Century Casinos sees revenue up 25%, earnings plummet 55% in "challenging" first quarter

Century Casinos has released its financial results for the first quarter of 2024, announcing a mixture of performance metrics amidst operational challenges. For Q1, Century Casinos reported net operating revenues of $136.0 million, marking a 25% increase from the same period in 2023. 

However, earnings from operations witnessed a drop of 55%, amounting to $8.3 million. The net loss attributable to Century Casinos shareholders widened to ($13.5) million, representing a 990% change from the previous year. Adjusted EBITDAR also saw a decrease compared to the same period last year, down 18% to $21.3 million.

Erwin Haitzmann and Peter Hoetzinger, Co-Chief Executive Officers of Century Casinos, said they anticipated a challenging first quarter due to continuing construction disruptions and the closure of three of the company's casinos in Poland for some or all of the quarter. The period was further impacted by disruptions from severe weather at the majority of Century Casinos' US properties. 

"Cash payments of $12.2 million for taxes related to the September 2023 sale and leaseback of our Canada properties and a $3.4 million one-time principal paydown of debt as well as $18.4 million in property and equipment purchases decreased our overall cash balance,” Haitzmann and Hoetzinger also highlighted. 

Despite the challenges, the Co-CEOs said the company's positive outlook for the second half of 2024 into 2025 "remains unchanged." Century Casinos' increased spend on capital projects throughout its properties is expected to end over the summer and the firm's largest capital project (fully funded by VICI Properties), a land-based casino in Caruthersville, Missouri, is also expected to be completed by the end of the year.

“By 2025, all of our operations should be in great shape with no more construction disruptions and all casinos in Poland fully operational. We are also excited about the performance of The Riverview, our new hotel at Century Casino Cape Girardeau, Missouri, which has exceeded our expectations so far,” Haitzmann and Hoetzinger concluded.

Century Casinos provided updates on specific projects, including The Riverview Hotel in Cape Girardeau, Missouri, which opened in April 2024. The Riverview, a six-story building adjacent to Century Casino Cape Girardeau, represented a $30.5 million investment financed with cash on hand. 

Construction of a new land-based casino with a 38-room hotel in Caruthersville, Missouri, remains on track, with an estimated project cost of $51.9 million and completion expected in the fourth quarter of 2024. The company is funding this project through VICI Properties, which will own the real estate improvements associated with the Caruthersville project upon completion.

In Poland, the company reopened its casinos in Bielsko-Biala and Katowice following temporary closures due to licensing delays. Renovations on a new casino location in Wroclaw are ongoing, with an expected opening in the third quarter of 2024.

As of March 31, 2024, Century Casinos had $136.5 million in cash and cash equivalents, compared to $171.3 million at the end of 2023. Outstanding debt totaled $342.0 million, including obligations under the Goldman Credit Agreement and the Master Lease.