The Silver Dollar is a 93,000 square foot casino facility located on approximately seven acres of land in Calgary. The casino facility includes 504 slot machines, 16 table games, 15 video lottery terminals, two restaurants, a lounge, a 5,000 square foot showroom, an 18,000 square foot convention center and a 38-lane bowling alley.
Century Casinos, Inc. (Nasdaq: CNTY; Vienna Stock Exchange: CNTY) announced today that the Company's Austrian subsidiary, Century Casinos Europe GmbH ("CCE"), has entered into a definitive agreement to acquire 100% of the outstanding common stock of Frank Sisson's Silver Dollar Ltd. ("FSSD") and 100% of the outstanding common stock of EGC Properties Ltd ("EGC"), the owner and operator of Silver Dollar ("Silver Dollar") casino in Calgary, Alberta, Canada and the related land. The total consideration for the transaction is $10,650,000 (USD), plus/minus a working capital adjustment.
The Silver Dollar is a 93,000 square foot casino facility located on approximately seven acres of land in Calgary. The casino facility includes 504 slot machines, 16 table games, 15 video lottery terminals, two restaurants, a lounge, a 5,000 square foot showroom, an 18,000 square foot convention center and a 38-lane bowling alley.
On April 15, 2009, Evergreen Gaming Corporation, the company that acquired the Silver Dollar in 2007, filed for protection from creditors under the Companies' Creditors Arrangement Act in Vancouver. On June 24, 2009, a receiver was appointed by the courts to manage the assets of FSSD and EGC. We believe its current performance is not indicative of its real potential.
Century Casinos already owns and operates a casino in Alberta, Canada, namely the Century Casino & Hotel in Edmonton. That property generated net operating revenue of CAD 23,200,000 and Adjusted EBITDA* of CAD 8,000,000 for the trailing twelve months ending September 30, 2009.
"We are excited about expanding in Alberta, Canada, by entering the Calgary gaming market with the addition of the Silver Dollar to Century's portfolio of casino hotels. Once we have made certain improvements at the property and refined its market position, we believe the Silver Dollar has the potential to substantially contribute to our overall performance", said the Company's Co CEOs Erwin Haitzmann and Peter Hoetzinger.
The transaction is subject to customary closing conditions, including the receipt of necessary regulatory and governmental approvals. The transaction is expected to close in the first quarter 2010. The total purchase price will be paid out of the Company's cash on hand.
Century Resorts Alberta
Reconciliation of Adjusted EBITDA
to Net Earnings (Unaudited)
(Amounts in thousands, in Canadian Dollars)
For the trailing twelve
months ended
September 30, 2009
Net earnings CAD 3,766
Interest income (8)
Interest expense 1,349
Income taxes 1,391
Depreciation 1,489
Foreign currency (gains) (2)
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Adjusted EBITDA* CAD 7,985
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