Monarch Casino & Resort, Inc. (Nasdaq: MCRI) (“Monarch” or “the
Company”) today reported operating results for the third quarter
ended September 30, 2024, as summarized below:
($ in thousands, except per share data and
percentages)
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
2024 |
|
2023 |
|
Change |
|
2024 |
|
2023 |
|
Change |
Net revenue |
$137,873 |
|
$132,965 |
|
3.7 |
% |
|
$387,673 |
|
$373,292 |
|
3.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Net
income |
$27,601 |
|
$24,163 |
|
14.2 |
% |
|
$68,558 |
|
$64,246 |
|
6.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA(1) |
$50,643 |
|
$49,221 |
|
2.9 |
% |
|
$133,114 |
|
$127,829 |
|
4.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Basic
earnings per share |
$1.50 |
|
$1.26 |
|
19.0 |
% |
|
$3.67 |
|
$3.34 |
|
9.9 |
% |
Diluted
earnings per share |
$1.47 |
|
$1.23 |
|
19.5 |
% |
|
$3.60 |
|
$3.27 |
|
10.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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: “Our
2024 third quarter results were strong, reflecting the strength and
player appeal of our properties, amenities and service level. Third
quarter net revenue and adjusted EBITDA were $137.9 million and
$50.6 million, respectively, resulting in an EBITDA margin of
36.7%.
“Monarch Black Hawk continues to grow market
share and increase revenue across all its business segments. We
believe we can drive continued growth for the property by building
additional awareness for our luxury resort offerings and
exceptional service among mid-to-upper tier players throughout the
greater Denver and Boulder metro areas.
“In Reno, we continue to invest in facility
upgrades to elevate our competitiveness in the market while
delivering attractive returns on invested capital. In this regard,
the remaining 246 hotel rooms at Atlantis should be fully
redesigned and upgraded by the second quarter of 2025. At the same
time, we are focused on reducing costs, especially labor costs, by
applying new technologies and improving processes, which supports
our goal of delivering strong margins.”
Summary of 2024 Third Quarter Operating
Results In the 2024 third quarter, the Company generated
net revenue of $137.9 million compared to $133.0 million in the
corresponding prior-year period, representing $4.9 million, or
3.7%, year-over-year increase in net revenue. Casino and hotel
revenues increased 3.4% and 5.0% year-over-year, respectively,
while food and beverage (“F&B”) revenues decreased 0.2%
year-over-year.
Selling, general and administrative (“SG&A”)
expenses for the third quarter of 2024 were $27.2 million, or 19.7%
of net revenue, compared to $27.1 million, or 20.4% of net revenue,
in the corresponding prior-year period. Casino operating expense as
a percentage of casino revenue increased to 36.3% during the third
quarter of 2024 compared to 34.5% in the corresponding prior-year
period primarily due to an increased labor expense. F&B
operating expense as a percentage of F&B revenue increased to
72.8% during the third quarter of 2024 compared to 70.8% in the
corresponding prior-year period due to increase cost of goods sold
and operating supplies expense. Hotel operating expense as a
percentage of hotel revenue decreased to 33.8% in the third quarter
of 2024 compared to 34.8% in the corresponding prior-year period
primarily due to effective cost management.
Net income for the third quarter of 2024
increased by $3.4 million, or 14.2%, and diluted EPS increased by
$0.24, or 19.5%, compared to the corresponding prior-year period.
The Company generated consolidated Adjusted EBITDA of $50.6
million, a $1.4 million, or 2.9%, increase compared to the same
period a year ago.
Credit Facility and Liquidity
As of September 30, 2024, the Company had cash and cash equivalents
of $39.4 million and an outstanding principal balance of $7.0
million under its credit facility.
Capital expenditures of $3.8 million in the
third quarter of 2024 were funded from operating cash flow, and
included capital expenditures related to the ongoing redesign and
upgrade of guest rooms at Atlantis as well as ongoing maintenance
capital expenditures at both properties.
On September 15, 2024, the Company paid a cash
dividend of $0.30 per share to its stockholders of record on
September 1, 2024. The cash dividend was funded from operating cash
flow.
In the third quarter of 2024, the Company
purchased 131,285 shares of its common stock on the open market for
an aggregate amount of $9.6 million under its existing Repurchase
Plan. The purchases were funded from operating cash flow.
Monarch’s strong balance sheet and free cash
flow favorably positions the Company to continue investing in its
properties, paying cash dividends, and buying back stock under its
existing stock repurchase authorization. The Company continues to
diligently evaluate potential M&A transactions, which we
believe can drive additional long-term value for our
stockholders.
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 December
15, 2024, to stockholders of record on December 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 to
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; (vi) our beliefs
regarding the impact of our capital investment strategy and
evaluation of potential strategic transactions on our long term
success and (vii) our beliefs regarding the impact of our targeted
marketing focus on certain tiers of players in the Denver Boulder
markets. 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,
including those claims asserted in the above-mentioned litigation
against PCL Construction Services, Inc.;
- 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 516 guest rooms and
suites, and approximately 60,000 square feet of casino space. The
resort offers approximately 1,000 slot machines; 43 table games; a
live poker room; keno; and a sports book. It 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), 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 817 guest rooms and suites,
and approximately 61,000 square feet of casino 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. It also includes 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.
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 OPERATIONS |
(In thousands,
except per share data; unaudited) |
|
|
Three months ended September 30, |
|
Nine months ended September 30, |
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
|
|
|
|
|
|
Revenues |
|
|
|
|
|
|
|
Casino |
$ |
76,307 |
|
|
$ |
73,818 |
|
|
$ |
216,720 |
|
|
$ |
209,578 |
|
Food and beverage |
|
32,888 |
|
|
|
32,970 |
|
|
|
94,893 |
|
|
|
93,812 |
|
Hotel |
|
21,642 |
|
|
|
20,608 |
|
|
|
58,147 |
|
|
|
54,173 |
|
Other |
|
7,036 |
|
|
|
5,569 |
|
|
|
17,913 |
|
|
|
15,729 |
|
Net revenues |
|
137,873 |
|
|
|
132,965 |
|
|
|
387,673 |
|
|
|
373,292 |
|
|
|
|
|
|
|
|
|
Operating
expenses |
|
|
|
|
|
|
|
Casino |
|
27,676 |
|
|
|
25,473 |
|
|
|
80,801 |
|
|
|
76,471 |
|
Food and beverage |
|
23,938 |
|
|
|
23,330 |
|
|
|
70,002 |
|
|
|
68,070 |
|
Hotel |
|
7,306 |
|
|
|
7,176 |
|
|
|
19,891 |
|
|
|
20,107 |
|
Other |
|
3,171 |
|
|
|
2,820 |
|
|
|
9,005 |
|
|
|
8,549 |
|
Selling, general and administrative |
|
27,177 |
|
|
|
27,091 |
|
|
|
80,449 |
|
|
|
77,162 |
|
Depreciation and amortization |
|
13,103 |
|
|
|
12,197 |
|
|
|
37,994 |
|
|
|
35,152 |
|
Other operating items, net |
|
225 |
|
|
|
2,976 |
|
|
|
931 |
|
|
|
3,012 |
|
Total operating expenses |
|
102,596 |
|
|
|
101,063 |
|
|
|
299,073 |
|
|
|
288,523 |
|
Income from operations |
|
35,277 |
|
|
|
31,902 |
|
|
|
88,600 |
|
|
|
84,769 |
|
|
|
|
|
|
|
|
|
Interest expense, net |
|
(145 |
) |
|
|
(369 |
) |
|
|
(349 |
) |
|
|
(1,736 |
) |
Income before income taxes |
|
35,132 |
|
|
|
31,533 |
|
|
|
88,251 |
|
|
|
83,033 |
|
Provision
for income taxes |
|
(7,531 |
) |
|
|
(7,370 |
) |
|
|
(19,693 |
) |
|
|
(18,787 |
) |
Net income |
$ |
27,601 |
|
|
$ |
24,163 |
|
|
$ |
68,558 |
|
|
$ |
64,246 |
|
|
|
|
|
|
|
|
|
Earnings per
share of common stock |
|
|
|
|
|
|
|
Basic |
$ |
1.50 |
|
|
$ |
1.26 |
|
|
$ |
3.67 |
|
|
$ |
3.34 |
|
Diluted |
$ |
1.47 |
|
|
$ |
1.23 |
|
|
$ |
3.60 |
|
|
$ |
3.27 |
|
|
|
|
|
|
|
|
|
Weighted
average number of common shares and potential common shares
outstanding |
|
|
|
|
|
|
|
Basic |
|
18,404 |
|
|
|
19,252 |
|
|
|
18,681 |
|
|
|
19,237 |
|
Diluted |
|
18,746 |
|
|
|
19,608 |
|
|
|
19,039 |
|
|
|
19,627 |
|
|
MONARCH
CASINO & RESORT, INC. AND SUBSIDIARIES |
CONSOLIDATED
BALANCE SHEET |
(In thousands,
except per share data) |
|
|
September 30, 2024 |
|
December 31, 2023 |
ASSETS |
(unaudited) |
|
|
Current
assets |
|
|
|
Cash and cash equivalents |
$ |
39,380 |
|
|
$ |
43,361 |
|
Receivables, net |
|
11,892 |
|
|
|
11,990 |
|
Income taxes receivable |
|
49 |
|
|
|
1,006 |
|
Inventories |
|
7,659 |
|
|
|
7,614 |
|
Prepaid expenses |
|
9,354 |
|
|
|
10,995 |
|
Total current assets |
|
68,334 |
|
|
|
74,966 |
|
Property and
equipment, net |
|
577,518 |
|
|
|
580,497 |
|
Goodwill |
|
25,111 |
|
|
|
25,111 |
|
Intangible
assets, net |
|
177 |
|
|
|
299 |
|
Total assets |
$ |
671,140 |
|
|
$ |
680,873 |
|
LIABILITIES
AND STOCKHOLDERS' EQUITY |
|
|
|
Current liabilities |
|
|
|
Current maturities of long-term debt |
$ |
7,000 |
|
|
$ |
- |
|
Accounts payable |
|
13,318 |
|
|
|
23,092 |
|
Construction accounts payable |
|
48,983 |
|
|
|
47,566 |
|
Accrued expenses |
|
49,853 |
|
|
|
51,812 |
|
Short-term lease liability |
|
945 |
|
|
|
897 |
|
Total current liabilities |
|
120,099 |
|
|
|
123,367 |
|
Deferred
income taxes |
|
23,084 |
|
|
|
23,084 |
|
Long-term
lease liability |
|
13,356 |
|
|
|
14,021 |
|
Long-term
debt |
|
- |
|
|
|
5,500 |
|
Other
long-term liabilities |
|
1,321 |
|
|
|
1,761 |
|
Total liabilities |
|
157,860 |
|
|
|
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; |
|
193 |
|
|
|
191 |
|
19,296,464 shares issued and 18,368,473 outstanding at September
30, 2024; |
|
|
|
19,154,031 shares issued and 19,091,497 outstanding at December 31,
2023 |
|
|
|
Additional paid-in capital |
|
57,174 |
|
|
|
48,821 |
|
Treasury stock, 927,991 shares at September 30, 2024; 62,534 shares
at |
|
(63,749 |
) |
|
|
(3,718 |
) |
December 30, 2023; |
|
|
|
Retained earnings |
|
519,662 |
|
|
|
467,846 |
|
Total stockholders' equity |
|
513,280 |
|
|
|
513,140 |
|
Total liabilities and stockholders' equity |
$ |
671,140 |
|
|
$ |
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 EndedSeptember 30, |
|
Nine Months Ended September 30, |
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
Net income |
$ |
27,601 |
|
$ |
24,163 |
|
$ |
68,558 |
|
$ |
64,246 |
|
Expenses: |
|
|
|
|
|
|
|
Stock based compensation |
|
2,038 |
|
|
2,146 |
|
|
5,589 |
|
|
4,896 |
|
Depreciation and amortization |
|
13,103 |
|
|
12,197 |
|
|
37,994 |
|
|
35,152 |
|
Provision for income taxes |
|
7,531 |
|
|
7,370 |
|
|
19,693 |
|
|
18,787 |
|
Interest expense |
|
145 |
|
|
369 |
|
|
349 |
|
|
1,736 |
|
Construction litigation expenses (2) |
|
21 |
|
|
2,946 |
|
|
664 |
|
|
4,119 |
|
Insurance claims proceeds (2) |
|
- |
|
|
- |
|
|
- |
|
|
(1,195 |
) |
Loss (gain) on disposition of assets (2) |
|
204 |
|
|
30 |
|
|
267 |
|
|
88 |
|
Adjusted EBITDA (1) |
$ |
50,643 |
|
$ |
49,221 |
|
$ |
133,114 |
|
$ |
127,829 |
|
(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
the Company'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 the Company'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. |
(2) |
Amount included in the "Other
operating items, net" in the Consolidated Statement of Income. |
Monarch Casino and Resort (NASDAQ:MCRI)
過去 株価チャート
から 10 2024 まで 11 2024
Monarch Casino and Resort (NASDAQ:MCRI)
過去 株価チャート
から 11 2023 まで 11 2024