Monarch Casino & Resort Reports Record 2021 Fourth Quarter

RENO, Nev., Feb. 09, 2022 (GLOBE NEWSWIRE) — Monarch Casino & Resort, Inc. (Nasdaq: MCRI) (“Monarch” or “the Company”) as we speak reported report working outcomes for the fourth quarter and full yr ended December 31, 2021, as summarized beneath:

($ in hundreds, besides per share information and percentages)

2020 comparability

2019 comparability

For the good thing about our stockholders, we additionally embrace the beneath comparability to 2019 to indicate “pre-COVID” info⁽²⁾:

CEO Comment
John Farahi, Co-Chairman and Chief Executive Officer of Monarch, commented: “Our fourth quarter results capped a year of significant operational and financial accomplishments for Monarch. In 2021, we successfully transformed our Monarch Black Hawk into a full-scale casino resort spa. On May 1, 2021, we immediately took advantage of the elimination of betting limits in Black Hawk and expanded our game mix. At Atlantis in Reno, we completed the redesign and upgrade of our high-end suites on the top two floors of the concierge hotel tower. We believe that all these factors contributed to record fourth quarter and full year financial results. We are honored to have received the prestigious distinction by Forbes, ranking Monarch 39^th on the list of America’s Best Small Companies.

“New COVID variants continue to create labor market shortages and wage pressure, resulting in increased labor costs. In addition, supply chain constraints and price inflation continued to impact our operating costs.

“Net revenue and Adjusted EBITDA in the fourth quarter of 2021 were $111.1 million and $39.0 million, respectively, and were both fourth quarter records. Our full year net revenue and Adjusted EBITDA of $395.4 million and $137.3 million, respectively, were both all-time records. We also achieved record fourth quarter and full year Adjusted EBITDA margin of 35.1% and 34.7%, respectively.

“Our Monarch Black Hawk operations continued to ramp up in the fourth quarter. In mid-December 2021, we opened an all-new sports book, lounge and bar along with additional casino space within the legacy facility. In the coming days, we expect to debut a new specialty restaurant, which will provide our guests with an outstanding dining experience while increasing restaurant seating capacity at the property by approximately 35%. We continue to gain noticeable market share and attract high value players from across Colorado’s Front Range, who had previously traveled to other markets, such as Las Vegas, for a high-end casino entertainment experience. We remain extremely bullish on the trajectory of the property’s performance.

“The Reno economy remains robust, while gaming remains extremely competitive. Winter weather impacted certain weekends in December 2021, limiting access to Reno for our California-based guests.

“At Atlantis, we have begun the redesign and upgrade of the hotel rooms in the first tower and expect to complete this project by mid-2022. Our consistent capital investment at Atlantis remains a key part of our ongoing strategy to deliver an exceptional guest experience.

“We expect that 2022 will be another year of strong operating performance and financial results. We continue to evaluate acquisition opportunities where we can fully leverage our development expertise and operational excellence. We remain committed to deploying capital in a manner that will position Monarch to grow and build long-term value for our loyal stockholders.”

Summary of 2021 Fourth Quarter Operating Results
In the 2021 fourth quarter, the Company generated web income of $111.1 million, a rise of 90.3% from $58.4 million within the prior-year quarter. Casino, meals and beverage (“F&B”), and resort income elevated 74.1%, 111.4% and 156.6% year-over-year, respectively. The enhance in income was pushed primarily by the ramp up of operations on the Company’s resort and expanded on line casino in Black Hawk. In the fourth quarter of 2020, each Atlantis and Black Hawk revenues had been impacted by pandemic-related capability and different regulatory limitations which remained in impact following the properties’ reopening.

Selling, basic and administrative (“SG&A”) bills for the fourth quarter of 2021 had been $22.2 million in comparison with $18.5 million within the prior-year interval, pushed primarily by extra SG&A bills to help the expanded Monarch Casino Resort Spa Black Hawk and by a rise in total labor expense. As a share of web income, SG&A expense decreased to twenty.0% in comparison with 31.6% within the prior-year interval. Casino working expense as a share of on line casino income elevated to 34.0% throughout the fourth quarter of 2021 from 30.0% within the prior-year interval, primarily because of enhance in promotional bills at Monarch Black Hawk. F&B working expense as a share of F&B income decreased to 78.2% throughout the fourth quarter of 2021 from 88.1% within the prior-year interval because of an effort to align menu costs with elevated commodity costs and labor prices. Hotel working expense as a share of resort income decreased to 40.1% within the fourth quarter of 2021 in comparison with 60.6% in the identical interval a yr in the past, primarily because of the increased common every day price (ADR) within the present interval.

Income from operations for the fourth quarter of 2021 elevated 395.0% in comparison with the identical interval final yr. Net earnings elevated 30.2% and diluted EPS elevated 27.5%, as Net earnings within the fourth quarter of 2020 was positively impacted by a $10.3 million tax profit. The Company generated consolidated Adjusted EBITDA of $39.0 million, a rise of $25.1 million, or 180.7%, over the identical interval a yr in the past. The enhance within the EBITDA represents a 47.7% circulation via of web income.

Credit Facility and Liquidity
Capital expenditures of $16.1 million within the fourth quarter of 2021 primarily included development prices associated to the continuing renovation of a portion of the legacy Monarch Casino Resort Spa Black Hawk constructing and ongoing renovations at Atlantis. Capital expenditures had been funded from working money flows. The Company expensed $0.7 million of curiosity within the fourth quarter of 2021 in comparison with $0.3 million within the fourth quarter of 2020.

During the fourth quarter of 2021, the Company made $18 million in principal funds on its Term Loan Facility. As of December 31, 2021, the Company had an excellent principal steadiness of $90 million underneath the Term Loan and had no borrowings excellent underneath its $70 million Revolving Credit Facility.

Forward Looking Statements
This press launch comprises forward-looking statements throughout the that means of the secure harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements might be recognized by phrases similar to “plan,” “anticipate,” “believe,” “expect,” “seem,” “look,” “look forward,” “positioning,” “considering,” “future,” “will,” “confident” and comparable references to future intervals. Example of forward-looking statements embrace, amongst others, statements we make relating to: (i) our anticipated working outcomes and energy of our steadiness sheet; (ii) our expectations relating to the expansion and energy of the Reno and Black Hawk markets and our capacity to extend market share and profit from such development; (iii) our beliefs relating to the standard of our merchandise and visitor companies in Reno and Black Hawk, together with as a premier vacation spot gaming resort in Colorado; (iv) our expectations relating to the renovations at our resorts and the anticipated timing of the completion of such development; (v) our expectations relating to the continued ramp up of our expanded resort and enhanced facilities at Monarch Casino Resort Spa Black Hawk and the timing of the opening of the brand new specialty restaurant; and (vi) our expectations relating to our future place in, and share of, the gaming market and the standard of service we offer to our visitors. Actual outcomes and future occasions and situations might differ materially from these described in any forward-looking statements. Therefore, you shouldn’t depend on any of those forward-looking statements. Important elements that might trigger precise outcomes to vary materially from estimates or projections contained within the forward-looking statements embrace, with out limitation:

• persevering with adversarial impacts of the COVID-19 pandemic and any variants thereof (“COVID-19”) on our business, development tasks, monetary situation and working outcomes;
• persevering with actions by authorities officers on the federal, state and/or native stage with respect to steps to be taken, together with, with out limitation, short-term or prolonged shutdowns, journey restrictions, mask-covering mandates, social distancing and shelter-in-place orders, in reference to the COVID-19 pandemic;
• any potential lower in visitor visitations following the pent-up demand attributable to COVID-19;
• any adversarial affect on the U.S. economy which can end result from recurring federal authorities stimulus efforts to handle COVID-19 shutdowns and layoffs, similar to inflation;
• our capacity to handle visitor security considerations attributable to COVID-19;
• our capacity to successfully handle and management bills throughout short-term or prolonged shutdown intervals;
• affect of short-term or prolonged shutdowns on our capacity to keep up compliance with the phrases and situations of our credit score amenities and different materials contracts;
• entry to accessible and cheap financing on a well timed foundation;
• our capacity to keep up robust working relationships with our regulators, staff, lenders, suppliers, insurance carriers, clients, and different stakeholders;
• affect of any uninsured losses;
• adjustments in visitor visitation or spending patterns because of well being or different considerations;
• development elements, together with delays, disruptions, availability of labor and supplies, elevated prices of labor and supplies, contractor disagreements, zoning points, environmental restrictions, soil and water situations, climate and different hazards, website entry issues, constructing allow points and different regulatory approvals or points;
• ongoing disagreements over prices of and accountability for delays and different development associated issues with our Monarch Casino Resort Spa Black Hawk basic contractor, PCL Construction Services, Inc., together with, as beforehand reported, the litigation in opposition to us by such contractor;
• claims for development defects, breach of contract, breach of guarantee, fraud, fraudulent inducement, negligence or different development associated claims that we might have in reference to development and completion of Monarch Casino Resort Spa Black Hawk and any adversarial impacts on operations required to appropriate the identical;
• our submitting of affirmative defenses and intensive counterclaims in opposition to the Monarch Casino Resort Spa Black Hawk contractor, PCL Construction Services, Inc., within the above-mentioned litigation through which litigation the events are presently conducting discovery, and investigation of the claims by and in opposition to us is subsequently ongoing;
• our potential have to put up bonds or different types of surety to help our authorized treatments;
• dangers associated to growth and development actions (together with disputes with and defaults by contractors and subcontractors; development, gear or staffing issues and delays; shortages of supplies or expert labor; environmental, well being and issues of safety; climate and different hazards, website entry issues, and unanticipated value will increase);
• our capacity to generate ample working money circulation to assist finance our growth plans and subsequent debt discount;
• the impacts of inflationary pressures on our working prices and bills, in addition to our capacity to move value will increase alongside to our clients;
• adjustments in legal guidelines mandating will increase in minimal wages and worker advantages;
• adjustments in legal guidelines and laws allowing expanded and different types of gaming in our key markets;
• the impacts of the potential outbreak of hostilities similar to these threatened in Eastern Europe;
• the results of native and nationwide financial, credit score and capital market situations on the economy basically and on the gaming trade and our business particularly;
• the results of labor shortages and provide chain interruptions on our market place, development and monetary outcomes;
• the potential of will increase in state and federal taxation to handle budgetary and different impacts of the COVID-19 pandemic;
• the potential of elevated regulatory and different burdens to handle the direct and oblique impacts of COVID-19 pandemic;
• visitor acceptance of our expanded amenities as soon as accomplished and the ensuing affect on our market place, development and monetary outcomes; and
• competitors in our goal market areas.

Additional info regarding potential elements that might adversely have an effect on all forward-looking statements, together with the Company’s monetary outcomes, is included in our Securities and Exchange Commission filings, together with our most up-to-date annual report on Form 10-Ok and quarterly reviews on Form 10-Q, which can be found on our web site at www.monarchcasino.com. 

About Monarch Casino & Resort, Inc.
Monarch Casino & Resort, Inc., via its subsidiaries, owns and operates the Atlantis Casino Resort Spa, a resort/on line casino facility in Reno, Nevada, and the Monarch Casino Resort Spa Black Hawk in Black Hawk, Colorado, roughly 40 miles west of Denver. For extra info on Monarch, go to the Company’s web site at www.monarchcasino.com.

The Atlantis options roughly 61,000 sq. ft of on line casino house; 818 visitor rooms and suites; eight meals retailers; two gourmand espresso and pastry bars; a 30,000 sq. foot well being spa and salon with an enclosed year-round pool; two stores providing clothes and conventional present store merchandise; an 8,000 square-foot household leisure heart; and roughly 52,000 sq. ft of banquet, conference and assembly room house. The on line casino options roughly 1,400 slot and video poker machines; roughly 37 desk video games, together with blackjack, craps, roulette, and others; a race and sports activities e book; a 24-hour reside keno lounge; and a poker site.

Monarch Casino Resort Spa Black Hawk options roughly 60,000 sq. ft of on line casino house; greater than 1,000 slot machines; roughly 40 desk video games; a reside poker site; a keno counter; and a sports activities e book. The resort additionally consists of 10 bars and lounges, in addition to 4 new eating choices together with a twenty-four-hour full-service restaurant, Java and many others. (a espresso and sandwich outlet), buffet-style restaurant and the Monarch Chophouse (a fine-dining steakhouse). Bistro Mariposa (elevated Southwest delicacies) will open in February 2022. The resort provides 516 visitor rooms and suites, banquet and assembly room house, a retail retailer, a concierge lounge and an upscale spa and pool facility situated on the highest flooring of the tower. The resort is linked to a nine-story parking construction with roughly 1,350 parking areas, and extra valet parking, with complete property capability of roughly 1,500 areas.

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]

– monetary tables observe –

MONARCH CASINO & RESORT, INC. AND SUBSIDIARIES
RECONCILIATION OF ADJUSTED EBITDA TO NET INCOME
(In hundreds, unaudited)

The following desk units forth a reconciliation of Adjusted EBITDA, a non-GAAP monetary measure, to web earnings, a GAAP monetary measure: