Monarch Casino & Resort Reports Record First Quarter

RENO, Nev., April 20, 2022 (GLOBE NEWSWIRE) — Monarch Casino & Resort, Inc. (Nasdaq: MCRI) (“Monarch,” “we,” “our,” or “the Company”) in the present day reported report working outcomes for the primary quarter ended March 31, 2022, as summarized beneath:

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

(1) Definitions, disclosures and reconciliations of non-GAAP monetary data are included later within the launch.

CEO Comment
John Farahi, Co-Chairman and Chief Executive Officer of Monarch, commented: “Fiscal year 2022 is off to a strong start as we benefited from the full scope of operations at our newly expanded Monarch Black Hawk and the continued growth of market share at both properties. Our first quarter results also benefited from continued healthy overall macroeconomic trends. The labor market pressure and rising inflation could impact further near-term margins. Our teams continue to manage expenses effectively as we re-invest in our properties and grow our business.

“Net revenue and Adjusted EBITDA of $108.3 million and $34.3 million, respectively, were both first quarter records, as was our Adjusted EBITDA margin of 31.7%. We believe that our financial results demonstrate our operational excellence and confirm that our investment in Monarch Black Hawk is delivering exceptional returns.

“Our master plan expansion at Monarch Black Hawk was completed in the first quarter of 2022 with the opening of Bistro Mariposa, a dining venue offering elevated Southwest cuisine. Our market-leading resort continues to gain significant market share, particularly from the upper segment of the market. Following the elimination of betting limits in May 2021 and the additional table games variety, the property’s table games revenue continues to increase significantly. Our efforts to grow revenue and adjusted EBITDA at Monarch Black Hawk have only just begun and we are excited for the long-term growth opportunity of this property.

“In Reno, underlying market trends remain competitive, and we continue to invest in the property to ensure that our Atlantis resort remains at the pinnacle of Reno casino resort offerings. Atlantis’ first quarter financial results were impacted by construction work on the redesign and upgrade of approximately 20% of the room inventory at Atlantis. The project remains on schedule and is currently expected to be completed by the end of the second quarter of 2022.

“As we look to the balance of 2022, we intend to build on our strong operating performance in the first quarter, which traditionally is the slowest quarter of the year for us and for our markets. We continue to evaluate potential acquisitions where we can fully leverage our development and operating expertise to drive long-term value for our stockholders. Our future remains bright and we look forward to what promises to be an exciting 2022.”

Summary of 2022 First Quarter Operating Results
In the 2022 first quarter, the Company generated web income of $108.3 million, a rise of 44.5% from $75.0 million within the prior-year quarter. Casino, meals and beverage (“F&B”), and lodge revenues elevated 33.9%, 60.7% and 75.9% 12 months over 12 months, respectively. The improve in revenues was pushed primarily by the continued ramp up of operations on the Company’s lodge and expanded on line casino at Monarch Black Hawk. In the primary quarter of 2021, each Atlantis and Black Hawk revenues had been adversely impacted by pandemic-related capability and different regulatory limitations which remained in impact following the properties respective reopening.

Selling, common and administrative (“SG&A”) bills for the primary quarter of 2022 had been $24.2 million in comparison with $19.9 million within the prior-year interval, pushed primarily by further SG&A bills to help the expanded Monarch Black Hawk and will increase in promoting and promotional bills associated to the grand opening occasions at Monarch Black Hawk. As a proportion of web income, SG&A expense decreased to 22.3% in comparison with 26.6% within the prior-year interval. Casino working expense as a proportion of on line casino income elevated to 35.6% throughout the first quarter of 2022 from 29.0% within the prior-year interval, primarily as a result of will increase in gaming tax expense and labor expense. F&B working expense as a proportion of F&B income decreased to 79.6% throughout the first quarter of 2022 from 87.0% within the prior-year interval as a result of a change within the restaurant combine and improved administration of labor expense. Hotel working expense as a proportion of lodge income decreased to 38.0% within the first quarter of 2022 in comparison with 49.2% in the identical interval a 12 months in the past, primarily as a result of a rise in Average Daily Rate.

Income from operations for the primary quarter of 2022 elevated 89.2% in comparison with the identical interval final 12 months. Net earnings elevated 122.2% and diluted EPS elevated 119.0%. The Company generated first quarter 2022 consolidated Adjusted EBITDA of $34.3 million, a rise of $11.5 million, or 50.4%, over the identical interval a 12 months in the past. The improve within the Adjusted EBITDA represents an approximate 32% flow-through of web income.

Credit Facility and Liquidity
Capital expenditures of $23.7 million within the first quarter of 2022 primarily included the redesign and improve of the lodge rooms within the first tower at Atlantis in addition to ongoing upkeep capital spending at each properties. All capital expenditures had been funded from working money flows. The Company expensed $0.7 million of curiosity within the first quarter of 2022 in comparison with $1.6 million within the first quarter of 2021.

During the primary quarter of 2022, the Company made $10 million in principal funds on its Term Loan Facility. As of March 31, 2022, the Company had an impressive principal steadiness of $80 million beneath the Term Loan and had no excellent steadiness beneath its $70 million Revolving Credit Facility.

Forward-Looking Statements
This press launch comprises forward-looking statements inside the which means of the protected harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements may be recognized by phrases comparable to “plan,” “believe,” “expect,” “seem,” “look,” “look forward,” “positioning,” “future,” “will,” “confident” and comparable references to future intervals. Example of forward-looking statements embrace, amongst others, statements we make concerning: (i) our anticipated working outcomes; (ii) our perception that we’ve got adequate liquidity to fund all remaining building and litigation prices and ongoing capital expenditures; (iii) our perception that our business is well-positioned to learn from any post-pandemic restoration and wholesome macroeconomic developments; (iv) our expectation concerning the provision of future acquisition alternatives; (v) our beliefs concerning the standard of our merchandise and visitor providers in Reno and Black Hawk, together with as a premier vacation spot gaming resorts of their respective markets; (vi) our expectations concerning our visitors’ acceptance of the expanded on line casino, new lodge and enhanced facilities at Monarch Black Hawk; and (vii) our expectations concerning 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 could 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 would trigger precise outcomes to vary materially from estimates or projections contained within the forward-looking statements embrace, with out limitation:

• persevering with antagonistic impacts of the COVID-19 outbreak on our business, building 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, social distancing and shelter-in-place orders, in reference to the COVID-19 outbreak;
• 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;
• influence of short-term or prolonged shutdowns on our capacity to take care of compliance with the phrases and situations of our credit score amenities and different materials contracts;
• our capacity to barter aid choices and essential amendments to our Amended Credit Facility;
• entry to out there and affordable financing on a well timed foundation;
• our capacity to take care of sturdy working relationships with our regulators, workers, lenders, suppliers, insurance carriers, prospects, and different stakeholders;
• influence of any uninsured losses;
• modifications in visitor visitation or spending patterns as a result of well being or different considerations;
• building 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 building associated issues with our Monarch Casino Resort Spa Black Hawk common contractor, PCL Construction Services, Inc., together with, as beforehand reported, the litigation in opposition to us by such contractor;
• claims for building defects, breach of contract, breach of guarantee, fraud, fraudulent inducement, negligence or different building associated claims that we could have in reference to building and completion of Monarch Casino Resort Spa Black Hawk and any antagonistic impacts on operations required to appropriate the identical;
• our submitting of affirmative defenses and in depth counterclaims in opposition to the Monarch Casino Resort Spa Black Hawk contractor, PCL Construction Services, Inc., within the above-mentioned litigation by which litigation the events are at present conducting discovery, and investigation of the claims by and in opposition to us is due to this fact ongoing;
• our potential have to publish bonds or different types of surety to help our authorized treatments;
• dangers associated to growth and building actions (together with disputes with and defaults by contractors and subcontractors; building, tools 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 price will increase);
• our capacity to generate adequate working money stream to assist finance our enlargement plans and subsequent debt discount;
• modifications in legal guidelines mandating will increase in minimal wages and worker advantages;
• modifications in legal guidelines and laws allowing expanded and different types of gaming in our key markets;
• the results of native and nationwide financial, credit score and capital market situations on the economy typically and on the gaming business and our business particularly;
• the results of labor shortages on our market place, progress and monetary outcomes;
• the potential of will increase in state and federal taxation to deal with budgetary and different impacts of the COVID-19 pandemic;
• the potential of elevated regulatory and different burdens to deal with the direct and oblique impacts of COVID-19 pandemic;
• visitor acceptance of our expanded amenities as soon as accomplished and the ensuing influence on our market place, progress and monetary outcomes;
• competitors in our goal market areas;
• broad-based inflation, together with wage inflation; and
• the influence of the occasions occurring in Eastern Europe and the battle going down in Ukraine.

Additional data regarding potential elements that would 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-Okay and quarterly experiences 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., by its subsidiaries, owns and operates the Atlantis Casino Resort Spa (“Atlantis”), a lodge/on line casino facility in Reno, Nevada, and the Monarch Casino Resort Spa Black Hawk (“Monarch Black Hawk”) in Black Hawk, Colorado, roughly 40 miles west of Denver. For further data on Monarch, go to the Company’s web site at www.monarchcasino.com.

The Atlantis options roughly 61,000 sq. toes of on line casino area; 818 visitor rooms and suites; eight meals shops; 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 reward store merchandise; an 8,000 square-foot household leisure middle; and roughly 52,000 sq. toes of banquet, conference and assembly room area. 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.

The Monarch Black Hawk options roughly 60,000 sq. toes of on line casino area; 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 contains 10 bars and lounges, in addition to 5 eating choices: a twenty-four-hour full-service restaurant, Java and so on. (a espresso and sandwich outlet), a buffet-style restaurant, the Monarch Chophouse (a fine-dining steakhouse), and Bistro Mariposa (elevated Southwest delicacies). The resort affords 516 visitor rooms and suites, banquet and assembly room area, a retail retailer, a concierge lounge and an upscale spa and pool facility situated on the highest flooring of the tower. The resort is related to a nine-story parking construction with roughly 1,350 parking areas, and extra valet parking, with whole 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]

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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:
        

(1) Adjusted EBITDA, a non-GAAP monetary measure, consists of web earnings plus loss on disposal of belongings, provision for earnings taxes, stock-based compensation expense, different one-time costs, pre-opening bills, building litigation bills, acquisition bills, curiosity expense, depreciation and amortization much less curiosity earnings, any profit for earnings taxes and achieve on disposal of belongings. Adjusted EBITDA shouldn’t be construed as a substitute for working earnings (as decided in accordance with US Generally Accepted Accounting Principles), as an indicator of the Monarch’s working efficiency, as a substitute for money flows from working actions (as decided in accordance with US GAAP) or as a measure of liquidity. This measure permits comparability of the Monarch’s efficiency over a number of intervals, in addition to in opposition to the efficiency of different firms in our business that report Adjusted EBITDA, though some firms don’t calculate this measure in the identical method and, due to this fact, the measure as introduced might not be similar to equally titled measures introduced by different firms. Monarch defines Adjusted EBITDA margin as Adjusted EBITDA divided by Net income.
(2) Amount included within the “Other operating items, net” on the Consolidated Statement of Income.