Century Casinos(US:CNTY)2025-11-14 00:39Financial Performance - Gaming revenue for Q3 2025 was $106.793 million, a 1.3% increase from $105.450 million in Q3 2024 [137]. - Net operating revenue decreased by $2.0 million, or 1.3%, for the three months ended September 30, 2025 compared to the same period in 2024 [142]. - Net loss attributable to Century Casinos, Inc. shareholders increased by $2.4 million, or 29.9%, for Q3 2025 compared to Q3 2024 [142]. - Adjusted EBITDAR for Q3 2025 was $31.064 million, a decrease of 5.6% from $32.902 million in Q3 2024 [137]. - Hotel revenue for Q3 2025 was $14.845 million, a decrease of 3.3% from $15.350 million in Q3 2024 [137]. - Other revenue decreased by 32.9% to $7.058 million in Q3 2025 compared to $10.518 million in Q3 2024 [137]. - For the three months ended September 30, 2025, net earnings attributable to Century Casinos, Inc. shareholders were $(10,548) thousand, a decrease from $(8,119) thousand in the same period of 2024 [152][154]. - Net earnings attributable to Century Casinos, Inc. shareholders decreased by 32.9% to $3.155 million in Q3 2025 from $4.701 million in Q3 2024 [163]. Revenue Sources - Pari-mutuel, sports betting, and iGaming revenue increased by 16.2% to $6.685 million in Q3 2025 compared to $5.753 million in Q3 2024 [137]. - Gaming revenue for Q3 2025 was $76.634 million, a 2.1% increase from $75.023 million in Q3 2024 [163]. - Pari-mutuel, sports betting, and iGaming revenue increased by 25.0% to $3.778 million in Q3 2025 compared to $3.023 million in Q3 2024 [163]. Casino Operations - The company opened a new land-based casino in Caruthersville, Missouri, on November 1, 2024, with a project cost of approximately $51.9 million [132]. - The company anticipates opening a new casino location in Wroclaw in January 2026, with 50 slot machines and four table games [131]. - The company closed the Hilton Hotel casino in Warsaw in June 2025 due to not receiving a new license, with plans to relocate and reopen the casino in October 2024 [131]. - The new land-based casino and hotel in Caruthersville opened on November 1, 2024, featuring 574 slot machines and nine live table games, nearly a 50% increase in gaming positions [163]. - The Happy Valley Casino in Pennsylvania is expected to open in early 2026, potentially increasing competition for Rocky Gap [165]. Strategic Initiatives - The company initiated a comprehensive strategic review in August 2025 to explore potential mergers, partnerships, or asset divestments aimed at enhancing shareholder value [135]. - The company has partnered with BetMGM to operate an online and mobile sports betting application in Missouri, expected to begin on December 1, 2025 [130]. - The company plans to open a second casino in Wroclaw in January 2026 following the award of a second license in March 2025 [195]. Financial Position - Total long-term debt, including current portion, as of September 30, 2025, was $329,316 thousand, slightly increasing from $327,493 thousand as of September 30, 2024 [161]. - Net Debt as of September 30, 2025, was $261,056 thousand, up from $220,850 thousand as of September 30, 2024, indicating a rise in leverage [161]. - Interest expense for the nine months ended September 30, 2025, totaled $77,607 thousand, compared to $75,316 thousand for the same period in 2024, reflecting an increase [155][158]. - Cash, cash equivalents, and restricted cash as of September 30, 2025, were $78.1 million, down from $119.1 million in 2024 [211]. - Total debt as of September 30, 2025 was $329.3 million, with $321.3 million classified as long-term debt, reflecting an increase in net debt from $220.9 million as of September 30, 2024 [218]. Currency Exchange Rates - The average exchange rate for the Canadian dollar (CAD) was 1.3773 for Q3 2025, reflecting a 1.0% decrease compared to Q3 2024 [136]. - The average exchange rate for the Polish zloty (PLN) was 3.6461 for Q3 2025, indicating a 6.5% increase compared to Q3 2024 [136]. - The average exchange rate between the US dollar and Canadian dollar decreased by 1.0% for the three months ended September 30, 2025, compared to the same period in 2024 [181]. - The average exchange rate between the US dollar and Polish zloty increased by 6.5% for the three months ended September 30, 2025, compared to the same period in 2024 [190]. Operational Costs - Total operating costs and expenses decreased by $1.2 million, or 0.9%, for Q3 2025 compared to Q3 2024 [142]. - Operating costs and expenses in the West decreased primarily due to fewer events at the outdoor event center [178]. - Total operating costs and expenses in Canada for the three months ended September 30, 2025, decreased by 0.9% to $16.32 million compared to $16.46 million in 2024 [179]. - Operating costs and expenses for the three months ended September 30, 2025, decreased by 5.4% to PLN 70.5 million compared to PLN 74.5 million in 2024, and for the nine months, it increased by 1.1% to PLN 240.3 million from PLN 237.7 million [192][194]. Cash Flow - Net cash provided by operating activities for the nine months ended September 30, 2025, was $6.8 million, compared to a cash outflow of $1.0 million in 2024 [211]. - Net cash used in investing activities for the nine months ended September 30, 2024 totaled $66.5 million, including $20.2 million for the casino project in Caruthersville and $10.9 million for a hotel project [215]. - Cash and cash equivalents decreased to $77.7 million as of September 30, 2025, down from $98.8 million at December 31, 2024, primarily due to net cash used in investing activities [226]. Miscellaneous - The company reported a goodwill impairment of $26.5 million for the Rocky Gap reporting unit in Q4 2024 due to a restatement of previously issued financial statements [128]. - The company incurred pre-opening and termination expenses of $1,790 thousand for the nine months ended September 30, 2025, compared to $2,753 thousand for the same period in 2024, reflecting a decrease [155][158]. - Non-cash stock-based compensation for the nine months ended September 30, 2025, was $802 thousand, compared to $566 thousand for the same period in 2024, indicating an increase [155][158].