Turismo
Century Casinos, Inc. Announces First Quarter 2024 Results
Compared to the three months ended March 31, 2023 :
"We anticipated a challenging first quarter due to continuing construction disruptions and the closure of three of our casinos in Poland for some or all of the quarter. The quarter was further impacted by disruptions from severe weather at the majority of our US casinos. Cash payments of $12.2 million for taxes related to the September 2023 sale and leaseback of our Canada properties and a $3.4 million one-time principal paydown of debt as well as $18.4 million in property and equipment purchases decreased our overall cash balance," Erwin Haitzmann and Peter Hoetzinger, Co-Chief Executive Officers of Century Casinos remarked. "Our positive outlook for the second half of 2024 into 2025 remains unchanged. Our increased spend on capital projects throughout our properties is expected to end over the summer. Our largest capital project (fully funded by VICI Properties Inc.), the land-based casino in Caruthersville, Missouri , is also expected to be completed by the end of the year. By 2025, all of our operations should be in great shape with no more construction disruptions and all casinos in Poland fully operational. We are also excited about the performance of The Riverview , our new hotel at Century Casino Cape Girardeau, Missouri , which has exceeded our expectations so far," Messrs. Haitzmann and Hoetzinger concluded.
– On April 4, 2024 , the Company opened its hotel in Cape Girardeau, Missouri , The Riverview . The Riverview is a 69 room, six-story building with 68,000 square feet that is adjacent to and connected with Century Casino Cape Girardeau. The project cost $30.5 million and was financed with cash on hand.
– The Company is constructing a new land-based casino with a 38 room hotel in Caruthersville, Missouri . The project continues to be on time and on budget with an estimated project cost of $51.9 million . Construction started in December 2022 with completion expected in the fourth quarter of 2024. The Company is funding this project through VICI Properties, Inc. ("VICI"). Following completion, VICI will own the real estate improvements associated with the Caruthersville project, which will become a part of the Company's triple net lease ("Master Lease") with subsidiaries of VICI.
– The Company reopened its casinos in Bielsko-Biala in February 2024 and Katowice in March 2024 following temporary closures due to licensing delays. Renovations on the new casino location in Wroclaw continue, and the Company expects to open the casino in the third quarter of 2024.
The consolidated results for the three months ended March 31, 2024 and 2023 are as follows:
Following is a summary of the changes in net operating revenue by reportable segment for the three months ended March 31, 2024 , compared to the three months ended March 31, 2023 :
Following is a summary of the changes in earnings (loss) from operations by reportable segment for the three months ended March 31, 2024 , compared to the three months ended March 31, 2023 :
Following is a summary of the changes in net (loss) earnings attributable to Century Casinos, Inc. shareholders by reportable segment for the three months ended March 31, 2024 , compared to the three months ended March 31, 2023 :
Items deducted from or added to earnings from operations to arrive at net (loss) earnings attributable to Century Casinos, Inc. shareholders include interest income, interest expense, gains (losses) on foreign currency transactions and other, income tax (benefit) expense, and non-controlling interests. Increased interest expense negatively impacted net loss attributable to Century Casinos, Inc. shareholders. Interest expense increased primarily due to additional properties added to the Master Lease and increased interest rates under the credit agreement ("Goldman Credit Agreement") with Goldman Sachs Bank USA .
Following is a summary of the changes in Adjusted EBITDAR** by reportable segment for the three months ended March 31, 2024 compared to the three months ended March 31, 2023 :
As of March 31, 2024 , the Company had $136 .5 million in cash and cash equivalents compared to $171.3 million in cash and cash equivalents at December 31, 2023 . Cash and cash equivalents decreased primarily due to tax payments related to the September 2023 sale and leaseback of our Canada properties of $12.2 million and purchases of property and equipment of $18.4 million . As of March 31, 2024 , the Company had $342.0 million in outstanding debt compared to $346.8 million in outstanding debt at December 31, 2023 . The outstanding debt as of March 31, 2024 included $339.5 million related to the term loan under the Goldman Credit Agreement and $2.5 million of bank debt related to Century Resorts Management GmbH ("CRM"). The Company also has a $654.8 million long-term financing obligation under its Master Lease.
Today the Company will post a copy of its quarterly report on Form 10-Q filed with the SEC for the quarter ended March 31, 2024 on its website at www.cnty.com/investor/financials/sec-filings/. The Company will also post its current presentation, which may be used in one or more meetings with current and potential investors from time to time, at the Company's website under www.cnty.com/investor/presentations/.
The Company will host its first quarter 2024 earnings conference call today,
Thursday, May 9, 2024 at 10:00 am EDT /
8:00 am MDT . U.S. domestic participants should dial 800-343-4136. For all international participants, please use 203-518-9843 to dial-in. The conference ID is 'Casinos'. Participants may listen to the call live at http://join.eventcastplus.com/eventcastplus/Century-Casinos-Q1-2024-Earnings-Call or obtain a recording of the call on the Company's website until
May 31, 2024 at www.cnty.com/investor/financials/sec-filings/.
* We define as net earnings (loss) attributable to Century Casinos, Inc. shareholders before interest expense (income) (including interest expense related to the Master Lease), net, income taxes (benefit), depreciation, amortization, non-controlling interests net earnings (losses) and transactions, pre-opening expenses, acquisition costs, non-cash stock-based compensation charges, asset impairment costs, loss (gain) 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. The Master Lease is accounted for as a financing obligation. As such, a portion of the periodic payment under the Master Lease is recognized as interest expense with the remainder of the payment impacting the financing obligation using the effective interest method. 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 EBITDAR reported for each segment. Not all of the aforementioned items occur in each reporting period, but have been included in the definition based on historical activity. These adjustments have no effect on the consolidated results as reported under GAAP.
Adjusted EBITDAR is used outside of our financial statements solely as a valuation metric and is not considered a measure of performance recognized under GAAP. Adjusted EBITDAR is an additional metric used by analysts in valuing gaming companies subject to triple net leases such as our Master Lease since it eliminates the effects of variability in leasing methods and capital structures. This metric is included as supplemental disclosure because (i) we believe Adjusted EBITDAR is used by gaming operator analysts and investors to determine the equity value of gaming operators and (ii) financial analysts refer to Adjusted EBITDAR when valuing our business. We believe Adjusted EBITDAR is useful for equity valuation purposes because (i) its calculation isolates the effects of financing real estate, and (ii) using a multiple of Adjusted EBITDAR to calculate enterprise value allows for an adjustment to the balance sheet to recognize estimated liabilities arising from operating leases related to real estate.
Adjusted EBITDAR should not be construed as an alternative to net earnings (loss) attributable to Century Casinos, Inc. shareholders, the most directly comparable GAAP measure, as indicators of our performance. In addition, Adjusted EBITDAR as used by us may not be defined in the same manner as other companies in our industry, and, as a result, may not be comparable to similarly titled non-GAAP financial measures of other companies. Consolidated Adjusted EBITDAR should not be viewed as a measure of overall operating performance or considered in isolation or as an alternative to net earnings (loss) attributable to Century Casinos, Inc. shareholders, because it excludes the rent expense associated with our Master Lease and several other items.
** The Company defines as Adjusted EBITDAR divided by net operating revenue. Adjusted EBITDAR margins are a non-US GAAP measure. Management uses these margins as one of several measures to evaluate the efficiency of the Company's casino operations.
Century Casinos, Inc. is a casino entertainment company. In the United States the Company operates the following operating segments: (i) in the East, the Mountaineer Casino, Resort & Races in New Cumberland, West Virginia and Rocky Gap Casino, Resort & Golf in Flintstone, Maryland ; (ii) in the Midwest, the Century Casino & Hotel in Cape Girardeau and Century Casino Caruthersville, Missouri , and Century Casino & Hotels in Cripple Creek and Central City, Colorado ; and (iii) in the West, the Nugget Casino Resort, in Reno - Sparks, Nevada . In Alberta, Canada the Company operates Century Casino & Hotel in Edmonton , the Century Casino in St. Albert , Century Mile Racetrack and Casino in Edmonton and Century Downs Racetrack and Casino in Calgary . In Poland , the Company operates seven casinos through its subsidiary Casinos Poland Ltd. The Company continues to pursue other projects in various stages of development.
Century Casinos' common stock trades on The Nasdaq Capital Market® under the symbol CNTY. For more information about Century Casinos, visit our website at www.cnty.com.
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