Welcome to Century Casinos' Q4, 2017 Earnings Conference Call. This call will be recorded. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session. I would like to introduce our host for today's call, Mr. Peter Hoetzinger. Mr. Hoetzinger, you may begin.

Good morning, everyone, and thank you for joining our earnings call. With me on the call are my Co-CEO and the Chairman of Century Casinos, Erwin Haitzmann; as well as our Executive Vice President of Finance, Margaret Stapleton. Before we begin, we would like to remind you that we will be discussing forward-looking information, which involves a number of risks and uncertainties that may cause actual results to differ materially from our forward-looking statements. The company undertakes no obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise. We provide a detailed discussion of the various risk factors in our SEC filings, and we encourage you to review these filings. In addition, throughout our call, we refer to several non-GAAP financial measures, including but not limited to, adjusted EBITDA. Reconciliations of our non-GAAP performance and liquidity measures to the appropriate GAAP measures can be found in our news release and in the filing from this morning, are also available in the Investor section of our website at cnty.com. We will now provide a brief review of the company's financial results for the fourth quarter and full year 2017 and following our prepared remarks, there will be a Q&A session. 2017 was a good year for Century Casinos as we generated all time record revenues and all time record adjusted EBITDA. Erwin and I are very pleased with these results, but we are even more pleased with the state, the shape and condition of our company which is a result of a very efficient team effort of the great people we have in our offices in Colorado Springs and Vienna and at casino property level. All of them are very talented and engaged, striving for continued improvement in everything we do. Ultimately…

[Operator Instructions] Our first question comes from David Bain of Roth Capital. Please state your question.

Hi, guys, I just-- so I'm clear on Poland, the history of CPL or since you've acquired it, has there ever been a time or how many times have you not had a license renewed?

Erwin, can you chip in on that? Maybe let me start, the company Casinos Poland is the name which we own two thirds of has started operations in 1988 with the casino at the Marriot Hotel in Warsaw which is the number one casino in the country. And that license has been in place continuously since 1988. Most of the others as well but maybe Erwin for details you have that.

Yes. Where it matters we always said, like you indicate, continuity. Also in the countryside, we have lost one of the other licenses, if we had not gotten back first and we decide for other ones and we got those. So I think in short the important ones we were always able to either keep or renew.

Okay and so do they typically let these expire before going through a renewal process? Because I haven't seen the disruption before.

No, no, that's new and we hope it won't be forever. I mean we obviously-- we and union representatives I spoke yesterday diplomatically can be to hopefully change it, but it's not in our hand.

Okay and then can you discuss what actions you took that led to that nice year-over-year, quarter-over-quarter margin increases at Casino Edmonton? And then any other margin initiatives underway for further flow through either at that property or some of the others?

Basically we always I would say as a matter of fact we take the [Indescernible] then go through the details and more likely than not we always find something. And then that's probably related the only thing I could say here.

Okay and I guess just final I saw the press release on the free shuttle that will take patrons from the Edmonton Airport, International Airport's to the Outlet mall to Century Mile, obviously that creates a nice traffic flow potential. Are there any details that you would have on number of trips or expected passenger counts or is there anything like that at this point or is that too freshly designed?

Yes. It's too early. Yes, we haven't seen any detail yet. Actually too early literally but what the airport officials what they want to do is they want to really create a day trip destination for people in Western Canada. There's lots of smaller communities that have this small commuter planes going in Edmonton International airport from within like 45 minute - one hour distance and with all these amenities at the airport, they want to market this for people to fly in the morning, do their shopping, had their fun at the racetrack, go to restaurants, maybe even play golf and then fly out in the evening or the next or the next day and not even go to the city center, Edmonton. They think that there's really a market in that and obviously if they're successful it's even better for us.

Your next question comes from Brad Boyer of Stifel. Please state your question.

Thanks for taking the questions guys. First one here, I just want to make sure that I heard you correctly Peter on the Polish margins. Were you saying that they're still going to be some noise there until you kind of get into the September timeframe of this year?

Yes, yes.

Okay and so we should expect to see kind of some continued pressure there through kind of the first half of this year is that fair?

That's fair to say, yes.

Okay and then second going back to Poland could you just give us an update on kind of how things are ramping at the Hilton Warsaw that would be helpful?

Yes. It's continuing to ramp up as anticipated, sometimes the ramp is like in the between 20% and 30% over the previous month, sometimes it's between 20%; it's always a nice double digit ramp. And as I said we had the two issues in Q4. One is for this re-licensing cycle that the normal pressure on margins because of the higher costs that we have keeping the premises in place and staff in place for those casinos that are under the re-licensing review. But we also had this really low whole situation and that cost us about $2 million just for the quarter if you move back in the Poland EBITDA would have increased by about 25%. So overall we are really okay with the strengths of the casinos that are up and running.

Okay, that's great and then the last one for me it would just be around sort of your intermediate to longer-term growth initiatives. Just wanted to see if you could provide some perspective there. Obviously, you guys have a decent amount on your plate here with the Mile, but just curious if you could share some perspective on kind of how you were thinking about growth initiatives beyond Mile and the Bath project at this point? Thank you.

We expect to be able to announce at least one exciting additional growth project this year. We hope for it to be coming online this summer. And then obviously Bermuda is also collecting around and coming with each other teams that there is plus new some traction that project as well. But always in the basket there is one more that is really close to be completed and that should be only within a few months from now.

Your next question comes from Mike Malouf of Craig Hallum Capital. Please state your question.

Hi, guys, this is Eric on for Mike. Thanks for taking my questions. If I could just drill in a little bit more into Poland. I know it's kind of talked about it a bit already but if you could go over the your respective timeframe of when you feel you might hear back on those licenses and remind us how many licenses are kind of in limbo right now?

Erwin please.

Yes. We have opened this deal already on June 15 this year and we plan to open Katowice in April and Wroclaw in April and then on the pending applications are one for Warsaw, one for Plock, Lodz, Krakow and Poznan.

Okay, great and then what kind of confidence you guys have that let you get those renewed and then what kind of revenue run rates might we be able to expect once those are back up and running?

Lodz, Krakow, Poznan and Plock, we had already in our portfolio and we would assume that the revenues would --the history would be a good indication and good basis for calculating for making assumptions about future revenues, and with regard to Warsaw, you also know the Warsaw now-- that's right.

I am sorry

You're also familiar with our Warsaw numbers that we're doing now.

Right, okay, so I guess you know the better way to phrase it no real expected change from historical numbers when those get back up and running despite the list of the sort of strengths you guys have experienced in your current operations?

No, hopefully we can always -- we said earlier we always try to grow but it would be -- we would operate in essence the same premises so yes we wouldn't really expect a whole different .Having said that, Katowice always our second best market after Warsaw. So we expect that to have a real good intake starting in April and also Katowice should be contributor.

Make sense, great. And then if I can ask about the impact to Century Downs and the expected impact to Century Mile of that existing racetrack closing if you go over the time frame of that closing? Again, I think you said when Century Mile is expected to open so Q1 I suppose but if you just talk about the incremental impact to the to current ratios that you have?

This is two separate markets. One is in Calgary, this is where Century Downs is operating and has been for over two years. There will not be any impact on that facility from the closing of Northlands Park because Northlands Park is in Edmonton which is three and a half hours north and it's really a completely separate market is almost no overlap. Now I have said that within the Edmonton market, the existing racetrack Northlands Park is very close only a few minutes from our Century Casino Edmonton and the Century Casino Edmonton will substantially benefit from Northlands Park closing because they operate over 500 machines very close to our casino. And that we believe it will have an impact of approximately, well a double digit revenue impact probably between 10% and 20% which is fantastic because that should go right through to the EBITDA line. And that will happen when we open Century Mile which is in the south of Edmonton.

That's great and then final question for me if I could ask you about the Bath Casino in UK. I know you are trying to open that in the end of May. What kind of revenues might we be able to expect from that? You mentioned the 25% EBITDA return but if I can I just drill down on the top line a bit that will great.

Yes. All in all, we have about $8 million in and we expect 25% EBITDA return. So that's about between 2 and 2.5 and the EBITDA margins that we expect to generate there also in the mid-20s. So the revenues should be around 10.

There are no further questions at this time. I'll now return the call to Mr. Hoetzinger.

Thank you, everybody. Thank you for your interest in Central Casinos and your participation in the call. For recording of the call, please visit the financial side section of our website at cnty.com. Goodbye.

This concludes today's conference call. Thank you for attending.