Monarch Casino & Resort, Inc. (Nasdaq: MCRI) (the "Company") today announced strong results for the first quarter ended March 31, 2004. Net income, earnings per share, casino revenue, hotel revenue, net revenue and EBITDA (1) all exceeded previously reported first quarter records.

For the first quarter ended March 31, 2004, the Company recorded net income of $2,758,245, or $0.29 per diluted share, a 50.1% improvement over last year’s record first quarter net income of $1,837,927, or $0.19 per diluted share. Net revenue improved 12.2% in the first quarter of 2004 as compared to the same period in 2003, increasing from $27,167,928 to $30,485,978. Casino revenue in the first quarter ended March 31, 2004, was $19,902,851, a 12.2% improvement over the $17,739,705 from the previous year’s first quarter. The increase in casino revenue resulted from a greater volume of play at the Atlantis. Hotel revenue increased 17.0% to $5,518,305 in the 2004 first quarter over the same period in 2003, driven primarily by a strong increase in the average daily room rate, from $53.31 to $59.76, and a slight increase in hotel occupancy, from 89.1% to 90.7%.

These first quarter revenue increases, combined with lower increases in operating costs led to a 35% increase in income from operations and improved the operating margin from 12.9% in the 2003 first quarter to 15.6% in the 2004 first quarter. The Company’s cash flow, as measured by EBITDA (1), increased 26.7% in the 2004 first quarter as compared to the same period a year earlier, reaching $7,747,729.

John Farahi, Co-chairman and Chief Executive Officer of Monarch commented on the record earnings: "Our impressive first quarter results are a testament to the quality of the Atlantis’ management team, convenient location and fresh product in a very competitive Reno environment. We achieved a strong flow-through of the incremental revenue to both the operating income and net income lines. The former is attributable to persistent and ongoing cost controls leading to effective operating leverage. The latter was further assisted by the elimination of the stockholder guarantee fee in late February. Our first quarter performance confirmed the strength of the Company’s business plan and emphasis on the locals market." He continued, "the Company’s refinancing of its original $80 million credit facility on February 23rd for another five years at the $50 million level sends a strong signal to the financial community. Not only did our bank group demonstrate its confidence in the Company by removing the controlling stockholders’ guarantees and the consequent need for the fee, but was further encouraged by the Company’s continuous debt reduction of the past few years. The Company’s reduced debt levels have resulted in one of the most conservative balance sheets in the industry and, combined with its consistently improving operating performance, attendant financial ratios."

Mr. Farahi further added, "the improvement in hotel revenue and margin was particularly heartening in light of the extensive remodeling of all 283 rooms in our 18-story second tower throughout the quarter. We had substantial disruption mid-week and still managed to post record results. Our hotel staff is to be congratulated."