Century Casinos(US:CNTY)2024-08-07 21:56Financial 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]