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Century Casinos Inc. starts fiscal year off on a positive note9 May 2023(PRESS RELEASE) -- Century Casinos, Inc. today announced its financial results for the three months ended 31 March 2023. First Quarter 2023 Highlights:
On 3 April 2023, the Company completed its previously announced acquisition of 100% of the membership interests in Nugget Sparks, LLC (“Nugget”) for $100.0 million (subject to certain adjustments) (the “OpCo Acquisition”). On 1 April 2022, the Company purchased 50% of the membership interests in Smooth Bourbon, LLC (“Smooth Bourbon”) for approximately $95.0 million (the “Smooth Bourbon Acquisition” and together with the OpCo Acquisition, the “Nugget Acquisition”). Nugget owns and operates the Nugget Casino Resort in Sparks, Nevada, and Smooth Bourbon owns the real property on which the casino is located and leases the real property to Nugget for an annual rent of $15.0 million. The Company funded the acquisition with $100.0 million from an escrow account that was established under its Credit Agreement with Goldman Sachs Bank USA (the “Goldman Credit Agreement”). “We are pleased that each of our reportable segments had revenue growth for the first quarter of 2023 compared to the first quarter of 2022,” said Erwin Haitzmann and Peter Hoetzinger, Co-Chief Executive Officers of Century Casinos. “Construction of our hotel in Cape Girardeau, Missouri and our land-based casino and hotel in Caruthersville, Missouri continues, and we are excited to see the progress made at these properties. We completed our acquisition of the Nugget Casino Resort on April 3, 2023. We have begun to integrate the Nugget operations and expect to see meaningful growth from this acquisition in the future. We anticipate an immediate impact to net income because we had been paying interest on the $100 million in escrow that we borrowed in April 2022 to finance the OpCo Acquisition without net income from the Nugget to support it.” The company’s net operating revenue increased by $5.4 million, or 5%, for the three months ended 31 March 2023, compared to the three months ended 31 March 2022. Following is a summary of the changes in net operating revenue by reportable segment for the three months ended 31 March 2023, compared to the three months ended 31 March 2022. The company’s earnings from operations increased by $5.4 million, or 41%, for the three months ended 31 March 2023, compared to the three months ended 31 March 2022. Following is a summary of the changes in earnings (loss) from operations by reportable segment for the three months ended 31 March 2023, compared to the three months ended 31 March 2022. Net (loss) earnings attributable to Century Casinos, Inc. shareholders decreased by ($1.5) million, or (670%), for the three months ended 31 March 2023, compared to the three months ended 31 March 2022. Following is a summary of the changes in net (loss) earnings attributable to Century Casinos, Inc. shareholders by reportable segment for the three months ended 31 March 2023, compared to the three months ended 31 March 2022. Items deducted from or added to 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. Net earnings attributable to Century Casinos, Inc. shareholders decreased for the three months ended 31 March 2023 compared to the three months ended 31 March 2022 primarily because interest expense increased by $6.8 million as a result of an additional $176.9 million in principal debt as of 31 March 2023 under the Goldman Credit Agreement compared to the principal debt as of 31 March 2022 under a prior credit agreement. This included approximately $2.6 million of additional interest expense from interest on the $100.0 million in escrow to fund the OpCo Acquisition without the benefit of net income from the Nugget Casino. Adjusted EBITDA increased by $2.2 million, or 9%, for the three months ended 31 March 2023 compared to the three months ended 31 March 2022. Following is a summary of the changes in Adjusted EBITDA by reportable segment for the three months ended 31 March 2023 compared to the three months ended 31 March 2022. Balance Sheet and Liquidity: As of 31 March 2023, the Company had $102.7 million in cash and cash equivalents compared to $101.8 million in cash and cash equivalents at 31 December 2022. Cash and cash equivalents as of 31 March 2023 do not include restricted cash, which included $100.2 million in escrow to fund the OpCo Acquisition. As of 31 March 2023, the Company had $365.2 million in outstanding debt compared to $349.6 million in outstanding debt at 31 December 2022. The outstanding debt as of 31 March 2023 included $346.5 million related to the term loan under the Goldman Credit Agreement (including $100.0 million borrowed and in escrow to fund the OpCo Acquisition), $4.3 million of bank debt related to Century Resorts Management GmbH (“CRM”), and $14.4 million related to a long-term land lease for CDR. The Company also has a $285.2 million long-term financing obligation under its triple net master lease (“Master Lease”) for its West Virginia and Missouri properties. |