CNTY - Earnings call transcript Q2 2018

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Operator

Welcome to Century Casinos Q2 2018 Earnings Conference Call. This call will be recorded. [Operator Instructions] I would like to introduce our host for today's call, Mr. Peter Hoetzinger. Mr. begin. may you Hoetzinger,

Peter Hoetzinger

well and on for Co the of Haitzmann, the everyone, of Vice call. Margaret Finance, CEO our With Chairman Stapleton. as Erwin Casinos, me call Century our thank morning, Executive joining President you earnings and as Good are my

filings. to a risk forward-looking we cause materially update a future a begin, otherwise. risks whether SEC number to or we revise that various the and to The these we provide actual in factors forward-looking forward-looking differ events discussing result statements. statements, uncertainties as remind like we be and detailed no We the our information may you filings results undertakes of information, from to of of Before you that our obligation discussion new would will company encourage or which involves review

throughout In to in be including, to, our and not the limited our at refer the financial performance news available Investor yesterday website found non-GAAP filing liquidity in we'll Reconciliations cnty.com. non-GAAP measures, of addition, measures section morning to release can but appropriate our GAAP our and EBITDA. call, adjusted in several from of the measures

of We be the prepared will remarks, provide a the a there Q&A and following company's review now financial for will quarter results brief second our session.

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the one market. forward and our plans Southern to as soon to finalize at that enhancing in expect gaming look further We very position third expand Colorado leaders the for our property of

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Operator

[Operator of Instructions] Our state question first Stifel. question comes from Brad Please Boyer your

Brad Boyer

taking for guys. Thanks questions Yeah. my

the one, I would segment, bit US is levels First the there and delivered see to look I a saw. that at If of have Peter, we at margins. expansion the segment little both of revenue what just around than expected growth more segments, and Canadian the you those margin look in

just revenue have to those flowed curious, mix the was margins there through on anything So the on side, there negatively side may going segments? that in cost

Peter Hoetzinger

maybe say in hourly wage. In Canada, to you minimum increase we Erwin, have the that. an can more

Erwin Haitzmann

other it that we also at the it's an a some the to Central go Grand that in X and government competitive is That then we that per We marketing the it. make our Edmonton by on new part and a came Yeah. wage decided the Well, the the to then the of situation true investment October there the and up that's that's regards competition Casino due was introduced on XX due higher for now Villa. increase and particularly is stronger hourly goes usual minimum to years will hour to had with to which find than fact few ago. law same by [indiscernible] because that And it. City of exactly

Brad Boyer

in around Colorado? the And Okay. then out anything US

Erwin Haitzmann

Colorado say, increasing in we In and investments. also Colorado, combat up we City, try as [indiscernible] as was efforts I that trying one marketing is to ramping Central have that's far that competitor his what to our

Brad Boyer

resources here, here, were it reading contemplated. there license is like things Poznan, Q, awarded And to It kind the the licenses normalizing question locations? Okay. And not topic part on assume and That's like then, just second, second and Poland. good I of then around, was questions to first, to a around Two favorite that know. are eighth seems which Plock be for a mean, little just reallocate here was everyone's your on this looks through new I bit. decision would Poland within better Marriott.

within of the one thoughts, your curious, support that ability Just to hotel? on facility casinos two

Erwin Haitzmann

it. applied With it Plock, that don't to regard it we to because Poznan regard to anymore want didn't not decision really wasn't was go With we decided for we just we attractive. it but our get

due markets However one just we is. unhappy it we we in marketing one in unhappy is way been of are for really about competitor because historically end there not are had the are has all most so Poznan the really the to that difficult and no it that also may not the be spending fact

ended easily Polish and the we regard the have defer Warsaw because to with license could win that’s closed of up getting Now think, for in in have we the just itself third us, used of have We open sensation better. much big, the big due eight to we carry we details instead situation, the the we finalizing exactly competitive gaming building so is how The and on in one the to past will two one now it. are would Warsaw, Warsaw the licenses. three

great be One if all we make we because more it still put be existing the – possibilities a still we of – would it chase be we into it that have it’s casino would to would that could -- us rooms. the have

such how move whenever it years new the that’s most but over Warsaw we fashion that a get and the successful possible years regard interchange Warsaw Hilton. will then fresh thing we the to we six other five in will then Now Warsaw the a on to is see license case important is more we ones, then that in the with that casino which in after

Brad Boyer

Okay, that's know. good to

Erwin Haitzmann

an number. [indiscernible] is so shopping is It’s is day need and across complex. huge there the have big the basement, it of a Good two towers a in building all large intersection. traffic complex a building, not in underneath sections long, basement. four that all to the at There such. has connection foot is Then linked problem all heavy arcade it

Brad Boyer

just for that of property, of that your any for the talked CapEx F&B, you, of some redoing adding portion color. Okay. here. then little One, And you two about what all some idea rooms, Vietnam bit the questions, quick Thanks a some Peter, I like? plans have follow-ups would look have what the

Peter Hoetzinger

to in The plan that's is to like about fresh we we would If not not put few are do it in, out thousand of that cash dollars sufficient more. flow. hundred then talking a CapEx

Brad Boyer

Okay. And then last one.

guys question. this higher-level and float of you you have and they you buyback the stock sheet, that to bit guys, here? it in capacity today the that, that outlook on some where discount with sort the the ever stock trading pipeline balance limited share a of like is for would at is the your and suggest. Now have some capital, use considered is this a given significant appreciating fully are a growth have it's implementing on somewhat back But be you with your I both of But really today. seems year's of kind of a good trading some of growth forward that would it mean, to what a buy

Peter Hoetzinger

Yeah.

buyback is developments what and prefer we still have true and We said authorized new that actually acquisition. holds to have or a what we grow program by

have towards the X However on if absolutely are at, we a buyback like serious is do depends to that capital possibility. considering attractive shareholders growth we months that or not we back to looking XX the market put find program, opportunities or within then

Brad Boyer

Thanks the guys answering all questions, Okay. for

Peter Hoetzinger

Thanks, Brad.

Operator

Instructions] state comes question. of Mike question next Malouf Your Please your [Operator Craig-Hallum.

Eric Des Lauriers

questions. on taking Lauriers Mike. Des Eric my Thanks Hi, guys. for is This for

included you into EBITDA. now just one-time think missed have may of again? those bit some SG&A in I think broken detailed go a adjusted that I expenses those. Could the over were were you of that more I out

Peter Hoetzinger

non-recurring we the casino, the for No, close around Polish it's million million. the situation, extraordinary, It in said quarter pre-opening it's on $X were the UK. and to that expenses opening $X.XX that in and was

not Poland, there be little in with. Going of in then all a but very forward, it’s that will done and QX and bit over much

Eric Des Lauriers

cause pace switching similar was to you any Century April and expenses opening. budget that's just if then still And on it's negative casino. to the Mile, significant operating opening on I guys or expenses that expect X good might wondering EBITDA Okay. to hear Bath the one-time for

guys for overall Century just about would could that ramp Mile talk great. the EBITDA you that just margin and If be

Peter Hoetzinger

Erwin, Downs, and Century referring very can you go, get talk wasn’t that to about was from perhaps strong think I it it? the

Erwin Haitzmann

It was it when – very could because change policies in accounting with some the don't yeah, pre-ops strong Peggy that the maybe the from know comes seems to but have regard how to to go, revenues, in chime treated. on are been EBITDA get I how it

Margaret Stapleton

have to So the related longer would really but QX Mile. we opening, operating year close expense. get hard of of It's pre-opening little a you becomes probably but additional expenses to Century it some as you're expect bit expense to next quantify no opening -- to

hires and the employees two So any expenses. we new in of flow training open through the month before will property or

Erwin Haitzmann

potential words of the from other not the true EBITDA Mile in will results of So Century show first it. quarter

Margaret Stapleton

to offset will there be revenue those But expenses.

Eric Des Lauriers

XXXX about we -- QX before it or opens operating? in its first QX of quarter of of are So being talking

Margaret Stapleton

expenses. just and normal operating flowing we opens it and then opens should just offsetting there's be QX through expenses it have will some it before once So revenue,

Eric Des Lauriers

Okay.

sustained slow to guys normal of after margins have -- a operations, from So somewhat you think of the margins first and sort quarter your you pretty EBITDA up that? ramp of will

Margaret Stapleton

Yes.

Peter Hoetzinger

is down it operation, opening mid-XXs. quarter first it years then now, the strong third and really wanted up What we little from started quarter the were is especially to EBITDA it, the second of Central ramp a where was months three bit. it the strong then margins had Downs it two the everybody we quarter at And slowed in first in to after because very see very saw ago a new, that to

Eric Des Lauriers

it, appreciate I guys. helpful. very Thanks. That’s Great.

Operator

next your Our ROTH Capital. Bain Please of David from question question. comes state

David Bain

just up quickly I Thank discussion having. just on Mile wanted follow Century here to we the are you.

a So to benefit in begin just assume XX% to five now view? be you some that that could with four trying show to I'm return to quarters, get rate itself. I the quarters regard to Would opening to cadence when which just sense as think of the get the include Hotel after to that Edmonton. your run

Peter Hoetzinger

It to not three Casino does out, we quarters for benefit really four is it include expect about that but Century the Edmonton

David Bain

Okay. Fantastic. Thank you.

Operator

questions at further the not would to this are to There I call time, Hoetzinger. Mr. return no like

Peter Hoetzinger

your your the for Casinos you in interest Thank call. participation in and Century

visit at website call For financial the section Good recording please the of cnty.com results a bye. of our

Operator

This Thank concludes call. today’s conference for attending. you

Century Casinos (CNTY) 12 Aug 182018 Q2 Earnings call transcript