Century Casinos(CNTY) - 2025 Q4 - Annual Results

Financial Performance - Net operating revenue for Q4 2025 was $138.0 million, remaining constant compared to Q4 2024, while full-year revenue was $573.0 million, a decrease of 1%[6] - Earnings from operations increased by 117% to $10.4 million in Q4 2025, and by 331% to $51.3 million for the full year[6] - Adjusted EBITDAR for Q4 2025 was $23.9 million, an increase of 13%, and for the full year, it was $105.4 million, an increase of 3%[6] - The company reported a basic net loss per share of ($0.61) for Q4 2025, a 79% improvement from ($2.94) in Q4 2024[8] - The net loss attributable to Century Casinos, Inc. shareholders for the year ended December 31, 2025, was $61.416 million, compared to a net loss of $153.601 million in 2024[19] - Adjusted EBITDAR for the year ended December 31, 2025, was $105,377 thousand, reflecting an increase from $102,678 thousand in 2024[33] - Interest expense for the year ended December 31, 2025, totaled $104,783 thousand, slightly higher than $103,367 thousand in 2024[34] - Non-cash stock-based compensation for the year ended December 31, 2025, was $1,128 thousand, up from $66 thousand in 2024[28] Segment Performance - The US Midwest segment showed a 2% increase in net operating revenue for Q4 2025, while the US West segment experienced a 7% decrease[9] - Earnings from operations in the US East segment improved significantly, with a 108% increase in Q4 2025 compared to Q4 2024[10] - The US East segment reported a net operating revenue of $169,496 thousand for 2025, with an adjusted EBITDAR margin of 16%[33] - The US Midwest segment achieved a net operating revenue of $163,810 thousand in 2025, maintaining an adjusted EBITDAR margin of 36%[33] - The Canada segment's net operating revenue was $75,929 thousand for 2025, with a net earnings margin of 2%[33] - The Poland segment reported a net operating revenue of $84,168 thousand for 2025, with an adjusted EBITDAR margin of 4%[33] - The US West segment's net operating revenue decreased to $79,561 thousand in 2025, with a net earnings margin of (15%) compared to (70%) in 2024[33] Strategic Initiatives - The company opened a second casino in Wroclaw, Poland, in February 2026, indicating ongoing market expansion efforts[4] - The partnership with BetMGM, LLC for sports betting in Missouri began operations in December 2025, contributing to new revenue streams[4] - The company is exploring strategic alternatives, including the potential sale of its operations in Poland, to enhance portfolio performance[2] - The company is considering the potential sale of its Poland operations as part of a strategic review process[42] - Century Casinos is pursuing various projects in different stages of development, including the recently opened land-based casino and hotel in Caruthersville, Missouri[42] Financial Position - As of December 31, 2025, the Company had $68.9 million in cash and cash equivalents, down from $98.8 million at the end of 2024, primarily due to $22.3 million used in investing activities[16] - Total assets decreased to $1.147 billion as of December 31, 2025, from $1.200 billion at the end of 2024[20] - The Company had $337.7 million in outstanding debt as of December 31, 2025, a slight decrease from $339.6 million in 2024[16] - The Consolidated First Lien Net Leverage Ratio exceeded the required 5.50 to 1.00 as of December 31, 2025, although there were no outstanding revolving loans or letters of credit[16] Reporting and Compliance - The Company plans to post its Annual Report on Form 10-K for the year ended December 31, 2025, on its website once filed[17] - Century Casinos' common stock trades on The Nasdaq Capital Market under the symbol CNTY[41] - Management uses Adjusted EBITDAR margins as a measure to evaluate the efficiency of the company's casino operations[39] - The company defines net earnings margin as net earnings attributable to shareholders divided by net operating revenue, and Adjusted EBITDAR margin as Adjusted EBITDAR divided by net operating revenue[39] - Adjusted EBITDAR is not a direct alternative to net earnings and may not be comparable to similar measures used by other companies in the industry[38] Future Outlook - Future expectations include projections for Adjusted EBITDAR and cash flow in 2026, with potential risks and uncertainties affecting these forecasts[42]