Welcome to Century Casinos Q4 2018 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 your 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'd 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 SEC filings, available in the Investors section of our website at cnty.com. I will now provide a brief review of the Company's financial results for the full year as well as for our fourth quarter 2018. Following the prepared remarks, there will be a Q&A session. We are happy to report an all time record in annual net operating revenue in 2018, up 10% over the previous year, even though we lost approximately $10 million in revenue, because of the licensing delays in Poland throughout 2018. Consolidated annual EBITDA was lower 2018 compared to last year due to the extra costs related to that license situation and casino closure in Poland. If you would adjust for that, the 2018 EBITDA would have been higher by approximately $4 million, resulting in an overall 5% increase over last year's EBITDA. On a per segment…

Thank you. [Operator Instructions] Our first question comes from Brad Boyer from Stifel. Please state your question.

Thanks for taking my question, Peter. First question is just on Poland. You saw a nice tick up in the margin here in the fourth quarter to around 9%. Just curious, how you are thinking about the margin ramp in Poland from here as we kind of work back towards that low to mid-teens level that we saw prior to some of the licensing renewal noise?

Yes. That’s certainly the goal. And as you know because of the gaming tax of 50%, mid-teen EBITDA margin is pretty much the maximum we can get to and we have been there previously. In Q4, we still had some extra costs because we were -- some of the operations just reopened and we had some marketing pushes to make, and getting the staffing levels in line. So, those are the things we are working on and obviously incremental revenue, but because that's really what then drives the EBITDA margin. So, we are -- I think, we're in good shape in Poland, and we are gradually working our way back up to those mid-teens.

Okay. So, you think it should be kind of a gradual ramp as we move here into 2019 back to sort of those levels?

That's what we think, it would be. Yes.

Okay, perfect. Thanks. And then, second question, it's been a couple of weeks now since Northlands Park shutdown up in Edmonton. Just curious what you're seeing at St. Albert and Edmonton in the wake of Northlands Park closing?

Erwin?

Yes. We don't see a lot in St. Albert because that's just geographically too far away. But, in Edmonton, we do see an effect, if I may say so.

Okay, thanks. And then, Peter, back to you. I know in the past, you talked about a little bit about your desire to potentially expand your portfolio here in the U.S., just curious kind of could you update us on kind of where that stands and maybe give us a sense of kind of where you're comfortable taking leverage to in order to get a deal and/or deals done?

Yes. We do see quite a number of interesting assets coming to market as many of our peers are getting larger and larger properties that do between 10 and 20, $5 million EBITDA getting too small for them. So, yes, there is an active market out there, and we are active in that market. Leverage, I think, we would not feel comfortable if we would take the leverage to over 3, maximum 3.5 longer period of time. So, we feel comfortable below that.

Okay, thanks. And then, last one for me, it’s just a house keeping question. Could you give us a sense of how you’re you thinking about CapEx for 2019?

Erwin or Peggy, can you add - contribute here?

I think, just as we always did some replacement of slot machines and just keeping the properties in good shape, so nothing out of the ordinary.

So, that means probably between 3% and 4% of revenue, that’s what it has been historically?

Yes.

[Operator instructions] Our next question comes from Mike Malouf from Craig-Hallum Capital. Please state your question.

Great. Thanks for taking my questions. When I take a look at St. Albert, we’re looking at margins that haven’t been this high in a little while. I am just wondering if you could comment a little bit on the sustainability of that.

This is Erwin. I think it’s sustainable. We have a very good strong management there, and they have been consistently working with and diligently working and things start to show now. So, there’s no reason why it shouldn’t stay.

Okay, great. And then, just a little bit more color on Poland, if you could. It sounds like you’re marching back up into the mid teens, which is great. I think, you’re at the high of close to 15% just a couple of years ago. How soon do you think you can get up to that level? Do you think we can get up to that 14 -- sort of 14%, 15% this year or is it going to be more like next year, and then, maybe just a comment on the competition that’s going on there?

It’s not so easy to really predict the whole year with regard to EBITDA. I mean, the goal is EBITDA and we want to be back where were, ideally even better. Let me maybe say this. We are -- we would opening in beginning of April a casino on the third floor or an extension of our existing casino at the Marriott into the third floor, which will give us significantly more room, which will be looking very good. And we think that has the potential to increase the business volumes at the Marriott even further. But, without having on too much significant extra costs because it’s obviously the same license, same management. But, yes, I don’t think we can predict when exactly will happen, but certainly within reach.

Okay, great. And then, you didn’t mention anything about Vietnam. I am just kind of curious, what kind of timing should we expect with regards to any decision on expansion there?

Yes. Not before the end of the year. We are investing some small amounts and upgrading the existing facility. And we want to give us at least until the end of summer or towards the end of the year to watch what kind of an impact it has, and then make a decision.

There are no further questions at this time. I turn the call back over to Peter Hoetzinger.

All right. Thank you, everyone. Thank you for your interest in Century Casinos and your participation in the call. For a recording of the call, please visit the financial results section of our website at cnty.com. Good bye.

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