Segment Information

3 Months Ended

Mar. 31, 2023

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 (1)
Canada	Edmonton	Century Casino & Hotel - Edmonton
		Century Casino St. Albert
		Century Mile Racetrack and Casino
	Calgary (2)	Century Downs Racetrack and Casino
Poland	Poland	Casinos Poland
Corporate and Other	Corporate and Other	Cruise Ships & Other
		Corporate Other (3)

(1)Includes The Farmstead.

(2)The Company operated Century Sports through February 10, 2022. See Note 1.

(3)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.

‎

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

	For the three months ended March 31, 2023
Amounts in thousands			United States		Canada		Poland		Corporate and Other		Total
Net operating revenue (1)		$	66,369	$	16,503	$	25,579	$	57	$	108,508
Earnings (loss) before income taxes		$	7,151	$	6,989	$	2,992	$	(12,478)	$	4,654
Net earnings (loss) attributable to Century Casinos, Inc. shareholders		$	5,375	$	1,867	$	1,574	$	(10,059)	$	(1,243)
Interest expense (income), net (2)			7,119		523		(95)		9,957		17,504
Income taxes (benefit)			1,776		1,634		632		(2,419)		1,623
Depreciation and amortization			5,032		1,127		635		61		6,855
Net earnings attributable to non-controlling interests			—		3,488		786		—		4,274
Non-cash stock-based compensation			—		—		—		736		736
(Gain) loss on foreign currency transactions, cost recovery income and other (3)			—		(4,085)		(254)		7		(4,332)
Loss on disposition of fixed assets			470		3		1		5		479
Acquisition costs			—		—		—		158		158
Adjusted EBITDA		$	19,772	$	4,557	$	3,279	$	(1,554)	$	26,054

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

(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 $6.9 million and $0.5 million, respectively, for the period presented.

(3)Includes $0.6 million related to the earn out from the sale of casino operations in Calgary in 2020 and cost recovery income for CDR.

	For the three months ended March 31, 2022
Amounts in thousands			United States		Canada		Poland		Corporate and Other		Total
Net operating revenue (1)		$	65,248	$	15,999	$	21,824	$	32	$	103,103
Earnings (loss) before income taxes		$	8,521	$	1,944	$	1,955	$	(8,276)	$	4,144
Net earnings (loss) attributable to Century Casinos, Inc. shareholders		$	8,521	$	(703)	$	931	$	(8,531)	$	218
Interest expense (income), net (2)			7,007		567		(13)		3,233		10,794
Income taxes			—		622		558		255		1,435
Depreciation and amortization			4,768		1,225		681		121		6,795
Net earnings attributable to non-controlling interests			—		2,025		466		—		2,491
Non-cash stock-based compensation			—		—		—		673		673
Loss (gain) on foreign currency transactions and cost recovery income (3)			—		243		18		(12)		249
Loss on disposition of fixed assets			19		15		3		—		37
Acquisition costs			—		—		—		1,132		1,132
Adjusted EBITDA		$	20,315	$	3,994	$	2,644	$	(3,129)	$	23,824

(1)Net operating revenue for Corporate and Other primarily related 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 $0.6 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 $4.3 million and $0.4 million, respectively, for the period presented.

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