Century Casinos, Inc. (NASDAQ:CNTY) Q4 2022 Earnings Call Transcript

Erwin Haitzmann: I don’t think that — we don’t see any disruption, certainly not in Q2, I mean changes to the gaming floor with regards to the slot mix. I really wouldn’t call that disruption. That doesn’t disrupt — putting in new slots is not really disrupting the operations. And the only thing that disruption is a topic to manage it if and when we change the floor layout and expand the floor and make changes to the floor layout. But if and when — we’re in the middle of planning that. But if and when we do that, we obviously the most important integral part of the planning would be to do it in such a fashion that the disruptions are the minimum, not even any disruption at all. And I think it’s very good. The good thing is one of the good aspects of the Nugget is that there is a lot of square footage and we have a lot of room to pay with.

Chad Beynon: And just one last one on the Nugget. When we think about the TTM multiple, even with some of this maybe weather disruption, are we still kind of sub-6 from an opco standpoint in terms of what you guys will be paying for the asset?

Peter Hoetzinger: Well, if we’re taking the 2022 numbers, then we are a bit higher than 6. But the 2022 numbers were not only negatively impacted by weather in Q4. There were also on the events front. I mean you know that in more detail quite a few like onetime impact hand controls, and so on that had a material impact to the 2022 numbers, right?

Erwin Haitzmann: Yes. Four shows for have cancelled. had an accident at home. got some thickness in the eye, and then the other 2 gentlemen also or groups they were postponing into next year. One was afraid of COVID. And the other one, we don’t know why they — I mean that was really unfortunate, and all of these cancellations came just too short to be able for the market management to get a replacement. So that should be really hopefully. One has been one very unlucky year, and we don’t think that this will repeat itself.

Operator: And our next question comes from Jordan Bender.

Jordan Bender: Great. Peter, you called out a pretty positive outlook into the second and third quarter of this year. Can you maybe break that down between the drivers of that? Are they the macro factors you called out? And then is it fair to assume that the second and third quarter, you should be up year-over-year on a same-store basis?

Peter Hoetzinger: Yes, Jordan. That’s what we expected. That’s what it looks like right now, and it’s pretty much across the board, yes. Flattish in West Virginia. Up in Missouri. Up in Colorado.

Erwin Haitzmann: Up in Poland. Up in Canada.

Peter Hoetzinger: Up in Poland. Up in Canada. That’s right, yes.

Jordan Bender: Okay. Good to hear. And then just following up in Caruthersville. Looks like gaming position has increased pretty meaningfully with the move to land. Can we maybe get an update on the performance of the temporary facility and how consumers are viewing that? And maybe what should we expect this year from that?