RENO, NV, Apr 18, 2012 (MARKETWIRE via COMTEX) –
Monarch Casino Resort, Inc.
/quotes/zigman/54462/quotes/nls/mcri MCRI
+3.25%
(“Monarch”), owner of
the Atlantis Casino Resort Spa (the “Atlantis”) in Reno, Nevada,
today announced first quarter results for the quarter ended March 31,
2012.
The Company’s net revenue of $34.6 million was $1.3 million, or 3.9%,
higher than the $33.3 million reported for the comparative quarter in
2011. The Company’s quarterly income from operations of $2.9 million
was an increase of 7.4% over the prior year’s first quarter. Adjusted
EBITDA(1) of $6.6 million was $55 thousand, or 0.8%, higher than the
$6.5 million Adjusted EBITDA in the first quarter of the prior year.
First quarter 2012 revenue generated in the casino, food and
beverage, and other operating departments increased by 8.4%, 4.9% and
12.5%, respectively, over the prior year’s first quarter. However,
first quarter 2012 hotel revenue decreased by 12.7% primarily due to
a significant convention that traditionally had been held in Reno not
doing so in 2012. On a positive note, that convention has announced
that it plans to return to Reno in the first quarter of 2013.
Casino operating expense increased by approximately $419 thousand, or
4.4%, over the prior year’s first quarter primarily due to an
increase in the amount of complimentary food, beverages and other
services provided to casino patrons (“complimentaries”). As a
percentage of casino revenue, casino operating expense decreased to
39.3% as compared to 40.8% in the prior year’s first quarter,
primarily due to the effect of the higher casino revenue partially
offset by the higher complimentaries.
Food and beverage operating expense as a percentage of food and
beverage revenue decreased to 44.6% for the quarter as compared to
46.5% in the first quarter of the prior year primarily due to menu
price increases in response to higher commodity costs. Hotel
operating expense as a percentage of hotel revenue increased slightly
to 29.6% from 28.6% in prior year’s first quarter. Selling, general,
and administrative expense for the first quarter of 2012 increased by
$853 thousand, or 7.8%, due primarily to increased marketing, payroll
benefits and bad debt expense.
During the quarter, the Company paid down the balance outstanding
under its credit facility by $5.7 million, which decreased the
outstanding balance of the credit facility from $24.7 million at
December 31, 2011 to $19.0 million at March 31, 2012. Interest
expense increased from $289 thousand in the prior year’s first
quarter to $329 thousand in the quarter ended March 31, 2012 due
primarily to higher loan commitment fees paid on the unborrowed
portion of the Company’s credit facility.
Monarch’s CEO and Co-Chairman John Farahi commented: “”The closing of
our acquisition of the Riviera Black Hawk Casino remains on track to
take place before the end of the second quarter of 2012.”
Monarch, through its subsidiary Monarch Growth Inc., has entered into
a definitive stock purchase agreement to acquire Riviera Black Hawk,
Inc., the owner of the Riviera Black Hawk Casino (the “Acquisition”).
The Riviera Black Hawk Casino opened in 2000 and is located in Black
Hawk, Colorado, approximately 40 miles west of Denver. The property
is the first casino encountered by visitors arriving from Denver on
Highway 119 and features approximately 32,000 square feet of casino
space, 750 slot machines, 8 table games, a 250 seat buffet-style
restaurant and a parking structure with approximately 500 spaces.
Monarch owns a 1.5 acre land parcel contiguous to the Riviera Black
Hawk Casino which can be utilized for future expansion.
Monarch Casino Resort, Inc., through its subsidiary, Golden Road
Motor Inn, Inc., owns and operates the Atlantis Casino Resort Spa, a
hotel/casino facility in Reno, Nevada which features approximately
61,000 square feet of casino space; 824 guest rooms; eight food
outlets; two espresso and pastry bars; a 30,000 square foot health
spa and salon with an enclosed year-round pool; two retail outlets
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 1,450 slot and video poker machines;
approximately 38 table games, including blackjack, craps, roulette,
and others; a race and sports book; a 24-hour live keno lounge and a
poker room. The Company and its predecessors have operated a facility
on the Atlantis site since 1972.
This press release contains forward-looking statements within the
meaning of Section 21E of the Securities Exchange Act of 1934 which
are subject to change, including, but not limited to, comments
relating to (i) future operating performance; (ii) economic and
market conditions, (iii) the liquidity requirements of the Company,
(iv) completion of the Acquisition, (v) plans, objectives and
expectations regarding the Acquisition, and (vi) integration of the
Acquisition. Actual results and future events and conditions may
differ materially from those described in any forward-looking
statements. Additional information concerning potential factors that
could affect the Company’s financial results is included in the
Company’s Securities and Exchange Commission filings, which are
available on the Company’s web site at
www.monarchcasino.com .
(1) “Adjusted EBITDA” – see the separate Reconciliation of Net Income
to Adjusted EBITDA. Adjusted EBITDA should not be construed as an
alternative to operating income (as determined in accordance with
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 generally
accepted accounting principles) or as a measure of liquidity. This
item enables comparison of the Company’s performance with the
performance of other companies 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.
For additional information visit Monarch’s website at
MonarchCasino.com
Monarch Casino Resort, Inc.
Condensed Consolidated Statements of Income
(Unaudited)
Three Months Ended
March 31,
----------------------------------
2012 2011
---------------- ----------------
Revenues
Casino $ 25,171,556 $ 23,212,686
Food and beverage 10,585,794 10,092,738
Hotel 4,368,442 5,004,041
Other 2,137,356 1,899,262
---------------- ----------------
Gross revenues 42,263,148 40,208,727
Less promotional allowances (7,633,056) (6,922,911)
---------------- ----------------
Net revenues 34,630,092 33,285,816
---------------- ----------------
Operating expenses
Casino 9,895,587 9,476,307
Food and beverage 4,725,753 4,688,557
Hotel 1,295,194 1,428,953
Other 726,224 733,946
Selling, general and administrative 11,759,972 10,907,228
Depreciation and amortization 3,375,084 3,394,386
---------------- ----------------
Total operating expenses 31,777,814 30,629,377
---------------- ----------------
Income from operations 2,852,278 2,656,439
---------------- ----------------
Other expenses
Interest expense (328,661) (288,522)
---------------- ----------------
Total other expense (328,661) (288,522)
---------------- ----------------
Income before income taxes 2,523,617 2,367,917
Provision for income taxes (882,250) (828,771)
---------------- ----------------
Net income $ 1,641,367 $ 1,539,146
================ ================
Earnings per share of common stock
Net income
Basic $ 0.10 $ 0.10
Diluted $ 0.10 $ 0.09
Weighted average number of common shares
and potential common shares outstanding
Basic 16,138,158 16,138,158
Diluted 16,274,355 16,222,989
Monarch Casino Resort, Inc.
Condensed Consolidated Balance Sheets
March 31, December 31,
---------------- ----------------
2012 2011
---------------- ----------------
ASSETS (Unaudited)
Current assets
Cash and cash equivalents $ 11,172,854 $ 13,582,659
Receivables, net 2,563,049 2,299,847
Inventories 1,968,048 2,165,109
Prepaid expenses and other current
assets 6,624,273 6,198,882
Deferred income taxes 615,912 615,912
---------------- ----------------
Total current assets 22,944,136 24,862,409
---------------- ----------------
Property and equipment
Land 19,214,847 19,214,847
Land improvements 6,359,279 6,359,279
Buildings 135,643,298 135,643,298
Building improvements 11,575,883 11,575,883
Furniture and equipment 118,744,444 117,300,741
Leasehold improvements 1,346,965 1,346,965
---------------- ----------------
292,884,716 291,441,013
Less accumulated depreciation and
amortization (141,602,952) (138,227,868)
---------------- ----------------
Net property and equipment 151,281,764 153,213,145
Other assets, net 1,416,371 1,524,050
---------------- ----------------
Total assets $ 175,642,271 $ 179,599,604
================ ================
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable $ 7,091,171 $ 8,693,395
Accrued expenses 14,382,328 13,829,540
Federal income taxes payable 1,650,890 768,640
---------------- ----------------
Total current liabilities 23,124,389 23,291,575
---------------- ----------------
Long-term debt 18,980,000 24,680,000
Deferred income taxes 1,112,049 1,112,049
---------------- ----------------
Total liabilities 43,216,438 49,083,624
---------------- ----------------
Stockholders' equity
Preferred stock, $.01 par value,
10,000,000 shares authorized; none
issued - -
Common stock, $.01 par value,
30,000,000 shares authorized;
19,096,300 shares issued; 16,138,158
outstanding at March 31, 2012 and
December 31, 2012 190,963 190,963
Additional paid-in capital 33,446,831 33,178,345
Treasury stock, 2,958,142 shares at
March 31, 2012 and December 31, 2012,
at cost (48,541,663) (48,541,663)
Retained earnings 147,329,702 145,688,335
---------------- ----------------
Total stockholders' equity 132,425,833 130,515,980
---------------- ----------------
Total liability and stockholder's
equity $ 175,642,271 $ 179,599,604
================ ================
Monarch Casino Resort, Inc.
Reconciliation of Net Income to Adjusted EBITDA (1)
(Unaudited)
Three Months Ended
March 31,
-----------------------------
2012 2011
-------------- --------------
Net income $ 1,641,367 $ 1,539,146
Adjustments
Provision for income taxes 882,250 828,771
Interest expense 328,661 288,522
Depreciation and amortization 3,375,084 3,394,386
-------------- --------------
EBITDA 6,227,362 6,050,825
Stock based compensation 268,485 464,881
Acquisition expense 74,591 -
-------------- --------------
Adjusted EBITDA (1) $ 6,570,438 $ 6,515,706
============== ==============
(1) “Adjusted EBITDA” consists of net income plus provision for income
taxes, stock based compensation expense, other one-time non-cash
charges, interest expense, depreciation and amortization less
interest income and any benefit for income taxes. Adjusted EBITDA
should not be construed as an alternative to operating income (as
determined in accordance with 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 generally accepted accounting
principles) or as a measure of liquidity. This item enables
comparison of the Company’s performance with the performance of other
companies 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.
Contacts:
Lee Hernandez
Director of Planning Analysis
(775) 825-4700
Email Contact
Ron Rowan
CFO of Monarch
(775) 825-4700
Email Contact
John Farahi
CEO of Monarch
(775) 825-4700
Email Contact
SOURCE: Monarch Casino and Resort, Inc.
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