Monarch Casino & Resort, Inc. (Nasdaq: MCRI) (“Monarch,” “we,”
“our,” or “the Company”) today reported operating results for the
first quarter ended March 31, 2024, as summarized below:
($ in thousands, except per share data and percentages) |
|
|
|
Three Months Ended March 31, |
|
|
2024 |
|
2023 |
|
Increase |
Net revenue |
|
$ |
121,657 |
|
|
$ |
116,644 |
|
|
4.3% |
|
Net income |
|
|
18,275 |
|
|
|
17,670 |
|
|
3.4% |
|
Adjusted EBITDA (1) |
|
$ |
38,548 |
|
|
$ |
36,480 |
|
|
5.7% |
|
|
|
|
|
|
|
|
|
Basic EPS |
|
$ |
0.95 |
|
|
$ |
0.92 |
|
|
3.3% |
|
Diluted EPS (1) |
|
$ |
0.93 |
|
|
$ |
0.90 |
|
|
3.3% |
|
|
(1) Definitions, disclosures and reconciliations of non-GAAP
financial information are included later in the release. |
|
CEO Comment John Farahi,
Co-Chairman and Chief Executive Officer of Monarch, commented: “In
the first quarter of 2024 net revenue and adjusted EBITDA grew to
all-time first quarter records of $121.7 million and $38.5 million,
respectively, and the EBITDA margin improved to 31.7% from 31.3% in
the same period of the prior year.
“Monarch Black Hawk generated revenue growth
across all its business segments and expanded its adjusted EBITDA
margin. The property continues to grow its market share,
particularly among mid- and upper-tier players. The exceptional
product quality, combined with our team’s operational excellence,
is creating unparalleled guest experiences in the market and
establishing the property as the leading casino resort in the
greater Denver market.
“At Atlantis, our primary focus remains the
ongoing enhancement of the property. While Reno remains a very
competitive market, we believe our focus on operational efficiency
and property enhancement through major capital investments will
keep us competitive and will be financially rewarding over the
long-term. We are on track to bring into operation another 125
redesigned and upgraded rooms by the end of the second quarter in
2024.
“With a strong balance sheet, we are favorably
positioned to continue investing in our properties, paying cash
dividends, and buying back stock under our existing stock
repurchase authorization. We continue to diligently evaluate
potential M&A transactions, which can drive additional
attractive long-term value for our stockholders.”
Summary of 2024 First Quarter Operating
Results In the 2024 first quarter, the Company generated
net revenue of $121.7 million, an increase of 4.3% from $116.6
million in the corresponding prior-year quarter. Casino, food and
beverage (“F&B”), and hotel revenues increased 3.8%, 2.9% and
8.4% year-over-year, respectively. The revenue increase was driven
primarily by market share gains at Monarch Black Hawk.
Selling, general and administrative (“SG&A”)
expenses for the first quarter of 2024 were $27.1 million compared
to $25.1 million in the corresponding prior-year period, driven
primarily by an increase in labor expenses, combined with increased
advertising and promotional expenses. As a percentage of net
revenue, SG&A expense increased to 22.3% compared to 21.5% in
the corresponding prior-year period. Casino operating expense as a
percentage of casino revenue increased to 38.0% during the first
quarter of 2024 compared to 37.7% in the same prior-year period,
primarily due to an increase in labor expenses and increased
promotional allowances. F&B operating expense as a percentage
of F&B revenue was flat with the prior-year period at 74.8% as
the Company continued its efforts to manage costs. Hotel operating
expense as a percentage of hotel revenue decreased to 35.6% in the
first quarter of 2024 compared to 41.3% in the same period a year
ago, primarily due to an increase in Average Daily Rate and
improved cost management.
Income from operations for the first quarter of
2024 increased 2.8% compared to the same period last year. Net
income increased 3.4% and diluted EPS increased 3.3% compared to
the same period last year. The Company generated record first
quarter consolidated adjusted EBITDA of $38.5 million, an increase
of $2.1 million, or 5.7%, over the same period a year ago.
Credit Facility and Liquidity
As of March 31, 2024, the Company had cash and cash equivalents of
$39.5 million and an outstanding principal balance of $5.5 million
under its credit facility.
Capital expenditures of $17.9 million in the
first quarter of 2024 were funded from cash on hand and operating
cash flows and included the redesign and upgrade of 125 guest rooms
in the third Atlantis hotel tower as well as ongoing maintenance
capital expenditures at both properties.
On March 15, 2024, the Company paid a cash
dividend of $0.30 per share to its stockholders of record on March
1, 2024. The cash dividend was funded from cash on hand and
operating cash flows.
In the first quarter of 2024, the Company
purchased 281,708 shares of its common stock on the open market for
an aggregate amount of $19.4 million under its existing Repurchase
Plan. The purchases were funded from cash on hand and operating
cash flows.
Quarterly Dividend Declaration
The Company announced today a cash dividend of $0.30 per share of
its outstanding common stock. The dividend is payable on June 15,
2024, to stockholders of record on June 1, 2024. This cash dividend
is part of the previously announced annual cash dividend of $1.20
per share payable in quarterly payments and subject to quarterly
review and evaluation by the Company’s Board of Directors.
Forward-Looking Statements This
press release contains forward-looking statements within the
meaning of the safe harbor provisions of the U.S. Private
Securities Litigation Reform Act of 1995. Forward-looking
statements can be identified by words such as "plan," "believe,"
"expect," "seem," "look," "look forward," "positioning," "future,"
"will," "confident" and similar references to future periods.
Example of forward-looking statements include, among others,
statements we make regarding: (i) the continuing strength of our
balance sheet and our expected free cash flow; (ii) our
expectations regarding continuing our dividend payments in the
future; (iii) our expectations regarding the cash flow we expect
generate to fund our one-time cash dividend to stockholders; (iv)
our beliefs regarding the strengths of the local markets we serve
in Reno and Black Hawk; (v) our expectations regarding the
completion of room renovations at the Atlantis; and (vi) our
beliefs regarding the impact of our capital investment strategy on
our long term success. Actual results and future events and
conditions may differ materially from those described in any
forward-looking statements. Therefore, you should not rely on any
of these forward-looking statements. Important factors that could
cause actual results to differ materially from estimates or
projections contained in the forward-looking statements include,
without limitation:
- adverse impacts of outbreaks of
contagious diseases on our business, financial condition and
operating results;
- actions taken by government
officials at the federal, state and/or local level with respect to
the containment of disease outbreaks, including, without
limitation, temporary or extended shutdowns, travel restrictions,
social distancing and shelter-in-place orders;
- our ability to manage guest safety
concerns in connection with an outbreak of contagious
diseases;
- our ability to maintain compliance
with the terms and conditions of our credit facilities and other
material contracts in the event of any unexpected or unplanned
events, such as temporary or extended shutdowns;
- access to available and reasonable
financing on a timely basis;
- our ability to maintain strong
working relationships with our regulators, employees, lenders,
suppliers, insurance carriers, customers, and other
stakeholders;
- impacts of any uninsured
losses;
- changes in guest visitation or
spending patterns due to economic conditions, health or other
concerns;
- construction factors, including
delays, disruptions, availability of labor and materials, increased
costs of labor and materials, contractor disagreements, zoning
issues, environmental restrictions, soil and water conditions,
weather and other hazards, site access matters, building permit
issues and other regulatory approvals or issues;
- ongoing disagreements over costs of
and responsibility for delays and other construction related
matters with our general contractor at Monarch Casino Resort Spa
Black Hawk, PCL Construction Services, Inc., including, as
previously reported, the litigation against us by such
contractor;
- claims for construction defects,
breach of contract, breach of warranty, fraud, fraudulent
inducement, negligence or other construction related claims that we
may have in connection with construction and completion of Monarch
Casino Resort Spa Black Hawk and any adverse impacts on operations
required to correct the same;
- the outcome of our litigation
against the general contractor of Monarch Casino Resort Spa Black
Hawk, PCL Construction Services, Inc., in the above-mentioned
litigation in which litigation the parties are currently awaiting
the Court’s decision following the trial on the matter;
- our potential need to post bonds or
other forms of surety to support our legal remedies;
- risks related to development and
construction activities (including disputes with and defaults by
contractors and subcontractors; construction, equipment or staffing
problems and delays; shortages of materials or skilled labor;
environmental, health and safety issues; weather and other hazards,
site access matters, and unanticipated cost increases);
- our ability to generate sufficient
operating cash flow to help finance our expansion plans and any
subsequent debt reduction;
- changes in laws mandating increases
in minimum wages and employee benefits;
- changes in laws and regulations
permitting expanded and other forms of gaming in our key
markets;
- the effects of local and national
economic, credit and capital market conditions on the economy in
general and on the gaming industry and our business in particular,
including predictions for a potential recession;
- the effects of labor shortages on
our market position, growth and financial results;
- the potential of increases in state
and federal taxation;
- potential of increased regulatory
and other burdens;
- guest acceptance of our expanded
facilities once completed and the resulting impact on our market
position, growth and financial results;
- competition in our target market
areas;
- broad-based inflation, including
wage inflation; and
- the impact of the conflicts taking
place in Ukraine and Israel.
Additional information concerning potential
factors that could adversely affect all forward-looking statements,
including the Company's financial results, is included in our
Securities and Exchange Commission filings, including our most
recent annual report on Form 10-K and quarterly reports on Form
10-Q, which are available on our website at
www.monarchcasino.com.
About Monarch Casino & Resort,
Inc. Monarch Casino & Resort, Inc., through its
subsidiaries, owns and operates the Monarch Casino Resort Spa
("Monarch Black Hawk") in Black Hawk, Colorado, approximately 40
miles west of Denver and the Atlantis Casino Resort Spa
("Atlantis"), a hotel/casino facility in Reno, Nevada. For
additional information on Monarch, visit the Company's website at
www.monarchcasino.com.
Monarch Black Hawk features approximately 60,000
square feet of casino space; approximately 1,000 slot machines; 43
table games; a live poker room; a keno; and a sports book. The
resort also includes 10 bars and lounges, as well as four dining
options: a twenty-four-hour full-service restaurant, a buffet-style
restaurant, the Monarch Chophouse (a fine-dining steakhouse), and
Bistro Mariposa (elevated Southwest cuisine). The resort offers 516
guest rooms and suites, banquet and meeting room space, a retail
store, a concierge lounge and an upscale spa and enclosed
year-round pool facility located on the top floor of the tower. The
resort is connected to a nine-story parking structure with
approximately 1,350 parking spaces, and additional valet parking,
with total property capacity of approximately 1,500 spaces.
Atlantis features approximately 61,000 square
feet of casino space; 817 guest rooms and suites; eight food
outlets; two gourmet coffee and pastry bars; a 30,000 square foot
health spa and salon with an enclosed year-round pool; retail
outlet offering clothing and traditional gift shop merchandise; an
8,000 square-foot family entertainment center; and approximately
52,000 square feet of banquet, convention and meeting room space.
The casino features approximately 1,200 slot and video poker
machines; approximately 33 table games, including blackjack, craps,
roulette, and others; a race and sports book; a 24-hour live keno
lounge; and a poker room.
Contacts: John Farahi Chief
Executive Officer 775/824-4401 or jfarahi@monarchcasino.com
Joseph Jaffoni, Richard Land, James Leahy JCIR
212/835-8500 or mcri@jcir.com
- financial tables follow -
|
MONARCH CASINO & RESORT, INC. AND
SUBSIDIARIES |
CONSOLIDATED STATEMENTS OF INCOME |
(In thousands, except per share data) |
|
|
|
Three months ended March 31, |
|
|
2024 |
|
2023 |
|
|
(Unaudited) |
|
(Unaudited) |
Revenues |
|
|
|
|
Casino |
|
$ |
69,436 |
|
|
$ |
66,905 |
|
Food and beverage |
|
|
30,163 |
|
|
|
29,317 |
|
Hotel |
|
|
16,774 |
|
|
|
15,471 |
|
Other |
|
|
5,284 |
|
|
|
4,951 |
|
Net revenues |
|
|
121,657 |
|
|
|
116,644 |
|
|
|
|
|
|
Operating expenses |
|
|
|
|
Casino |
|
|
26,352 |
|
|
|
25,252 |
|
Food and beverage |
|
|
22,575 |
|
|
|
21,937 |
|
Hotel |
|
|
5,978 |
|
|
|
6,390 |
|
Other |
|
|
2,908 |
|
|
|
2,943 |
|
Selling, general and administrative |
|
|
27,074 |
|
|
|
25,116 |
|
Depreciation and amortization |
|
|
12,487 |
|
|
|
11,337 |
|
Other operating items, net |
|
|
473 |
|
|
|
510 |
|
Total operating expenses |
|
|
97,847 |
|
|
|
93,485 |
|
Income from operations |
|
|
23,810 |
|
|
|
23,159 |
|
Interest income (expense), net |
|
|
7 |
|
|
|
(587) |
|
Income before income taxes |
|
|
23,817 |
|
|
|
22,572 |
|
Provision for income taxes |
|
|
(5,542) |
|
|
|
(4,902) |
|
Net income |
|
$ |
18,275 |
|
|
$ |
17,670 |
|
|
|
|
|
|
Earnings per share of common stock |
|
|
|
|
Net income |
|
|
|
|
Basic |
|
$ |
0.95 |
|
|
$ |
0.92 |
|
Diluted |
|
$ |
0.93 |
|
|
$ |
0.90 |
|
|
|
|
|
|
Weighted average number of common shares and potential common
shares outstanding |
|
|
|
|
Basic |
|
|
19,284 |
|
|
|
19,215 |
|
Diluted |
|
|
19,659 |
|
|
|
19,654 |
|
MONARCH CASINO & RESORT, INC. AND
SUBSIDIARIES |
CONSOLIDATED BALANCE SHEET |
(In thousands, except per share data) |
|
|
|
March 31, 2024 |
|
December 31, 2023 |
ASSETS |
|
(unaudited) |
|
|
Current assets |
|
|
|
|
Cash and cash equivalents |
|
$ |
39,484 |
|
|
$ |
43,361 |
|
Receivables, net |
|
|
10,265 |
|
|
|
11,990 |
|
Income taxes receivable |
|
|
- |
|
|
|
1,006 |
|
Inventories |
|
|
7,366 |
|
|
|
7,614 |
|
Prepaid expenses |
|
|
9,347 |
|
|
|
10,995 |
|
Total current assets |
|
|
66,462 |
|
|
|
74,966 |
|
Property and equipment, net |
|
|
585,434 |
|
|
|
580,497 |
|
Goodwill |
|
|
25,111 |
|
|
|
25,111 |
|
Intangible assets, net |
|
|
258 |
|
|
|
299 |
|
Total assets |
|
$ |
677,265 |
|
|
$ |
680,873 |
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
Current liabilities |
|
|
|
|
Current maturities of long-term debt |
|
$ |
5,500 |
|
|
$ |
- |
|
Accounts payable |
|
|
21,448 |
|
|
|
23,092 |
|
Construction accounts payable |
|
|
47,256 |
|
|
|
47,566 |
|
Income taxes payable |
|
|
4,536 |
|
|
|
- |
|
Accrued expenses |
|
|
50,509 |
|
|
|
51,812 |
|
Short-term lease liability |
|
|
919 |
|
|
|
897 |
|
Total current liabilities |
|
|
130,168 |
|
|
|
123,367 |
|
Deferred income taxes |
|
|
23,084 |
|
|
|
23,084 |
|
Long-term lease liability |
|
|
13,779 |
|
|
|
14,021 |
|
Long-term debt |
|
|
- |
|
|
|
5,500 |
|
Other long-term liabilities |
|
|
1,321 |
|
|
|
1,761 |
|
Total liabilities |
|
|
168,352 |
|
|
|
167,733 |
|
Stockholders' equity |
|
|
|
|
Preferred stock, $.01 par value, 10,000,000 shares authorized; none
issued |
|
|
- |
|
|
|
- |
|
Common stock, $.01 par value, 30,000,000 shares
authorized; 19,174,278 shares issued; 18,830,036 outstanding
at March 31, 2024; 19,154,031 shares issued and 19,091,497
outstanding at December 31, 2023 |
|
|
192 |
|
|
|
191 |
|
Additional paid-in capital |
|
|
51,568 |
|
|
|
48,821 |
|
Treasury stock, 344,242 shares at March 31, 2024; 62,534 shares
at December 31, 2023 |
|
|
(23,292) |
|
|
|
(3,718) |
|
Retained earnings |
|
|
480,445 |
|
|
|
467,846 |
|
Total stockholders' equity |
|
|
508,913 |
|
|
|
513,140 |
|
Total liabilities and stockholders' equity |
|
$ |
677,265 |
|
|
$ |
680,873 |
|
MONARCH CASINO & RESORT, INC. AND
SUBSIDIARIES |
RECONCILIATION OF ADJUSTED EBITDA TO NET
INCOME |
(In thousands, unaudited) |
|
The following table sets forth a reconciliation of Adjusted EBITDA,
a non-GAAP financial measure, to net income, a GAAP financial
measure: |
|
|
|
Three Months Ended March 31, |
|
|
2024 |
|
2023 |
Net income |
|
$ |
18,275 |
|
|
$ |
17,670 |
|
Expenses: |
|
|
|
|
Stock based compensation |
|
|
1,778 |
|
|
|
1,474 |
|
Depreciation and amortization |
|
|
12,487 |
|
|
|
11,337 |
|
Provision for income taxes |
|
|
5,542 |
|
|
|
4,902 |
|
Interest income (expense), net |
|
|
(7) |
|
|
|
587 |
|
Construction litigation expenses (2) |
|
|
510 |
|
|
|
510 |
|
Gain on disposition of assets (2) |
|
|
(37) |
|
|
|
- |
|
Adjusted EBITDA (1) |
|
$ |
38,548 |
|
|
$ |
36,480 |
|
|
(1) Adjusted EBITDA, a non-GAAP financial measure, consists of
net income plus loss on disposal of assets, provision for income
taxes, stock-based compensation expense, other one-time charges,
pre-opening expenses, construction litigation expenses, acquisition
expenses, interest expense, depreciation and amortization less
interest income, any benefit for income taxes and gain on disposal
of assets. Adjusted EBITDA should not be construed as an
alternative to operating income (as determined in accordance with
US Generally Accepted Accounting Principles), as an indicator of
Monarch's operating performance, as an alternative to cash flows
from operating activities (as determined in accordance with US
GAAP) or as a measure of liquidity. This measure enables comparison
of Monarch's performance over multiple periods, as well as against
the performance of other companies in our industry that report
Adjusted EBITDA, although some companies do not calculate this
measure in the same manner and, therefore, the measure as presented
may not be comparable to similarly titled measures presented by
other companies. Monarch defines Adjusted EBITDA margin as Adjusted
EBITDA divided by Net revenue. |
(2) Amount included in the “Other operating items, net” on the
Consolidated Statement of Income. |
Grafico Azioni Monarch Casino and Resort (NASDAQ:MCRI)
Storico
Da Giu 2024 a Lug 2024
Grafico Azioni Monarch Casino and Resort (NASDAQ:MCRI)
Storico
Da Lug 2023 a Lug 2024