Segment Information

9 Months Ended

Sep. 30, 2022

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 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 (1)
		Century Bets! Inc. (1)
Poland	Poland	Casinos Poland
Corporate and Other	Corporate and Other	Cruise Ships & Other
		Corporate Other (2)

(1)The Company operated Century Sports through February 10, 2022. The Company operated Century Bets! Inc. through August 2021, when operations were transferred to Century Mile. For more information about Century Sports and Century Bets! Inc., see Note 1.

(2)The Company’s equity investment in Smooth Bourbon is included in the Corporate Other reporting unit.

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 (loss) and transactions, pre-opening expenses, acquisition costs, non-cash stock-based compensation charges, asset impairment costs, loss (gain) 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) attributable to Century Casinos, Inc. shareholders 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. Not all of the aforementioned items occur in each reporting period, but have been included in the definition based on historical activity. These adjustments have no effect on the consolidated results as reported under US GAAP. Adjusted EBITDA is not considered a measure of performance recognized under US GAAP.

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

	For the three months ended September 30, 2022
Amounts in thousands			United States		Canada		Poland		Corporate and Other		Total
Net operating revenue (1)		$	70,718	$	20,065	$	21,733	$	36	$	112,552
Earnings (loss) before income taxes		$	9,139	$	3,395	$	3,513	$	(10,982)	$	5,065
Net earnings (loss) attributable to Century Casinos, Inc. shareholders		$	2,372	$	2,623	$	2,032	$	(4,083)	$	2,944
Interest expense (income), net (2)			7,201		581		(519)		8,087		15,350
Income taxes (benefit)			6,767		522		465		(6,899)		855
Depreciation and amortization			4,892		1,180		623		81		6,776
Net earnings attributable to non-controlling interests			—		250		1,016		—		1,266
Non-cash stock-based compensation			—		—		—		953		953
Gain on foreign currency transactions, cost recovery income and other			—		(71)		(333)		(5)		(409)
Loss on disposition of fixed assets			11		—		27		—		38
Acquisition costs			—		—		—		295		295
Adjusted EBITDA		$	21,243	$	5,085	$	3,311	$	(1,571)	$	28,068

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

(2)Expense of $7.2 million related to the Master Lease is included in interest expense (income), net in the United States segment. 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 Master Lease and CDR land lease were $8.5 million and $0.5 million, respectively, for the period presented.

	For the three months ended September 30, 2021
Amounts in thousands			United States		Canada		Poland		Corporate and Other		Total
Net operating revenue (1)		$	73,897	$	21,368	$	21,151	$	194	$	116,610
Earnings (loss) before income taxes		$	12,389	$	6,242	$	2,829	$	(6,488)	$	14,972
Net earnings (loss) attributable to Century Casinos, Inc. shareholders		$	12,389	$	5,308	$	1,437	$	(7,908)	$	11,226
Interest expense (income), net (2)			7,121		560		(355)		3,294		10,620
Income taxes			—		499		674		1,420		2,593
Depreciation and amortization			4,699		1,217		760		108		6,784
Net earnings attributable to non-controlling interests			—		435		718		—		1,153
Non-cash stock-based compensation			—		—		—		986		986
Gain on foreign currency transactions and cost recovery income			—		(57)		(232)		(24)		(313)
Loss on disposition of fixed assets			—		4		3		—		7
Adjusted EBITDA		$	24,209	$	7,966	$	3,005	$	(2,124)	$	33,056

(1)Net operating revenue for Corporate and Other primarily related 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, net in the United States segment. Expense of $0.5 million related to the CDR land lease is included in interest expense, net in the Canada segment. Cash payments related to the Master Lease and CDR land lease were $6.3 million and $0.4 million, respectively, for the period presented.

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	For the nine months ended September 30, 2022
Amounts in thousands			United States		Canada		Poland		Corporate and Other		Total
Net operating revenue (1)		$	206,275	$	55,105	$	65,265	$	131	$	326,776
Earnings (loss) before income taxes		$	28,176	$	9,123	$	7,967	$	(36,626)	$	8,640
Net earnings (loss) attributable to Century Casinos, Inc. shareholders		$	21,409	$	4,797	$	4,285	$	(18,473)	$	12,018
Interest expense (income), net (2)			21,310		1,733		(586)		25,482		47,939
Income taxes (benefit)			6,767		1,718		1,538		(18,153)		(8,130)
Depreciation and amortization			14,418		3,632		1,979		321		20,350
Net earnings attributable to non-controlling interests			—		2,608		2,144		—		4,752
Non-cash stock-based compensation			—		—		—		2,638		2,638
(Gain) loss on foreign currency transactions, cost recovery income and other (3)			(1)		138		(712)		(8)		(583)
Loss (gain) on disposition of fixed assets			33		23		31		(124)		(37)
Acquisition costs			—		—		—		2,724		2,724
Adjusted EBITDA		$	63,936	$	14,649	$	8,679	$	(5,593)	$	81,671

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

(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 $1.7 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 $19.1 million and $1.6 million respectively, for the period presented. Expense of $7.3 million related to the write-off of deferred financing costs in connection with the prepayment of the Macquarie Term Loan is included in interest expense (income), net in the Corporate and Other segment.

(3)Loss of $2.2 million related to the sale of the land and building in Calgary is included in the Canada segment.

	For the nine months ended September 30, 2021
Amounts in thousands			United States		Canada		Poland		Corporate and Other		Total
Net operating revenue (1)		$	214,969	$	30,031	$	35,751	$	456	$	281,207
Earnings (loss) before income taxes		$	39,486	$	1,728	$	(2,364)	$	(18,289)	$	20,561
Net earnings (loss) attributable to Century Casinos, Inc. shareholders		$	39,486	$	265	$	(1,432)	$	(21,657)	$	16,662
Interest expense (income), net (2)			21,083		1,263		(341)		9,825		31,830
Income taxes (benefit)			—		661		(216)		3,368		3,813
Depreciation and amortization			13,734		3,689		2,320		317		20,060
Net earnings (loss) attributable to non-controlling interests			—		802		(716)		—		86
Non-cash stock-based compensation			—		—		—		1,568		1,568
Gain on foreign currency transactions, cost recovery income and other			—		(604)		(221)		(436)		(1,261)
Loss (gain) on disposition of fixed assets			282		36		3		(39)		282
Adjusted EBITDA		$	74,585	$	6,112	$	(603)	$	(7,054)	$	73,040

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

(2)Expense of $21.1 million related to the Master Lease is included in interest expense, net in the United States segment. Expense of $1.2 million related to the CDR land lease is included in interest expense, net in the Canada segment. Cash payments related to the Master Lease and CDR land lease were $16.8 million and $1.3 million, respectively, for the period presented.