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Edited Transcript of CNTY earnings conference call or presentation 4-Nov-19 3:00pm GMT

Q3 2019 Century Casinos Inc Earnings Call

Colorado Springs Nov 5, 2019 (Thomson StreetEvents) -- Edited Transcript of Century Casinos Inc earnings conference call or presentation Monday, November 4, 2019 at 3:00:00pm GMT

TEXT version of Transcript

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Corporate Participants

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* Erwin Haitzmann

Century Casinos, Inc. - Chairman & Co-CEO

* Margaret Stapleton

Century Casinos, Inc. - Executive VP of Finance, Secretary, Principal Financial & Accounting Officer

* Peter Hoetzinger

Century Casinos, Inc. - Vice Chairman, Co-CEO & President

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Conference Call Participants

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* Andrew E.F. Gordon

E.F. Gordon, L.P. - Portfolio Manager

* Brad J. Boyer

Stifel, Nicolaus & Company, Incorporated, Research Division - Analyst

* David Brian Bain

Roth Capital Partners, LLC, Research Division - MD & Senior Research Analyst

* John G. DeCree

Union Gaming Securities, LLC, Research Division - Director and Head of North America Equity & High Yield Research

* Michael Fawzy Malouf

Craig-Hallum Capital Group LLC, Research Division - Partner, Senior Research Analyst & Head of Boston Team

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Presentation

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Operator [1]

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Welcome to Century Casinos Q3 2019 Earnings Conference Call. (Operator Instructions) I would like to introduce our host for today's call, Mr. Peter Hoetzinger. Mr. Hoetzinger, you may begin.

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Peter Hoetzinger, Century Casinos, Inc. - Vice Chairman, Co-CEO & President [2]

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Good morning, everyone, and thank you for joining our earnings call. With me on the call are my Co-CEO and Chairman of Century Casinos, Erwin Haitzmann, as well as our Chief Financial Officer, Margaret Stapleton.

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

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

I'll now provide a brief review of the company's financial results for the third quarter 2019. And following the prepared remarks, there will be a Q&A session.

Results of the existing properties were mixed. The Canadian segment was up, thanks to the newly opened Century Mile Racetrack and Casino. The U.S. Colorado segment was down slightly while Poland was up significantly. Overall, net operating revenue was up 22%, adjusted EBITDA was up 12%.

In Canada, all our 3 casinos in the Edmonton market showed good growth. Century Casino & Hotel Edmonton and the Century Casino St. Albert grew revenues by 1% and 3% and adjusted EBITDA by 1% and 12% respectively.

Century Mile Racetrack and Casino in South Edmonton generated solid revenue, but the expense side of the business, the bottom line is still work in progress. That's not unusual for a newly opened casino, takes about a year until the property reaches its full potential, and Century Mile is well on its way. Operations continue to ramp up, and we are pleased with the revenue generated at the property. We continue to analyze the cost structure, the staffing levers and efficiencies of Century Mile to achieve the margins we expect.

In Calgary, our 2 properties, Century Downs and Century Casino, generated even better revenue growth, namely 6% and 3% respectively. Adjusted EBITDA was up at Century Casino and slightly down at Century Downs due to onetime expenses associated with a high-profile track reg and racing event that was held in August and some construction-related margin disruption. We are very excited about the upcoming opening of the expansion at Century Downs. It will increase the gaming flow by about 20% and will open in 2 weeks.

Total CapEx is approximately $1 million. Remember, we don't have to pay for the slot machines. And we expect to generate at least that same amount in incremental EBITDA per year.

In the U.S., our 2 operations in Colorado were down slightly year-over-year. As mentioned several times previously, Colorado is a very competitive market. And in some quarters, you win market share, in others, you lose a bit, all depending how heavily others are spending on promotions and campaigning.

We hope that tomorrow, November 5, retail and online sports betting will be voted in, in Colorado. We are in negotiations with different sports betting companies for partnerships to provide a high-quality and competitive offering for our customers. Key points for any such agreements and partnerships include quality and experience of the sports betting partner as well as revenue splits and annual minimum guarantees to us. Sports betting operations in Colorado could start as early as in the summer of next year, and we will be well prepared for it.

In Poland, revenue was up 28% in local currency, EBITDA almost tripled. The growth came from both the slots and the table games at all locations and the newly expanded gaming floor at our flagship operation, the casino at the Marriott Hotel in Warsaw, continues to ramp up nicely.

In the U.K., the casino in Bath will disappoint, and the outlook remains challenging as the gaming business throughout the U.K. is being hampered by tough regulations regarding anti-money laundering, social responsibility and general data protection. We've started a strategic review of this investment with all options on the table and plan to make a decision in Q1 of next year.

Now a quick look at our balance sheet and liquidity. We have $44 million in cash and cash equivalents and $71 million in outstanding debt. The total debt to adjusted EBITDA ratio is 2.7x, the net debt to adjusted EBITDA ratio is 1.0x. Our debt includes $52 million related to our Bank of Montreal Credit Agreement, $15 million related to the Century Downs' long-term land lease and $4 million in Europe. The book value per share increased to $6.09.

CapEx for existing operations during the quarter was $2.1 million or 3.9% of revenues, which includes about $0.5 million for the gaming for expansion at Century Downs in Calgary.

Let me now give you an update of the Eldorado acquisition. As most of you know, in June of this year, we announced the acquisition of 3 casino operations from Eldorado for $107 million at an impressively accretive 4.1 acquisition multiple. Well, that has become even more exciting because these 3 operations have continued their strong performance, resulting in a decrease of our purchase margin to 3.6, which is really competitive. These are 3 quality assets in strong and stable gaming markets, each enjoying a leading regional position and each with a long track record of producing solid and growing revenue and EBITDA. With this acquisition, we pretty much double the size of our company, which underlines the truly transformational nature of this deal. The transaction is subject to gaming regulatory approval in Missouri as well as customary closing conditions and expected to close in late 2019 or very early 2020.

Throughout the quarter, our accounting, operations, IT and marketing teams have visited all 3 operations in Missouri and West Virginia a number of times to ensure a smooth takeover. We are very happy to report that local management of all 3 properties will come with us and stay in place, and we have already identified some short-term, low-cost measures to increase business volumes and increase operating efficiencies.

Whilst we will rebrand the 2 Missouri properties to Century Casinos, we leave the well-established Mountaineer brand in place.

On a pro forma basis, giving effect to the acquisition as if it had occurred a year ago, we have 5 casinos in the U.S., 5 in Canada and 8 smaller ones in Europe with a total of 7,020 gaming machines, 270 gaming tables, 430 hotel rooms and 3 horse racetracks. And we generate net operating revenue of $415 million and adjusted EBITDA of $58 million. And these numbers do not include any synergy effects at all. And going forward, we expect revenue and EBITDA to grow further due to the new Century Mile ramping up, expansion of Century Downs and new sports betting revenue in Colorado subject to vote approval tomorrow.

It's already exciting, it's more than doubling our revenues and EBITDA, so therefore, it's pretty surprising to me that our stock price has not reacted more positively to it yet. I will be on the road in New York and Chicago later this week to get the story out, hope that will help. We will finance this transaction with $170 million term loan facility, for which we have a bank commitment from Macquarie Capital. This facility will also take out the existing debt we have with BMO right now.

On a pro forma basis, our leverage on traditional net debt is 2.5, and our lease adjusted net debt leverage is 4.1. This conservative capitalization together with a strong operating performance and great relationships with gaming REITs should provide us ample capacity to pursue further growth opportunities, especially as the regional gaming trends in North America remain healthy.

All right. That pretty much sums up another successful and very active, very busy quarter for us. And thank you for your attention, and we can now start the Q&A session.

Operator, go ahead, please.

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Questions and Answers

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Operator [1]

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(Operator Instructions) Your first question comes from David Bain with Roth Capital.

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David Brian Bain, Roth Capital Partners, LLC, Research Division - MD & Senior Research Analyst [2]

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Congratulations on the acquisitions, again, especially the way they're trending. I know you mentioned there were some short-term, low-cost measures with the acquisitions. Could you elaborate on what those are? And give us any sort of financial impact or return?

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Peter Hoetzinger, Century Casinos, Inc. - Vice Chairman, Co-CEO & President [3]

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Hello?

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David Brian Bain, Roth Capital Partners, LLC, Research Division - MD & Senior Research Analyst [4]

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Hello? Do you hear me?

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Erwin Haitzmann, Century Casinos, Inc. - Chairman & Co-CEO [5]

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I hear. This is Erwin.

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David Brian Bain, Roth Capital Partners, LLC, Research Division - MD & Senior Research Analyst [6]

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Okay, I'm sorry. Okay. I was just speaking to the...

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Erwin Haitzmann, Century Casinos, Inc. - Chairman & Co-CEO [7]

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Peter, okay.

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David Brian Bain, Roth Capital Partners, LLC, Research Division - MD & Senior Research Analyst [8]

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Or maybe Erwin, if you could help possibly on basically synergies as it relates to the Eldorado acquisition and if you can elaborate on any of these sort of short-term, low-cost measures that you mentioned in the press release and on the call to impact the properties.

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Erwin Haitzmann, Century Casinos, Inc. - Chairman & Co-CEO [9]

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Right. So one of the things we will do is that in Caruthersville and in Mountaineer, we intend to get some new slot machines. So we identified the lowest performing machines, and we intend to replace them with new ones. In that context, it is important to mention that in West Virginia, the West Virginia Lottery Commission pays for 50% of the slot machines -- slot machine purchase. We haven't identified exact numbers yet, but it will be one of the very obvious things to do.

Then in addition to that, we see already some pressures in marketing tweaks. As you know, Eldorado has been pretty more aggressive, I should say, in reducing marketing spend, and we would like to -- probably to loosen up slightly, not much but slightly and fine-tune in one of the other areas.

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David Brian Bain, Roth Capital Partners, LLC, Research Division - MD & Senior Research Analyst [10]

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Okay. And then looking forward at North America acquisitions, obviously, the field -- the opportunity field is growing, and you have a lot of dry powder, I would call it, particularly in tandem with a REIT partner. I guess, 2 questions, kind of your basic overall thoughts on today's market opportunities. And then the other one being, what's the optimal mix for Century in terms of being asset-light, so to speak, in terms of EBITDA generation or mix of properties that you own versus others that you have the landlord essentially? And if that's really just deal-specific? Or -- any sort of thoughts there? And then do you look at real estate monetization of existing properties? So that was kind of a multi-tier question.

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Erwin Haitzmann, Century Casinos, Inc. - Chairman & Co-CEO [11]

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Okay. In the -- let's do it the reverse. I respond in the reverse order if that's fine. And Peter, when you take on again, please let us know. We do not intend to monetize any of the existing real estate we have. We have no plans with regard to that.

Second question with regard to the optimal mix. As of today, we think that we should do it, let's say, opportunity-based. So it is not our intention to become -- to have everything financed with -- it's a combination of REIT and operating company. It may well be that we continue to outright purchase, but it will depend on where we are if and when an opportunity comes up that we think is attractive.

And third question, today's opportunities. We are monitoring what's out on the market there. But at this very moment, first of all, #1 priority is to focus on a smooth transition to begin with. And once we have that under the belt, then look more proactively again. But at the moment, there was nothing that was so appealing that we couldn't say no.

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Operator [12]

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Your next question comes from Brad Boyer with Stifel.

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Brad J. Boyer, Stifel, Nicolaus & Company, Incorporated, Research Division - Analyst [13]

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First question is kind of a 3-part question around Century Mile. Obviously, we're another quarter into the ramp there, revenues looking to be heading in the right direction. I guess could you give us a sense of how the revenues are ramping there and sort of how you're seeing that market evolve given that you guys have additional assets in the market? Are you shifting play around? Are you growing the market? Are you taking trips from competitors? Just some flavor around the revenue environment there.

And then secondarily, obviously, the margins were a bit weaker than what everyone was expecting. I guess the question now is how should we think about the margins ramping from here? And along those lines, are you guys still confident in sort of that, I think on the low end, we were talking about $10 million for a while there is sort of the run rate EBITDA number. But are you still comfortable with that number? And what gives you comfort in that number?

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Peter Hoetzinger, Century Casinos, Inc. - Vice Chairman, Co-CEO & President [14]

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Erwin?

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Erwin Haitzmann, Century Casinos, Inc. - Chairman & Co-CEO [15]

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Peter, would you like -- okay. We are -- as Peter said earlier, the revenue side is already very good, and we're happy with the way how it develops. On the cost side, we're intensely working on getting the costs down and it's pretty clear where we have to get costs down, and we implement it as fast as we thought possible, which should show an impact, if I say that, cautiously at the very latest in Q1 of 2020, if not in Q4 already.

With regard to the competitor, the overall market, we have, generally speaking, been able to perform better than the market for -- actually, I would say, for -- definitely for the 2 -- other Edmonton casinos that we have. So we are -- we think we have a good grip on the market and the strong relationship to our core and repetitive players. Specifically with regard to Century Mile, we see our main competitor is River Cree. They've been hit a little by our -- by the opening of our casino and now they are fighting back as well as they can. And we think that going forward, this will continue to be our main competitor. But there is no reason not to be confident, and what gives us confidence is, if you look at how we handled Century Downs where initially the first year it was a little bit choppy, but now, 4 years later, the numbers are so good that, as you know, we are expanding. So we have full confidence and trust in our operating and marketing capabilities.

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Brad J. Boyer, Stifel, Nicolaus & Company, Incorporated, Research Division - Analyst [16]

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Okay. That's helpful. And then just around the deals with Eldorado. I know in the past when you guys announced the deals, you were talking about the potential for some sort of minor CapEx items potentially. I know there's a hotel adjacent to Caruthersville, I think, we were talking about. Just curious if you have any updated thoughts there? And then, I don't know, Peter, if you could sort of give us just a flavor for modeling, sort of what you anticipate sort of CapEx looking like on the other side of the deals closing.

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Erwin Haitzmann, Century Casinos, Inc. - Chairman & Co-CEO [17]

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Peter, shall I start, and you come in with the second question? It seems that Peter may be gone again. Let me get started. First of all, initially, there is no deferred CapEx. So when we think of the properties, everything is in good order except as I said, on the low -- low end -- low performance slot machines, there is certainly opportunity.

Hello. Sorry for that. I don't know where that came in. But can you still hear me, Brad?

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Brad J. Boyer, Stifel, Nicolaus & Company, Incorporated, Research Division - Analyst [18]

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Yes, I can hear you.

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Erwin Haitzmann, Century Casinos, Inc. - Chairman & Co-CEO [19]

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Okay. Very good. Now with regard to the first more substantial CapEx measures, like as we mentioned, the hotel across the road in Caruthersville, we'll evaluate a little more. In our conversations with management, we certainly got the -- we came to the conclusion that this is not the #1 priority we need to focus on. There are other things that are more important than -- I think that probably it will be a year or 2 into us having taken over before we make any CapEx decisions of a larger kind. A little bit of replacement CapEx here and there, small measures, maybe putting a second line kitchen here or there, some operational efficiency improvements, but nothing large. Does that answer your question?

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Brad J. Boyer, Stifel, Nicolaus & Company, Incorporated, Research Division - Analyst [20]

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Yes, it does. That's very helpful. And then I guess, lastly, just around Bath. Could you just give us a little bit better sense of sort of what this strategic review entails? I would imagine, given some of the headwinds in the market, potentially finding a buyer could be pretty difficult in this environment. So I mean is there a scenario that you envision where you could potentially just kind of shut this down and walk away from it? Or how are you thinking about sort of the path forward there to the extent that the operations don't improve here?

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Erwin Haitzmann, Century Casinos, Inc. - Chairman & Co-CEO [21]

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All right. Yes, the answer is a clear yes. We can imagine everything, also just closing it down. Obviously, we cannot just close the doors. So we are now looking at the various avenues that we can go because, clearly, we intend to keep all our contractual obligations. But we're in the middle of checking that whilst at the same time we still try to -- have full efforts to try to see whether there is any kind of turnaround possible. But at the moment, everything -- I think I should say this, we anticipate that we will not have that pain in our income statement and balance sheet for an extended period of time.

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Operator [22]

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Your next question comes from Mike Malouf with Craig-Hallum.

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Michael Fawzy Malouf, Craig-Hallum Capital Group LLC, Research Division - Partner, Senior Research Analyst & Head of Boston Team [23]

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I just want to drill down a little bit more on the Century Mile. Obviously, on the cost side, running ahead of where we were expecting, and you sort of think that we can get some good traction, perhaps maybe even as early as this quarter, but most certainly in March quarter. Where are you taken as far as traction? I mean are we still trying to get to that sort of mid-20s EBITDA or 20% to 25% EBITDA in 2020? Or are you talking to try to get to that point at some time during the year, next year, and then it will be a slow ramp from here? Can you just give us a little bit of sense on timing? That would be helpful.

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Erwin Haitzmann, Century Casinos, Inc. - Chairman & Co-CEO [24]

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Yes, yes, I'd love to, but let me -- because as our ambition is certainly 2020, but at this point in time, I wouldn't want to promise it. We just have to dig into very heavily and then work hard on getting the cost side rise, while at the same time also ramping -- further ramping up our marketing approach. So I'd love to be able to say it, but let me just be cautious.

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Michael Fawzy Malouf, Craig-Hallum Capital Group LLC, Research Division - Partner, Senior Research Analyst & Head of Boston Team [25]

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Yes, yes. Okay. And how about seasonality? Can you give us a little -- some help on the seasonality? It was down sequentially in the September quarter. How does the fourth quarter typically look for that? Do you think -- or what are you expecting for that property seasonally and as we go in throughout the year?

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Erwin Haitzmann, Century Casinos, Inc. - Chairman & Co-CEO [26]

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Very, generally speaking, the -- all our properties are less seasonal than they might appear and that is even true for Colorado in spite of the strong differences between winter and summer, but what has to be said is in our properties in Canada as opposed to Colorado, nobody has to drive up a mountain. And clearly, people in Canada are used to drive it in inclement weather as well. So they have always turned out to be less of a problem. We -- I don't see -- we don't really expect any seasonality a whole lot. We rather look at the swings that may depend on how heavily our competitors are working on the marketing side. As Peter mentioned earlier, there are quarters when 1 or 2 of the competitors run a very big marketing campaign that may have an influence here and there. But we always look at the long term there.

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Operator [27]

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Your next question comes from John DeCree with Union Gaming.

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John G. DeCree, Union Gaming Securities, LLC, Research Division - Director and Head of North America Equity & High Yield Research [28]

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Just wanted to touch on Poland. I think we've covered U.S. and Canada. And now that Warsaw's ramping and the licensing process has been behind us for a while, I think before all that started, the margins in Poland were 14%, almost 15% and rebuilding nicely here. I was wondering if you could give us a little bit of color on if that's attainable again and what the time line might be to kind of get back to normal operating margins in Poland?

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Erwin Haitzmann, Century Casinos, Inc. - Chairman & Co-CEO [29]

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All right. As you said, the operations are -- it's wonderful to see how well they are coming back. And even the smaller ones. I mean let me remind all of us, we always get the questions, why do you keep the small casinos? That has to do with the whole licensing arithmetic. It is just advantageous to have the smaller casinos as well when we go into relicensing to say very generally. But I think we continue both the revenue and the EBITDA side very well. There is only one thing that we expect in 2020 that we have to raise the salaries a little bit across-the-board and that may slow us down in the ramping up again. But again, in general terms, we think we can come back to the EBITDA margins that we used to have.

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Operator [30]

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Your next question comes from [Kenneth Yovanovic] as investor.

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Unidentified Participant, [31]

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My question has to do with the losses at corporate and other. And I know you discussed that some of that was with Bath, England. Are there any other losses that are attributable to corporate and other because I noticed on the earnings statements that Corporate Other has been a bit of a drag on the overall picture for Century? And is there anything that can be done to eliminate -- further eliminate losses coming from that sector?

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Erwin Haitzmann, Century Casinos, Inc. - Chairman & Co-CEO [32]

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Yes, thanks for the question. I -- some of it has to do with the cost that we have in connection with the Eldorado acquisition. Peggy, would you like to go into more detail?

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Margaret Stapleton, Century Casinos, Inc. - Executive VP of Finance, Secretary, Principal Financial & Accounting Officer [33]

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So -- Sure. So most of the costs running through corporate and other or the losses running through corporate and other are related to the Bath -- to Bath. That is rolled up into that segment. And then, yes, of course, we have some additional expenses running through right now related to the acquisition.

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Unidentified Participant, [34]

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Okay. And do you anticipate the first full year of operation of the acquisitions from Eldorado? Given all things being equal, assuming that the results are the same as they were in 2019 for 2020, do you anticipate a positive earnings picture?

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Erwin Haitzmann, Century Casinos, Inc. - Chairman & Co-CEO [35]

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Just arising out of this -- of the newly acquired properties, you're asking?

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Unidentified Participant, [36]

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Yes.

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Erwin Haitzmann, Century Casinos, Inc. - Chairman & Co-CEO [37]

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And are you asking whether we think we do the same or more?

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Unidentified Participant, [38]

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Yes. So I'm saying, all things being equal, if things were no different in 2020 versus how they were for these casinos in 2019, would you anticipate a profitable operation for all 3?

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Erwin Haitzmann, Century Casinos, Inc. - Chairman & Co-CEO [39]

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Yes, definitely. Definitely.

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Peter Hoetzinger, Century Casinos, Inc. - Vice Chairman, Co-CEO & President [40]

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Yes, absolutely. [Kenneth], this is Peter. I'm back in. And what we say is that on a pro forma basis, we would expect for a full year, with the new acquired operations, we expect to generate about $415 million in revenue and $58 million in EBITDA.

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Operator [41]

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Your next question comes from Andrew Gordon with E.F. Gordon Capital.

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Andrew E.F. Gordon, E.F. Gordon, L.P. - Portfolio Manager [42]

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Just -- apologize if I missed this. I'm in transit, so I may not have heard you touch on this, but the $58 million trailing 12-month adjusted EBITDA on consolidated basis, does that attribute -- how much does that attribute to the Eldorado acquired properties?

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Erwin Haitzmann, Century Casinos, Inc. - Chairman & Co-CEO [43]

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That's the full year with all 3 properties, and it is approximately half-half. Is that right, Peggy?

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Andrew E.F. Gordon, E.F. Gordon, L.P. - Portfolio Manager [44]

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So Eldorado will be $29 million then?

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Erwin Haitzmann, Century Casinos, Inc. - Chairman & Co-CEO [45]

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29% or 30%, I believe, right?

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Andrew E.F. Gordon, E.F. Gordon, L.P. - Portfolio Manager [46]

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Got it. So next question, I'll make it quick. I just want to get a little clarity on what the realistic net leverage number should be on a pro forma basis? Consensus numbers for 2020 EBITDA were, I think, around $41 million for 2020, and coming into this call. And you're now attributing around $30 million to the newly acquired properties. So let's say it's roughly $70 million on the slightly outdated estimates. The net leverage, I believe, is supposed to be around maybe a little over $100 million. So on a looking-forward basis, I think your pro forma net leverage should be maybe 1.5x or better. And I just wanted to clarify and make sure that you guys agree with that because at least one of your analysts, I believe, has been looking on a trailing basis and attributing 3x net leverage, and I just thought that we could all benefit from a little clarity.

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Erwin Haitzmann, Century Casinos, Inc. - Chairman & Co-CEO [47]

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Net debt on a pro forma basis will be closer to 130, 1-3-0. And the EBITDA number that you mentioned could perhaps be a little bit aggressive because as we now know Century Mile is ramping up a bit slower than expected. Those would be my 2 comments to your calculation.

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Operator [48]

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(Operator Instructions) Your next question comes from [Patrick Arnaud with Energy Management].

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Unidentified Analyst, [49]

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First, I'd like to say congratulations on your acquisitions. Our question was more along the lines with your participation with the REIT and what you might -- when or what might be the disposition of the excess acreage in West Virginia.

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Peter Hoetzinger, Century Casinos, Inc. - Vice Chairman, Co-CEO & President [50]

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Yes. Erwin, do you have any color on that? We -- as you know, Patrick, we do not own the land. That is owned -- will be owned by VICI. And so maybe that's a question that's -- but -- so we have no plans in regards to that.

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Unidentified Analyst, [51]

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The follow-up to that was, obviously, you guys are coming into the emergence of the Marcellus and the energy gas sector here, did you have any kind of unique marketing plans or thoughts at trying to encourage them to come to your facility at Mountaineer? What I'm looking at here is Austintown north of you has created kind of a niche for those guys as well based off of the large cracker plant that's going into Monaca about 24 miles north. Have you guys looked at that at all or thought of it?

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Erwin Haitzmann, Century Casinos, Inc. - Chairman & Co-CEO [52]

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Yes, definitely. Go ahead, Peter, sorry.

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Peter Hoetzinger, Century Casinos, Inc. - Vice Chairman, Co-CEO & President [53]

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So I was just saying that, yes, we -- that's obviously part of our marketing trends and we are formulating those plans. But Erwin, please go ahead.

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Erwin Haitzmann, Century Casinos, Inc. - Chairman & Co-CEO [54]

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No, I just wanted to say the same where we're excited that this is happening and then most definitely we will target at those new customers.

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Operator [55]

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There are no further questions at this time. I will now turn the call back over to the presenters.

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Peter Hoetzinger, Century Casinos, Inc. - Vice Chairman, Co-CEO & President [56]

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Thanks, everyone, for your interest in Century Casinos and your participation in the call. For a recording of the call, please visit the financial section of our website at cnty.com. Thank you, and goodbye.

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Operator [57]

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Ladies and gentlemen, this concludes today's conference call. Thank you for participating. You may now disconnect.