Century Casinos Inc (CNTY) Q3 2020 Earnings Call Transcript

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NASDAQ: CNTY

Century Casinos

Market value Change of today Stamp on the arrow Today's price August 23, 2024 16:00 ett Current price

CNTY Challenge for profits for September 30, 2020.

Image source: The Motley Fool.

Century Casinos Inc (CNTY 6, 61%) Q3 2020 Profit Call November 6, 2020 10:00 et

Contents:

• Preparatory remarks
• Question and answer session
• Caller

Prepared Remarks:

operator

Century Casino-Welcome to the conference on the third quarter of 2020. [Today's moderator, Peter Hitzinger. I would like to ask from Hotsinger.

Peter Hozinger-Vice Chairman of the Board of Directors, co-manager and president

Good morning, everyone. Thank you for participating in the financial review. Elvin Hyzmann, chairman of Century Casino, and Margaret Stepron, the highest finance manager. As usual, we will talk about many risks and uncertainty forecast information before we start talking, and as a result, we understand that the actual result may be very different from the prediction presentation. I want. We do not guarantee that new information, future events, or any other reasons will be updated or modified. We will read these documents in detail in the documents submitted to the Securities and Exchange Commission in detail various risk factors.

Furthermore, the telephone conference mentioned some no n-GAAP financial indicators, including EBITDA after adjustment, but not limited to this. Regarding adjustments with no n-GAAP performance indicators and relevant GAAP indicators, it is stated in a statement in the US Securities and Exchange Commission published in our press releases and CNTY. com website investors. Masu. < SPAN> This free article contains different opinions from Motley Fool's premium investment service. Join Motley Fool now and access recommended brands by top analysts, dead research, investment resources, etc. More details

Market value

Change of today

Stamp on the arrow

Today's price

August 23, 2024 16:00 ett Current price

CNTY Challenge for profits for September 30, 2020.

Image source: The Motley Fool.

Century Casinos Inc (CNTY 6, 61%) Q3 2020 Profit Call November 6, 2020 10:00 et

{space}

Preparatory remarks

{space}

Question and answer session

{space}

Caller

Questions and Answers:

operator

Century Casino-Welcome to the conference on the third quarter of 2020. [Today's moderator, Peter Hitzinger. I would like to ask from Hotsinger.

Peter Hozinger-Vice Chairman of the Board of Directors, co-manager and president

Good morning, everyone. Thank you for participating in the financial review. Elvin Hyzmann, chairman of Century Casino, and Margaret Stepron, the highest finance manager. As usual, we will talk about many risks and uncertainty forecast information before we start talking, and as a result, we understand that the actual result may be very different from the prediction presentation. I want. We do not guarantee that new information, future events, or any other reasons will be updated or modified. We will read these documents in detail in the documents submitted to the Securities and Exchange Commission in detail various risk factors.

Peter Hozinger-Vice Chairman of the Board of Directors, co-manager and president

Market value

Peter Hozinger-Vice Chairman of the Board of Directors, co-manager and president

Stamp on the arrow

Peter Hozinger-Vice Chairman of the Board of Directors, co-manager and president

August 23, 2024 16:00 ett Current price

CNTY Challenge for profits for September 30, 2020.

Image source: The Motley Fool.

Peter Hozinger-Vice Chairman of the Board of Directors, co-manager and president

CNTY Challenge for profits for September 30, 2020.

Preparatory remarks

Peter Hozinger-Vice Chairman of the Board of Directors, co-manager and president

Question and answer session

CNTY Challenge for profits for September 30, 2020.

Caller

Peter Hozinger-Vice Chairman of the Board of Directors, co-manager and president

Century Casino-Welcome to the conference on the third quarter of 2020. [Today's moderator, Peter Hitzinger. I would like to ask from Hotsinger.

Peter Hozinger-Vice Chairman of the Board of Directors, co-manager and president

CNTY Challenge for profits for September 30, 2020.

operator

I am currently publishing an educational program for the third quarter financial results, and there is a doubt. Without Corona's epidemic, there would have been any more inspiration. Despite the severe situations, the third quarter was able to achieve record business results. Pure operating income in the United States was $ 95. 7 million, an increase of 81 % yea r-o n-year. After adjustment, EBITDA was $ 22. 2 million, more than three times the same period of the previous year. This surprising result is clearly reflecting the success of the three casinos acquired at the end of last year, and the fact that our district team has made a big progress since all facilities were resumed within 5 months. I am.

The strong trends seen in June and July have continued throughout the third quarter: a rising unit price per visiting, longer staying, and the r e-store rate of top customers. The capacity of the casino floor was limited and the amenities for guests were limited, so the overall popularity of this resort declined compared to the same period of the previous year, but it is operated without damaging this resort's excellent customer service. The combination of promotion has been skillfully adjusted. With the careful selection of amenities, the strict management of the marketing environment, and the concentration of hig h-profit business fields, costs have been reduced and more efficient has resulted in significantly improving operating margins. In real time, we believe that such a good trend is maintained, but there is not enough information about the impact of Corona's trends on our market in the future. Last but not least, we see that the elderly are continuing to increase. Elderly people are often grateful for returning to our casinos and feel more comfortable. We are still waiting for new young buyers to become regulars.

The third quarter was the first quarter of the first quarter, including the achievements of the three properties acquired from Eldorado last December. When we came to this conclusion, we said this was a true change for our business, but now we can prove it in a precedent that cannot be denied. Net income is almost twice, eBitDa is more than tripled, 79 % of the total EBITDA is from the United States, 17 % from Canada, and 4 % of Europe, which is clearly a U S-oriented company.

Peter Hozinger-Vice Chairman of the Board of Directors, co-manager and president

This term, we announced the third sports betting partnership with Tipico. All of these three partnerships, with a small guarantee each year, paying the rescue percentage to us. This is made directly to the account because it is made without our investment or cost. One of them, Circus Sport website has already been launched. Two more will be up next year.

CNTY Challenge for profits for September 30, 2020.

This term, we announced the third sports betting partnership with Tipico. All of these three partnerships, with a small guarantee each year, paying the rescue percentage to us. This is made directly to the account because it is made without our investment or cost. One of them, Circus Sports website has already been launched. Two more will be up next year.

The strong trends seen in June and July have continued throughout the third quarter: a rising unit price per visiting, longer staying, and the r e-store rate of top customers. The capacity of the casino floor was limited and the amenities for guests were limited, so the overall popularity of this resort declined compared to the same period of the previous year, but it is operated without damaging this resort's excellent customer service. The combination of promotion has been skillfully adjusted. With the careful selection of amenities, the strict management of the marketing environment, and the concentration of hig h-profit business fields, costs have been reduced and more efficient has resulted in significantly improving operating margins. In real time, we believe that such a good trend is maintained, but there is not enough information about the impact of Corona's trends on our market in the future. Last but not least, we see that the elderly are continuing to increase. Elderly people are often grateful for returning to our casinos and feel more comfortable. We are still waiting for new young buyers to become regulars.

This term, we announced the third sports betting partnership with Tipico. All of these three partnerships, with a small guarantee each year, paying the rescue percentage to us. This is made directly to the account because it is made without our investment or cost. One of them, Circus Sport website has already been launched. Two more will be up next year.

Peter Hozinger-Vice Chairman of the Board of Directors, co-manager and president

CNTY Challenge for profits for September 30, 2020.

The next space is West-Virginia, which opened Mountaineer Casino's Casino, Racetrack & amp; amp; Amp; Resort in early June. In real time, 86% of the slot machines are visible in the background of the game and within 39% of the board game positions. Some power points and drinks were reopened with restrictions for a few hours of work. Meeting rooms remained closed and the hotel opened with limited toll-free calls. EBITDA indicators fell by 11%. Q3 got off to a rather sluggish start in July and early August, which was largely due to the smoking ban at that time and the slot machines being at least 50% occupied. Since mid-August, we have resumed smoking and have been able to increase the number of slot machines to its current value.

The strong trends seen in June and July have continued throughout the third quarter: a rising unit price per visiting, longer staying, and the r e-store rate of top customers. The capacity of the casino floor was limited and the amenities for guests were limited, so the overall popularity of this resort declined compared to the same period of the previous year, but it is operated without damaging this resort's excellent customer service. The combination of promotion has been skillfully adjusted. With the careful selection of amenities, the strict management of the marketing environment, and the concentration of hig h-profit business fields, costs have been reduced and more efficient has resulted in significantly improving operating margins. In real time, we believe that such a good trend is maintained, but there is not enough information about the impact of Corona's trends on our market in the future. Last but not least, we see that the elderly are continuing to increase. Elderly people are often grateful for returning to our casinos and feel more comfortable. We are still waiting for new young buyers to become regulars.

Let's take a look at the business in Canada, Edmonton and Calgary. Currently, about 60 % of the slot machines are operating on the gaming site. Operating hours are limited. In Hipodrome, the admission of ordinary customers is limited, and the hotels and exhibition halls in Edmonton remain closed. Board games are traditionally important in our business because there are many Asian residents. It was on September 7 that the resumption of business was allowed on September 7, so it could not make a major contribution in the quarter. Nevertheless, EBITDA fell 10 % in Edmonton and 5 % in Calgary. The two Lexino, Century Miles in Edmonton and Calgary Century Download, achieved higher indicators. As already mentioned, EBITDA is 17 % when connected to Canada segments.

Peter Hozinger-Vice Chairman of the Board of Directors, co-manager and president

Finally, a word about the liquidity of the balance sheet and the future outlook. As of September 30, cash and cash on the balance sheet are $ 62 million and the debt balance is $ 184 million. The borrowed balance includes $ 168 million related to Macquerley's credit contract, $ 10 million in Europe, and $ 15 million related to lon g-term land leasing in Canada Is deducted. < Span> Currently, the operating rate of Mountainer Hotels is 88 % from Sunday to Thursday, 98 % for Friday and Saturday, and will open a hotel building of 100 units soon. In addition, 30 slot machines have just been set up in areas that are popular with smokers. Also, if the layers over the age of 55 are more comfortable and come to a large number of them, we can make a great profit.

Let's take a look at the business in Canada, Edmonton and Calgary. Currently, about 60 % of the slot machines are operating on the gaming site. Operating hours are limited. In Hipodrome, the admission of ordinary customers is limited, and the hotels and exhibition halls in Edmonton remain closed. Board games are traditionally important in our business because there are many Asian residents. It was on September 7 that the resumption of business was allowed on September 7, so it could not make a major contribution in the quarter. Nevertheless, EBITDA fell 10 % in Edmonton and 5 % in Calgary. The two Lexino, Century Miles in Edmonton and Calgary Century Download, achieved higher indicators. As already mentioned, EBITDA is 17 % when connected to Canada segments.

While Poland's casinos were performing well with casinos in a small town that attracted the most local residents, the two large casinos in the capital of Warsaw were low due to the absence of tourists and business travelers. Nevertheless, the cash flow brought by this business is positive, only less than 5 % of the total EBITDA.

The strong trends seen in June and July have continued throughout the third quarter: a rising unit price per visiting, longer staying, and the r e-store rate of top customers. The capacity of the casino floor was limited and the amenities for guests were limited, so the overall popularity of this resort declined compared to the same period of the previous year, but it is operated without damaging this resort's excellent customer service. The combination of promotion has been skillfully adjusted. With the careful selection of amenities, the strict management of the marketing environment, and the concentration of hig h-profit business fields, costs have been reduced and more efficient has resulted in significantly improving operating margins. In real time, we believe that such a good trend is maintained, but there is not enough information about the impact of Corona's trends on our market in the future. Last but not least, we see that the elderly are continuing to increase. Elderly people are often grateful for returning to our casinos and feel more comfortable. We are still waiting for new young buyers to become regulars.

Let's take a look at the business in Canada, Edmonton and Calgary. Currently, about 60 % of the slot machines are operating on the gaming site. Operating hours are limited. In Hipodrome, the admission of ordinary customers is limited, and the hotels and exhibition halls in Edmonton remain closed. Board games are traditionally important in our business because there are many Asian residents. It was on September 7 that the resumption of business was allowed on September 7, so it could not make a major contribution in the quarter. Nevertheless, EBITDA fell 10 % in Edmonton and 5 % in Calgary. The two Lexino, Century Miles in Edmonton and Calgary Century Download, achieved higher indicators. As already mentioned, EBITDA is 17 % when connected to Canada segments.

Peter Hozinger-Vice Chairman of the Board of Directors, co-manager and president

operator

In the short to medium term, we do not expect any major investments. All our facilities are in good condition, and for the time being, we have temporarily suspended any major investment plans that are not necessary. In fact, we expect to return to a more conventional major investment plan next fiscal year, which will reinvest 3-4% of our net savings in our facilities. Since resuming operations, we have made a decent start, but we are certainly maintaining discipline across our business, avoiding unnecessary costs, productivity and inefficiencies. Even after the economic downturn subsides, we intend to focus on more efficient and profitable business operations. Overall, our business has remained extremely stable. We will continue to successfully pursue our strategy of focusing on premium buyers in our neighborhood.

Looking at the provisional financial results for October, we see a continuation of the less-than-stellar operating trends seen in the third quarter. EBITDA for each month is roughly at the level of July, August and September. However, as I said at the beginning, there is not enough information on the future impact of the epidemic. On behalf of our management team and Board of Directors, I would like to thank our team members, our customers and our shareholders for their continued dedication and passionate support as we navigate our business through these challenging times. Thank you for your attention. Now, we will begin the Q& A session. Operator, please continue.

Operator

Peter Hozinger-Vice Chairman of the Board of Directors, co-manager and president

David Bain - Roth Capital - Analyst

CNTY Challenge for profits for September 30, 2020.

Peter Hetzinger - Vice Chairman of the Board, CEO and President

Looking at the provisional financial results for October, we see a continuation of the less-than-stellar operating trends seen in the third quarter. EBITDA for each month is roughly at the level of July, August and September. However, as I said at the beginning, there is not enough information on the future impact of the epidemic. On behalf of our management team and Board of Directors, I would like to thank our team members, our customers and our shareholders for their continued dedication and passionate support as we navigate our business through these challenging times. Thank you for your attention. Now, we will begin the Q& A session. Operator, please continue.

David Bain e-Roth Capita l-Analyst

CNTY Challenge for profits for September 30, 2020.

Peter Hetzinge r-Vice President and CEO and President of the Board of Directors

Looking at the provisional financial results for October, we see a continuation of the less-than-stellar operating trends seen in the third quarter. EBITDA for each month is roughly at the level of July, August and September. However, as I said at the beginning, there is not enough information on the future impact of the epidemic. On behalf of our management team and Board of Directors, I would like to thank our team members, our customers and our shareholders for their continued dedication and passionate support as we navigate our business through these challenging times. Thank you for your attention. Now, we will begin the Q& A session. Operator, please continue.

Elvin Haitsma n-Chairman and CEO

Peter Hozinger-Vice Chairman of the Board of Directors, co-manager and president

David Bain e-Loth Capita l-Analyst

CNTY Challenge for profits for September 30, 2020.

Looking at the provisional financial results for October, we see a continuation of the less-than-stellar operating trends seen in the third quarter. EBITDA for each month is roughly at the level of July, August and September. However, as I said at the beginning, there is not enough information on the future impact of the epidemic. On behalf of our management team and Board of Directors, I would like to thank our team members, our customers and our shareholders for their continued dedication and passionate support as we navigate our business through these challenging times. Thank you for your attention. Now, we will begin the Q& A session. Operator, please continue.

David Bain e-Loth Capita l-Analyst

CNTY Challenge for profits for September 30, 2020.

Elvin Haitsma n-Chairman, CEO

Looking at the provisional financial results for October, we see a continuation of the less-than-stellar operating trends seen in the third quarter. EBITDA for each month is roughly at the level of July, August and September. However, as I said at the beginning, there is not enough information on the future impact of the epidemic. On behalf of our management team and Board of Directors, I would like to thank our team members, our customers and our shareholders for their continued dedication and passionate support as we navigate our business through these challenging times. Thank you for your attention. Now, we will begin the Q& A session. Operator, please continue.

David Bain e-Loth Capita l-Analyst

Peter Hozinger-Vice Chairman of the Board of Directors, co-manager and president

CNTY Challenge for profits for September 30, 2020.

operator

operator

Peter Hozinger-Vice Chairman of the Board of Directors, co-manager and president

Chad Bayno n-Maccolli e-Analyst

operator

Peter Horts Ince r-Vice President and CEO and President of the Board of Directors

Elvin, do you want to start?

Call participants:

Peter Hozinger-Vice Chairman of the Board of Directors, co-manager and president

CNTY Challenge for profits for September 30, 2020.

Let's take a look at the business in Canada, Edmonton and Calgary. Currently, about 60 % of the slot machines are operating on the gaming site. Operating hours are limited. In Hipodrome, the admission of ordinary customers is limited, and the hotels and exhibition halls in Edmonton remain closed. Board games are traditionally important in our business because there are many Asian residents. It was on September 7 that the resumption of business was allowed on September 7, so it could not make a major contribution in the quarter. Nevertheless, EBITDA fell 10 % in Edmonton and 5 % in Calgary. The two Lexino, Century Miles in Edmonton and Calgary Century Download, achieved higher indicators. As already mentioned, EBITDA is 17 % when connected to Canada segments.

Peter Hozinger-Vice Chairman of the Board of Directors, co-manager and president

The strong trends seen in June and July have continued throughout the third quarter: a rising unit price per visiting, longer staying, and the r e-store rate of top customers. The capacity of the casino floor was limited and the amenities for guests were limited, so the overall popularity of this resort declined compared to the same period of the previous year, but it is operated without damaging this resort's excellent customer service. The combination of promotion has been skillfully adjusted. With the careful selection of amenities, the strict management of the marketing environment, and the concentration of hig h-profit business fields, costs have been reduced and more efficient has resulted in significantly improving operating margins. In real time, we believe that such a good trend is maintained, but there is not enough information about the impact of Corona's trends on our market in the future. Last but not least, we see that the elderly are continuing to increase. Elderly people are often grateful for returning to our casinos and feel more comfortable. We are still waiting for new young buyers to become regulars.

Looking at the provisional financial results for October, we see a continuation of the less-than-stellar operating trends seen in the third quarter. EBITDA for each month is roughly at the level of July, August and September. However, as I said at the beginning, there is not enough information on the future impact of the epidemic. On behalf of our management team and Board of Directors, I would like to thank our team members, our customers and our shareholders for their continued dedication and passionate support as we navigate our business through these challenging times. Thank you for your attention. Now, we will begin the Q& A session. Operator, please continue.

got it. It was a wonderful quarter. thank you.

Peter Hetsinge r-Deputy Chairman of Directors, Major Executive Officer and President