Segment Information

6 Months Ended

Jun. 30, 2020

Segment Information [Abstract]

Segment Information

14.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. The Company views each market in which it operates as a separate operating segment and each casino within those markets as a reporting unit. Operating segments are aggregated within reportable segments based on their similar economic 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 reporting units and operating segments into reportable segments:

Reportable Segment	Operating Segment	Reporting Unit
United States	Colorado	Century Casino & Hotel - Central City
		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
		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	Cruise Ships & Other
		Corporate Other

The Company’s chief operating decision maker is a management function comprised of two individuals.  These two individuals are the Company’s 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 and other, gain on business combination and certain other one-time transactions. Expense related to the Master Lease is included in the interest expense (income), net line item. 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.

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

	For the three months ended June 30, 2020
Amounts in thousands		United States		Canada		Poland		Corporate and Other		Total
Net operating revenue (1)		$	23,832	$	4,719	$	7,390	$	162	$	36,103
(Loss) earnings before income taxes		$	(10,271)	$	(1,791)	$	(2,162)	$	1,609	$	(12,615)
Net (loss) earnings attributable to Century Casinos, Inc. shareholders		$	(10,271)	$	(1,781)	$	(1,246)	$	691	$	(12,607)
Interest expense (income), net (2)			6,954		435		(14)		3,204		10,579
Income (benefit) taxes			—		(44)		(292)		918		582
Depreciation and amortization			4,246		1,289		735		135		6,405
Net earnings (loss) attributable to non-controlling interests			—		34		(624)		—		(590)
Non-cash stock-based compensation			—		—		—		249		249
Loss (gain) on foreign currency transactions, cost recovery income and other			1,157		135		(25)		(7,631)		(6,364)
(Gain) on disposition of fixed assets			—		(69)		—		—		(69)
Acquisition costs			—		—		—		53		53
Adjusted EBITDA		$	2,086	$	(1)	$	(1,466)	$	(2,381)	$	(1,762)

(1)Net operating revenue for Corporate and Other primarily relates to the Company’s cruise ship operations and consulting agreements.

(2)Expense of $7.0 million related to the Master Lease is included in interest expense (income), net in the United States segment. Expense of $0.4 million related to the CDR land lease is included in interest expense (income), net in the Canada segment. Cash payments related to the Master Lease and CDR land lease were $4.2 million and $0.4 million, respectively, for the period presented.

	For the three months ended June 30, 2019
Amounts in thousands		United States		Canada		Poland		Corporate and Other		Total
Net operating revenue (1)		$	8,809	$	21,988	$	20,107	$	1,541	$	52,445
Earnings (loss) before income taxes		$	1,642	$	3,995	$	1,054	$	(4,963)	$	1,728
Net earnings (loss) attributable to Century Casinos, Inc. shareholders		$	1,236	$	2,536	$	425	$	(4,762)	$	(565)
Interest expense (income), net (2)			—		1,320		45		28		1,393
Income taxes (benefit)			406		778		416		(230)		1,370
Depreciation and amortization			527		1,059		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 and cost recovery income			—		(432)		(78)		5		(505)
Loss on disposition of fixed assets			1		2		248		272		523
Acquisition costs			—		—		—		768		768
Adjusted EBITDA		$	2,170	$	5,944	$	1,985	$	(3,390)	$	6,709

(1)Net operating revenue for Corporate and Other primarily relates to CCB, the Company’s cruise ship operations and consulting agreements.

(2)Expense of $0.6 million related to the CDR land lease is included in interest expense (income), net in the Canada segment. Cash payments related to the CDR land lease were $0.5 million for the period presented.

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	For the six months ended June 30, 2020
Amounts in thousands		United States		Canada		Poland		Corporate and Other		Total
Net operating revenue (1)		$	77,262	$	20,902	$	24,453	$	1,143	$	123,760
Loss before income taxes		$	(42,636)	$	(3,960)	$	(2,074)	$	(7,082)	$	(55,752)
Net loss attributable to Century Casinos, Inc. shareholders		$	(43,659)	$	(5,987)	$	(1,218)	$	(7,599)	$	(58,463)
Interest expense (income), net (2)			14,235		979		17		6,713		21,944
Income taxes (benefit)			1,023		1,813		(247)		517		3,106
Depreciation and amortization			8,505		2,628		1,501		265		12,899
Net earnings (loss) attributable to non-controlling interests			—		214		(609)		—		(395)
Non-cash stock-based compensation			—		—		—		236		236
Loss (gain) on foreign currency transactions, cost recovery income and other			30,746		3,447		147		(6,046)		28,294
(Gain) loss on disposition of fixed assets			—		(69)		2		2		(65)
Acquisition costs			—		—		—		266		266
Adjusted EBITDA		$	10,850	$	3,025	$	(407)	$	(5,646)	$	7,822

(1)Net operating revenue for Corporate and Other primarily relates to CCB, the Company’s cruise ship operations and consulting agreements.

(2)Expense of $14.2 million related to the Master Lease is included in interest expense (income), net in the United States segment. Expense of $0.9 million related to the CDR land lease is included in interest expense (income), net in the Canada segment. Cash payments related to the Master Lease and CDR land lease were $10.4 million and $0.9 million, respectively, for the period presented.

	For the six months ended June 30, 2019
Amounts in thousands		United States		Canada		Poland		Corporate and Other			Total
Net operating revenue (1)		$	16,874	$	38,289	$	39,859	$	3,035	$	98,057
Earnings (loss) before income taxes		$	2,979	$	6,548	$	2,884	$	(8,244)	$	4,167
Net earnings (loss) attributable to Century Casinos, Inc. shareholders		$	2,215	$	4,085	$	1,339	$	(7,136)	$	503
Interest expense (income), net (2)			—		2,511		91		45		2,647
Income taxes (benefit)			764		1,542		876		(1,096)		2,086
Depreciation and amortization			1,086		1,856		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)
Loss (gain) on disposition of fixed assets			17		(3)		253		300		567
Acquisition costs			—		—		—		768		768
Pre-opening expenses			—		538		—		—		538
Adjusted EBITDA		$	4,082	$	10,974	$	4,435	$	(6,079)	$	13,412

(1)Net operating revenue for Corporate and Other primarily relates to CCB, the Company’s cruise ship operations and consulting agreements.

(2)Expense of $1.1 million related to the CDR land lease is included in interest expense (income), net in the Canada segment. Cash payments related to the CDR land lease were $1.0 million for the period presented.

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