SEARCH NEWS:

 

Century Casinos reports Q1 results

COLORADO SPRINGS, Colorado -- (PRESS RELEASE) -- Century Casinos, Inc. (Nasdaq: CNTY; Vienna Stock Exchange) reported record net operating revenues of $21,144,000 for the quarter ended March 31, 2007, compared to revenues of $9,474,000 for the quarter ended March 31, 2006. Casino revenue increased by $10,827,000 or 118% for the quarter ended March 31, 2007 over the same 2006 period, primarily due to the acquisition of a 60% majority interest of a casino operation in Newcastle, South Africa on April 1, 2006, the opening of the casino in Central City, Colorado on July 11, 2006, the opening of the casino in Edmonton, Alberta, Canada on November 17, 2006 and improved revenues at our casino in Cripple Creek, Colorado.

For the quarter ended March 31, 2007, the Company reported net earnings of $1,542,000 or $0.07 per share compared to net earnings of $1,690,000 or $0.08 per share for the quarter ended March 31, 2006. The decrease is primarily due to increased interest charges on third party debt. Adjusted EBITDA* for the first quarter of 2007 was $5,206,000 compared to $2,388,000 in the first quarter of 2006, a 118% increase. For the quarter ended March 31, 2007, earnings from operations increased $1,050,000, or 69%, compared to the quarter ended March 31, 2006, primarily the result of the Company's additional operations. On a Company-wide basis, casino operating margins** for the quarter ended March 31, 2007 were 58.1% compared to 61.6% for the same period in 2006 primarily due to increased marketing efforts and associated expenses at our casinos.

Although we reported revenue growth at our casino in Cripple Creek, Colorado when comparing the first quarter of 2007 to the same quarter in 2006, management believes that a string of severe winter storms affected business for approximately seven straight weeks beginning in December 2006 and ending in January 2007, had a negative impact on the revenues at both of our Colorado casinos and consequently had a negative impact on reported earnings and adjusted EBITDA.

Current Period Acquisitions and Other Recent Developments

The Company acquired 100% of G5 SP.z.o.o, a Polish company, on March 12, 2007. G5 holds 33.3% of the issued and outstanding shares of Casinos Poland Ltd. The Company will begin reporting its portion of the earnings of Casinos Poland Ltd. in the second quarter of 2007. In addition, in an effort to reduce third party interest charges, the Company repaid $12,500,000 of outstanding debt on its Central City, Colorado property in March 2007.

Caledon, South Africa

Three months ended March 31, 2007 vs. 2006

pCasino revenue, in Rand, increased by 4.9% to R26,337,000 for the first quarter of 2007 compared to R25,102,000 in the first quarter of 2006 primarily from slot machine win. However, a deterioration of the Rand, quarter over quarter, has had a significant impact on the results reported in dollars. As a result, Caledon's casino revenue decreased 10.4% to $3,647,000 for the first quarter of 2007 compared to $4,070,000 reported in the first quarter of 2006. Casino expenses decreased 4.0% from the first quarter of 2006 to the first quarter of 2007 primarily the result of the deterioration of the Rand offset by incremental fees on gaming revenues and increased advertising expenses. As a result, casino operating margins** were 61.4% for the three months ended March 31, 2007 compared to 64.0% for the same period in 2006. The remaining operating expenses decreased 1.9%. Expense savings resulting from the deterioration of the Rand were offset by a $68,750 fee paid to a preference shareholder that exchanged its preference shares for a new class of preference shares. Net earnings in the first quarter of 2007 were $665,000 compared to $1,143,000 in the first quarter of 2006, primarily the result of exchange rate fluctuations and dividends issued to preference shareholders totaling $219,000. No dividends were paid for the quarter ended March 31, 2006. Caledon's adjusted EBITDA* for the first quarter of 2007 was $1,612,000 compared to $2,111,000 in the first quarter of 2006.

Newcastle, South Africa

Three months ended March 31, 2007

We acquired our interest in Newcastle, South Africa on April 1, 2006. For the three months ended March 31, 2007, net operating revenue at this facility was $2,653,000. Casino operating margins** were 55.6%, generally consistent with our other South Africa property. The Newcastle operation provided the Company with net earnings of $258,000 for the quarter ended March 31, 2007. Newcastle's adjusted EBITDA* for the first quarter of 2007 was $887,000.

Cripple Creek, Colorado

Three months ended March 31, 2007 vs. 2006

Net operating revenue at Womacks Casino in Cripple Creek, Colorado increased to $4,059,000, or 5.8%, for the first quarter of 2007 compared to $3,836,000 reported for the same period in 2006. Despite the quarter over quarter increase in net operating revenue, management believes that January 2007 revenues were negatively impacted by a series of winter storms that began in late December 2006 and continued in January 2007. Total operating expenses increased $349,000, or 12.4%, to $3,155,000 in the first quarter of 2007 from $2,806,000 in the first quarter of 2006. Casino operating margins** were 63.2% for the first quarter of 2007 compared to 66.8% for the same 2006 quarter due primarily to increased marketing efforts and related expenses. Net earnings reported for Womacks in the first quarter of 2007 were $554,000 compared to $582,000 in the first quarter of 2006. Womacks' adjusted EBITDA* for the first quarter of 2007 was $1,293,000 compared to $1,432,000 in the first quarter of 2006.

Central City, Colorado

Three months ended March 31, 2007 vs. 2006

We opened a casino and hotel in Central City, Colorado on July 11, 2006. Prior to July 11, 2006, operating expenses consisted primarily of pre-opening and non-capitalizable construction expenses. For the three months ended March 31, 2007, net operating revenue at this facility was $4,515,000. Casino operating margins** were 59.7% for the three months ended March 31, 2007, which is below our expectations. Although revenues have not yet met our expectations, gaming revenue has grown consistently since opening despite poor weather conditions in January 2007. Management is continuing to evaluate methods to increase revenues at the property. The Central City operation reported a net loss of $126,000 for the quarter ended March 31, 2007. Central City's adjusted EBITDA* for the first quarter of 2007 was $1,055,000.

Edmonton, Alberta, Canada

Three months ended March 31, 2007 vs. 2006

We opened a casino and hotel in Edmonton, Alberta, Canada on November 17, 2006. Prior to this date, operating expenses for this segment consisted primarily of pre-opening and non-capitalizable construction expenses. Edmonton reported $4,152,000 in net operating revenue for the quarter ended March 31, 2007. Casino operating margins** were 60.3% in the first quarter of 2007. Delays in opening the property's hotel hampered hotel, food and beverage revenues for the quarter ended March 31, 2007. The hotel opened in March 2007. Edmonton reported net earnings of $292,000 and adjusted EBITDA* of $983,000 in the first quarter 2007.

< Gaming News