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

2021 Highlights*

COVID-19 Update
The COVID-19 pandemic had an adverse effect on the Company's 2020 results of operations and financial condition, and negatively impacted the Company's results of operations to a lesser extent in 2021 because the Company's United States properties were open and operating during this period.

The Company's Canada properties reopened on June 10, 2021, and its Poland casinos reopened on May 28, 2021. The Company's casinos in the United States have been open since June 2020. The Company's properties have varied their operations based on the governmental health and safety requirements in the jurisdictions in which they are located. The Company's operations currently have limited health and safety requirements related to COVID-19. The duration and ultimate impact of the COVID-19 pandemic otherwise remains uncertain.

The consolidated results for the three months and year ended December 31, 2021 and 2020 are as follows:

The Company plans to relocate its Century Casino Caruthersville casino, currently the last remaining riverboat on open water in Missouri, to a land-based casino with an attached hotel, estimated to open in early 2024, and to build a hotel that will attach onto Century Casino Cape Girardeau, estimated to open in late 2023. The Company estimates project costs of $73.0 million. In December 2021, a lawsuit was filed by the City of St. Louis to block the implementation of the omnibus bill that included the amendment to the definition of a floating facility. The land-based casino project is delayed pending a resolution of the lawsuit or a stand-alone bill amending the definition of a floating facility. The Company plans to finance the cost of these projects with cash on hand, financing, or a combination of the two.

On February 22, 2022, the Company entered into a definitive agreement to acquire 50% of Smooth Bourbon, LLC ("PropCo") and 100% of Nugget Sparks, LLC dba Nugget Casino Resort from Marnell Gaming, LLC for $195 million and to acquire a five-year option to purchase the remaining 50% of PropCo for $105 million plus 2% per annum. The Company has received a commitment letter from Goldman Sachs Bank USA for (i) $350 million in senior secured term loan financing to support the Nugget Casino Resort acquisition, refinance the Company's existing debt and for general corporate purposes, and (ii) a $30 million senior secured revolving credit facility.

"We would like to thank our team members for the enthusiasm and flexibility they have shown this year as we navigated operational restrictions and continuing changes brought about by COVID-19. Despite major restrictions at our Canada properties throughout the fourth quarter, we finished the year with strong results," Erwin Haitzmann and Peter Hoetzinger, Co-Chief Executive Officers of Century Casinos remarked. "We look forward to 2022 and seeing the increased potential of our properties as most COVID-19 restrictions have now been lifted. We are also excited about our upcoming acquisition of the Nugget Casino Resort in Reno-Sparks, Nevada and the continued expansion of our US portfolio," Messrs. Haitzmann and Hoetzinger concluded.

Reportable Segment Results*
The table below shows the Company's reporting units and operating segments that are included in each of the Company's reportable segments as of December 31, 2021:

On January 12, 2022, the Company's subsidiary Century Resorts Alberta ("CRA") entered into a definitive agreement to sell CRA's land and building in Calgary, Alberta. The sale occurred on February 10, 2022. Upon closing, CRA stopped operating Century Sports and transferred the lease agreement for the casino premises to the buyer.

The Company's net operating revenue increased by $22.5 million, or 27%, and by $84.2 million, or 28%, for the three months and year ended December 31, 2021, compared to the three months and year ended December 31, 2020. Following is a summary of the changes in net operating revenue by reportable segment for the three months and year ended December 31, 2021, compared to the three months and year ended December 31, 2020:

The Company's earnings from operations decreased by ($2.3) million, or (12%), and increased by $68.6 million, or 54051%, for the three months and year ended December 31, 2021, compared to the three months and year ended December 31, 2020. Following is a summary of the changes in earnings (loss) from operations by reportable segment for the three months and year ended December 31, 2021, compared to the three months and year ended December 31, 2020:

Net earnings (loss) attributable to Century Casinos, Inc. shareholders decreased by ($2.8) million, or (41%), and increased by $68.6 million, or 143%, for the three months and year ended December 31, 2021, compared to the three months and year ended December 31, 2020. 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, 2021, compared to the three months and year ended December 31, 2020:

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.

Adjusted EBITDA** increased by $6.6 million, or 36%, and by $49.5 million, or 102%, for the three months and year ended December 31, 2021 compared to the three months and year ended December 31, 2020. Following is a summary of the changes in Adjusted EBITDA** by reportable segment for the three months and year ended December 31, 2021 compared to the three months and year ended December 31, 2020:

Balance Sheet and Liquidity
As of December 31, 2021, the Company had $107.8 million in cash and cash equivalents and $181.5 million in outstanding debt on its balance sheet compared to $63.4 million in cash and cash equivalents and $184.6 million in outstanding debt at December 31, 2020. The outstanding debt as of December 31, 2021 included $166.6 million related to the Company's credit agreement with Macquarie Capital ("Macquarie"), $0.2 million of bank debt related to Casinos Poland, $7.0 million of bank debt related to Century Resorts Management GmbH ("CRM"), and $15.4 million related to a long-term land lease for Century Downs Racetrack and Casino ("CDR"), net of $7.7 million in deferred financing costs. The Company also has a $281.9 million long-term financing obligation under its triple net master lease ("Master Lease").

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, 2021 on its website at www.cnty.com/investor/financials/sec-filings/. The Company will also post a presentation of the 2021 results on its website at www.cnty.com/investor/presentations/.

The Company will host its fourth quarter 2021 earnings conference call today, Tuesday, March 8, at 8:00 am MST. 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 centurycasinos.adobeconnect.com/earningsrelease or obtain a recording of the call on the Company's website until March 31, 2022 at www.cnty.com/investor/financials/sec-filings/. 

About Century Casinos, Inc.:
Century Casinos, Inc. is a casino entertainment company. The Company owns and operates Century Casino & Hotels in Cripple Creek and Central City, Colorado, and in Edmonton, Alberta, Canada; the Century Casino in Cape Girardeau and Caruthersville, Missouri, and in St. Albert, Alberta, Canada; Mountaineer in New Cumberland, West Virginia; and the Century Mile Racetrack and Casino ("CMR") in Edmonton, Alberta, Canada. Through its Austrian subsidiary, CRM, the Company holds a 66.6% ownership interest in Casinos Poland Ltd., the owner and operator of eight casinos throughout Poland; and a 75% ownership interest in CDR in Calgary, Alberta, Canada. The Company has an agreement to operate two ship-based casinos. The Company also has entered into a definitive agreement to acquire the Nugget Casino Resort in Sparks, Nevada. 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.  

CENTURY CASINOS, INC. AND SUBSIDIARIES
UNAUDITED SUPPLEMENTAL INFORMATION
This release may contain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and 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 the hotel and casino projects in Missouri, our plans to acquire the Nugget Casino, future results of operations, including statements about operating margins, the impact of the current coronavirus (COVID-19) pandemic, estimates of the financial impact of COVID-19, the adequacy of cash flows from operations and available cash to meet our future liquidity needs, particularly if we cannot operate our casinos due to COVID-19 or their operations are restricted, operating efficiencies, synergies and operational performance, the prospects for and timing and costs of new projects, projects in development and other opportunities, our credit agreement with Macquarie and obligations under our Master Lease and our ability to repay our debt and other obligations, plans to enter into a new credit facility, investments in joint ventures, outcomes of legal proceedings, changes in our tax provisions or exposure to additional income tax liabilities, and plans for our casinos and our Company. 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 section entitled "Risk Factors" under Item 1A in our Annual Report on Form 10-K for the year ended December 31, 2021, and in subsequent periodic and current SEC filings we may make. 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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