CENTURY CASINOS INC /CO/ [CNTY] Filings

10-Q 1 cnty-20220331x10q.htm 10-Q cnty-20220331x10q

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 March 31, 2022

¨ 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 ¨
			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:

29,814,047 shares of common stock, $0.01 par value per share, were outstanding as of May 2, 2022.

INDEX


Part I	FINANCIAL INFORMATION	Page
Item 1.	Condensed Consolidated Financial Statements (Unaudited)	3
	Condensed Consolidated Balance Sheets as of March 31, 2022 and December 31, 2021	3
	Condensed Consolidated Statements of Earnings (Loss) for the Three Months Ended March 31, 2022 and 2021	4
	Condensed Consolidated Statements of Comprehensive Income (Loss) for the Three Months Ended March 31, 2022 and 2021	5
	Condensed Consolidated Statements of Equity for the Three Months Ended March 31, 2022 and 2021	6
	Condensed Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2022 and 2021	7
	Notes to Condensed Consolidated Financial Statements	8
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	28
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	43
Item 4.	Controls and Procedures	43
Part II	OTHER INFORMATION
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	44
Item 6.	Exhibits	45
Signatures		46

‎

PART I – FINANCIAL INFORMATION

Item 1. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

CENTURY CASINOS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)


	March 31,			December 31,
Amounts in thousands, except for share and per share information	2022			2021
ASSETS
Current Assets:
Cash and cash equivalents	$	117,217	$	107,821
Receivables, net		7,482		9,414
Prepaid expenses		11,142		12,417
Inventories		1,452		1,443
Restricted cash		20		—
Other current assets		1,739		1,163
Assets held for sale		—		8,422
Total Current Assets		139,052		140,680

Property and equipment, net		474,671		472,302
Leased right-of-use assets, net		28,214		28,383
Goodwill		10,230		10,347
Intangible assets, net		48,120		48,930
Deferred income taxes		491		555
Note receivable, net of current portion and unamortized discount		358		358
Deposits and other		3,218		1,803
Total Assets	$	704,354	$	703,358

LIABILITIES AND EQUITY
Current Liabilities:
Current portion of long-term debt	$	3,885	$	3,958
Current portion of operating lease liabilities		3,783		3,915
Current portion of finance lease liabilities		160		38
Accounts payable		10,353		12,651
Accrued liabilities		19,536		13,592
Accrued payroll		9,422		11,190
Taxes payable		11,756		15,089
Total Current Liabilities		58,895		60,433

Long-term debt, net of current portion and deferred financing costs (Note 4)		177,110		177,526
Long-term financing obligation to VICI Properties, Inc. subsidiaries (Note 5)		282,243		281,901
Operating lease liabilities, net of current portion		27,261		27,229
Finance lease liabilities, net of current portion		268		43
Taxes payable and other		2,962		2,954
Deferred income taxes		2,827		2,915
Total Liabilities		551,566		553,001
Commitments and Contingencies (Note 6)

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; 29,814,047 and 29,624,814 shares issued and outstanding		298		296
Additional paid-in capital		118,706		118,469
Retained earnings		29,507		29,289
Accumulated other comprehensive loss		(4,949)		(6,430)
Total Century Casinos, Inc. Shareholders' Equity		143,562		141,624
Non-controlling interests		9,226		8,733
Total Equity		152,788		150,357
Total Liabilities and Equity	$	704,354	$	703,358

See notes to unaudited condensed consolidated financial statements.

CENTURY CASINOS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (LOSS) (Unaudited)



	For the three months
	ended March 31,
Amounts in thousands, except for per share information	2022		2021
Operating revenue:
Gaming	$	89,876	$	63,428
Pari-mutuel, sports betting and iGaming		3,430		2,484
Hotel		2,074		1,750
Food and beverage		5,038		2,720
Other		2,685		2,033
Net operating revenue		103,103		72,415
Operating costs and expenses:
Gaming		44,749		31,739
Pari-mutuel, sports betting and iGaming		3,768		2,401
Hotel		642		511
Food and beverage		4,979		2,605
General and administrative		26,971		20,268
Depreciation and amortization		6,795		6,643
Loss on sale of assets (Note 1)		2,154		—
Total operating costs and expenses		90,058		64,167
Earnings from operations		13,045		8,248
Non-operating (expense) income:
Interest income		17		—
Interest expense		(10,811)		(10,522)
Gain on foreign currency transactions, cost recovery income and other		1,893		470
Non-operating (expense) income, net		(8,901)		(10,052)
Earnings (loss) before income taxes		4,144		(1,804)
Income tax expense		(1,435)		(99)
Net earnings (loss)		2,709		(1,903)
Net (earnings) loss attributable to non-controlling interests		(2,491)		484
Net earnings (loss) attributable to Century Casinos, Inc. shareholders	$	218	$	(1,419)

Earnings (loss) per share attributable to Century Casinos, Inc. shareholders:
Basic	$	0.01	$	(0.05)
Diluted	$	0.01	$	(0.05)
Weighted average shares outstanding - basic		29,661		29,576
Weighted average shares outstanding - diluted		31,335		29,576

See notes to unaudited condensed consolidated financial statements.

‎

CENTURY CASINOS, INC. AND SUBSIDIARIES

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



	For the three months
	ended March 31,
Amounts in thousands	2022		2021

Net earnings (loss)	$	2,709	$	(1,903)

Other comprehensive income (loss)
Foreign currency translation adjustments		1,443		747
Other comprehensive income		1,443		747
Comprehensive income (loss)	$	4,152	$	(1,156)

Comprehensive income (loss) attributable to non-controlling interests
Net (earnings) loss attributable to non-controlling interests		(2,491)		484
Foreign currency translation adjustments		38		269
Comprehensive income (loss) attributable to Century Casinos, Inc. shareholders	$	1,699	$	(403)

See notes to unaudited condensed consolidated financial statements.

CENTURY CASINOS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY (Unaudited)


	For the three months
	ended March 31,
Amounts in thousands, except for share information	2022		2021
Common Stock
Balance, beginning of period	$	296	$	296
Performance stock unit issuance		2		—
Balance, end of period		298		296

Additional Paid-in Capital
Balance, beginning of period	$	118,469	$	115,570
Amortization of stock-based compensation		673		259
Performance stock unit issuance		(436)		—
Balance, end of period		118,706		115,829

Accumulated Other Comprehensive Loss
Balance, beginning of period	$	(6,430)	$	(6,379)
Foreign currency translation adjustment		1,481		1,016
Balance, end of period		(4,949)		(5,363)

Retained Earnings
Balance, beginning of period	$	29,289	$	8,667
Net earnings (loss)		218		(1,419)
Balance, end of period		29,507		7,248

Total Century Casinos, Inc. Shareholders' Equity	$	143,562	$	118,010

Noncontrolling Interests
Balance, beginning of period	$	8,733	$	8,829
Net earnings (loss)		2,491		(484)
Foreign currency translation adjustment		(38)		(269)
Distribution to non-controlling interest		(1,960)		(655)
Balance, end of period		9,226		7,421

Total Equity	$	152,788	$	125,431

Common shares issued		189,233		—

See notes to unaudited condensed consolidated financial statements.

CENTURY CASINOS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)


	For the three months
	ended March 31,
Amounts in thousands		2022		2021

Cash Flows provided by Operating Activities:
Net earnings (loss)		$	2,709	$	(1,903)
Adjustments to reconcile net earnings (loss) to net cash provided by operating activities:
Depreciation and amortization			6,795		6,643
Lease amortization			1,043		1,116
Loss on disposition of fixed assets			36		105
Adjustment of contingent liability (Note 6)			—		6
Amortization of stock-based compensation expense			673		259
Amortization of deferred financing costs and discount on note receivable			391		391
Loss on sale of assets (Note 1)			2,154		—
Deferred taxes			(24)		(772)
Changes in Operating Assets and Liabilities:
Receivables, net

CENTURY CASINOS INC /CO/ [CNTY] Filings
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]