- EPS Beats 2003 Record Second Quarter by $0.21 -
RENO, Nev., July 26 /PRNewswire-FirstCall/ -- Monarch Casino & Resort,
Inc. (Nasdaq: MCRI) (the "Company") continued its formidable run of positive
growth today when it announced an all-time Company record for the quarter
ended June 30, 2004. The Company's net income, earnings per share, EBITDA
(1), casino revenue, hotel revenue, and net revenue during the 2004 second
quarter shattered all such previous quarterly results.
The Company generated net income of $4,352,013, or $0.46 per diluted
share, in the second quarter ended June 30, 2004, an 86.7% improvement over
net income of $2,331,109, or $0.25 per diluted share, in the second quarter of
2003. EBITDA (1) for the second quarter was $9,528,821, or 37.5% better than
the $6,927,868 EBITDA (1) from the second quarter last year.
Second quarter 2004 casino revenue of $20,944,838 beat last year's second
quarter record of $18,614,452 by 12.5%. The improvement in casino revenue was
attributable to overall increases in the volume of play at the Company's
Atlantis Casino Resort in Reno, combined with slightly higher hold percentages
in all casino areas. Hotel revenue was $6,434,299 in the second quarter ended
June 30, 2004, a 16.8% improvement over last year's $5,507,037 second quarter
hotel revenue. This improvement was mainly due to an increase in the average
daily room rate and was supported by an increase in the occupancy at the
hotel. Second quarter food and beverage revenue grew 8.1% to $9,440,893 from
$8,736,201 achieved in last year's second quarter.
The significant increases in casino, hotel and food and beverage revenues
contributed to an 11.6% increase in gross revenues during the second quarter,
which, combined with an increase in promotional allowances of only 5.9%, led
to a 12.5% improvement in net revenue during the 2004 second quarter over the
2003 second quarter. Operating expenses in the quarter ended June 30, 2004,
increased only 3.9% as compared to the quarter ended June 30, 2003, resulting
in a 63.7% increase in income from operations. Interest expense decreased by
14.3% over last year's second quarter as a direct result of lower outstanding
indebtedness, and, as of February 20, 2004, Monarch ceased incurring any
stockholder guarantee fees, as its new credit facility does not require the
personal guarantees of the Company's principal stockholders.
John Farahi, Monarch's Chief Executive Officer and Co-Chairman explained :
"Our all-time record numbers during this second quarter clearly reflect on our
property as one of the premier casino resorts in northern Nevada. Our entire
team has worked very hard to deliver a superior product in a tight market and
all team members are to be congratulated. We have welcomed and accommodated a
growing clientele to the Atlantis while successfully managing our expenses. I
am especially proud of the flow through resulting in improved margins in
almost every department. The resulting improvement to cash flow has been
partially re-invested into the property by way of capital improvements in
order to continuously offer a competitive product. We have also taken
advantage of this increased cash flow to aggressively pay down our debt."
During the three months ended June 30, 2004, the Company reduced outstanding
debt by approximately $6.6 million.
Monarch Casino & Resort, Inc., through its wholly-owned subsidiary, owns
and operates the tropically-themed Atlantis Casino Resort in Reno, Nevada.
The Atlantis is the closest hotel-casino to and is directly across the street
from the Reno-Sparks Convention Center. The Atlantis is recognizable due to
its Sky Terrace, a unique structure rising approximately 55 feet from street
level and spanning 160 feet across the street with no intermediate support
pillars. The Sky Terrace connects the Atlantis to a 16-acre parcel of land
owned by the Company, that is compliant with all casino zoning requirements
and is suitable and available for future expansion of the Atlantis facilities
and is currently being used by the Company as additional paved parking for the
Atlantis. The existing Atlantis site offers almost 1,000 guest rooms in three
contiguous high-rise hotel towers and a motor lodge. The tropically-themed
Atlantis features approximately 51,000 square feet of high-energy casino space
with 37 table games and approximately 1,450 slot and video poker machines, a
sports book, Keno and a poker room, and offers a variety of dining choices in
the form of nine high-quality food outlets.
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 and (ii) the financial benefits that may result from
future operations. The actual results 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.
Contacts: Ben Farahi at (775) 825-3355 or benfarahi@monarchcasino.com
Karl G. Brokmann at (775) 825-3355 or
kbrokmann@monarchcasino.com
For additional information including artist renditions and photographs,
visit Monarch's web site at monarchcasino.com.
(1) "EBITDA" consists of net income plus provision for income taxes,
other expenses (income), and depreciation and amortization. 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,
or as an alternative to cash flows from operating activities (as
determined in accordance with generally accepted accounting
principles) as a measure of liquidity. This item enables comparison
of the Company's performance with the performance of other companies
that report 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 Casino & Resort, Inc.
Condensed Consolidated Statements of Income
Three Months Ended Six Months Ended
June 30, June 30,
2004 2003 2004 2003
(UNAUDITED) (UNAUDITED) (UNAUDITED) (UNAUDITED)
Revenues
Casino $20,944,838 $18,614,452 $40,847,689 $36,354,157
Food and
beverage 9,440,893 8,736,201 18,266,716 16,947,609
Hotel 6,434,299 5,507,037 11,952,604 10,223,215
Other 945,812 989,068 1,808,842 1,871,813
Gross revenues 37,765,842 33,846,758 72,875,851 65,396,794
Less Promotional
allowances (5,051,841) (4,771,688) (9,675,872) (9,156,796)
Net revenues 32,714,001 29,075,070 63,199,979 56,239,998
Operating
Expenses
Casino 7,666,678 7,358,723 15,107,349 14,484,826
Food and
beverage 4,817,753 4,475,173 9,209,475 8,598,911
Hotel 1,988,888 1,738,320 4,056,875 3,384,299
Other 376,191 308,676 694,654 613,242
Selling,
general and
administrative 8,335,670 8,266,310 16,855,076 16,115,494
Depreciation and
amortization 2,636,131 2,716,420 5,639,490 5,316,829
Total
operating
expenses 25,821,311 24,863,622 51,562,919 48,513,601
Income from
operations 6,892,690 4,211,448 11,637,060 7,726,397
Other expense
Interest expense (361,677) (422,203) (791,638) (872,083)
Stockholder
guarantee
fee expense -- (260,936) (136,164) (542,278)
Total
other expense (361,677) (683,139) (927,802) (1,414,361)
Income before
income taxes 6,531,013 3,528,309 10,709,258 6,312,036
Provision for
income taxes 2,179,000 1,197,200 3,599,000 2,143,000
Net income $4,352,013 $2,331,109 $7,110,258 $4,169,036
Earnings per
share of
common stock
Net income
Basic $0.46 $0.25 $0.76 $0.44
Diluted $0.46 $0.25 $0.76 $0.44
Weighted average
number of common
shares and
potential common
shares outstanding
Basic 9,372,603 9,331,877 9,358,670 9,399,716
Diluted 9,399,580 9,361,060 9,390,727 9,431,942
Monarch Casino & Resort, Inc.
Condensed Consolidated Balance Sheets
June 30, December 31,
2004 2003
ASSETS (UNAUDITED)
Current assets
Cash $10,530,729 $9,711,310
Receivables, net 3,058,752 2,818,727
Federal income tax refund receivable -- 756,698
Inventories 1,168,302 1,245,967
Prepaid expenses 2,271,708 2,234,773
Deferred income taxes 542,457 542,457
Total current assets 17,571,948 17,309,932
Property and equipment
Land 10,339,530 10,339,530
Land improvements 3,226,913 3,226,913
Buildings 78,955,538 78,955,538
Building improvements 7,060,680 6,304,642
Furniture & equipment 64,116,953 63,230,354
163,699,614 162,056,977
Less accumulated depreciation and
amortization (65,527,631) (63,618,047)
Net property and equipment 98,171,983 98,438,930
Other assets, net 452,456 128,263
Total assets 116,196,387 115,877,125
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Current maturities of long-term debt $1,585,304 $6,059,591
Accounts payable 7,212,867 8,407,887
Accrued expenses 6,531,616 6,707,257
Federal income taxes payable 1,643,461 --
Total current liabilities 16,973,248 21,174,735
Long-term debt, less current maturities 38,275,000 41,125,000
Deferred income taxes 4,933,427 4,854,587
Commitments and contingencies
Stockholders' equity
Preferred stock, $.01 par value,
10,000,000 shares authorized; none issued -- --
Common stock, $.01 par value,
30,000,000 shares authorized;
9,536,275 shares issued;
9,377,024 outstanding at 06/30/04,
9,340,328 at 12/31/03 95,363 95,363
Additional paid-in capital 17,345,057 17,432,635
Treasury stock, 159,251 shares at
06/30/04, 195,947 shares at 12/31/03,
at cost (1,168,385) (1,437,614)
Retained earnings 39,742,677 32,632,419
Total stockholders' equity 56,014,712 48,722,803
Total liabilities and stockholders' equity $116,196,387 $115,877,125
Monarch Casino & Resort, Inc.
Reconciliation of Net Income to EBITDA (1)
Three Months Ended Six Months Ended
June 30, June 30,
2004 2003 2004 2003
(unaudited) (unaudited) (unaudited) (unaudited)
Net income $4,352,013 $2,331,109 $7,110,258 $4,169,036
Adjustments
Provision for
income taxes 2,179,000 1,197,200 3,599,000 2,143,000
Stockholder
guarantee fee
expense -- 260,936 136,164 542,278
Interest expense 361,677 422,203 791,638 872,083
Depreciation &
amortization 2,636,131 2,716,420 5,639,490 5,316,829
EBITDA (1) $9,528,821 $6,927,868 $17,276,550 $13,043,226
(1) "EBITDA" consists of net income plus provision for income taxes,
other expenses (income), and depreciation and amortization. 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,
or as an alternative to cash flows from operating activities (as
determined in accordance with generally accepted accounting
principles) as a measure of liquidity. This item enables comparison
of the Company's performance with the performance of other companies
that report 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.
SOURCE Monarch Casino & Resort, Inc.
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Related links:
http://www.monarchcasino.com
CONTACT:
Ben Farahi, benfarahi@monarchcasino.com, or
Karl G. Brokmann, kbrokmann@monarchcasino.com, both of Monarch
Casino & Resort, Inc., +1-775-825-3355
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