Century Casinos Inc (CNTY) Reports Record Net Operating Revenue and Adjusted EBITDA in Q3 2023
Century Casinos Inc (NASDAQ:CNTY) achieves record quarterly net operating revenue and Adjusted EBITDA in Q3 2023.
Completion of Rocky Gap acquisition and Canada real estate sale significantly reduces net debt.
Net operating revenue increased by 43% and Adjusted EBITDA by 19% compared to Q3 2022.
Net loss attributable to shareholders widened due to one-time expenses related to acquisitions and sales.
On November 9, 2023, Century Casinos Inc (NASDAQ:CNTY) announced its financial results for the third quarter of 2023, highlighting a period of significant growth and strategic expansion. The company reported record highs in net operating revenue and Adjusted EBITDA, attributing these achievements to the successful acquisitions of the Nugget Casino Resort and Rocky Gap Casino, Resort & Golf. Despite these milestones, one-time expenses associated with the Rocky Gap acquisition and the Canada sale leaseback transaction impacted earnings from operations and net loss for the quarter.
Financial Performance Overview
The company's net operating revenue for the three months ended September 30, 2023, soared to $161.2 million, marking a 43% increase from the $112.6 million reported in the same period last year. Adjusted EBITDA also saw a significant rise, reaching $33.3 million, up 19% from the previous year's $28.1 million. However, earnings from operations fell by 28% to $14.5 million, and the net loss attributable to Century Casinos Inc shareholders expanded dramatically to $14.2 million, a 582% increase from a net earning of $2.9 million in Q3 2022.
Segment Performance and Debt Reduction
The United States segment led with a 65% increase in net operating revenue, while Canada and Poland also reported growth. The completion of the Canada real estate sale significantly reduced the company's net debt from $255.5 million as of June 30, 2023, to $158.9 million as of September 30, 2023. This strategic move, along with the acquisition of Rocky Gap, has reshaped the company's financial structure and growth trajectory.
Balance Sheet and Liquidity
As of September 30, 2023, Century Casinos Inc (NASDAQ:CNTY) had $189.0 million in cash and cash equivalents, an increase from $101.8 million at the end of 2022. The company's outstanding debt decreased slightly to $347.9 million, compared to $366.4 million at the end of the previous year. The company also holds a $654.0 million long-term financing obligation under its Master Lease.
Management Commentary
Co-Chief Executive Officers Erwin Haitzmann and Peter Hoetzinger commented on the results, stating,
With our acquisitions of the Nugget Casino Resort and Rocky Gap Casino, Resort & Golf we achieved record high net operating revenue and Adjusted EBITDA. One time expenses related to the Rocky Gap acquisition and Canada sale leaseback transaction negatively impacted our earnings from operations and net loss for the quarter. Looking ahead we anticipate revenue and operating expense trends to remain consistent with what we have seen the last several quarters,
and concluded,
The completion of the Canada sale leaseback reduced our Net Debt from $255.5 million as of June 30, 2023 to $158.9 million as of September 30, 2023,
Conference Call and Further Information
The company will host a conference call to discuss the third quarter 2023 results and has made the quarterly report and a presentation of the results available on its website. Interested parties can access the call and the documents at www.cnty.com/investor/financials/sec-filings/ and www.cnty.com/investor/presentations/.
Century Casinos Inc (NASDAQ:CNTY) continues to pursue other projects and opportunities, aiming to enhance shareholder value and strengthen its market position. The company's strategic initiatives and financial management in Q3 2023 have set a solid foundation for future growth and stability.
Explore the complete 8-K earnings release (here) from Century Casinos Inc for further details.
This article first appeared on GuruFocus.
