Century Casinos Reports 43% Increase In Revenue For Q3 2023

Century Casinos Inc. joined several other casino operators to publish its third quarter financial results which ended on Sept. 30, 2023.

Century Casinos’ operating segments

The company’s operations in the United States are divided into distinct segments, including:

In the East:

Mountaineer Casino Resort & Races in New Cumberland, West Virginia
Rocky Gap Casino Resort & Golf in Flintstone, Maryland

Midwest operations:

Century Casinos in Cape Girardeau and Caruthersville, Missouri
Century Casino & Hotels in Cripple Creek and Central City, Colorado

In the West:

Nugget Casino Resort in Reno/Sparks, Nevada

Additionally, in Alberta, Canada, the company manages the following establishments:

Century Casino & Hotel in Edmonton
Century Casino in St. Albert
Century Mile Racetrack and Casino in Edmonton
Century Downs Racetrack and Casino in Calgary

Furthermore, the company extends its operations in Poland, where it oversees six casinos through its subsidiary, Casinos Poland Ltd.

Highlights from Century Casinos’ Q3 report

Generated $161.2 million in net operating revenue, causing a 43% increase from last year.
Earnings from operations stood at $4.4 million, a 28% decrease from Q3 2022.
Adjusted EBITDA saw a 19% increase to $33.3 million.

Net Operating Revenue was strongest with US operations

For the third quarter, US operations generated $116,861 in net operating revenue, which is a 65% increase from last year’s number, which stood at $70,718.

In Canada, there was a modest 4% uptick, with the net operating revenue reaching $20,921 for Q3 2023, compared to $20,065 in Q3 2022.

Poland casinos experienced an 8% increase, reaching $23,397 in Q3 2023, up from $21,733 in the same period in 2022.

The consolidated figures for this year’s Q3 totaled $161,179, marking a 43% rise from the previous year’s figure of $112,552. Erwin Haitzmann and Peter Hoetzinger, co-chief executive officers commented in a Century Casinos press release:

“With our acquisitions of the Nugget Casino Resort and Rocky Gap Casino, Resort & Golf we achieved record high net operating revenue and Adjusted EBITDA. One time expenses related to the Rocky Gap acquisition and Canada sale leaseback transaction negatively impacted our earnings from operations and net loss for the quarter.

Looking ahead we anticipate revenue and operating expense trends to remain consistent with what we have seen the last several quarters. The completion of the Canada sale leaseback reduced our Net Debt from $255.5 million as of June 30, 2023 to $158.9 million as of September 30, 2023.”

Earnings loss from operations was strongest in Poland

In Q3 2023, Century’s US segment experienced an earnings loss of $19,812, reflecting a 21% increase, while Canada recorded $2,080, marking a 47% decrease from the previous year’s figure of $3,905.

In Poland, there was a $1,271 earning loss from operations, 52% down compared to Q3 2022, where it was $2,661. The consolidated result for Q3 2023 is $14,467, showing a 28% decrease compared to Q3 2022, which reported $20,006.

Century’s adjusted EBITDA rose 44% for US operations

For the three months ending on Sept. 30, 2023, the Adjusted EBITDA for United States businesses increased to $30,489. This reflects a 44% rise from the previous year’s figure of $21,243.

In contrast, Canada‘s Adjusted EBITDA for the same period was $4,706, representing a 7% decline compared to the previous year’s value of $5,085.

Poland operations also witnessed a significant decrease, recording an Adjusted EBITDA of $1,948 for Q3 2023, as opposed to $3,311 in the previous year, marking a 41% decline.

The consolidated result for the quarter was $33,347, indicating a noteworthy 19% growth when compared to Q3 2022, which stood at $28,068. Although Century’s Q2 2023 highlights a 2% decrease in Adjusted EBITDA.

Balance sheet and liquidity

As of Sept. 30, 2023, Century Casinos held $189.0 million in cash and cash equivalents, marking an increase from the $101.8 million recorded on Dec. 31, 2022.

At the end of Q3, the company’s outstanding debt amounted to $347.9 million, reflecting a decrease from the $366.4 million recorded last year. This total included:

$344.8 million associated with the term loan under the Goldman Credit Agreement
$3.2 million in bank debt linked to Century Resorts Management GmbH (“CRM”)

Additionally, the company bears a long-term financing duty of $654.0 million under its Master Lease.

Liabilities and equity

In the third quarter, the company saw an increase in current liabilities, reaching $93,331, as compared to $65,413 on Dec. 31, 2022. Non-current liabilities also experienced an uptick, standing at $1,039,963, in contrast to $665,355 for Q3 2022.

Shareholders’ equity for Century Casinos Inc. was $128,879 as of Sept. 30, and $144,028 as of Dec. 31, 2022. Non-controlling interests amounted to $96,688, resulting in a total liabilities and equity figure of $1,358,861 for Q3 2023.

Turning to assets, Century Casinos reported $227,821 in current assets for Q3: