Century Casinos(CNTY) - 2024 Q3 - Earnings Call Transcript

Financial Data and Key Metrics Changes - The company reported net revenue of $156 million, a decrease of 3$32.9 million, down just 1%, while the consolidated EBITDAR margin increased from 20.6% to 21.1% [5] - The company ended the quarter with $119 million in cash and cash equivalents, and$340 million in outstanding debt, resulting in a net debt of $221 million [15] Business Line Data and Key Metrics Changes - The East segment, including Mountaineer and Rocky Gap, saw revenue increase by 7$10 million and $12 million [14] - The Canadian operations saw a decrease in net operating revenue primarily due to one casino, Century Downs, which lost about$1 million in revenue [28] - The company noted stable consumer trends across its markets, with low-end customers remaining weak but stable [6] Company Strategy and Development Direction - The company plans to focus on operational efficiencies and cost control to improve profitability [12][17] - Future capital expenditures are expected to decrease significantly from $38 million this year to about$16 million next year, which will enhance free cash flow [16] - The company is optimistic about the performance of new properties and plans to buy back stock opportunistically [17] Management's Comments on Operating Environment and Future Outlook - Management indicated that the current year is a transitory period, with a clear path to generating cash and improving results in 2025 [17] - The company expects to see a strong uplift in results from the new Caruthersville property, although initial growing pains may affect EBITDA for a quarter or two [9] - Management remains confident in the stability of the Polish market following the reopening of casinos [14] Other Important Information - The company has no debt maturities until 2029 and can refinance its term loan at any time without penalty [15] - The Nugget Casino has completed its CapEx program for the year, with additional spending planned for elevator upgrades next year [13] Q&A Session Summary Question: Update on licenses in Poland - Management confirmed that some licenses expired but were granted again, with the reopening of the Roslov casino restoring normal operations [19][21] Question: Performance of the Nugget Casino - Management noted that the negative impact on performance was primarily in July, with improvements seen in August and September, continuing into October [25] Question: Canadian assets revenue decline - The decrease was attributed to the Century Downs casino and a competitor's impact, but operational efficiencies led to an increase in EBITDAR [28][29]