Monarch Casino & Resort 10-Q: Assets, Leases, and Buybacks

TL;DR

MCRI 10-Q shows $950M in PP&E, $31M in lease liabilities, and ongoing stock buybacks.

AI Summary

Monarch Casino & Resort Inc. (MCRI) filed its 10-Q for the period ending September 30, 2024. The company reported Property, Plant and Equipment Net of $950 million and non-current operating lease liabilities of $31 million. The filing also details treasury stock transactions and a stock repurchase plan initiated on October 22, 2014.

Why It Matters

This filing provides insight into Monarch Casino & Resort's significant asset base and ongoing financial commitments, including lease obligations and share repurchase activities.

Risk Assessment

Risk Level: low — The filing is a standard quarterly report with no immediate red flags indicating high risk.

Key Numbers

• $950.0M — Property, Plant and Equipment Net (Represents the company's significant investment in its physical assets.)
• $31.0M — Operating Lease Liability Noncurrent (Indicates long-term financial obligations related to leases.)

Key Players & Entities

• Monarch Casino & Resort Inc. (company) — Filer of the 10-Q
• 9500000 (dollar_amount) — Property, Plant and Equipment Net
• 3100000 (dollar_amount) — Operating Lease Liability Noncurrent
• 2024-09-30 (date) — End of reporting period
• 2014-10-22 (date) — Initiation date of Stock Repurchase Plan

FAQ

Key Financial Figures

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

Filing Documents

• mcri-20240930x10q.htm (10-Q) — 1071KB
• mcri-20240930xex31d1.htm (EX-31.1) — 16KB
• mcri-20240930xex31d2.htm (EX-31.2) — 16KB
• mcri-20240930xex32d1.htm (EX-32.1) — 6KB
• mcri-20240930xex32d2.htm (EX-32.2) — 6KB
• mcri-20240930x10q001.jpg (GRAPHIC) — 9KB
• 0001558370-24-015044.txt ( ) — 4520KB
• mcri-20240930.xsd (EX-101.SCH) — 28KB
• mcri-20240930_cal.xml (EX-101.CAL) — 40KB
• mcri-20240930_def.xml (EX-101.DEF) — 112KB
• mcri-20240930_lab.xml (EX-101.LAB) — 291KB
• mcri-20240930_pre.xml (EX-101.PRE) — 202KB
• mcri-20240930x10q_htm.xml (XML) — 664KB

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements Consolidated Statements of Income for the three and nine months ended September 30, 2024 and 2023 (unaudited) 3 Consolidated Balance Sheets at September 30, 2024 (unaudited) and December 31, 2023 4 Consolidated Statements of Stockholders' Equity for the three and nine months ended September 30, 2024 and 2023 (unaudited) 5 Consolidated Statements of Cash Flows for the nine months ended September 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 Nine months ended September 30, September 30, 2024 2023 2024 2023 Revenues Casino $ 76,307 $ 73,818 $ 216,720 $ 209,578 Food and beverage 32,888 32,970 94,893 93,812 Hotel 21,642 20,608 58,147 54,173 Other 7,036 5,569 17,913 15,729 Net revenues 137,873 132,965 387,673 373,292 Operating expenses Casino 27,676 25,473 80,801 76,471 Food and beverage 23,938 23,330 70,002 68,070 Hotel 7,306 7,176 19,891 20,107 Other 3,171 2,820 9,005 8,549 Selling, general and administrative 27,177 27,091 80,449 77,162 Depreciation and amortization 13,103 12,197 37,994 35,152 Other operating items, net 225 2,976 931 3,012 Total operating expenses 102,596 101,063 299,073 288,523 Income from operations 35,277 31,902 88,600 84,769 Other income (expense) Interest expense, net ( 145 ) ( 369 ) ( 349 ) ( 1,736 ) Income before income taxes 35,132 31,533 88,251 83,033 Provision for income taxes ( 7,531 ) ( 7,370 ) ( 19,693 ) ( 18,787 ) Net income $ 27,601 $ 24,163 $ 68,558 $ 64,246 Earnings per share of common stock Net income Basic $ 1.50 $ 1.26 $ 3.67 $ 3.34 Diluted $ 1.47 $ 1.23 $ 3.60 $ 3.27 Weighted average number of common shares and potential common shares outstanding Basic 18,404 19,252 18,681 19,237 Diluted 18,746 19,608 19,039 19,627 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) September 30, 2024 December 31, 2023 (Unaudited) ASSETS Current assets Cash and cash equivalents $ 39,380 $ 43,

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) QUARTERLY PERIOD ENDED SEPTEMBER 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" refers 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 nine months ended September 30, 2024 are not necessarily indicative of the results that may be expected for the year ending December 31, 2024. The balance sheet

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