Century Casinos Inc (NASDAQ:CNTY) Q3 2019 Earnings Conference Call Transcript
Nov 04, 2019 • 10:00 am ET
Welcome to Century Casinos Q3 2019 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. Peter Hoetzinger. Mr. Hoetzinger, you may begin.
Good morning everyone and thank you for joining our earnings call. With me on the call are my Co-CEO and Chairman of Century Casinos, Erwin Haitzmann as well as our Chief Financial Officer, Margaret Stapleton.
Before we begin, we'd like to remind you that we will be discussing forward-looking information, which involves a number of risks and uncertainties that may cause actual results to differ materially from our forward-looking statements. The company undertakes no obligation to update or revise the forward-looking statements whether as a result of new information, future events or otherwise. We provide a detailed discussion of the various risk factors in our SEC filings and encourage you to review these filings.
In addition, throughout our call, we refer to several non-GAAP financial measures, including but not limited to adjusted EBITDA. Reconciliations of our non-GAAP performance and liquidity measures to the appropriate GAAP measures can be found in our news release and SEC filing available in the Investors section of our website at cnty.com.
I'll now provide a brief review of the company's financial results for the third quarter 2019 and following the prepared remarks, there will be a Q&A session.
Results of the existing properties were mixed. The Canadian segment was up, thanks to the newly opened Century Mile Racetrack and Casino. The US Colorado segment was down slightly, while Poland was up significantly. Overall, net operating revenue was up 22%, adjusted EBITDA was up 12%.
In Canada, all our three casinos in the Edmonton market showed good growth. Century Casino & Hotel Edmonton and the Century Casinos in St. Albert grew revenues by 1% and 3% and adjusted EBITDA by 1% and 12% respectively. Century Mile Racetrack and Casino in South Edmonton generated solid revenue, but the expense side of the business, the bottom line is still work in progress. That's not unusual for a newly opened casino, it takes about a year until the property reaches its full potential and Century Mile is well on its way. Operations continue to ramp up and we are pleased with the revenue generated at the property. We continue to analyze the cost structure, the staffing levels and efficiencies of Century Mile to achieve the margins we expect.
In Calgary, our two properties, Century Downs and Century Casino generated even better revenue growth, namely 6% and 3% respectively. Adjusted EBITDA was up at Century Casino and slightly down at Century Downs, due to one-time expenses associated with a high profile track record racing event that was held in August and some construction related margin disruption. We are very excited about the upcoming opening of the expansion of Century Downs. It will increase the gaming floor by about 20% and will open