C
entury Casinos announced Friday its financial results for the second quarter of 2020. Net operating revenue was $36.1 million, a decrease of 31% from the same period of the prior year. Losses from operations were $2.1 million, compared to earnings of $2.6 million in Q2 2019, a 181% decline. Adjusted EBITDA was -$1.8 million, down 126% year-over-year.
The company said the COVID-19 pandemic significantly impacted its results of operations, which included an additional $1.2 million impairment of goodwill and casino licenses. Century’s second quarter 2020 net operating revenue and Adjusted EBITDA also were significantly hit by the acquisition of Mountaineer Casino, Racetrack & Resort, Century Casino Cape Girardeau and Century Casino Caruthersville in December 2019.
Between March 13 and 17, the company closed all of its casinos, hotels and other facilities to comply with quarantines issued by governments to contain the spread of COVID-19. Its Polish locations reopened on May 18, and its North American operations reopened between June 1-17. Century Casinos expects the pandemic will continue to have an adverse impact on its results for the remainder of 2020.
“We are excited by the enthusiasm our customers have shown in visiting our reopened casinos. We are pleased that our operations have been able to achieve cash positive positions so soon after reopening,” Erwin Haitzmann and Peter Hoetzinger, Co-Chief Executive Officers of Century Casinos stated in a press release. “We continue to take social distancing and our customers’ health very seriously, and we continue to explore new ways to further improve customer safety. We would like to thank our customers, employees, communities and authorities for their cooperation and support both during and after our temporary closures.”
The company said it continues to operate with reduced spending on most advertising and marketing costs as well as implementing cost-saving initiatives intended to eliminate approximately $13.7 million of non-labor operating costs in 2020. Century intends to defer or eliminate approximately $2.2 million of discretionary capital projects for the remainder of 2020 in order to proactively address its capital spending for 2020. Additionally, the company negotiated arrangements with some of its contractual counterparties, such as vendors and lessors, to modify the timing of certain contractual payments.
Moreover, Century performed a quantitative and qualitative impairment analysis and determined that goodwill and casino licenses related to certain reporting units were impaired. As a result, the company recorded $1.2 million and $35.1 million to impairment – goodwill and intangible assets on its condensed consolidated statement of (loss) earnings for the three and six months ended June 30, 2020, respectively.
As of June 30, 2020, the company had $51.6 million in cash on hand, compared to $63.7 million at March 31, 2020 and $54.8 million at December 31, 2019.
