Century Casinos : Press Release (Exhibit 99 Earnings Release Q4 2024)

Published: 2025-03-13 06:07:22 ET CNTY

PRESS RELEASE

March 13, 2025

Century Casinos, Inc. Announces Fourth Quarter and Full Year 2024 Results

2025 Looks Promising After Opening of New Land-Based Casino in Missouri

Colorado Springs, Colorado - March 13, 2025 - Century Casinos, Inc. (the "Company", "we", "us", or "our") (Nasdaq Capital Market®: CNTY) today announced its financial results for the three months and year ended December 31, 2024.

Fourth Quarter 2024 Results*

Compared to the three months ended December 31, 2023:

2024 Results*

Compared to the year ended December 31, 2023:

"The highlight of the fourth quarter 2024 was the successful opening of the new land-based casino and hotel in Caruthersville, Missouri on November 1, 2024," Erwin Haitzmann and Peter Hoetzinger, Co-Chief Executive Officers of Century Casinos remarked. "We continue to see weak trends from retail and low-end customers, which we believe is due to macro-economics impacting consumer spending in our markets. However, with no construction or renovation disruptions and the opportunity to realize returns from our recent growth capital initiatives, we believe Adjusted EBITDAR and cash flow will improve in 2025 as compared to 2024," Messrs. Haitzmann and Hoetzinger concluded.

UPDATES

Nugget Goodwill Impairment- The Company impaired goodwill at its Nugget Casino Resort (the "Nugget") property based on estimated market conditions and performance, resulting in $43.7 million recorded to impairment - goodwill for the three months and year ended December 31, 2024. The impairment negatively impacted (loss) earnings from operations and net loss attributable to Century Casinos, Inc. shareholders for the three months and year ended December 31, 2024.

RESULTS

The consolidated results for the three months and years ended December 31, 2024 and 2023 are as follows:

Amounts in thousands, except per share

For the three months

For the year

ended December 31,

data

Consolidated Results:

2024

2023

Change

2024

2023

Change

Net Operating Revenue

137,766

143,760

(4%)

575,919

550,206

(Loss) Earnings from

Operations

(36,154)

12,551

(388%)

4,316

64,046

(93%)

Net Loss Attributable to

Century Casinos, Inc.

Shareholders

(64,894)

(10,821)

(500%)

(128,170)

(28,198)

(355%)

Adjusted EBITDAR**

21,078

25,358

(17%)

102,678

114,047

(10%)

Net Loss Per Share Attributable to Century Casinos, Inc. Shareholders:

Basic

(2.11)

(0.36)

(486%)

(4.19)

(0.93)

(351%)

Diluted

(2.11)

(0.36)

(486%)

(4.19)

(0.93)

(351%)

RESULTS BY REPORTABLE SEGMENT*

The Company's net operating revenue decreased by ($6.0) million, or (4%), and increased by $25.7 million, or 5%, for the three months and year ended December 31, 2024 compared to the three months and year ended December 31, 2023. Following is a summary of the changes in net operating revenue by reportable segment for the three months and year ended December 31, 2024 compared to the three months and year ended December 31, 2023:

Net Operating Revenue

For the three months

For the year

Amounts in

ended December 31,

thousands

2024

2023

Change

2024

2023

Change

United States

99,981

102,957

(2,976)

(3%)

419,668

380,591

39,077

10%

Canada

17,894

19,187

(1,293)

(7%)

76,317

75,449

868

Poland

19,870

21,616

(1,746)

(8%)

79,900

94,105

(14,205)

(15%)

Corporate and

Other

100%

(27)

(44%)

Consolidated

137,766

143,760

(5,994)

(4%)

575,919

550,206

25,713

2/11

The Company's earnings from operations decreased by ($48.7) million, or (388%), and by ($59.7) million, or (93%), for the three months and year ended December 31, 2024 compared to the three months and year ended December 31, 2023. Following is a summary of the changes in (loss) earnings from operations by reportable segment for the three months and year ended December 31, 2024 compared to the three months and year ended December 31, 2023:

(Loss) Earnings from Operations

For the three months

For the year

Amounts in

ended December 31,

thousands

2024

2023

Change

2024

2023

Change

United States

$ (34,507)

12,386

(46,893)

(379%)

6,257

63,998

(57,741)

(90%)

Canada

3,630

4,344

(714)

(16%)

15,832

15,074

758

Poland

(2,310)

413

(2,723)

(659%)

(3,726)

5,549

(9,275)

(167%)

Corporate and

Other

(2,967)

(4,592)

1,625

35%

(14,047)

(20,575)

6,528

32%

Consolidated

$ (36,154)

12,551

(48,705)

(388%)

4,316

64,046

(59,730)

(93%)

(Loss) earnings from operations was impacted by the impairment of goodwill at the Nugget, resulting in $43.7 million of expense during the fourth quarter of 2024.

Net earnings attributable to Century Casinos, Inc. shareholders decreased by ($54.1) million, or (500%), and by ($100.0) million, or (355%), for the three months and year ended December 31, 2024 compared to the three months and year ended December 31, 2023. Following is a summary of the changes in net (loss) earnings attributable to Century Casinos, Inc. shareholders by reportable segment for the three months and year ended December 31, 2024 compared to the three months and year ended December 31, 2023:

Net (Loss) Earnings Attributable to Century Casinos, Inc. Shareholders

For the three months

For the year

Amounts in

ended December 31,

thousands

2024

2023

Change

2024

2023

Change

United States

(50,756)

483

(51,239)

(10608%)

(76,422)

18,036

(94,458)

(524%)

Canada

117

6,087

(5,970)

(98%)

3,390

8,626

(5,236)

(61%)

Poland

(1,194)

385

(1,579)

(410%)

(1,909)

3,446

(5,355)

(155%)

Corporate and

(13,061)

(17,776)

4,715

27%

(53,229)

(58,306)

5,077

Consolidated

(64,894)

(10,821)

(54,073)

(500%)

(128,170)

(28,198)

(99,972)

(355%)

Items deducted from or added to (loss) earnings from operations to arrive at net (loss) earnings attributable to Century Casinos, Inc. shareholders include interest income, interest expense, gains (losses) on foreign currency transactions and other, income tax (benefit) expense, and non-controlling interests. Increased interest expense negatively impacted net loss (earnings) attributable to Century Casinos, Inc. shareholders. In 2024, interest expense increased primarily due to additional properties added to the Company's triple net master lease ("Master Lease") with subsidiaries of VICI Properties Inc. Net loss (earnings) attributable to Century Casinos, Inc. shareholders also was impacted by the recording of a valuation allowance on our net deferred tax assets related to the United States resulting in additional income tax expense and, as stated above, the impairment of goodwill at the Nugget during the fourth quarter of 2024.

3/11

Adjusted EBITDAR** decreased by ($4.3) million, or (17%), and by ($11.4) million, or (10%), for the three months and year ended December 31, 2024 compared to the three months and year ended December 31, 2023. Following is a summary of the changes in Adjusted EBITDAR** by reportable segment for the three months and year ended December 31, 2024 compared to the three months and year ended December 31, 2023:

Adjusted EBITDAR**

For the three months

For the year

Amounts in

ended December 31,

thousands

2024

2023

Change

2024

2023

Change

United States

20,436

22,109

(1,673)

(8%)

93,791

98,190

(4,399)

(4%)

Canada

4,681

5,617

(936)

(17%)

20,162

20,003

159

Poland

(603)

952

(1,555)

(163%)

2,563

8,062

(5,499)

(68%)

Corporate and

(3,436)

(3,320)

(116)

(3%)

(13,838)

(12,208)

(1,630)

(13%)

Consolidated

21,078

25,358

(4,280)

(17%)

102,678

114,047

(11,369)

(10%)

BALANCE SHEET AND LIQUIDITY

As of December 31, 2024, the Company had $98.8 million in cash and cash equivalents compared to $171.3 million in cash and cash equivalents at December 31, 2023. Cash and cash equivalents decreased primarily due to purchases of property and equipment of $59.2 million and tax payments of $12.2 million related to the September 2023 sale and leaseback of the Company's Canada properties. As of December 31, 2024, the Company had $339.6 million in outstanding debt compared to $346.8 million in outstanding debt at December 31, 2023. The outstanding debt as of December 31, 2024 included $336.9 million related to a term loan under the Company's credit agreement with Goldman Sachs Bank USA ("Goldman"), $1.4 million of bank debt related to Century Resorts Management GmbH ("CRM") and $1.3 million related to a revolving credit facility related to Casinos Poland ("CPL"). The Company also has a revolving line of credit with Goldman of up to $30.0 million. If the Company has aggregate outstanding revolving loans, swingline loans and letters of credit greater than $10.5 million under the credit agreement with Goldman as of the last day of any fiscal quarter, it is required to maintain a Consolidated First Lien Net Leverage Ratio of 5.50 to

1.00 or less for such fiscal quarter. As of December 31, 2024, the Consolidated First Lien Net Leverage Ratio exceeded 5.50 to 1.00, but the Company had no outstanding revolving loans, swingline loans or letters of credit under the credit agreement with Goldman. The Company also has a $701.0 million long- term financing obligation under the Master Lease.

CONFERENCE CALL INFORMATION

Today the Company will post a copy of its Annual Report on Form 10-K filed with the SEC for the year ended December 31, 2024 on its website at www.cnty.com/investor/financials/sec-filings/.

The Company will host its fourth quarter 2024 earnings conference call today, Thursday, March 13, 2025 at 8:00 am MDT. U.S. domestic participants should dial 1-888-999-5318. For all international participants, please use 848-280-6460 to dial-in. The conference ID is 'Casinos'. Participants may listen to the call live at https://app.webinar.net/8L4ERZvR0xqor obtain a recording of the call on the Company's website until March 31, 2025 at www.cnty.com/investor/financials/sec-filings/.

4/11

CENTURY CASINOS, INC. AND SUBSIDIARIES

UNAUDITED FINANCIAL INFORMATION - US GAAP BASIS

Condensed Consolidated Statements of Loss

For the three months

For the year

ended December 31,

Amounts in thousands, except for per share information

2024

2023

2024

2023

Operating revenue:

Net operating revenue

137,766

143,760

575,919

550,206

Operating costs and expenses:

Total operating costs and expenses

173,920

131,209

571,603

487,281

Earnings from equity investment

1,121

(Loss) earnings from operations

(36,154)

12,551

4,316

64,046

Non-operating (expense) income, net

(25,125)

(24,963)

(97,728)

(87,878)

Loss before income taxes

(61,279)

(12,412)

(93,412)

(23,832)

Income tax (expense) benefit

(2,374)

3,994

(27,673)

5,343

Net loss

(63,653)

(8,418)

(121,085)

(18,489)

Net earnings attributable to non-controlling interests

(1,241)

(2,403)

(7,085)

(9,709)

Net loss attributable to Century Casinos, Inc.

shareholders

(64,894)

(10,821)

(128,170)

(28,198)

Net loss per share attributable to Century Casinos, Inc. shareholders:

Basic

(2.11)

(0.36)

(4.19)

(0.93)

Diluted

(2.11)

(0.36)

(4.19)

(0.93)

Weighted average common shares

Basic

30,683

30,360

30,617

30,274

Diluted

30,683

30,360

30,617

30,274

Condensed Consolidated Balance Sheets

December 31,

Amounts in thousands

2024

2023

Assets

Current assets

135,549

207,017

Property and equipment, net

922,146

913,561

Other assets

168,617

239,084

Total assets

1,226,312

1,359,662

Liabilities and Equity

Current liabilities

86,044

93,619

Non-current liabilities

1,058,264

1,051,602

Century Casinos, Inc. shareholders' equity

(9,300)

121,392

Non-controlling interests

91,304

93,049

Total liabilities and equity

1,226,312

1,359,662

5/11

CENTURY CASINOS, INC. AND SUBSIDIARIES

UNAUDITED SUPPLEMENTAL INFORMATION

Reconciliation of Adjusted EBITDAR** to Net (Loss) Earnings Attributable to Century Casinos, Inc. Shareholders by Reportable Segment.

For the three months ended December 31, 2024

United

Corporate

Amounts in thousands

States

Canada

Poland

and Other

Total

Net (loss) earnings attributable to Century

Casinos, Inc. shareholders

(50,756)

117

(1,194)

(13,061)

(64,894)

Interest expense (income), net (1)

12,406

3,243

9,729

25,407

Income tax expense (benefit)

2,073

306

(380)

375

2,374

Depreciation and amortization

11,222

1,053

349

12,653

Net earnings (loss) attributable to non-

controlling interests

1,770

(597)

1,241

Non-cash stock-based compensation

(500)

Gain on foreign currency transactions,

cost recovery income and other

(106)

(168)

(8)

(282)

Impairment - goodwill (2)

43,716

Loss on disposition of fixed assets

586

591

Pre-opening and termination expenses

772

Adjusted EBITDAR

20,436

4,681

(603)

(3,436)

21,078

For the three months ended December 31, 2023

United

Corporate

Amounts in thousands

States

Canada

Poland

and Other

Total

Net earnings (loss) attributable to Century

Casinos, Inc. shareholders

483

6,087

385

(17,776)

(10,821)

Interest expense (income), net (1)

11,653

1,747

(60)

11,369

24,709

Income tax (benefit) expense

(1,471)

(3,962)

135

1,304

(3,994)

Depreciation and amortization

9,675

1,214

534

11,480

Net earnings attributable to non-

controlling interests

1,721

491

192

2,404

Non-cash stock-based compensation

864

Loss (gain) on foreign currency

transactions and cost recovery income

(239)

444

241

Loss on disposition of fixed assets

108

165

Acquisition costs

310

Adjusted EBITDAR

22,109

5,617

952

(3,320)

25,358

6/11

CENTURY CASINOS, INC. AND SUBSIDIARIES

UNAUDITED SUPPLEMENTAL INFORMATION

Reconciliation of Adjusted EBITDAR** to Net (Loss) Earnings Attributable to Century Casinos, Inc. Shareholders by Reportable Segment.

For the year ended December 31, 2024

United

Corporate

Amounts in thousands

States

Canada

Poland

and Other

Total

Net (loss) earnings attributable to Century

Casinos, Inc. shareholders

(76,422)

3,390

(1,909)

(53,229)

(128,170)

Interest expense (income), net (1)

47,566

12,544

(41)

40,654

100,723

Income tax expense (benefit)

28,016

1,010

(237)

(1,116)

27,673

Depreciation and amortization

43,254

4,368

1,811

162

49,595

Net earnings (loss) attributable to non-

controlling interests

7,097

943

(955)

7,085

Non-cash stock-based compensation

Loss (gain) on foreign currency

transactions, cost recovery income and

other (2)

(2,057)

(584)

(356)

(2,973)

Impairment - goodwill (3)

43,716

Loss (gain) on disposition of fixed assets

540

(36)

953

1,457

Acquisition costs

(19)

Pre-opening and termination expenses

3,525

Adjusted EBITDAR

93,791

20,162

2,563

(13,838)

102,678

For the year ended December 31, 2023

United

Corporate

Amounts in thousands

States

Canada

Poland

and Other

Total

Net earnings (loss) attributable to Century

Casinos, Inc. shareholders

18,036

8,626

3,446

(58,306)

(28,198)

Interest expense (income), net (1)

38,024

11,527

(345)

42,605

91,811

Income tax expense (benefit)

2,654

(4,256)

1,534

(5,275)

(5,343)

Depreciation and amortization

33,739

4,590

2,482

232

41,043

Net earnings attributable to non-

controlling interests

5,284

2,701

1,724

9,709

Non-cash stock-based compensation

3,610

(Gain) loss on foreign currency

transactions, cost recovery income and

other (2)

(84)

(3,195)

(810)

401

(3,688)

Loss on disposition of fixed assets

537

113

691

Acquisition costs

4,412

Adjusted EBITDAR

98,190

20,003

8,062

(12,208)

114,047

7/11

CENTURY CASINOS, INC. AND SUBSIDIARIES

UNAUDITED SUPPLEMENTAL INFORMATION

Adjusted EBITDAR Margins ***

For the three months

For the year

ended December 31,

2024

2023

2024

2023

United States

Net Operating Revenue

99,981

102,957

419,668

380,591

Net Earnings (Loss) Margin

(51%)

(18%)

Adjusted EBITDAR Margin

20%

22%

26%

Canada

Net Operating Revenue

17,894

19,187

76,317

75,449

Net Earnings (Loss) Margin

32%

11%

Adjusted EBITDAR Margin

26%

29%

26%

27%

Poland

Net Operating Revenue

19,870

21,616

79,900

94,105

Net Earnings (Loss) Margin

(6%)

(2%)

Adjusted EBITDAR Margin

(3%)

Corporate and Other

Net Operating Revenue

- $

Net Earnings (Loss) Margin

NM (1)

Adjusted EBITDAR Margin

Consolidated

Net Operating Revenue

137,766

143,760

575,919

550,206

Net Earnings (Loss) Margin

(47%)

(8%)

(22%)

(5%)

Adjusted EBITDAR Margin

15%

18%

21%

(1) Not meaningful.

Reconciliation of Interest (Income) Expense, Net

For the three months

For the year

ended December 31,

Amounts in thousands

2024

2023

2024

2023

Interest income

(534)

(1,775)

(2,644)

(2,114)

Interest expense - Credit Agreements

9,330

10,649

38,931

39,703

Interest expense - Master Lease Financing Obligation

15,770

15,081

61,356

42,426

Interest expense - CDR Land Lease (1)

1,450

Interest expense - Deferred Financing Costs

673

2,695

Interest expense - Miscellaneous

168

385

327

Interest expense - Other (2)

7,324

Interest expense (income), net

25,407

24,709

100,723

91,811

8/11

CENTURY CASINOS, INC. AND SUBSIDIARIES

UNAUDITED SUPPLEMENTAL INFORMATION

Cash Rent Payments

For the three months

For the year

ended December 31,

Amounts in thousands

2024

2023

2024

2023

Master Lease

14,005

15,085

51,834

40,739

CDR Land Lease

1,258

Nugget Lease (1)

1,912

2,513

7,001

6,313

The table below shows the Company's reporting units and operating segments that are included in each of the Company's reportable segments as of December 31, 2024:

Reportable Segment

Operating Segment

Reporting Unit

United States

East

Mountaineer Casino, Resort & Races

Rocky Gap Casino, Resort & Golf

Midwest

Century Casino & Hotel - Central City

Century Casino & Hotel - Cripple Creek

Century Casino & Hotel - Cape Girardeau

Century Casino & Hotel - Caruthersville and The

Farmstead

West

Nugget Casino Resort and Smooth Bourbon, LLC

Canada

Century Casino & Hotel - Edmonton

Century Casino St. Albert

Century Mile Racetrack and Casino

Century Downs Racetrack and Casino

Poland

Casinos Poland

Corporate and Other

Cruise Ships & Other (1)

Corporate Other (2)

9/11

CENTURY CASINOS, INC. AND SUBSIDIARIES

UNAUDITED SUPPLEMENTAL INFORMATION

Adjusted EBITDAR is used outside of our financial statements solely as a valuation metric and is not considered a measure of performance recognized under GAAP. Adjusted EBITDAR is an additional metric used by analysts in valuing gaming companies subject to triple net leases such as our Master Lease since it eliminates the effects of variability in leasing methods and capital structures. This metric is included as supplemental disclosure because (i) we believe Adjusted EBITDAR is used by gaming operator analysts and investors to determine the equity value of gaming operators and (ii) financial analysts refer to Adjusted EBITDAR when valuing our business. We believe Adjusted EBITDAR is useful for equity valuation purposes because (i) its calculation isolates the effects of financing real estate, and (ii) using a multiple of Adjusted EBITDAR to calculate enterprise value allows for an adjustment to the balance sheet to recognize estimated liabilities arising from operating leases related to real estate.

Adjusted EBITDAR should not be construed as an alternative to net earnings (loss) attributable to Century Casinos, Inc. shareholders, the most directly comparable GAAP measure, as indicators of our performance. In addition, Adjusted EBITDAR as used by us may not be defined in the same manner as other companies in our industry, and, as a result, may not be comparable to similarly titled non-GAAP financial measures of other companies. Consolidated Adjusted EBITDAR should not be viewed as a measure of overall operating performance or considered in isolation or as an alternative to net earnings (loss) attributable to Century Casinos, Inc. shareholders, because it excludes the rent expense associated with our Master Lease and several other items.

10/11

Disclaimer

Century Casinos Inc. published this content on March 13, 2025, and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on March 13, 2025 at 10:06:26.255.