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Century Casinos Results Dip

13 March 2003

CRIPPLE CREEK, Colorad0 – (Press Release) -- Century Casinos, Inc. (Nasdaq: CNTY) today reported net earnings of $3,079,000 or $0.23 per share for the year ended December 31, 2002 compared to $2,455,000, or $0.18 per share for the year ended December 31, 2001. For the fourth quarter of 2002, net earnings were $598,000 or $0.04 per share compared to $726,000 or $0.05 per share for the same period in 2001. EBITDA (earnings before interest, taxes, depreciation and amortization) was $9,615,000 in 2002 compared to $10,741,000 for 2001. EBITDA for the fourth quarter 2002 was $2,475,000 compared to $2,581,000 for the same period in 2001.

In the third quarter of 2002, the Company reported pre-tax charges that totaled $1,123,000 for a write off in Johannesburg of pre-construction costs and advances, unpaid management fees from Casino Millennium, and a property value write down for the non-operating property in Wells, Nevada. In the fourth quarter of 2002, additional expenses related to the Johannesburg project in the amount of $22,000 were written off, bringing the Johannesburg write off total to $399,000. These write offs had a significant impact on the net earnings and EBITDA reported for 2002. On January 1, 2002, the Company adopted SFAS No. 142 and therefore no longer amortizes goodwill and other intangible assets with an indefinite life. The amortization expense for the year ended December 31, 2001 was $1,417,000.

Details of results for these periods are summarized below:

Year-End 2002

The Company reported net operating revenue of $29,337,000 for the year ended December 31, 2002 compared to $29,576,000 reported for 2001.

The casino margin for the Company was 65% for both 2002 and 2001. General and administrative expense decreased 2%, or $150,000 in 2002 to $7,380,000 compared to $7,530,000 for 2001. Depreciation expense decreased to $2,304,000 from $3,147,000 in 2001 largely as a result of the effect of the Rand/Dollar conversion rate from year to year and the increased use of participation slot machines in lieu of purchasing the equipment.

Earnings from operations of $7,291,000 in 2002 reflect an 18.4% increase over the $6,156,000 reported in 2001. Earnings from operations for 2002 include a charge of $1,145,000 for various write offs, as described above. When adjusted for the impact of adopting SFAS No. 142, under which the Company no longer amortizes goodwill and other intangible assets with an indefinite life, earnings from operations would have been $7,573,000 in 2001.

Casino revenue increased 2% at Womacks to $20,983,000 in 2002 compared to $20,645,000 in 2001. The casino margin decreased to 67% from 69% in 2001 as a result of Colorado's graduated gaming tax rate structure. The effective rate increases as casino revenues improve. Womacks has also introduced a greater proportion of slot machines on which the casino pays royalties, in response to customer demand for these particular machines.

Caledon's reported casino revenue decreased marginally to $5,728,000 in 2002 from $5,772,000 in 2001. Excluding the effect of the change in the Rand/Dollar conversion rate from year to year, Caledon casino revenues increased by 20%. The casino margin increased to 63% as compared to 55% for the prior year.

The Company's net earnings for 2002 increased 25.4% to $3,079,000, or $0.23 per share compared to net earnings of $2,455,000 or $0.18 per share in 2001. As of January 1, 2002, in accordance with SFAS No. 142, the Company no longer amortizes goodwill and other intangible assets with indefinite useful lives.

EBITDA for 2002 was $9,615,000, as compared to $10,741,000, primarily due to the aforementioned write downs and other pre-tax charges.

At December 31, 2002 the Company had $19.1 million of available liquidity consisting of cash and cash equivalents, net of restricted cash, and borrowing capacity under the revolving credit facility with Wells Fargo Bank.

Fourth Quarter 2002

The Company reported net operating revenue of $7,131,000 for the three months ended December 31, 2002 compared to $6,973,000 during the same period in 2001.

The casino margin for the Company was 62% in the fourth quarter of 2002 compared to 63% in the fourth quarter of 2001. General and administrative expense was $1,696,000 for the quarter compared to $1,467,000 in 2001. Depreciation expense decreased to $538,000 in the fourth quarter 2002 from $640,000 in the fourth quarter 2001.

Earnings from operations for the Company in the three months ended December 31, 2002 was $1,882,000 compared to $1,724,000 reported in the same period 2001, or a 9% increase. When adjusted for the aforementioned impact of adopting SFAS No. 142 under which the Company no longer amortizes goodwill and other intangible assets with an indefinite life, earnings from operations in 2001 would have been $2,072,000.

Casino revenue at Womacks decreased to $4,667,000 in 2002 from $5,137,000 in 2001, or 9%. Management attributes the decrease to a number of factors which include the impact of construction, and the effect of competitors' covered parking garages during inclement weather. Casino margin for Womacks was 62% in the fourth quarter 2002 as compared to 66% for the fourth quarter 2001.

Caledon reported a 43% increase in casino revenue for the three months ended December 31, 2002 of $1,724,000 compared to $1,207,000 in the same period 2001. Excluding the effect of the change in the Rand/Dollar conversion rate from year to year, Caledon casino revenue increased by 31%. Caledon's casino margin for the fourth quarter 2002 was 64% as compared to 57% reported for the fourth quarter 2001.

The Company reported that net earnings for the fourth quarter 2002 decreased 18% to $598,000, or $0.04 per share compared to net earnings of $726,000, or $0.05 per share for the same quarter in 2001.

EBITDA for the Company was $2,475,000 in the fourth quarter 2002, compared to $2,581,000 in 2001.

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