|
Monarch Casino Reports Record Second Quarter Revenues
RENO, Nev. - 7/26/2006
Monarch Casino & Resort, Inc. (nasdaq: MCRI) (the "Company"), owner of the Atlantis Casino Resort in Reno, Nevada, today announced record revenues and also announced decreases in EBITDA and net income primarily driven by one-time stock option charges taken in the quarter ended June 30, 2006.
The Company reported record revenue from each of its revenue centers. Specifically, casino, food and beverage, hotel and other revenue centers’ drove increases of 7.3%, 7.8%, 11.5% and 17.6%, respectively, over the same quarter of the prior year. These revenue increases, partially offset by a 12.6% increase in promotional allowances, led to a 7.7% increase in net revenues over the comparative quarter in 2005.
Despite the increase in revenue, the Company reported an 8.4% decrease in EBITDA from $10.3 million in the second quarter of 2005 to $9.5 million for the same quarter of the current year. The decrease in EBITDA was due primarily to a one-time non-cash charge of $1.2 million related to the accelerated vesting of stock options awarded to former CFO Ben Farahi, and recurring stock option expense of $495 thousand. Starting January 1, 2006, pursuant to SFAS No. 123R, the Company began recognizing expenses related to stock options and, therefore, the Company did not recognize any such expense in 2005.
Net income for the 2006 second quarter decreased 7.2% to $4.8 million, or $0.25 per diluted share ("EPS"), from $5.2 million, or $0.27 per diluted share for the same period last year.
Absent the one-time and recurring stock option expenses, EBITDA for the second quarter would have been $11.2 million or 8.2% better than EBITDA in the second quarter of 2005, and diluted EPS would have been $0.31, or 15% higher than diluted EPS in the second quarter of 2005.
Consensus published reports by analysts covering the Company estimated second quarter EBITDA of $11.5 million and EPS of $0.31; however, several of the analyst estimates excluded an allowance for stock option expense.
Monarch’s CEO and Co-Chairman John Farahi commented on the Company’s performance: "The increase in our revenues indicates that our fundamentals remain very strong and that we continue to do a good job of not only attracting new guests, but also of retaining the loyalty of our long-time patrons. Margins in three of our four primary revenue centers improved over last year which indicates that we continue to effectively manage our costs." Mr. Farahi added: "We continue to work on our Atlantis expansion plans and look to begin construction early next year."
The Company remained debt free during the quarter with $24 million available under its revolving credit facility at June 30, 2006. |
