Century Casinos, Inc. (CNTY) has reported a 30.83 percent plunge in profit for the quarter ended Sep. 30, 2016. The company has earned $1.89 million, or $0.08 a share in the quarter, compared with $2.73 million, or $0.11 a share for the same period last year.
Revenue during the quarter went up marginally by 2.98 percent to $34.53 million from $33.53 million in the previous year period. Gross margin for the quarter contracted 107 basis points over the previous year period to 11.11 percent. Total expenses were 88.89 percent of quarterly revenues, up from 87.82 percent for the same period last year. That has resulted in a contraction of 107 basis points in operating margin to 11.11 percent.
Operating income for the quarter was $3.84 million, compared with $4.08 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $6.27 million compared with $6.72 million in the prior year period. At the same time, adjusted EBITDA margin contracted 188 basis points in the quarter to 18.16 percent from 20.04 percent in the last year period.
"Operating results and Adjusted EBITDA were impacted by extensive refurbishment and remodeling at the Century Casino & Hotel in Edmonton, our largest property. However, we are very happy with the new gaming floor, restaurant, bar, poker room and the beautiful new VIP gaming areas," Erwin Haitzmann and Peter Hoetzinger, Co chief executive officers of Century Casinos, said. "We opened another three shipboard casinos this year and are particularly excited about the newest addition to our portfolio of casinos, the Century Casino St. Albert in the greater Edmonton metropolitan region, which we acquired on October 1, 2016. Finally, we are thrilled to have been chosen by Horse Racing Alberta to develop and operate a new horse racing and gaming entertainment facility in South Edmonton," they continued.
Working capital increases sharply
Century Casinos, Inc. has recorded an increase in the working capital over the last year. It stood at $14.76 million as at Sep. 30, 2016, up 36.83 percent or $3.97 million from $10.79 million on Sep. 30, 2015. Current ratio was at 1.59 as on Sep. 30, 2016, up from 1.43 on Sep. 30, 2015.
Days sales outstanding went down to 5 days for the quarter compared with 10 days for the same period last year.
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