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Century Casinos (CNTY) Lags Q1 Earnings & Revenues Estimates

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Century Casinos, Inc. (CNTY - Free Report) reported first-quarter 2020 results, with earnings and revenues missing the Zacks Consensus Estimate. Earnings lagged the consensus estimate for the sixth straight quarter.

Results in the quarter were impacted by the coronavirus pandemic. The company closed all of its casinos, hotels and other facilities between Mar 14 and Mar 17. 

The company reported adjusted loss per share of $1.55, which was wider than the Zacks Consensus Estimate of a loss of 5 cents. In the prior-year quarter, the company had reported adjusted earnings per share of 4 cents. 

Revenues in the first quarter totaled $87.7 million, which missed the consensus mark of $95 million. However, revenues surged 92% year over year primarily owing to the acquisition of Mountaineer Casino, Racetrack & Resort, Century Casino Cape Girardeau and Century Casino Caruthersville (the "Acquired Casinos") in December 2019.

Century Casinos, Inc. Price, Consensus and EPS Surprise

 

 

Segments Discussion

Century Casinos reports operating results under four segments — Canada, United States, Poland and Corporate and Other.

United States: Revenues in this segment increased 562% to $53.4 million. However, the segment’s adjusted EBITDA came in at $8.8 million compared with $1.9 million in the prior-year quarter.

Canada: Revenues in this segment amounted to $16.2 million, down 1% from the prior-year quarter’s level. Also, adjusted EBITDA declined 40% to $3 million.

Poland: Revenues in the segment fell 14% year over year to $17.1 million driven by robust business volumes and demand for casino gaming. Moreover, adjusted EBITDA declined 57% to $1.1 million.

Corporate and Other: Revenues in this segment declined 35% to nearly $0.98 million. However, adjusted EBITDA came in at a loss of $3.2 million compared with a loss of $2.7 million in the year-ago quarter.

Other Financial Details

Cash and cash equivalents at the end of the first quarter declined to $63.7 million compared with $54.8 million at the end of Dec 31, 2019. Outstanding debt as of Mar 31 increased to $194 million from $179 million at the end of Dec 31, 2019.

Century Casinos, which shares space with Boyd Gaming Corporation (BYD - Free Report) , Caesars Entertainment Corporation (CZR - Free Report) and Penn National Gaming, Inc. (PENN - Free Report) has a Zacks Rank #4 (Sell). 

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