Century Casinos in Colorado Springs have announced that they have entered into negotiations to sell the Century Casino Calgary for CAD 10.0 million ($7,5million), based on the exchange rate as of July 2020. Calgary is one of the company's smaller operations and generates about $8.4 million of the 1,2 million in Adjusted EBITDA (Earnings before interest, taxes, depreciation, and amortization) in 2019. The plans for the sale should be concluded by the Fall of 2020.
Century Casinos Incorporated was established in 1992. The casinos have a lot of entertainment, restaurants, and showrooms on offer to all loyal customers. Many of Century casinos follow in the image of a mid-sized casino, which is the preferred model that the corporate structure follows.
Co-Executive officers Erwin Haitzmann and Peter Hoetzinger of Century Casinos said this means that they are selling off half of the Calgary casinos operations,to 2267166 Alberta Ltd, but they will continue to run half of the sports bar, bowling and entertainment operations. In addition to this, Century Casinos will retain ownership of the real estate. Also according to the agreement, CRA will enter into a three-year lease agreement with the Buyer who will pay Calgary rent of about CAD 480,00 which is about $358.103 per annum. The co-executives of Century casinos have outlined that this sale will positively affect their balance sheet after the last few turbulent financial months.
According to the report, the agreement which is supposed to be finalized soon is that the transaction is still to be approved by the Alberta Gaming, Liquor, and Cannabis Commission. The CAD 10.0 million, is a non-refundable payment to Century Casinos, except as stipulated in the Agreement. Century’s Q1 showed a loss of around 40% in earnings in comparison to 2019, however, the adjusted EBITDAincreased worldwide by 44% to CAD$ 9.6 million from last year's CAD$ 6.7 million for the same period.
The agreement between these two companies will mean that Century Casino will be able to stay involved, albeit in a managing capacity for the next three-years. Since being founded 3 months ago, 2267166 Alberta Ltd, has opened a door with great start-up growth potential. Having bought an established and well-known casino means they now have the opportunity to build on to the legacy that is Century Casino Incorporated.