Segment Information

3 Months Ended

Mar. 31, 2021

Segment Information [Abstract]

Segment Information

13.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 or other operation 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, which the Company deconsolidated in May 2020, 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 Downs Racetrack and Casino
		Century Sports
		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, cost recovery income 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.

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

	For the three months ended March 31, 2021
Amounts in thousands			United States		Canada		Poland		Corporate and Other		Total
Net operating revenue (1)		$	64,371	$	2,011	$	5,910	$	123	$	72,415
Earnings (loss) before income taxes		$	10,594	$	(3,489)	$	(3,357)	$	(5,552)	$	(1,804)
Net earnings (loss) attributable to Century Casinos, Inc. shareholders		$	10,594	$	(3,512)	$	(1,835)	$	(6,666)	$	(1,419)
Interest expense (income), net (2)			6,935		307		4		3,276		10,522
Income taxes (benefit)			—		(409)		(606)		1,114		99
Depreciation and amortization			4,525		1,222		793		103		6,643
Net earnings (loss) attributable to non-controlling interests			—		432		(916)		—		(484)
Non-cash stock-based compensation			—		—		—		259		259
Gain on foreign currency transactions, cost recovery income and other			—		(557)		(7)		(417)		(981)
Loss on disposition of fixed assets			73		32		—		—		105
Adjusted EBITDA		$	22,127	$	(2,485)	$	(2,567)	$	(2,331)	$	14,744

(1)Net operating revenue for Corporate and Other primarily related to the Company’s consulting agreements.

(2)Expense of $6.9 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 $0.3 million, respectively, for the period presented.

‎

	For the three months ended March 31, 2020
Amounts in thousands			United States		Canada		Poland		Corporate and Other		Total
Net operating revenue (1)		$	53,427	$	16,187	$	17,062	$	980	$	87,656
(Loss) earnings before income taxes		$	(32,372)	$	(2,157)	$	91	$	(8,699)	$	(43,137)
Net (loss) earnings attributable to Century Casinos, Inc. shareholders		$	(34,219)	$	(4,408)	$	31	$	(7,260)	$	(45,856)
Interest expense (income), net (2)			7,281		543		31		3,511		11,366
Income taxes (benefit)			1,847		2,071		45		(1,439)		2,524
Depreciation and amortization			4,259		1,337		763		136		6,495
Net earnings attributable to non-controlling interests			—		180		15		—		195
Non-cash stock-based compensation			—		—		—		(14)		(14)
(Gain) loss on foreign currency transactions and cost recovery income			—		(64)		172		645		753
Impairment - intangible and tangible assets (3)			29,589		3,375		—		1,000		33,964
Loss on disposition of fixed assets			—		—		2		2		4
Acquisition costs			—		—		—		213		213
Adjusted EBITDA		$	8,757	$	3,034	$	1,059	$	(3,206)	$	9,644

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

(2)Expense of $7.3 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 $0.5 million, respectively, for the period presented.

(3)Expense of $29.6 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 4). Expense of $1.0 million is included in the Corporate and Other segment related to the impairment of the MCE investment (see Note 3).