Monarch Casino & Resort Reports Record Second Quarter 2024 Financial Results
Monarch Casino & Resort (Nasdaq: MCRI) reported record financial results for Q2 2024, with net revenue increasing 3.6% to $128.1 million and adjusted EBITDA growing 4.3% to $43.9 million. The company saw growth across all business segments at Monarch Black Hawk, while Atlantis completed upgrades to 125 hotel rooms. Key financial highlights include:
- Net income up 1.2% to $22.7 million
- Diluted EPS increased 4.4% to $1.19
- Adjusted EBITDA margin improved to 34.3%
The company declared a quarterly cash dividend of $0.30 per share, payable on September 15, 2024. Monarch also repurchased 452,464 shares for $30.5 million in Q2 2024.
Monarch Casino & Resort (Nasdaq: MCRI) ha riportato risultati finanziari record per il secondo trimestre del 2024, con ricavi netti in aumento del 3,6% a $128,1 milioni e EBITDA rettificato cresciuto del 4,3% a $43,9 milioni. L'azienda ha registrato una crescita in tutti i segmenti di business al Monarch Black Hawk, mentre Atlantis ha completato l'aggiornamento di 125 camere d'hotel. I principali risultati finanziari includono:
- Utile netto in aumento dell'1,2% a $22,7 milioni
- EPS diluito aumentato del 4,4% a $1,19
- Margine EBITDA rettificato migliorato al 34,3%
L'azienda ha dichiarato un dividendo in contante trimestrale di $0,30 per azione, pagabile il 15 settembre 2024. Monarch ha anche riacquistato 452.464 azioni per $30,5 milioni nel secondo trimestre del 2024.
Monarch Casino & Resort (Nasdaq: MCRI) reportó resultados financieros récord para el segundo trimestre de 2024, con ingresos netos aumentando un 3.6% hasta $128.1 millones y EBITDA ajustado creciendo un 4.3% hasta $43.9 millones. La compañía vio crecimiento en todos los segmentos de negocio en Monarch Black Hawk, mientras que Atlantis completó mejoras en 125 habitaciones de hotel. Los principales aspectos financieros incluyen:
- Ingreso neto aumentó un 1.2% a $22.7 millones
- EPS diluido aumentó un 4.4% a $1.19
- Margen de EBITDA ajustado mejorado al 34.3%
La compañía declaró un dividendo en efectivo trimestral de $0.30 por acción, pagadero el 15 de septiembre de 2024. Monarch también recompró 452,464 acciones por $30.5 millones en el segundo trimestre de 2024.
모나크 카지노 & 리조트 (Nasdaq: MCRI)는 2024년 2분기에 기록적인 재무 성과를 보고하였으며, 순수익은 3.6% 증가하여 1억 2810만 달러에 이르렀고 조정 EBITDA는 4.3% 증가하여 4390만 달러에 달했습니다. 회사는 모나크 블랙 호크의 모든 비즈니스 부문에서 성장을 보았고 아틀란티스는 125개의 호텔 객실 업그레이드를 완료했습니다. 주요 재무 하이라이트는 다음과 같습니다:
- 순이익 1.2% 증가하여 2270만 달러
- 희석 주당순이익(EPS) 4.4% 증가하여 1.19달러
- 조정 EBITDA 마진 34.3%로 개선
회사는 주당 0.30달러의 분기 현금 배당금을 선언하였으며, 이는 2024년 9월 15일에 지급될 예정입니다. 모나크는 또한 2024년 2분기에 452,464 주를 3,050만 달러에 재매입하였습니다.
Monarch Casino & Resort (Nasdaq: MCRI) a annoncé des résultats financiers record pour le deuxième trimestre 2024, avec un chiffre d'affaires net en hausse de 3,6%, atteignant 128,1 millions de dollars, et un EBITDA ajusté en croissance de 4,3%, atteignant 43,9 millions de dollars. L'entreprise a enregistré une croissance dans tous les segments d'activité au Monarch Black Hawk, tandis qu'Atlantis a finalisé la modernisation de 125 chambres d'hôtel. Les principaux faits financiers incluent :
- Bénéfice net en hausse de 1,2% à 22,7 millions de dollars
- BPA dilué en hausse de 4,4% à 1,19 dollar
- Marche d'EBITDA ajusté amélioré à 34,3%
L'entreprise a déclaré un dividende en espèces trimestriel de 0,30 dollar par action, payable le 15 septembre 2024. Monarch a également racheté 452 464 actions pour 30,5 millions de dollars au deuxième trimestre 2024.
Monarch Casino & Resort (Nasdaq: MCRI) berichtete von rekordverdächtigen finanziellen Ergebnissen für das 2. Quartal 2024, mit einem Anstieg des Nettoumsatzes um 3,6% auf 128,1 Millionen USD und einem Anstieg des adjustierten EBITDA um 4,3% auf 43,9 Millionen USD. Das Unternehmen verzeichnete in allen Geschäftssegmenten bei Monarch Black Hawk Wachstum, während Atlantis Verbesserungen an 125 Hotelzimmern abgeschlossen hat. Die wichtigsten finanziellen Eckdaten umfassen:
- Nettogewinn um 1,2% auf 22,7 Millionen USD gestiegen
- Verwässerter Gewinn pro Aktie um 4,4% auf 1,19 USD gestiegen
- Adjustierte EBITDA-Marge auf 34,3% verbessert
Das Unternehmen erklärte eine vierteljährliche Bar-Dividende von 0,30 USD pro Aktie, die am 15. September 2024 fällig ist. Monarch hat im 2. Quartal 2024 auch 452.464 Aktien für 30,5 Millionen USD zurückgekauft.
- Record Q2 net revenue of $128.1 million, up 3.6% year-over-year
- Adjusted EBITDA increased 4.3% to $43.9 million
- Diluted EPS grew 4.4% to $1.19
- Improved adjusted EBITDA margin to 34.3% from 34.1% in the prior year
- Monarch Black Hawk generated revenue growth across all business segments
- Declared quarterly cash dividend of $0.30 per share
- SG&A expenses increased to 20.4% of net revenue from 20.2% in the prior year
- Casino operating expense as a percentage of casino revenue increased to 37.7% from 37.4%
- F&B operating expense as a percentage of F&B revenue increased to 73.8% from 72.3%
Insights
Monarch Casino & Resort's Q2 2024 results demonstrate a solid performance in a competitive market environment. The company reported record Q2 net revenue of
The growth was primarily driven by Monarch Black Hawk, which saw revenue increases across all business segments. This property's success in attracting mid- and upper-tier players from the Denver market is a positive sign for future growth potential.
Atlantis, while facing a competitive Reno market, is undergoing significant renovations. The completion of 125 redesigned hotel rooms is part of a broader strategy to enhance the property's appeal. This ongoing investment, set to finish by Q2 2025, could position Atlantis well for future growth, though short-term disruptions may impact performance.
The company's financial position remains strong, with
However, investors should note the slight increase in SG&A expenses as a percentage of revenue and the rise in casino operating expenses. These could pressure margins if not managed carefully in the future.
Monarch's Q2 2024 results reflect the broader trends in the regional casino market. The
The success of Monarch Black Hawk in attracting higher-tier players from Denver highlights the importance of location and target market segmentation in the casino industry. This property's performance could serve as a case study for other regional casinos looking to tap into affluent urban markets.
The ongoing room renovations at Atlantis represent a significant investment in the property's future. While this may cause short-term disruptions, it's a necessary step to remain competitive in the Reno market. The Wine Spectator awards for both properties' restaurants also underscore Monarch's commitment to offering a high-quality, diverse experience beyond gaming.
The company's capital allocation strategy, balancing property investments, dividends and share repurchases, appears well-aligned with current market expectations for mature gaming companies. The
Looking ahead, Monarch's mention of potential M&A activity is intriguing. In a consolidating industry, strategic acquisitions could provide new avenues for growth and geographic diversification, potentially reducing the company's reliance on its two current properties.
Declares Cash Dividend of
RENO, Nev., July 24, 2024 (GLOBE NEWSWIRE) -- Monarch Casino & Resort, Inc. (Nasdaq: MCRI) (“Monarch,” “we,” “our,” or “the Company”) today reported record financial results for the second quarter ended June 30, 2024, as summarized below:
($ in thousands, except per share data and percentages)
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||
2024 | 2023 | Increase | 2024 | 2023 | Increase | ||||||||||||
Net revenue | $ | 128,143 | $ | 123,683 | 3.6 | % | $ | 249,800 | $ | 240,327 | 3.9 | % | |||||
Net income | 22,682 | 22,413 | 1.2 | % | 40,957 | 40,083 | 2.2 | % | |||||||||
Adjusted EBITDA(1) | $ | 43,923 | $ | 42,128 | 4.3 | % | $ | 82,471 | $ | 78,608 | 4.9 | % | |||||
Basic EPS | $ | 1.21 | $ | 1.16 | 4.3 | % | $ | 2.16 | $ | 2.08 | 3.8 | % | |||||
Diluted EPS | $ | 1.19 | $ | 1.14 | 4.4 | % | $ | 2.12 | $ | 2.04 | 3.9 | % |
(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 2024 second quarter, net revenue and adjusted EBITDA grew to all-time second quarter records of
“Monarch Black Hawk generated revenue growth across all its business segments and expanded its adjusted EBITDA margin. The property continued to attract mid- and upper- tier players from the greater Denver market. Recently, the property’s Bistro Mariposa and Monarch Chophouse were honored with Wine Spectator's Best of Award of Excellence, joining Bistro Napa and Atlantis Steakhouse at Atlantis in receiving a prestigious Wine Spectator award.
“At Atlantis, during the 2024 second quarter, we completed the redesign and upgrade of 125 additional hotel rooms, leaving us with 246 total rooms to complete. We intend to have all 817 hotel rooms and suites redesigned and upgraded by the end of the second quarter of 2025. While Reno remains a very competitive market, we believe our focus on operational efficiency and property enhancements through major capital investments will keep us competitive and will be financially rewarding over the long-term.”
Summary of 2024 Second Quarter Operating Results
In the 2024 second quarter, the Company generated net revenue of
Selling, general and administrative (“SG&A”) expenses for the second quarter of 2024 were
In the 2024 second quarter, net income increased
Credit Facility and Liquidity
As of June 30, 2024, the Company had cash and cash equivalents of
Capital expenditures of
On June 15, 2024, the Company paid a cash dividend of
In the second quarter of 2024, the Company purchased 452,464 shares of its common stock on the open market for an aggregate amount of
With a strong balance sheet and free cash flow, we believe that we are favorably positioned to continue investing in our properties, paying cash dividends, and buying back stock under our existing stock repurchase authorization. We also continue to diligently evaluate potential M&A transactions, which we believe can drive additional attractive long-term value for our stockholders.
Quarterly Dividend Declaration
The Company announced today a cash dividend of
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; and (vi) our beliefs regarding the impact of our capital investment strategy and evaluation of potential strategic transactions 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; 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
MONARCH CASINO & RESORT, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (In thousands, except per share data; Unaudited) | ||||||||||||||||
Three months ended June 30, | Six months ended June 30, | |||||||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||||||
Revenues | ||||||||||||||||
Casino | $ | 70,977 | $ | 68,855 | $ | 140,413 | $ | 135,760 | ||||||||
Food and beverage | 31,842 | 31,525 | 62,005 | 60,842 | ||||||||||||
Hotel | 19,731 | 18,094 | 36,505 | 33,565 | ||||||||||||
Other | 5,593 | 5,209 | 10,877 | 10,160 | ||||||||||||
Net revenues | 128,143 | 123,683 | 249,800 | 240,327 | ||||||||||||
Operating expenses | ||||||||||||||||
Casino | 26,773 | 25,746 | 53,125 | 50,998 | ||||||||||||
Food and beverage | 23,489 | 22,803 | 46,064 | 44,740 | ||||||||||||
Hotel | 6,607 | 6,541 | 12,585 | 12,931 | ||||||||||||
Other | 2,926 | 2,786 | 5,834 | 5,729 | ||||||||||||
Selling, general and administrative | 26,198 | 24,955 | 53,272 | 50,071 | ||||||||||||
Depreciation and amortization | 12,404 | 11,618 | 24,891 | 22,955 | ||||||||||||
Other operating items, net | 233 | (474 | ) | 706 | 36 | |||||||||||
Total operating expenses | 98,630 | 93,975 | 196,477 | 187,460 | ||||||||||||
Income from operations | 29,513 | 29,708 | 53,323 | 52,867 | ||||||||||||
Interest expense, net | (211 | ) | (780 | ) | (204 | ) | (1,367 | ) | ||||||||
Income before income taxes | 29,302 | 28,928 | 53,119 | 51,500 | ||||||||||||
Provision for income taxes | (6,620 | ) | (6,515 | ) | (12,162 | ) | (11,417 | ) | ||||||||
Net income | $ | 22,682 | $ | 22,413 | $ | 40,957 | $ | 40,083 | ||||||||
Earnings per share of common stock | ||||||||||||||||
Basic | $ | 1.21 | $ | 1.16 | $ | 2.16 | $ | 2.08 | ||||||||
Diluted | $ | 1.19 | $ | 1.14 | $ | 2.12 | $ | 2.04 | ||||||||
Weighted average number of common shares and potential common shares outstanding | ||||||||||||||||
Basic | 18,731 | 19,243 | 18,948 | 19,229 | ||||||||||||
Diluted | 19,090 | 19,618 | 19,315 | 19,636 |
MONARCH CASINO & RESORT, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEET (In thousands, except per share data) | ||||||||
June 30, 2024 | December 31, 2023 | |||||||
ASSETS | (unaudited) | |||||||
Current assets | ||||||||
Cash and cash equivalents | $ | 33,508 | $ | 43,361 | ||||
Receivables, net | 9,861 | 11,990 | ||||||
Income taxes receivable | 1,580 | 1,006 | ||||||
Inventories | 8,099 | 7,614 | ||||||
Prepaid expenses | 7,908 | 10,995 | ||||||
Total current assets | 60,956 | 74,966 | ||||||
Property and equipment, net | 586,091 | 580,497 | ||||||
Goodwill | 25,111 | 25,111 | ||||||
Intangible assets, net | 218 | 299 | ||||||
Total assets | $ | 672,376 | $ | 680,873 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
Current liabilities | ||||||||
Current maturities of long-term debt | $ | 23,000 | $ | - | ||||
Accounts payable | 17,398 | 23,092 | ||||||
Construction accounts payable | 47,827 | 47,566 | ||||||
Accrued expenses | 46,904 | 51,812 | ||||||
Short-term lease liability | 938 | 897 | ||||||
Total current liabilities | 136,067 | 123,367 | ||||||
Deferred income taxes | 23,084 | 23,084 | ||||||
Long-term lease liability | 13,537 | 14,021 | ||||||
Long-term debt | - | 5,500 | ||||||
Other long-term liabilities | 1,321 | 1,761 | ||||||
Total liabilities | 174,009 | 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; 19,206,377 shares issued; 18,409,671 outstanding at June 30, 2024; 19,154,031 shares issued and 19,091,497 outstanding at December 31, 2023 | 192 | 191 | ||||||
Additional paid-in capital | 54,674 | 48,821 | ||||||
Treasury stock, 796,706 shares at June 30, 2024; 62,534 shares at December 31, 2023 | (54,073 | ) | (3,718 | ) | ||||
Retained earnings | 497,574 | 467,846 | ||||||
Total stockholders' equity | 498,367 | 513,140 | ||||||
Total liabilities and stockholders' equity | $ | 672,376 | $ | 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 June 30, | Six Months Ended June 30, | ||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||
Net income | $ | 22,682 | $ | 22,413 | $ | 40,957 | $ | 40,083 | |||||
Expenses: | |||||||||||||
Stock based compensation | 1,773 | 1,276 | 3,551 | 2,750 | |||||||||
Depreciation and amortization | 12,404 | 11,618 | 24,891 | 22,955 | |||||||||
Provision for income taxes | 6,620 | 6,515 | 12,162 | 11,417 | |||||||||
Interest expense | 211 | 780 | 204 | 1,367 | |||||||||
Construction litigation expenses (2) | 133 | 663 | 643 | 1,173 | |||||||||
Insurance claims proceeds (2) | - | (1,195 | ) | - | (1,195 | ) | |||||||
Loss (gain) on disposition of assets (2) | 100 | 58 | 63 | 58 | |||||||||
Adjusted EBITDA (1) | $ | 43,923 | $ | 42,128 | $ | 82,471 | $ | 78,608 |
(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, 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. |
FAQ
What were Monarch Casino & Resort's Q2 2024 earnings results?
How much is Monarch Casino & Resort's quarterly dividend for Q2 2024?
What was MCRI's stock repurchase activity in Q2 2024?