Segment Information | 12. 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. Operating segments are aggregated within reportable segments based on their similar 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 casino properties provide gaming, hotel accommodations, dining facilities and other amenities to the Company’s customers. The Company’s operations related to 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 operating segments into reportable segments: Reportable Segment Operating Segment Canada Century Casino & Hotel - Edmonton Canada Century Casino Calgary Canada Century Downs Racetrack and Casino Canada Century Bets! United States Century Casino & Hotel – Central City United States Century Casino & Hotel – Cripple Creek Poland Casinos Poland Corporate and Other Cruise Ships & Other Corporate and Other Corporate Other The Company’s chief operating decision maker is a management function comprised of two individuals. These two individuals are our Co Chief Executive Officers. The Company’s chief operating decision makers and management utilize Adjusted EBITDA as a primary profit measure for its reportable segments. Adjusted EBITDA is a non-U.S. GAAP measure defined as net earnings (loss) 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 items. 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 and six months ended June 30, 2016 and 2015: For the Three Months Ended June 30, 2016 Amounts in thousands Canada United States Poland Corporate and Other Total Net operating revenue (1) $ 13,167 $ 7,703 $ 13,570 $ 761 $ 35,201 Net earnings (loss) attributable to Century Casinos, Inc. shareholders $ 1,948 $ 833 $ 678 $ (1,210) $ 2,249 Interest expense (income), net 784 0 8 (4) 788 Income taxes (benefit) 688 511 350 (562) 987 Depreciation and amortization 772 625 633 87 2,117 Non-controlling interest 1,736 0 341 0 2,077 Non-cash stock-based compensation 0 0 0 190 190 (Gain) loss on foreign currency transactions and other (1,524) 0 (22) (14) (1,560) Loss (gain) on disposition of fixed assets 18 1 (9) 0 10 Adjusted EBITDA $ 4,422 $ 1,970 $ 1,979 $ (1,513) $ 6,858 (1) Net operating revenue for Corporate and Other primarily relates to the Company’s cruise ship operations. For the Three Months Ended June 30, 2015 Amounts in thousands Canada United States Poland Corporate and Other Total Net operating revenue (1) $ 13,309 $ 7,210 $ 12,875 $ 4,481 $ 37,875 Net earnings attributable to Century Casinos, Inc. shareholders $ 2,258 $ 718 $ 568 $ 3,053 $ 6,597 Interest expense (income), net 992 0 43 (2) 1,033 Income taxes (benefit) 611 362 268 (1,647) (406) Depreciation and amortization 573 632 636 49 1,890 Non-controlling interest 738 0 284 0 1,022 Non-cash stock-based compensation 0 0 0 419 419 Gain on foreign currency transactions and other (357) 0 (35) (15) (407) Loss on disposition of fixed assets 3 0 22 0 25 Acquisition costs (36) 0 0 36 0 Other one-time income (2) 0 0 0 (3,365) (3,365) Adjusted EBITDA $ 4,782 $ 1,712 $ 1,786 $ (1,472) $ 6,808 (1) Net operating revenue for Corporate and Other primarily relates to the Company’s cruise ship operations . (2) Other one-time income for Corporate and Other relates to the $3.4 million consideration for the Termination Agreement with Norwegian. For the Six Months Ended June 30, 2016 Canada United States Poland Corporate and Other Total Net operating revenue (1) $ 25,462 $ 14,784 $ 25,835 $ 1,650 $ 67,731 Net earnings (loss) attributable to Century Casinos, Inc. shareholders $ 3,604 $ 1,377 $ 1,347 $ (2,186) $ 4,142 Interest expense (income), net 1,534 0 23 (8) 1,549 Income taxes (benefit) 1,118 844 617 (995) 1,584 Depreciation and amortization 1,470 1,251 1,234 172 4,127 Non-controlling interest 1,735 0 672 0 2,407 Non-cash stock-based compensation 0 0 0 381 381 (Gain) loss on foreign currency transactions and other (1,544) 0 (222) 8 (1,758) Loss on disposition of fixed assets 21 3 13 0 37 Adjusted EBITDA $ 7,938 $ 3,475 $ 3,684 $ (2,628) $ 12,469 (1) Net operating revenue for Corporate and Other primarily relates to the Company’s cruise ship operations. For the Six Months Ended June 30, 2015 Canada United States Poland Corporate and Other Total Net operating revenue (1) $ 21,754 $ 14,003 $ 26,409 $ 6,113 $ 68,279 Net earnings attributable to Century Casinos, Inc. shareholders $ 4,392 $ 1,194 $ 1,351 $ 1,505 $ 8,442 Interest expense (income), net 1,625 0 78 (6) 1,697 Income taxes (benefit) 957 731 516 (2,175) 29 Depreciation and amortization 992 1,266 1,247 197 3,702 Non-controlling interest (1) 0 675 0 674 Non-cash stock-based compensation 0 0 0 807 807 Gain on foreign currency transactions and other (519) 0 (368) (15) (902) Loss on disposition of fixed assets 3 0 142 1 146 Preopening expenses 345 0 0 0 345 Other one-time income (2) 0 0 0 (3,365) (3,365) Adjusted EBITDA $ 7,794 $ 3,191 $ 3,641 $ (3,051) $ 11,575 (1) Net operating revenue for Corporate and Other primarily relates to the Company’s cruise ship operations . (2) Other one-time income for Corporate and Other relates to the $3.4 million consideration for the Termination Agreement with Norwegian . |