Century Casinos, Inc. Announces Third Quarter 2024 Results
Rhea-AI Summary
Century Casinos reported Q3 2024 financial results with net operating revenue of $155.7 million, down 3% year-over-year. The company posted earnings from operations of $17.9 million, up 24%, while net loss attributable to shareholders improved to ($8.1) million, a 43% decrease. Adjusted EBITDAR was $32.9 million, down 1%. Key developments include opening a new land-based casino in Caruthersville, Missouri with 599 slot machines and nine table games, and reopening the Wroclaw casino in Poland. The company maintained $118.8 million in cash and $339.6 million in outstanding debt as of September 30, 2024.
Positive
- 24% increase in earnings from operations to $17.9 million
- 43% reduction in net loss to $8.1 million
- 50% increase in gaming positions at new Caruthersville casino
- Doubled hotel room capacity to 74 rooms at Caruthersville location
Negative
- 3% decrease in net operating revenue to $155.7 million
- 1% decline in Adjusted EBITDAR to $32.9 million
- Failed to receive new licenses for Krakow and Warsaw LIM Center casinos
- 22% revenue decline in Poland segment
Insights
The Q3 2024 results show mixed performance with some concerning trends. While earnings from operations increased
Key concerns include:
- Declining revenue in Poland (
-22% ) due to casino license issues - High interest expenses from the VICI master lease
- Significant cash reduction from
$171.3 million to$118.8 million
The opening of the new Caruthersville casino with
The operational restructuring in key markets presents a mixed outlook. The expanded Caruthersville property strategically targets the untapped Arkansas and north Memphis markets, potentially driving meaningful revenue growth. However, the Polish operations face significant headwinds with lost licenses in key locations like Krakow and Warsaw.
The
2025 Looks Promising After Opening of New Land-Based Casino in
Third Quarter 2024 Highlights*
Compared to the three months ended September 30, 2023:
- Net operating revenue was
$155.7 million 3% . - Earnings from operations were
$17.9 million 24% . - Net loss attributable to Century Casinos, Inc. shareholders was
( , a decrease in net loss of$8.1) million 43% , and basic net loss per share was ($0.26 - Adjusted EBITDAR** was
$32.9 million 1% ).
"Earnings from operations were in line with our expectations for the third quarter and grew
UPDATES
Caruthersville Project – The Company opened its new land-based casino and hotel in
RESULTS
The consolidated results for the three and nine months ended September 30, 2024 and 2023 are as follows:
For the three months | For the nine months | |||||||||||||||
Amounts in thousands, except per share data | ended September 30, | % | ended September 30, | % | ||||||||||||
Consolidated Results: | 2024 | 2023 | Change | 2024 | 2023 | Change | ||||||||||
Net Operating Revenue | $ | 155,701 | $ | 161,179 | (3 %) | $ | 438,147 | $ | 406,448 | 8 % | ||||||
Earnings from Operations | 17,918 | 14,467 | 24 % | 40,466 | 51,494 | (21 %) | ||||||||||
Net Loss Attributable to Century | $ | (8,119) | $ | (14,175) | 43 % | $ | (63,276) | $ | (17,377) | (264 %) | ||||||
Adjusted EBITDAR** | $ | 32,902 | $ | 33,347 | (1 %) | $ | 81,598 | $ | 88,686 | (8 %) | ||||||
Net Loss Per Share Attributable to Century Casinos, Inc. Shareholders: | ||||||||||||||||
Basic | $ | (0.26) | $ | (0.47) | 45 % | $ | (2.07) | $ | (0.57) | (264 %) | ||||||
Diluted | $ | (0.26) | $ | (0.47) | 45 % | $ | (2.07) | $ | (0.57) | (264 %) | ||||||
RESULTS BY REPORTABLE SEGMENT*
Following is a summary of the changes in net operating revenue by reportable segment for the three and nine months ended September 30, 2024, compared to the three and nine months ended September 30, 2023:
Net Operating Revenue | ||||||||||||||||||||||
For the three months | For the nine months | |||||||||||||||||||||
Amounts in | ended September 30, | $ | % | ended September 30, | $ | % | ||||||||||||||||
thousands | 2024 | 2023 | Change | Change | 2024 | 2023 | Change | Change | ||||||||||||||
$ | 117,139 | $ | 116,861 | $ | 278 | — | $ | 319,680 | $ | 277,636 | $ | 42,044 | 15 % | |||||||||
20,275 | 20,921 | (646) | (3 %) | 58,425 | 56,262 | 2,163 | 4 % | |||||||||||||||
18,287 | 23,397 | (5,110) | (22 %) | 60,029 | 72,489 | (12,460) | (17 %) | |||||||||||||||
Corporate and | — | — | — | — | 13 | 61 | (48) | (79 %) | ||||||||||||||
Consolidated | $ | 155,701 | $ | 161,179 | $ | (5,478) | (3 %) | $ | 438,147 | $ | 406,448 | $ | 31,699 | 8 % | ||||||||
Following is a summary of the changes in earnings (loss) from operations by reportable segment for the three and nine months ended September 30, 2024, compared to the three and nine months ended September 30, 2023:
Earnings (Loss) from Operations | ||||||||||||||||||||||
For the three months | For the nine months | |||||||||||||||||||||
Amounts in | ended September 30, | $ | % | ended September 30, | $ | % | ||||||||||||||||
thousands | 2024 | 2023 | Change | Change | 2024 | 2023 | Change | Change | ||||||||||||||
$ | 18,195 | $ | 19,812 | $ | (1,617) | (8 %) | $ | 40,760 | $ | 51,614 | $ | (10,854) | (21 %) | |||||||||
3,811 | 2,080 | 1,731 | 83 % | 12,203 | 10,727 | 1,476 | 14 % | |||||||||||||||
(1,214) | 1,271 | (2,485) | (196 %) | (1,416) | 5,138 | (6,554) | (128 %) | |||||||||||||||
Corporate and | (2,874) | (8,696) | 5,822 | 67 % | (11,081) | (15,985) | 4,904 | 31 % | ||||||||||||||
Consolidated | $ | 17,918 | $ | 14,467 | $ | 3,451 | 24 % | $ | 40,466 | $ | 51,494 | $ | (11,028) | (21 %) | ||||||||
Following is a summary of the changes in net (loss) earnings attributable to Century Casinos, Inc. shareholders by reportable segment for the three and nine months ended September 30, 2024, compared to the three and nine months ended September 30, 2023:
Net (Loss) Earnings Attributable to Century Casinos, Inc. Shareholders | ||||||||||||||||||||||
For the three months | For the nine months | |||||||||||||||||||||
Amounts in | ended September 30, | $ | % | ended September 30, | $ | % | ||||||||||||||||
thousands | 2024 | 2023 | Change | Change | 2024 | 2023 | Change | Change | ||||||||||||||
$ | 4,701 | $ | 5,273 | $ | (572) | (11 %) | $ | (25,066) | $ | 17,026 | $ | (42,092) | (247 %) | |||||||||
1,134 | (1,730) | 2,864 | 166 % | 3,276 | 2,865 | 411 | 14 % | |||||||||||||||
(681) | 788 | (1,469) | (186 %) | (716) | 3,066 | (3,782) | (123 %) | |||||||||||||||
Corporate and | (13,273) | (18,506) | 5,233 | 28 % | (40,770) | (40,334) | (436) | (1 %) | ||||||||||||||
Consolidated | $ | (8,119) | $ | (14,175) | $ | 6,056 | 43 % | $ | (63,276) | $ | (17,377) | $ | (45,899) | (264 %) | ||||||||
Items deducted from or added to earnings from operations to arrive at net (loss) earnings attributable to Century Casinos, Inc. shareholders include interest income, interest expense, gains (losses) on foreign currency transactions and other, income tax (benefit) expense, and non-controlling interests. Increased interest expense and a valuation allowance on net deferred tax assets in
Following is a summary of the changes in Adjusted EBITDAR** by reportable segment for the three and nine months ended September 30, 2024 compared to the three and nine months ended September 30, 2023:
Adjusted EBITDAR** | ||||||||||||||||||||||
For the three months | For the nine months | |||||||||||||||||||||
Amounts in | ended September 30, | $ | % | ended September 30, | $ | % | ||||||||||||||||
thousands | 2024 | 2023 | Change | Change | 2024 | 2023 | Change | Change | ||||||||||||||
$ | 29,172 | $ | 30,489 | $ | (1,317) | (4 %) | $ | 73,349 | $ | 76,086 | $ | (2,737) | (4 %) | |||||||||
4,889 | 4,706 | 183 | 4 % | 15,482 | 14,380 | 1,102 | 8 % | |||||||||||||||
1,958 | 1,948 | 10 | 1 % | 3,166 | 7,111 | (3,945) | (55 %) | |||||||||||||||
Corporate and Other | (3,117) | (3,796) | 679 | 18 % | (10,399) | (8,891) | (1,508) | (17 %) | ||||||||||||||
Consolidated | $ | 32,902 | $ | 33,347 | $ | (445) | (1 %) | $ | 81,598 | $ | 88,686 | $ | (7,088) | (8 %) | ||||||||
BALANCE SHEET AND LIQUIDITY
As of September 30, 2024, the Company had
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 September 30, 2024 on its website at www.cnty.com/investor/financials/sec-filings/. The Company will also post its current presentation, which may be used in one or more meetings with current and potential investors from time to time, at the Company's website under www.cnty.com/investor/presentations/.
The Company will host its third quarter 2024 earnings conference call today, Monday, November 4, 2024 at 10:00 am EST / 8:00 am MST.
* | Amounts presented are rounded. As such, rounding differences could occur in period over period changes and percentages reported. |
** | Adjusted EBITDAR, Adjusted EBITDAR margin and Net Debt are Non-US GAAP financial measures. See discussion and reconciliation of Non-US GAAP financial measures in Supplemental Information below. |
CENTURY CASINOS, INC. AND SUBSIDIARIES |
UNAUDITED FINANCIAL INFORMATION – US GAAP BASIS |
Condensed Consolidated Statements of Loss |
For the three months | For the nine months | |||||||||||
ended September 30, | ended September 30, | |||||||||||
Amounts in thousands, except for per share information | 2024 | 2023 | 2024 | 2023 | ||||||||
Operating revenue: | ||||||||||||
Net operating revenue | $ | 155,701 | $ | 161,179 | $ | 438,147 | $ | 406,448 | ||||
Operating costs and expenses: | ||||||||||||
Total operating costs and expenses | 137,783 | 146,712 | 397,681 | 356,075 | ||||||||
Earnings from equity investment | — | — | — | 1,121 | ||||||||
Earnings from operations | 17,918 | 14,467 | 40,466 | 51,494 | ||||||||
Non-operating (expense) income, net | (24,977) | (31,001) | (72,599) | (62,915) | ||||||||
Loss before income taxes | (7,059) | (16,534) | (32,133) | (11,421) | ||||||||
Income tax benefit (expense) | 334 | 3,068 | (25,299) | 1,349 | ||||||||
Net loss | (6,725) | (13,466) | (57,432) | (10,072) | ||||||||
Net earnings attributable to non-controlling interests | (1,394) | (709) | (5,844) | (7,305) | ||||||||
Net loss attributable to Century Casinos, Inc. | $ | (8,119) | $ | (14,175) | $ | (63,276) | $ | (17,377) | ||||
Net loss per share attributable to Century Casinos, Inc. shareholders: | ||||||||||||
Basic | $ | (0.26) | $ | (0.47) | $ | (2.07) | $ | (0.57) | ||||
Diluted | $ | (0.26) | $ | (0.47) | $ | (2.07) | $ | (0.57) | ||||
Weighted average common shares | ||||||||||||
Basic | 30,683 | 30,340 | 30,595 | 30,245 | ||||||||
Diluted | 30,683 | 30,340 | 30,595 | 30,245 | ||||||||
Condensed Consolidated Balance Sheets | ||||||
September 30, | December 31, | |||||
Amounts in thousands | 2024 | 2023 | ||||
Assets | ||||||
Current assets | $ | 155,017 | $ | 207,017 | ||
Property and equipment, net | 926,633 | 913,561 | ||||
Other assets | 221,005 | 239,084 | ||||
Total assets | $ | 1,302,655 | $ | 1,359,662 | ||
Liabilities and Equity | ||||||
Current liabilities | $ | 86,825 | $ | 93,619 | ||
Non-current liabilities | 1,066,797 | 1,051,602 | ||||
Century Casinos, Inc. shareholders' equity | 56,805 | 121,392 | ||||
Non-controlling interests | 92,228 | 93,049 | ||||
Total liabilities and equity | $ | 1,302,655 | $ | 1,359,662 | ||
CENTURY CASINOS, INC. AND SUBSIDIARIES |
UNAUDITED SUPPLEMENTAL INFORMATION |
Reconciliation of Adjusted EBITDAR* to Net Earnings (Loss) Attributable to Century Casinos, Inc. Shareholders by Reportable Segment. |
For the three months ended September 30, 2024 | |||||||||||||||
Amounts in thousands | United | Corporate | Total | ||||||||||||
Net earnings (loss) attributable to Century | $ | 4,701 | $ | 1,134 | $ | (681) | $ | (13,273) | $ | (8,119) | |||||
Interest expense (income), net (1) | 11,720 | 3,241 | (14) | 10,157 | 25,104 | ||||||||||
Income tax (benefit) expense | — | (481) | (95) | 242 | (334) | ||||||||||
Depreciation and amortization | 10,939 | 1,078 | 409 | 36 | 12,462 | ||||||||||
Net earnings (loss) attributable to non- | 1,774 | (39) | (341) | — | 1,394 | ||||||||||
Non-cash stock-based compensation | — | — | — | (280) | (280) | ||||||||||
Loss (gain) on foreign currency | 25 | (44) | (83) | 1 | (101) | ||||||||||
Loss on disposition of fixed assets | 13 | — | 10 | — | 23 | ||||||||||
Pre-opening expenses | — | — | 2,753 | — | 2,753 | ||||||||||
Adjusted EBITDAR | $ | 29,172 | $ | 4,889 | $ | 1,958 | $ | (3,117) | $ | 32,902 | |||||
(1) | See "Summary of Interest Expense (Income), Net" below for a breakdown of interest expense (income), net and "Cash Rent Payments" below for more information on the rent payments related to the Master Lease. |
For the three months ended September 30, 2023 | |||||||||||||||
Amounts in thousands | United | Corporate | Total | ||||||||||||
Net earnings (loss) attributable to | $ | 5,273 | $ | (1,730) | $ | 788 | $ | (18,506) | $ | (14,175) | |||||
Interest expense (income), net (1) | 11,951 | 8,706 | (74) | 10,785 | 31,368 | ||||||||||
Income tax expense (benefit) | 818 | (3,403) | 378 | (861) | (3,068) | ||||||||||
Depreciation and amortization | 10,706 | 1,102 | 653 | 57 | 12,518 | ||||||||||
Net earnings (loss) attributable to non- | 1,770 | (1,453) | 392 | — | 709 | ||||||||||
Non-cash stock-based compensation | — | — | — | 1,082 | 1,082 | ||||||||||
(Gain) loss on foreign currency | (85) | 1,484 | (213) | (46) | 1,140 | ||||||||||
Loss on disposition of fixed assets | 56 | — | 24 | — | 80 | ||||||||||
Acquisition costs | — | — | — | 3,693 | 3,693 | ||||||||||
Adjusted EBITDAR | $ | 30,489 | $ | 4,706 | $ | 1,948 | $ | (3,796) | $ | 33,347 | |||||
(1) | See "Summary of Interest Expense (Income), Net" below for a breakdown of interest expense and "Cash Rent Payments" below for more information on the rent payments related to the Master Lease. |
(2) | Included in the |
CENTURY CASINOS, INC. AND SUBSIDIARIES |
UNAUDITED SUPPLEMENTAL INFORMATION |
Reconciliation of Adjusted EBITDAR* to Net (Loss) Earnings Attributable to Century Casinos, Inc. Shareholders by Reportable Segment. |
For the nine months ended September 30, 2024 | |||||||||||||||
Amounts in thousands | United | Corporate | Total | ||||||||||||
Net (loss) earnings attributable to Century | $ | (25,066) | $ | 3,276 | $ | (716) | $ | (40,770) | $ | (63,276) | |||||
Interest expense (income), net (1) | 35,159 | 9,300 | (70) | 30,927 | 75,316 | ||||||||||
Income tax expense (benefit) | 25,340 | 702 | 143 | (886) | 25,299 | ||||||||||
Depreciation and amortization | 32,030 | 3,315 | 1,462 | 135 | 36,942 | ||||||||||
Net earnings (loss) attributable to non- | 5,327 | 875 | (358) | — | 5,844 | ||||||||||
Non-cash stock-based compensation | — | — | — | 566 | 566 | ||||||||||
Loss (gain) on foreign currency | 24 | (1,950) | (415) | (352) | (2,693) | ||||||||||
Loss (gain) on disposition of fixed assets | 535 | (36) | 367 | — | 866 | ||||||||||
Acquisition costs | — | — | — | (19) | (19) | ||||||||||
Pre-opening expenses | — | — | 2,753 | — | 2,753 | ||||||||||
Adjusted EBITDAR | $ | 73,349 | $ | 15,482 | $ | 3,166 | $ | (10,399) | $ | 81,598 | |||||
(1) | See "Summary of Interest Expense (Income), Net" below for a breakdown of interest expense (income), net and "Cash Rent Payments" below for more information on the rent payments related to the Master Lease. |
(2) | Included in the |
For the nine months ended September 30, 2023 | |||||||||||||||
Amounts in thousands | United | Corporate | Total | ||||||||||||
Net earnings (loss) attributable to Century | $ | 17,026 | $ | 2,865 | $ | 3,066 | $ | (40,334) | $ | (17,377) | |||||
Interest expense (income), net (1) | 26,370 | 9,776 | (285) | 31,238 | 67,099 | ||||||||||
Income tax expense (benefit) | 4,656 | (624) | 1,398 | (6,779) | (1,349) | ||||||||||
Depreciation and amortization | 24,065 | 3,374 | 1,948 | 175 | 29,562 | ||||||||||
Net earnings attributable to non- | 3,562 | 2,212 | 1,531 | — | 7,305 | ||||||||||
Non-cash stock-based compensation | — | — | — | 2,746 | 2,746 | ||||||||||
Gain on foreign currency transactions, | (85) | (3,228) | (572) | (42) | (3,927) | ||||||||||
Loss on disposition of fixed assets | 492 | 5 | 25 | 4 | 526 | ||||||||||
Acquisition costs | — | — | — | 4,101 | 4,101 | ||||||||||
Adjusted EBITDAR | $ | 76,086 | $ | 14,380 | $ | 7,111 | $ | (8,891) | $ | 88,686 | |||||
(1) | See "Summary of Interest Expense (Income), Net" below for a breakdown of interest expense (income), net and "Cash Rent Payments" below for more information on the rent payments related to the Master Lease. |
(2) | Included in the |
CENTURY CASINOS, INC. AND SUBSIDIARIES |
UNAUDITED SUPPLEMENTAL INFORMATION |
Net Earnings (Loss) Margins** and Adjusted EBITDAR Margins*** |
For the three months | For the nine months | ||||||||||||
ended September 30, | ended September 30, | ||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||
Net Operating Revenue | $ | 117,139 | $ | 116,861 | $ | 319,680 | $ | 277,636 | |||||
Net Earnings (Loss) Margin | 4 % | 5 % | (8 %) | 6 % | |||||||||
Adjusted EBITDAR Margin | 25 % | 26 % | 23 % | 27 % | |||||||||
Net Operating Revenue | $ | 20,275 | $ | 20,921 | $ | 58,425 | $ | 56,262 | |||||
Net Earnings (Loss) Margin | 6 % | (8 %) | 6 % | 5 % | |||||||||
Adjusted EBITDAR Margin | 24 % | 23 % | 27 % | 26 % | |||||||||
Net Operating Revenue | $ | 18,287 | $ | 23,397 | $ | 60,029 | $ | 72,489 | |||||
Net Earnings (Loss) Margin | (4 %) | 3 % | (1 %) | 4 % | |||||||||
Adjusted EBITDAR Margin | 11 % | 8 % | 5 % | 10 % | |||||||||
Corporate and Other | Net Operating Revenue | $ | — | $ | — | $ | 13 | $ | 61 | ||||
Net Earnings (Loss) Margin | NM (1) | NM | NM | NM | |||||||||
Adjusted EBITDAR Margin | NM | NM | NM | NM | |||||||||
Consolidated | Net Operating Revenue | $ | 155,701 | $ | 161,179 | $ | 438,147 | $ | 406,448 | ||||
Net Earnings (Loss) Margin | (5 %) | (9 %) | (14 %) | (4 %) | |||||||||
Adjusted EBITDAR Margin | 21 % | 21 % | 19 % | 22 % | |||||||||
(1) Not meaningful. |
Summary of Interest Expense (Income), Net | ||||||||||||
For the three months | For the nine months | |||||||||||
ended September 30, | ended September 30, | |||||||||||
Amounts in thousands | 2024 | 2023 | 2024 | 2023 | ||||||||
Interest income | $ | (751) | $ | (75) | $ | (2,110) | $ | (340) | ||||
Interest expense - Credit Agreements | 9,881 | 10,056 | 29,601 | 29,054 | ||||||||
Interest expense - VICI Financing Obligation | 15,212 | 12,902 | 45,586 | 27,344 | ||||||||
Interest expense - CDR Land Lease (1) | — | 400 | — | 1,452 | ||||||||
Interest expense - Deferred Financing Costs | 674 | 674 | 2,022 | 2,021 | ||||||||
Interest expense - Misc | 88 | 87 | 217 | 244 | ||||||||
Interest expense - Other (2) | — | 7,324 | — | 7,324 | ||||||||
Interest expense (income), net | $ | 25,104 | $ | 31,368 | $ | 75,316 | $ | 67,099 | ||||
(1) | The CDR land lease ended on September 6, 2023 in conjunction with the sale and leaseback of our |
(2) | Interest expense – Other is |
CENTURY CASINOS, INC. AND SUBSIDIARIES |
UNAUDITED SUPPLEMENTAL INFORMATION |
Cash Rent Payments |
For the three months | For the nine months | |||||||||||
ended September 30, | ended September 30, | |||||||||||
Amounts in thousands | 2024 | 2023 | 2024 | 2023 | ||||||||
Master Lease | $ | 13,190 | $ | 11,923 | $ | 37,829 | $ | 25,654 | ||||
CDR Land Lease | — | 275 | — | 1,258 | ||||||||
Nugget Lease (1) | 1,913 | 1,900 | 5,088 | 3,800 | ||||||||
(1) | Represents payments with respect to the |
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 September 30, 2024.
Reportable Segment | Operating Segment | Reporting Unit |
East | Mountaineer Casino, Resort & Races | |
Rocky Gap Casino, Resort & Golf | ||
Midwest | Century Casino & Hotel — | |
Century Casino & Hotel — | ||
Century Casino & Hotel — | ||
Century Casino & Hotel — | ||
West | Nugget Casino Resort and Smooth Bourbon, LLC | |
Century Casino & Hotel — | ||
Century Casino St. Albert | ||
Century Mile Racetrack and Casino | ||
Century Downs Racetrack and Casino | ||
Casinos | ||
Corporate and Other | Corporate and Other | Cruise Ships & Other (1) |
Corporate Other (2) | ||
(1) | The Company operated on ship-based casinos through April 16, 2023. |
(2) | The Company's equity interest in Smooth Bourbon was included in the Corporate Other reporting unit until April 3, 2023, when the Company acquired the Nugget Casino Resort and the Company began consolidating Smooth Bourbon. |
* We define Adjusted EBITDAR as net earnings (loss) attributable to Century Casinos, Inc. shareholders before interest expense (income) (including interest expense related to the Master Lease), net, income taxes (benefit), depreciation, amortization, non-controlling interests net earnings (losses) and transactions, pre-opening expenses, acquisition costs, non-cash stock-based compensation charges, asset impairment costs, loss (gain) on disposition of fixed assets, discontinued operations, (gain) loss on foreign currency transactions, cost recovery income and other, gain on business combination and certain other one-time transactions. The Master Lease is accounted for as a financing obligation. As such, a portion of the periodic payment under the Master Lease is recognized as interest expense with the remainder of the payment impacting the financing obligation using the effective interest method. Intercompany transactions consisting primarily of management and royalty fees and interest, along with their related tax effects, are excluded from the presentation of net earnings (loss) attributable to Century Casinos, Inc. shareholders and Adjusted EBITDAR reported for each segment. Not all of the aforementioned items occur in each reporting period, but have been included in the definition based on historical activity. These adjustments have no effect on the consolidated results as reported under GAAP.
CENTURY CASINOS, INC. AND SUBSIDIARIES
UNAUDITED SUPPLEMENTAL INFORMATION
Adjusted EBITDAR is used outside of our financial statements solely as a valuation metric and is not considered a measure of performance recognized under GAAP. Adjusted EBITDAR is an additional metric used by analysts in valuing gaming companies subject to triple net leases such as our Master Lease since it eliminates the effects of variability in leasing methods and capital structures. This metric is included as supplemental disclosure because (i) we believe Adjusted EBITDAR is used by gaming operator analysts and investors to determine the equity value of gaming operators and (ii) financial analysts refer to Adjusted EBITDAR when valuing our business. We believe Adjusted EBITDAR is useful for equity valuation purposes because (i) its calculation isolates the effects of financing real estate, and (ii) using a multiple of Adjusted EBITDAR to calculate enterprise value allows for an adjustment to the balance sheet to recognize estimated liabilities arising from operating leases related to real estate.
Adjusted EBITDAR should not be construed as an alternative to net earnings (loss) attributable to Century Casinos, Inc. shareholders, the most directly comparable GAAP measure, as indicators of our performance. In addition, Adjusted EBITDAR as used by us may not be defined in the same manner as other companies in our industry, and, as a result, may not be comparable to similarly titled non-GAAP financial measures of other companies. Consolidated Adjusted EBITDAR should not be viewed as a measure of overall operating performance or considered in isolation or as an alternative to net earnings (loss) attributable to Century Casinos, Inc. shareholders, because it excludes the rent expense associated with our Master Lease and several other items.
** The Company defines net earnings (loss) margin as net earnings (loss) attributable to Century Casinos, Inc. shareholders divided by net operating revenue.
*** The Company defines Adjusted EBITDAR margin as Adjusted EBITDAR divided by net operating revenue. Adjusted EBITDAR margins are a non-US GAAP measure. Management uses these margins as one of several measures to evaluate the efficiency of the Company's casino operations.
ABOUT CENTURY CASINOS, INC.:
Century Casinos, Inc. is a casino entertainment company. In
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.
FORWARD-LOOKING STATEMENTS, BUSINESS ENVIRONMENT AND RISK FACTORS
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 projects in development and other opportunities, including the benefits of our
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SOURCE Century Casinos, Inc.
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