Century Casinos, Inc.  announced its financial results for the three months and year ended December 31, 2019.

Fourth Quarter 2019 Highlights*

• Net operating revenue was $67.2 million, an increase of 49% from the three months ended December 31, 2018.
• Loss from operations was ($14.7) million, a decrease of 846% from the three months ended December 31, 2018.
• Net loss attributable to Century Casinos, Inc. shareholders was ($20.1) million, a decrease of 4080% from the three months ended December 31, 2018.
• Adjusted EBITDA** was $9.8 million, an increase of 69% from the three months ended December 31, 2018.
• Loss per share was ($0.68).

2019 Highlights*

• Net operating revenue was $218.2 million, an increase of 29% from the year ended December 31, 2018.
• Loss from operations was ($5.2) million, a decrease of 155% from the year ended December 31, 2018.
• Net loss attributable to Century Casinos, Inc. shareholders was ($19.2) million, a decrease of 664% from the year ended December 31, 2018.
• Adjusted EBITDA** was $30.3 million, an increase of 30% from the year ended December 31, 2018.
• Basic loss per share was ($0.65), a decrease of 642% from the year ended December 31, 2018.
• Diluted loss per share was ($0.65), a decrease of 691% from the year ended December 31, 2018.
• Book value per share*** at December 31, 2019 was $5.54.

In December 2019, the Company determined that the intangible and tangible assets at Century Casino Bath were impaired. The impairment, which totaled $16.5 million, was determined after evaluating losses incurred by the casino since operations began and future forecasts of continued losses due to the current regulatory environment for casinos in England.

On December 6, 2019, the Company completed its acquisition (the “Acquisition”) of the operations of Isle Casino Cape Girardeau, located in Cape Girardeau, Missouri, Lady Luck Caruthersville, located in Caruthersville, Missouri, and Mountaineer Casino, Racetrack and Resort located in New Cumberland, West Virginia (collectively, the “Acquired Casinos”), from Eldorado Resorts, Inc. for an aggregate purchase price of approximately $110.6 million. Immediately prior to the Acquisition, the real estate assets underlying the Acquired Casinos were sold to an affiliate of VICI Properties Inc. (“VICI PropCo”). On the closing date, the Company and VICI PropCo entered into a triple net lease agreement (the “Master Lease”) for the three Acquired Casino properties. The Master Lease has an initial annual rent of approximately $25.0 million and an initial term of 15 years, with four five-year renewal options.

The consolidated results for the three months and year ended December 31, 2019 and 2018 are as follows:

	For the three months								For the year
Amounts in thousands, except per share data	ended December 31,								ended December 31, Advertisement
Consolidated Results:			2019			2018		% Change			2019			2018		% Change
Net Operating Revenue		$	67,236 Advertisement		$	45,106		49%		$	218,227		$	168,938		29%
(Loss) Earnings from Operations			(14,745) Advertisement			1,976		(846%)			(5,220)			9,459		(155%)
Net (Loss) Earnings Attributable to Century Casinos, Inc. Shareholders		$	(20,140)		$	506 Advertisement		(4080%)		$	(19,155)		$	3,394		(664%)
Adjusted EBITDA**		$	9,776		$ Advertisement	5,801		69%		$	30,281		$	23,377		30%
(Loss) Earnings Per Share Attributable to Century Casinos, Inc. Shareholders:
Basic		$ Advertisement	(0.68)		$	0.02		(3500%)		$	(0.65)		$	0.12		(642%)
Diluted Advertisement		$	(0.68)		$	0.02		(3500%)		$	(0.65)		$	0.11		(691%) Advertisement

“We are pleased with the fourth quarter results and the immediate impact the addition of the three casinos acquired from Eldorado Resorts had on our operating results,” Erwin Haitzmann and Peter Hoetzinger, Co-Chief Executive Officers of Century Casinos remarked. “The acquired casinos have had very encouraging initial results, and we are excited to continue integrating the operations into the Century brand and to see anticipated meaningful growth from this acquisition on Century Casinos in the future,” Messrs. Haitzmann and Hoetzinger concluded.

The Company is carefully monitoring the situation caused by the coronavirus (COVID-19) pandemic. Although the entire situation is unpredictable, our management teams are prepared to control what they can control. Our casinos are following and implementing the recommendations from the US Centers for Disease Control and Prevention, which include everyday preventative actions to help prevent the spread of respiratory viruses, such as washing your hands often with soap and water, avoiding touching your eyes, nose, and mouth with unwashed hands, covering your cough or sneeze with a tissue, cleaning and disinfecting frequently touched objects and surfaces and of course staying home when you are sick. We are also putting an extra effort into straight-forward and realistic guest messaging and have stepped-up employee trainings to ensure strict compliance with our policies and procedures. We are in constant communication with our employees to reinforce our sanitation safety procedures in both guest-facing and back-of-house areas. We are sanitizing high-traffic public areas at an increased frequency. Proper procedures are posted in all back-of-house work areas.

To date, COVID-19 has not had a significant impact on our US or Canadian markets, while the market in Poland has been weakening by approximately ten percent. Our customer base is very diversified within North America. Our casinos are ‘local’ casinos in urban and suburban locations, with the vast majority of our business from customers who live within an hour from our facilities. Our casinos have negligible meeting and convention business and few of our customers travel by air to visit us. This may temper the impact of COVID-19 on our business, but this situation continues to evolve and could adversely impact us until the virus runs its course.

Reportable Segment Results*
The table below shows the Company’s operating segments that are included in each of the Company’s reportable segments as of December 31, 2019:

Reportable Segment	Operating Segment	Reporting Unit
United States	Colorado	Century Casino & Hotel – Central City Advertisement
		Century Casino & Hotel – Cripple Creek
	West Virginia	Mountaineer Casino, Racetrack & Resort
	Missouri	Century Casino Cape Girardeau
		Century Casino Caruthersville
Canada	Edmonton	Century Casino & Hotel – Edmonton
		Century Casino St. Albert Advertisement
		Century Mile Racetrack and Casino
	Calgary	Century Casino Calgary
		Century Downs Racetrack and Casino
		Century Bets! Inc.
Poland	Poland	Casinos Poland
Corporate and Other	Corporate and Other Advertisement	Cruise Ships & Other
		Century Casino Bath
		Corporate Other

The Company’s net operating revenue increased by $22.1 million, or 49%, and by $49.3 million, or 29%, for the three months and year ended December 31, 2019, compared to the three months and year ended December 31, 2018. Following is a summary of the changes in net operating revenue by reportable segment for the three months and year ended December 31, 2019, compared to the three months and year ended December 31, 2018:

		Net Operating Revenue
		For the three months											For the year
		ended December 31,											ended December 31,
Amounts in thousands Advertisement		2019			2018			$ Change			% Change		2019			2018			$ Change			% Change
United States		$ Advertisement	23,926		$	7,938		$	15,988		201%		$	49,998		$	33,483 Advertisement		$	16,515		49%
Canada			20,291			15,678			4,613		29%			80,650			61,361 Advertisement			19,289		31%
Poland			21,675			19,514			2,161		11%			81,894			68,209			13,685 Advertisement		20%
Corporate and Other			1,344			1,976			(632)		(32%)			5,685			5,885			(200)		(3%) Advertisement
Consolidated		$	67,236		$	45,106		$	22,130		49%		$	218,227 Advertisement		$	168,938		$	49,289		29%

The Company’s earnings from operations decreased by ($16.7) million, or (846%), and by ($14.7) million, or (155%), for the three months and year ended December 31, 2019, compared to the three months and year ended December 31, 2018.  Following is a summary of the changes in earnings (loss) from operations by reportable segment for the three months and year ended December 31, 2019, compared to the three months and year ended December 31, 2018:

		Earnings (Loss) from Operations
		For the three months											For the year
		ended December 31, Advertisement											ended December 31,
Amounts in thousands		2019			2018			$ Change			% Change		2019			2018			$ Change			% Change Advertisement
United States		$	4,685		$	1,033		$	3,652		354%		$	9,478 Advertisement		$	5,882		$	3,596		61%
Canada			4,000			3,675			325		9% Advertisement			16,115			14,633			1,482		10%
Poland			1,627			460			1,167		254%			5,915 Advertisement			145			5,770		3979%
Corporate and Other			(25,057)			(3,192)			(21,865)		(685%)			(36,728)			(11,201) Advertisement			(25,527)		(228%)
Consolidated		$	(14,745)		$	1,976		$	(16,721)		(846%) Advertisement		$	(5,220)		$	9,459		$	(14,679)		(155%)

Net earnings attributable to Century Casinos, Inc. shareholders decreased by ($20.6) million, or (4080%), and by ($22.5) million, or (664%), for the three months and year ended December 31, 2019, compared to the three months and year ended December 31, 2018. Following is a summary of the changes in net earnings (loss) attributable to Century Casinos, Inc. shareholders by reportable segment for the three months and year ended December 31, 2019, compared to the three months and year ended December 31, 2018:

		Net Earnings (Loss) Attributable to Century Casinos, Inc. Shareholders
		For the three months Advertisement											For the year
		ended December 31,											ended December 31,
Amounts in thousands		2019			2018			$ Change			% Change		2019			2018 Advertisement			$ Change			% Change
United States		$	2,261		$	767		$	1,494		195% Advertisement		$	5,825		$	4,373		$	1,452		33%
Canada			948			2,077 Advertisement			(1,129)		(54%)			6,669			7,715			(1,046)		(14%)
Poland			1,352			179			1,173 Advertisement		655%			3,466			(153)			3,619		2365%
Corporate and Other			(24,701)			(2,517)			(22,184)		(881%) Advertisement			(35,115)			(8,541)			(26,574)		(311%)
Consolidated		$	(20,140)		$	506		$ Advertisement	(20,646)		(4080%)		$	(19,155)		$	3,394		$	(22,549)		(664%)

Items deducted from or added to earnings from operations to arrive at net earnings (loss) attributable to Century Casinos, Inc. shareholders include interest income, interest expense, gains (losses) on foreign currency transactions and other, income tax expense and non-controlling interests.

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The Company’s Adjusted EBITDA** increased by $4.0 million, or 69%, and by $6.9 million, or 30%, for the three months and year ended December 31, 2019 compared to the three months and year ended December 31, 2018. Following is a summary of the changes in Adjusted EBITDA** by reportable segment for the three months and year ended December 31, 2019 compared to the three months and year ended December 31, 2018:

		Adjusted EBITDA**
		For the three months											For the year
		ended December 31,											ended December 31,
Amounts in thousands		2019			2018			$ Change Advertisement			% Change		2019			2018			$ Change			% Change
United States		$	5,441		$	1,582 Advertisement		$	3,859		244%		$	11,825		$	8,061		$	3,764		47% Advertisement
Canada			5,378			4,991			387		8%			21,212			19,522			1,690		9%
Poland Advertisement			2,484			1,733			751		43%			9,392			4,890			4,502		92%
Corporate and Other			(3,527) Advertisement			(2,505)			(1,022)		(41%)			(12,148)			(9,096)			(3,052)		(34%)
Consolidated		$	9,776 Advertisement		$	5,801		$	3,975		69%		$	30,281		$	23,377		$ Advertisement	6,904		30%

Balance Sheet and Liquidity
As of December 31, 2019, the Company had $54.8 million in cash and cash equivalents and $179.0 million in outstanding debt on its balance sheet compared to $45.6 million in cash and cash equivalents and $59.5 million in outstanding debt at December 31, 2018. The outstanding debt as of December 31, 2019 included the following: $170.0 million related to the Company’s credit agreement with a group of lenders led by Macquarie Capital that the Company entered into in December 2019 in connection with the Acquisition, replacing the Company’s credit agreement with the Bank of Montreal; $2.0 million of bank debt related to Casinos Poland; $2.0 million of bank debt related to Century Casino Bath; and $15.0 million related to a long-term land lease for CDR, net of $10.0 million in deferred financing costs.

Conference Call Information
Today the Company will post a copy of its Annual Report on Form 10-K filed with the SEC for the year ended December 31, 2019 on its website at www.cnty.com/investor/financials/sec-filings. The Company will also post a presentation on the year end results on its website at www.cnty.com/investor/presentations.

The Company will host its fourth quarter 2019 earnings conference call today, Friday, March 13^th, at 8:00 am MDT. U.S. domestic participants should dial 1-844-244-9160. For all international participants, please use 330-931-4670 to dial-in. Participants may listen to the call live at www.centurycasinos.adobeconnect.com/earningsrelease or obtain a recording of the call on the Company’s website until March 31, 2020 at www.cnty.com/investor/financials/sec-filings.

CENTURY CASINOS, INC. AND SUBSIDIARIES FINANCIAL INFORMATION – US GAAP BASIS
Condensed Consolidated Statements of (Loss) Earnings
	For the three months						For the year
	ended December 31, Advertisement						ended December 31,
Amounts in thousands, except for per share information		2019			2018			2019			2018
Operating revenue:
Net operating revenue		$	67,236 Advertisement		$	45,106		$	218,227		$	168,938
Operating costs and expenses:
Total operating costs and expenses			81,981			43,152 Advertisement			223,446			159,502
Earnings (loss) from equity investment			—			22			(1)			23
(Loss) earnings from operations			(14,745)			1,976 Advertisement			(5,220)			9,459
Non-operating income (expense), net			(3,569)			(1,053)			(6,747)			(3,536)
(Loss) earnings before income taxes			(18,314)			923 Advertisement			(11,967)			5,923
Income tax provision			(955)			(133)			(4,174)			(1,917)
Net (loss) earnings			(19,269)			790 Advertisement			(16,141)			4,006
Net earnings attributable to non-controlling interests			(871)			(284)			(3,014)			(612)
Net (loss) earnings attributable to Century Casinos, Inc. shareholders		$	(20,140) Advertisement		$	506		$	(19,155)		$	3,394
(Loss) earnings per share attributable to Century Casinos, Inc. shareholders:
Basic		$	(0.68) Advertisement		$	0.02		$	(0.65)		$	0.10
Diluted		$	(0.68)		$ Advertisement	0.02		$	(0.65)		$	0.10
Weighted average common shares
Basic			29,474			29,439			29,452 Advertisement			29,401
Diluted			29,474			29,861			29,452			29,962

CENTURY CASINOS, INC. AND SUBSIDIARIES FINANCIAL INFORMATION – US GAAP BASIS
Condensed Consolidated Balance Sheets
		December 31,			December 31, Advertisement
Amounts in thousands		2019			2018
Assets
Current assets		$	79,366		$	54,974
Property and equipment, net Advertisement			503,933			187,017
Other assets			143,601			36,834
Total assets		$	726,900		$	278,825 Advertisement
Liabilities and Equity
Current liabilities		$	56,570		$	50,020
Non-current liabilities			498,255			45,422
Century Casinos, Inc. shareholders’ equity Advertisement			163,306			176,321
Non-controlling interests			8,769			7,062
Total liabilities and equity		$	726,900		$	278,825 Advertisement

CENTURY CASINOS, INC. AND SUBSIDIARIES SUPPLEMENTAL INFORMATION
Constant Currency* Results (unaudited)
		For the three months								For the year
		ended December 31,								ended December 31,
Amounts in thousands			2019			2018		% Change Advertisement			2019			2018		% Change
Net operating revenue as reported (GAAP)		$	67,236		$	45,106		49%		$ Advertisement	218,227		$	168,938		29%
Foreign currency impact vs. 2018			559								7,207
Net operating revenue constant currency (non-GAAP)*		$	67,795 Advertisement		$	45,106		50%		$	225,434		$	168,938		33%
(Loss) earnings from operations (GAAP)		$ Advertisement	(14,745)		$	1,976		(846%)		$	(5,220)		$	9,459		(155%)
Foreign currency impact vs. 2018 Advertisement			934								955
(Loss) earnings from operations constant currency (non-GAAP)*		$	(13,811)		$	1,976		(799%)		$	(4,265) Advertisement		$	9,459		(145%)
Net (loss) earnings attributable to Century Casinos, Inc. shareholders as reported (GAAP)		$	(20,140)		$	506		(4080%)		$ Advertisement	(19,155)		$	3,394		(664%)
Foreign currency impact vs. 2018			339								(40)
Net (loss) earnings attributable to Century Casinos, Inc. shareholders constant currency (non-GAAP)*		$	(19,801) Advertisement		$	506		(4013%)		$	(19,195)		$	3,394		(666%)

Gains and losses on foreign currency transactions are added back to net (loss) earnings in the Company’s Adjusted EBITDA** calculations. As such, there is no foreign currency impact to Adjusted EBITDA** when calculating Constant Currency* results.

Adjusted EBITDA Margins *** (unaudited) Advertisement
	For the three months		For the year
	ended December 31,		ended December 31,
	2019	2018	2019	2018
United States	23% Advertisement	20%	24%	24%
Canada	27%	32%	26%	32%
Poland	11% Advertisement	9%	11%	7%
Corporate and Other	(262%)	(127%)	(214%)	(155%)
Consolidated Adjusted EBITDA Margin	15% Advertisement	13%	14%	14%

CENTURY CASINOS, INC. AND SUBSIDIARIES SUPPLEMENTAL INFORMATION
Reconciliation of Adjusted EBITDA ** to Net Earnings (Loss) Attributable to Century Casinos, Inc. Shareholders by Reportable Segment.
	For the three months ended December 31, 2019
Amounts in thousands		United States			Canada			Poland Advertisement			Corporate and Other			Total
Net earnings (loss) attributable to Century Casinos, Inc. shareholders		$	2,261		$	948		$	1,352		$ Advertisement	(24,701)		$	(20,140)
Interest expense (income), net			1,635			1,456			55			1,020			4,166
Income taxes (benefit) Advertisement			789			1,375			222			(1,431)			955
Depreciation and amortization			756			1,356			781			254 Advertisement			3,147
Net earnings attributable to non-controlling interests			—			195			676			—			871
Non-cash stock-based compensation			—			— Advertisement			—			324			324
Loss (gain) on foreign currency transactions, cost recovery income and other			—			26			(678)			16,704			16,052
Loss on disposition of fixed assets Advertisement			—			22			76			1			99
Acquisition costs			—			—			—			4,302 Advertisement			4,302
Adjusted EBITDA		$	5,441		$	5,378		$	2,484		$	(3,527) Advertisement		$	9,776
	For the three months ended December 31, 2018
Amounts in thousands		United States			Canada			Poland			Corporate and Other			Total
Net earnings (loss) attributable to Century Casinos, Inc. shareholders Advertisement		$	767		$	2,077		$	179		$	(2,517)		$	506 Advertisement
Interest expense (income), net			—			1,084			50			65			1,199
Income taxes (benefit)			266			435			280 Advertisement			(848)			133
Depreciation and amortization			548			779			1,025			402			2,754
Net earnings attributable to non-controlling interests			— Advertisement			174			89			21			284
Non-cash stock-based compensation			—			—			—			255			255 Advertisement
(Gain) loss on foreign currency transactions and cost recovery income			—			(95)			(138)			94			(139)
Loss on disposition of fixed assets			1			4			27 Advertisement			23			55
Pre-opening expenses			—			533			221			—			754
Adjusted EBITDA		$ Advertisement	1,582		$	4,991		$	1,733		$	(2,505)		$	5,801

CENTURY CASINOS, INC. AND SUBSIDIARIES SUPPLEMENTAL INFORMATION Advertisement
Reconciliation of Adjusted EBITDA ** to Net Earnings (Loss) Attributable to Century Casinos, Inc. Shareholders by Reportable Segment.
	For the Year ended December 31, 2019
Amounts in thousands		United States			Canada			Poland			Corporate and Other			Total
Net earnings (loss) attributable to Century Casinos, Inc. shareholders		$ Advertisement	5,825		$	6,669		$	3,466		$	(35,115)		$	(19,155)
Interest expense (income), net Advertisement			1,635			5,312			197			1,085			8,229
Income taxes (benefit)			2,018			3,278			1,617			(2,739) Advertisement			4,174
Depreciation and amortization			2,330			4,539			3,064			910			10,843
Net earnings (loss) attributable to non-controlling interests			—			1,295 Advertisement			1,731			(12)			3,014
Non-cash stock-based compensation			—			—			—			1,303			1,303
(Gain) loss on foreign currency transactions, cost recovery income and other Advertisement			—			(439)			(1,096)			16,709			15,174
Loss on disposition of fixed assets			17			20			413			345 Advertisement			795
Acquisition costs			—			—			—			5,366			5,366
Pre-opening expenses			—			538 Advertisement			—			—			538
Adjusted EBITDA		$	11,825		$	21,212		$	9,392 Advertisement		$	(12,148)		$	30,281
	For the Year ended December 31, 2018
Amounts in thousands		United States			Canada			Poland			Corporate and Other Advertisement			Total
Net earnings (loss) attributable to Century Casinos, Inc. shareholders		$	4,373		$	7,715		$	(153)		$	(8,541) Advertisement		$	3,394
Interest expense (income), net			1			3,895			206			12			4,114
Income taxes (benefit)			1,508 Advertisement			2,536			595			(2,722)			1,917
Depreciation and amortization			2,178			3,211			3,065			945			9,399 Advertisement
Net earnings (loss) attributable to non-controlling interests			—			722			(75)			(35)			612
Non-cash stock-based compensation			—			—			— Advertisement			868			868
(Gain) loss on foreign currency transactions and cost recovery income			—			(235)			(428)			2			(661)
Loss on disposition of fixed assets			1 Advertisement			10			1,054			25			1,090
Pre-opening expenses			—			1,668			626			350			2,644 Advertisement
Adjusted EBITDA		$	8,061		$	19,522		$	4,890		$	(9,096)		$ Advertisement	23,377

CENTURY CASINOS, INC. AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION
*  The impact of foreign exchange rates is highly variable and difficult to predict.  The Company uses a Constant Currency basis to show the impact from foreign exchange rates on current period financial information compared to prior period financial information using the prior period’s foreign exchange rates. In order to properly understand the underlying business trends and performance of the Company’s ongoing operations, management believes that investors may find it useful to consider the impact of excluding changes in foreign exchange rates from the Company’s net operating revenue, (loss) earnings from operations and net earnings (loss) attributable to Century Casinos, Inc. shareholders. Constant currency results are calculated by dividing the current quarter or year to date local currency segment results, excluding the local currency impact of foreign currency gains and losses, by the prior year’s average exchange rate for the quarter or year to date and comparing them to actual U.S. dollar results for the prior quarter or year to date. The average exchange rates for the current and prior year are reported in Note 2 to the Consolidated Financial Statements included in Part II, Item 8, “Financial Statements and Supplementary Data” of the Company’s Annual Report on Form 10-K. The average exchange rates for the three months ended December 31, 2019 and 2018 are presented below.

		For the three months
		ended December 31,
Average Rates		2019		2018		% Change
Canadian dollar (CAD)		1.3199 Advertisement		1.3218		0.1%
Euros (EUR)		0.9032		0.8763		(3.1%)
Polish zloty (PLN)		3.8702		3.7668		(2.7%) Advertisement
British pound (GBP)		0.7766		0.7773		0.1%
Source: Pacific Exchange Rate Service

Constant currency information is not a measure of financial performance under generally accepted accounting principles in the United States of America (GAAP) and should not be considered a substitute for net operating revenue, (loss) earnings from operations or net earnings (loss) attributable to Century Casinos, Inc. shareholders as determined in accordance with GAAP.

SOURCE Century Casinos, Inc.