Century Casinos Reports Q1 2009 Results

12 May 2009

COLORADO SPRINGS, Colo., May 11 /PRNewswire-FirstCall/ -- Century Casinos, Inc. (Nasdaq: CNTY; Vienna Stock Exchange) announced today the financial results for the three months ended March 31, 2009.

For the first quarter of 2009, net operating revenue from continuing operations was $11,999,000 (operating results from discontinued operations have been excluded from this discussion) and consolidated Adjusted EBITDA* was $2,099,000. This represents an 11% decrease in net operating revenue from continuing operations over the same quarter of last year ($13,530,000 in the first quarter of 2008) and an 8% increase in consolidated Adjusted EBITDA* ($1,947,000 in the first quarter of 2008). We experienced a decline in net operating revenue at our properties in Colorado, primarily due to a decrease in our market share of the Cripple Creek, Colorado gaming market (at Womacks) and a decline in the overall gaming market in Central City, Colorado (at the Century Casino and Hotel). Net operating revenue in Edmonton, as reported in U.S. dollars, was 14% lower than the same period in 2008 but increased by 7% in the local currency (Canadian dollar). The reported results were negatively affected by a 24% decrease in the average exchange rate between the U.S. dollar and Canadian dollar in the first quarter of 2009 compared to the first quarter of 2008. Operating earnings from continuing operations increased to $176,000 in the first quarter of 2009 compared to a loss of $66,000 in the first quarter of 2008.

The Company reported a loss from continuing operations of $1,473,000, or ($0.07) per basic and fully diluted share for the first quarter of 2009. The Company reported a loss from continuing operations of $568,000, or ($0.02) per basic and fully diluted share, for the first quarter of 2008. Foreign currency losses reduced basic and fully diluted earnings per share by $0.02 for the first quarter of 2009 and foreign currency gains increased basic and fully diluted earnings per share by $0.01 for the first quarter of 2008. During the third quarter of 2008, the Company established a valuation allowance on its U.S. deferred taxes. The tax effect on net operating income or losses incurred in the U.S. will reduce or increase this valuation allowance. As a result, during the first quarter of 2009, the Company did not recognize tax benefits of $500,000 on operating losses incurred in the U.S. The Company has accumulated deferred tax assets of $4.2 million which can be applied against the tax on potential future US income.

Including discontinued operations, the Company reported net earnings of $345,000, or $0.01 per basic and fully diluted share, for the first quarter of 2009. During the first quarter of 2009, the Company reported a gain of $877,000, or $0.04 per basic and fully diluted share, on the previously reported disposition of the Century Casino Millennium. The Company reported net earnings of $541,000, or $0.02 per basic and fully diluted share, for the first quarter of 2008.

Update on sale of Century Casino Africa

On December 19, 2008, the Company through a subsidiary, entered into an agreement to sell all of the outstanding shares of Century Casinos Africa (Pty) Limited ("CCA") for a gross selling price of ZAR 460.0 million ($48.3 million) less the balance of third party South African debt and other agreed to amounts. Net proceeds from the transaction are expected to be approximately ZAR 357.3 million ($37.5 million) and are payable at closing, which is expected to occur towards the end of the first half of 2009. CCA owns the Caledon Hotel, Spa & Casino and 60% of the Century Casino & Hotel in Newcastle, South Africa. On April 24, 2009, the Competition Tribunal of South Africa approved the transaction. The closing of the transaction is still subject to approval by the Western Cape Gambling and Racing Board and the KwaZulu-Natal Gambling Board.

The Company's discontinued operations had a combined carrying value of approximately $23,509,000 at March 31, 2009. Net operating revenue of our discontinued operations was $5,330,000 and $7,450,000 for the first quarter of 2009 and 2008, respectively. Earnings from discontinued operations were $1,818,000 and $1,109,000 for the first quarter of 2009 and 2008, respectively, including an $877,000 gain on the sale of Century Casino Millennium.

Property Results (Continuing Operations)

Century Casino & Hotel (Edmonton, Alberta, Canada) - Net operating revenue at the Century Casino & Hotel in Edmonton decreased by 14% to $4,796,000 for the first quarter of 2009 compared to $5,557,000 for the first quarter of 2008, due to a decline in the average exchange rate between the U.S. dollar and the Canadian dollar. In Canadian dollars, net operating revenue increased by 7% to $5,970,000 for the first quarter of 2009 compared to $5,579,000 for the first quarter of 2008. This increase is the result of an increase of 15.7% in table revenue and an increase in slot revenue of 1.5%. Adjusted EBITDA* was $1,775,000 for the first quarter of 2009 and $1,912,000 for the first quarter of 2008, a decrease of 7%, which can also be attributed to the decline in the average exchange rate between the U.S. dollar and the Canadian dollar. In Canadian dollars, Adjusted EBITDA* increased by 15%, from CAD 1,917,000 for the three months ended March 31, 2008 to CAD 2,208,000 for the three months ended March 31, 2009.

Womacks Casino (Cripple Creek, Colorado, USA) - Net operating revenue at Womacks Casino in Cripple Creek, Colorado decreased 10.8% to $2,572,000 for the first quarter of 2009 from $2,882,000 for the first quarter of 2008. This represents an 18.5% decrease in the market share while our share of the slot machines in the Cripple Creek market declined by 19.7%. The Company is reviewing strategies to improve revenue at Womacks and has reduced staffing levels at the casino. Womacks' Adjusted EBITDA* for the first quarter of 2009 was $494,000 compared to $279,000 in the first quarter of 2008, an increase of 77%. The increase is primarily due to cost cutting measures at the casino.

Century Casino and Hotel (Central City, Colorado, USA) - Net operating revenue at the Century Casino and Hotel in Central City decreased 6% to $4,163,000 for the first quarter of 2009 compared to $4,407,000 reported for the first quarter of 2008. The Central City gaming market as a whole declined 9.5%. Adjusted EBITDA* for the Century Casino & Hotel in Central City for the first quarter of 2009 increased to $1,063,000 compared to $835,000 in the first quarter of 2008, a 27% increase. As with Womacks, the increase in Adjusted EBITDA* is primarily due to cost cutting measures at the casino.

Cruise Ships - The Company's ship-based casinos contributed net operating revenue of $468,000 and Adjusted EBITDA* of $58,000 for the first quarter of 2009 compared to net operating revenue of $683,000 and Adjusted EBITDA* of $150,000 for the first quarter of 2008. Management believes that reduced occupancy levels on the ships can be attributed to the general downturn in the global economy which also led casino guests to spend less per visit; however management believes that a 10% increase in passenger visitation to the casino is attributable to targeted marketing efforts. Management believes that 30% fewer gaming days on the Silvercloud during the three months ended March 31, 2009, compared to the three months ended March 31, 2008, negatively impacted our gaming revenue.

On November 24, 2008, we entered into an exclusive, long-term agreement with TUI Cruises GmbH ("TUI") whereby we were selected by TUI to operate casinos on all cruise ships that TUI will put into service before December 31, 2012. The first vessel is anticipated to go into service in May 2009.

Corporate - Corporate operations reported negative Adjusted EBITDA* of $1,291,000 for the first quarter of 2009 compared to negative Adjusted EBITDA* of $1,229,000 for the first quarter of 2008. The decrease in Adjusted EBITDA* is primarily due to a decline in earnings recorded from our equity investment in Casinos Poland of $371,000, offset by a decrease in general and administrative expenses of $309,000. Our earnings from Casinos Poland declined due to a below average hold in the month of February 2009 and a decline in the average exchange rate between the between the U.S. dollar and Polish zloty of 44.8% when comparing the first quarter of 2008 to the first quarter of 2009.

The Company will post a copy of the Form 10-Q filed with the SEC for the first quarter of 2009 on its web site at www.cnty.com/corporate/investor/sec-filings/ on Monday, May 11, 2009.

On Monday, May 11, 2009, Century Casinos will host its Q1 2009 Earnings Conference Call, at 10:30 am MDT; 6:30pm CEST respectively. US domestic participants please dial +1-800-895-0198; all other international participants please use +1-785-424-1053 to dial in. Participants may also listen to the call live or obtain a recording of the call on our website at www.cnty.com/corporate/investor/financial-results/.

*See discussion and reconciliation of Adjusted EBITDA below.

    CENTURY CASINOS, INC. AND SUBSIDIARIES    FINANCIAL INFORMATION - US GAAP BASIS                                 Century Casinos, Inc.                   Condensed Consolidated Statements of Earnings (Unaudited)                    (Amounts in thousands, except for share information)                                                   For the Three Months                                                      Ended March 31,                                                  2009              2008    Operating revenue:      Gaming                                    $11,472           $12,974      Hotel, food and beverage                    1,899             2,084      Other                                         409               453        Gross revenue                            13,780            15,511      Less promotional allowances                 1,781             1,981        Net operating revenue                    11,999            13,530    Operating costs and expenses:      Gaming                                      4,469             5,392      Hotel, food and beverage                    1,540             1,728      General and administrative                  4,331             5,267      Depreciation                                1,572             1,669        Total operating costs and expenses       11,912            14,056    Earnings from unconsolidated subsidiary          89               460    Operating earnings (loss) from continuing     operations                                     176               (66)    Non-operating income (expense):      Interest income                                 9                12      Interest expense                             (900)           (1,233)      (Losses) gains on foreign currency       transactions                                (525)              119        Non-operating (expense), net             (1,416)           (1,102)    Loss from continuing operations before     income taxes and minority interest          (1,240)           (1,168)      Income tax provision (benefit)                219              (645)    Loss from continuing operations before     minority interest                           (1,459)             (523)      Minority interest in subsidiary earnings      (14)              (45)    Loss from continuing operations              (1,473)             (568)    Discontinued operations:      Earnings from discontinued operations       1,204             1,382      Gain on disposition of Century Casino       Millennium                                   877                 -      Provision for income taxes                    263               273    Earnings from discontinued operations         1,818             1,109    Net earnings                                   $345              $541    CENTURY CASINOS, INC. AND SUBSIDIARIES    FINANCIAL INFORMATION - US GAAP BASIS                             Century Casinos, Inc.                               Earnings per Share                                                  For the Three Months                                                     Ended March 31,                                                 2009              2008    Basic earnings per share:      Loss from continuing operations            $(0.07)           $(0.02)      Earnings from discontinued operations        0.08              0.04      Net earnings                                $0.01             $0.02    Diluted earnings per share:      Loss from continuing operations            $(0.07)           $(0.02)      Earnings from discontinued operations        0.08              0.04      Net earnings                                $0.01             $0.02    Weighted Average Shares Outstanding:      Basic                                  23,524,067        23,302,562      Diluted                                23,721,222        23,632,076                             Century Casinos, Inc.                Condensed Consolidated Balance Sheets (Unaudited)                             (Amounts in thousands)                                                March 31,       December 31,                                                  2009              2008    Assets      Current Assets, excluding assets       held for sale                            $10,232            $9,707      Assets held for sale (all current)         33,249            35,983      Other Assets                              100,353           104,316      Total Assets                             $143,834          $150,006    Liabilities and Shareholders' Equity      Current Liabilities, excluding       liabilities related to assets held       for sale                                 $15,205           $17,521      Liabilities related to assets       held for sale (all current)                9,740            10,770      Non-Current Liabilities                    27,883            29,231      Shareholders' Equity                       91,006            92,484      Total Liabilities and Shareholders'       Equity                                  $143,834          $150,006    CENTURY CASINOS, INC. AND SUBSIDIARIES    SUPPLEMENTAL INFORMATION                              Century Casinos, Inc.                   Net Operating Revenue by Property (Unaudited)                             (Amounts in thousands)                                                  For the Three Months                                                      Ended March 31,                                                  2009              2008    Century Casino & Hotel, Edmonton             $4,796            $5,557    Womacks Casino & Hotel (Cripple Creek)        2,572             2,882    Century Casino & Hotel, Central City          4,163             4,407    Cruise Ships                                    468               683    Corporate                                         -                 1      Consolidated net operating revenue        $11,999           $13,530                               Century Casinos, Inc.                   Adjusted EBITDA Margins** by Property (Unaudited)                                                    For the Three Months                                                       Ended March 31,                                                   2009              2008    Century Casino & Hotel, Edmonton                37%               34%    Womacks Casino & Hotel (Cripple Creek)          19%               10%    Century Casino & Hotel. Central City            26%               19%    Cruise Ships                                    12%               22%    Corporate                                        -                 -    Consolidated Adjusted EBITDA Margin**           17%               14%    CENTURY CASINOS, INC. AND SUBSIDIARIES    SUPPLEMENTAL INFORMATION                                Century Casinos, Inc.                Reconciliation of Adjusted EBITDA*  to Earnings from                     Continuing Operations by Property (Unaudited)                       For the Three Months Ended March 31, 2009                              (Amounts in thousands)                                  Cripple  Central  Cruise                        Edmonton   Creek    City     Ships  Corporate  Total    Earnings from     continuing     operations           $881      $21    $(131)     $-   $(2,244) $(1,473)    Minority interest        -        -        -       -        14       14    Interest income         (2)       -       (1)      -        (6)      (9)    Interest expense       249       64      537       -        50      900    Income taxes           349       13      (93)      -       (50)     219    Depreciation           299      396      751      58        68    1,572    Stock compensation       -        -        -       -       349      349    Foreign currency     (gains) losses         (1)       -        -       -       526      525    Impairments and     other write-offs        -        -        -       -         2        2    Loss on disposition     of fixed assets         -        -        -       -         -        -    Adjusted EBITDA*    $1,775     $494   $1,063     $58   $(1,291)  $2,099                                Century Casinos, Inc.                  Reconciliation of Adjusted EBITDA*  to Earnings from                      Continuing Operations by Property (Unaudited)                        For the Three Months Ended March 31, 2008                                (Amounts in thousands)                                  Cripple  Central  Cruise                        Edmonton   Creek    City     Ships  Corporate  Total    Earnings from     continuing     operations           $847     $(65)   $(377)   $86    $(1,059)   $(568)    Minority interest        -        -        -      -         45       45    Interest income        (10)       -        -      -         (2)     (12)    Interest expense       360      (28)     701      -        200    1,233    Income taxes           376      (41)    (243)    (2)      (735)    (645)    Depreciation           355      423      754     64         73    1,669    Stock compensation       -        -        -      -        348      348    Foreign currency     (gains) losses        (16)       -        -      -       (103)    (119)    Impairments and     other write-offs        -        -        -      -          -        -    Loss on disposition     of fixed assets         -      (10)       -      2          4       (4)    Adjusted EBITDA*    $1,912     $279     $835   $150    $(1,229)  $1,947    CENTURY CASINOS, INC. AND SUBSIDIARIES    SUPPLEMENTAL INFORMATION                                Century Resorts Alberta             Reconciliation of Adjusted EBITDA*  to Net Earnings (Unaudited)                                 in Canadian Dollars                               (Amounts in thousands)                                          For the three      For the three                                          months ended       months ended                                         March 31, 2009     March 31, 2008    Net earnings                             CAD  1,095          CAD  822    Interest income                                 (2)              (10)    Interest expense                                310               361    Income taxes                                    432               390    Depreciation                                    373               357    Foreign currency (gain)                           -               (3)    Adjusted EBITDA*                         CAD  2,208         CAD 1,917    * The Company defines Adjusted EBITDA as earnings from continuing      operations before interest, income taxes, depreciation, amortization,      minority interest, pre-opening expenses, non-cash stock based      compensation charges, asset impairment costs, gains (losses) on      disposition of fixed assets, discontinued operations, realized foreign      currency gains (losses) and certain other one-time items. Intercompany      transactions consisting primarily of management fees and interest,      along with their related tax effects, are excluded from the      presentation of net earnings and Adjusted EBITDA reported for each      property.  These adjustments have no effect on the consolidated results.      Adjusted EBITDA is not considered a measure of performance      recognized under accounting principles generally accepted in the      United States of America. Management believes that Adjusted EBITDA      is a valuable measure of the relative performance among its operating      segments. The gaming industry commonly uses Adjusted EBITDA as a method      of arriving at the economic value of a casino operation. Management uses      Adjusted EBITDA to compare the relative operating performance of      separate operating units by eliminating the above mentioned items      associated with the varying levels of capital expenditures for      infrastructure required to generate revenue, and the often high cost      of acquiring existing operations. EBITDA (Earnings before interest,      taxes, depreciation and amortization) is used by our lending      institutions to gauge operating performance. The Company's computation      of Adjusted EBITDA may be different from, and therefore may not be      comparable to, similar measures used by other companies. Please see the      reconciliation of Adjusted EBITDA to earnings from continuing operations      on the prior pages. Not all of the aforementioned benefits and costs      occur in each reporting period, but have been included in the definition      based on historic activity.    ** The Company defines Adjusted EBITDA margin as Adjusted EBITDA divided       by net operating revenue. Management uses this margin as one of several       measures to evaluate the efficiency of the Company's casino operations.

CENTURY CASINOS, INC. AND SUBSIDIARIES

SUPPLEMENTAL INFORMATION

About Century Casinos, Inc:

Century Casinos, Inc. is an international casino entertainment company that owns and operates the Womacks Casino and Hotel in Cripple Creek, Colorado, the Century Casino & Hotel in Central City, Colorado, and the Century Casino & Hotel in Edmonton, Alberta, Canada. The Company also operates casinos aboard the Silver Cloud and the vessels of Oceania Cruises and has an agreement to operate the casinos on all vessels (estimated to be three) put into service by TUI Cruises before December 31, 2012. Through its subsidiary Century Casinos Africa (Pty) Limited, it owns and operates The Caledon Hotel, Spa & Casino near Cape Town, South Africa, as well as 60% of, and provides technical casino services to, Century Casino Newcastle, in Newcastle, South Africa. Furthermore, the Company's Austrian subsidiary, Century Casinos Europe GmbH, holds a 33.3% ownership interest in Casinos Poland Ltd, the owner and operator of seven full casinos and one slot casino in Poland. The Company continues to pursue other international projects in various stages of development.

For more information about Century Casinos, visit our website at www.centurycasinos.com. Century Casinos' common stock trades on The NASDAQ Capital Market(R) and the Vienna Stock Exchange under the symbol CNTY.

This release may contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on the beliefs and assumptions of the management of Century Casinos based on information currently available to management. Such forward-looking statements include, but are not limited to, statements regarding the proceeds from and the closing of our sale of Century Casinos Africa, progress at and plans for our casinos and the impact of economic downturn. Such forward-looking statements are subject to risks, uncertainties and other factors that could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. Important factors that could cause actual results to differ materially from the forward-looking statements include, among others, the risks described in the sections entitled "Risk Factors" under Item 1A in our Annual Report on Form 10-K filed on March 16, 2009. Century Casinos disclaims any obligation to revise or update any forward-looking statement that may be made from time to time by it or on its behalf.

SOURCE Century Casinos, Inc.

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