Press Release: Century Casinos, Inc.
April 1, 2002
CRIPPLE CREEK, CO -- Century Casinos, Inc. (Nasdaq: CNTY) Thursday reported net earnings of $2,455,000 or $0.18
per share for the year ended December 31, 2001 and $726,000 or $0.05 per share for the fourth quarter of 2001.
Excluding non-recurring items, one-time operational charges and their tax effects recorded during the first quarter
of 2000, net earnings for the year 2000 was $2,581,000 or $0.18 per share and $1,048,000 or $0.07 per share for
the fourth quarter of 2000. EBITDA (earnings before interest, taxes, depreciation and amortization) increased to
$ 10,741,000 in 2001 compared to $9,941,000 for 2000, excluding non-recurring items and one time operational charges
in 2000. EBITDA for the fourth quarter 2001 was $2,583,000 compared to $3,557,000 for the same period in 2000.
Note that in year-to-date 2000, both net income and EBITDA included a non-recurring final payment of $1,380,000
received from the 1995 sale of the Company's interest in an Indiana gaming development project. This contributed
significantly to the net income of $3,253,000 or $0.23 per share and the EBITDA of $11,019,000 reported for the
year ended December 31, 2000.
Details of results for these periods are summarized below:
Year-End 2001
The Company reported net operating revenues of $29,576,000 for the year ended December 31, 2001 -- a 13% increase
over the $26,232,000 reported for 2000.
Earnings from operations of $6,213,000 in 2001 reflect a 6% increase over the $5,873,000 reported in 2000.
Net earnings for 2001 decreased 25% to $2,455,000 or $0.18 per share compared to net earnings of $3,253,000 or
$0.23 per share in 2000. Excluding the after-tax effects of non-recurring items, earnings for 2000 were $2,581,000
or $0.18 per share. In 2000 the Company reported after-tax income of $672,000 or $0.05 per share from non-recurring
items, mostly which was the sale of the Company's casino rights in an Indiana riverboat gaming license.
EBITDA, excluding non-recurring items in 2000 of $1,078,000 increased 8% in 2001 to $10,741,000 compared to $9,941,000
in 2000.
Since 1996 the Company has increased its annual net operating revenues at a compounded annual growth rate (or ``CAGR'')
of 21%, EBITDA at a 53% CAGR and net earnings at a 31% CAGR.
Consolidated casino gross margin for 2001 was 65% compared to 70% in 2000. The Company attributes this decrease
to lower than expected revenues at the Caledon Casino, Hotel and Spa. While costs have been controlled and decreased
throughout the year, revenues have not yet met expectations.
As a percentage of net operating revenue, general and administrative expense decreased to 26% from 31% last year.
This represents a $474,000 decrease in general and administrative expense from 2000 to 2001. Depreciation and amortization
expense increased to $4,564,000 from $3,753,000 in 2000 largely as a result of the October 2000 start of operations
of The Caledon Casino, Hotel and Spa. Interest expense, net of interest income, increased in 2001 to $1,846,000
from $1,384,000 in 2000. This increase is primarily due to interest associated with financing The Caledon Casino,
Hotel & Spa.
At December 31, 2001 the Company had $13.6 million of available liquidity consisting of cash, cash equivalents
and borrowing capacity under the revolving credit facility with Wells Fargo Bank.
Fourth Quarter 2001
The Company reported net operating revenues of $6,973,000 for the three months ended December 31, 2001 compared
to $9,100,000 during the same period in 2000. The Caledon Casino, Hotel and Spa began operations in October 2000.
Revenues, at Caledon, were higher than normal during the fourth quarter 2000 until a major competitor began operations
in late December 2000.
Earnings from operations of $1,724,000 in 2001 reflect a 35% decrease from the $2,664,000 reported in 2000. 2000
reflects the higher than normal results of Caledon beginning operations in the fourth quarter.
Net earnings for the fourth quarter 2001 decreased 31% to $726,000 or $0.05 per share compared to net earnings
of $1,048,000 or $0.07 per share for the same quarter in 2000.
EBITDA for the quarter was $2,583,000 compared to $3,863,000 in 2000.
Consolidated casino gross margin for the fourth quarter was 63% in 2001 compared to 72% during the same period
in 2000.
General and administrative expense decreased to $1,467,000 in 2001 from $2,432,000 in 2000. 2000 general and administrative
expense includes approximately $624,000 in one time costs associated with the start up of The Caledon Casino, Hotel
and Spa. Depreciation and amortization decreased to $988,000 from $1,172,000 in 2000. Interest expense, net of
interest income, decreased to $505,000 from $579,000 in 2000.
Certain prior period information relating to the reporting of promotional allowances has been reclassified to conform
to the current period presentation as required by a new accounting pronouncement.
The Company will have a conference call and web cast on Wednesday, April 3 -- at 10:00AM Mountain Standard Time
(12:00 Noon EST and 18:00 Middle European Time) to discuss these results, recent developments and answer any questions
from the investment community. Domestic callers may access the conference call by dialing (888) 222-0389. International
callers can access the conference, toll free, by dialing (706) 679-8462. Austrian callers can access the conference,
toll free, by dialing 0 800 281 475. German callers can access the conference, toll free, by dialing 0 800 181
5287. The web cast may be accessed via the internet through www.centurycasinos.com
or http://www.videonewswire.com/event.asp?id=3942
CENTURY CASINOS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS
For the Year Ended December 31,
2001 2000
Operating Revenue:
Casino $30,096,000 $27,703,000
Food and beverage 1,897,000 1,377,000
Hotel 755,000 257,000
Other 771,000 427,000
33,519,000 29,764,000
Less promotional allowances (3,943,000) (3,532,000)
Net operating revenue 29,576,000 26,232,000
Operating Costs and Expenses:
Casino 9,521,000 7,425,000
Food and beverage 1,075,000 761,000
Hotel 673,000 416,000
General and administrative 7,530,000 8,004,000
Depreciation and amortization 4,564,000 3,753,000
Total operating costs and expenses 23,363,000 20,359,000
Earnings from Operations 6,213,000 5,873,000
Other (expense), net (1,996,000) (20,000)
Earnings Before Income Taxes and Minority
Interest 4,217,000 5,853,000
Provision for income taxes 1,794,000 2,542,000
Earnings Before Minority Interest $2,423,000 $3,311,000
Minority Interest in subsidiary (earnings)
losses 32,000 (58,000)
Net Earnings $2,455,000 $3,253,000
Earnings Per Share
Basic $ 0.18 $ 0.23
Diluted $ 0.16 $ 0.22
CENTURY CASINOS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF EARNINGS
For the Three Months Ended December 31,
2001 2000
Operating Revenue:
Casino $7,187,000 $9,218,000
Food and beverage 441,000 465,000
Hotel 203,000 134,000
Other 200,000 180,000
8,031,000 9,997,000
Less promotional allowances (1,058,000) (897,000)
Net operating revenue 6,973,000 9,100,000
Operating Costs and Expenses:
Casino 2,417,000 2,365,000
Food and beverage 213,000 294,000
Hotel 164,000 173,000
General and administrative 1,467,000 2,432,000
Depreciation and amortization 988,000 1,172,000
Total operating costs and expenses 5,249,000 6,436,000
Earnings from Operations 1,724,000 2,664,000
Other (expense), net (533,000) (553,000)
Earnings Before Income Taxes and Minority
Interest 1,191,000 2,111,000
Provision for income taxes 363,000 757,000
Earnings Before Minority Interest 828,000 1,354,000
Minority Interest in subsidiary (earnings)
losses (102,000) (306,000)
Net Earnings $726,000 $1,048,000
Earnings Per Share:
Basic $ 0.05 $0.07
Diluted $ 0.04 $0.06
CENTURY CASINOS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEET
December 31, 2001
ASSETS
Current Assets $4,389,000
Other Assets 40,430,000
Total Assets $44,819,000
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities $5,066,000
Non-Current Liabilities 17,575,000
Shareholders' Equity 22,178,000
Total Liabilities and Shareholders' Equity $44,819,000
About Century Casinos, Inc:
Century Casinos is an international casino company led by a team of gaming industry professionals who have developed
and operated more than 100 casinos worldwide. The Company owns and operates Womacks Casino and Hotel in Cripple
Creek, Colorado; owns (65%) and operates The Caledon Casino, Hotel & Spa near Cape Town, South Africa; has
a five-year casino concession to operate four casinos aboard the ultra-luxury Silversea cruise vessels; has a five-year
casino concession to operate the casino aboard The World of ResidenSea cruise vessel, the worlds first ocean going
luxury residential resort; and manages the Millennium Casino in the Marriott Hotel in Prague, Czech Republic. The
Company continues to pursue other international projects in various stages of development.
The address for the U.S. administrative offices is 200 E. Bennett Ave., (P.O. Box 1006), Cripple Creek, CO 80813.
Telephone: (719) 689-9100. Fax: (719) 689-3282. E-Mail: investor@cnty.com. For more information about Century Casinos,
visit the Company's web site at www.centurycasinos.com . Century Casinos' common stock trades on The Nasdaq Stock
Market® under the symbol CNTY.
This release may contain forward-looking statements that involve risks and uncertainties. Among the other important
factors which could cause actual results to differ materially from those in the forward-looking statements are
economic, competitive, and governmental factors affecting the company's operations, markets, services and prices,
as well as other factors detailed in the Company's filings with the Securities and Exchange Commission, including
its recent filings on Forms 10-KSB, 10-QSB and 8K. Century Casinos disclaims any obligation to revise or update
any forward-looking statement that may be made from time to time by it or on its behalf.
SOURCE: Century Casinos, Inc.