Century Casinos Inc (NASDAQ:CNTY) Q1 2020 Earnings Conference Call - Final Transcript
May 20, 2020 • 12:00 pm ET
Welcome to the Century Casinos Q1 2020 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.
Thank you, Ron. Good morning everyone and thank you for joining our earnings call. With me on the call are my Co-CEO and the Chairman of Century Casinos, Erwin Haitzmann, as well as, our Chief Financial Officer, Margaret Stapleton. We hope all of you, your friends and families are safe and in good health during these challenging times of the COVID-19 pandemic.
As always, before we begin, we would 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'll 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 earnings release and SEC filings available in the Investors section of our website at cnty.com.
I'll now provide an overview of the company's status quo in light of the current crisis and then briefly review the financial results for the first quarter 2020. Following the prepared remarks, there will be a question-and-answer session.
As with almost all casino companies, we closed our operations between March 14 and March 17 to comply with quarantines issued by governments to contain the spread of COVID-19. All of the closures are temporary, with the exception of the Casino in Bath, U.K. which remains permanently closed. In December of last year, we were in sale negotiations for the Bath Casino. However, in March, not surprisingly, the potential buyer terminated the negotiations. Due to the canceled sale and the negative outlook, we determined that the best course of action would be to voluntarily wind up the Bath Casino Company. We signed a voluntary liquidation resolution last week and with that, no more losses from Bath will impact our results.
In addition, after conservative analysis, it was determined that the goodwill and license value of some of our operations is impaired and $33 million have been written off in the quarter. During the closures, we have temporarily laid off and furloughed approximately 90% of our team members except for Poland where all employees will continue to be paid reduced salaries based on local employment laws. We recognize the impact that these furloughs has on our team members and we have tried to mitigate a little bit this impact by continuing to provide benefits coverage. We committed to