Summary of Century Casinos' Quarterly Performance Core Insights - Century Casinos reported a quarterly loss of $0.26 per share, which was better than the Zacks Consensus Estimate of a loss of $0.28, and an improvement from a loss of $0.47 per share a year ago [1] - The company generated revenues of $155.7 million for the quarter ended September 2024, missing the Zacks Consensus Estimate by 1.52% and down from $161.18 million year-over-year [2] - The stock has underperformed significantly, losing about 32.2% since the beginning of the year compared to the S&P 500's gain of 20.1% [3] Financial Performance - The earnings surprise for the recent quarter was 7.14%, while the previous quarter saw a significant miss with an actual loss of $1.36 against an expected loss of $0.40, resulting in a surprise of -240% [1][2] - Over the last four quarters, Century Casinos has surpassed consensus EPS estimates two times and topped revenue estimates only once [2] Future Outlook - The current consensus EPS estimate for the upcoming quarter is -$0.25 on revenues of $158.1 million, and for the current fiscal year, it is -$2.33 on revenues of $598.7 million [7] - The estimate revisions trend for Century Casinos is mixed, leading to a Zacks Rank 3 (Hold), indicating expected performance in line with the market [6] Industry Context - The Gaming industry, to which Century Casinos belongs, is currently ranked in the bottom 39% of over 250 Zacks industries, suggesting potential challenges ahead [8] - The performance of Century Casinos may also be influenced by the upcoming results of Red Rock Resorts, another company in the same industry, which is expected to report a quarterly earnings decline of 38.3% [9]

Financial Performance - Net operating revenue for Q3 2024 was $155.7 million, a decrease of 3% compared to Q3 2023[2] - Earnings from operations increased by 24% to $17.9 million in Q3 2024 compared to Q3 2023[2] - Net loss attributable to Century Casinos, Inc. shareholders decreased by 43% to ($8.1) million, with a basic net loss per share of ($0.26) in Q3 2024[2] - Adjusted EBITDAR for Q3 2024 was $32.9 million, a decrease of 1% from Q3 2023[2] - Net operating revenue for Q3 2024 was $155.7 million, a decrease of 3.0% from $161.2 million in Q3 2023[15] - Total operating costs and expenses decreased to $137.8 million in Q3 2024, down 6.1% from $146.7 million in Q3 2023[15] - Net loss attributable to Century Casinos, Inc. shareholders for Q3 2024 was $8.1 million, an improvement from a net loss of $14.2 million in Q3 2023[15] - Adjusted EBITDAR for Q3 2024 was $29.2 million, compared to $33.3 million in Q3 2023, reflecting a decrease of 11.5%[19] - Net loss per share attributable to Century Casinos, Inc. shareholders for Q3 2024 was $(0.26), an improvement from $(0.47) in Q3 2023[15] - For the nine months ended September 30, 2024, net loss attributable to Century Casinos, Inc. shareholders was $63.3 million, compared to a loss of $17.4 million for the same period in 2023[23] Assets and Liabilities - Cash and cash equivalents decreased to $118.8 million as of September 30, 2024, down from $171.3 million at the end of 2023[11] - Outstanding debt as of September 30, 2024, was $339.6 million, a decrease from $346.8 million at the end of 2023[11] - Total assets as of September 30, 2024, were $1.3 billion, down from $1.4 billion as of December 31, 2023[16] - Current liabilities decreased to $86.8 million as of September 30, 2024, from $93.6 million at the end of 2023[16] Segment Performance - The United States segment reported net operating revenue of $117.1 million for Q3 2024, a slight increase from $116.9 million in Q3 2023[7] - Canada segment reported net operating revenue of $20,921 thousand for the three months ended September 30, 2023, with a net earnings margin of (8%) and an adjusted EBITDAR margin of 23%[26] - Poland segment's net operating revenue for the three months ended September 30, 2023, was $23,397 thousand, with a net earnings margin of 3%[26] Future Plans and Developments - The new land-based casino and hotel in Caruthersville, Missouri opened on November 1, 2024, costing approximately $51.9 million and increasing gaming positions by 50%[4] - The Wroclaw casino in Poland reopened on October 24, 2024, which is expected to reduce disruptions in the Poland segment[3] - Century Casinos, Inc. plans to continue focusing on market expansion and new product development to drive future growth[19] - Century Casinos is focused on the licensing and reopening of its casinos in Poland, with expectations for growth in this segment moving forward[39] - Century Casinos is preparing for future results and expectations for 2024 and 2025, indicating a long-term growth strategy[39] Expenses and Financial Obligations - The Company recorded a valuation allowance on net deferred tax assets resulting in a tax expense of $23.8 million during Q2 2024[9] - Interest expense related to credit agreements for the nine months ended September 30, 2023, was $29,601 thousand, compared to $29,054 thousand in the same period of 2022[27] - Cash rent payments for the three months ended September 30, 2024, were $13,190 thousand, an increase from $11,923 thousand in the same period of 2023[29] - The company has obligations under the Goldman Credit Agreement and its Master Lease, impacting its financial strategy and debt repayment plans[39] Shareholder Information - The company reported a total of 30.7 million weighted average common shares for both basic and diluted calculations in Q3 2024[15] - Net earnings attributable to Century Casinos, Inc. shareholders for the nine months ended September 30, 2023, were $(17,377) thousand, with a significant interest expense of $67,099 thousand[24] - Adjusted EBITDAR for the nine months ended September 30, 2023, was $88,686 thousand, with a margin of 19%[26]

Financial Performance - Gaming revenue for Q3 2024 was $105.45 million, a decrease of $5.78 million or 5.2% compared to Q3 2023[1]. - Net operating revenue for the nine months ended September 30, 2024, increased by $31.7 million or 7.8% to $438.15 million compared to the same period in 2023[1]. - Hotel revenue for Q3 2024 was $15.35 million, down $0.59 million or 3.7% from Q3 2023, while food and beverage revenue increased by $0.14 million or 0.7% to $18.63 million[1]. - Net loss attributable to Century Casinos, Inc. shareholders for Q3 2024 was $8.12 million, a decrease of $6.06 million or 42.7% compared to Q3 2023[1]. - The Nugget acquisition contributed $29.2 million in net operating revenue and $0.7 million in net earnings for Q3 2024[190]. - Rocky Gap operations generated $18.7 million in net operating revenue but incurred a net loss of $1.8 million for Q3 2024[191]. - Interest expense increased by $1.7 million for Q3 2024 compared to Q3 2023, primarily due to the addition of Rocky Gap and increased interest rates[192]. - Net operating revenue in the United States increased by $0.3 million or 0.2% for Q3 2024, while Canada saw a decrease of $0.6 million or 3.1%[199]. - The company experienced a 21.8% decrease in net operating revenue from Poland for Q3 2024, amounting to a decline of $5.1 million[199]. - Earnings from operations increased by $3.5 million, or 23.9%, for the three months ended September 30, 2024 compared to the same period in 2023[201]. - Adjusted EBITDAR for the three months ended September 30, 2024 was $32.9 million, compared to $33.3 million for the same period in 2023[212]. - Net earnings attributable to Century Casinos, Inc. shareholders for the nine months ended September 30, 2024, were $17,026,000, compared to a loss of $40,334,000 in the same period of 2023, representing a significant improvement[216]. - Total long-term debt as of September 30, 2024, was $327,493,000, down from $333,086,000 a year earlier, indicating a reduction in debt levels[219]. - Net Debt increased to $220,850,000 as of September 30, 2024, compared to $158,918,000 in the previous year, reflecting a decrease in cash and cash equivalents[219]. - Gaming revenue for the nine months ended September 30, 2024, was $222,094,000, an increase of 11.0% from $200,089,000 in the same period of 2023[220]. - Adjusted EBITDAR for the nine months ended September 30, 2024, was $88,686,000, compared to $76,086,000 in the previous year, showing a year-over-year increase[216]. Operational Developments - The company reported a project cost of approximately $51.9 million for the new land-based casino in Caruthersville, Missouri, which opened on November 1, 2024[182]. - The company opened a 69-room hotel called The Riverview at its Cape Girardeau location on April 4, 2024, with a project cost of approximately $30.5 million[183]. - The new land-based casino and hotel in Caruthersville opened on November 1, 2024, featuring 599 slot machines and nine live table games, marking a 50% increase in gaming positions[220]. - The Riverview in Cape Girardeau, opened in April 2024, is a six-story building with 69 rooms, enhancing the company's hospitality offerings[221]. - The company began consolidating Nugget and Smooth Bourbon in the United States segment on April 3, 2023, following the Nugget Acquisition, and Rocky Gap on July 25, 2023, after the Rocky Gap Acquisition[222]. - A petition campaign in Missouri to allow sports wagering will appear on the November 2024 ballot, which could lead to legalization by mid-2025, potentially expanding the company's gaming operations[223]. - The company closed the Krakow casino in May 2024 and the LIM Center casino in Warsaw in July 2024 due to the expiration of gaming licenses[174]. - The company closed its Wroclaw casino in November 2023 due to the expiration of the gaming license but reopened it at a new location on October 24, 2024[252]. Market Conditions - The average exchange rate for the Canadian dollar (CAD) was 1.3641 for the three months ended September 30, 2024, reflecting a 1.7% decrease compared to the previous year[186]. - The company reported a 5.7% increase in the average exchange rate for the Polish zloty (PLN) to 3.9007 for the three months ended September 30, 2024[186]. - The average exchange rate between the US dollar and Polish zloty increased by 5.7% and 6.4% for the three and nine months ended September 30, 2024, respectively, impacting results[253]. - The company anticipates that worsening economic conditions could reduce consumer discretionary spending, impacting net income and cash flows[178]. - The company anticipates potential negative impacts on operations due to increased competition in both the Central City and Edmonton markets[226][243]. Cash Flow and Investments - Cash, cash equivalents, and restricted cash as of September 30, 2024, totaled $119,101,000, down from $189,243,000 in 2023[274]. - Net cash used in investing activities for the nine months ended September 30, 2024, was $46,258,000 compared to $189,370,000 in 2023, indicating a significant decrease[274]. - Interest income for the nine months ended September 30, 2024, was $2,110,000, a substantial increase of 520.6% from $340,000 in 2023[266]. - Interest expense for the nine months ended September 30, 2024, was $77,426,000, up from $67,439,000 in 2023, marking a 14.8% increase[266]. - Cash flows from operations decreased primarily due to $12.2 million in income tax payments related to the Canada Real Estate Sale[275]. - Cost recovery income of $1.1 million was received by CDR for the nine months ended September 30, 2024, related to infrastructure built during the development of the Century Downs REC project[270]. - As of September 30, 2024, total debt was $327.5 million, with long-term debt at $322.5 million and a current portion of $5.0 million[281]. - Estimated cash payments due under the Master Lease for the remainder of 2024 are $14.2 million, including a CPI increase[283]. - The company had $118.8 million in cash and cash equivalents as of September 30, 2024, down from $171.3 million at the end of 2023[289]. - Planned capital expenditures for the remainder of 2024 include approximately $7.6 million in gaming equipment and renovations[290]. - The company has a shelf registration statement effective for issuing up to $100 million in various securities[291]. - Approximately $68.2 million of the total $118.8 million in cash and cash equivalents is held by foreign subsidiaries and not available for US operations unless repatriated[293]. - The company did not repurchase any common stock during the nine months ended September 30, 2024, leaving $14.7 million remaining under the repurchase program[288].

Core Points - Century Casinos, Inc. announced the opening of its new land-based casino and hotel in Caruthersville, Missouri on November 1, 2024 [1] - The Missouri Gaming Commission approved the move of the gaming license from the temporary location to the new casino [1] Group 1 - The new Century Casino & Hotel Caruthersville will feature 599 slot machines and nine live table games, representing a 50% increase in gaming positions compared to the temporary location [2] - The number of hotel rooms will double to 74 [2] - The construction of the new facility began in December 2022, with an estimated project cost of $51.9 million, funded by VICI Properties Inc. [2] Group 2 - VICI Properties Inc. will own the real estate improvements associated with the Caruthersville project, which will be included in the Company's triple net master lease agreement with VICI subsidiaries [2] - Annual rent under the lease will increase by approximately $4.2 million [2] - A ribbon-cutting event will take place at 11:30 a.m. Central Time on November 1, followed by various activities over the opening weekend [2] Group 3 - Century Casinos operates multiple segments across the United States, including locations in West Virginia, Maryland, Missouri, Colorado, and Nevada, as well as casinos in Canada and Poland [3]

Financial Data and Key Metrics Changes - The company reported net revenue of $146 million for Q2 2024, a 7% increase compared to Q2 2023, driven by the addition of Rocky Gap in Maryland and strong performance in Canada [3] - Adjusted EBITDAR was $27 million, down 6% year-over-year, impacted by construction disruptions and temporary closures in Poland [3][4] - Traditional net leverage stood at 4.6x, while lease adjusted net leverage was 6.5x, elevated due to recent acquisitions and investments [13] Business Line Data and Key Metrics Changes - The Midwest segment, including Missouri and Colorado, saw a 4% increase in revenue, but EBITDAR decreased by 5% due to construction disruptions [5] - The East segment, which includes the newly acquired Rocky Gap Casino Resort, experienced a 60% increase in revenue and nearly doubled EBITDAR [8] - The West segment, particularly the Nugget Casino Resort in Reno, faced a disappointing 23% revenue decline, attributed to renovation disruptions and lower slot hold [9][10] Market Data and Key Metrics Changes - Revenue in Canada grew by 5% with EBITDAR up 7%, supported by strong performance in Alberta [11] - Two casinos in Poland remained closed during the quarter, significantly impacting revenues, but are expected to reopen in October [12] - The company noted a 10% decline in non-rated play across its portfolio, primarily due to macroeconomic factors affecting lower-end customers [4] Company Strategy and Development Direction - The company is focused on operational discipline and efficiency improvements, particularly at the Nugget, while also planning to generate cash for potential stock buybacks and deleveraging [15][27] - A new land-based facility in Caruthersville is set to open in mid-November, expected to enhance operational efficiencies and increase revenue [6][14] - The company is considering entering the online gaming space to capture players lost to iGaming states [36] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future performance, anticipating improved cash flow and revenue growth from upcoming casino openings in Poland and Caruthersville [15][16] - The management acknowledged the challenges faced in the current economic environment but believes the worst is behind them, with expectations for consumer sentiment to improve as interest rates decrease [30][31] - The company is reassessing its portfolio, particularly regarding the sale of Polish operations, and is open to divesting underperforming assets [32][34] Other Important Information - The company ended the quarter with $123 million in cash and cash equivalents, and $342 million in outstanding debt, resulting in net debt of $219 million [12] - CapEx for the quarter was approximately $13 million, with expectations to decrease to about $12 million next year, which will enhance free cash flow [14] Q&A Session Summary Question: Can you walk through the changes to the 2024 and 2025 revenue and margin expectations? - Management indicated that the primary driver for revisions was the performance of the Nugget Casino and market conditions in Poland [18][19] Question: Is the unrated decline weakening, and when do easier comps begin? - Management believes the worst is behind them but is awaiting interest rate reductions to improve consumer sentiment [30][31] Question: What is the outlook for the convention business at the Nugget? - Management stated it is too early to provide specific numbers but indicated a friendly outlook for future bookings [41] Question: What is the current state of the Reno market? - The Reno market is highly competitive, with recent weakness in the hotel market attributed to the economic situation [43] Question: What is the company's strategy regarding acquisitions and improvements? - The company focuses on acquiring undervalued properties and improving them, as demonstrated by past successes [44][45]

Financial Performance - Century Casinos reported a quarterly loss of $1.36 per share, significantly worse than the Zacks Consensus Estimate of a loss of $0.40, marking an earnings surprise of -240% [1] - The company's revenues for the quarter ended June 2024 were $146.44 million, missing the Zacks Consensus Estimate by 5.28%, but showing an increase from $136.76 million year-over-year [2] - Over the last four quarters, Century Casinos has surpassed consensus EPS estimates only once [2] Stock Performance - Century Casinos shares have declined approximately 51.6% since the beginning of the year, contrasting with the S&P 500's gain of 9% [3] - The current consensus EPS estimate for the upcoming quarter is -$0.19 on revenues of $165.7 million, and for the current fiscal year, it is -$1.25 on revenues of $613.6 million [7] Industry Outlook - The Gaming industry, to which Century Casinos belongs, is currently ranked in the top 39% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact Century Casinos' stock performance [5]

Financial Performance - Net operating revenue for Q2 2024 was $146.4 million, a 7% increase compared to Q2 2023[2] - Earnings from operations decreased by 23% to $14.3 million in Q2 2024[2] - Net loss attributable to Century Casinos, Inc. shareholders was $41.6 million, representing a 2024% increase in loss compared to the previous year[5] - Adjusted EBITDAR for Q2 2024 was $27.4 million, down 6% from Q2 2023[2] - The company experienced a significant decline in net loss attributable to shareholders, with a 1623% increase in loss for the six months ended June 30, 2024, compared to the same period in 2023[8] - The company reported net operating revenue of $146.4 million for Q2 2024, a 7.3% increase from $136.8 million in Q2 2023[13] - Total operating costs and expenses for Q2 2024 were $132.2 million, compared to $118.2 million in Q2 2023, reflecting a 11.9% increase[13] - The company incurred a net loss attributable to shareholders of $41.6 million in Q2 2024, compared to a net loss of $1.96 million in Q2 2023[13] - Adjusted EBITDAR for Q2 2024 was $27.4 million, compared to $29.3 million in Q2 2023, indicating a decrease of 6.4%[17] - For the six months ended June 30, 2024, Century Casinos reported a net loss attributable to shareholders of $55,157,000, compared to a net loss of $3,202,000 for the same period in 2023[21] - Adjusted EBITDAR for the six months ended June 30, 2024, was $48,697,000, while for the same period in 2023, it was $55,340,000, indicating a decrease of approximately 12%[21] - The company's total interest expense for the six months ended June 30, 2024, was $50,211,000, up from $35,732,000 in the same period of 2023, reflecting an increase of approximately 40%[25] Tax and Financial Obligations - The company recorded a valuation allowance on its US deferred tax assets, resulting in a tax expense of $23.8 million for Q2 2024[8] - The company's outstanding debt as of June 30, 2024, was $341.6 million, slightly down from $346.8 million at December 31, 2023[10] - The company has a long-term financing obligation of $653.8 million under its Master Lease[10] - Century Casinos' interest expense related to VICI Financing Obligation increased significantly to $30,374,000 for the six months ended June 30, 2024, compared to $14,418,000 in the same period of 2023[25] - The Master Lease payments for the three months ended June 30, 2024, amounted to $15,195,000, compared to $6,866,000 for the same period in 2023[26] Capital Expenditures and Projects - The new land-based casino in Caruthersville, Missouri is projected to increase gaming positions and hotel rooms by approximately 50%[3] - The estimated project cost for the Caruthersville casino is $51.9 million, with completion expected ahead of schedule in mid-November 2024[4] - Renovations for a new casino in Wroclaw, Poland are ongoing, with an expected opening in October 2024[4] - Total capital expenditures are projected to be approximately $12.6 million for the remainder of 2024 and $12.0 million in 2025[3] - Century Casinos is actively pursuing various projects in different stages of development, including the Caruthersville construction project and reopening casinos in Poland[36] Cash and Assets - As of June 30, 2024, the company had $123.2 million in cash and cash equivalents, down from $171.3 million at December 31, 2023, primarily due to $12.2 million in tax payments and $34.3 million in property and equipment purchases[10] - Current assets decreased to $162.0 million as of June 30, 2024, from $207.0 million at December 31, 2023[14] - The company's total assets decreased to $1.30 billion as of June 30, 2024, from $1.36 billion at December 31, 2023[14] Operational Segments - Net operating revenue for the United States segment for the six months ended June 30, 2024, was $202,543,000, with a net income margin of -20%[24] - In Canada, net operating revenue for the six months ended June 30, 2024, was $38,153,000, with a net income margin of 6%[24] - The Poland segment reported net operating revenue of $41,742,000 for the six months ended June 30, 2024, with a net income margin of -3%[24] - The company operates multiple segments across the United States, including casinos in West Virginia, Maryland, Missouri, Colorado, and Nevada, as well as operations in Canada and Poland[34] Miscellaneous - The company will host its Q2 2024 earnings conference call on August 8, 2024, at 10:00 am EDT[11] - The company incurred acquisition costs of $19,000 during the six months ended June 30, 2024[21] - The company reported a non-cash stock-based compensation of $846,000 for the six months ended June 30, 2024[21] - Century Casinos defines Adjusted EBITDAR margin as Adjusted EBITDAR divided by net operating revenue, which is a non-US GAAP measure used to evaluate casino operations efficiency[33] - The company is subject to risks and uncertainties that could cause actual results to differ materially from forward-looking statements, including legal proceedings and tax liabilities[36] - Century Casinos' common stock trades on The Nasdaq Capital Market under the symbol CNTY[35]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q þ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2024 OR ¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ____________ to ___________ Commission file number 0-22900 CENTURY CASINOS, INC. (Exact name of registrant as specified in its charter) DELAWARE 84-1271317 (State or othe ...

COLORADO SPRINGS, Colo., July 31, 2024 /PRNewswire/ -- Century Casinos, Inc. (Nasdaq Capital Market®: CNTY) announced today that the Company will release its earnings for the second quarter of 2024 on Thursday, August 8, 2024. On Thursday, August 8, 2024, Century Casinos will host its Q2 2024 Earnings Conference Call at 8:00 am MDT (10:00 am EDT). Participants are advised to dial in 15 minutes in advance. US domestic and Canadian participants please dial 1-800-343-4136 all other international participants p ...

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