Monarch Casino & Resort, Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>Monarch Casino & Resort, Inc. has filed its 2023 10-K annual report, detailing financial performance and stock-related activities.</b>

AI Summary

MONARCH CASINO & RESORT INC (MCRI) filed a Annual Report (10-K) with the SEC on February 28, 2024. Monarch Casino & Resort, Inc. filed its 10-K report for the fiscal year ending December 31, 2023. The company is incorporated in Nevada and operates in the Hotels & Motels industry (SIC 7011). The filing includes data related to allowance for credit losses, stock repurchase plans, and treasury stock from 2020 to 2023. Information on employee stock options for executives, directors, and other employees is detailed for fiscal years 2021, 2022, and 2023. The report covers financial data points such as common stock, retained earnings, and additional paid-in capital as of December 31 for years 2020 through 2023.

Why It Matters

For investors and stakeholders tracking MONARCH CASINO & RESORT INC, this filing contains several important signals. This 10-K filing provides a comprehensive overview of Monarch Casino & Resort's financial health and operational details for the fiscal year 2023, crucial for investors assessing the company's stability and growth prospects. The detailed breakdown of stock transactions, including repurchases and treasury stock, along with employee stock option data, offers insights into management's capital allocation strategies and employee incentive programs.

Risk Assessment

Risk Level: low — MONARCH CASINO & RESORT INC shows low risk based on this filing. The filing is a standard annual report (10-K) and does not contain immediate red flags, indicating a routine disclosure of financial information.

Analyst Insight

Review the detailed financial statements and risk factors within the 10-K to understand the company's performance and potential challenges in the upcoming fiscal year.

Key Numbers

• 2023-12-31 — Fiscal Year End (Reporting period)
• 2024-02-28 — Filing Date (Date of submission)
• 9700000 — Value (Associated with P15Y)
• 3200000 — Value (Associated with P20Y)
• 0.01 — Value (Associated with P20Y)

Key Players & Entities

• MONARCH CASINO & RESORT INC (company) — Filer name
• MCRI (company) — Ticker symbol
• 2023-12-31 (date) — Fiscal year end
• 2024-02-28 (date) — Filing date
• NV (location) — State of incorporation
• NASDAQ (company) — Exchange

FAQ

Industry Context

Monarch Casino & Resort operates within the Hotels & Motels sector, a segment often characterized by cyclical consumer spending and regulatory oversight.

Regulatory Implications

The company operates under various gaming and hospitality regulations, which are standard for its industry and are typically detailed within the risk factors section of its filings.

What Investors Should Do

1. Analyze the company's revenue streams and operational costs for fiscal year 2023.
2. Examine any disclosed changes in stock repurchase plans or treasury stock activities.
3. Review the details of employee stock option grants and their potential dilutive effects.

Key Dates

• 2023-12-31: Fiscal Year End — End of the reporting period for the 10-K filing.
• 2024-02-28: Filing Date — Date Monarch Casino & Resort, Inc. submitted its 10-K report.

Year-Over-Year Comparison

This filing is the 2023 Form 10-K, representing the annual disclosure for the fiscal year ending December 31, 2023, following previous filings like quarterly reports (10-Q) and prior annual reports.

Key Financial Figures

• $0.01 — nge on which registered Common Stock, $0.01 par value per share MCRI The Nasdaq
• $70.45 — rted on The Nasdaq Stock Market (SM) of $70.45 per share, was $ 1.051 billion. As of
• $51.4 million — r facilities. Capital expenditures were $51.4 million in 2023, $48.4 million in 2022 and $37.
• $48.4 million — xpenditures were $51.4 million in 2023, $48.4 million in 2022 and $37.8 million in 2021. Duri
• $37.8 million — lion in 2023, $48.4 million in 2022 and $37.8 million in 2021. During the last three years, c
• $921 million — regate gaming revenues of approximately $921 million (as reported by the Nevada Gaming Contr
• $90,716 — s 30% higher than the national average ($90,716 vs. $69,717). Commercial gaming in Col
• $69,717 — than the national average ($90,716 vs. $69,717). Commercial gaming in Colorado is con
• $803 million — a gaming market generated approximately $803 million in gaming revenues for the twelve month
• $12.0 million — rks area which each generated more than $12.0 million in annual gaming revenues. We believe

Filing Documents

• mcri-20231231x10k.htm (10-K) — 1952KB
• mcri-20231231xex23d1.htm (EX-23.1) — 3KB
• mcri-20231231xex31d1.htm (EX-31.1) — 16KB
• mcri-20231231xex31d2.htm (EX-31.2) — 16KB
• mcri-20231231xex32d1.htm (EX-32.1) — 6KB
• mcri-20231231xex32d2.htm (EX-32.2) — 6KB
• mcri-20231231xex97.htm (EX-97) — 92KB
• mcri-20231231x10k001.jpg (GRAPHIC) — 10KB
• mcri-20231231x10k003.jpg (GRAPHIC) — 62KB
• 0001558370-24-002025.txt (&nbsp;) — 8603KB
• mcri-20231231.xsd (EX-101.SCH) — 49KB
• mcri-20231231_cal.xml (EX-101.CAL) — 69KB
• mcri-20231231_def.xml (EX-101.DEF) — 195KB
• mcri-20231231_lab.xml (EX-101.LAB) — 515KB
• mcri-20231231_pre.xml (EX-101.PRE) — 371KB
• mcri-20231231x10k_htm.xml (XML) — 1483KB

Business

Item 1. Business 3

Risk Factors

Item 1A. Risk Factors 16

Unresolved Staff Comments

Item 1B. Unresolved Staff Comments 29

Cybersecurity

Item 1C. Cybersecurity 29

Properties

Item 2. Properties 31

Legal Proceedings

Item 3. Legal Proceedings 31

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 31 PART II

Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 32

Reserved

Item 6. Reserved 34

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 35

Financial Statements and Supplementary Data

Item 8. Financial Statements and Supplementary Data 45 Consolidated Statements of Income for the years ended December 31, 2023, 2022 and 2021 46 Consolidated Balance Sheets at December 31, 2023 and 2022 47 Consolidated Statements of Stockholder's Equity for the years ended December 31, 2023, 2022 and 2021 48 Consolidated Statements of Cash Flows for the years ended December 31, 2023, 2022 and 2021 49 Monarch Casino & Resort, Inc. and Subsidiaries Notes to Consolidated Financial Statements 50

Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 66

Controls and Procedures

Item 9A. Controls and Procedures 66

Other Information

Item 9B. Other Information 70 PART III

Directors, Executive Officers and Corporate Governance

Item 10. Directors, Executive Officers and Corporate Governance 71

Executive Compensation

Item 11. Executive Compensation 71

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 71

Certain Relationships and Related Transactions, and Director Independence

Item 13. Certain Relationships and Related Transactions, and Director Independence 71

Principal Accounting Fees and Services

Item 14. Principal Accounting Fees and Services 71 PART IV

Exhibits, Financial Statement Schedules

Item 15. Exhibits, Financial Statement Schedules 72

Form 10-K Summary

Item 16. Form 10-K Summary 76

Signatures

Signatures 77 2 Table of Contents PART I

BUSINES S

ITEM 1. BUSINES S Monarch Casino & Resort, Inc. was incorporated in Nevada in 1993 and, along with its consolidated subsidiaries, is referred to collectively in this Annual Report on Form 10-K as "Monarch," "the Company," "we," "our," and "us." Monarch owns and operates the Atlantis Casino Resort Spa, a hotel and casino in Reno, Nevada (the "Atlantis") and the Monarch Casino Resort Spa Black Hawk (the "Monarch Black Hawk"), a hotel and casino in Black Hawk, Colorado. In addition, we own separate parcels of land located next to the Atlantis and a parcel of land with an industrial warehouse located between Denver, Colorado and Monarch Black Hawk. We also own Chicago Dogs Eatery, Inc. and Monarch Promotional Association Inc., both of which were formed in relation to licensure requirements for extended hours of liquor operation in Black Hawk, Colorado. Our business strategy is to maximize revenues, operating income and cash flow primarily through our casino, food and beverage and hotel operations. We focus on delivering exceptional service and value to our guests. Our hands-on management style focuses on customer service and cost efficiencies. The Atlantis Casino Resort Spa The Atlantis is located approximately three miles south of downtown in the generally more affluent area of Reno, Nevada. The Atlantis features approximately 61,000 square feet of casino space; 817 guest rooms and suites; eight food outlets; two gourmet coffee and pastry bars and one snack bar; a 30,000 square-foot health spa and salon with an enclosed year-round pool; one retail outlet offering clothing and 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. The Atlantis als

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