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Monarch Announces All-Time Record Quarter
RENO, Nev. - 10/25/2005
Monarch Casino & Resort, Inc. (Nasdaq: MCRI) (the "Company"), owner of the Atlantis Casino Resort in Reno, Nevada, today announced an all-time quarterly record for its third quarter ended September 30, 2005.
The Company reported 2005 third quarter EBITDA (1), of $13.3 million, a new all-time Company quarterly record and a 22.2% improvement over the $10.9 million EBITDA (1) in the 2004 third quarter. The improvement was driven by record net revenue and improved operating margins and beat published consensus analysts’ estimates of $12.0 million. Net revenues at the Company’s Atlantis Casino Resort were $38.3 million during the quarter, a 9.4% increase from $35.1 million during the same period in 2004. The record net revenues were driven primarily by a 12.2% increase in casino revenues, which reached an all-time Company quarterly record of $25.4 million during the three months ended September 30, 2005. Hotel revenues increased 3.9%, food and beverage revenues improved 4.9% and other revenue centers grew 19.3% in the third quarter of 2005 compared to the third quarter of 2004. The 9.4% increase in net revenues, combined with across-the-board operating margin improvements and an increase of only 3.6% in operating costs and expenses, led to a 26.6% increase in income from operations for the three months ended September 30, 2005, as compared to the same period in 2004.
Net income for the 2005 third quarter was a record $7.1 million, a 27.6% increase from net income of $5.6 million for the same period a year earlier and translated into earnings per diluted share (EPS) of $0.37 versus $0.30 for the same period last year. The Company’s third quarter 2005 EPS of $0.37 beat published consensus analysts’ estimates of $0.33. During the 2005 third quarter, the Company achieved 71.2% flow through of incremental net revenue to income from operations leading to an operating margin of 29.1% for the period, compared to 25.1% during last year’s third quarter.
Monarch’s CEO and Co-Chairman John Farahi commented on the Company’s third quarter performance: "I believe our record results stem from a confluence of favorable factors. The vitality of our market manifested by the area’s strong economy and continuing population growth combined with our great location and product drives these remarkable numbers. Our management team has done a superb job taking advantage of these opportunities."
Mr. Farahi continued: "Our improving balance sheet also opens the possibilities for new growth opportunities for Monarch which includes current planning for the next phase of our expansion at Atlantis." During the third quarter, the Company reduced the unpaid principal balance under its credit facility, bringing its outstanding balance to $11.9 million at September 30, 2005 from $32.4 million at December 31, 2004. |
