Segment Information

9 Months Ended

Sep. 30, 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. After the Nugget Acquisition, the Company evaluated its operating segments and concluded that as a result of the growth in the United States it would begin viewing its operating segments as East, Midwest and West. The Company views each casino or other operation within its operating segments 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 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.

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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	East	Mountaineer Casino, Resort & Races (1)
		Rocky Gap Casino, Resort & Golf (1)
	Midwest	Century Casino & Hotel - Central City
		Century Casino & Hotel - Cripple Creek
		Century Casino Cape Girardeau (1)
		Century Casino Caruthersville (1) and The Farmstead
	West	Nugget Casino Resort and Smooth Bourbon, LLC
Canada	Canada (2)	Century Casino & Hotel - Edmonton (1)
		Century Casino St. Albert (1)
		Century Mile Racetrack and Casino (1)
		Century Downs Racetrack and Casino (1)
Poland	Poland	Casinos Poland
Corporate and Other	Corporate and Other	Cruise Ships & Other (3)
		Corporate Other (4)

(1)The real estate assets are owned by VICI PropCo.

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

(3)The Company operated on ship-based casinos through April 16, 2023. See Note 1.

(4)Prior to the Nugget Acquisition, the Company’s equity investment in Smooth Bourbon was 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, 2023
Amounts in thousands			United States		Canada		Poland		Corporate and Other		Total
Net operating revenue		$	116,861	$	20,921	$	23,397	$	—	$	161,179
Earnings (loss) before income taxes			7,861		(6,586)		1,558		(19,367)		(16,534)
Net earnings (loss) attributable to Century Casinos, Inc. shareholders		$	5,273	$	(1,730)	$	788	$	(18,506)	$	(14,175)
Interest expense (income), net (1)			11,951		8,706		(74)		10,785		31,368
Income taxes (benefit)			818		(3,403)		378		(861)		(3,068)
Depreciation and amortization			10,706		1,102		653		57		12,518
Net earnings (loss) attributable to non-controlling interests			1,770		(1,453)		392		—		709
Non-cash stock-based compensation			—		—		—		1,082		1,082
(Gain) loss on foreign currency transactions, cost recovery income and other (2)			(85)		1,484		(213)		(46)		1,140
Loss on disposition of fixed assets			56		—		24		—		80
Acquisition costs			—		—		—		3,693		3,693
Adjusted EBITDA		$	30,489	$	4,706	$	1,948	$	(3,796)	$	33,347

(1)Included in interest expense (income), net is interest expense of $12.0 million and $0.9 million related to the Master Lease in the United States and Canada segments, respectively, and interest expense of $0.4 million related to the CDR land lease and $7.3 million related to the debt extinguishment of the CDR land lease in the Canada segment. Cash payments related to the Master Lease and CDR land lease were $11.9 million and $0.3 million, respectively, for the period presented. The CDR land lease ended on September 6, 2023 in conjunction with the Canada Real Estate Sale.

(2)Included in the Canada segment is $0.3 million related to the earn out from the sale of casino operations in Calgary in 2020.

	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 from equity investment			—		—		—		1,071		1,071
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 and cost recovery income			—		(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, which ceased in April 2023.

(2)Included in interest expense (income), net is interest expense of $7.2 million related to the Master Lease in the United States segment and interest expense of $0.6 million related to the CDR land lease 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. The CDR land lease ended on September 6, 2023 in conjunction with the Canada Real Estate Sale.

	For the nine months ended September 30, 2023
Amounts in thousands			United States		Canada		Poland		Corporate and Other		Total
Net operating revenue (1)		$	277,636	$	56,262	$	72,489	$	61	$	406,448
Earnings from equity investment			—		—		—		1,121		1,121
Earnings (loss) before income taxes			25,244		4,453		5,995		(47,113)		(11,421)
Net earnings (loss) attributable to Century Casinos, Inc. shareholders		$	17,026	$	2,865	$	3,066	$	(40,334)	$	(17,377)
Interest expense (income), net (2)			26,370		9,776		(285)		31,238		67,099
Income taxes (benefit)			4,656		(624)		1,398		(6,779)		(1,349)
Depreciation and amortization			24,065		3,374		1,948		175		29,562
Net earnings attributable to non-controlling interests			3,562		2,212		1,531		—		7,305
Non-cash stock-based compensation			—		—		—		2,746		2,746
Gain on foreign currency transactions, cost recovery income and other (3)			(85)		(3,228)		(572)		(42)		(3,927)
Loss on disposition of fixed assets			492		5		25		4		526
Acquisition costs			—		—		—		4,101		4,101
Adjusted EBITDA		$	76,086	$	14,380	$	7,111	$	(8,891)	$	88,686

(1)Net operating revenue for Corporate and Other primarily related to the Company’s cruise ship operations, which ceased in April 2023.

(2)Included in interest expense (income), net is interest expense of $26.4 million and $0.9 million related to the Master Lease in the United States and Canada segments, respectively, and interest expense of $1.4 million related to the CDR land lease and $7.3 million related to the debt extinguishment of the CDR land lease in the Canada segment. Cash payments related to the Master Lease and CDR land lease were $25.7 million and $1.3 million, respectively, for the period presented. The CDR land lease ended on September 6, 2023 in conjunction with the Canada Real Estate Sale.

(3)Included in the Canada segment is $1.6 million related to the earn out from the sale of casino operations in Calgary in 2020 and cost recovery income for CDR.

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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 from equity investment			—		—		—		2,134		2,134
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 and consulting agreements, which ceased in April 2023.

(2)Included in interest expense (income), net is interest expense of $21.3 million related to the Master Lease in the United States segment, interest expense of $1.7 million related to the CDR land lease in the Canada segment, and interest expense of $7.3 million related to the write-off of deferred financing costs in connection with the prepayment of the Macquarie Term Loan in the Corporate and Other 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. The CDR land lease ended on September 6, 2023 in conjunction with the Canada Real Estate Sale.

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