COLORADO SPRINGS, Colo., Aug. 11 /PRNewswire-FirstCall/ -- Century
Casinos, Inc. (Nasdaq: CNTY; Vienna Stock Exchange) reported today the
financial results for the three and six months ended June 30, 2008.
Second Quarter 2008
For the second quarter of 2008, net operating revenue was $21,546,000 and
consolidated Adjusted EBITDA* was $4,550,000. This represents a 5% decrease in
net operating revenue over the same quarter of last year ($22,673,000 in the
second quarter of 2007) and a 5% decrease in consolidated Adjusted EBITDA*
($4,784,000 in the second quarter of 2007). Declines in net operating revenue
at our properties in Colorado were partially offset by an increase in net
operating revenue at the Company's property in Edmonton.
The Company reported net earnings of $835,000, or $0.04 per basic and
fully diluted share for the second quarter of 2008. Net earnings for the
second quarter of 2007 were $1,041,000, or $0.04 per fully diluted share
($0.05 per basic share).
Six months ended June 30, 2008
For the first six months of 2008, net operating revenue was $42,526,000
and consolidated Adjusted EBITDA* was $8,943,000. This represents a 3%
decrease in net operating revenue over the same period of last year
($43,734,000 in the first six months of 2007) and a 10% decrease in
consolidated Adjusted EBITDA* ($9,989,000 in the first six months of 2007).
Declines in net operating revenue at our properties in Colorado, particularly
at Womacks, and a decline in the average exchange rate between the U.S. dollar
and South African rand ('rand') were partially offset by an improvement in net
operating revenue at the Company's property in Edmonton.
The Company reported net earnings of $1,376,000, or $0.06 per basic and
fully diluted share for the six months ended June 30, 2008. Net earnings for
the first six months of 2007 were $2,583,000, or $0.11 per basic and fully
diluted share.
Property Results
Century Casino & Hotel (Edmonton, Alberta, Canada) - Net operating revenue
at the Century Casino & Hotel in Edmonton increased 29% to $5,795,000 for the
second quarter of 2008 compared to $4,480,000 for the second quarter of 2007.
Adjusted EBITDA* was $2,262,000 for the second quarter of 2008 and $1,165,000
for the second quarter of 2007, an increase of 94%. In the second half of
2007, the Company converted a dinner theater to a showroom venue that has
drawn better attendance. The Alberta Gaming and Liquor Commission increased
the number of slot machines at the casino from 600 to 650 in September 2007.
In addition, the Company introduced 24-hour poker at the casino during the
fourth quarter of 2007. All of these factors have led to additional play at
the casino.
Net operating revenue at the Century Casino & Hotel in Edmonton increased
32% to $11,352,000 for the six months ended June 30, 2008 compared to
$8,632,000 for the six months ended June 30, 2007. Adjusted EBITDA* was
$4,190,000 for the six months ended June 30, 2008 compared to $2,148,000 in
the same 2007 period, a 95% increase.
Womacks Casino (Cripple Creek, Colorado, USA) - Net operating revenue at
Womacks Casino in Cripple Creek, Colorado decreased 36% to $2,859,000 for the
second quarter of 2008 from $4,440,000 for the second quarter of 2007. Gaming
revenue in the Cripple Creek market as a whole declined 7.9% compared to a
35.4% decline at Womacks. Management attributes this to a decline in consumer
discretionary income, increased fuel prices and a smoking ban that went into
effect on January 1, 2008. In addition, management believes that Womacks lost
a significant amount of its customers due to a renovation that began during
the fourth quarter of 2007 and continued through the first quarter of 2008.
Finally, in late May 2008, a new larger casino opened in Cripple Creek. The
Company is reviewing strategies to improve revenue at Womacks. The Company has
replaced the property manager and reduced staffing levels at the casino.
Womacks' Adjusted EBITDA* for the second quarter of 2008 was $433,000 compared
to $1,679,000 in the second quarter of 2007. The decrease in Adjusted EBITDA*
is due to the decline in revenue, which management believes was a result of
the above mentioned factors.
Womacks' net operating revenue was $5,741,000 for the six months ended
June 30, 2008 compared to $8,499,000 for the six months ended June 30, 2007.
Gaming revenue in the Cripple Creek market as a whole declined 10.2% compared
to a 30.2% decline at Womacks. Womacks' Adjusted EBITDA* for the six months
ended June 30, 2008 was $712,000 compared to $2,972,000 in the same 2007
period. The decrease in Adjusted EBITDA* is primarily due to the decline in
revenue.
Century Casino and Hotel (Central City, Colorado, USA) - Net operating
revenue at the Century Casino and Hotel decreased 9% to $4,617,000 for the
second quarter of 2008 compared to $5,060,000 reported for the second quarter
of 2007. Adjusted EBITDA* for the second quarter of 2008 increased to
$1,216,000 compared to $1,078,000 in the second quarter of 2007. The increase
in Adjusted EBITDA* is primarily due to a decrease in general and
administrative expenses resulting from a property tax accrual adjustment in
the second quarter of 2007. Gaming revenue in the Central City market as a
whole decreased 15.7% compared to a decrease of 10.8% for the Century Casino
and Hotel.
The Century Casino and Hotel's net operating revenue was $9,024,000 for
the six months ended June 30, 2008 compared to $9,575,000 for the six months
ended June 30, 2007, a decline of 5.8%. Gaming revenue in the Central City
market as a whole decreased 12.6% compared to a decrease of 7.7% for the
Century Casino and Hotel. The Century Casino and Hotel's Adjusted EBITDA* for
the six months ended June 30, 2008 was $2,051,000 compared to $2,133,000 in
the same 2007 period. The decrease in Adjusted EBITDA* is primarily due to the
decline in revenue.
On December 31, 2007, the Company acquired the remaining 35% of all issued
and outstanding partnership units from the minority investor in its casino in
Central City, Colorado. The Company now recognizes the casino's net income or
losses at 100% going forward.
The Caledon Hotel, Spa and Casino (Caledon, South Africa) - Net operating
revenue at the Caledon decreased 8% to $4,071,000 for the second quarter of
2008 compared to $4,414,000 reported for the second quarter of 2007,
primarily due to a decline in the average exchange rate between the U.S.
dollar and South Africa rand. Net operating revenue in rand increased to ZAR
31,603,000 for the second quarter of 2008 from ZAR 31,252,000 for the second
quarter of 2007. Our market share of the Western Cape gaming revenue declined
from 5.0% for the second quarter of 2007 to 4.7% for the second quarter of
2008. In June 2007, a competitor in Cape Town added 500 slot machines to its
gaming floor. This represents a 16% increase in gaming positions in the
Western Cape. The Caledon maintained net operating revenue at levels near 2007
despite the increase in gaming positions in the market, lower consumer
discretionary income resulting from increased interest rates and higher fuel
and food costs. The Caledon Hotel, Spa and Casino's Adjusted EBITDA* for the
second quarter of 2008 was $1,380,000 compared to $1,733,000 in the second
quarter of 2007. The decrease in Adjusted EBITDA* is primarily due to the
decline in the average exchange rate and in revenue.
The Caledon Hotel, Spa and Casino's net operating revenue was $8,289,000
for the six months ended June 30, 2008 compared to $8,798,000 for the six
months ended June 30, 2007. The decrease is primarily due to the decline in
the average exchange rate between the U.S. dollar and rand. In rand, net
operating revenue was ZAR 63,312,000 for the six months ended June 30, 2008
compared to ZAR 62,694,000 for the six months ended June 30, 2007. Our market
share of the Western Cape gaming revenue declined from 5.0% for the six months
ended June 30, 2007 to 4.7% for the six months ended June 30, 2008. As
mentioned above, in June 2007, a competitor in Cape Town added 500 slot
machines to its gaming floor. This represents a 16% increase in gaming
positions in the Western Cape. The Caledon Hotel, Spa and Casino maintained
net operating revenue at levels near 2007 despite the increase in gaming
positions in the market, lower consumer discretionary income resulting from
increased interest rates and higher fuel and food costs. The Caledon Hotel,
Spa and Casino's Adjusted EBITDA* for the six months ended June 30, 2008 was
$2,884,000 compared to $3,249,000 in the same 2007 period. The decrease in
Adjusted EBITDA* is primarily due to the decline in the average exchange rate
and in revenue.
Century Casino and Hotel (Newcastle, South Africa) - Net operating revenue
decreased 6% to $2,886,000 for the second quarter of 2008 compared to
$3,057,000 reported for the second quarter of 2007, primarily due to a decline
in the average exchange rate between the U.S. dollar and rand. Net operating
revenue in rand increased 3% to ZAR 22,395,000 for the second quarter of 2008
from ZAR 21,726,000 for the second quarter of 2007. The Century Casino and
Hotel's Adjusted EBITDA* for the second quarter of 2008 was $256,000 compared
to $246,000 for the second quarter of 2007.
The Century Casino and Hotel's net operating revenue was $5,599,000 for
the six months ended June 30, 2008 compared to $5,710,000 for the six months
ended June 30, 2007. The decrease is primarily due to the decline in the
average exchange rate between the U.S. dollar and rand. In rand, the Century
Casino and Hotel's net operating revenue increased to ZAR 42,858,000 for the
six months ended June 30, 2008 from ZAR 40,900,000 for the six months ended
June 30, 2007. The Century Casino and Hotel's Adjusted EBITDA* for the six
months ended June 30, 2008 was $1,750,000 compared to $1,973,000 in the same
2007 period. The decrease in Adjusted EBITDA* is primarily due to the decline
in the average exchange rate.
Other Operations - The Company's other operations, which include the
Century Casino Millennium in Prague and the Company's ship-based casinos,
contributed net operating revenue of $1,317,000 and Adjusted EBITDA* of
$111,000 for the second quarter of 2008 compared to net operating revenue of
$1,221,000 and Adjusted EBITDA* of $30,000 for the second quarter of 2007. The
increase in Adjusted EBITDA* is primarily due to improved ship-based
operations. These operations contributed net operating revenue of $2,518,000
and $2,513,000 for the six months ended June 30, 2008 and 2007, respectively
and contributed Adjusted EBITDA* of $179,000 and $273,000 for the six months
ended June 30, 2008 and 2007, respectively. The decline in Adjusted EBITDA* is
primarily due to increased general and administrative expenses at the Century
Casino Millennium.
Corporate - Corporate operations reports negative Adjusted EBITDA* of
$1,703,000 for the second quarter of 2008 compared to negative Adjusted
EBITDA* of $2,030,000 for the second quarter of 2007. The increase in Adjusted
EBITDA* is primarily due to a decrease in general and administrative expenses
of $282,000.
Corporate operations reports negative Adjusted EBITDA* of $2,823,000 for
the six months ended June 30, 2008 compared to negative Adjusted EBITDA* of
$2,759,000 for the six months ended June 30, 2007. The slight decrease in
Adjusted EBITDA* is due to a decrease in foreign currency gains recognized
period over period of $716,000, offset by decreased general and administrative
expenses of $151,000 and the recognition of an additional $494,000 of equity
earnings from our investment in Casinos Poland. We acquired a 33.3% interest
in Casinos Poland in March 2007.
The Company will post a slide show presentation of the results of
operations for the second quarter of 2008 on its web site at
www.cnty.com/corporate/investor/presentations/ on Monday, August 11, 2008.
On Monday, August 11, 2008, Century Casinos will host its Q2 2008 Earnings
Conference Call, at 10:30am MDT; 6:30pm CEST respectively. US domestic
participants please dial +1-800-894-5910, all other international participants
please use +1-785-424-1052 to dial in. Participants may also listen to the
call live or obtain a recording of the call on our website at
www.cnty.com/corporate/investor/financial-results/.
* See discussion and reconciliation of Adjusted EBITDA below.
CENTURY CASINOS, INC. AND SUBSIDIARIES
FINANCIAL INFORMATION - US GAAP BASIS
Century Casinos, Inc.
Condensed Consolidated Statements of Earnings (Unaudited)
(Amounts in thousands, except for share information)
For the Three Months For the Six Months
Ended June 30, Ended June 30,
2008 2007 2008 2007
Operating Revenue:
Gaming $19,533 $21,489 $38,937 $41,378
Hotel, food and
beverage 3,388 2,979 6,661 5,846
Other 554 446 1,078 939
Gross revenue 23,475 24,914 46,676 48,163
Less promotional
allowances 1,929 2,241 4,150 4,429
Net operating
revenue 21,546 22,673 42,526 43,734
Operating Costs and Expenses:
Gaming 8,158 8,473 16,329 16,568
Hotel, food and
beverage 2,479 2,542 5,037 5,125
General and
administrative 6,778 6,984 13,572 12,785
Impairments and other
write-offs, net of
recoveries - 40 - 25
Depreciation 2,311 2,304 4,576 4,323
Total operating costs
and expenses 19,726 20,343 39,514 38,826
Earnings from Equity
Investment 88 54 548 54
Earnings from Operations 1,908 2,384 3,560 4,962
Non-Operating Income (Expense):
Interest income 56 443 125 717
Interest expense (1,336) (1,699) (2,909) (3,631)
Other income, net (6) (41) 179 787
Non-operating (expense),
net (1,286) (1,297) (2,605) (2,127)
Earnings before Income
Taxes, Minority Interest
and Preferred Dividends 622 1,087 955 2,835
(Benefit) provision for
income taxes (332) 304 (704) 628
Earnings before Minority
Interest and Preferred
Dividends 954 783 1,659 2,207
Minority interest in
subsidiary losses, net (69) 315 (180) 652
Preferred dividends issued
by subsidiary (50) (57) (103) (276)
Net Earnings $835 $1,041 $1,376 $2,583
Earnings Per Share:
Basic $0.04 $0.05 $0.06 $0.11
Diluted $0.04 $0.04 $0.06 $0.11
Weighted Average Shares
Outstanding:
Basic 23,468,243 23,051,067 23,386,540 23,039,429
Diluted 23,568,223 23,887,922 23,602,966 23,935,403
CENTURY CASINOS, INC. AND SUBSIDIARIES
FINANCIAL INFORMATION - US GAAP BASIS
Century Casinos, Inc.
Condensed Consolidated Balance Sheets (Unaudited)
(Amounts in thousands)
June 30, December 31,
2008 2007
Assets
Current Assets $12,901 $21,109
Other Assets 171,799 176,974
Total Assets $184,700 $198,083
Liabilities and Shareholders' Equity
Current Liabilities $20,600 $23,903
Non-Current Liabilities 51,151 62,191
Shareholders' Equity 112,949 111,989
Total Liabilities and Shareholders'
Equity $184,700 $198,083
CENTURY CASINOS, INC. AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION
Century Casinos, Inc.
Net Operating Revenue by Property (Unaudited)
(Amounts in thousands)
For the Three Months For the Six Months
Ended June 30, Ended June 30,
2008 2007 2008 2007
Century Casino & Hotel,
Edmonton $5,795 $4,480 $11,352 $8,632
Womacks Casino & Hotel,
Cripple Creek 2,859 4,440 5,741 8,499
Century Casino & Hotel,
Central City 4,617 5,060 9,024 9,575
Caledon Hotel, Spa & Casino 4,071 4,414 8,289 8,798
Century Casino & Hotel,
Newcastle 2,886 3,057 5,599 5,710
Century Casino Millennium
& Cruise Ships 1,317 1,221 2,518 2,513
Corporate 1 1 3 7
Consolidated net operating
revenue $21,546 $22,673 $42,526 $43,734
Century Casinos, Inc.
Adjusted EBITDA Margins** by Property (Unaudited)
For the Three Months For the Six Months
Ended June 30, Ended June 30,
2008 2007 2008 2007
Century Casino & Hotel,
Edmonton 39% 26% 37% 25%
Womacks Casino & Hotel,
Cripple Creek 15% 38% 12% 35%
Century Casino & Hotel,
Central City 26% 21% 23% 22%
Caledon Hotel, Spa & Casino 34% 39% 35% 37%
Century Casino & Hotel,
Newcastle 29% 37% 31% 35%
Century Casino Millennium &
Cruise Ships 8% 2% 7% 11%
Corporate - - - -
Consolidated Adjusted
EBITDA Margin** 21% 21% 21% 23%
CENTURY CASINOS, INC. AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION
Century Casinos, Inc.
Reconciliation of Adjusted EBITDA* by Property (Unaudited)
For the Three Months Ended June 30, 2008
(Amounts in thousands)
Casino
Millennium
Cripple Central & Cruise
Edmonton Creek City Caledon Newcastle Ships Corporate Total
Net
Earnings $1,099 $8 $(37) $598 $ 256 $- $(1,089) $835
Minority
Interest - - - - 31 - 38 69
Interest
Income (5) - - (22) (13) (9) (7) (56)
Interest
Expense 351 (20) 532 147 214 - 112 1,336
Income
Taxes 455 7 (34) 286 137 5 (1,188) (332)
Depreciation 362 438 755 337 226 113 80 2,311
Stock
Compensation - - - - - - 349 349
Loss on
Disposition
of Fixed
Assets - - - 34 - 2 2 38
Adjusted
EBITDA* $2,262 $433 $1,216 $1,380 $ 851 $ 111 $(1,703) $4,550
Century Casinos, Inc.
Reconciliation of Adjusted EBITDA* by Property (Unaudited)
For the Three Months Ended June 30, 2007
(Amounts in thousands)
Casino
Millennium
Cripple Central & Cruise
Edmonton Creek City Caledon Newcastle Ships Corporate Total
Net
Earnings $298 $793 $50 $782 $ 246 $(133) $(995) $1,041
Minority
Interest - - (452) - 94 - 43 (315)
Interest
Income (6) (1) - (33) (6) (1) (396) (443)
Interest
Expense 346 1 729 183 185 - 255 1,699
Income
Taxes 188 490 30 453 156 (4) (1,009) 304
Depreciation 336 395 721 326 369 103 54 2,304
Stock
Compensation - - - - - - 15 15
Impairments
and other
write-offs,
net of
recoveries - - - 28 9 3 - 40
(Gain) Loss
on disposition
of fixed
assets 3 1 - (6) - (1) 3 -
Other - - - - 76 63 - 139
Adjusted
EBITDA* $1,165 $1,679 $1,078 $1,733 $1,129 $30 $(2,030) $4,784
CENTURY CASINOS, INC. AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION
Century Casinos, Inc.
Reconciliation of Adjusted EBITDA* by Property (Unaudited)
For the Six Months Ended June 30, 2008
(Amounts in thousands)
Casino
Millennium
Cripple Central & Cruise
Edmonton Creek City Caledon Newcastle Ships Corporate Total
Net
Earnings $1,933 $(57) $(414) $1,333 $ 552 $ (34) $(1,937) $1,376
Minority
Interest - - - - 97 - 83 180
Interest
Income (15) - - (41) (29) (17) (23) (125)
Interest
Expense 711 (48) 1,233 307 394 - 312 2,909
Income
Taxes 844 (34) (277) 602 274 3 (2,116) (704)
Depreciation 717 861 1,509 649 462 223 155 4,576
Stock
Compensation - - - - - - 697 697
(Gain) Loss
on Disposition
of Fixed
Assets - (10) - 34 - 4 6 34
Adjusted
EBITDA* $4,190 $712 $2,051 $2,884 $1,750 $ 179 $(2,823) $8,943
Century Casinos, Inc.
Reconciliation of Adjusted EBITDA* by Property (Unaudited)
For the Six Months Ended June 30, 2007
(Amounts in thousands)
Casino
Millennium
Cripple Central & Cruise
Edmonton Creek City Caledon Newcastle Ships Corporate Total
Net
Earnings $604 $1,347 $(5) $1,379 $ 473 $ 31 $(1,246) $2,583
Minority
Interest - - (925) - 190 - 83 (652)
Interest
Income (44) (5) - (62) (8) (9) (589) (717)
Interest
Expense 658 18 1,655 369 369 - 562 3,631
Income
Taxes 320 827 (3) 897 295 (1) (1,707) 628
Depreciation 607 784 1,411 644 569 202 106 4,323
Stock
Compensation - - - - - - 29 29
Impairments
and other
write-offs,
net of
recoveries - - - 28 9 (12) - 25
(Gain) Loss
on
disposition
of fixed
assets 3 1 - (6) - (1) 3 -
Other - - - - 76 63 - 139
Adjusted
EBITDA* $2,148 $2,972 $2,133 $3,249 $1,973 $273 $(2,759) $9,989
CENTURY CASINOS, INC. AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION
* The Company defines Adjusted EBITDA as earnings before interest, income
taxes, depreciation, amortization, minority interest, pre-opening expenses,
non-cash stock based compensation charges, asset impairment costs, gains
(losses) on disposition of fixed assets, discontinued operations and certain
other one-time items. Intercompany transactions consisting primarily of
management fees and interest, along with their related tax effects, are
excluded from the presentation of net earnings and Adjusted EBITDA reported
for each property. 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 among its operating segments. 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 our lending institutions 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. Not all of the aforementioned benefits and costs occur in
each reporting period, but have been included in the definition based on
historic activity.
** 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 the Womacks Casino and Hotel in Cripple Creek,
Colorado, the Century Casino & Hotel in Central City, Colorado, the Century
Casino & Hotel in Edmonton, Alberta, Canada, and the Century Casino Millennium
in the Marriott Hotel in Prague, Czech Republic. The Company also operates
casinos aboard the Silver Cloud, The World of ResidenSea, and the vessels of
Oceania Cruises. Through its subsidiary Century Casinos Africa (Pty) Limited,
it owns and operates The Caledon Hotel, Spa & Casino near Cape Town, South
Africa, as well as 60% of, and provides technical casino services to, Century
Casino Newcastle, in Newcastle, South Africa. Furthermore, the Company's
Austrian subsidiary, Century Casinos Europe GmbH, holds a 33.3% ownership
interest in Casinos Poland Ltd, the owner and operator of seven full casinos
and one slot casino in Poland. The Company continues to pursue other
international projects in various stages of development.
For more information about Century Casinos, visit our new website at
www.centurycasinos.com. Century Casinos' common stock trades on The NASDAQ
Capital Market(R) and the Vienna Stock Exchange under the symbol CNTY.
CENTURY CASINOS, INC. AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION
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, statements regarding revenue
growth, marketing efforts, progress at and plans for our casinos, gaming
market growth, the impact of improvements at our properties, the impact of the
Colorado law banning smoking in casinos and impact of economic downturn. 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 filed
on March 17, 2008 and under Part II. Item 1A of our Quarterly Report on Form
10-Q filed on May 12, 2008. 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.
