8-K
CENTURY CASINOS INC /CO/ (CNTY)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): March 13, 2020
CENTURY CASINOS, INC.
(Exact Name of Registrant as specified in its charter)
| | | | | --- | --- | --- | | Delaware | 0-22900 | 84-1271317 | | (State or other jurisdiction | (Commission | (I.R.S. Employer | | of incorporation) | File Number) | Identification Number) |
| | |
| --- | --- | | 455 E. Pikes Peak Ave., Suite 210, Colorado Springs, Colorado | 80903 | | (Address of principal executive offices) | (Zip Code) | | | | | Registrant’s telephone number, including area code: | 719-527-8300 |
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
| | | | | --- | --- | --- | | Title of each class | Trading Symbol(s) | Name of each exchange on which registered | | Common Stock, $0.01 Per Share Par Value | CNTY | Nasdaq Capital Market, Inc. |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition.
On March 13, 2020, Century Casinos, Inc., a Delaware corporation (the “Company”), issued a press release reporting its financial results for the fourth quarter of 2019. A copy of the press release is being furnished as Exhibit 99.1 to this Current Report.
Item 7.01 Regulation FD Disclosure.
The Company is furnishing as Exhibit 99.2 a presentation to be used in connection with the Company’s fourth quarter 2019 earnings conference call on Friday, March 13, 2020, and for future meetings with investors, stockholders and analysts.
The information in this report and Exhibits 99.1 and 99.2 attached hereto (i) is being furnished and shall not be deemed “filed” for the purpose of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, and (ii) shall not be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.
This report (including Exhibits 99.1 and 99.2) may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on the current beliefs and expectations of the Company’s management and are subject to significant risks and uncertainties. Actual results may differ from those set forth in the forward-looking statements. Factors that could cause the Company’s actual results to differ materially from those described in the forward-looking statements can be found in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019 that has been filed with the Securities and Exchange Commission. The Company does not undertake to update the forward-looking statements to reflect the impact of circumstances or events that may arise after the date of the forward-looking statements.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
| | | | --- | --- | | Exhibit No. | Description | | 99.1 | Century Casinos, Inc. Press Release dated March 13, 2020 | | 99.2 | Century Casinos, Inc. Investor Presentation dated March 13, 2020 |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Century Casinos, Inc.
Date: March 13, 2020
By: /s/ Margaret Stapleton
Margaret Stapleton
Chief Financial Officer
Exhibit 991 Earnings Release Q4 2019
March 13, 2020
PRESS RELEASE
Century Casinos, Inc. Announces Fourth Quarter and Full Year 2019 Results
Colorado Springs, Colorado – March 13, 2020 – Century Casinos, Inc. (Nasdaq Capital Market®: CNTY) today 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.
1/13
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.
2/13
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 | 201% | $ | 49,998 | $ | 33,483 | 49% | ||
| Canada | 20,291 | 15,678 | 29% | 80,650 | 61,361 | 31% | ||||||
| Poland | 21,675 | 19,514 | 11% | 81,894 | 68,209 | 20% | ||||||
| Corporate and Other | 1,344 | 1,976 | (32%) | 5,685 | 5,885 | (3%) | ||||||
| Consolidated | $ | 67,236 | $ | 45,106 | 49% | $ | 218,227 | $ | 168,938 | 29% |
All values are in US Dollars.
3/13
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 | 354% | $ | 9,478 | $ | 5,882 | 61% | ||
| Canada | 4,000 | 3,675 | 9% | 16,115 | 14,633 | 10% | ||||||
| Poland | 1,627 | 460 | 254% | 5,915 | 145 | 3979% | ||||||
| Corporate and Other | (25,057) | (3,192) | (685%) | (36,728) | (11,201) | (228%) | ||||||
| Consolidated | $ | (14,745) | $ | 1,976 | (846%) | $ | (5,220) | $ | 9,459 | (155%) |
All values are in US Dollars.
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 | 195% | $ | 5,825 | $ | 4,373 | 33% | ||
| Canada | 948 | 2,077 | (54%) | 6,669 | 7,715 | (14%) | ||||||
| Poland | 1,352 | 179 | 655% | 3,466 | (153) | 2365% | ||||||
| Corporate and Other | (24,701) | (2,517) | (881%) | (35,115) | (8,541) | (311%) | ||||||
| Consolidated | $ | (20,140) | $ | 506 | (4080%) | $ | (19,155) | $ | 3,394 | (664%) |
All values are in US Dollars.
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.
4/13
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 | 244% | $ | 11,825 | $ | 8,061 | 47% | ||
| Canada | 5,378 | 4,991 | 8% | 21,212 | 19,522 | 9% | ||||||
| Poland | 2,484 | 1,733 | 43% | 9,392 | 4,890 | 92% | ||||||
| Corporate and Other | (3,527) | (2,505) | (41%) | (12,148) | (9,096) | (34%) | ||||||
| Consolidated | $ | 9,776 | $ | 5,801 | 69% | $ | 30,281 | $ | 23,377 | 30% |
All values are in US Dollars.
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.
5/13
CENTURY CASINOS, INC. AND SUBSIDIARIES
FINANCIAL INFORMATION – US GAAP BASIS | | | --- | | 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 |
6/13
CENTURY CASINOS, INC. AND SUBSIDIARIES
FINANCIAL INFORMATION – US GAAP BASIS
| | | | | | | --- | --- | --- | --- | --- | | 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 |
7/13
CENTURY CASINOS, INC. AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION
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% |
8/13
CENTURY CASINOS, INC. AND SUBSIDIARIES
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, 2019 | | | | | | | | | | | | Amounts in thousands | | United States | | Canada | | Poland | | Corporate and Other | | 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 States | | Canada | | Poland | | Corporate and Other | | 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 |
9/13
CENTURY CASINOS, INC. AND SUBSIDIARIES
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, 2019 | | | | | | | | | | | | Amounts in thousands | | United States | | Canada | | Poland | | Corporate and Other | | 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 States | | Canada | | Poland | | Corporate and Other | | 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 |
10/13
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.
11/13
CENTURY CASINOS, INC. AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION
** 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 items, such as acquisition and disposition costs and gain or loss. Expense related to the Company’s Master 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) and Adjusted EBITDA 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 EBITDA is not considered a measure of performance recognized under 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-GAAP measure. Management uses this margin as one of several measures to evaluate the efficiency of the Company’s casino operations.
12/13
CENTURY CASINOS, INC. AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION
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, in Calgary and St. Albert, Alberta, Canada and in Bath, England; Mountaineer Casino, Racetrack & Resort in New Cumberland, West Virginia; the Century Mile Racetrack and Casino (“CMR”) in Edmonton, Alberta, Canada; and Century Bets! Inc. (“CBS”). CBS and CMR operate the pari-mutuel off-track horse betting networks in southern and northern Alberta, respectively. Through its Austrian subsidiary, Century Resorts Management GmbH (“CRM”), the Company holds a 66.6% ownership interest in Casinos Poland Ltd., the operator of eight casinos throughout Poland; and a 75% ownership interest in Century Downs Racetrack and Casino in Calgary, Alberta, Canada. The Company operates five ship-based casinos. The Company, through CRM, also owns a 7.5% interest in, and provides consulting services to, Mendoza Central Entretenimientos S.A., a company that provides gaming-related services to Casino de Mendoza in Mendoza, Argentina. 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.
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 future results of operations, including the impact of the Acquisition on the Company’s results, the impact of the current coronavirus (COVID-19) pandemic, operating efficiencies, synergies and operational performance, the integration of the Acquired Casinos into our business, the prospects for and timing and costs of new projects, projects in development and other opportunities, our credit agreement with Macquarie Capital, debt repayment, 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, 2019 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.
13/13
Exhibit 992 Investor Presentation Q4 2019
Exhibit 99.2
CENTURY CASINOS Financial Results 2019 Century Casinos 1
Forward-Looking Statements, Business Environment and Risk Factors. This presentation 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 (the “Exchange Act”), and the Private Securities Litigation Reform Act of 1995. In addition, Century Casinos, Inc. (together with its subsidiaries, the “Company”) may make other written and oral communications from time to time that contain such statements. Forward-looking statements include statements as to industry trends and future expectations of the Company and other matters that do not relate strictly to historical facts and are based on certain assumptions by management at the time such statements are made. Forward-looking statements in this presentation include statements regarding future results of operations including the impact of the Acquisition (as defined herein) on the Company’s results, the impact of the current coronavirus (COVID-19) pandemic, operating efficiencies, synergies and operational performance, the integration of the Acquired Casinos (as defined herein) into the Company’s business, the prospects for and timing and costs of new projects, projects in development and other opportunities, the Macquarie Credit Agreement (as defined herein), debt repayment, 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. These statements are often identified by the use of words such as “may,” “will,” “expect,” “believe,” “anticipate,” “intend,” “could,” “estimate,” or “continue,” and similar expressions or variations. These statements are based on the beliefs and assumptions of the management of the Company based on information currently available to management. 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, 2019 (the “2019 Annual Report”) and our subsequent periodic and current reports filed with the SEC. We caution the reader to carefully consider such factors. Furthermore, such forward-looking statements speak only as of the date on which such statements are made. We undertake no obligation to update any forward-looking statements to reflect events or circumstances after the date of such statements.
Century Casinos 2
Notes on Presentation In this presentation the term “USD” refers to US dollars, the term “CAD” refers to Canadian dollars, the term “PLN” refers to Polish zloty and the term “GBP” refers to the British pound. Adjusted EBITDA and Adjusted EBITDA margin are non-GAAP financial measures. See Appendix A for the definition and reconciliation of Adjusted EBITDA and Adjusted EBITDA margin. Amounts presented are rounded. As such, rounding differences could occur in period-over-period changes and percentages reported throughout this presentation. The names of the Company’s subsidiaries and certain reporting units are abbreviated on certain of the following slides. See Appendix A for a list of the subsidiaries and their abbreviations. Century Casinos 3
2019 Highlights 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 $107.0 million (subject to an adjustment based on the Acquired Casinos’ working capital and cash at closing). 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 Company financed the Acquisition with $170.0 million borrowed under a credit agreement with a group of lenders led by Macquarie Capital (“Macquarie Credit Agreement”), which also replaced the Company’s credit agreement with the Bank of Montreal. Century Casinos 4
2019 Net Operating Revenue by Reportable Segment and Operating Segment (in USD) Excluding Corporate Other Reporting Unit CCB, Ships & Other 3% Canada 37% United States 23% Poland 37% CCB, Ships & Other 3% Edmonton 22% Calgary 15% Colorado 16% West Virginia 4% Missouri 3% Poland 37% Century Casinos 5
2019 Earnings (Loss) from Operations by Reportable Segment and Operating Segment (in USD) Excluding Corporate Other Reporting Unit CCB, Ships & Other -172% Canada 139% United States 82% Poland 51% CCB, Ships & Other -172% Edmonton 65% Calgary 74% Colorado 51% West Virginia 10% Missouri 21% Poland 51% Century Casinos 6
2019 Net Earnings (Loss) Attributable to Century Casinos, Inc. Shareholders by Reportable Segment and Operating Segment (in USD) Excluding Corporate Other Reporting Unit CCB, Ships & Other -435% Poland 73% United States 122% Canada 140% CCB, Ships & Other -435% Edmonton 60% Calgary 80% Colorado 91% West Virginia 9% Missouri 22% Poland 73% Century Casinos 7
2019 Adjusted EBITDA* by Reportable Segment and Operating Segment (in USD) Excluding Corporate Other Reporting Unit CCB, Ships & Other -6% Canada 52% United States 30% Poland 24% CCB, Ships & Other -6% Edmonton 26% Calgary 26% Colorado 20% West Virginia 3% Missouri 7% Poland 24% *Adjusted EBITDA is a non-GAAP financial measure. See Appendix A for the definition and reconciliation of Adjusted EBITDA. Century Casinos 8
Net Operating Revenue per Quarter (in USD) 0 10 20 30 40 50 60 70 80 Q1 30.4 33.2 36.4 40.6 45.6 Q2 37.9 35.2 37.3 39.6 52.4 Q3 33.5 34.5 41.0 43.6 52.9 Q4 31.9 36.3 39.3 45.1 67.2 2015 2016 2017 2018 2019 Century Casinos 9
Balance Sheet (Selected Information in USD) In million (except BVPS) Total Assets Total Debt Book Value per Share* Net Debt** December 31.2018 726.9 179.0 5.54 134.2 278.8 59.5 6.00 14.4 Change 161% 201% (8%) *Book Value per Share is defined as total Century Casinos, Inc. shareholders’ equity divided by outstanding common shares. **Net Debt is calculated as total long-term debt (including current portion) plus deferred financing costs minus cash and cash equivalents. Net Debt is a non-GAAP financial measure. See Appendix A. Debt as of December 31, 2019 included $170.0 million related to our Macquarie Credit Agreement, $2.0 million related to CPL, $2.0 million related to CCB and $15.0 million related to CDR’s long-term land lease. Capital leases are not included in Total Debt as of December 31, 2019 due to our adoption of Accounting Standards Update 2016-02 Leases, (Topic 842), as of January 1, 2019. Century Casinos 10
Income Statement (Selected Information in USD) In mlllons (except EPS) Net Operating Revenue (Loss) Earnings from Operations Net (Loss) Earnings Attributable to Century Casinos, Inc. Shareholders Adjusted EBITDA* Basic (Loss) Earnings per Share Diluted (Loss) Earnings per Share 2019 2018 Change 218.2 168.9 29% (5.2) 9.5 (155%) (19.2) 3.4 (664%) 30.3 23.4 30% (0.65) 0.12 (642%) (0.65) 0.11 (691%) Net (loss) earnings attributable to Century Casinos, Inc. shareholders for the year ended December 31, 2019 was impacted by the impairment of intangible and tangible assets at Century Casino Bath resulting in $16.5 million in expense, and $5.4 million in costs related to the Acquisition. *Adjusted EBITDA is a non-GAAP financial measure. See Appendix A for the definition and reconciliation of Adjusted EBITDA.. Century Casinos 11
Constant Currency Results (in USD) in millions Net Operating Revenue as reported (GAAP) Foreign currency impact vs. 2018 Net Operating Revenue constant currency (non-GAAP)* (Loss) Earnings from Operations as reported (GAAP) Foreign currency impact vs. 2018 (Loss) Earnings from Operations constant currency (non-GAAP)* Net (Loss) Earnings Attributable to Century Casinos, Inc. Shareholders as reported (GAAP) Foreign currency impact vs. 2018 Net (Loss) Earnings Attributable to Century Casinos, Inc. Shareholders constant currency (non-GAAP)* 2019 2018 Change 218.2 168.9 29% 7.2 225.4 168.9 33% (5.2) 9.5 (155%) 1.0 (4.3) 9.5 (145%) (19.2) 3.4 (664%) (19.2) 3.4 (666%) *Net Operating Revenue, (Loss) Earnings from Operations and Net (Loss) Earnings Attributable to Century Casinos, Inc. Shareholders on a constant currency basis are non-GAAP financial measures. Gains and losses on foreign currency transactions are added back to net earnings in the Company’s Adjusted EBITDA calculation. As such, there is no foreign currency impact to Adjusted EBITDA when calculating Constant Currency results. See Appendix A. Century Casinos 12
Debt and Net Debt to Adjusted EBITDA* (in USD) For the years ended December 31, 2011-2019 7x 6x 5x 4x 3x 2x 1x 0x -1x -2x -3x 2011 0.8x -1.5x 2012 0.3x -2.0x 2013 2.7x 0.5x 2014 3.0x 1.1x 2015 1.6x 0.3x 2016 2.2x 0.7x 2017 2.2x -0.7x 2018 2.5x 0.6x 2019 5.9x 4.4x Debt to Adjusted EBITDA Net Debt to Adjusted EBITDA *Debt to Adjusted EBITDA is calculated by dividing the Company’s trailing twelve-month Adjusted EBITDA by the principal amount of outstanding debt. Net Debt to Adjusted EBITDA is calculated by dividing the Company’s trailing twelve-month Adjusted EBITDA by Net Debt. Adjusted EBITDA and Net Debt are non-GAAP financial measures. See Appendix A for the definition and reconciliation of Adjusted EBITDA and Net Debt. Century Casinos 13
2019 Highlights – CANADA (Selected Information in CAD) In millions Net Operating Revenue Operating Costs and Expenses Earnings from Operations Net Earnings Attributable to Century Casinos, Inc. Shareholders Adjusted EBITDA* Adjusted EBITDA Margin* 2019 2018 Change 107.0 79.6 35% 85.6 60.6 41% 21.4 19.0 13% 11.6 7.5 54% 28.1 25.3 11% 26% 29% Highlights from operating segments within the Company’s Canada reportable segment are presented below. *Adjusted EBITDA and Adjusted EBITDA margin are non-GAAP financial measures. See Appendix A for the definition and reconciliation of Adjusted EBITDA and Adjusted EBITDA margin. Century Casinos 14
2019 Highlights – CANADA (Selected Information in CAD) EDMONTON In millions 2019 2018 Change Net Operating Revenue 64.8 39.3 65% Operating Costs and Expenses 54.7 29.8 84% Earnings from Operations Net Earnings Attributable to Century Casinos, Inc. 10.0 9.4 6% Shareholders 6.6 3.4 93% Adjusted EBITDA* 14.3 13.2 8% Adjusted EBITDA Margin* 22% 28% As of December 31, 2019, our facilities in Edmonton had 1,797 slot machines, 46 table games and 68 video lottery terminals (“VLTs”). Century Mile opened on April 1, 2019. *Adjusted EBITDA and Adjusted EBITDA margin are non-GAAP financial measures. See Appendix A for the definition and reconciliation of Adjusted EBITDA and Adjusted EBITDA margin. Century Casinos 15
2019 Highlights – CANADA (Selected Information in CAD) CALGARY In millions 2019 2018 Change Net Operating Revenue 42.2 40.3 5% Operating Costs and Expenses 30.9 30.8 — Earnings from Operations Net Earnings Attributable to Century Casinos, Inc. 11.4 9.5 19% Shareholders 5.0 4.1 22% Adjusted EBITDA* 13.8 12.1 14% Adjusted EBITDA Margin* 33% 30% As of December 31, 2019, our facilities in Calgary had 1,167 slot machines, 16 table games and 30 VLTs. *Adjusted EBITDA and Adjusted EBITDA margin are non-GAAP financial measures. See Appendix A for the definition and reconciliation of Adjusted EBITDA and Adjusted EBITDA margin. Century Casinos 16
2019 Highlights – UNITED STATES (Selected Information in USD) In mlllons Net Operating Revenue Operating Costs and Expenses Earnings from Operations Net Earnings Attributable to Century Casinos, Inc. Shareholders Adjusted EBITDA* Adjusted EBITDA Margin* 2019 2018 Change 50.0 33.5 49% 40.5 27.6 47% 9.5 5.9 61% 5.8 4.4 33% 11.8 8.1 47% 24% 24% Highlights from operating segments within the Company’s United States reportable segment are presented below. *Adjusted EBITDA and Adjusted EBITDA margin are non-GAAP financial measures. See Appendix A for the definition and reconciliation of Adjusted EBITDA and Adjusted EBITDA margin. Century Casinos 17
2019 Highlights – UNITED STATES (Selected Information in USD) COLORADO In mIlions 2019 2018 Change Net Operating Revenue 33.9 33.5 1% Operating Costs and Expenses 28.1 27.6 2% Earnings from Operations Net Earnings Attributable to Century Casinos, Inc. 5.9 5.9 — Shareholders 4.4 4.4 — Adjusted EBITDA* 8.0 8.1 (1%) Adjusted EBITDA Margin* 23% 24% As of December 31, 2019, our facilities in Colorado had 893 slot machines and 13 table games. *Adjusted EBITDA and Adjusted EBITDA margin are non-GAAP financial measures. See Appendix A for the definition and reconciliation of Adjusted EBITDA and Adjusted EBITDA margin. Century Casinos 18
2019 Highlights – UNITED STATES (Selected Information in USD) WEST VIRGINIA ln milfons 2019 Net Operating Revenue 8.7 Operating Costs and Expenses 7.5 Earnings from Operations 1.2 Net Earnings Attributable to Century Casinos, Inc. Shareholders 0.4 Adjusted EBITDA*' 1.3 Adjusted EBITDA Margin* 15% As of December 31, 2019, our facility in West Virginia had 1,140 slot machines and 32 table games. We began operating the facility in West Virginia on December 6, 2019. *Adjusted EBITDA and Adjusted EBITDA margin are non-GAAP financial measures. See Appendix A for the definition and reconciliation of Adjusted EBITDA and Adjusted EBITDA margin. Century Casinos 19
2019 Highlights – UNITED STATES (Selected Information in USD) MISSOURI ln milfons 2019 Net Operating Revenue 7.4 Operating Costs and Expenses 4.9 Earnings from Operations 2.5 Net Earnings Attributable to Century Casinos, Inc. Shareholders 1.0 Adjusted EBITDA*' 2.6 Adjusted EBITDA Margin* 35% As of December 31, 2019, our facilities in Missouri had 1,355 slot machines and 33 table games. We began operating the facilities in Missouri on December 6, 2019. *Adjusted EBITDA and Adjusted EBITDA margin are non-GAAP financial measures. See Appendix A for the definition and reconciliation of Adjusted EBITDA and Adjusted EBITDA margin. Century Casinos 20
2019 Highlights – POLAND (Selected Information in PLN) In mlllons Net Operating Revenue Operating Costs and Expenses Earnings from Operations Net Earnings (Loss) Attributable to Century Casinos, Inc. Shareholders Adjusted EBITDA* Adjusted EBITDA Margin* 2019 2018 Change 314.3 246.7 27% 289.3 246.2 18% 24.9 0.4 5918% 12.8 (0.8) 1656% 36.0 17.6 105% 11% 7% As of December 31, 2019, our facilities in Poland had 523 slot machines and 118 table games at eight locations. *Adjusted EBITDA and Adjusted EBITDA margin are non-GAAP financial measures. See Appendix A for the definition and reconciliation of Adjusted EBITDA and Adjusted EBITDA margin. Century Casinos 21
2019 Highlights – CORPORATE AND OTHER (Selected Information in USD) In mlllons Net Operating Revenue Operating Costs and Expenses Loss from Operations Net Loss Attributable to Century Casinos, Inc. Shareholders Adjusted EBITDA* Adjusted EBITDA Margin* 2019 2018 Change 5.7 5.9 (3%) 42.4 17.1 148% (36.7) (11.2) (228%) (35.1) (8.5) (311%) (12.1) (9.1) (34%) N/A N/A The Corporate and Other reportable segment includes Cruise Ships & Other, Century Casino Bath and Corporate Other reporting units. As of December 31, 2019, the properties in this segment had 145 slot machines and 19 table games. In December 2019, the intangible and tangible assets at Century Casinos Bath were impaired due to historical and forecast losses at that property. As a result, $16.5 million was impaired during the year ended December 31, 2019. Expenses incurred by Corporate Other consist primarily of legal and accounting fees, corporate travel expenses, corporate payroll, amortization of stock-based compensation and other expenses not directly related to any of our individual properties. During 2019, Corporate Other had expenses of $5.4 million related to the Acquisition. *Adjusted EBITDA and Adjusted EBITDA margin are non-GAAP financial measures. See Appendix A for the definition and reconciliation of Adjusted EBITDA and Adjusted EBITDA margin. Century Casinos 22
2019 Highlights – ADDITIONAL PROJECTS UNDER DEVELOPMENT Bermuda In August 2017, the Company announced that, together with Hamilton Properties Limited, it had submitted a casino license application to the Bermudan government for a casino at the Hamilton Princess Hotel & Beach Club in Hamilton, Bermuda. The Company’s subsidiary, CRM, entered into a long-term management agreement with Hamilton Properties Limited pursuant to which the Company will assist with the license application and manage the operations of the casino for which it will receive a management fee, should the license be awarded. In September 2017, the Bermuda Casino Gaming Commission granted a provisional casino gaming license, which is subject to certain conditions and approvals including the adoption of certain rules and regulations by the Bermudan government. The Parliament of Bermuda has not yet adopted these rules and regulations. Century Casinos 23
Appendix A – ABBREVIATIONS OF CENTURY CASINOS, INC. SUBSIDIARIES AND CERTAIN OPERATING SEGMENTS Reportable Segment Operating Segment Reporting Unit Abbreviation United States Colorado Century Casino & Hotel – Central City CTL Century Casino & Hotel – Cripple Creek CRC West Virginia Mountaineer Casino, Racetrack & Resort MTR Missouri Century Casino Cape Girardeau CCG Century Casino Caruthersville CCV Canada Edmonton Century Casino & Hotel – Edmonton CRA Century Casino St. Albert CSA Century Mile Racetrack and Casino CMR Calgary Century Casino Calgary CAL Century Downs Racetrack and Casino CDR Century Bets! CBS Poland Poland Casinos Poland CPL Corporate and Other Corporate and Other Cruise Ships & Other Ships & Other Century Casino Bath CCB Corporate Other Additionally defined in this presentation is Century Resorts Management GmbH “CRM”, a subsidiary of Century Casinos, Inc. Century Casinos 24
Appendix A – NON-GAAP FINANCIAL MEASURES The Company supplements its consolidated financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) by using the following non-GAAP financial measures, which management believes are useful in properly understanding the Company’s short-term and long-term financial trends. Management uses these non-GAAP financial measures to forecast and evaluate the operational performance of the Company as well as to compare results of current periods to prior periods on a consolidated basis. Adjusted EBITDA Adjusted EBITDA margin Constant currency results Net Debt Management believes presenting the non-GAAP financial measures used in this presentation provides investors greater transparency to the information used by management for financial and operational decision-making and allows investors to see the Company’s results “through the eyes” of management. Management also believes providing this information better enables our investors to understand the Company’s operating performance and evaluate the methodology used by management to evaluate and measure such performance. The adjustments made to GAAP financial measures result from facts and circumstances that vary in frequency and impact on the Company’s results of operations. The following is an explanation of each of the adjustments that management excludes in calculating its non-GAAP financial measures. Century Casinos 25
Appendix A – NON-GAAP FINANCIAL MEASURES 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 items, such as acquisition and disposition costs and gain or loss. Expenses related to the Company’s Master Lease are 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. 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 EBITDA is not considered a measure of performance recognized under 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 below. 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. Century Casinos 26
Appendix A – NON-GAAP FINANCIAL MEASURES 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, earnings (loss) from operations and net earnings (loss) attributable to Century Casinos, Inc. shareholders. Constant currency results are calculated by dividing the current 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 year to date and comparing them to actual U.S. dollar results for the prior 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. Constant currency information is not a measure of financial performance under GAAP and should not be considered a substitute for net operating revenue, earnings (loss) from operations or net earnings (loss) attributable to Century Casinos, Inc. shareholders as determined in accordance with GAAP. The Company defines Net Debt as total long-term debt (including current portion) plus deferred financing costs minus cash and cash equivalents. Net Debt is not considered a liquidity measure recognized under GAAP. Management believes that Net Debt is a valuable measure of our overall financial situation. Net Debt provides investors with an indication of our ability to pay off all of our long-term debt if it became due simultaneously. Century Casinos 27
Appendix A – NON-GAAP FINANCIAL MEASURES Reconciliation of Adjusted EBITDA (in thousands) – UNITED STATES For the year ended December 31, 2019 in USD Colorado West Virginia Missouri Total United States Net Operating Revenue $ 33,940 $ 8,688 $ 7,370 $ 49,998 Net earnings attributable to Century Casinos, Inc. shareholders 4,360 439 1,026 5,825 Interest expense (income), net — 566 1,069 1,635 Income taxes 1,503 155 360 2,018 Depreciation and amortization 2,071 114 145 2,330 Loss on disposition of fixed assets 17 — — 17 Adjusted EBITDA $ 7,951 $ 1,274 $ 2,600 $ 11,825 Adjusted EBITDA Margin 23% 15% 35% 24% For the year ended December 31, 2018 Total United in USD Colorado West Virginia Missouri States Net Operating Revenue $ 33,483 $ — $ — $ 33,483 Net earnings attributable to Century Casinos, Inc. shareholders 4,373 — — 4,373 Interest expense (income), net 1 — — 1 Income taxes 1,508 — — 1,508 Depreciation and amortization 2,178 — — 2,178 Loss on disposition of fixed assets 1 — — 1 Adjusted EBITDA $ 8,061 $— $— $ 8,061 24% N/A N/A 24% Adjusted EBITDA Margin Century Casinos 28
Appendix A – NON-GAAP FINANCIAL MEASURES Reconciliation of Adjusted EBITDA (in thousands) – CANADA For the year ended December 31, 2019 in CAD Edmonton Calgary Total Canada Net Operating Revenue $ 64,776 $ 42,232 $ 107,008 Net earnings attributable to Century Casinos, Inc. shareholders 6,607 5,011 11,618 Interest expense (income), net 4,070 2,981 7,051 Income taxes 2,120 2,222 4,342 Depreciation and amortization 3,526 2,493 6,019 Non-controlling interests — 1,718 1,718 Gain on foreign currency transactions, cost recovery income and other (2,762) (582) (3,344) Loss on disposition of fixed assets 27 — 27 Pre-opening expenses 713 — 713 Adjusted EBITDA $ 14,301 $ 13,843 $ 28,144 22% 33% 26% Adjusted EBITDA Margin Century Casinos 29
Appendix A – NON-GAAP FINANCIAL MEASURES Reconciliation of Adjusted EBITDA (in thousands) – CANADA continued in CAD Net Operating Revenue Net earnings attributable to Century Casinos, Inc. shareholders Interest expense (income), net Income taxes Depreciation and amortization Non-controlling interests Loss on foreign currency transactions, cost recovery income and other Loss on disposition of fixed assets Adjusted EBITDA Adjusted EBITDA Margin For the year ended December 31, 2018 Edmonton Calgary Total Canada $ 39,272 $ 40,302 $ 79,574 3,423 4,103 7,526 2,268 2,785 5,053 1,655 1,625 3,280 1,606 2,553 4,159 — 936 936 2,088 92 2,180 11 2 13 $ 11,051 $ 12,096 $ 23,147 28% 30% 29% Century Casinos 30
Appendix A – NON-GAAP FINANCIAL MEASURES Reconciliation of Adjusted EBITDA (in thousands) – POLAND in PLN Net Operating Revenue Net earnings (loss) attributable to Century Casinos, Inc shareholders Interest expense (income), net Income taxes Depreciation and amortization Non-controlling interests Gain on foreign currency transactions and other Loss on disposition of fixed assets Pre-opening expenses Adjusted EBITDA Adjusted EBITDA Margin For the year ended December 31, 2019 PLN 314,264 12,838 756 6,192 11,761 6,416 (3,519) 1,581 PLN 36,025 2018 PLN 246,662 (825) 749 2,135 11,121 (409) (1,235) 3,884 2,162 PLN 17,582 11% 7% Century Casinos 31
Appendix A – NON-GAAP FINANCIAL MEASURES Reconciliation of Adjusted EBITDA (in thousands) – CORPORATE AND OTHER in USD Net Operating Revenue Net loss attributable to Century Casinos, Inc. shareholders Interest expense (income), net Income tax benefit Depreciation and amortization Non-controlling interests Non-cash stock-based compensation Loss on foreign currency transactions and other Loss on disposition of fixed assets Acquisition costs Pre-opening expenses Adjusted EBITDA Adjusted EBITDA Margin For the year ended December 31, 2019 2018 $ 5,685 $ 5,885 (35,115) (8,541) 1,085 12 (2,739) (2,722) 910 945 (12) (35) 1,303 868 16,709 2 345 25 5,366 — — 350 $ (12,148) $ ( 9,096) N/A N/A Century Casinos 32
Appendix A – NON-GAAP FINANCIAL MEASURES Reconciliation of Net Debt (in thousands) Amounts in thousands Total long-term debt, including current portion Deferred financing costs Total principal Less: Cash and cash equivalents Net Debt December 31, 2019 $ 178.963 9,998 $ 188.961 $ 54.754 $ 134,207 December 31, 2018 $ 59,523 496 $ 60.019 $ 45,575 $ 14,444 Century Casunos 33