CNTY - Earnings call transcript Q3 2024

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Operator

Good day, everyone, and welcome to today's Century Casinos Q3 2024 Earnings Call. [Operator Instructions] Please note this meeting is being recorded. It is now my pleasure to turn the conference over to Peter Hoetzinger.

Peter Hoetzinger

Good morning, everyone, and thank you for joining our earnings call. We would like to remind you that we'll be discussing forward-looking information, which involves risks and uncertainties that may cause actual results to differ from our forward-looking statements. to result revise events of obligation whether forward-looking or no a as new undertakes update the or statements, otherwise. Company information, future our not you a filings to our several provide discussion measures, the adjusted refer factors We including, EBITDAR. financial but of call, we and to, review to in encourage non-GAAP these limited filings. Throughout risk SEC our appropriate and Reconciliations of Investors website news be releases SEC found remarks, open available can cnty.com. After we section our non-GAAP your the at of GAAP measures prepared our call in measures to questions. the filings the in will our for My co-CEO, join our Margaret me Stapleton, Erwin will Haitzmann; and for that. CFO,

opening in as as temporary still and from report our decline the markets. of Our just to casino important our closure to the trends to same remained of in third The More the a recently. there. heard is Throughout low-end land-based Caruthersville, the EBITDAR. X% underlying normal XX.X%. all margin small happy another the hotel but our more of the our in back other days retail Consolidated customer at this morning. and Xst, run-rate relatively little Poland. results QX EBITDAR less sure reopened small We a for I'm released of EBITDAR of one stable ago, weekend third and brand-new Last XX.X% a weak peers opening the in fantastic has $XXX year. had million, businesses. It are $XX.X you We that we've the we that around last least. see delivered or And Friday $XX on X%. increased gaming Adjusted stable down million, I'm The were about have quarter. opened November million customers consumer Poland net portfolio, revenue million to from decrease successfully reason revenue was later. discretionary to annual main quarter casino Missouri. well that $XX casinos it in customer of XX meantime, in compared was from

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catchment you, positions, XX XX% a which of to As riverboat compared Friday the XXX gaming increase increase old I with day, on so XX% can the gaming last daily for set much it an did in hotel increases operation and offers. and adding and options the parking and get-go for about a new I Caruthersville amenities, new more facility all opened style in from us customers facility, It was we our is the our guests. a new first total to from a a slots And location. was compared small significantly gaming all-time efficiencies. an The location temporary property riverboat entire Missouri provides fantastic to over land-based the of there, really not tell have enhanced significant in new record Right prospects non-gaming mentioned, property convenient positions very rooms the excited area. team opening our revenue, coin-in yet. operation transitions the bright operational weekend. and even the the all are modern expanded temporary for property old It's convenient The and and

results should initial pains The on that the probably soon. the until and revenue on growing will of fairly side We or EBITDA a take figured most out quarter the have levels. impact expect staffing uplift out worked see a and X strong we efficient

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year. efforts with and The surprise. of have also nice that to improvements month and meaningful month, Those and staff offset is there's Wine-in in revenue up revenue recently, that was this Colorado, earlier Cripple multi-night opened sales, up, from was benefit F&B the loss was during our days of directly after that we of a XXX-room table from fine-tune town.Â All gradual higher saw to our slot volume a to increase we continues well, we street lower been seeing sports profitability. drop in is growth the of lower operational new costs. higher betting higher in the visitors continues us team as QX. property across Creek into revenue. F&B partly expect expenses some and quarter, all In Additionally, hotel quarter which driving a to The was showed by hotel continue lot of offset expenses further up and a this by hold because the COGS

the compared we segment margins Casino one know, at the the the providers with you maintaining using The and job had F&B Resort to sports disappointing year, QX, is X licenses half Colorado XX% but a and sequential revenue Reno, quite good Missouri great Nevada. last a and with Circa last operating but of After Nugget growth. property XX% betting during Sequentially, fewer BetXXX. in behind Colorado, bit in the and As year's X to ceased still some recently, efficiencies segment group EBITDA Tipico. flat hotel in West showed did quarter. due year, level namely operations doubled first is the up a remaining compared Overall, quarter.Â Next our Gaming declined third was but to was nights. significantly revenue Nugget room

the revenue next the and $XXX Consumer the progressing and normal it's mainly of reason for resulted still in With levels the Poland, get visits $XX this done uptick say remain to ago words company-wide sales debt, with focused cash saw for volumes CapEx labor liquidity in about casinos years days Traditional revenues. in $XX million we and $XX very city In between and EBITDA grew the was the the million a group trends between significant better which in from before down hopeful help a position. $XXX we increasing the quarter X our on We Canada, operational net process We balance is XX% to costs. all net year, of this next both it within leverage get at offset X%. $XXX and have need we X of much have looking in to better convention in are an forward.Â New we $X through control. significant sheet younger is that year. the recent compared Poland resulting to we drop appear to management meetings inÂ WroclawÂ XX we and quite number during in million our great. cost in in focused of to took already, smaller have million were that in last expect Total quickly, has million let's locations apples-to-apples EBITDA.Â The casino a Canada Anyway, to which from its million and months.Â Now it completed year. grew properties, efficiencies in $X will back last and but year, is annual our net volumes also in also operations. undisturbed ofÂ Wroclaw, comparison for lies million. groups.Â The market million are one which over age that The elevators we investor few in year. $XX spend debt lease cash We're on compared top quarter, the well. CapEx is pretty ended X.Xx. X.Xx back X which strong by rising happy be expenses one EBITDAR stable Europe. reopening, Anyway, successfully cost and leverage closed casino million quarter, operations went estimate of Local important discuss total XXXX.Â A couple play control. is adjusted to X%, outstanding And the going on to We that up Alberta. down in and by reopened equivalents mentioned program In business

course, of elevated Of investments. because and recent the is acquisitions our leverage

have as until penalty. it and loan the and Xx refinance or adjusted term should next year.Â We open, traditional any without Poland around our Xx entire down lease new XXXX, the we ramp inÂ Caruthersville can have quite to maturities at no look debt and land-based reprice Now we quickly that in for to facility time we delever casinos

to soon as the our to on So act window improve and we terms.Â Turning CapEx. as want it opens,

future investing to well we to as the offering and committed guests spend. remained visitation new amenities as During our order in quarter, to drive incremental

around today, done with and are we in $X amount Canada go total to of The it, million Colorado. much million. $XX just for pretty year As CapEx will this to

posted flow. to in 'XX. this growth new the much to in negative we our Poland most it to positive of flow cash by the next cash down But Nugget CapEx, stage presentation the driven the substantial reduction will andÂ CartersvilleÂ and come optimism to significantly the spirit in a only that for 'XX.Â The cash XXXX setting openings contribute increase casino in from website free is significant $XX recent on in expect bridge year generation the results at in than Reno you cash shows better flow in sharply not million, For year, the about

ahead, business we our are As we confident moving look in forward. prospects

the a earnings in and become this delever and we side, continue expense we've to focus will labor and clear operational our on to even call, transitory significantly. cash ways a year more last is we to On forward generating for said discipline for see to path period us, but look efficient.Â As

an also on Q&A. opportunistic stock. Paul, our buy right. now for prepared call All addition, we remarks. the In go basis, concludes That to plan open back We'll please. ahead,

Operator

first comes And of Citizens our Jordan question [Operator JMP. Bender from Instructions]

Jordan Bender

denied? I them there. those I Peter, just we want X Were can start I guess expect help they they back? what come in to licenses? want Or to start Are us of Poland. kind you to outstanding? understand should

Erwin Haitzmann

to do you want Peter, answer?

Peter Hoetzinger

ago. been start officials and the not We earlier revenue we casinos in ones us. licenses back and significant all days not EBITDA And generate probably. opening one and of [indiscernible], had and last ones, again had EBITDA does meaningful I expired did year. a with as Yes, close to to we on the granted the in last the some for said, charge and I why relicensing opened those that relicensed smaller X get late Poland purposes, not XX The of for to mean, run-rate.Â So we one important, million is is for to time, XX was did had the this and year intents revenue that and normal few impact $XX of, have days any that's $XX million have that the in that actually and that that the We us process licenses ago.

Jordan Bender

those properties Okay. the properties? X mindset closing up just on stand your willingness And follow of you sell Does of if where you of with lack I the those that. at Perfect. can on update that relicensing of the process? all can or us kind change then Or to

Peter Hoetzinger

not No, at all.

X years, between Poland the always Over Casinos licenses. the had X has and

competitor. sometimes and one small from back a it get you don't you get Sometimes a

of plans bit in also licenses little a that change. investors sell, a and X more And the always fluctuation, buying there's change no less. are there's but change or to are our So of operations intact. from there's the or small no fully in because core No X interested

Jordan Bender

Congrats on opening last property the week.

Operator

of Our Jeff from comes Stifel. next question Stantial

Jeffrey Stantial

that into further and operational levers and further sequential Maybe here what starting Nugget off some Peter it, could color the pull look we'll QX into you encouraging quarter. you Casino, that to, profitability month-by-month the try beyond, Erwin, XXXX are on gap type call you to performance performance guess, of the to drive still or just October? property here can there out close at on left the during add I improvement as the XXXX help and And some levels? through

Erwin Haitzmann

Yes. Thanks. question. I'll Good that. take

what namely to because saw a was coming basically good the is encouraging. quarter, I stronger the getting in same and that impact September see And is from what July. from negative continuing the we think super and third it we -- almost we trend October. is August were question in the first really were and the stronger. ask And month, XXX% year-over-year, into

focus Peter difficulty really that as already. particular, on good doing. we we there be think regard And that we a group some is operational good there. a selection group we've still said the Concerning next business. only is put and planned as are very the of are well.Â In year or we're Peter the to optimistic. the efficiencies very earlier, ahead. business again, progress of everybody more of fine-tuning on we lot with still there as X made with that is revenue getting said, we concerts years also So that years, And think are opportunity to some growing Also, is And found there track most X,

that we're strongly of, a is only a after market with than them. portion certain planning So we have less of the say, horizon months, but X

Jeffrey Stantial

relative And helpful. of a like some quarters more on then looks turning Great. strong to after Peter And Erwin, year-on-year revenues It That's for you a expand X thoughts any about or be what's can the think markets? broadly, us. to just Canadian sort in assets, post-COVID of performance market that's U.S. reversion to you regional seen in spend, last of bit assets. and in driving you follow-up, that? your consumer from year we've U.S. mean were some down that similar your great, or as really in anticipate my would do Just handful growth. all what there

Erwin Haitzmann

is namely Sure. operating basically million in decrease $X revenue The net revenue. where That now numbers Downs, reasons. casino in decrease has less rounded X due to Century operating about the one net is

row, in to The X it not we to but racing. profitable was are that a first We time that be have XXXX, we of is the for in had that out called be a one had in fact which that Chuckwagon attributed large that around not did anymore. years was 'XX. event, to $XXX,XXX Last turned

in do decided XXXX. not So to it we

Casino we revenues back well more. we bit had has other our lost certainly of So think any deterioration on to earlier the casino of on $XXX,XXX 'XX, With Century in the a a EBITDA.Â And small revenue, Fort it we impact the feel is we million,Â and in it's Having Road had we now some the casinos there in $X.X which regard QX Airport 'XX. negative expect decreases the very to the opposite, and possible interested, St. increased that Edmonton smaller a whilst competitor, to said remaining market rather by we had a us the stabilized 'XX, that closest Casino, that fact in impact and the good due stabilized, were the the can have opened shares NOR us further Century come you're stronger Casino while market Albert that impact in $XXX,XXX Mile. in the it QX don't that, $XXX,XXX in I case in on had little and and

overall On the $XXX,XXX, were increased whilst EBITDA $XXX,XXX. however, side, by revenues EBITDAR by decreasing

we're be unhappy it shall all going the say, mildly I here in, kicked So and not it'sÂ from at the regard out, we upwards. on, on with positive the numbers. With operational again, think trends, only to efficiencies will

Operator

Beynon question comes Chad Group. next Macquarie from of Our

Chad Beynon

Congrats in wanted opening. XXXX on for start guidance illustrative your I the the deck. to Caruthersville with investor

So ramp guess, I But as and we 'XX, the Cape and $XXX the you're 'XX about Girardeau changed in of improvement. think Reno million about EBITDA this anything has obviously, will from to of opening bridge EBITDAR. from Caruthersville thinking of this most how then, terms come

margin a terms in You Caruthersville. mentioned the comments of ramp of in some

So this of the be come back should linear? we it Or in to half should more XXXX? of think about growth

Erwin Haitzmann

Peter, why don't you take that, please?

Peter Hoetzinger

for question. the thanks Chad, Yes,

and this at little new the timeÂ for opening line. property for As will a with is full take and purposes, intents see most also of it Yes, openings, it on EBITDA Caruthersville. a the was all to bit potential us

terms Cape more bit more run-rate. from we'll it's second probably that that half the generally it's immediate. 'XX speaking, the the a In second of G But of and Nugget, see or quarter

Chad Beynon

mentioned the capacity Okay. the when what's the repurchases strategy? bit repurchases? be of this as total you a Perfect. how more that past you remains and And you terms the share to I levels. execute guess, about CapEx -- availability on in could continue that should And stock low you're then just come could execute at we something in on What's little start think to more have cycle, to

Erwin Haitzmann

Peter?

Peter Hoetzinger

Yes.

But however, casinos. million the $XX on disclosing between million that $XXX we million our of $XX and in about are that, generate of On the year. of million $XX We over balance do, presentation, between and cash top to roughly have need we expect from sheet. million the absolute see amount. next free you cash $XX any not dollar in We that page

if So probably or include real available year, the somewhereÂ around cash $XX million is next so. we

it We stock for paydown and all we'll buyback. a but use that will and good debt of it, split not of portion

In and year of have we'll early terms as timing, we late next. said, it's this or probably start opportunistic, either

Chad Beynon

repurchases now you existing Okay. what's out right have for for the -- there Do basket availability?

Peter Hoetzinger

It's an authorized changed. $XX solution existing that course, that of can, but has million, be

Operator

Instruction] [Operator

Erwin Haitzmann

any seem don't to questions. There be further

Operator

that And will this remarks. further now our we to have presenters closing for back at turn program no I questions it the appears time.

Erwin Haitzmann

you, appreciate next our Thanks, then, thank everybody. talk goodbye. and early year. today. joining you We'll Until We call again

Operator

today's does Thank Thank Century QX you. conclude This participation. for Earnings your XXXX you Call. Casinos

may any disconnect time. at You

Century Casinos (CNTY) 4 Nov 242024 Q3 Earnings call transcript