Monarch Casino & Resort, Inc. (Nasdaq: MCRI) (the "Company") announced its second successive all-time Company record for the quarter ended September 30, 2004. The Company’s net income, earnings per share, EBITDA (1), casino revenue, hotel revenue, and net revenue during the 2004 third quarter eclipsed all such previous quarterly results, including its previous record-setting second quarter ended June 30, 2004.

Net income for the Company during the third quarter ended September 30, 2004, was $5,552,438, or $0.59 per diluted share. This marks a 51.5% improvement over net income of $3,665,814, and $0.39 per diluted share, in the third quarter ended September 30, 2003, and a 27.6% improvement over its previous record quarterly net income set in the second quarter of 2004. The Company’s nine-month earnings per share of $1.35 is a 32% improvement over the full year 2003 per share earnings of $1.02. EBITDA (1) for the third quarter was $10,858,147, or 23.4% better than the $8,797,634 EBITDA (1) from the third quarter last year.

Revenues in all major categories increased significantly in the third quarter of 2004 year over year. Casino revenues were $22,642,767 compared to $19,893,383, an increase of 13.8%. Food and beverage revenues increased 5.9%, from $9,146,124 to $9,689,843. Hotel revenues also jumped significantly, from $6,259,807 to $7,021,432, a 12.2% increase. Other revenues decreased approximately $103,000, or 8.8%. The strong increases in casino, food and beverage and hotel revenues combined to increase the Company’s gross revenues by 10.8%. Promotional allowances increased only 6.7%, leading to an 11.5% improvement in net revenue during the 2004 third quarter over the 2003 third quarter. Operating expenses in the quarter ended September 30, 2004, increased only 3.9% as compared to the quarter ended September 30, 2003, resulting in a 42.4% increase in income from operations. The increase in revenues and smaller increase in operating expenses, combined with a 46.4% decrease in interest expense and stockholder guarantee fee expense, led to an impressive 51.5% increase in net income during the 2004 third quarter over the 2003 third quarter.

Commenting on the Company’s all-time record quarter, John Farahi, its Chief Executive Officer and Co-Chairman, said: "Obviously, we are very pleased about the record results once again. The increase in our revenues and operating margins are attributable to our superior product and service. All in all, about 52% of the additional revenue flowed through to the bottom line, resulting in a 5.4 percentage point increase in operating margin year over year to 25.1%, our best ever. I am extremely proud of all our team members’ continuing efforts and valuable contributions. We continue to benefit from local population growth, constant physical improvement to the property, increases in convention bookings at the Reno-Sparks Convention Center and management’s continuous attention to detail." Mr. Farahi later added: "We are also very excited about our latest physical enhancement to the Atlantis, a new expansive paver driveway and entrance to the Atlantis that are accentuated with three colossal, show-controlled water fountains. The water feature and expanded driveway, which opened on September 30, 2004, is another distinguishing feature which will both provide a more customer efficient entrance to our resort and enhance our mystique as one of the premier hotel casinos in northern Nevada."

Continuing its trend of aggressively paying down debt, the Company reduced its bank debt by $6.5 million during the third quarter of 2004, and by $14.2 million for the first nine months of 2004. The Company’s long-term debt balance of $32.8 million at September 30, 2004, represented 95.6% of the Company’s trailing twelve months EBITDA (1).