Segment Information

9 Months Ended

Sep. 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 September 30, 2020
Amounts in thousands			United States		Canada		Poland		Corporate and Other		Total
Net operating revenue (1)		$	62,647	$	16,577	$	16,339	$	143	$	95,706
Earnings (loss) before income taxes		$	7,656	$	2,514	$	252	$	(6,038)	$	4,384
Net earnings (loss) attributable to Century Casinos, Inc. shareholders		$	7,656	$	1,880	$	86	$	(5,874)	$	3,748
Interest expense (income), net (2)			7,051		525		6		3,005		10,587
Income taxes (benefit)			—		469		123		(164)		428
Depreciation and amortization			4,506		1,345		777		196		6,824
Net earnings attributable to non-controlling interests			—		165		43		—		208
Non-cash stock-based compensation			—		—		—		354		354
Loss (gain) on foreign currency transactions, cost recovery income and other			—		30		(56)		69		43
Loss on disposition of fixed assets			9		11		2		—		22
Adjusted EBITDA		$	19,222	$	4,425	$	981	$	(2,414)	$	22,214

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

(2)Expense of $7.1 million related to the Master Lease is included in interest expense (income), net in the United States segment. Expense of $0.5 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 $6.2 million and $0.4 million, respectively, for the period presented.

	For the three months ended September 30, 2019
Amounts in thousands			United States		Canada		Poland		Corporate and Other		Total
Net operating revenue (1)		$	9,199	$	22,063	$	20,360	$	1,313	$	52,935
Earnings (loss) before income taxes		$	1,813	$	2,169	$	1,679	$	(3,481)	$	2,180
Net earnings (loss) attributable to Century Casinos, Inc. shareholders		$	1,348	$	1,623	$	775	$	(3,264)	$	482
Interest expense (income), net (2)			—		1,346		51		19		1,416
Income taxes (benefit)			465		367		518		(217)		1,133
Depreciation and amortization			488		1,327		797		217		2,829
Net earnings attributable to non-controlling interests			—		179		386		—		565
Non-cash stock-based compensation			—		—		—		358		358
Loss (gain) on foreign currency transactions and cost recovery income			—		12		(139)		11		(116)
Loss on disposition of fixed assets			—		—		85		44		129
Acquisition costs			—		—		—		297		297
Adjusted EBITDA		$	2,301	$	4,854	$	2,473	$	(2,535)	$	7,093

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

(2)Expense of $0.5 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 nine months ended September 30, 2020
Amounts in thousands			United States		Canada		Poland		Corporate and Other		Total
Net operating revenue (1)		$	139,908	$	37,479	$	40,793	$	1,286	$	219,466
Loss before income taxes		$	(34,976)	$	(1,444)	$	(1,822)	$	(13,126)	$	(51,368)
Net loss attributable to Century Casinos, Inc. shareholders		$	(35,999)	$	(4,102)	$	(1,134)	$	(13,480)	$	(54,715)
Interest expense (income), net (2)			21,286		1,504		23		9,719		32,532
Income taxes (benefit)			1,023		2,281		(123)		354		3,535
Depreciation and amortization			13,008		3,973		2,279		463		19,723
Net earnings (loss) attributable to non-controlling interests			—		377		(565)		—		(188)
Non-cash stock-based compensation			—		—		—		589		589
Loss (gain) on foreign currency transactions, cost recovery income and other (3)			30,746		3,476		91		(5,976)		28,337
Loss (gain) on disposition of fixed assets			9		(58)		4		2		(43)
Acquisition costs			—		—		—		266		266
Adjusted EBITDA		$	30,073	$	7,451	$	575	$	(8,063)	$	30,036

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

(2)Expense of $21.3 million related to the Master Lease is included in interest expense (income), net in the United States segment. Expense of $1.5 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 $16.7 million and $1.3 million, respectively, for the period presented.

(3)Expense of $30.7 million and $3.4 million is included in the United States and Canada segments, respectively, related to the impairment of goodwill and intangible assets (see Note 5). Expense of $1.0 million is included in the Corporate and Other segment related to the impairment of the MCE investment (see Note 4).

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	For the nine months ended September 30, 2019
Amounts in thousands			United States		Canada		Poland		Corporate and Other		Total
Net operating revenue (1)		$	26,073	$	60,353	$	60,221	$	4,343	$	150,990
Earnings (loss) before income taxes		$	4,793	$	8,716	$	4,566	$	(11,728)	$	6,347
Net earnings (loss) attributable to Century Casinos, Inc. shareholders		$	3,564	$	5,704	$	2,115	$	(10,398)	$	985
Interest expense (income), net (2)			—		3,856		142		65		4,063
Income taxes (benefit)			1,229		1,913		1,395		(1,318)		3,219
Depreciation and amortization			1,573		3,184		2,284		657		7,698
Net earnings (loss) attributable to non-controlling interests			—		1,099		1,056		(12)		2,143
Non-cash stock-based compensation			—		—		—		979		979
(Gain) loss on foreign currency transactions and cost recovery income			—		(465)		(419)		5		(879)
Loss (gain) on disposition of fixed assets			17		(1)		338		342		696
Acquisition costs			—		—		—		1,064		1,064
Pre-opening expenses			—		538		—		—		538
Adjusted EBITDA		$	6,383	$	15,828	$	6,911	$	(8,616)	$	20,506

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

(2)Expense of $1.7 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 $1.5 million for the period presented.