Monarch Casino & Resort, Inc. (NASDAQ: MCRI) (the Company), owner of the Atlantis Casino Resort Spa (the Atlantis) in Reno, Nevada, today announced results for the quarter ended June 30, 2009.

The Company reported net revenue of $34.5 million and EBITDA(1) of $6.4 million which were 2.5% lower and 1.3% higher, respectively, when compared with the second quarter of 2008. The Company announced quarterly income from operations of $3.3 million and diluted EPS of $0.11 which represent decreases of 25.3% and 31.3%, respectively, compared to the prior year's second quarter. Revenue generated in the casino department decreased by 6.0% while revenue from the food and beverage and hotel departments increased by 2.9% and 6.1%, respectively.

As a percentage of casino revenue, casino operating expense of 36.7% remained relatively flat with the prior year's second quarter of 36.1%. Increased food and beverage revenue, combined with a $68 thousand, or 1.5%, decrease in expense, drove the operating expense from that department as a percentage of revenue down from 48.2% in the second quarter of the prior year to 46.2% in the current quarter. Hotel operating expense as a percentage of hotel revenue decreased to 34.8% from the 35.5% reported in prior year's second quarter due primarily to the increase in hotel revenue partially offset by an increase in hotel operating expense of $80 thousand, or 4.0%.

The Company reported that selling, general and administrative expense decreased by approximately $568 thousand, or 4.4%, due to reductions in payroll, benefits, marketing, and other general expense, all of which were the result of various cost reduction programs, partially offset by higher bad debt and utilities expense. Depreciation expense increased by approximately $1.2 million, or 63.5%, over prior year's second quarter due to the completion of the Company's previously announced expansion, remodel and Atlantis Convention Center Skybridge capital projects.

During the quarter, the Company paid down $3.8 million of the balance outstanding under its credit facility which reduced the balance outstanding at June 30, 2009 to $52.1 million. Increased borrowing levels resulted in an increase in interest expense from the $131 thousand reported in prior year's second quarter to $571 thousand in the current quarter.

Monarch's CEO and Co-Chairman John Farahi commented on the Company's performance: The challenging economic environment we experienced throughout 2008 has continued though the first half of 2009. Even though we successfully increased revenue in our food and beverage and hotel departments, and increased our gaming market share, we could not overcome the erosion of the gaming market as a whole, the result of which was lower net revenue compared to the second quarter of 2008.

Mr. Farahi continued: Despite the disappointing decline in net revenue, we are pleased with the reduction in expenses we achieved. With the implementation of numerous cost reduction programs, and the completion of our expansion and skybridge capital projects, we were able to drive selling, general and administrative expenses down throughout the Company, which allowed us to achieve an EBITDA level consistent with that of the prior year's second quarter and for that we are pleased.

In July of 2008, the Company completed and opened several new phases of an expansion project which include over 10,000 square feet, or approximately 20%, of new casino space on the first floor comprised of a significantly upgraded and expanded race and sports book, an enlarged and upgraded poker room and additional general gaming space. The casino expansion also includes the new Manhattan deli, a New York deli-style restaurant, and a casino lounge. The expanded facilities on the second floor include approximately 27,000 square feet of new ballroom and convention space, in a seamless addition to the pre-expansion ballroom and meeting facilities, incorporating high end design and state-of-the-art audio-visual technology.

In November 2008, the Company completed and opened the Atlantis Convention Center Skybridge providing guests with a convenient, traffic-free stroll between the Atlantis and the 500,000 square-foot Reno-Sparks Convention Center. Next, in January 2009, the Company opened the final phase of the expansion project, Spa Atlantis, featuring an upscale atmosphere, amenities and treatments that are unique from any other offering in the Company's market. During construction of the expansion project, many of the pre-expansion areas of the Atlantis were remodeled to be consistent with the upgraded look and feel of the new facilities.

This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934 which are subject to change, including, but not limited to, comments relating to (i) future operating performance, (ii) economic and market conditions, and (iii) the liquidity requirements of the Company. Actual results and future events and conditions may differ materially from those described in any forward-looking statements. Additional information concerning potential factors that could affect the Company's financial results is included in the Company's Securities and Exchange Commission filings, which are available on the Company's web site at www.monarchcasino.com.

Contacts:
Ron Rowan, CFO at (775) 825-4700 or RRowan@monarchcasino.com
John Farahi, CEO at (775) 825-4700 or JohnFarahi@monarchcasino.com

For additional information visit Monarch's web site at monarchcasino.com