CENTURY CASINOS INC /CO/ [CNTY] Filings

10-Q 1 cnty-20240630x10q.htm 10-Q cnty-20240630x10q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

þ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2024

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ____________ to ___________

Commission file number 0-22900

CENTURY CASINOS, INC.

(Exact name of registrant as specified in its charter)


DELAWARE	84-1271317
(State or other jurisdiction of	(I.R.S. Employer Identification No.)
incorporation or organization)

455 E. Pikes Peak Ave., Suite 210, Colorado Springs, Colorado 80903

(Address of principal executive offices, including zip code)

(719) 527-8300

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $0.01 Per Share Par Value	CNTY	Nasdaq Capital Market, Inc.

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes þ No ¨

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes þ No ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


	Large Accelerated Filer ¨		Accelerated Filer þ
	Non-accelerated Filer ¨		Smaller Reporting Company þ
			Emerging Growth Company ¨

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ¨ No þ

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date:

30,682,603 shares of common stock, $0.01 par value per share, were outstanding as of August 2, 2024.

INDEX


Part I	FINANCIAL INFORMATION	Page
Item 1.	Condensed Consolidated Financial Statements (Unaudited)	3
	Condensed Consolidated Balance Sheets as of June 30, 2024 and December 31, 2023	3
	Condensed Consolidated Statements of Loss for the Three and Six Months Ended June 30, 2024 and 2023	4
	Condensed Consolidated Statements of Comprehensive (Loss) Income for the Three and Six Months Ended June 30, 2024 and 2023	5
	Condensed Consolidated Statements of Equity for the Three and Six Months Ended June 30, 2024 and 2023	6
	Condensed Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2024 and 2023	7
	Notes to Condensed Consolidated Financial Statements	8
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	33
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	51
Item 4.	Controls and Procedures	51
Part II	OTHER INFORMATION
Item 1.	Legal Proceedings	51
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	51
Item 5.	Other Information	52
Item 6.	Exhibits	52
Signatures		53

‎

PART I – FINANCIAL INFORMATION

Item 1. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

CENTURY CASINOS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)


	June 30,			December 31,
Amounts in thousands, except for share and per share information	2024			2023
ASSETS
Current Assets:
Cash and cash equivalents	$	123,200	$	171,327
Receivables, net		16,881		18,253
Prepaid expenses		16,555		11,859
Inventories		3,971		4,652
Other current assets		1,385		926
Total Current Assets		161,992		207,017

Property and equipment, net		919,799		913,561
Leased right-of-use assets, net		31,236		25,973
Goodwill		80,251		80,583
Intangible assets, net		89,952		93,207
Deferred income taxes		16,176		37,646
Note receivable, net of current portion and unamortized discount		316		316
Deposits and other		1,972		1,359
Total Assets	$	1,301,694	$	1,359,662

LIABILITIES AND EQUITY
Current Liabilities:
Current portion of long-term debt	$	5,801	$	8,468
Current portion of operating lease liabilities		4,419		3,395
Current portion of finance lease liabilities		230		199
Accounts payable		12,372		15,279
Accrued liabilities		36,680		29,056
Accrued payroll		15,039		16,221
Taxes payable		8,120		21,001
Total Current Liabilities		82,661		93,619

Long-term debt, net of current portion and deferred financing costs (Note 5)		323,046		324,212
Long-term financing obligation to VICI Properties, Inc. subsidiaries (Note 6)		653,762		658,007
Operating lease liabilities, net of current portion		30,264		25,834
Finance lease liabilities, net of current portion		489		427
Taxes payable and other		51,631		41,758
Deferred income taxes		2,828		1,364
Total Liabilities		1,144,681		1,145,221
Commitments and Contingencies (Note 7)

Equity:
Preferred stock; $0.01 par value; 20,000,000 shares authorized; no shares issued or outstanding		—		—
Common stock; $0.01 par value; 50,000,000 shares authorized; 30,682,603 and 30,359,931 shares issued and outstanding		307		304
Additional paid-in capital		124,702		124,094
Retained (loss) earnings		(46,090)		9,067
Accumulated other comprehensive loss		(14,340)		(12,073)
Total Century Casinos, Inc. Shareholders' Equity		64,579		121,392
Non-controlling interests		92,434		93,049
Total Equity		157,013		214,441
Total Liabilities and Equity	$	1,301,694	$	1,359,662

See notes to unaudited condensed consolidated financial statements.

‎

CENTURY CASINOS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF LOSS (Unaudited)



	For the three months				For the six months
	ended June 30,				ended June 30,
Amounts in thousands, except for per share information	2024		2023		2024		2023
Operating revenue:
Gaming	$	106,888	$	100,845	$	212,305	$	195,141
Pari-mutuel, sports betting and iGaming		5,298		5,057		8,687		8,442
Hotel		12,768		12,235		22,070		14,757
Food and beverage		13,810		11,818		26,555		17,586
Other		7,671		6,806		12,834		9,342
Net operating revenue		146,435		136,761		282,451		245,268
Operating costs and expenses:
Gaming		56,639		50,973		112,544		99,035
Pari-mutuel, sports betting and iGaming		5,938		5,805		9,688		9,517
Hotel		4,894		3,765		9,308		4,562
Food and beverage		12,451		10,587		24,682		16,232
Other		2,584		3,265		4,058		3,488
General and administrative		37,219		34,249		75,144		60,729
Depreciation and amortization		12,449		10,190		24,480		17,044
(Gain) on sale of casino operations (Note 1)		—		(672)		—		(1,246)
Total operating costs and expenses		132,174		118,162		259,904		209,361
Earnings from equity investment		—		30		—		1,121
Earnings from operations		14,261		18,629		22,547		37,028
Non-operating (expense) income:
Interest income		673		119		1,359		265
Interest expense		(25,756)		(18,349)		(51,570)		(35,997)
Gain on foreign currency transactions, cost recovery income and other (Note 1)		1,428		60		2,590		3,817
Non-operating (expense) income, net		(23,655)		(18,170)		(47,621)		(31,915)
(Loss) earnings before income taxes		(9,394)		459		(25,074)		5,113
Income tax expense		(29,619)		(96)		(25,633)		(1,719)
Net (loss) earnings		(39,013)		363		(50,707)		3,394
Net earnings attributable to non-controlling interests		(2,600)		(2,322)		(4,450)		(6,596)
Net loss attributable to Century Casinos, Inc. shareholders	$	(41,613)	$	(1,959)	$	(55,157)	$	(3,202)

Loss per share attributable to Century Casinos, Inc. shareholders:
Basic	$	(1.36)	$	(0.06)	$	(1.81)	$	(0.11)
Diluted	$	(1.36)	$	(0.06)	$	(1.81)	$	(0.11)
Weighted average shares outstanding - basic		30,683		30,335		30,551		30,196
Weighted average shares outstanding - diluted		30,683		30,335		30,551		30,196

See notes to unaudited condensed consolidated financial statements.

‎

CENTURY CASINOS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME (Unaudited)



	For the three months				For the six months
	ended June 30,				ended June 30,
Amounts in thousands	2024		2023		2024		2023
Net (loss) earnings	$	(39,013)	$	363	$	(50,707)	$	3,394

Other comprehensive (loss) income
Foreign currency translation adjustments		(244)		3,661		(2,349)		4,302
Other comprehensive (loss) income		(244)		3,661		(2,349)		4,302
Comprehensive (loss) income	$	(39,257)	$	4,024	$	(53,056)	$	7,696

Comprehensive (income) loss attributable to non-controlling interests
Net earnings attributable to non-controlling interests		(2,600)		(2,322)		(4,450)		(6,596)
Foreign currency translation adjustments		42		(518)		82		(693)
Comprehensive (loss) income attributable to Century Casinos, Inc. shareholders	$	(41,815)	$	1,184	$	(57,424)	$	407

See notes to unaudited condensed consolidated financial statements.

CENTURY CASINOS INC /CO/ [CNTY] Filings
10-Q	[2024-08-08]
10-Q	[2024-05-09]
10-K	[2024-03-14]
10-Q	[2023-11-09]
10-Q	[2023-08-08]
10-Q	[2023-05-09]
10-K	[2023-03-10]
10-Q	[2022-11-04]
10-Q	[2022-08-05]
10-Q	[2022-05-06]
10-K	[2022-03-08]
10-Q	[2021-11-05]
10-Q	[2021-08-06]
10-Q	[2021-05-07]
10-K	[2021-03-12]
10-Q	[2020-11-06]
10-Q	[2020-08-07]
10-Q	[2020-05-20]
10-K	[2020-03-13]
10-Q	[2019-11-04]
10-Q	[2019-08-08]
10-Q	[2019-05-09]
10-K	[2019-03-11]
10-Q	[2018-11-07]
10-Q	[2018-08-08]
10-Q	[2018-05-09]
10-K	[2018-03-09]
10-Q	[2017-11-06]
10-Q	[2017-08-07]
10-Q	[2017-05-05]
10-K	[2017-03-10]
10-Q	[2016-11-01]
10-Q	[2016-08-05]
10-Q	[2016-05-06]
10-K	[2016-03-11]
10-Q	[2015-11-06]
10-Q	[2015-08-07]
10-Q	[2015-05-08]
10-K	[2015-03-16]
10-Q	[2014-11-14]
10-Q	[2014-08-14]
10-Q	[2014-05-15]
10-K	[2014-03-31]
10-Q	[2013-11-14]
10-Q	[2013-08-14]
10-Q	[2013-05-15]
10-K	[2013-03-28]
10-Q	[2012-11-07]
10-Q	[2012-08-08]
10-Q	[2012-05-04]
10-K	[2012-03-29]