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CENTURY CASINOS INC /CO/ (CNTY)·Q4 2024 Earnings Summary

Executive Summary

  • Q4 2024 net operating revenue was $137.8M, down 4% year over year; Adjusted EBITDAR was $21.1M, down 17%, and basic EPS was a loss of $2.11 driven by a $43.7M goodwill impairment at the Nugget Casino Resort and higher interest expense .
  • Caruthersville’s new land-based casino and hotel (opened Nov 1) is ramping above plan; in the first four months revenue rose 27% and EBITDAR rose 32%, with strong monthly gains across November–March and expanded catchment area .
  • Management withdrew formal guidance amid volatile consumer sentiment and low-end wallet softness, but projects significant improvements in EBITDAR and cash flow in 2025 as capex rolls off; term loan repricing/refi is a priority (SOFR+600) .
  • Investor tone on the call was frustrated; one shareholder highlighted the stock trading below $2 intraday, pressing for portfolio focus on U.S. and leadership changes, while management reiterated alignment (≈15% insider ownership) and active portfolio review (Poland divestiture; Canada under consideration) .

What Went Well and What Went Wrong

What Went Well

  • Caruthersville ramp: revenue and EBITDAR up 27% and 32% in the first four months; monthly metrics include Nov (+47% rev, +64% EBITDA), Dec (+23%, +32%), Jan (+27%, +29%), Feb (+12%, +12%), March-to-date >20% rev; expanded draw from >70 miles .
  • Missouri portfolio strength: Cape Girardeau revenue +11% and EBITDA +7% in Q4, with hotel-led expansion to out-of-state patrons and improved F&B sales; February produced the highest revenue in the history of the two Missouri properties .
  • Nugget operational discipline: despite gaming revenue down 10% (low slot hold), property EBITDAR rose 46% YoY; cost reductions (staff/overtime, lower comps), slot changes driving double-digit EBITDA growth in Jan–Feb .

What Went Wrong

  • Low-end customer weakness: persistent softness in unrated/retail customers across markets pressured volumes and spend; mid/upper tiers modestly positive but insufficient to offset .
  • Impairment and interest burden: $43.7M goodwill impairment at the Nugget drove operating loss; net interest expense was $25.4M in Q4, with higher Master Lease financing costs .
  • Poland and Canada headwinds: Poland segment faced license losses and reopening delays (Wroclaw ramp slower; Kraków license not renewed; ~$1M closing costs in Q4), and Canada saw 7% revenue decline with FX headwinds; Alberta device procurement restrictions expected minimal impact (≤1%) but represent uncertainty .

Financial Results

MetricQ4 2023Q3 2024Q4 2024
Net Operating Revenue ($USD Millions)$143.8 $155.7 $137.8
(Loss) Earnings from Operations ($USD Millions)$12.6 $17.9 $(36.2)
Net Loss Attributable to Shareholders ($USD Millions)$(10.8) $(8.1) $(64.9)
Basic EPS ($USD)$(0.36) $(0.26) $(2.11)
Non-operating (Expense) Income, net ($USD Millions)$(25.0) $(25.0) $(25.1)
Net Earnings (Loss) Margin (Consolidated)(8%) (5%) (47%)
Adjusted EBITDAR ($USD Millions)$25.4 $32.9 $21.1
Adjusted EBITDAR Margin (Consolidated)18% 21% 15%

Segment Net Operating Revenue ($USD Thousands):

SegmentQ4 2023Q4 2024Change ($)Change (%)
United States$102,957 $99,981 $(2,976) (3%)
Canada$19,187 $17,894 $(1,293) (7%)
Poland$21,616 $19,870 $(1,746) (8%)
Corporate & Other$0 $21 $21 100%
Consolidated$143,760 $137,766 $(5,994) (4%)

Segment Adjusted EBITDAR ($USD Thousands):

SegmentQ4 2023Q4 2024Change ($)Change (%)
United States$22,109 $20,436 $(1,673) (8%)
Canada$5,617 $4,681 $(936) (17%)
Poland$952 $(603) $(1,555) (163%)
Corporate & Other$(3,320) $(3,436) $(116) (3%)
Consolidated$25,358 $21,078 $(4,280) (17%)

Balance Sheet and Cash Flow Indicators:

KPIQ4 2023Q4 2024
Cash & Cash Equivalents ($USD Millions)$171.3 $98.8
Outstanding Debt ($USD Millions)$346.8 $339.6
Shareholders’ Equity ($USD Millions)$121.4 $(9.3)
Long-term Financing Obligation (Master Lease) ($USD Millions)$657.4 (Q3) $701.0 (FY)
Net Debt-to-EBITDA (Traditional)—5.5x
Net Debt-to-EBITDA (Lease-Adjusted)—6.9x
Interest Expense (Income), net ($USD Millions, Q4)$24.7 $25.4

Caruthersville Ramp KPIs (Post-Opening):

MonthRevenue YoYEBITDA YoY
November+47% +64%
December+23% +32%
January+27% +29%
February+12% +12%
March-to-date>+20% revenue —

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
RevenueFY 2024$602M (projected, Q2 call) No formal guidance; results reported at $575.9M Withdrawn
Adjusted EBITDARFY 2024$105–$115M (projected, Q2 call) No formal guidance; results reported at $102.7M Withdrawn
RevenueFY 2025$650–$675M (projected, Q2 call) No formal guidance; management projects improvement vs 2024 Withdrawn/pushed out
Adjusted EBITDARFY 2025$150–$160M (projected, Q2 call) No formal guidance; management projects improvement vs 2024 Withdrawn/pushed out
Caruthersville Incremental EBITDA after Rent12‑month run-rate$3–$4M target (prior) Timing shifted to summer ’25–summer ’26 run-rate Deferred timeline
CapexFY 2025—Growth capex ~$4M; maintenance capex ~$14M New disclosure
Sports BettingMissouri launch timing—Targeting end of 2025; third-party partnerships with minimum guarantees New disclosure

Earnings Call Themes & Trends

TopicPrevious Mentions (Q2 2024)Previous Mentions (Q3 2024)Current Period (Q4 2024)Trend
Consumer wallet softness (low-end)Retail/unrated down ~10%; expect improvement with rates declining Revenue pressures persist; improving comps ahead Continued weakness at low-end; mid/upper tiers stable Persistent headwind
Caruthersville projectOpening planned mid-November; ~660 gaming positions; strong uplift expected Opened Nov 1; 599 slots, 9 tables; hotel rooms doubled Ramp above expectations; broad geographic draw Positive momentum
Nugget turnaroundLeadership changes; slot/hotel refresh; optimism for 2025 Ongoing stabilization 46% EBITDAR YoY growth; double-digit Jan–Feb EBITDA Improving
Poland portfolio actionDivestiture process active; reopening Wroclaw Wroclaw reopened; Kraków/Warsaw licenses not renewed Reopened Wroclaw; sales process hindered by minority stake; closing costs Mixed/uncertain
Capital allocation & leveragePath to delever; potential buybacks as capex declines Cash down with capex; long-term obligations Focus on refi/reprice term loan (SOFR+600), cautious buybacks Delever/refi focus
Sports betting/iGamingConsidering white-label/third-party options —MO: third-party deals; AB: iGaming timing uncertain Incremental EBITDAR potential
Guidance postureExplicit 2024/2025 revenue and EBITDAR targets —Removed guidance due to volatility More conservative

Management Commentary

  • “On a consolidated basis, our fourth quarter revenue was $137.8 million, down 4%… Adjusted EBITDAR was $21.1 million, down 17%… retail and low-end customers still being weak… mid- and upper tiers performing quite well” .
  • “Successful opening of the land-based facility in Caruthersville… in the 4 months since opening, revenue and EBITDAR are up 27% and 32%… customer visits increased by 20% from all mileage ranges… strongest growth from the higher end of the database” .
  • “Gaming revenue [at Nugget] was down 10%… we reduced total expenses by 12%… EBITDAR increased by 46% year-over-year… double-digit EBITDA growth in January and February” .
  • “Company’s cash and cash equivalents at the end of the fourth quarter were $99 million… total principal amount of debt outstanding was $340 million… net debt-to-EBITDA ratio was 5.5x; 6.9x lease-adjusted… no debt maturities until 2029” .
  • “First and foremost, we would like to try to refi or reprice our term loan because SOFR plus 600 is not funny… paying down some of it would be helpful… opportunistically, we can look at the stock as well” .
  • “We project significant EBITDAR and cash flow improvements in 2025… we do not anticipate any new significant competitive supply impacting us this year or next” .

Q&A Highlights

  • Estimates and leverage: Analyst suggested estimates likely need to come down; management attributed weaker outlook primarily to low-end consumer softness, especially at Rocky Gap, Mountaineer, and Central City .
  • Nugget trajectory: Conference and events pipeline improving for 2026+, near-term focus on smaller events and local customers; decline in casino revenue tied to hotel revenue softness .
  • Alberta procurement restriction: Expected impact ≤0.5–1% and not meaningful; Canada operations increasingly non-core and could be considered for divestiture .
  • Caruthersville rent deferral: Clarified rent deferral terms under VICI Master Lease remained consistent (no change vs prior) .
  • Capital allocation: Priority to refi/reprice SOFR+600 term loan; cautious stance on buybacks given macro volatility .
  • Shareholder sentiment: Investor highlighted sub-$2 share price and called for U.S. asset focus; management reiterated alignment (≈15% ownership) and active divestiture of Poland; Canada under consideration .

Estimates Context

  • S&P Global Wall Street consensus estimates were unavailable at time of query; no verified consensus for Q4 2024 to compare against reported results. Analyst commentary on the call implied that Street estimates may need to be revised lower due to ongoing low-end consumer weakness .

Key Takeaways for Investors

  • The quarter’s headline miss was driven by a non-cash $43.7M goodwill impairment at the Nugget and elevated interest expense; underlying operations showed selective strength (Missouri, mid/upper tiers) and cost control at Nugget .
  • Caruthersville is a tangible growth driver with above-plan ramp and expanded geographic draw; expect additional EBITDAR contribution as operational efficiencies normalize over the next 2–3 quarters .
  • Guidance removal reflects genuine volatility in low-end demand; near-term stock reaction may hinge on evidence of stabilization in unrated play and incremental contributions from Missouri and Nugget slot changes .
  • Balance sheet: negative shareholders’ equity and high lease-adjusted leverage underscore the importance of term loan repricing/refi; monitoring interest costs and Master Lease dynamics is critical for equity value .
  • Portfolio actions are a potential catalyst: ongoing Poland divestiture and possible Canada exit could simplify the story and improve capital allocation; watch for transaction updates .
  • Sports betting partnerships (third-party, minimum guarantees) in Missouri can add high-margin EBITDAR later in 2025; terms and timing will be incremental to the thesis .
  • Investor sentiment is fragile; management alignment (~15% ownership) and execution on refi, portfolio streamlining, and Missouri growth are key to multiple re-rating .

Appendix: Additional Data Points

  • Consolidated Q4 2024 operating costs and expenses: $173.9M; non-operating (expense) net: $(25.1)M; income tax expense: $(2.4)M .
  • Cash rent payments (Q4 2024): Master Lease $14.0M; Nugget Lease $1.9M .
  • Segment margins (Q4 2024): U.S. Adjusted EBITDAR margin 20%; Canada 26%; Poland (3%); Consolidated 15% .
  • 2024 full-year revenue $575.9M (+5% YoY); Adjusted EBITDAR $102.7M (–10% YoY) .

Sources: CNTY Q4 2024 8-K and press release ; Q4 2024 earnings call transcript ; Q3 2024 8-K/press release ; Caruthersville opening press release .