Monarch Casino & Resort Reports Record First Quarter 2024 Financial Results
MCRI
RENO, Nev., April 17, 2024 (GLOBE NEWSWIRE) -- 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:
CEO CommentJohn 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:
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 [email protected]
Joseph Jaffoni, Richard Land, James Leahy JCIR 212/835-8500 or [email protected]
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