Century Casinos (CNTY) Q3 2024 earnings summary

Executive summary

• Net operating revenue for Q3 2024 was $155.7 million, down 3% year-over-year, with nine-month revenue up 7.8% to $438.1 million.

• Adjusted EBITDAR for Q3 2024 was $32.9 million, down 1% year-over-year; net loss attributable to shareholders improved to $(8.1) million.

• Major projects completed include the opening of new land-based casino and hotel in Caruthersville, Missouri, and The Riverview hotel in Cape Girardeau.

• Management owns 15% of shares, operates 17 properties across the US, Canada, and Europe, and has a track record in 100+ casinos in 20+ countries.

• The company faces macroeconomic headwinds, including inflation, interest rates, and foreign exchange volatility.

Financial highlights

• Q3 2024 net operating revenue was $155.7 million, down 3% year-over-year; Adjusted EBITDAR was $32.9 million, down 1%.

• Net loss per share for Q3 2024 was $0.26, improved from $0.47 in Q3 2023.

• Cash and cash equivalents at September 30, 2024, were $118.8 million; net debt was $220.9 million.

• Adjusted EBITDAR margin for Q3 2024 was 21.1%, up from 20.7% in Q3 2023.

• Interest expense for the nine months rose to $77.4 million, driven by higher rates and expanded Master Lease obligations.

Outlook and guidance

• 2025 guidance anticipates significant improvement, with most EBITDA growth in the second half as new properties ramp up.

• CapEx to decrease from $38 million in 2024 to $16 million in 2025, boosting free cash flow.

• Management expects the new Caruthersville casino and hotel to expand the customer base into Arkansas and north Memphis.

• Expects positive net cash generation in 2025 after project completions and reduced capex.

• The company may seek additional capital through debt or equity if needed for liquidity or growth.