Century Casinos, Inc.

Good day, everyone, and welcome to today's Century Casino's Q1 2026 earnings call. At this time, all participants are in a listen-only mode. Later, you will have the opportunity to ask questions during the question and answer session. You may register to ask a question at any time by pressing the star and 1 on your telephone keypad. Please note, this call is being recorded, and I will be standing by if you should need any assistance. It is now my pleasure to turn the conference over to Peter Hetzinger, Please go ahead.

Good morning, everyone. Thank you for joining our earnings call. Before we start, we'd like to remind everyone that we will be discussing forward-looking information under the safe harbor provisions of the U.S. federal securities laws. The company undertakes no obligation to update or revise the forward-looking statements, and the actual results may differ from those projected. Throughout the call, we referred to several non-GAAP financial measures including but not limited to adjusted EBITDA. Reconciliations of our non-GAAP measures to the appropriate GAAP measures can be found in our news releases and SEC filings, available in the investor section of our website at cnty.com. With me today are my TOAS CEO, Erwin Heitzman, and our Chief Financial Officer, Margaret Stapleton. After our prepared remarks, we'll open the call for questions from analysts. I'm pleased to report that our diversified portfolio delivered a strong, solid quarter as net operating revenue increased by 5%. That is an all-time record for us. We never had higher revenues in the first quarter in the history of the company. Congrats to all staff members and the management teams at our properties. Our performance was encouraging across the board. The growth was broad-based. every single property in the US and Canada had higher revenues than in Q1 of last year. And that strong revenue performance also translated well to profitability, with adjusted EBITDA increasing 24% year-over-year. Highlights of the quarter include the 93% EBITDA increase at the Nugget, as well as the ongoing ramp and strong performances of both Missouri properties. And also on the EBITDA level, every single property in the US and Canada grew compared to Q1 of last year. We achieved that growth despite extra costs and the slow ramping new casino in Poland. Strong operating discipline led to improved flow through with some property margins in the high 30s and even above 40%. In the quarter, We benefited from growth across core and retail customers, from improving weather conditions, as well as from a predominantly local repeat customer base, a diversified portfolio, and limited exposure to new supply. As mentioned in our last call, we've been seeing solid trends since around December of last year, despite higher gas prices. At most of our properties, the majority of our customers live within a 45-minute drive. Hence, the overall economy, inflation, and especially employment are more meaningful than gas prices alone. And I would say we are also seeing some benefits from tax refunds being higher year over year, offset by less several macro geopolitical backdrop. Our properties are spread across five states and one Canadian province. And these positive results were also supported by the ongoing trend of customers staying closer to home and spending their money closer to home. Across the entire US portfolio, the trend of strong play from high value and core customer segments continued. Overall rated revenue increased 5%, emphasized by solid growth in the high and mid ATT segments and in all age groups. And last but not least, we benefited from strong returns from the capital investments we've made over the last two plus years. These investments have finally entered the contribution phase, contributing to EBITDA growth and helping us to start leveraging the balance sheet. With that, now over to Erwin for more color on our individual properties.

Thank you, Peter, and good morning, everyone. In the United States, we had an excellent first quarter with year-over-year revenue and EBITDA growth at each property, beginning in the east with Rocky Gap Casino Resort & Golf in Maryland. There, revenue increased 6.5% from 13.9 to 14.8 million, and EBITDA increased 32% from 1.6 to 2.2 million. Rocky Gap had a strong quarter with total revenue up nearly 10% and NOR up 6.5%, driven by solid gains in visitation in January and February. Slot revenue rose 16%, boosted by improved hold. The property's direct mail digitization initiative, which we introduced for guests aged 39 and younger, is delivering meaningful savings in marketing spend while maintaining engagement. Payroll discipline continued, with total payroll up only 1.6% despite annual increases. Operating expenses were down 5.2%. On the customer side, rated gaming revenue grew 21%. High ADT customers accounted for 33% of total gaming revenue and grew 39%. We are seeing growth across all age groups, with seniors up 28%, and middle-aged and young adults each up 14%. Non-low-income customers now account for more than half of rated gaming revenue, reflecting the property's continued draw as a destination resort. We experienced some softness in March, likely driven by higher gas prices. Looking ahead, the team has activated targeted campaigns in Pennsylvania ahead of the opening of a new casino in State College which is approximately two hours from Rocky Gap. Continuing with Mountaineer Casino Resort and Races in West Virginia. Revenue increased 3.9% from 23.2 to 24.1 million and EBITDA increased 24% from 2.6 to 3.2 million. Mountaineer's Q1 result was driven by expense discipline and moderate revenue growth. Total revenue was essentially flat while NOR improved 3.9% due to a 0.7 million reduction in free play. Our digital channels continued their strong growth. iGaming revenue was up 48% year over year and sports betting was up 285%. Hotel occupancy held steady with higher cash and lower comp revenue. Adults 40 to 59 years old grew 12% and young adults grew 24% in rated gaming revenue. These are encouraging signs for the property's customer-based development. Local customers grew 11% and now account for 81% of rated revenue, reflecting Mountaineer's position as a regional entertainment anchor in West Virginia's northern panhandles. Now onto our Midwest portfolio, starting in Missouri. At Century Casino and Hotel Cape Girardeau, revenue increased 6.4% from 17.1 to 18.2 million, and EBITDA increased 12% from 6.1 to 6.9 million. Cape Girardeau had a strong quarter. The increase in net operating revenue was driven by excellent slot performance. Slot revenue was up 6.5%, and guest volumes were up 8%. Our retail sportsbook, which launched in December 25, is already averaging 17% of Missouri's total sports betting handles and is ranked second in the state, an impressive early result. The Riverview Hotel continues to perform well, with occupancy rising to 76% from 68% in Q1 of last year. Compt Hotel guests are generating an average ADT of more than $400, confirming the strong link between hotel stay and gaming value. Illinois patronage is rebounding, with unique patrons up 6% over prior year. The competitive picture, which includes Walker's Bluff and Metropolis in Illinois, remains manageable. Now to our Century Casino and Hotel Carradasville. revenue increased 3.1% from $14.2 to $14.6 million, and EBITDA increased 5% from $6.1 to $6.3 million. Caradasville continues to deliver strong, consistent results from its well-established permanent facility. Both slots and tables delivered positive revenue growth, with slots up 7% and tables up 2%. High ADT customers grew 23%, and Missouri patronage grew by 22%. Trips from patrons living more than 75 miles away increased by 20%, a clear indicator that the new facility is drawing from a broader geographic catchment area. Also note that there was a one-time favorable settlement of 225K in Q1 of last year. On an average to average basis, EBITDA growth was 9%. I continue with Colorado. At Century Casino and Hotel Cripple Creek, revenue increased 8.6% from 4.1 to 4.4 million and EPITAR increased 37% from 1.1 to 1.5 million. Cripple Creek had a very good quarter. The elimination of table games at the start of 2025 continues to prove its worth. The electronic table games lounge is popular among our guests, especially young adults. Accordingly, this age group shows the strongest growth. Payroll and benefits were down 70K or nearly 5%, and total expenses fell 1.5%. The result is a clean, lean operation with further improved profitability. Customer trends show healthy growth in both unrated and non-local play, which we attribute to our successful marketing initiatives and our continued focus on customer satisfaction. Rated gaming revenue grew 5%, with mid and low ADT segments each up more than 15%. In the Century Casino and Hotel Central City, revenue was up 4%, from 4.4 to 4.6 million, and EBITDA more than quadrupled, from 200,000 to over 1 million. Central City's improvement continued in Q1. The removal of table games, which we implemented at the start of 2025, It significantly improved the property's cost profile. Total expenses were down 600,000 euro per year, with payroll and benefits alone down 313,000. Lot revenue was flat the prior year. The EBITDA improvement is substantial and reflects a better managed operation. We are also seeing some improvement in unrated and non-local play at Central City. Hotel cash revenue was up 10%. with a strong Q2 event calendar, including the 20th Anniversary Challenge, a multi-month promotion culminating in a car, trips, or cash drawing on July 5. Now to the West and the Nugget Casino Resort in Reno Sparks. Revenue increased 4% from $16.4 to $17.1 million, and EPITAR increased 93% from $0.7 to $1.4 million. The Nuggets EBITDA doubling is significant. As expenses were flat, the increase in revenue was fully flowing through to EBITDA. Hotel cash revenue was up 1 million, which is a 31% increase. FNP cash revenue was up 7%, demonstrating that the non-gaming amenities are gaining traction. Unrated gaming grew 16%, suggesting growing walk-in visitation, aided by the increased hotel occupancy and improved entertainment offers. The concert lineup for this year is excellent. The Brooks and Dunn concert on April 25 was sold out. The acts still to come include Keith Urban, Lady A, Shinetown, Miranda Lambert, and Kansas and Deep Purple. Now to Canada. Our portfolio in Alberta, Canada consists of Century Casino and Hotel Edmonton, Century Casino St. Albert in the Edmonton metropolitan area, Century Mile Racetrack and Casino to the south of Edmonton, and Century Downs Racetrack and Casino to the north of Calgary. These properties performed very well in Q1-Q2. Combined revenue increased 10.9% from $16.5 to $18.3 USD, million and combined EBITDA increased 26% from 4.4 to 5.5 million USD. We saw another quarter of solid performance at our Alberta operations. The renovation of the exterior façade at our St. Albert Casino, which was completed last year, has significantly improved results. And our Central Mile Rail Track and Casino, achieved the best quarterly performance since its opening in 2019. We completed the construction of sports bars at all four sites and are well prepared to offer retail sports betting, which will be permitted in Alberta at casinos and select sports sites later in 2026. Finally, moving to Poland, where revenue increased 2.3% from 20.6 to 21.1 million USD and EBITDA decreased 8% from $550,000 to half a million. The challenging period marked by license delays in relocations has ended, and we can focus on improving overall results. Our second Wroclaw location started operations in February of this year and is expected to further strengthen our position. While revenue is showing a small increase already, EBITDA is down by 8%. We attribute this decrease to lower than normal replacement capex, given the intent to sell the Poland subsidiary. All current licenses are valid through at least 2028, and we expect stable operations going forward. With that, back to you, Peter.