Century Casinos: A World Away from Macau and Las Vegas

Shawn Kravetz of Esplanade Capital presented his in-depth investment thesis on Century Casinos (US: CNTY) at Best Ideas 2019.

Thesis summary:

Century Casinos is an owner/operator of casinos. With assets primarily in Canada, Poland, and Colorado, Century is a world away from Macau and the Las Vegas Strip, but has been lumped into the global casino morass.  

It enjoys one of the least leveraged balance sheets in the industry.  

Having overcome challenges in 2018, Century is poised to nearly double run-rate EBITDA by the end of 2019, leading to one of the industry’s lowest EBITDA multiples despite robust organic growth.  

Century’s capable veteran management team has been buying stock recently at these levels. With their core business performing well and their largest property opening in April, Century presents a catalyst-rich play on the global casino industry.

Listen to this session:

slide presentation audio recording

About the instructor:

Shawn Kravetz is President and Chief Investment Officer of Esplanade Capital LLC, an investment management company he founded in 1999. Esplanade Capital LLC manages capital for a small number of like-minded families, private investors, and institutions. Esplanade’s value orientation, driven by patient capital and proprietary research/analysis, has generated substantial outperformance versus benchmarks since inception. The firm specializes in smaller companies, out of favor & below the radar companies, special situations, and turnarounds. Prior to founding Esplanade, Shawn was a corporate executive and strategic advisor, including: Principal at The Parthenon Group, a leading strategy consulting boutique, where he advised chief executives on corporate strategy; Director of Strategic Planning and Corporate Development at The CML Group (NYSE traded), where he oversaw activities at subsidiaries including NordicTrack, The Nature Company, and Smith & Hawken; Consultant with Monitor Company, a leading strategy consulting firm. Shawn received an MBA with High Distinction from Harvard Business School in 1995, where he was awarded: The Thomas M. and Edna E. Wolfe Award; The Henry Ford II Scholar Award; and a Baker Scholarship. Shawn received an A.B. in Economics from Harvard University, magna cum laude, in 1991. Shawn has also been active in his community, having served as: Steering Committee Vice Chairman of The Museum of Fine Arts Council at The Museum of Fine Arts Boston; Member of the Steering Committee of The Vilna Center for Jewish Heritage; and Treasurer of the PTO for the Frances Jacobsen Early Education Center. Shawn currently serves as Trustee and Chairman of the Investment Committee at Temple Israel, Boston. Shawn currently serves on the board of directors of Nevada Gold & Casinos, Inc. where he is Chairman of the Corporate Governance and Nominating Committee and a member of the Compensation Committee. As an investor, advisor, board member, and executive, Shawn has a demonstrated record of creating value for his investors, clients, and companies.