International edition
September 30, 2020

A 12% decrease in net operating revenue over the same quarter last year

Century Casinos reports third quarter 2008 results

(US).- Century Casinos reported the financial results for the three and nine months ended last September 30 For the third quarter of 2008, net operating revenue was us$ 21,861,000 and consolidated adjusted EBITDA was us$ 4,906,000.

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his represents a 12% decrease in net operating revenue over the same quarter of last year and a 16% decrease in consolidated Adjusted EBITDA. Declines in net operating revenue at their properties in Colorado and Caledon, South Africa were partially offset by an increase in net operating revenue at the company’s properties in Edmonton, Canada and Newcastle, South Africa.

The company reported a net loss of us$ 14,198,000 for the third quarter of 2008. Goodwill impairments and a valuation allowance established for US deferred tax assets resulted in a reduction of us$ 15,378,000, to net earnings.

In light of the deterioration of the US and Colorado economies, the firm decided to take a conservative approach and has written-off the goodwill of the two Colorado properties. Also, because of the current difficult economic environment in the US and Colorado, the company considered it prudent to put the US deferred tax asset into a reserve, which may still be applied against future taxable income.

For the first nine months of 2008, net operating revenue was us$ 64,387,000 and consolidated Adjusted EBITDA was us$ 13,849,000. This represents a 6% decrease in net operating revenue over the same period of last year. Declines in net operating revenue at our properties in Colorado, particularly at Womacks, and a decline in the average exchange rate between the US dollar and South African rand were partially offset by an improvement in net operating revenue at the company’s property in Edmonton.

The company reported a net loss of us$ 12,822,000 for the nine months ended September 30, 2008. Goodwill impairments and a valuation allowance established for US deferred tax assets resulted in a reduction of us$ 15,378,000 and fully diluted share, to net earnings.

Net operating revenue at the Century Casino & Hotel in Edmonton, Alberta, Canada, increased 14.7% to us$ 5,656,000 for the third quarter of 2008 compared to us$ 4,930,000 for the third quarter of 2007. Adjusted EBITDA was us$ 2,129,000 for the third quarter of 2008 and us$ 1,503,000 for the third quarter of 2007, an increase of 41.7%.

In the second half of 2007, it converted a dinner theater to a showroom venue that has drawn better attendance. The Alberta Gaming and Liquor Commission increased the number of slot machines at the casino from 600 to 650 in September 2007. In addition, it introduced 24-hour poker at the casino during the fourth quarter of 2007. All of these factors have led to additional play at the casino.

Net operating revenue at the Century Casino & Hotel in Edmonton increased 25.4% to $17,008,000 for the nine months ended September 30, 2008.

Net operating revenue at Womacks Casino in Cripple Creek, Colorado decreased 38.4% to us$ 3,086,000 for the third quarter of 2008 from us$ 5,011,000 for the third quarter of 2007. Gaming revenue in the Cripple Creek market as a whole declined 7.0% during this period compared to a 38.3% decline at Womacks.

Its net operating revenue decreased 34.7% to us$ 8,827,000 for the nine months ended September 30, 2008 from us$ 13,510,000 for the nine months ended September 30, 2007. Gaming revenue in the Cripple Creek market as a whole declined 9% compared to a 33.2% decline at Womacks.

Net operating revenue at the Century Casino and Hotel in Central City decreased 21.8% to us$ 4,655,000 for the third quarter of 2008 compared to us$ 5,954,000 reported for the third quarter of 2007. Adjusted EBITDA for the Century Casino & Hotel in Central City for the third quarter of 2008 decreased to us$ 1,184,000 compared to us$ 1,769,000 in the third quarter of 2007, a 33.1% decrease.

On December 31, 2007, the company acquired the remaining 35% of all issued and outstanding partnership units from the minority investor in its casino in Central City, Colorado. It now recognizes 100% of the casino’s net income or losses.

Net operating revenue at the Caledon Hotel, Spa and Casino in South Africa decreased 12% to us$ 3,988,000 for the third quarter of 2008 compared to us$ 4,526,000 reported for the third quarter of 2007. Its net operating revenue was us$ 12,277,000 for the nine months ended September 30, 2008 compared to us$ 13,324,000 for the nine months ended September 30, 2007, a decrease of 7.9%.

Net operating revenue at the Century Casino and Hotel in Newcastle (South Africa) increased 5% to us$ 3,023,000 for the third quarter of 2008 compared to us$ 2,885,000 reported for the third quarter of 2007, primarily due to increased attendance offset by a decline in the average exchange rate between the US dollar and the rand.

Management believes that attendance increased at the casino due to increased marketing efforts and special promotions. Net operating revenue in rand at the Century Casino and Hotel in Newcastle increased 15% for the third quarter of 2008.

Adjusted EBITDA at the Century Casino and Hotel in Newcastle for the third quarter of 2008 was us$ 1,044,000 compared to us$ 628,000 for the third quarter of 2007,a 66.2% increase. Market share of the KwaZulu-Natal gaming revenue increased from 3.4% for the three months ended September 30, 2007 to 3.6% for the three months ended September 30, 2008.

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