Century Casinos, Inc. Announces Fourth Quarter and Full Year 2021 Results

For the three months

For the year

Amounts in thousands, except per share data

ended December 31,

ended December 31,

Consolidated Results:

2021

2020

% Change

2021

2020

% Change

Net Operating Revenue

$

107,300

$

84,801

27%

$

388,506

$

304,268

28%

Earnings (Loss) from Operations

16,430

18,747

(12%)

68,518

(127)

54051%

Net Earnings (Loss) Attributable to Century Casinos, Inc. Shareholders

$

3,960

$

6,713

(41%)

$

20,622

$

(48,002)

143%

Adjusted EBITDA**

$

24,888

$

18,306

36%

$

97,926

$

48,398

102%

Earnings (Loss) Per Share Attributable to Century Casinos, Inc. Shareholders:

Basic

$

0.13

$

0.23

(44%)

$

0.70

$

(1.62)

143%

Diluted

$

0.13

$

0.22

(43%)

$

0.66

$

(1.62)

141%

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 Downs Racetrack and Casino

Century Sports

Poland

Poland

Casinos Poland

Corporate and Other

Corporate and Other

Cruise Ships & Other

Corporate Other

Net Operating Revenue

For the three months

For the year

ended December 31,

$

%

ended December 31,

$

%

Amounts in thousands

2021

2020

Change

Change

2021

2020

Change

Change

United States

$

68,316

$

58,440

$

9,876

17%

$

283,285

$

198,344

$

84,941

43%

Canada

16,396

12,757

3,639

29%

46,428

50,240

(3,812)

(8%)

Poland

22,478

13,477

9,001

67%

58,226

54,271

3,955

7%

Corporate and Other

110

127

(17)

567

1,413

(846)

(60%)

Consolidated

$

107,300

$

84,801

$

22,499

$

388,506

$

304,268

$

84,238

28%

Earnings (Loss) from Operations

For the three months

For the year

ended December 31,

$

%

ended December 31,

$

%

Amounts in thousands

2021

2020

Change

Change

2021

2020

Change

Change

United States

$

16,455

$

12,507

$

3,948

32%

$

77,021

$

(1,191)

$

78,212

6567%

Canada

2,180

9,195

(7,015)

(76%)

4,534

9,350

(4,816)

(52%)

Poland

2,085

(1,077)

3,162

294%

(443)

(2,783)

2,340

84%

Corporate and Other

(4,290)

(1,878)

(2,412)

(128%)

(12,594)

(5,503)

(7,091)

(129%)

Consolidated

$

16,430

$

18,747

$

(2,317)

$

68,518

$

(127)

$

68,645

54051%

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

2021

2020

Change

Change

2021

2020

Change

Change

United States

$

10,146

$

5,437

$

4,709

87%

$

49,628

$

(30,571)

$

80,199

262%

Canada

859

6,652

(5,793)

(87%)

1,124

2,551

(1,427)

(56%)

Poland

1,880

(244)

2,124

871%

440

(1,373)

1,813

132%

Corporate and Other

(8,925)

(5,132)

(3,793)

(74%)

(30,570)

(18,609)

(11,961)

(64%)

Consolidated

$

3,960

$

6,713

$

(2,753)

(41%)

$

20,622

$

(48,002)

$

68,624

143%

Adjusted EBITDA**

For the three months

For the year

ended December 31,

$

%

ended December 31,

$

%

Amounts in thousands

2021

2020

Change

Change

2021

2020

Change

Change

United States

$

21,179

$

17,133

$

4,046

24%

$

95,760

$

47,199

$

48,561

103%

Canada

3,396

3,981

(585)

(15%)

9,510

11,497

(1,987)

(17%)

Poland

3,231

(234)

3,465

1481%

2,629

344

2,285

664%

Corporate and Other

(2,918)

(2,574)

(344)

(13%)

(9,973)

(10,642)

669

Consolidated

$

24,888

$

18,306

$

6,582

36%

$

97,926

$

48,398

$

49,528

102%

* 

Amounts presented are rounded. As such, rounding differences could occur in period over period changes and percentages reported.

** 

Adjusted EBITDA and Adjusted EBITDA margin are Non-US GAAP financial measures. See discussion and reconciliation of Non-US GAAP financial measures in Supplemental Information below.

*** 

The Company defines book value per share as total Century Casinos, Inc. shareholders' equity divided by outstanding common shares.

CENTURY CASINOS, INC. AND SUBSIDIARIES
UNAUDITED FINANCIAL INFORMATION – US GAAP BASIS

Condensed Consolidated Statements of Earnings (Loss)

For the three months

For the year

ended December 31,

ended December 31,

Amounts in thousands, except for per share information

2021

2020

2021

2020

Operating revenue:

Net operating revenue

$

107,300

$

84,801

$

388,506

$

304,268

Operating costs and expenses:

Total operating costs and expenses

90,870

66,054

319,988

304,395

Earnings (loss) from operations

16,430

18,747

68,518

Non-operating (expense) income, net

(8,842)

(10,666)

(40,369)

(43,161)

Earnings (loss) before income taxes

7,588

8,081

28,149

(43,288)

Income tax provision

(2,558)

(1,314)

(6,371)

(4,848)

Net earnings (loss)

5,030

6,767

21,778

(48,136)

Net (earnings) loss attributable to non-controlling interests

(1,070)

(54)

(1,156)

134

Net earnings (loss) attributable to Century Casinos, Inc. shareholders

$

3,960

$

6,713

$

20,622

$

(48,002)

Earnings (loss) per share attributable to Century Casinos, Inc. shareholders:

  Basic

$

0.13

$

0.23

$

0.70

$

(1.62)

  Diluted

$

0.13

$

0.22

$

0.66

$

(1.62)

Weighted average common shares

  Basic

29,619

29,576

29,593

29,559

  Diluted

31,581

29,990

31,388

29,559

Condensed Consolidated Balance Sheets

December 31,

December 31,

Amounts in thousands

2021

2020

Assets

Current assets

$

140,680

$

94,622

Property and equipment, net

472,302

485,248

Other assets

90,376

100,890

Total assets

$

703,358

$

680,760

Liabilities and Equity

Current liabilities

$

60,433

$

60,163

Non-current liabilities

492,568

493,614

Century Casinos, Inc. shareholders' equity

141,624

118,154

Non-controlling interests

8,733

8,829

Total liabilities and equity

$

703,358

$

680,760

CENTURY CASINOS, INC. AND SUBSIDIARIES
UNAUDITED SUPPLEMENTAL INFORMATION

Adjusted EBITDA Margins **

For the three months

For the year

ended December 31,

ended December 31,

2021

2020

2021

2020

United States

31%

29%

34%

24%

Canada

21%

31%

21%

23%

Poland

14%

(2%)

5%

1%

Corporate and Other

(2653%)

(2027%)

(1759%)

(753%)

Consolidated

23%

22%

25%

16%

Reconciliation of Adjusted EBITDA* to Net Earnings (Loss) Attributable to Century Casinos, Inc. Shareholders by Reportable Segment.

For the three months ended December 31, 2021

Amounts in thousands

United States

Canada

Poland

Corporate
and Other

Total

Net earnings (loss) attributable to Century Casinos, Inc. shareholders

$

10,146

$

859

$

1,880

$

(8,925)

$

3,960

Interest expense (income), net ⁽¹⁾

7,145

533

(136)

3,286

10,828

Income taxes

—

594

475

1,489

2,558

Depreciation and amortization

4,665

1,214

705

119

6,703

Net earnings attributable to non-controlling interests

—

130

940

—

1,070

Non-cash stock-based compensation

—

—

—

1,084

1,084

Gain on foreign currency transactions, cost recovery income and other ⁽²⁾

(836)

59

(674)

27

(1,424)

Loss on disposition of fixed assets

59

7

41

2

109

Adjusted EBITDA

$

21,179

$

3,396

$

3,231

$

(2,918)

$

24,888

(1)

Expense of $7.1 million related to the Master Lease is included in interest expense (income), net in the United States segment. Expense of $0.5 million related to the CDR land lease is included in interest expense (income), net in the Canada segment. Cash payments related to the Master Lease and CDR land lease were $8.4 million and $0.6 million, respectively, for the period presented.

(2)

Income of $0.8 million is included in the United States segment related to the sale of excess land at Mountaineer Casino, Racetrack & Resort ("Mountaineer"), net of related expenses.

CENTURY CASINOS, INC. AND SUBSIDIARIES
UNAUDITED SUPPLEMENTAL INFORMATION

Reconciliation of Adjusted EBITDA* to Net Earnings (Loss) Attributable to Century Casinos, Inc. Shareholders by Reportable Segment.

For the three months ended December 31, 2020

Amounts in thousands

United States

Canada

Poland

Corporate
and Other

Total

Net earnings (loss) attributable to Century Casinos, Inc. shareholders

$

5,437

$

6,652

$

(244)

$

(5,132)

$

6,713

Interest expense (income), net ⁽¹⁾

7,070

543

5

2,949

10,567

Income taxes (benefit)

—

1,483

(394)

225

1,314

Depreciation and amortization

4,571

1,291

845

105

6,812

Net earnings (loss) attributable to non-controlling interests

—

175

(121)

—

54

Non-cash stock-based compensation

—

—

—

(804)

(804)

(Gain) loss on foreign currency transactions and cost recovery income ⁽²⁾

—

(6,176)

(326)

83

(6,419)

Loss on disposition of fixed assets

55

13

1

—

69

Adjusted EBITDA

$

17,133

$

3,981

$

(234)

$

(2,574)

$

18,306

(1)

Expense of $7.1 million related to the Master Lease is included in interest expense (income), net in the United States segment. Expense of $0.5 million related to the CDR land lease is included in interest expense (income), net in the Canada segment. Cash payments related to the Master Lease and CDR land lease were $8.4 million and $0.6 million, respectively, for the period presented.

(2)

Income of $6.5 million is included in the Canada segment related to the gain on sale of the casino operations of Century Casino Calgary.

CENTURY CASINOS, INC. AND SUBSIDIARIES
UNAUDITED SUPPLEMENTAL INFORMATION

Reconciliation of Adjusted EBITDA* to Net Earnings (Loss) Attributable to Century Casinos, Inc. Shareholders by Reportable Segment.

For the year ended December 31, 2021

Amounts in thousands

United States

Canada

Poland

Corporate
and Other

Total

Net earnings (loss) attributable to Century Casinos, Inc. shareholders

$

49,628

$

1,124

$

440

$

(30,570)

$

20,622

Interest expense (income), net ⁽¹⁾

28,229

1,796

(477)

13,110

42,658

Income taxes

—

1,256

257

4,858

6,371

Depreciation and amortization

18,398

4,904

3,028

432

26,762

Net earnings attributable to non-controlling interests

—

932

224

—

1,156

Non-cash stock-based compensation

—

—

—

2,652

2,652

Gain on foreign currency transactions, cost recovery income and other ⁽²⁾

(836)

(545)

(887)

(418)

(2,686)

Loss (gain) on disposition of fixed assets

341

43

44

(37)

391

Adjusted EBITDA

$

95,760

$

9,510

$

2,629

$

(9,973)

$

97,926

(1)

Expense of $28.2 million related to the Master Lease is included in interest expense (income), net in the United States segment. Expense of $1.8 million related to the CDR land lease is included in interest expense (income), net in the Canada segment. Cash payments related to the Master Lease and CDR land lease were $25.3 million and $2.0 million, respectively, for the period presented.

(2)

Income of $0.8 million is included in the United States segment related to the sale of excess land at Mountaineer, net of related expenses.

CENTURY CASINOS, INC. AND SUBSIDIARIES
UNAUDITED SUPPLEMENTAL INFORMATION

Reconciliation of Adjusted EBITDA* to Net (Loss) Earnings Attributable to Century Casinos, Inc. Shareholders by Reportable Segment.

For the year ended December 31, 2020

Amounts in thousands

United States

Canada

Poland

Corporate
and Other

Total

Net (loss) earnings attributable to Century Casinos, Inc. shareholders

$

(30,571)

$

2,551

$

(1,373)

$

(18,609)

$

(48,002)

Interest expense (income), net ⁽¹⁾

28,357

2,047

27

12,667

43,098

Income taxes (benefit)

1,023

3,765

(518)

578

4,848

Depreciation and amortization

17,580

5,264

3,124

566

26,534

Net earnings (loss) attributable to non-controlling interests

—

553

(687)

—

(134)

Non-cash stock-based compensation

—

—

—

(214)

(214)

Gain on foreign currency transactions, cost recovery income and other ⁽²⁾

—

(6,015)

(233)

(6,897)

(13,145)

Impairment - intangible and tangible assets

30,746

3,375

—

1,000

35,121

Loss (gain) on disposition of fixed assets

64

(43)

4

1

26

Acquisition costs

—

—

—

266

266

Adjusted EBITDA

$

47,199

$

11,497

$

344

$

(10,642)

$

48,398

(1)

Expense of $28.4 million related to the Master Lease is included in interest expense (income), net in the United States segment. Expense of $1.5 million related to the CDR land lease is included in interest expense (income), net in the Canada segment. Cash payments related to the Master Lease and CDR land lease were $25.0 million and $1.3 million, respectively, for the period presented.

(2)

Income of $6.5 million is included in the Canada segment related to the gain on sale of the casino operations of Century Casino Calgary.

* 

The Company defines Adjusted EBITDA as net earnings (loss) attributable to Century Casinos, Inc. shareholders before interest expense (income), net, income taxes (benefit), depreciation and amortization, non-controlling interests net earnings (loss) and transactions, pre-opening expenses, acquisition costs, non-cash stock-based compensation charges, asset impairment costs, (gain) loss on disposition of fixed assets, discontinued operations, (gain) loss on foreign currency transactions, cost recovery income and other, gain on business combination and certain other one-time transactions. Expense related to the Master Lease and CDR land lease is included in the interest expense (income), net line item. 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 (loss) attributable to Century Casinos, Inc. shareholders and Adjusted EBITDA reported for each segment. Non-cash stock-based compensation expense is presented under Corporate and Other as the expense is not allocated to reportable segments when reviewed by the Company's chief operating decision makers. 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 US GAAP. Adjusted EBITDA is not considered a measure of performance recognized under US GAAP. Management believes that Adjusted EBITDA is a valuable measure of the relative performance of the Company and its properties. 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. Adjusted EBITDA is used by the Company's lending institution to gauge operating performance. The Company's computation of Adjusted EBITDA may be different from, and therefore may not be comparable to, similar measures used by other companies within the gaming industry. Please see the reconciliation of Adjusted EBITDA to net earnings (loss) attributable to Century Casinos, Inc. shareholders above.

**

The Company defines Adjusted EBITDA margin as Adjusted EBITDA divided by net operating revenue. Adjusted EBITDA margin is a non-US GAAP measure. Management uses this margin as one of several measures to evaluate the efficiency of the Company's casino operations.