Century Casinos (CNTY) 7 Aug 202020 Q2 Earnings call transcript

Welcome to the Century Casinos Q2 2020 Earnings Conference call. This call will be recorded. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session. I would like to introduce our host for today's call, Mr. Hoetzinger. Peter Mr. begin. may you Hoetzinger,

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

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

section to the measures the After call, there but and of our liquidity throughout SEC not addition, in be appropriate our earnings to, found we'll our adjusted cnty.com. limited and available including, release In company's non-GAAP will Reconciliations and review to a quo I results measures overview of of provide XXXX. Investors our GAAP the status website in EBITDA. the financial refer question-and-answer session. financial the will can second measures performance the non-GAAP filings quarter now for at an be that, several

all salaries on took reduce We members, immediate Following our shutdown. furloughed to and the be local costs to employment approximately through paid flexibility except we reduced preserved laid to of based throughout of expenses temporarily steps to our manage mid-March, closure reduced the for company where ensure Poland financial continued company, team its temporary in properties and laws. employees off operating XX% that the

work day benefits Peggy I emerged, agreed pay one and Canadian to from US reopening of of When voluntary extra to senior scenarios by their matter management thank hard pay many and our to including the guests. especially employees for social safety health executive part of our and the Erwin, which and all of and atmosphere safety, friendliness safety their employees, distancing, first guests. focus time our appreciated of and with feeling comfort all much has created enthusiasm properties continued regarding competence, members an been new cuts. reopened is team employees, just We and sanitation, get our procedures, to days, a has in dealing very and and our

upon progress We in last efficiencies have and from used build the the controlling expenses started the of G&A. we staffing marketing, acquisition year, improve to when have we Eldorado, time realizing closures closed and properties during the to on three

strong and maintaining over. stay sure are in crisis business, in. disciplined this throughout is while margin on higher start a to our we to back efficient, We approach We off focused a to is creep us, intend place we and the on the business make focus more unnecessary behind avoiding after keep costs fully not very practices pandemic a efficient

we're of are to year. compared travelers. the same larger results the softer in Poland Europe, well, May little tourists Overall, a last a the in draw actually smaller around than locals, we Warsaw city The the the capital on from business cities in very first in down time of which of be But and doing XX% The were because about reopened mostly casinos during year. are of two lack casinos XX. ones better the the last casinos country,

As about cash you total XX% our of is know, contributes positive. operation Most consolidated EBITDA. importantly, the already Poland however, flow

our the was Missouri’s Missouri EBITDA and flow last properties than almost reopening success management generation, revenues and The of of are with though XX% were EBITDA, and a and of tremendous on June market open an be month about property. on Caruthersville of on competition June, game important up to caruthersville G cash in adjusted up continues significantly Cape success from half what in share for we and line and in most and is XX% EBITDA, team. table up than X X. limited Illinois, breaking. operation, Cape still with record the and record more doubled Next though and stronger In was from the up have about was results competition revenues is. the absolute July, positions that huge only Illinois with slots year. terms up running adjusted results XX%. doubled over are by of achievement XX% a X% Even

to turned So around the building. this Approximately Then quickly was compared cash also the XX% of us. long year. X% compared our EBITDA is flow X, adjusted down Mountaineer we revenue year, to in market to last little forming up and hotel it West due on was that are goes mostly introduced ban temporary In positive smoking July Virginia. huge rooms and of Virginia the lines June, and for June without softer June gaming a resort to very crowds newly positions has our last reopened saying open. up in half

producing in results Also two last games XX% partners has in already. remain with started by and sports between Creek adjusted years. right is allowed June, XXX XX% been only only the in have reopened producing EBITDA to online Casinos lets and property racing in a should Canada remarkable. of our a two April. over June, even Cripple have and Live available racing across to the of current our to great, to casinos been XXX to days couple we almost table racetrack In for XX% EBITDA offering XX are is already, in Even but of July the bidding a two in of introduce Edmonton in Circa of which EBITDA to Canadian July, increase in Fortunately, truly properties July though the slots properties July Revenue impact was for its we middle operation available without recorded for year. share new Adjusted to flocks last were live machines. in been June some handle. Slim resumed revenue number wagering compared EBITDA over year. games, That flow. Central particularly open Sports, Swiss about away. the at In combined with spectators up Calgary. And one closed, last only July, of positive our increase course, gaming properties month, and we operation, July adjusted our or for machines, Racetrack year-over-year, we has slot adjusted its XXX. highest all us In pay our barriers year. XX% week, with at in and Cripple And revenue could Mile of the us all and slot we City. the are last the the cash had positive The doubled than from Creek thirds half has Casino. higher June strong EBITDA slots down produced middle June Table less and and slots better. reopened horse compared Colorado and record Century of almost of in of allowed Plexiglass

is flow happy already. Canada So that our to I'm report cash positive segment also

Now, let's of we the revenue what manage strong behind discuss and the look side the businesses. performances drives and expense how our

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years. Macquarie As one about as from million. of sale of at properties XX, strong cash, smaller Calgary, our you operation US$XXX,XXX casino recent of $XX year, operation operation, had have $XXX million And year from casino our and buyer a As Last the few June income Canadian news $XXX,XXX. in of zero. selling continue which year seen with get for approximately was revenue around approximately next our annual paid debt casino we rent the generated over get US$X revolver this net. top in actual estate, of we real Century of threshold Last release, percentage to million to down is the the that, was their net On the million we we cash own the we we announced we in only for EBITDA.\ certain week, just $XX flow US$XXX,XXX adjusted are per a the

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go enthusiasm behalf stockholders with manage our and that, we thank our board, management company's times. for attention. businesses your as for these team their thank like can of I'd please. our members, now session. So the challenging Operator, question-and-answer continued on our And and we and loyalty guests start I you the through to ahead

question first from is Macquarie. Our Beynon Chad with Instructions] [Operator

is line open. Your

iGaming Thanks. Good think seeing on is opportunity Bender your is Hope how betting What we morning. is about for all with markets sports and with with product? And This you legalized your should Jordan the in retail well. Chad. betting? sports

our for licenses betting sports Colorado have properties. we Jordan,

two app as and Virginia, agreement we other interest and recently speak. one And later. legalized. just Sports, sports with betting agreements, of XXX deal and their handful more the Bet have In have we launch a one negotiating launched West from entered that providers have with license We we're we iGaming markets and in into which Circa already they another available will

a with and strong have iGaming. But working soon, they've Hill, we legalized we end there's with Missouri. We think with are the to this William get before Hill not partnering sports us in live forward also indication we will both I - year, And Missouri, William that go yet. legalized it betting told look that in has of and been and it

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are with think happy we I portfolio No, there. our

strong Calgary, significant I one change today. and Edmonton, We spots. up very in in there, locations don't two racinos performing casinos strong very good any have see the in of as in other one And are

do any on the positive possibly Max that around limit were And the update if ballot the the you company Okay. get coming do Obviously, something guys that that November? one mean, have can what the Colorado us here I for could for more if I here. on up be past, business? would Can here. thoughts bet that's you

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I said. you No, what exactly think it's

guys. it Okay. will off. I Thank you, pass

Jordan. Thanks,

question Your Stifel. from next with Boyer [Operator Brad is Instructions]

Your is line open.

July for moving thinking right all presented. Obviously, sort on Hey. lot guys. about question forward of there's the first is the context a the in know, around a Good very Thanks metrics those My How quarter, basis? of additional preliminary of morning, you parts now. the you guys are just you go numbers that color helpful.

You know, favorable at efficiencies, same getting some but capacity. you're - revenue and operating and side, you're the on the benefit the some with of mix limited then obviously time, flip operating

producing of you the that? you numbers a months performance like you sustainable, online? those can how sort business Do know, margin the you expect that down some do of think more know, that little you around road. Just of is are comes back color about, as margins today So, you're a look thinking what compress the you provide any might to couple

Yeah.

will relatively are. margins think competitors And not most think months, the then as term, significant change operating for don't COVID currently situation like better with regard our high I conservative and add see to short gets one the and two assuming some my see the also to see will That's or and the environment, any to regard stays we next if somebody us they out or we other margins, other quiet Erwin, the on likely amenities. higher likely that on have be open absolute other but will if will side, lower that? would amenities see campaigning, like as take one first to that revenue mean most as it. overall everybody starts which with the promotional at some probably everybody as I of operating the and And is watching each you to will aggressive moment. jumps But you these revenue grow. don't

and agree to would with add. I I Yeah, like what you said

that make our to can floor. in with take received the a example, bit have floor regard approval of runway We have we one part you measures To of on give smoking Virginia West we to again. little

all as will slot in total open the XXX a area. we across today, more And So machines, At will on that we working have are help. that machines of getting still is in same smoking something time, slot Canada.

to being get So in of higher operation. from actually hopefully percentage XX% a slots

also we So term. still on the room is the think to revenue side, some there in shorter grow

respect an Europe. kind of of you provided good things know, being you a to to just may Could months Okay, sort know, have give closer know, in where obviously, and helpful. of some us then, what I Peter that getting on little a of would Poland. you “normal” stand sort very the you know, update with in just, different that's guess, guys market. business the I perspective bit last know recovery and be COVID to back you Poland know, you couple over And you all little pacing I you bit

getting of Just you any on into how you and color Warsaw, track of know, that around know, sort maybe, back sort plays that here?

of vacation back. And the us. go that as of Poland for time of in and some started obviously are September a are hotels ports was away now. and gone full in travel to high because - the now, tourism go period Most mid it tourism But many come we we months, July, is week-by-week slower getting summer isn't occupancy always to has in as business August, like getting yet. But better, helps swing are restrictions

you you one, update US portfolio the some could there last your of are sort know, an this for, obviously, shopped appetite then mean, know, as little you where growing at of being And to are Okay. bit you that, give the I you a point. us at just, publicly based know, assets know, stands moment.

around at continue know, thoughts the any your Just of, you this desire to point? to kind grow portfolio

Yes, are good ourselves very that are the us. it you've of year very, to position is we can look as look right for make towards move our to position watching And at a this get try the we and right where an position if opportunity very see seriously, trying next. to possibly at and closely we into seen, to end liquidity and

something So at. are that's looking that certainly we

Perfect. Peter. Thanks,

moderator We questions. I have no concluding turn to remarks. call for further the back

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

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

health. best for and our good wishes Thanks You goodbye. have again,

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