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): August 5, 2021
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 August 6, 2021, Century Casinos, Inc., a Delaware corporation (the “Company”), issued a press release reporting its financial results for the second quarter of 2021. 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 second quarter of 2021 earnings conference call on Friday, August 6, 2021, 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, 2020, that have 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 August 6, 2021 |
| 99.2 | Century Casinos, Inc. Investor Presentation dated August 6, 2021 |
| 104 | Cover Page Interactive Data File, formatted in Inline XBRL |
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: August 5, 2021
By: /s/ Margaret Stapleton
Margaret Stapleton
Chief Financial Officer
Exhibit 991 Earnings Release Q2 2021
August 6, 2021
PRESS RELEASE
Century Casinos, Inc. Announces Second Quarter 2021 Results
Colorado Springs, Colorado – August 6, 2021 – Century Casinos, Inc. (Nasdaq Capital Market®: CNTY) today announced its financial results for the three and six months ended June 30, 2021.
Second Quarter 2021 Highlights* | · | Net operating revenue was $92.2 million, an increase of 155% from the three months ended June 30, 2020. | | --- | --- | | · | Earnings from operations was $18.1 million, an increase of 957% from the three months ended June 30, 2020. | | --- | --- | | · | Net earnings attributable to Century Casinos, Inc. shareholders was $6.9 million, a change of 154% from the three months ended June 30, 2020. | | --- | --- | | · | Adjusted EBITDA** was $25.2 million, an increase of 1532% from the three months ended June 30, 2020. | | --- | --- | | · | Basic and diluted earnings per share were $0.23 and $0.22, respectively. | | --- | --- | | · | Book value per share*** at June 30, 2021 was $4.31. | | --- | --- |
COVID-19 Update
In late 2019, an outbreak of COVID-19 was identified in China and has since spread throughout much of the world. The COVID-19 pandemic had an adverse effect on the Company’s 2020 results of operations and financial condition, and impacted the Company’s results of operations to a lesser extent in the first half of 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 but have been required to vary their operations based on the governmental health and safety requirements in the jurisdictions in which they are located. The duration and ultimate impact of the COVID-19 pandemic otherwise remains uncertain.
* 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.
The consolidated results for the three and six months ended June 30, 2021 and 2020 are as follows:
| | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | For the three months | | | | | | For the six months | | | | | | | Amounts in thousands, except per share data | ended June 30, | | | | | | ended June 30, | | | | | | | Consolidated Results: | | | 2021 | | 2020 | % Change | | | 2021 | | 2020 | % Change | | Net Operating Revenue | | $ | 92,185 | $ | 36,103 | 155% | | $ | 164,599 | $ | 123,760 | 33% | | Earnings (Loss) from Operations | | | 18,112 | | (2,114) | 957% | | | 26,361 | | (33,887) | 178% | | Net Earnings (Loss) Attributable to Century Casinos, Inc. Shareholders | | $ | 6,855 | $ | (12,607) | 154% | | $ | 5,436 | $ | (58,463) | 109% | | | | | | | | | | | | | | | | Adjusted EBITDA** | | $ | 25,238 | $ | (1,762) | 1532% | | $ | 39,983 | $ | 7,822 | 411% | | Earnings (Loss) Per Share Attributable to Century Casinos, Inc. Shareholders: | | | | | | | | | | | | | | Basic | | $ | 0.23 | $ | (0.43) | 154% | | $ | 0.18 | $ | (1.98) | 109% | | Diluted | | $ | 0.22 | $ | (0.43) | 151% | | $ | 0.18 | $ | (1.98) | 109% | | | | | | | | | | | | | | |
“With all of our properties now open, we continue to show strong results and momentum. In the second quarter, we achieved our highest quarterly Adjusted EBITDA** in the Company’s history and a consolidated Adjusted EBITDA margin** of 27.4%,” Erwin Haitzmann and Peter Hoetzinger, Co-Chief Executive Officers of Century Casinos remarked. “We continue to have a strong balance sheet and no substantial debt maturities before 2026,” 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 June 30, 2021:
| | | | | --- | --- | --- | | 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 | | | | Century Bets! Inc. | | Poland | Poland | Casinos Poland | | Corporate and Other | Corporate and Other | Cruise Ships & Other | | | | Corporate Other |
* 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.
2/11
The Company’s net operating revenue increased by $56.1 million, or 155%, and by $40.8 million, or 33%, for the three and six months ended June 30, 2021, compared to the three and six months ended June 30, 2020. Following is a summary of the changes in net operating revenue by reportable segment for the three and six months ended June 30, 2021, compared to the three and six months ended June 30, 2020:
| | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | Net Operating Revenue | | | | | | | | | | | | | | | | For the three months | | | | | | | For the six months | | | | | | | | | ended June 30, | | | | | $ | % | ended June 30, | | | | | $ | % | | Amounts in thousands | 2021 | | 2020 | | | Change | Change | 2021 | | 2020 | | | Change | Change | | United States | $ | 76,700 | $ | 23,832 | $ | 52,868 | 222% | $ | 141,072 | $ | 77,262 | $ | 63,810 | 83% | | Canada | | 6,658 | | 4,719 | | 1,939 | 41% | | 8,666 | | 20,902 | | (12,236) | (59%) | | Poland | | 8,689 | | 7,390 | | 1,299 | 18% | | 14,599 | | 24,453 | | (9,854) | (40%) | | Corporate and Other | | 138 | | 162 | | (24) | (15%) | | 262 | | 1,143 | | (881) | (77%) | | Consolidated | $ | 92,185 | $ | 36,103 | $ | 56,082 | 155% | $ | 164,599 | $ | 123,760 | $ | 40,839 | 33% | | | | | | | | | | | | | | | | |
The Company’s earnings (loss) from operations increased by $20.2 million, or 957%, and by $60.2 million, or 178%, for the three and six months ended June 30, 2021, compared to the three and six months ended June 30, 2020. Following is a summary of the changes in earnings (loss) from operations by reportable segment for the three and six months ended June 30, 2021, compared to the three and six months ended June 30, 2020:
| | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | Earnings (Loss) from Operations | | | | | | | | | | | | | | | | For the three months | | | | | | | For the six months | | | | | | | | | ended June 30, | | | | | $ | % | ended June 30, | | | | | $ | % | | Amounts in thousands | 2021 | | 2020 | | | Change | Change | 2021 | | 2020 | | | Change | Change | | United States | $ | 23,529 | $ | (3,317) | $ | 26,846 | 809% | $ | 41,058 | $ | (28,401) | $ | 69,459 | 245% | | Canada | | (612) | | (1,229) | | 617 | 50% | | (4,436) | | (2,917) | | (1,519) | (52%) | | Poland | | (1,810) | | (2,201) | | 391 | 18% | | (5,170) | | (1,910) | | (3,260) | (171%) | | Corporate and Other | | (2,995) | | 4,633 | | (7,628) | (165%) | | (5,091) | | (659) | | (4,432) | (673%) | | Consolidated | $ | 18,112 | $ | (2,114) | $ | 20,226 | 957% | $ | 26,361 | $ | (33,887) | $ | 60,248 | 178% | | | | | | | | | | | | | | | | |
Net earnings (loss) attributable to Century Casinos, Inc. shareholders increased by $19.5 million, or 154%, and by $63.9 million, or 109%, for the three and six months ended June 30, 2021, compared to the three and six months ended June 30, 2020. Following is a summary of the changes in net earnings (loss) attributable to Century Casinos, Inc. shareholders by reportable segment for the three and six months ended June 30, 2021, compared to the three and six months ended June 30, 2020:
| | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | Net Earnings (Loss) Attributable to Century Casinos, Inc. Shareholders | | | | | | | | | | | | | | | | For the three months | | | | | | | For the six months | | | | | | | | | ended June 30, | | | | | $ | % | ended June 30, | | | | | $ | % | | Amounts in thousands | 2021 | | 2020 | | | Change | Change | 2021 | | 2020 | | | Change | Change | | United States | $ | 16,502 | $ | (10,271) | $ | 26,773 | 261% | $ | 27,096 | $ | (43,659) | $ | 70,755 | 162% | | Canada | | (1,525) | | (1,781) | | 256 | 14% | | (5,040) | | (5,987) | | 947 | 16% | | Poland | | (1,038) | | (1,246) | | 208 | 17% | | (2,873) | | (1,218) | | (1,655) | (136%) | | Corporate and Other | | (7,084) | | 691 | | (7,775) | (1125%) | | (13,747) | | (7,599) | | (6,148) | (81%) | | Consolidated | $ | 6,855 | $ | (12,607) | $ | 19,462 | 154% | $ | 5,436 | $ | (58,463) | $ | 63,899 | 109% | | | | | | | | | | | | | | | | |
* 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.
3/11
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 $27.0 million, or 1532%, and by $32.2 million, or 411%, for the three and six months ended June 30, 2021 compared to the three and six months ended June 30, 2020. Following is a summary of the changes in Adjusted EBITDA** by reportable segment for the three and six months ended June 30, 2021 compared to the three and six months ended June 30, 2020:
| | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | Adjusted EBITDA** | | | | | | | | | | | | | | | | For the three months | | | | | | | For the six months | | | | | | | | | ended June 30, | | | | | $ | % | ended June 30, | | | | | $ | % | | Amounts in thousands | 2021 | | 2020 | | | Change | Change | 2021 | | 2020 | | | Change | Change | | United States | $ | 28,247 | $ | 2,086 | $ | 26,161 | 1254% | $ | 50,376 | $ | 10,850 | $ | 39,526 | 364% | | Canada | | 639 | | (1) | | 640 | 64000% | | (1,850) | | 3,025 | | (4,875) | (161%) | | Poland | | (1,042) | | (1,466) | | 424 | 29% | | (3,608) | | (407) | | (3,201) | (787%) | | Corporate and Other | | (2,606) | | (2,381) | | (225) | (9%) | | (4,935) | | (5,646) | | 711 | 13% | | Consolidated | $ | 25,238 | $ | (1,762) | $ | 27,000 | 1532% | $ | 39,983 | $ | 7,822 | $ | 32,161 | 411% | | | | | | | | | | | | | | | | |
Balance Sheet and Liquidity
As of June 30, 2021, the Company had $80.2 million in cash and cash equivalents and $183.9 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 June 30, 2021 included $167.5 million related to the Company’s credit agreement with Macquarie Capital (“Macquarie”), $0.8 million of bank debt related to Casinos Poland, $8.4 million of bank debt related to Century Resorts Management GmbH (“CRM”), and $15.7 million related to a long-term land lease for Century Downs Racetrack and Casino (“CDR”), net of $8.5 million in deferred financing costs. The Company also has a $280.1 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 quarterly report on Form 10-Q filed with the SEC for the quarter ended June 30, 2021 on its website at www.cnty.com/investor/financials/sec-filings/. The Company will also post a presentation of the second quarter results on its website at www.cnty.com/investor/presentations/.
The Company will host its second quarter 2021 earnings conference call today, Friday, August 6, 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 centurycasinos.adobeconnect.com/earningsrelease or obtain a recording of the call on the Company’s website until August 31, 2021 at www.cnty.com/investor/financials/sec-filings/.
* 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.
4/11
CENTURY CASINOS, INC. AND SUBSIDIARIES
UNAUDITED FINANCIAL INFORMATION – US GAAP BASIS | | | --- | | Condensed Consolidated Statements of Earnings (Loss) |
| | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | For the three months | | | | | For the six months | | | | | | | ended June 30, | | | | | ended June 30, | | | | | | Amounts in thousands, except for per share information | | 2021 | | 2020 | | | 2021 | | 2020 | | | Operating revenue: | | | | | | | | | | | | Net operating revenue | | $ | 92,185 | $ | 36,103 | | $ | 164,599 | $ | 123,760 | | Operating costs and expenses: | | | | | | | | | | | | Total operating costs and expenses | | | 74,073 | | 38,217 | | | 138,238 | | 157,647 | | Earnings (loss) from operations | | | 18,112 | | (2,114) | | | 26,361 | | (33,887) | | Non-operating (expense) income, net | | | (10,720) | | (10,501) | | | (20,773) | | (21,865) | | Earnings (loss) before income taxes | | | 7,392 | | (12,615) | | | 5,588 | | (55,752) | | Income tax provision | | | (1,120) | | (582) | | | (1,219) | | (3,106) | | Net earnings (loss) | | | 6,272 | | (13,197) | | | 4,369 | | (58,858) | | Net loss attributable to non-controlling interests | | | 583 | | 590 | | | 1,067 | | 395 | | Net earnings (loss) attributable to Century Casinos, Inc. shareholders | | $ | 6,855 | $ | (12,607) | | $ | 5,436 | $ | (58,463) | | | | | | | | | | | | | | Earnings (loss) per share attributable to Century Casinos, Inc. shareholders: | | | | | | | | | | | | Basic | | $ | 0.23 | $ | (0.43) | | $ | 0.18 | $ | (1.98) | | Diluted | | $ | 0.22 | $ | (0.43) | | $ | 0.18 | $ | (1.98) | | | | | | | | | | | | | | Weighted average common shares | | | | | | | | | | | | Basic | | | 29,579 | | 29,576 | | | 29,578 | | 29,541 | | Diluted | | | 30,935 | | 29,576 | | | 30,708 | | 29,541 | | | | | | | | | | | | |
| | | | | | | --- | --- | --- | --- | --- | | Condensed Consolidated Balance Sheets | | | | | | | June 30, | | December 31, | | | Amounts in thousands | 2021 | | 2020 | | | Assets | | | | | | Current assets | $ | 110,001 | $ | 94,622 | | Property and equipment, net | | 480,503 | | 485,248 | | Other assets | | 98,294 | | 100,890 | | Total assets | $ | 688,798 | $ | 680,760 | | | | | | | | Liabilities and Equity | | | | | | Current liabilities | $ | 56,266 | $ | 60,163 | | Non-current liabilities | | 497,911 | | 493,614 | | Century Casinos, Inc. shareholders' equity | | 127,514 | | 118,154 | | Non-controlling interests | | 7,107 | | 8,829 | | Total liabilities and equity | $ | 688,798 | $ | 680,760 |
5/11
CENTURY CASINOS, INC. AND SUBSIDIARIES
UNAUDITED SUPPLEMENTAL INFORMATION
Adjusted EBITDA Margins **
| | | | | | | --- | --- | --- | --- | --- | | | For the three months | | For the six months | | | | ended June 30, | | ended June 30, | | | | 2021 | 2020 | 2021 | 2020 | | United States | 37% | 9% | 36% | 14% | | Canada | 10% | — | (21%) | 15% | | Poland | (12%) | (20%) | (25%) | (2%) | | Corporate and Other | (1888%) | (1470%) | (1884%) | (494%) | | Consolidated | 27% | (5%) | 24% | 6% | | | | | | |
Reconciliation of Adjusted EBITDA* to Net Earnings (Loss) Attributable to Century Casinos, Inc. Shareholders by Reportable Segment.
| | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | For the three months ended June 30, 2021 | | | | | | | | | | | | Amounts in thousands | | | United States | | Canada | | Poland | | Corporate and Other | | Total | | Net earnings (loss) attributable to Century Casinos, Inc. shareholders | | $ | 16,502 | $ | (1,525) | $ | (1,038) | $ | (7,084) | $ | 6,855 | | Interest expense (income), net (1) | | | 7,027 | | 396 | | 11 | | 3,253 | | 10,687 | | Income taxes (benefit) | | | — | | 572 | | (283) | | 831 | | 1,120 | | Depreciation and amortization | | | 4,509 | | 1,251 | | 768 | | 105 | | 6,633 | | Net loss attributable to non-controlling interests | | | — | | (65) | | (518) | | — | | (583) | | Non-cash stock-based compensation | | | — | | — | | — | | 323 | | 323 | | Loss on foreign currency transactions, cost recovery income and other | | | — | | 10 | | 18 | | 5 | | 33 | | Loss (gain) on disposition of fixed assets | | | 209 | | — | | — | | (39) | | 170 | | Adjusted EBITDA | | $ | 28,247 | $ | 639 | $ | (1,042) | $ | (2,606) | $ | 25,238 | | | | | | | | | | | | | | | (1) | Expense of $7.0 million related to the Master Lease is included in interest expense (income), net in the United States segment. Expense of $0.4 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 $6.3 million and $0.6 million, respectively, for the period presented. | | --- | --- |
6/11
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 three months ended June 30, 2020 | | | | | | | | | | | | Amounts in thousands | | | United States | | Canada | | Poland | | Corporate and Other | | Total | | Net (loss) earnings attributable to Century Casinos, Inc. shareholders | | $ | (10,271) | $ | (1,781) | $ | (1,246) | $ | 691 | $ | (12,607) | | Interest expense (income), net (1) | | | 6,954 | | 435 | | (14) | | 3,204 | | 10,579 | | Income (benefit) taxes | | | — | | (44) | | (292) | | 918 | | 582 | | Depreciation and amortization | | | 4,246 | | 1,289 | | 735 | | 135 | | 6,405 | | Net earnings (loss) attributable to non-controlling interests | | | — | | 34 | | (624) | | — | | (590) | | Non-cash stock-based compensation | | | — | | — | | — | | 249 | | 249 | | Loss (gain) on foreign currency transactions and cost recovery income | | | — | | 135 | | (25) | | (7,631) | | (7,521) | | Impairment - intangible and tangible assets (2) | | | 1,157 | | — | | — | | — | | 1,157 | | Gain on disposition of fixed assets | | | — | | (69) | | — | | — | | (69) | | Acquisition costs | | | — | | — | | — | | 53 | | 53 | | Adjusted EBITDA | | $ | 2,086 | $ | (1) | $ | (1,466) | $ | (2,381) | $ | (1,762) | | | | | | | | | | | | | | | (1) | Expense of $7.0 million related to the Master Lease is included in interest expense (income), net in the United States segment. Expense of $0.4 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 $4.2 million and $0.4 million, respectively, for the period presented. | | --- | --- | | (2) | Expense of $1.2 million is included in the United States segment related to the impairment of goodwill and intangible assets. | | --- | --- |
7/11
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 six months ended June 30, 2021 | | | | | | | | | | | | Amounts in thousands | | | United States | | Canada | | Poland | | Corporate and Other | | Total | | Net earnings (loss) attributable to Century Casinos, Inc. shareholders | | $ | 27,096 | $ | (5,040) | $ | (2,873) | $ | (13,747) | $ | 5,436 | | Interest expense (income), net (1) | | | 13,962 | | 703 | | 15 | | 6,530 | | 21,210 | | Income taxes (benefit) | | | — | | 163 | | (889) | | 1,945 | | 1,219 | | Depreciation and amortization | | | 9,036 | | 2,473 | | 1,562 | | 205 | | 13,276 | | Net earnings (loss) attributable to non-controlling interests | | | — | | 367 | | (1,434) | | — | | (1,067) | | Non-cash stock-based compensation | | | — | | — | | — | | 582 | | 582 | | (Gain) loss on foreign currency transactions, cost recovery income and other | | | — | | (548) | | 11 | | (411) | | (948) | | Loss (gain) on disposition of fixed assets | | | 282 | | 32 | | — | | (39) | | 275 | | Adjusted EBITDA | | $ | 50,376 | $ | (1,850) | $ | (3,608) | $ | (4,935) | $ | 39,983 | | | | | | | | | | | | | | | (1) | Expense of $14.0 million related to the Master Lease is included in interest expense (income), net in the United States segment. Expense of $0.7 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 $10.5 million and $0.9 million, respectively, for the period presented. | | --- | --- |
8/11
CENTURY CASINOS, INC. AND SUBSIDIARIES
UNAUDITED SUPPLEMENTAL INFORMATION
Reconciliation of Adjusted EBITDA* to Net Loss Attributable to Century Casinos, Inc. Shareholders by Reportable Segment.
| | ||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | For the six months ended June 30, 2020 | |||||||||||||
| Amounts in thousands | United States | Canada | Poland | Corporate and Other | Total | |||||||||
| Net loss attributable to Century Casinos, Inc. shareholders | $ | (43,659) | $ | (5,987) | $ | (1,218) | $ | (7,599) | $ | (58,463) | ||||
| Interest expense (income), net (1) | 14,235 | 979 | 17 | 6,713 | 21,944 | |||||||||
| Income taxes (benefit) | 1,023 | 1,813 | (247) | 517 | 3,106 | |||||||||
| Depreciation and amortization | 8,505 | 2,628 | 1,501 | 265 | 12,899 | |||||||||
| Net earnings (loss) attributable to non-controlling interests | — | 214 | (609) | — | (395) | |||||||||
| Non-cash stock-based compensation | — | — | — | 236 | 236 | |||||||||
| Loss (gain) on foreign currency transactions and cost recovery income | — | 72 | 147 | (7,046) | (6,827) | |||||||||
| Impairment - intangible and tangible assets (2) | 30,746 | 3,375 | — | 1,000 | 35,121 | |||||||||
| (Gain) loss on disposition of fixed assets | — | (69) | 2 | 2 | (65) | |||||||||
| Acquisition costs | — | — | — | 266 | 266 | |||||||||
| Adjusted EBITDA | $ | 10,850 | $ | 3,025 | $ | (407) | $ | (5,646) | $ | 7,822 | ||||
| | (1) | Expense of $14.2 million related to the Master Lease is included in interest expense (income), net in the United States segment. Expense of $0.9 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 $10.4 million and $0.9 million, respectively, for the period presented. | ||||||||||||
| --- | --- | (2) | Expense of $30.7 million and $3.4 million is included in the United States and Canada segments, respectively, related to the impairment of goodwill and intangible assets. Expense of $1.0 million is included in the Corporate and Other segment related to the impairment of the Company’s investment in Mendoza Central Entretenimientos S.A. | |||||||||||
| --- | --- |
9/11
CENTURY CASINOS, INC. AND SUBSIDIARIES
UNAUDITED 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 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.
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 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, 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 Century Downs Racetrack and Casino in Calgary, Alberta, Canada. The Company has an agreement to operate two 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.
10/11
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 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, 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, 2020, 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.
11/11
Exhibit 992 Investor Presentation Q2 2021
Exhibit 99.2
CENTURY CASINOS, INC. Financial Results Q2 2021 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”, “we”, “us”, “our”) 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 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, the credit agreement with Macquarie (as defined herein) and obligations under our Master Lease (as defined herein) and the ability to repay debt and other obligations, 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, 2020 (the “2020 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 CASIONO 2
Notes on Presentation In this presentation the term “USD” refers to US dollars, the term “CAD” refers to Canadian dollars and the term “PLN” refers to Polish zloty. Adjusted EBITDA, Adjusted EBITDA margin and Net Debt are non-GAAP financial measures. See Appendix A for the definition and reconciliation of Adjusted EBITDA, Adjusted EBITDA margin and Net Debt. 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 operating segments are abbreviated on certain of the following slides. See Appendix A for a list of the subsidiaries and their abbreviations. CENTURY CASINOS 3
COVID-19 UPDATE In late 2019, an outbreak of COVID-19 was identified in China and has since spread throughout much of the world. The COVID-19 pandemic has had an adverse effect on the Company’s 2020 results of operations and financial condition, and impacted the Company’s results of operations to a lesser extent in the first half of 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 but have been required to vary their operations based on the governmental health and safety requirements in the jurisdictions in which they are located. The duration and ultimate impact of the COVID-19 pandemic otherwise remains uncertain. CENTURY CASINOS 4
Q2 2021 Net Operating Revenue by Reportable Segment and Operating Segment (in USD) Excluding Corporate and Other Reportable Segment Poland 9% Canada 8% United States 83% Missouri 37% Poland 9% Edmonton 5% Calgary 3% Colorado 13% West Virginia 33% CENTURY CASINOS 5
Q2 2021 Earnings (Loss) from Operations by Reportable Segment and Operating Segment (in USD) Excluding Corporate and Other Reportable Segment Poland -9% Canada -2% United States 111% Missouri 68% Poland -9% Edmonton -3% Calgary 1% Colorado 21% West Virginia 22% Century Casinos 6
Q2 2021 Net Earnings (Loss) Attributable to Century Casinos, Inc. Shareholders by Reportable Segment and Operating Segment (in USD) Excluding Corporate and Other Reportable Segment United States 118% Poland -7% Canada -11% Missouri 68% Poland -7% Edmonton -10% Calgary -1% Colorado 32% West Virginia 18% Century Casinos 7
Q2 2021 Adjusted EBITDA* by Reportable Segment and Operating Segment (in USD) Excluding Corporate and Other Reportable Segment United States 102% Poland -4% Canada 2% Missouri 63% Poland -4% Edmonton 1% Calgary 1% Colorado 17% West Virginia 22% *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) In millions 0 20 40 60 80 100 120 Q1 36.4 40.6 45.6 87.7 72.4 Q2 37.3 39.6 52.4 36.1 92.2 Q3 41.0 43.6 52.9 95.7 Q4 39.3 45.1 67.2 84.8 2017 2018 2019 2020 2021 Century Casinos 9
Balance Sheet (Selected Information in USD) In millions (except BVPS) June 30, 2021 December 31, 2020 Change Total Assets 688.8 680.8 1% Total Debt 183.9 184.6 - Book Value per Share* 4.31 3.99 8% Net Debt** 112.2 130.4 *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 June 30, 2021 included $167.5 million related to our credit agreement with Macquarie Capital (“Macquarie”), $0.8 million related to CPL, $8.4 million related to CRM and $15.7 million related to CDR’s long-term land lease, net of $8.5 million in deferred financing costs. The Company also has a $280.1 million long-term financing obligation under its triple-net master lease (“Master Lease”). CENTURY CASINOS 10
Income Statement (Selected Information in USD) In millions Q2 2021 Q2 2020 Change Net Operating Revenue 92.2 36.1 155% Earnings (Loss) from Operations 18.1 (2.1) 957% Net Earnings (Loss) Attributable to Century Casinos, Inc. Shareholders 6.9 (12.6) 154% Adjusted EBITDA* 25.2 (1.8) 1532% Basic Earnings (Loss) per Share 0.23 (0.43) 154% Diluted Earnings (Loss) per Share 0.22 (0.43) 151% Results for the three months ended June 30, 2020 were impacted by casino closures related to COVID-19 and impairment of goodwill and intangible assets at certain reporting units. *Adjusted EBITDA is a non-GAAP financial measure. See Appendix A for the definition and reconciliation of Adjusted EBITDA. CENTURY CASINOS 11
Debt and Net Debt to Adjusted EBITDA* (in USD) As of June 30, 2021 and for the years ended December 31, 2013-2020 9x 8x 7x 6x 5x 4x 3x 2x lx 0x -1x -2x 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 6.8X 5.1X 2020 7.9X 5.6X 2021 3.3X 2.0X 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 less cash payments on the Master Lease by the principal amount of outstanding debt. Net Debt to Adjusted EBITDA is calculated by dividing the Company’s trailing twelve-month Adjusted EBITDA less cash payments on the Master Lease 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 12
Q2 2021 Highlights – UNITED STATES (Selected Information in USD) In millions Q2 2021 Q2 2020 Change Net Operating Revenue 76.7 23.8 222% Impairment -Intangible Assets — 1.2 (100%) Operating Costs and Expenses 53.2 27.1 96% Earnings (Loss) from Operations 23.5 (3.3) 809% Net Earnings (Loss) Attributable to Century Casinos, Inc. Shareholders 16.5 (10.3) 261% Adjusted EBITDA* 28.2 2.1 1254% Adjusted EBITDA Margin* 37% 9% Highlights from operating segments within the Company’s United States 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 13
Q2 2021 Highlights – COLORADO (Selected Information in USD, in millions) Net Operating Revenue 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 Q1 8.1 6.7 9.4 Q2 8.8 2.0 12.1 Q3 9.2 10.4 Q4 7.8 9.5 2019 2020 2021 Adjusted EBITDA* 0.0 1.0 2.0 3.0 4.0 5.0 6.0 Q1 1.9 0.8 3.1 Q2 2.2 0.3 4.8 Q3 2.3 4.8 Q4 1.6 3.4 2019 2020 2021 As of June 30, 2021, our facilities in Colorado were fully operational with 819 slot machines and 12 table games. *Adjusted EBITDA is a non-GAAP financial measure. See Appendix A for the definition and reconciliation of Adjusted EBITDA. CENTURY CASINOS 14
Q2 2021 Highlights – WEST VIRGINIA (Selected Information in USD, in millions) Net Operating Revenue 0.0 5.0 10.0 15.0 20.0 25.0 30.0 35.0 Q1 25.1 23.9 Q2 12.2 30.6 Q3 28.4 Q4** 8.7 24.5 2019 2020 2021 Adjusted EBITDA* -1.0 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 Q1 1.8 3.6 Q2 -0.5 6.2 Q3 4.8 Q4** 1.3 3.3 2019 2020 2021 As of June 30, 2021, our facility in West Virginia was fully operational with 1,106 slot machines and 34 table games. *Adjusted EBITDA is a non-GAAP financial measure. See Appendix A for the definition and reconciliation of Adjusted EBITDA. **Q4 2019 results show results of MTR following its acquisition in December 2019. Century Casinos 15
Q2 2021 Highlights – MISSOURI (Selected Information in USD, in millions) Net Operating Revenue 0.0 5.0 10.0 15.0 20.0 25.0 30.0 35.0 40.0 Q1 21.6 31.0 Q2 9.6 34.1 Q3 23.9 Q4** 7.4 24.5 2019 2020 2021 Adjusted EBITDA* 0.0 5.0 10.0 15.0 20.0 Q1 6.1 15.4 Q2 2.3 17.2 Q3 9.7 Q4** 2.6 10.4 2019 2020 2021 As of June 30, 2021, our facilities in Missouri were operating 1,366 slot machines and 32 table games. Table games are operating at approximately 57% of available gaming positions. *Adjusted EBITDA is a non-GAAP financial measure. See Appendix A for the definition and reconciliation of Adjusted EBITDA. **Q4 2019 results show the results of CCG and CCV following their acquisition in December 2019. CENTURY CASINOS 16
Q2 2021 Highlights – CANADA (Selected Information in CAD) In millions Q2 2021 Q2 2020 Change Net Operating Revenue 8.2 6.4 27% Operating Costs and Expenses 8.9 8.3 8% Losses from Operations (0.8) (1.9) 58% Net (Loss) Earnings Attributable to Century Casinos, Inc. Shareholders (0.7) 2.4 (130%) Adjusted EBITDA* 0.8 (0.2) 503% Adjusted EBITDA Margin* 9% -2% Highlights from operating segments within the Company’s Canada 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
Q2 2021 Highlights – Edmonton (Selected Information in CAD, in millions) Net Operating Revenue 0.0 5.0 10.0 15.0 20.0 Q1 11.8 13.1 1.3 Q2 18.5 3.9 5.1 Q3 17.9 13.5 Q4 16.6 10.2 2019 2020 2021 Adjusted EBITDA* -3.0 -2.0 -1.0 0.0 1.0 2.0 3.0 4.0 5.0 Q1 2.9 1.4 -2.4 Q2 4.0 -0.2 0.3 Q3 3.5 3.2 Q4 3.9 2.5 2019 2020 2021 As of June 30, 2021, our facilities in Edmonton were operating 1,337 slot machines, 68 video lottery terminals (“VLTS”) and 32 table games. As of June 30, 2021, the gaming floor was operating at 75% capacity. Normal machine counts are 1,808 slot machines, 68 VLTs and 32 table games. The gaming floors are now fully open. *Adjusted EBITDA is a non-GAAP financial measure. See Appendix A for the definition and reconciliation of Adjusted EBITDA. CENTURY CASINOS 18
Q2 2021 Highlights – Calgary (Selected Information in CAD, in millions) Net Operating Revenue 0.0 2.0 4.0 6.0 8.0 10.0 12.0 Q1 9.9 8.5 1.2 Q2 10.9 2.6 3.1 Q3 11.2 8.6 Q4 10.2 6.4 2019 2020 2021 Adjusted EBITDA* -1.0 0.0 1.0 2.0 3.0 4.0 5.0 Q1 3.8 2.5 -0.7 Q2 3.9 0.0 0.5 Q3 2.9 2.7 Q4 3.2 2.8 2019 2020 2021 As of June 30, 2021, our facility in Calgary was operating 468 slot machines and 10 VLTs. Normal machine counts are 663 slot machines and 10 VLTs. The gaming floor is now fully open. The casino operations of Century Casino Calgary were sold in December 2020. *Adjusted EBITDA is a non-GAAP financial measure. See Appendix A for the definition and reconciliation of Adjusted EBITDA. Century Casinos 19
Q2 2021 Highlights – POLAND (Selected Information in PLN) In millions Q2 2021 Q2 2020 Change Net Operating Revenue 32.5 29.6 10% Operating Costs and Expenses 39.4 38.9 1% Loss from Operations (6.9) (9.3) 26% Net Loss Attributable to Century Casinos, Inc. Shareholders (3.9) (6.3) 39% Adjusted EBITDA* (4.0) (6.3) 37% Adjusted EBITDA Margin* -12% -21% *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
Q2 2021 Highlights – POLAND (Selected Information in PLN, in millions) Net Operating Revenue 0.0 20.0 40.0 60.0 80.0 100.0 Q1 74.8 66.6 22.4 Q2 76.6 29.6 32.5 Q3 79.0 62.1 Q4 83.9 51.0 2019 2020 2021 Adjusted EBITDA* -15.0 -10.0 -5.0 0.0 5.0 10.0 15.0 Q1 9.3 4.1 -9.6 Q2 7.6 -6.3 -4.0 Q3 9.6 3.8 Q4 9.6 -0.9 2019 2020 2021 As of June 30, 2021, Casinos Poland was fully operational with 526 slot machines and 119 table games at eight locations. *Adjusted EBITDA is a non-GAAP financial measure. See Appendix A for the definition and reconciliation of Adjusted EBITDA. CENTURY CASINOS 21
Q2 2021 Highlights – CORPORATE AND OTHER (Selected Information in USD) In millions Q2 2021 Q2 2020 Change Net Operating Revenue 0.1 0.2 (15%) Operating Costs and Expenses 3.1 (4.5) 170% (Loss) Earnings from Operations (3.0) 4.6 (165%) Net (Loss) Earnings Attributable to Century Casinos, Inc. Shareholders (7.1) 0.7 (1125%) Adjusted EBITDA* (2.6) (2.4) (9%) The Corporate and Other reportable segment includes Cruise Ships & Other and Corporate Other reporting units. As of June 30, 2021, we have a concession agreement to operate two ship-based casinos through the second quarter of 2022. From March 2020 to June 2021, both casinos did not operate due to the COVID-19 pandemic. One ship-based casino began operating in June 2021. In May 2021, a concession agreement with TUI Cruises for two other ship-based casinos ended. We permanently closed Century Casino Bath on March 17, 2020 and deconsolidated it in May 2020. Century Casino Bath is no longer a reporting unit in the Corporate and Other reportable segment. 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. *Adjusted EBITDA is a non-GAAP financial measure. See Appendix A for the definition and reconciliation of Adjusted EBITDA. CENTURY CASINOS 22
Appendix A – ABBREVIATIONS OF CENTURY CASINOS, INC. SUBSIDIARIES AND CERTAIN OPERATING SEGMENTS Subsidiary Abbreviation Century Casino & Hotel – Central City CTL Century Casino & Hotel – Cripple Creek CRC Mountaineer Casino, Racetrack & Resort MTR Century Casino Cape Girardeau CCG Century Casino Caruthersville CCV Century Casino & Hotel - Edmonton CRA Century Casino St. Albert CSA Century Sports CAL Century Downs Racetrack and Casino CDR Century Bets! CBS Century Mile Racetrack and Casino CMR Casinos Poland CPL Century Resorts Management GmbH CRM Operating Segment Abbreviation Cruise Ships & Other Ships & Other Corporate Other N/A CENTURY CASINOS 23
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 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 24
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 transactions. Expense related to the Master Lease for the Company’s acquired casinos in Missouri and West Virginia 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 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 25
Appendix A – NON-GAAP FINANCIAL MEASURES 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. The cash payments related to the Company’s Master Lease are deducted from Adjusted EBITDA to calculate the debt and Net Debt to Adjusted EBITDA ratios. The Company does not recognize rent expense related to these leased assets; instead, a portion of the periodic payment under the Master Lease is recognized as interest expense with the remainder of the payment reducing the failed sale-leaseback financing obligation using the effective interest method. Management believes that deducting cash payments related to its Master Lease from Adjusted EBITDA provides investors with an indication of the length of time it would take the Company to repay its long-term debt. CENTURY CASINOS 26
Appendix A – NON-GAAP FINANCIAL MEASURES Reconciliation of Adjusted EBITDA (in thousands) For the three months ended June 30, in USD 2021 2020 Net Operating Revenue $ 92,185 $ 36,103 Net earnings (loss) attributable to Century Casinos, Inc. shareholders 6,855 (12,607) Interest expense (income), net 10,687 10,579 Income taxes 1,120 582 Depreciation and amortization 6,633 6,405 Non-controlling interests (583) (590) Non-cash stock-based compensation 323 249 Loss (gain) on foreign currency transactions and other 33 (7,521) Impairment - intangible and tangible assets — 1,157 Loss (gain) on disposition of fixed assets 170 (69) Acquisition costs — 53 Adjusted EBITDA $ 25,238 $ (1,762) CENTURY CASINOS 27
Appendix A – NON-GAAP FINANCIAL MEASURES Reconciliation of Adjusted EBITDA (in thousands) – UNITED STATES For the three months ended June 30, 2021 in USD Colorado West Virginia Missouri Total United States Net Operating Revenue $ 12,071 $ 30,561 $ 34,068 $ 76,700 Net earnings attributable to Century Casinos, Inc. shareholders 4,392 2,574 9,536 16,502 Interest expense (income), net — 2,076 4,951 7,027 Depreciation and amortization 454 1,529 2,526 4,509 Loss on disposition of fixed assets — — 209 209 Adjusted EBITDA $ 4,846 $ 6,179 $ 17,222 $ 28,247 Adjusted EBITDA Margin 40% 20% 51% 37% For the three months ended June 30, 2020 in USD Colorado West Virginia Missouri Total United States Net Operating Revenue $ 2,015 $ 12,165 $ 9,652 $ 23,832 Net loss attributable to Century Casinos, Inc. shareholders (210) (4,429) (5,632) (10,271) Interest expense (income), net — 2,033 4,921 6,954 Depreciation and amortization 479 1,414 2,353 4,246 Impairment - intangible and tangible assets — 469 688 1,157 Adjusted EBITDA $ 269 $ (513) $ 2,330 $ 2,086 Adjusted EBITDA Margin 13% -4% 24% 9% CENTURY CASINOS 28
Appendix A – NON-GAAP FINANCIAL MEASURES Reconciliation of Adjusted EBITDA (in thousands) – CANADA For the three months ended June 30, 2021 in CAD Edmonton Calgary Total Canada Net Operating Revenue $ 5,083 $ 3,071 $ 8,154 Net loss attributable to Century Casinos, Inc. shareholders (490) (209) (699) Interest expense (income), net 8 475 483 Income tax expense (benefit) 766 (62) 704 Depreciation and amortization 1,165 371 1,536 Non-controlling interests — (82) (82) (Gain) loss on foreign currency transactions, cost recovery income and other (1,180) 2 (1,178) Adjusted EBITDA $ 269 $ 495 $ 764 Adjusted EBITDA Margin 5% 16% 9% For the three months ended June 30, 2020 in CAD Edmonton Calgary Total Canada Net Operating Revenue $ 3,879 $ 2,568 $ 6,447 Net income (loss) attributable to Century Casinos, Inc. shareholders 3,098 (729) 2,369 Interest expense (income), net 4 598 602 Income taxes (benefit) 108 (174) (66) Depreciation and amortization 1,175 613 1,788 Non-controlling interests — 43 43 Gain on foreign currency transactions, cost recovery income and other (4,566) (229) (4,795) Loss (gain) on disposition of fixed assets 1 (98) (97) Adjusted EBITDA $ (180) $ 24 $ (156) Adjusted EBITDA Margin -5% 2% -2% CENTURY CASINOS 29
Appendix A – NON-GAAP FINANCIAL MEASURES Reconciliation of Adjusted EBITDA (in thousands) – POLAND For the three months ended June 30, in PLN 2021 2020 Net Operating Revenue PLN 32,489 PLN 29,573 Net loss attributable to Century Casinos, Inc. shareholders (3,855) (6,267) Interest expense (income), net 43 (61) Income (benefit) taxes (1,080) 127 Depreciation and amortization 2,892 3,016 Non-controlling interests (1,927) (3,133) Gain on foreign currency transactions and other (70) (6) Loss on disposition of fixed assets — 1 Adjusted EBITDA PLN (3,997) PLN (6,323) Adjusted EBITDA Margin -12% -21% CENTURY CASINOS 30
Appendix A – NON-GAAP FINANCIAL MEASURES Reconciliation of Adjusted EBITDA (in thousands) – CORPORATE AND OTHER For the three months ended June 30, in USD 2021 2020 Net Operating Revenue $ 138 $ 162 Net (loss) earnings attributable to Century Casinos, Inc. shareholders (7,084) 691 Interest expense (income), net 3,253 3,204 Income taxes 831 918 Depreciation and amortization 105 135 Non-cash stock-based compensation 323 249 Loss (gain) on foreign currency transactions and other 5 (7,631) Gain on disposition of fixed assets (39) — Acquisition costs — 53 Adjusted EBITDA $ (2,606) $ (2,381) CENTURY CASINOS 31
Appendix A – NON-GAAP FINANCIAL MEASURES Reconciliation of Adjusted EBITDA and Adjusted EBITDA Less Cash Payments on Master Lease Financing Obligation (in thousands) in USD Q3 2020 Q4 2020 Q1 2021 Q2 2021 Trailing 12-Month June 30, 2021 Trailing 12-Month December 31, 2020 Net earnings (loss) attributable to Century Casinos, Inc. shareholders $ 3,748 $ 6,713 $ (1,419) $ 6,855 $ 15,897 $ (48,002) Interest expense (income), net 10,587 10,566 10,522 10,687 42,362 43,098 Income taxes 428 1,314 99 1,120 2,961 4,848 Depreciation and amortization 6,824 6,810 6,643 6,633 26,910 26,534 Non-controlling interests 208 53 (484) (583) (806) (134) Non-cash stock-based compensation 354 (803) 259 323 133 (214) Loss (gai n) on foreign currency transactions, cost 43 (6,420) (981) 33 (7,325) (13,145) recovery income and other Impairment - intangible and tangible assets — — — — — 35,121 Loss on disposition of fixed assets 22 69 105 170 366 26 Acquisition costs — — — — — 266 Adjusted EBITDA $ 22,214 $ 18,302 $ 14,744 $ 25,238 $ 80,498 $ 48,398 Cash payments on Master Lease (6,249) (8,357) (4,208) (6,313) (25,127) (25,021) Adjusted EBITDA less cash payments on Master Lease $ 15,965 $ 9,945 $ 10,536 $ 18,925 $ 55,371 $ 23,377 CENTURY CASINOS 32
Appendix A – NON-GAAP FINANCIAL MEASURES Reconciliation of Net Debt (in thousands) Amounts in thousands June 30, 2021 December 31,2020 Total long-term debt, including current portion $ 183,865 $ 184,550 Deferred financing costs 8,478 9,261 Total principal $ 192,343 $ 193,811 Less: Cash and cash equivalents $ 80,163 $ 63,413 Net Debt $ 112,180 $ 130,398 CENTURY CASINOS 33