Annual Stockholders' Meeting
May 21, 2024
Forward Looking Information
This presentation contains certain forward-looking information that generally can be identified by the context of the statement or the use of forward-looking terminology, such as "believes," "estimates," "anticipates," "intends," "expects," "plans," "is confident that," "should" or words of similar meaning, with reference to Monarch Casino & Resort or our management. Similarly, statements that describe our future plans, objectives, strategies, financial results or position, operational expectations, or goals are forward-looking statements. It is possible that our expectations may not be met due to various factors, many of which are beyond our control, and we therefore cannot give any assurance that such expectations will prove to be correct. For a discussion of relevant factors, risks, and uncertainties that could materially affect our future results, attention is directed to Risk Factors and Management's Discussion and Analysis of Financial Condition and Results of Operations in our latest 10-K and other filings under the Securities and Exchange Act of 1934.
Monarch Casino & Resort, Inc. (MCRI) Property Highlights
Prime locations and assets
- Atlantis Casino Resort Spa is located in south Reno, three miles south of downtown, a more affluent area, and connected by a bridge to the Reno-Sparks Convention Center
- Monarch Casino Resort Spa is the first property encountered by visitors arriving from Denver and other major population centers via Highway 119
Significant growth opportunities
- Continued ramp up of Monarch Casino Resort Spa, including VIP business development, as well as growing opportunity for retail and online sports betting
- Ongoing capital investments at Atlantis to ensure it retains its competitive advantage
- Potential for development on Atlantis' 40-acre parcel of land
Results-oriented management with a strong operations and development track record
- Monarch ranked 36th among the Top 100 on Forbes' 2023 America's Best Small Companies list
Attractive financial profile / balance sheet
- Net leverage of -0.2x as of 3/31/24
- 1Q24 LTM Net revenue of $506 million, Adjusted EBITDA1 of $173 million and Adjusted EBITDA margin of 34.1% (compared to $486 million Net Revenue; $169 million Adjusted EBITDA; and 34.8% Adjusted EBITDA margin during the previous twelve month period)
Source: Monarch Casino & Resort analysis
1. EBITDA is adjusted for stock option, pre-opening and construction litigation expenses, and one-time charges.
Company History
Reno, NV
1991
Phase I - Atlantis
- First high-rise tower opens
- 160 rooms
- 16,000 square feet of casino space
- 500 slot machines
- 21 table games
- Additional restaurant
1993
Initial Public Offering
- Monarch Casino & Resort, Inc. begins trading as a public company with ticker symbol MCRI
1994
Phase II - Atlantis
- Second high-rise tower opens, adding:
- 283 rooms
- 14,000 square feet of casino space
- 450 slot machines
- 14 table games
- 300-seatbuffet restaurant
1999
Phase III - Atlantis
- Third high-rise tower opens, adding:
- 388 rooms
- Over 300 slot machines
- Several new restaurants
- 14,500 square feet of meeting space
2008
Phase IV - Atlantis
- Expansion of the casino including:
- Large race and sports book
- Poker room
- Additional restaurant (Manhattan Deli)
- ~38,000 square feet expansion of meeting area
- Sky Bridge connecting to convention center
2023 Atlantis
- ~61,000 square feet of casino space
- 817 guest rooms and suites
- 8 restaurants and 10 bars/lounges
- ~30,000 square foot health spa and salon
- ~52,000 square feet of meeting area
Black Hawk, CO
2012 Black Hawk
- Acquired gaming license for Riviera Black Hawk
- 32,000 square feet of casino space
- 750 slot machines
- 8 table games
- Acquired contiguous 1.5-acre land parcel
2015 Black Hawk
- Completed redesign and upgrade of existing casino
2016 Black Hawk
- Completion of new 9- story parking structure
2017 Black Hawk
- Hotel tower and casino expansion begins
2021-2022 Black Hawk
- Expansion and redesign and upgrade of the legacy building completed with the opening of our Sportsbook, Bistro Mariposa, and new High-Limit tables area
2023 Black Hawk
- ~60,000 square feet of casino space
- 516 guest rooms and suites
- 4 restaurants and 10 bars/lounges
- World-classspa
- Banquet and meeting room space
Atlantis Casino Resort Spa Reno
Atlantis Overview
Award-winning facility
- AAA: "Four Diamond" rating for 13th consecutive year
- TripAdvisor (2024): Rated #1 Reno resort for 9 consecutive years with 4 of our restaurants consistently ranked in the city's top 10 (out of more than 1,100)
- Forbes (2024): Four-Star Award for Spa Atlantis for 9 consecutive years (only four- star venue in Reno) and, for the first time in 2024, the Atlantis Steakhouse. Recommended rating for Atlantis Casino Resort Spa and Bistro Napa
- U.S. News & World Report (2024): Best USA Hotels Gold Badge
61,000 square-foot casino floor
- ~1,200 slot and video poker machines
- ~33 table games; 8 poker tables; 24-hour live keno lounge
- Race/sports book (self managed live and mobile app)
Amenities include:
- 817 rooms and suites
- 8 restaurants, 2 gourmet coffee bars, 10 bars/lounges and 1 snack bar
- ~52,000 square feet of banquet, convention, and meeting space
Atlantis GGR Market Share
Atlantis Casino Resort Spa has consistently outperformed the greater Reno-Sparks market for the last 27 years
- Primary focus has always been providing best-in-class and best-in-market experiences, amenities, and service
Property enhancements
- Began the redesign and upgrade of 125 rooms in tower 3 in Q1 2024
- Redesigned and upgraded 446 rooms as of Q4 2023
- Plans to redesign and upgrade all remaining 246 rooms in early 2025
- Redesigned and upgraded the oyster and sushi bar restaurant in Q4 2023
- Various upgrades to our hotel rooms, restaurants, and the casino that bring a fresh new look to the property
Continuous focus on profitability
- Controlling operating costs and driving gaming revenues
- Leveraging proprietary player segmentation tools to drive gaming and other revenues
Source: Monarch Casino & Resort analysis, Nevada Gaming Control Board
MCRI market share (TTM)
18%
15.9%
16%
14%
12%
10%
8%
6%
4%
3.6%
2%
0%
1996 | 1997 | 1998 | 1999 | 2000 | 2001 | 2002 | 2003 | 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 1Q24 LTM |
Atlantis Hotel Occupancy and Cash ADR
Total Occupancy | |||
90% | 85% | 86% | 84% |
80% | |||
70% | 65% | 65% | 64% |
60% | |||
50% | |||
40% | |||
30% | |||
20% | |||
10% | |||
0% | |||
2022 | 2023 | 1Q24 LTM | |
Atlantis Reno-Sparks |
$180 $160 $140 $120 $100 $80 $60 $40 $20 $0
1 | |||||
Cash ADR | |||||
$151 | $152 | $152 | $158 | $153 | |
$149 | |||||
2022 | 2023 | 1Q24 LTM |
Atlantis | Reno-Sparks |
Hotel occupancy rates remain stable
Source: Monarch Casino & Resort analysis, Reno-Sparks Convention & Visitors Authority 1. Cash ADR is inclusive of resort fees.
Fast-Growing Reno Metro Market
Washoe County Population of ~500,000
- Reno-Sparkspopulation grew 2.4% from 2020 to 2023 (national average: 1.0%)
- 2022 per capita personal income for the Reno metro area was 19% higher than the national average ($78,077 vs. $65,471)
- Gaming environment remains extremely competitive due to tribal gaming expansion in major feeder markets (California, Oregon and Washington)
Reno metro area diversifying to broader base of industries
- In January 2023, Tesla announced a $3.6 billion expansion of the "Gigafactory" to produce semi-trucks and cell batteries
- Tahoe Reno Industrial Center, the largest industrial park in the U.S., has been a center of industrial investment and new job growth (Blockchains; Google; Panasonic; Switch; Tesla; etc.)
Attractive Nevada tax environment drives relocation interest
- No state taxes on personal / corporate income, inventory, inheritances, capital gains
- 21 companies either relocated to or expanded their workforce in the Reno-Sparks area in 2023, adding over 1,200 new jobs with a record average hourly wage of $40
Source: U.S. Census, Bureau of Economic Analysis, EDAWN, Tahoe Reno Industrial Center, AP News
Atlantis' Prime Location
Ideally located in the heart of south Reno's restaurant, shopping and convention district
- ~3 miles south of downtown in more affluent commercial and residential area
- Close to Interstate 580, main north/south artery
- ~3 miles from Reno-Tahoe International Airport
~40 acres on both sides of South Virginia Street
- Glass-enclosedbridge with restaurants connects both sides of South Virginia street
- Opportunity for future development
Only property connected to the Reno-Sparks Convention Center
- 600,000 square-foot facility located across the street is connected to Atlantis
35 miles from Lake Tahoe
- ~30 golf courses and ~10 ski resorts within a 90-minute drive from Reno
Source: Monarch Casino & Resort analysis
Silver Legacy
Circus Circus
Ramada Reno
Downtown
Eldorado
Club Cal Neva
Boomtown Reno,
Gold Dust West & J
Resort
Peppermill
Reno-Sparks
Convention
Center
Rail City
Nugget
Baldini's
Grand Sierra
Western Village
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Disclaimer
Monarch Casino & Resort Inc. published this content on 21 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 22 May 2024 21:46:09 UTC.