($ in thousands, except per share data and percentages) | |||||||||||
Three Months Ended | |||||||||||
2024 | 2023 | Increase | |||||||||
Net revenue | $ | 121,657 | $ | 116,644 | 4.3% | ||||||
Net income | 18,275 | 17,670 | 3.4% | ||||||||
Adjusted EBITDA (1) | $ | 38,548 | $ | 36,480 | 5.7% | ||||||
Basic EPS | $ | 0.95 | $ | 0.92 | 3.3% | ||||||
Diluted EPS (1) | $ | 0.93 | $ | 0.90 | 3.3% | ||||||
(1) Definitions, disclosures and reconciliations of non-GAAP financial information are included later in the release. | |||||||||||
CEO Comment
“Monarch Black Hawk generated revenue growth across all its business segments and expanded its adjusted EBITDA margin. The property continues to grow its market share, particularly among mid- and upper-tier players. The exceptional product quality, combined with our team’s operational excellence, is creating unparalleled guest experiences in the market and establishing the property as the leading casino resort in the greater
“At Atlantis, our primary focus remains the ongoing enhancement of the property. While
“With a strong balance sheet, we are favorably positioned to continue investing in our properties, paying cash dividends, and buying back stock under our existing stock repurchase authorization. We continue to diligently evaluate potential M&A transactions, which can drive additional attractive long-term value for our stockholders.”
Summary of 2024 First Quarter Operating Results
In the 2024 first quarter, the Company generated net revenue of
Selling, general and administrative (“SG&A”) expenses for the first quarter of 2024 were
Income from operations for the first quarter of 2024 increased 2.8% compared to the same period last year. Net income increased 3.4% and diluted EPS increased 3.3% compared to the same period last year. The Company generated record first quarter consolidated adjusted EBITDA of
Credit Facility and Liquidity
As of
Capital expenditures of
On
In the first quarter of 2024, the Company purchased 281,708 shares of its common stock on the open market for an aggregate amount of
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
- 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 andIsrael .
Additional information concerning potential factors that could adversely affect all forward-looking statements, including the Company's financial results, is included in our
About
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:
Chief Executive Officer
775/824-4401 or jfarahi@monarchcasino.com
JCIR
212/835-8500 or mcri@jcir.com
- financial tables follow -
CONSOLIDATED STATEMENTS OF INCOME | ||||||||
(In thousands, except per share data) | ||||||||
Three months ended | ||||||||
2024 | 2023 | |||||||
(Unaudited) | (Unaudited) | |||||||
Revenues | ||||||||
Casino | $ | 69,436 | $ | 66,905 | ||||
Food and beverage | 30,163 | 29,317 | ||||||
Hotel | 16,774 | 15,471 | ||||||
Other | 5,284 | 4,951 | ||||||
Net revenues | 121,657 | 116,644 | ||||||
Operating expenses | ||||||||
Casino | 26,352 | 25,252 | ||||||
Food and beverage | 22,575 | 21,937 | ||||||
Hotel | 5,978 | 6,390 | ||||||
Other | 2,908 | 2,943 | ||||||
Selling, general and administrative | 27,074 | 25,116 | ||||||
Depreciation and amortization | 12,487 | 11,337 | ||||||
Other operating items, net | 473 | 510 | ||||||
Total operating expenses | 97,847 | 93,485 | ||||||
Income from operations | 23,810 | 23,159 | ||||||
Interest income (expense), net | 7 | (587) | ||||||
Income before income taxes | 23,817 | 22,572 | ||||||
Provision for income taxes | (5,542) | (4,902) | ||||||
Net income | $ | 18,275 | $ | 17,670 | ||||
Earnings per share of common stock | ||||||||
Net income | ||||||||
Basic | $ | 0.95 | $ | 0.92 | ||||
Diluted | $ | 0.93 | $ | 0.90 | ||||
Weighted average number of common shares and potential common shares outstanding | ||||||||
Basic | 19,284 | 19,215 | ||||||
Diluted | 19,659 | 19,654 |
CONSOLIDATED BALANCE SHEET | ||||||||
(In thousands, except per share data) | ||||||||
ASSETS | (unaudited) | |||||||
Current assets | ||||||||
Cash and cash equivalents | $ | 39,484 | $ | 43,361 | ||||
Receivables, net | 10,265 | 11,990 | ||||||
Income taxes receivable | - | 1,006 | ||||||
Inventories | 7,366 | 7,614 | ||||||
Prepaid expenses | 9,347 | 10,995 | ||||||
Total current assets | 66,462 | 74,966 | ||||||
Property and equipment, net | 585,434 | 580,497 | ||||||
25,111 | 25,111 | |||||||
Intangible assets, net | 258 | 299 | ||||||
Total assets | $ | 677,265 | $ | 680,873 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
Current liabilities | ||||||||
Current maturities of long-term debt | $ | 5,500 | $ | - | ||||
Accounts payable | 21,448 | 23,092 | ||||||
Construction accounts payable | 47,256 | 47,566 | ||||||
Income taxes payable | 4,536 | - | ||||||
Accrued expenses | 50,509 | 51,812 | ||||||
Short-term lease liability | 919 | 897 | ||||||
Total current liabilities | 130,168 | 123,367 | ||||||
Deferred income taxes | 23,084 | 23,084 | ||||||
Long-term lease liability | 13,779 | 14,021 | ||||||
Long-term debt | - | 5,500 | ||||||
Other long-term liabilities | 1,321 | 1,761 | ||||||
Total liabilities | 168,352 | 167,733 | ||||||
Stockholders' equity | ||||||||
Preferred stock, | - | - | ||||||
Common stock, | 192 | 191 | ||||||
Additional paid-in capital | 51,568 | 48,821 | ||||||
(23,292) | (3,718) | |||||||
Retained earnings | 480,445 | 467,846 | ||||||
Total stockholders' equity | 508,913 | 513,140 | ||||||
Total liabilities and stockholders' equity | $ | 677,265 | $ | 680,873 |
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 | ||||||||
2024 | 2023 | |||||||
Net income | $ | 18,275 | $ | 17,670 | ||||
Expenses: | ||||||||
Stock based compensation | 1,778 | 1,474 | ||||||
Depreciation and amortization | 12,487 | 11,337 | ||||||
Provision for income taxes | 5,542 | 4,902 | ||||||
Interest income (expense), net | (7) | 587 | ||||||
Construction litigation expenses (2) | 510 | 510 | ||||||
Gain on disposition of assets (2) | (37) | - | ||||||
Adjusted EBITDA (1) | $ | 38,548 | $ | 36,480 | ||||
(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, pre-opening expenses, 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. |
Source:
2024 GlobeNewswire, Inc., source