PRN: Century Casinos, Inc. Announces Second Quarter 2012 Results
Century Casinos, Inc. Announces Second Quarter 2012 Results
COLORADO SPRINGS, Colorado, Aug. 8, 2012 /PRNewswire/ -- Century Casinos, Inc. (NASDAQ Capital MarketÂ® and Vienna Stock Exchange: CNTY) today announced its financial results for the three and six months ended June 30, 2012.
Second Quarter 2012 Highlights*
"We posted solid results in the second quarter, but the Waldo Canyon wildfires had a significant negative impact on our operations in Cripple Creek, Colorado. During the more than 15 days it took to contain the wildfires, more than 35,000 people in Colorado Springs, the metropolitan population which the casino primarily serves, had to be evacuated, and the main highway to the casino was clo! sed for a total of eight days. Still, we managed to increase earnings from operations by 74% and net earnings by 78% compared to the same period in 2011. The continued growth in our earnings per share, together with the new CAD 28 million credit agreement with the Bank of Montreal, give us support to actively pursue domestic and international casino opportunities." said Erwin Haitzmann and Peter Hoetzinger, Co Chief Executive Officers of Century Casinos.
Three and Six Months Ended June 30, 2012 Results*
Net operating revenue decreased by $0.2 million, or 1%, and increased $0.2 million, or 1%, for the three and six months ended June 30, 2012 compared to the three and six months ended June 30, 2011, respectively. Following is a summary of the changes in net operating revenue by property or category for the three and six months ended June 30, 2012 compared to the three and six months ended June 30, 2011:
Earnings from operations increased by a total of $0.7 million, or 74%, and $1.5 million, or 89%, for the three and six months ended June 30, 2012 compared to the three and six months ended June 30, 2011, respectively. Following is a summary of the change in earnings from operations by property or category for the three and six months ended June 30, 2012 compared to the three and six months ended June 30, 2011:
Net earnings increased by $0.5 million, or 78%, and $1.3 million, or 126%, for the three and six months ended June 30, 2012 compared to the three and six months ended June 30, 2011, respectively. Following is a summary of the changes in net earnings by property or category for the three and six months ended June 30, 2012 compared to the three and six months ended June 30, 2011:
Items deducted from or added to earnings from operations to arrive at net earnings include interest income, interest expense and gains/losses on foreign currency transactions.
Overall, the increase in earnings from operations and net earnings in the three and six months ended June 30, 2012 compared to the three and six months ended June 30, 2011 is due to increased efforts to attract customers and generate additional revenue and control costs at all properties and a decrease in depreciation expense due to fully depreciated assets in Edmonton and Central City.
Property and Category Results
The following table shows net operating revenue and Adjusted EBITDA** by property or category for the three and six months ended June 30, 2012 and June 30, 2011.
Balance Sheet and Liquidity
As of June 30, 2012, the Company had $19.7 million in cash and cash equivalents and $3.6 million in debt obligations on its balance sheet compared to $25.2 million in cash and cash equivalents and $9.1 million in debt obligations at December 31, 2011.
On May 23, 2012, the Company, through its Canadian subsidiaries entered into a CAD 28.0 million ($27.5 million) credit agreement with the Bank of Montreal. Proceeds from the BMO credit agreement were used to repay the Company's mortgage debt related to the Edmonton property and will also be used to pursue the development or acquisition of new gaming opportunities and for general corporate purposes. The BMO credit agreement has a term of five years and is guaranteed by the Company.
Conference Call Information
Today the Company will post a copy of the Form 10-Q filed with the SEC for the quarter ended June 30, 2012 on its website at http://corporate.cnty.com/investor-relations/sec-filings.
Century Casinos will host its second quarter 2012 earnings conference call August 8, 2012 at 11:00 am MDT; 7:00 pm CET, respectively. U.S. domestic participants should dial +1-800-894-5910. For all other international participants, please use +1-785-424-1052 to dial in. Participants may also listen to the call live or obtain a recording of the call on the Company's website at http://corporate.cnty.com/investor-relations/financial-results/.
*Amounts presented are rounded. As such, rounding differences could occur in period over period changes and percentages reported.
**Adjusted EBITDA is a Non-GAAP financial measure. See discussion and reconciliation of Non-GAAP financial measures in Supplemental Information below.
CENTURY CASINOS, INC. AND SUBSIDIARIES
The following tables show Adjusted EBITDA margins and Adjusted EBITDA to net earnings reconciliations by property or category. 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. A discussion of Adjusted EBITDA follows the tables.
* The Company defines Adjusted EBITDA as net earnings (loss) before interest, income taxes, depreciation, amortization, pre-opening expenses, non-cash stock based compensation charges, asset impairment costs, gains (losses) on disposition of fixed assets, discontinued operations, realized foreign currency gains (losses) and certain other one-time items. 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 and Adjusted EBITDA reported for each property. Not all of the aforementioned items occur in each reporting period, but have been included in the definition based on historica! l activity. These adjustments have no effect on the consolidated results as reported under accounting principles generally accepted in the United States of America ("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 its properties and the Company. 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. EBITDA (Earnings before interest, taxes, depreciation and amortization) is used by the Company's lending institution to gau! ge operating performance. The Company's computation of Adj! usted EB ITDA 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) above.
CENTURY CASINOS, INC. AND SUBSIDIARIES
About Century Casinos, Inc.:
For more information about Century Casinos, visit our website at www.centurycasinos.com. Century Casinos' common stock trades on The NASDAQ Capital MarketÂ® and the Vienna Stock Exchange under the symbol CNTY.
This release may contain "forward-looking statements" within the meaning of Section 27A of the Security 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, operating efficiencies, synergies and operational performance, economic improvements in 2012 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 statement! s 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, 2011. 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.
Company Codes: NASDAQ-SMALL:CNTY, Vienna:CNTY