C
entury Casinos announced Friday its financial results for the three and nine months ended September 30, 2020.
Net operating revenue during the third quarter was $95.7 million, an increase of 81% compared to $52.9 million for the same period of 2019. Earnings from operations were $15.0 million, soaring 331% year-over-year. Adjusted EBITDA was $22.2 million, a year-over-year increase of 213%.
The company said its third quarter 2020 results were significantly impacted by the acquisition of Mountaineer Casino, Racetrack & Resort; Century Casino Cape Girardeau; and Century Casino Caruthersville in December 2019.
After pandemic-caused closures, Century’s Polish locations reopened on May 18, 2020 and its North American operations reopened between June 1, 2020 and June 17, 2020. Although the company’s results of operations and cash flow “improved significantly” in the third quarter of 2020, the COVID-19 pandemic has had an adverse effect on the its results of operations and financial condition for the nine months ended September 30, 2020, and the company expects this situation will continue to have an adverse impact on its results for the remainder of 2020 and perhaps into 2021.
“Following the reopening of our casinos in June 2020, our results of operations and cash flow improved significantly in the third quarter of 2020. We are very pleased to report all-time records in quarterly net operating revenue and Adjusted EBITDA driven by our recent acquisition of the Eldorado properties. The record results confirm the transformational nature the acquisition has had on the Company, with 79% of our Adjusted EBITDA coming from operations in the United States,” Erwin Haitzmann and Peter Hoetzinger, Co-Chief Executive Officers of Century Casinos remarked.
“In the third quarter, we also continued to focus on streamlining our cost structure and were able to achieve additional operational efficiencies, resulting in significant operating margin expansion,” Haitzmann and Hoetzinger added.
The company said its casinos have varied their operations based on the governmental health and safety requirements in the jurisdictions in which they are located. In Colorado, each city has different gaming floor restrictions. In Cripple Creek, the full slot floor is open but table games are expected to remain closed through 2020. In Central City, the casino is currently operating approximately 65% of the slot machines and table games are reopened, with the exception of craps and roulette which closed in October 2020. For both Colorado cities, there are capacity restrictions within the casinos and alcohol sales must stop at midnight but the casinos are able to operate 24/7.
In Missouri, the full gaming floor is open, hours of operation are reduced, and food outlets that have reopened have limited operating hours. In West Virginia, the majority of the gaming floor has reopened, the gaming floor is limited to machines that are six feet apart or with barriers, food and beverage outlets have reopened with limited hours of operation, the convention space remains closed and is anticipated to remain closed through 2020, hours of operation are limited to 10:00 a.m. to 2:00 a.m., there are capacity restrictions within the casino, and the hotel is operating with limited rooms available.
In Canada, the gaming floors are currently operating approximately 60% of the total gaming machines, hours of operation are limited to 9:30 a.m. to 3:00 a.m., there are restrictions on spectators at the racetracks, and the hotel and showroom in Edmonton remain closed. In Poland, the gaming floors are fully reopened, alcohol sales are currently suspended and there are capacity restrictions within the casinos.