PR Newswire | Aug 6, 2021 06:01AM EDT

08/06 05:00 CDT

Century Casinos, Inc. Announces Second Quarter 2021 Results COLORADO SPRINGS, Colo., Aug. 6, 2021

COLORADO SPRINGS, Colo., Aug. 6, 2021 /PRNewswire/ -- Century Casinos, Inc. (Nasdaq Capital Market(r): 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 UPDATEIn 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.

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 inthousands, ended June 30, ended June 30,except pershare data

Consolidated 2021 2020 % Change 2021 2020 % ChangeResults:

Net Operating $ 92,185 $ 36,103 155% $ 164,599 $ 123,760 33%Revenue

Earnings(Loss) from 18,112 (2,114) 957% 26,361 (33,887) 178%Operations

Net Earnings(Loss)Attributable $ 6,855 $ (12,607) 154% $ 5,436 $ (58,463) 109%to CenturyCasinos, Inc.Shareholders

Adjusted $ 25,238 $ (1,762) 1532% $ 39,983 $ 7,822 411%EBITDA**

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

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 2021 2020 Change Change 2021 2020 Change Changethousands

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 138 162 (24) (15%) 262 1,143 (881) (77%)Other

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 2021 2020 Change Change 2021 2020 Change Changethousands

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 (2,995) 4,633 (7,628) (165%) (5,091) (659) (4,432) (673%)Other

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 2021 2020 Change Change 2021 2020 Change Changethousands

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 (7,084) 691 (7,775) (1125%) (13,747) (7,599) (6,148) (81%)Other

Consolidated $ 6,855 $ (12,607) $ 19,462 154% $ 5,436 $ (58,463) $ 63,899 109%

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 2021 2020 Change Change 2021 2020 Change Changethousands

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 (2,606) (2,381) (225) (9%) (4,935) (5,646) 711 13%Other

Consolidated $ 25,238 $ (1,762) $ 27,000 1532% $ 39,983 $ 7,822 $ 32,161 411%

BALANCE SHEET AND LIQUIDITYAs 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 INFORMATIONToday 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.*** The Company defines book value per share as total Century Casinos, Inc. shareholders' equity divided by outstanding common shares.

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 2021 2020 2021 2020for per share information

Operating revenue:

Net operating revenue $ 92,185 $ 36,103 $ 164,599 $ 123,760

Operating costs and expenses:

Total operating costs and 74,073 38,217 138,238 157,647expenses

Earnings (loss) from operations 18,112 (2,114) 26,361 (33,887)

Non-operating (expense) income, (10,720) (10,501) (20,773) (21,865)net

Earnings (loss) before income 7,392 (12,615) 5,588 (55,752)taxes

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 583 590 1,067 395non-controlling interests

Net earnings (loss)attributable to Century $ 6,855 $ (12,607) $ 5,436 $ (58,463)Casinos, Inc. shareholders

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

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 toCentury Casinos, Inc. Shareholders by Reportable Segment.

For the three months ended June 30, 2021

Amounts in thousands United Canada Poland Corporate Total States and Other

Net earnings (loss)attributable to Century $ 16,502 $ (1,525) $ (1,038) $ (7,084) $ 6,855Casinos, Inc.shareholders

Interest expense 7,027 396 11 3,253 10,687(income), net ^(1)

Income taxes (benefit) - 572 (283) 831 1,120

Depreciation and 4,509 1,251 768 105 6,633amortization

Net loss attributable tonon-controlling - (65) (518) - (583)interests

Non-cash stock-based - - - 323 323compensation

Loss on foreign currencytransactions, cost - 10 18 5 33recovery income andother

Loss (gain) ondisposition of fixed 209 - - (39) 170assets

Adjusted EBITDA $ 28,247 $ 639 $ (1,042) $ (2,606) $ 25,238

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(1) 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.

CENTURY CASINOS, INC. AND SUBSIDIARIES

UNAUDITED SUPPLEMENTAL INFORMATION

Reconciliation of Adjusted EBITDA* to Net (Loss) Earnings Attributable toCentury Casinos, Inc. Shareholders by Reportable Segment.

For the three months ended June 30, 2020

Amounts in thousands United Canada Poland Corporate Total States and Other

Net (loss) earningsattributable to $ (10,271) $ (1,781) $ (1,246) $ 691 $ (12,607)Century Casinos,Inc. shareholders

Interest expense 6,954 435 (14) 3,204 10,579(income), net ^(1)

Income (benefit) - (44) (292) 918 582taxes

Depreciation and 4,246 1,289 735 135 6,405amortization

Net earnings (loss)attributable to - 34 (624) - (590)non-controllinginterests

Non-cash stock-based - - - 249 249compensation

Loss (gain) onforeign currency - 135 (25) (7,631) (7,521)transactions andcost recovery income

Impairment -intangible and 1,157 - - - 1,157tangible assets ^(2)

Gain on disposition - (69) - - (69)of fixed assets

Acquisition costs - - - 53 53

Adjusted EBITDA $ 2,086 $ (1) $ (1,466) $ (2,381) $ (1,762)

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(1) 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.

CENTURY CASINOS, INC. AND SUBSIDIARIES

UNAUDITED SUPPLEMENTAL INFORMATION

Reconciliation of Adjusted EBITDA* to Net Earnings (Loss) Attributable toCentury Casinos, Inc. Shareholders by Reportable Segment.

For the six months ended June 30, 2021

Amounts in thousands United Canada Poland Corporate Total States and Other

Net earnings (loss)attributable to Century $ 27,096 $ (5,040) $ (2,873) $ (13,747) $ 5,436Casinos, Inc.shareholders

Interest expense 13,962 703 15 6,530 21,210(income), net ^(1)

Income taxes (benefit) - 163 (889) 1,945 1,219

Depreciation and 9,036 2,473 1,562 205 13,276amortization

Net earnings (loss)attributable to - 367 (1,434) - (1,067)non-controllinginterests

Non-cash stock-based - - - 582 582compensation

(Gain) loss on foreigncurrency transactions, - (548) 11 (411) (948)cost recovery incomeand other

Loss (gain) ondisposition of fixed 282 32 - (39) 275assets

Adjusted EBITDA $ 50,376 $ (1,850) $ (3,608) $ (4,935) $ 39,983

Expense of $14.0 million related to the Master Lease is included in interest expense (income), net in the United States segment. Expense of(1) $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.

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 Canada Poland Corporate Total States and Other

Net loss attributableto Century Casinos, $ (43,659) $ (5,987) $ (1,218) $ (7,599) $ (58,463)Inc. shareholders

Interest expense 14,235 979 17 6,713 21,944(income), net ^(1)

Income taxes (benefit) 1,023 1,813 (247) 517 3,106

Depreciation and 8,505 2,628 1,501 265 12,899amortization

Net earnings (loss)attributable to - 214 (609) - (395)non-controllinginterests

Non-cash stock-based - - - 236 236compensation

Loss (gain) on foreigncurrency transactions - 72 147 (7,046) (6,827)and cost recoveryincome

Impairment -intangible and 30,746 3,375 - 1,000 35,121tangible assets ^(2)

(Gain) loss ondisposition of fixed - (69) 2 2 (65)assets

Acquisition costs - - - 266 266

Adjusted EBITDA $ 10,850 $ 3,025 $ (407) $ (5,646) $ 7,822

Expense of $14.2 million related to the Master Lease is included in interest expense (income), net in the United States segment. Expense of(1) $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.

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(2) 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.

CENTURY CASINOS, INC. AND SUBSIDIARIESUNAUDITED SUPPLEMENTAL INFORMATION* The Company definesAdjusted EBITDAas 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(r) under the symbol CNTY.

For more information about Century Casinos, visit our website at www.cnty.com.

CENTURY CASINOS, INC. AND SUBSIDIARIESUNAUDITED SUPPLEMENTAL INFORMATIONThis 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.

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