Century Casinos announced August 5 that it was selling Century Casino Calgary to 2267166 Alberta Ltd. for $7.5 million.
The Colorado-based company will also pay a three-year quarterly earnout and will continue to operate the sports bar, bowling and entertainment property and will also own the property on which the casino sits.
The deal is expected to be finalized this fall, subject to approval by Alberta regulators.
The casino is one of Century’s smaller properties.
Union Gaming Group analyst John DeCree told CDC Gaming Reports,
“The Calgary divestiture highlights the value of the Canadian portfolio, which is often underappreciated, provides additional liquidity for insurance against any future economic lockdowns, and results in virtually no change to Century’s cash flow outlook.”
Wall Street appears to like Century Casinos, which many see as one of the most successful gaming companies at dealing with the coronavirus pandemic. It recently beat forecasts for loss per share and revenue, and it didn’t hurt that the company’s leaders explained that lessons learned and managing costs helped dampen the impact.
Century Casinos co-CEO Peter Hoetzinger last week said the company lost no time in reacting to the forced closures by temporarily laying off and furloughing 90 percent of staff while executives took voluntary pay cuts. Once the shutdowns were lifted, the company’s casinos reopened quickly and seamless fit the new sanitation protocols into their daily routine.
The company also used the time during the closures to “improve on controlling expenses and realizing efficiencies in marketing, staffing, and general and administrative,” said Hoetzinger.
Last week Stifel Financial gaming analyst Brad Boyer told investors, “We are hard-pressed to find another company in our regional operator coverage better built to endure in a post-Covid world.” He added, “Century’s assets are predominantly located in markets with few competing entertainment options and derive the vast majority of revenues from their slot floors.”
