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Century Casinos, Inc. Announces First Quarter 2013 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.
"We posted excellent results in the first quarter. Specifically, earnings from operations and Adjusted EBITDA increased significantly for the three months ended March 31, 2013 compared to the same period in 2012. Our property in Edmonton, Canada , led the way with a 9% increase in net operating revenue and an Adjusted EBITDA margin of 37%. We now own a 66.66% controlling majority of Casinos Poland Ltd., the market share leader in Poland 's casino industry, and are excited about the growth potential this brings for our company," said Erwin Haitzmann and Peter Hoetzinger, Co Chief Executive Officers of Century Casinos.
Net operating revenue increased by $0.4 million , or 2%, for the three months ended March 31, 2013 compared to the three months ended March 31, 2012 . Following is a summary of the change in net operating revenue by property or category for the three months ended March 31, 2013 compared to the three months ended March 31, 2012 :
Earnings from operations increased by $0.5 million , or 30%, for the three months ended March 31, 2013 compared to the three months ended March 31, 2012 . Following is a summary of the change in earnings from operations by property or category for the three months ended March 31, 2013 compared to the three months ended March 31, 2012 :
Net earnings increased by $0.5 million , or 47%, for the three months ended March 31, 2013 compared to the three months ended March 31, 2012 . Following is a summary of the change in net earnings by property or category for the three months ended March 31, 2013 compared to the three months ended March 31, 2012 :
Items deducted from or added to earnings from operations to arrive at net earnings include interest income, interest expense, gains/losses on foreign currency transactions and income tax expense or benefit.
Overall, the increase in earnings from operations and net earnings in the three months ended March 31, 2013 compared to the three months ended March 31, 2012 was due to increased efforts to attract customers and generate additional revenue while controlling costs.
The following are property and category results for net operating revenue and Adjusted EBITDA.
Balance Sheet and Liquidity
As of March 31, 2013 , the Company had $32.1 million in cash and cash equivalents and $10.6 million in debt obligations on its balance sheet compared to $24.7 million in cash and cash equivalents and $3.6 million in debt obligations at December 31, 2012 . On February 21, 2013 , the Company borrowed an additional $7.3 million from its Bank of Montreal credit agreement to pay for the additional 33.3% investment in CPL, which closed on April 8, 2013 . The credit agreement has a term of five years and is guaranteed by the Company. Once repaid, these amounts cannot be reborrowed. As of March 31, 2013 , the Company had approximately $14.9 million available for borrowing under the credit agreement.
Today the Company will post a copy of the Form 10-Q filed with the SEC for the quarter ended March 31, 2013 on its website at http://corporate.cnty.com/investor-relations/sec-filings.
Century Casinos will host its first quarter 2013 earnings conference call May 15, 2013 at 10:00 am MDT ; 6:00 pm CET , respectively. U.S. domestic participants should dial +1-888-395-3227. For all other international participants, please use +0800-293-5500 to dial in. Participants may also listen to the call live or obtain a recording of the call on the Company's website until May 29, 2013 at http://corporate.cnty.com/investor-relations/sec-filings.
* The Company defines 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 historical 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 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) above.
** The Company defines 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, Inc. is an international casino entertainment company that owns and operates Century Casino & Hotels in Cripple Creek and Central City, Colorado , and in Edmonton, Alberta, Canada and the Century Casino in Calgary, Alberta, Canada . The Company also operates casinos aboard twelve luxury cruise vessels (Regatta, Nautica, Marina, Riviera, Mein Schiff 1, Mein Schiff 2, Wind Surf, Wind Star, Wind Spirit, Seven Seas Voyager, Seven Seas Mariner and Seven Seas Navigator). Through its Austrian subsidiary, Century Casinos Europe GmbH, the Company holds a 66.6% ownership interest in Casinos Poland Ltd., the owner and operator of ten casinos in Poland . The Company also manages the operations of the casino at the Radisson Aruba Resort, Casino & Spa in Aruba , Caribbean . Century Casinos, Inc. continues to pursue other international projects in various stages of development.
For more information about Century Casinos, visit our website at www.centurycasinos.com. Century Casinos' common stock trades on The NASDAQ Capital Market® and the Vienna Stock Exchange under the symbol CNTY.