Monarch Casino & Resort Q2 2024 Update

TL;DR

MCRI Q2 2024 10-Q filed. Financials and property details out.

AI Summary

Monarch Casino & Resort Inc. (MCRI) filed its 10-Q for the period ending June 30, 2024. The company reported its financial performance and operational updates. Key financial figures and details on property, plant, and equipment, as well as operating lease liabilities, were disclosed.

Why It Matters

This filing provides investors with a detailed look at Monarch Casino & Resort's financial health and operational status for the second quarter of 2024, impacting investment decisions.

Risk Assessment

Risk Level: medium — The filing contains standard financial disclosures for a public company, but the gaming and hospitality sector can be subject to economic and regulatory risks.

Key Numbers

• $9.6B — Property, Plant and Equipment Net (As of December 31, 2023, indicating significant asset base.)
• $3.1B — Operating Lease Liability Noncurrent (As of December 31, 2023, representing long-term lease obligations.)

Key Players & Entities

• MONARCH CASINO & RESORT INC (company) — Filer
• 20240630 (date) — Period of Report
• 20240808 (date) — Filed as of Date
• 9600000 (dollar_amount) — Property, Plant and Equipment Net (2023)
• 3100000 (dollar_amount) — Operating Lease Liability Noncurrent (2023)

FAQ

Key Financial Figures

• $0.01 — nge on which registered Common Stock, $0.01 par value per share MCRI The Nasdaq

Filing Documents

• mcri-20240630x10q.htm (10-Q) — 998KB
• mcri-20240630xex31d1.htm (EX-31.1) — 16KB
• mcri-20240630xex31d2.htm (EX-31.2) — 16KB
• mcri-20240630xex32d1.htm (EX-32.1) — 6KB
• mcri-20240630xex32d2.htm (EX-32.2) — 6KB
• mcri-20240630x10q001.jpg (GRAPHIC) — 9KB
• 0001558370-24-011610.txt ( ) — 4390KB
• mcri-20240630.xsd (EX-101.SCH) — 28KB
• mcri-20240630_cal.xml (EX-101.CAL) — 40KB
• mcri-20240630_def.xml (EX-101.DEF) — 111KB
• mcri-20240630_lab.xml (EX-101.LAB) — 289KB
• mcri-20240630_pre.xml (EX-101.PRE) — 200KB
• mcri-20240630x10q_htm.xml (XML) — 639KB

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements 3 Consolidated Statements of Income for the three and six months ended June 30, 2024 and 2023 (unaudited) 3 Consolidated Balance Sheets at June 30, 2024 (unaudited) and December 31, 2023 4 Consolidated Statements of Stockholders' Equity for the three and six months ended June 30, 2024 and 2023 (unaudited) 5 Consolidated Statements of Cash Flows for the six months ended June 30, 2024 and 2023 (unaudited) 6

Notes to Consolidated Financial Statements (unaudited)

Notes to Consolidated Financial Statements (unaudited) 7

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

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 16

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 21

Controls and Procedures

Item 4. Controls and Procedures 22

- OTHER INFORMATION

PART II - OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings 22

Risk Factors

Item 1A. Risk Factors 22

Unregistered Sales of Equity Securities and use of Proceeds

Item 2. Unregistered Sales of Equity Securities and use of Proceeds 22

Other Information

Item 5. Other Information 22

Exhibits

Item 6. Exhibits 23

Signatures

Signatures 23 2 Table of Contents

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS MONARCH CASINO & RESORT, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (In thousands, except per share data) (Unaudited) Three months ended Six months ended June 30, June 30, 2024 2023 2024 2023 Revenues Casino $ 70,977 $ 68,855 $ 140,413 $ 135,760 Food and beverage 31,842 31,525 62,005 60,842 Hotel 19,731 18,094 36,505 33,565 Other 5,593 5,209 10,877 10,160 Net revenues 128,143 123,683 249,800 240,327 Operating expenses Casino 26,773 25,746 53,125 50,998 Food and beverage 23,489 22,803 46,064 44,740 Hotel 6,607 6,541 12,585 12,931 Other 2,926 2,786 5,834 5,729 Selling, general and administrative 26,198 24,955 53,272 50,071 Depreciation and amortization 12,404 11,618 24,891 22,955 Other operating items, net 233 ( 474 ) 706 36 Total operating expenses 98,630 93,975 196,477 187,460 Income from operations 29,513 29,708 53,323 52,867 Other income (expense) Interest expense, net ( 211 ) ( 780 ) ( 204 ) ( 1,367 ) Income before income taxes 29,302 28,928 53,119 51,500 Provision for income taxes ( 6,620 ) ( 6,515 ) ( 12,162 ) ( 11,417 ) Net income $ 22,682 $ 22,413 $ 40,957 $ 40,083 Earnings per share of common stock Net income Basic $ 1.21 $ 1.16 $ 2.16 $ 2.08 Diluted $ 1.19 $ 1.14 $ 2.12 $ 2.04 Weighted average number of common shares and potential common shares outstanding Basic 18,731 19,243 18,948 19,229 Diluted 19,090 19,618 19,315 19,636 The Notes to the Consolidated Financial Statements are an integral part of these statements. 3 Table of Contents MONARCH CASINO & RESORT, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In thousands, except shares) June 30, 2024 December 31, 2023 (Unaudited) ASSETS Current assets Cash and cash equivalents $ 33,508 $ 43,361 Receivables, n

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) QUARTERLY PERIOD ENDED JUNE 30, 2024 NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation : Monarch Casino & Resort, Inc. was incorporated in 1993. Unless otherwise indicated, "Monarch," "us," "we," and the "Company" refer to Monarch Casino & Resort, Inc. and its subsidiaries. Monarch owns and operates the Atlantis Casino Resort Spa, a hotel and casino in Reno, Nevada (the "Atlantis") and Monarch Casino Resort Spa Black Hawk, a hotel and casino in Black Hawk, Colorado (the "Monarch Black Hawk"). In addition, Monarch owns 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. Monarch also owns Chicago Dogs Eatery, Inc. and Monarch Promotional Association, both of which were formed in relation to licensure requirements for extended hours of liquor operation in Black Hawk, Colorado. The accompanying unaudited consolidated financial statements include the accounts of Monarch and its subsidiaries (the "Consolidated Financial Statements"). Intercompany balances and transactions are eliminated. Interim Financial Statements : The Consolidated Financial Statements have been prepared in accordance with U.S. generally accepted accounting principles ("U.S. GAAP") for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of the management of the Company, all adjustments considered necessary for a fair presentation, consisting of normal recurring accruals, are reflected in the interim financial statements. Operating results for the three and six months ended June 30, 2024 are not necessarily indicative of the results that may be expected for the year ending December 31, 2024. The balance sheet at December

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View this 10-Q filing on SEC EDGAR