Century Casinos(CNTY) - 2025 Q2 - Quarterly Results

Second Quarter 2025 Financial & Operational Highlights Century Casinos reported a 3% increase in net operating revenue and a 10% rise in Adjusted EBITDAR for Q2 2025, while the Board initiated a strategic review to enhance shareholder value Key Financial Results Q2 2025 saw net operating revenue increase 3% to $150.8 million, earnings from operations grow 16%, and Adjusted EBITDAR rise 10% Q2 2025 Financial Highlights (vs. Q2 2024) | Metric | Q2 2025 | Change vs Q2 2024 | | :--- | :--- | :--- | | Net Operating Revenue (in millions) | $150.8 | +3% | | Earnings from Operations (in millions) | $16.6 | +16% | | Net Loss Attributable to Shareholders (in millions) | ($12.3) | 70% decrease in loss | | Basic Net Loss per Share (USD) | ($0.40) | 71% decrease in loss | | Adjusted EBITDAR (in millions) | $30.3 | +10% | Strategic & Operational Updates The company launched a strategic review to maximize shareholder value, formed a BetMGM partnership for Missouri online sports betting, and saw strong results from the new Caruthersville property - The Board of Directors has initiated a strategic review to explore alternatives such as optimizing the capital structure, potential mergers, strategic partnerships, asset divestments, or the sale of the Company to enhance shareholder value[2][7] - A partnership was formed with BetMGM for online and mobile sports betting in Missouri, which includes a revenue sharing agreement with a guaranteed minimum for the company[4] - The new Caruthersville, Missouri casino and hotel, opened in November 2024, has seen net operating revenue and Adjusted EBITDAR increase by 26% and 31%, respectively[5] - In Poland, the company was awarded a new casino license in Wroclaw (expected to open Q4 2025) but closed a casino in Warsaw after failing to receive a new license for that location[6] Financial Results Analysis For Q2 2025, consolidated net operating revenue grew 3% year-over-year, driven by Poland's 23% increase, while US revenue was flat and Canada rose 1% Consolidated Performance Q2 2025 consolidated net operating revenue increased 3% to $150.8 million, earnings from operations rose 16% to $16.6 million, and net loss attributable to shareholders improved 70% Consolidated Financial Results (in thousands) | Metric | Q2 2025 | Q2 2024 | % Change | H1 2025 | H1 2024 | % Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Net Operating Revenue | $150,818 | $146,435 | 3% | $281,261 | $282,451 | 0% | | Earnings from Operations | $16,575 | $14,261 | 16% | $23,715 | $22,547 | 5% | | Net Loss Attributable to Shareholders | ($12,309) | ($41,613) | 70% | ($32,922) | ($55,157) | 40% | | Adjusted EBITDAR** | $30,304 | $27,448 | 10% | $50,459 | $48,697 | 4% | | Basic Net Loss per Share | ($0.40) | ($1.36) | 71% | ($1.08) | ($1.81) | 40% | Performance by Reportable Segment Poland was the main Q2 2025 growth driver, with revenue up 23% to $24.7 million and Adjusted EBITDAR up 332% to $1.9 million, while US and Canada segments saw modest changes Q2 2025 Net Operating Revenue by Segment (in thousands) | Segment | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | United States | $106,104 | $106,515 | 0% | | Canada | $20,005 | $19,827 | 1% | | Poland | $24,709 | $20,093 | 23% | | Consolidated | $150,818 | $146,435 | 3% | Q2 2025 Earnings from Operations by Segment (in thousands) | Segment | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | United States | $14,729 | $14,102 | 4% | | Canada | $4,533 | $4,362 | 4% | | Poland | $464 | ($181) | 356% | | Consolidated | $16,575 | $14,261 | 16% | Q2 2025 Adjusted EBITDAR by Segment (in thousands) | Segment | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | United States | $25,693 | $25,037 | 3% | | Canada | $5,607 | $5,451 | 3% | | Poland | $1,942 | $450 | 332% | | Consolidated | $30,304 | $27,448 | 10% | Balance Sheet and Liquidity As of June 30, 2025, cash was $85.5 million (down from $98.8 million), primarily due to $12.5 million in capital expenditures, with total outstanding debt at $338.1 million Cash and Debt Position The company's cash stood at $85.5 million at Q2 2025 end, with total debt at $338.1 million, mainly a term loan, and a $712.9 million long-term financing obligation Key Balance Sheet Items (in millions) | Item | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Cash and Cash Equivalents | $85.5 | $98.8 | | Outstanding Debt | $338.1 | $339.6 | - The decrease in cash from year-end 2024 was primarily driven by $12.5 million in purchases of property and equipment[19] - As of June 30, 2025, the company's Consolidated First Lien Net Leverage Ratio exceeded the 5.50 to 1.00 covenant limit; however, because there were no outstanding revolving loans, this did not constitute a breach[19] Financial Statements (Unaudited) The unaudited financial statements detail a Q2 2025 net loss attributable to shareholders of $12.3 million (improved from $41.6 million loss), with total assets of $1.21 billion and a shareholders' deficit of $41.5 million Condensed Consolidated Statements of Loss For Q2 2025, net operating revenue was $150.8 million, earnings from operations $16.6 million, resulting in a net loss of $9.6 million and a net loss attributable to shareholders of $12.3 million, or ($0.40) per share Q2 2025 Statement of Loss Summary (in thousands) | Line Item | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Net Operating Revenue | $150,818 | $146,435 | | Earnings from Operations | $16,575 | $14,261 | | Loss Before Income Taxes | ($8,323) | ($9,394) | | Net Loss | ($9,573) | ($39,013) | | Net Loss Attributable to Shareholders | ($12,309) | ($41,613) | | Basic & Diluted Loss Per Share | ($0.40) | ($1.36) | Condensed Consolidated Balance Sheets As of June 30, 2025, total assets were $1.208 billion (down from $1.226 billion), total liabilities increased to $1.158 billion, and shareholders' deficit grew to $41.5 million Balance Sheet Summary (in thousands) | Category | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Assets | | | | Current Assets | $119,292 | $135,549 | | Property and Equipment, net | $916,120 | $922,146 | | Total Assets | $1,208,451 | $1,226,312 | | Liabilities and Equity | | | | Current Liabilities | $84,230 | $86,044 | | Non-current Liabilities | $1,074,022 | $1,058,264 | | Shareholders' Equity (Deficit) | ($41,493) | ($9,300) | | Total Liabilities and Equity | $1,208,451 | $1,226,312 | Supplemental Information & Non-GAAP Reconciliations This section reconciles Adjusted EBITDAR, a key non-GAAP metric, showing Q2 2025 consolidated Adjusted EBITDAR of $30.3 million (up 10%) and an improved margin of 20% Reconciliation of Adjusted EBITDAR Reconciliation tables detail adjustments from net loss to Adjusted EBITDAR, with Q2 2025 consolidated Adjusted EBITDAR at $30.3 million, and Caruthersville property's Adjusted EBITDAR increasing to $6.1 million - The reconciliation from Net Loss to Adjusted EBITDAR for Q2 2025 shows major add-backs including Interest Expense ($25.9 million), Depreciation & Amortization ($12.8 million), and Income Tax Expense ($1.3 million)[27] - The Caruthersville property's Adjusted EBITDAR increased to $6.1 million in Q2 2025, up from $4.7 million in Q2 2024, demonstrating strong performance since its redevelopment[37] Key Performance Margins Consolidated Adjusted EBITDAR margin improved to 20% in Q2 2025 from 19%, with Poland showing significant expansion from 2% to 8%, while US and Canada margins remained stable Adjusted EBITDAR Margins by Segment | Segment | Q2 2025 Margin | Q2 2024 Margin | | :--- | :--- | :--- | | United States | 24% | 24% | | Canada | 28% | 28% | | Poland | 8% | 2% | | Consolidated | 20% | 19% | Definition of Non-GAAP Measures Adjusted EBITDAR is defined as net earnings (loss) adjusted for interest, taxes, depreciation, amortization, non-controlling interests, and specific one-time items, used by analysts for valuation and comparability - Adjusted EBITDAR is defined as net earnings (loss) adjusted for interest, taxes, depreciation, amortization, non-controlling interests, stock-based compensation, and other specific items[42] - The company states that Adjusted EBITDAR is used by analysts and investors as a valuation metric because it isolates the effects of financing real estate and allows for better comparability among gaming operators with different capital and leasing structures[43]