||
|
Amounts in thousands |
2019 |
2018 |
$ Change |
% Change |
2019 |
2018 |
$ Change |
% Change |
||||||||||||||
|
United States |
$ |
5,441 |
$ |
1,582 |
$ |
3,859 |
244% |
$ |
11,825 |
$ |
8,061 |
$ |
3,764 |
47% |
||||||||
|
Canada |
5,378 |
4,991 |
387 |
8% |
21,212 |
19,522 |
1,690 |
9% |
||||||||||||||
|
Poland |
2,484 |
1,733 |
751 |
43% |
9,392 |
4,890 |
4,502 |
92% |
||||||||||||||
|
Corporate and Other |
(3,527) |
(2,505) |
(1,022) |
(41%) |
(12,148) |
(9,096) |
(3,052) |
(34%) |
||||||||||||||
|
Consolidated |
$ |
9,776 |
$ |
5,801 |
$ |
3,975 |
69% |
$ |
30,281 |
$ |
23,377 |
$ |
6,904 |
30% |
||||||||
Balance Sheet and Liquidity
As of December 31, 2019, the Company had $54.8 million in cash and cash equivalents and $179.0 million in outstanding debt on its balance sheet compared to $45.6 million in cash and cash equivalents and $59.5 million in outstanding debt at December 31, 2018. The outstanding debt as of December 31, 2019 included the following: $170.0 million related to the Company’s credit agreement with a group of lenders led by Macquarie Capital that the Company entered into in December 2019 in connection with the Acquisition, replacing the Company’s credit agreement with the Bank of Montreal; $2.0 million of bank debt related to Casinos Poland; $2.0 million of bank debt related to Century Casino Bath; and $15.0 million related to a long-term land lease for CDR, net of $10.0 million in deferred financing costs.
Conference Call Information
Today the Company will post a copy of its Annual Report on Form 10-K filed with the SEC for the year ended December 31, 2019 on its website at www.cnty.com/investor/financials/sec-filings. The Company will also post a presentation on the year end results on its website at www.cnty.com/investor/presentations.
The Company will host its fourth quarter 2019 earnings conference call today, Friday, March 13th, at 8:00 am MDT. U.S. domestic participants should dial 1-844-244-9160. For all international participants, please use 330-931-4670 to dial-in. Participants may listen to the call live at www.centurycasinos.adobeconnect.com/earningsrelease or obtain a recording of the call on the Company’s website until March 31, 2020 at www.cnty.com/investor/financials/sec-filings.
|
CENTURY CASINOS, INC. AND SUBSIDIARIES |
||||||||||||
|
Condensed Consolidated Statements of (Loss) Earnings |
||||||||||||
|
For the three months |
For the year |
|||||||||||
|
ended December 31, |
ended December 31, |
|||||||||||
|
Amounts in thousands, except for per share information |
2019 |
2018 |
2019 |
2018 |
||||||||
|
Operating revenue: |
||||||||||||
|
Net operating revenue |
$ |
67,236 |
$ |
45,106 |
$ |
218,227 |
$ |
168,938 |
||||
|
Operating costs and expenses: |
||||||||||||
|
Total operating costs and expenses |
81,981 |
43,152 |
223,446 |
159,502 |
||||||||
|
Earnings (loss) from equity investment |
— |
22 |
(1) |
23 |
||||||||
|
(Loss) earnings from operations |
(14,745) |
1,976 |
(5,220) |
9,459 |
||||||||
|
Non-operating income (expense), net |
(3,569) |
(1,053) |
(6,747) |
(3,536) |
||||||||
|
(Loss) earnings before income taxes |
(18,314) |
923 |
(11,967) |
5,923 |
||||||||
|
Income tax provision |
(955) |
(133) |
(4,174) |
(1,917) |
||||||||
|
Net (loss) earnings |
(19,269) |
790 |
(16,141) |
4,006 |
||||||||
|
Net earnings attributable to non-controlling interests |
(871) |
(284) |
(3,014) |
(612) |
||||||||
|
Net (loss) earnings attributable to Century Casinos, Inc. shareholders |
$ |
(20,140) |
$ |
506 |
$ |
(19,155) |
$ |
3,394 |
||||
|
(Loss) earnings per share attributable to Century Casinos, Inc. shareholders: |
||||||||||||
|
Basic |
$ |
(0.68) |
$ |
0.02 |
$ |
(0.65) |
$ |
0.10 |
||||
|
Diluted |
$ |
(0.68) |
$ |
0.02 |
$ |
(0.65) |
$ |
0.10 |
||||
|
Weighted average common shares |
||||||||||||
|
Basic |
29,474 |
29,439 |
29,452 |
29,401 |
||||||||
|
Diluted |
29,474 |
29,861 |
29,452 |
29,962 |
||||||||
|
CENTURY CASINOS, INC. AND SUBSIDIARIES |
||||||
|
Condensed Consolidated Balance Sheets |
||||||
|
December 31, |
December 31, |
|||||
|
Amounts in thousands |
2019 |
2018 |
||||
|
Assets |
||||||
|
Current assets |
$ |
79,366 |
$ |
54,974 |
||
|
Property and equipment, net |
503,933 |
187,017 |
||||
|
Other assets |
143,601 |
36,834 |
||||
|
Total assets |
$ |
726,900 |
$ |
278,825 |
||
|
Liabilities and Equity |
||||||
|
Current liabilities |
$ |
56,570 |
$ |
50,020 |
||
|
Non-current liabilities |
498,255 |
45,422 |
||||
|
Century Casinos, Inc. shareholders’ equity |
163,306 |
176,321 |
||||
|
Non-controlling interests |
8,769 |
7,062 |
||||
|
Total liabilities and equity |
$ |
726,900 |
$ |
278,825 |
||
|
CENTURY CASINOS, INC. AND SUBSIDIARIES |
||||||||||||||||
|
Constant Currency* Results (unaudited) |
||||||||||||||||
|
For the three months |
For the year |
|||||||||||||||
|
ended December 31, |
ended December 31, |
|||||||||||||||
|
Amounts in thousands |
2019 |
2018 |
% Change |
2019 |
2018 |
% Change |
||||||||||
|
Net operating revenue as reported (GAAP) |
$ |
67,236 |
$ |
45,106 |
49% |
$ |
218,227 |
$ |
168,938 |
29% |
||||||
|
Foreign currency impact vs. 2018 |
559 |
7,207 |
||||||||||||||
|
Net operating revenue constant currency (non-GAAP)* |
$ |
67,795 |
$ |
45,106 |
50% |
$ |
225,434 |
$ |
168,938 |
33% |
||||||
|
(Loss) earnings from operations (GAAP) |
$ |
(14,745) |
$ |
1,976 |
(846%) |
$ |
(5,220) |
$ |
9,459 |
(155%) |
||||||
|
Foreign currency impact vs. 2018 |
934 |
955 |
||||||||||||||
|
(Loss) earnings from operations constant currency (non-GAAP)* |
$ |
(13,811) |
$ |
1,976 |
(799%) |
$ |
(4,265) |
$ |
9,459 |
(145%) |
||||||
|
Net (loss) earnings attributable to Century Casinos, Inc. shareholders as reported (GAAP) |
$ |
(20,140) |
$ |
506 |
(4080%) |
$ |
(19,155) |
$ |
3,394 |
(664%) |
||||||
|
Foreign currency impact vs. 2018 |
339 |
(40) |
||||||||||||||
|
Net (loss) earnings attributable to Century Casinos, Inc. shareholders constant currency (non-GAAP)* |
$ |
(19,801) |
$ |
506 |
(4013%) |
$ |
(19,195) |
$ |
3,394 |
(666%) |
||||||
Gains and losses on foreign currency transactions are added back to net (loss) earnings in the Company’s Adjusted EBITDA** calculations. As such, there is no foreign currency impact to Adjusted EBITDA** when calculating Constant Currency* results.
|
Adjusted EBITDA Margins *** (unaudited) |
||||
|
For the three months |
For the year |
|||
|
ended December 31, |
ended December 31, |
|||
|
2019 |
2018 |
2019 |
2018 |
|
|
United States |
23% |
20% |
24% |
24% |
|
Canada |
27% |
32% |
26% |
32% |
|
Poland |
11% |
9% |
11% |
7% |
|
Corporate and Other |
(262%) |
(127%) |
(214%) |
(155%) |
|
Consolidated Adjusted EBITDA Margin |
15% |
13% |
14% |
14% |
|
CENTURY CASINOS, INC. AND SUBSIDIARIES |
|||||||||||||||
|
Reconciliation of Adjusted EBITDA ** to Net Earnings (Loss) Attributable to Century Casinos, Inc. Shareholders by Reportable Segment. |
|||||||||||||||
|
For the three months ended December 31, 2019 |
|||||||||||||||
|
Amounts in thousands |
United |
Canada |
Poland |
Corporate |
Total |
||||||||||
|
Net earnings (loss) attributable to Century Casinos, Inc. shareholders |
$ |
2,261 |
$ |
948 |
$ |
1,352 |
$ |
(24,701) |
$ |
(20,140) |
|||||
|
Interest expense (income), net |
1,635 |
1,456 |
55 |
1,020 |
4,166 |
||||||||||
|
Income taxes (benefit) |
789 |
1,375 |
222 |
(1,431) |
955 |
||||||||||
|
Depreciation and amortization |
756 |
1,356 |
781 |
254 |
3,147 |
||||||||||
|
Net earnings attributable to non-controlling interests |
— |
195 |
676 |
— |
871 |
||||||||||
|
Non-cash stock-based compensation |
— |
— |
— |
324 |
324 |
||||||||||
|
Loss (gain) on foreign currency transactions, cost recovery income and other |
— |
26 |
(678) |
16,704 |
16,052 |
||||||||||
|
Loss on disposition of fixed assets |
— |
22 |
76 |
1 |
99 |
||||||||||
|
Acquisition costs |
— |
— |
— |
4,302 |
4,302 |
||||||||||
|
Adjusted EBITDA |
$ |
5,441 |
$ |
5,378 |
$ |
2,484 |
$ |
(3,527) |
$ |
9,776 |
|||||
|
For the three months ended December 31, 2018 |
|||||||||||||||
|
Amounts in thousands |
United |
Canada |
Poland |
Corporate |
Total |
||||||||||
|
Net earnings (loss) attributable to Century Casinos, Inc. shareholders |
$ |
767 |
$ |
2,077 |
$ |
179 |
$ |
(2,517) |
$ |
506 |
|||||
|
Interest expense (income), net |
— |
1,084 |
50 |
65 |
1,199 |
||||||||||
|
Income taxes (benefit) |
266 |
435 |
280 |
(848) |
133 |
||||||||||
|
Depreciation and amortization |
548 |
779 |
1,025 |
402 |
2,754 |
||||||||||
|
Net earnings attributable to non-controlling interests |
— |
174 |
89 |
21 |
284 |
||||||||||
|
Non-cash stock-based compensation |
— |
— |
— |
255 |
255 |
||||||||||
|
(Gain) loss on foreign currency transactions and cost recovery income |
— |
(95) |
(138) |
94 |
(139) |
||||||||||
|
Loss on disposition of fixed assets |
1 |
4 |
27 |
23 |
55 |
||||||||||
|
Pre-opening expenses |
— |
533 |
221 |
— |
754 |
||||||||||
|
Adjusted EBITDA |
$ |
1,582 |
$ |
4,991 |
$ |
1,733 |
$ |
(2,505) |
$ |
5,801 |
|||||
|
CENTURY CASINOS, INC. AND SUBSIDIARIES |
|||||||||||||||
|
Reconciliation of Adjusted EBITDA ** to Net Earnings (Loss) Attributable to Century Casinos, Inc. Shareholders by Reportable Segment. |
|||||||||||||||
|
For the Year ended December 31, 2019 |
|||||||||||||||
|
Amounts in thousands |
United |
Canada |
Poland |
Corporate |
Total |
||||||||||
|
Net earnings (loss) attributable to Century Casinos, Inc. shareholders |
$ |
5,825 |
$ |
6,669 |
$ |
3,466 |
$ |
(35,115) |
$ |
(19,155) |
|||||
|
Interest expense (income), net |
1,635 |
5,312 |
197 |
1,085 |
8,229 |
||||||||||
|
Income taxes (benefit) |
2,018 |
3,278 |
1,617 |
(2,739) |
4,174 |
||||||||||
|
Depreciation and amortization |
2,330 |
4,539 |
3,064 |
910 |
10,843 |
||||||||||
|
Net earnings (loss) attributable to non-controlling interests |
— |
1,295 |
1,731 |
(12) |
3,014 |
||||||||||
|
Non-cash stock-based compensation |
— |
— |
— |
1,303 |
1,303 |
||||||||||
|
(Gain) loss on foreign currency transactions, cost recovery income and other |
— |
(439) |
(1,096) |
16,709 |
15,174 |
||||||||||
|
Loss on disposition of fixed assets |
17 |
20 |
413 |
345 |
795 |
||||||||||
|
Acquisition costs |
— |
— |
— |
5,366 |
5,366 |
||||||||||
|
Pre-opening expenses |
— |
538 |
— |
— |
538 |
||||||||||
|
Adjusted EBITDA |
$ |
11,825 |
$ |
21,212 |
$ |
9,392 |
$ |
(12,148) |
$ |
30,281 |
|||||
|
For the Year ended December 31, 2018 |
|||||||||||||||
|
Amounts in thousands |
United |
Canada |
Poland |
Corporate |
Total |
||||||||||
|
Net earnings (loss) attributable to Century Casinos, Inc. shareholders |
$ |
4,373 |
$ |
7,715 |
$ |
(153) |
$ |
(8,541) |
$ |
3,394 |
|||||
|
Interest expense (income), net |
1 |
3,895 |
206 |
12 |
4,114 |
||||||||||
|
Income taxes (benefit) |
1,508 |
2,536 |
595 |
(2,722) |
1,917 |
||||||||||
|
Depreciation and amortization |
2,178 |
3,211 |
3,065 |
945 |
9,399 |
||||||||||
|
Net earnings (loss) attributable to non-controlling interests |
— |
722 |
(75) |
(35) |
612 |
||||||||||
|
Non-cash stock-based compensation |
— |
— |
— |
868 |
868 |
||||||||||
|
(Gain) loss on foreign currency transactions and cost recovery income |
— |
(235) |
(428) |
2 |
(661) |
||||||||||
|
Loss on disposition of fixed assets |
1 |
10 |
1,054 |
25 |
1,090 |
||||||||||
|
Pre-opening expenses |
— |
1,668 |
626 |
350 |
2,644 |
||||||||||
|
Adjusted EBITDA |
$ |
8,061 |
$ |
19,522 |
$ |
4,890 |
$ |
(9,096) |
$ |
23,377 |
|||||
CENTURY CASINOS, INC. AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION
* The impact of foreign exchange rates is highly variable and difficult to predict. The Company uses a Constant Currency basis to show the impact from foreign exchange rates on current period financial information compared to prior period financial information using the prior period’s foreign exchange rates. In order to properly understand the underlying business trends and performance of the Company’s ongoing operations, management believes that investors may find it useful to consider the impact of excluding changes in foreign exchange rates from the Company’s net operating revenue, (loss) earnings from operations and net earnings (loss) attributable to Century Casinos, Inc. shareholders. Constant currency results are calculated by dividing the current quarter or year to date local currency segment results, excluding the local currency impact of foreign currency gains and losses, by the prior year’s average exchange rate for the quarter or year to date and comparing them to actual U.S. dollar results for the prior quarter or year to date. The average exchange rates for the current and prior year are reported in Note 2 to the Consolidated Financial Statements included in Part II, Item 8, “Financial Statements and Supplementary Data” of the Company’s Annual Report on Form 10-K. The average exchange rates for the three months ended December 31, 2019 and 2018 are presented below.
|
For the three months |
||||||
|
ended December 31, |
||||||
|
Average Rates |
2019 |
2018 |
% Change |
|||
|
Canadian dollar (CAD) |
1.3199 |
1.3218 |
0.1% |
|||
|
Euros (EUR) |
0.9032 |
0.8763 |
(3.1%) |
|||
|
Polish zloty (PLN) |
3.8702 |
3.7668 |
(2.7%) |
|||
|
British pound (GBP) |
0.7766 |
0.7773 |
0.1% |
|||
|
Source: Pacific Exchange Rate Service |
||||||
Constant currency information is not a measure of financial performance under generally accepted accounting principles in the United States of America (GAAP) and should not be considered a substitute for net operating revenue, (loss) earnings from operations or net earnings (loss) attributable to Century Casinos, Inc. shareholders as determined in accordance with GAAP.
SOURCE Century Casinos, Inc.
Compliance Updates
EPIC Global Solutions highlighted as a key element in PrizePicks’ iCAP Accreditation
EPIC is proud to have played a key role in helping PrizePicks achieve iCAP certification, the industry’s leading responsible gaming (RG) assessment.
As the globally recognized experts in harm minimization, EPIC worked closely with PrizePicks to enhance its responsible gaming initiatives, contributing to this historic milestone. With the certification, PrizePicks becomes the first and only daily fantasy sports operator in North America to achieve this level of recognition.
A key factor in this achievement was EPIC Global Solutions’ implementation of its comprehensive responsible gaming (RG) tools within PrizePicks. Through an anonymous, company-wide RG survey, EPIC provided valuable insights into the organization’s culture and commitment to player protection. The survey revealed that 82% of PrizePicks employees believe the company fosters a strong RG culture, while 88% emphasized the importance of responsible gaming for the long-term sustainability of the industry.
“Direct engagement with staff was pivotal to our assessment,” said Teresa Fiore, SVP North America at EPIC Global Solutions.
“Our survey underscores how deeply PrizePicks is committed to responsible gaming—not only as an ethical imperative but as a driver of employee morale and long-term industry sustainability. Additionally, they recognize that a strong commitment to RG is essential for the long-term sustainability of the industry.”
EPIC’s robust assessment also highlighted the significant impact of extensive RG training, with over 2,500 hours provided to staff from partners such as EPIC during the past year. The survey’s insights have not only served as a foundational benchmark for ongoing improvements but have also been cited as a critical factor in PrizePicks securing its iCAP accreditation.
Phil Sherwood, Senior Director of Responsible Gaming at PrizePicks, added: “Our partnership with EPIC has been instrumental in elevating our responsible gaming initiatives. Their expertise and insights have enhanced our programs, contributed to our iCAP accreditation, and reinforced our commitment to continuous improvement.”
Both EPIC and PrizePicks are committed to building on these achievements with plans to conduct annual surveys and further integrate employee insights into future RG initiatives.
The post EPIC Global Solutions highlighted as a key element in PrizePicks’ iCAP Accreditation appeared first on European Gaming Industry News.
Welcome to our weekly roundup of American gambling news again! Here, we are going through the weekly highlights of the American gambling industry which include the latest news and new partnerships. Read on and get updated.
Latest News
PENN Entertainment announced that its stand-alone Hollywood Casino app has launched in New Jersey. The new Hollywood Casino platform is available on Android, iOS and desktop and can also be accessed via the ESPN BET app. Customers can login to Hollywood Casino using their ESPN BET credentials, allowing for a seamless experience across PENN’s online betting and casino platforms. Ranked by Eilers & Krejcik as the #2 overall iCasino product in the US, Hollywood Casino offers a variety of online slots, table games and live dealer content, including original titles from PENN Game Studios, the company’s in-house casino game development studio. Hollywood Casino also includes bespoke live dealer tables and exclusive games such as the recently launched Devils Blackjack, an original title leveraging PENN’s partnership with the New Jersey Devils.
Quixant has announced its attendance at and sponsorship of this year’s Indian Gaming Tradeshow and Convention (IGA), to be held between March 31 and April 3, 2025 at the San Diego Convention Centre. Described as the largest gathering of tribal leaders and casino executives in North America, IGA 2025 is a key date in the gaming event calendar. Quixant will support the event with sponsorship at the prestigious annual golf tournament, the Chairman’s Golf Classic, which raises funds for the Native Forward Scholarship Fund to improve tribal education throughout North America. The team look forward to engaging with attendees, to explore their opportunities ahead and understand how Quixant can support and enable their success. Quixant’s product range offers game-changing hardware and software solutions that expedite speed to market. Its specialist gaming hardware platforms, IQ, IQON and QMAX can be tailored to different product needs, budgets and markets.
Partnerships
Soft2Bet has announced its plans to launch in the US headlined by the debut of its award-winning Motivational Engineering Gaming Application (MEGA) product, made possible through a market access agreement with Caesars Entertainment. The launch will see Soft2Bet unveil a new iGaming brand in New Jersey, following necessary regulatory approvals, and with a targeted launch in the Summer of 2025. Soft2Bet’s award-winning MEGA will soon be available to operators in the US. The MEGA product, which Soft2Bet unveiled in 2023, has quickly redefined and transformed gamification with increased engagement, customised player experience and a proven player retention model. Operators around the world using Soft2Bet’s MEGA gamification technology platform have seen positive impact with high engagement and retention.
Aeropay, a leading financial technology company specialising in pay by bank, has announced its membership in the Coalition for Fantasy Sports (CFS), marking the first time a vendor has joined the organisation. This strategic partnership underscores the Coalition’s expanding influence and reinforces its position as the foremost authority on daily fantasy sports. The Coalition for Fantasy Sports, comprising industry leaders such as PrizePicks, Underdog Fantasy, Betr, Dabble and the recently added Splash Sports, continues to advocate for innovation, responsible play and consumer protection within the fantasy sports industry. By welcoming Aeropay, CFS broadens its scope to include key service providers, enhancing its ability to address the multifaceted needs of the industry.
The post Gaming Americas Weekly Roundup – March 17-23 appeared first on European Gaming Industry News.
Bruce Smith Enterprise
Bruce Smith Enterprise and The Cordish Companies Break Ground on New Live! Casino & Hotel in Petersburg, Virginia
Bruce Smith Enterprise and The Cordish Companies celebrated the groundbreaking of the new LIVE! CASINO & HOTEL VIRGINIA in Petersburg. The milestone officially commences construction on a transformative project that will generate billions of dollars in economic benefits and spinoff development, create thousands of new jobs, and set a new standard for gaming, hotels, and entertainment in the Commonwealth. Live! Casino & Hotel Virginia is part of a larger $1.4 billion master plan by the partnership, scheduled to be developed in phases, that will bring a world-class mixed-use resort destination to Petersburg.
Executives from Bruce Smith Enterprise, The Cordish Companies, and Cordish Gaming were joined by Petersburg City Mayor Sam Parham and members of Petersburg City Council, Virginia State Senator Lashrecse Aird, Virginia State Delegate Kim Taylor, and many other business and community leaders at the project site in Petersburg. The development site, ideally located on Brasfield Parkway at the intersection of Wagner Road and Interstate I-95 just 20 miles south of Richmond, will provide easy access on and off the East Coast’s major north-south interstate.
“It has been a source of immense satisfaction and pride to partner in this incredible development. For far too long people have simply driven by the City of Petersburg, but today marks the beginning of a new era in which Petersburg will become a prime destination. This pivotal project will ignite tourism, create jobs, and ultimately deliver on the promise of greater opportunity and upward mobility for local families. As a champion of Petersburg and its residents, I am happily confident that this historic development will uplift, empower, and enrich this community for years to come,” said Bruce Smith, founder of Bruce Smith Enterprise.
Live! Casino & Hotel Virginia is slated to open in 2027. A temporary gaming facility will open by the end of 2025 to immediately begin creating an estimated 500 new jobs, vendor opportunities and economic benefits for the City. In its first 10 years, the project is expected to generate $2.8 billion in economic stimulus to the region; $504 million in tax revenues including $240 million to the City of Petersburg; $802 million in economic benefits during construction; $201 million in annual economic benefits each year after opening; and 7500 new jobs including 6100 during construction and 1400 new permanent jobs.
“Today marks a monumental day for The Cordish Companies as we expand our Live! brand into the Central Virginia region with the development of Live! Casino & Hotel Virginia. Our company is a national leader in successfully developing and managing large-scale urban revitalization projects across the country. Live! Casino & Hotel will be a transformative development that will bring a world-class gaming and entertainment experience to millions of visitors, create significant new jobs, and generate millions of dollars in economic benefits for the community that will provide a beneficial impact for generations. We look forward to making an immediate impact on the region with the construction of a temporary gaming facility that will be operational before the end of 2025, so that we can begin creating jobs, vendor opportunities and economic benefits for the City,” said Zed Smith, Chief Operating Officer for The Cordish Companies.
The post Bruce Smith Enterprise and The Cordish Companies Break Ground on New Live! Casino & Hotel in Petersburg, Virginia appeared first on Gaming and Gambling Industry in the Americas.
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