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Century Casinos Reports 49% Increase in Net Earnings for Q2 2001

Net operating revenues increased 34% to $7,393,000 as compared to $5,514,000 reported for the same period in 2000, representing the eleventh consecutive quarter of year-over-year revenue growth; and EBITDA (earnings before interest, taxes, depreciation and amortization) for the period increased 30% to $2,614,000 from $2,018,000 in 2000.

The Company also reported an increase of 22% in its earnings from operations, rising to $1,284,000 from the $1,052,000 reported during the same period last year.

``We are very pleased with our second quarter results as we continue to surpass our previous quarterly financial records'', said Erwin Haitzmann, Chairman and CEO of Century Casinos, Inc. ``Again, we achieved second quarter records in all major financial reporting categories including net operating revenues, net earnings and EBITDA.''

Casino gross margin for the quarter decreased to 66% from 70% during the same period last year. The Company attributes a portion of this decrease to lower margins experienced by The Caledon Casino, Hotel & Spa that began operations during the fourth quarter of 2000.

As a percentage of net operating revenues, general and administrative expense decreased to 29% from 36% during the same period last year.

Depreciation for the quarter increased to $897,000 from $597,000 in 2000, while amortization of goodwill increased slightly to $357,000 from $335,000 last year. The increase in depreciation expense is primarily attributable to the increase in equipment and fixed assets booked for The Caledon operation.

For the six months ended June 30, 2001

Net operating revenue increased 38% to $14,702,000 from $10,678,000 in 2000. Excluding non-recurring items, one-time operational charges and their tax effects recorded during the first quarter of 2000, net earnings increased 48% to $1,042,000, or $0.08 per share basic ($0.07 diluted), as compared to $703,000, or $0.05 per share (basic and diluted), and EBITDA increased 37% to $5,087,000 from $3,720,000 reported in 2000.

Note that both the net earnings and EBITDA figures for the 2000 period included a non-recurring final payment of $1,380,000 (pre-tax) received from the 1995 sale of the Company's interest in an Indiana gaming development project. Including this non-recurring item, one-time operational charges, and their tax effects, net earnings for that period was $1,375,000 or $0.10 per share basic ($0.09 diluted), and EBITDA was $4,798,000.

The Company also reported a 49% increase in earnings from operations, rising to $2,473,000 from the $1,655,000 reported last year.

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