12.SEGMENT INFORMATION

The Company reports its financial performance in three reportable segments based on the geographical locations in which its casinos operate: the United States, Canada and Poland. Operating segments are aggregated within reportable segments based on their similar characteristics, types of customers, types of services and products provided, the regulatory environments in which they operate, and their management and reporting structure. The Company’s operations related to Century Casino Bath, its concession, management and consulting agreements; and certain other corporate and management operations have not been identified as separate reportable segments; therefore, these operations are included in Corporate and Other in the following segment disclosures to reconcile to consolidated results. All intercompany transactions are eliminated in consolidation.

The table below provides information about the aggregation of the Company’s operating segments into reportable segments:


Reportable Segment	Operating Segment
Canada	Century Casino & Hotel - Edmonton
Canada	Century Casino Calgary
Canada	Century Downs Racetrack and Casino
Canada	Century Bets!
Canada	Century Casino St. Albert
Canada	Century Mile Racetrack and Casino
United States	Century Casino & Hotel – Central City
United States	Century Casino & Hotel – Cripple Creek
Poland	Casinos Poland
Corporate and Other	Cruise Ships & Other
Corporate and Other	Century Casino Bath
Corporate and Other	Corporate Other

The Company’s chief operating decision maker is a management function comprised of two individuals. These two individuals are our Co-Chief Executive Officers. The Company’s chief operating decision makers and management utilize Adjusted EBITDA as the primary profit measure for its reportable segments. Adjusted EBITDA is a non-US GAAP measure defined as net earnings (loss) attributable to Century Casinos, Inc. shareholders before interest expense (income), net, income taxes (benefit), depreciation, amortization, non-controlling interest earnings (losses) and transactions, pre-opening expenses, acquisition costs, non-cash stock-based compensation charges, asset impairment costs, (gain) loss on disposition of fixed assets, discontinued operations, (gain) loss on foreign currency transactions, cost recovery income and other, gain on business combination and certain other one-time items. Intercompany transactions consisting primarily of management and royalty fees and interest, along with their related tax effects, are excluded from the presentation of net earnings (loss) and Adjusted EBITDA reported for each segment. Non-cash stock-based compensation expense is presented under Corporate and Other in the tables below as the expense is not allocated to reportable segments when reviewed by the Company’s chief operating decision makers.

The following tables provide information regarding the Company’s segments:


	For the three months ended June 30, 2019
Amounts in thousands		Canada		United States		Poland		Corporate and Other		Total
Net operating revenue (1)		$	21,988	$	8,809	$	20,107	$	1,541	$	52,445

Earnings (loss) before income taxes		$	3,995	$	1,642	$	1,054	$	(4,963)	$	1,728

Net earnings (loss) attributable to Century Casinos, Inc. shareholders		$	2,536	$	1,236	$	425	$	(4,762)	$	(565)
Interest expense (income), net			1,320		—		45		28		1,393
Income taxes (benefit)			778		406		416		(230)		1,370
Depreciation and amortization			1,059		527		716		141		2,443
Net earnings attributable to non-controlling interests			681		—		213		29		923
Non-cash stock-based compensation			—		—		—		359		359
(Gain) loss on foreign currency transactions, cost recovery income and other			(432)		—		(78)		5		(505)
Loss on disposition of fixed assets			2		1		248		272		523
Acquisition costs			—		—		—		768		768
Adjusted EBITDA		$	5,944	$	2,170	$	1,985	$	(3,390)	$	6,709

(1)

Net operating revenue for Corporate and Other primarily relates to CCB and the Company’s cruise ship operations.


	For the three months ended June 30, 2018
Amounts in thousands		Canada		United States		Poland		Corporate and Other		Total
Net operating revenue (1)		$	15,331	$	8,476	$	14,567	$	1,274	$	39,648

Earnings (loss) before income taxes		$	2,830	$	1,548	$	(1,375)	$	(2,892)	$	111

Net earnings (loss) attributable to Century Casinos, Inc. shareholders		$	1,947	$	1,151	$	(776)	$	(2,005)	$	317
Interest expense (income), net			1,020		—		36		19		1,075
Income taxes (benefit)			684		397		(210)		(857)		14
Depreciation and amortization			798		546		673		153		2,170
Net earnings (loss) attributable to non-controlling interests			199		—		(389)		(30)		(220)
Non-cash stock-based compensation			—		—		—		232		232
Gain on foreign currency transactions and cost recovery income			(65)		—		(12)		(113)		(190)
Loss (gain) on disposition of fixed assets			1		(3)		831		—		829
Pre-opening expenses			408		—		—		26		434
Adjusted EBITDA		$	4,992	$	2,091	$	153	$	(2,575)	$	4,661

(1)

Net operating revenue for Corporate and Other primarily relates to the Company’s cruise ship operations.


	For the six months ended June 30, 2019
Amounts in thousands		Canada		United States		Poland		Corporate and Other		Total
Net operating revenue (1)		$	38,289	$	16,874	$	39,859	$	3,035	$	98,057

Earnings (loss) before income taxes		$	6,548	$	2,979	$	2,884	$	(8,244)	$	4,167

Net earnings (loss) attributable to Century Casinos, Inc. shareholders		$	4,085	$	2,215	$	1,339	$	(7,136)	$	503
Interest expense (income), net			2,511		—		91		45		2,647
Income taxes (benefit)			1,542		764		876		(1,096)		2,086
Depreciation and amortization			1,856		1,086		1,487		439		4,868
Net earnings (loss) attributable to non-controlling interests			921		—		669		(12)		1,578
Non-cash stock-based compensation			—		—		—		620		620
Gain on foreign currency transactions and cost recovery income			(476)		—		(280)		(7)		(763)
(Gain) loss on disposition of fixed assets			(3)		17		253		300		567
Acquisition costs			—		—		—		768		768
Pre-opening expenses			538		—		—		—		538
Adjusted EBITDA		$	10,974	$	4,082	$	4,435	$	(6,079)	$	13,412

(1)

Net operating revenue for Corporate and Other primarily relates to the Company’s cruise ship operations.


	For the six months ended June 30, 2018
Amounts in thousands		Canada		United States		Poland		Corporate and Other			Total
Net operating revenue (1)		$	30,004	$	16,183	$	31,949	$	2,134	$	80,270

Earnings (loss) before income taxes		$	5,519	$	2,724	$	(258)	$	(5,574)	$	2,411

Net earnings (loss) attributable to Century Casinos, Inc. shareholders		$	3,972	$	2,025	$	(246)	$	(4,507)	$	1,244
Interest expense (income), net			1,959		—		110		18		2,087
Income taxes (benefit)			1,219		699		112		(1,037)		993
Depreciation and amortization			1,670		1,086		1,322		245		4,323
Net earnings (loss) attributable to non-controlling interests			328		—		(124)		(30)		174
Non-cash stock-based compensation			—		—		—		347		347
(Gain) loss on foreign currency transactions and cost recovery income			(138)		—		(181)		70		(249)
Loss on disposition of fixed assets			3		1		858		1		863
Pre-opening expenses			689		—		405		350		1,444
Adjusted EBITDA		$	9,702	$	3,811	$	2,256	$	(4,543)	$	11,226

(1)

Net operating revenue for Corporate and Other primarily relates to the Company’s cruise ship operations.