Monarch Casino & Resort, Inc. (Nasdaq: MCRI) (“Monarch” or “the
Company”) today reported operating results for the quarter ended
September 30, 2018, as summarized below:
($ in thousands, except per share data and percentages)
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
|
2018 |
|
2017 |
|
Increase |
|
2018 |
|
2017 |
|
Increase |
|
Net
revenue(1) |
$64,359 |
|
$63,027 |
|
2.1 |
% |
|
$180,536 |
|
$174,670 |
|
3.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA(2) |
18,427 |
|
17,541 |
|
5.1 |
% |
|
47,151 |
|
45,457 |
|
3.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
$ 10,859 |
|
$ 9,030 |
|
20.3 |
% |
|
$ 26,839 |
|
$ 21,141 |
|
27.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic EPS |
$ 0.61 |
|
$ 0.51 |
|
19.6 |
% |
|
$ 1.51 |
|
$ 1.20 |
|
25.8 |
% |
|
Diluted EPS |
$ 0.58 |
|
$ 0.49 |
|
18.4 |
% |
|
$ 1.44 |
|
$ 1.16 |
|
24.1 |
% |
(1) |
|
|
As described in the
section below entitled “New Revenue Recognition Standard,” the
Company has changed its revenue recognition policy effective
January 1, 2018. This change resulted in a $35 thousand and $351
thousand increase in Net revenue for the three and nine months
ended September 30, 2018, respectively. Please see the
reconciliation provided at the end of this release for more
information related to the changes in revenues and expenses. |
(2) |
|
|
Definitions, disclosures
and reconciliations of non-GAAP financial information are included
later in the release. |
|
|
|
|
CEO Comment John Farahi,
Co-Chairman and Chief Executive Officer of Monarch, commented:
“Monarch’s long-term growth opportunity is taking shape as our
operating results continue to benefit from the initiatives to
leverage our market-leading amenities and customer service in two
of the country’s most attractive gaming markets. With our
significant development of Monarch Casino Black Hawk proceeding, we
expect to benefit from the property’s optimal location and position
as the market’s newest casino resort when our expanded resort
amenities open in the summer of 2019.
“Reflecting solid third quarter performance at
both Atlantis Casino Resort and Monarch Casino Black Hawk, we
generated record breaking top and bottom line financial results,
including 2.1% year over year revenue growth and 5.1% Adjusted
EBITDA growth. Both Atlantis and Monarch Casino Black Hawk
benefited from good visitation and strong slot play trends while
non-gaming revenue performance remained healthy as our guests value
the market-leading entertainment and amenities our properties
provide. Our performance in Black Hawk, which remains under heavy
construction, demonstrates both our ability to drive further growth
and the long-term potential of the Black Hawk market.
“Our solid third quarter results were achieved
despite the impact of continued wage pressure, ongoing construction
disruption in Black Hawk and increased expenses related to some
management-level hiring in Black Hawk as we begin to prepare for
the expanded operation. Furthermore, our casino results at Atlantis
Casino Resort were again impacted by abnormally low table games
hold.
“Construction on our master planned expansion at
Monarch Casino Black Hawk continues at full speed as the team
concludes its work on the structure of the 23-story hotel tower and
turns its attention to the exterior of the building and the
build-out of interior spaces. Our contractor has informed us that
our new expanded casino, restaurants, retail areas and
approximately six floors of our new hotel tower will be completed
in the second quarter of 2019 and that the remaining hotel tower
floors and related amenities will be completed in the third quarter
of 2019.
“The continued revitalization of Reno and
significant investments being made throughout the Northern Nevada
market, along with the health of our Denver feeder market and soon
to be completed Monarch Casino Black Hawk expansion, favorably
positions Monarch to generate significant free cash flow over time.
In addition, we expect to retain our attractive leverage profile
through the end of construction at Monarch Casino Black Hawk as we
continue to fund a portion of the project with cash from
operations. With our strong financial position and attractive
growth opportunities, we believe the best days for Monarch are
ahead.”
New Revenue Recognition
StandardOn January 1, 2018, the Company adopted accounting
standard update No. 2014-09 (“ASC 606”) and all the related
amendments (“new revenue standard”) to all contracts which provides
consistency in the reported financial information within the gaming
industry. The Company applied the modified retrospective method and
recognized the cumulative effect of the initial application of the
new revenue standard as an adjustment to the opening balance of
retained earnings. The opening retained earnings adjustment
primarily related to the change in the accounting for the slot club
liability from the immediate revenue/cost method to the deferred
revenue method.
The new revenue standard also resulted in
reclassifications to and from revenues, promotional allowances and
operating expenses. Pursuant to the new revenue standard, food and
beverage, hotel and other complimentaries are now valued at their
retail price and included as revenues within their respective
categories, with a corresponding decrease in gaming revenues, as
the offsetting amount historically included in promotional
allowances has been eliminated. In addition, the cost of providing
these complimentary goods and services are now included as expenses
within their respective categories, resulting in a corresponding
decrease in casino expenses. While those changes have resulted in a
$35 thousand and $351 thousand increase in net revenue for the
three and nine months ending September 30, 2018, respectively, they
had no impact on adjusted EBITDA, net income and EPS (basic and
diluted).
Financial results for the three months and nine
months ending September 30, 2017 have not been restated and are
reported under the accounting standards in effect during those
periods. The Company has provided a reconciliation between the new
revenue standard and the old revenue standard for the three and
nine months ending September 30, 2018 at the end of this
release.
Summary of 2018 Third Quarter Operating
ResultsFor the 2018 third quarter, consolidated net
revenues of $64.4 million increased 2.1% from $63.0 million in the
prior year. Primarily due to the previously announced change in
revenue recognition accounting, casino revenues declined 31.0% year
over year while hotel revenues increased 25.3% and food and
beverage revenues increased 13.0%. Please see “Monarch Casino &
Resort, Inc. and Subsidiaries Reconciliation of Post to Pre ASC 606
Adoption” below for more information. Casino revenues were also
negatively impacted by low table games hold at Atlantis Casino
Resort.
Selling, general and administrative (“SG&A”)
expenses for the third quarter of 2018 were $16.8 million compared
to $16.4 million in the prior year period, driven primarily by
increased labor and utility expenses. As a percentage of net
revenue, SG&A expenses were 26.1% compared to 26.0% a year ago.
Casino operating expense as a percentage of casino revenue
decreased to 34.2% in the third quarter of 2018 compared to 39.3%
in the third quarter of 2017 due to the adoption of the new revenue
standard, partially offset by lower table games revenue at
Atlantis. Food and beverage operating expense as a percentage of
food and beverage revenue increased to 74.2% during the third
quarter of 2018 from 41.0% a year ago as a result of the adoption
of the new revenue standard, partially offset by improvements in
product cost. Hotel operating expense as a percentage of hotel
revenue decreased to 36.2% in the third quarter of 2018 compared to
37.4% in the same period in the prior year, primarily as a result
of operational cost efficiencies, partially offset by the effect of
the adoption of the new revenue standard.
The Company generated consolidated adjusted
EBITDA of $18.4 million in the third quarter of 2018, an increase
of $0.9 million, or 5.1%, over the same period a year ago. Net
income and diluted EPS for the third quarter of 2018 rose 20.3% and
18.4%, respectively, partially benefiting from a lower tax rate as
a result of the Tax Cuts and Jobs Act enacted late last year.
Monarch Black Hawk
ExpansionSummarized below is an update on the Company’s
ongoing upgrade and expansion of Monarch Casino Black Hawk,
including the budgeted costs and completion dates for the project
as well as the amounts spent through September 30, 2018:
$ in millions |
|
|
Budget Cost |
|
Total Spent ThroughSeptember 30,
2018 |
|
Left toSpend |
|
Estimated Completion Date |
I. Existing Facility |
|
|
|
|
|
|
|
|
|
Monarch Casino Black Hawk (1) |
|
|
$76 |
|
$76 |
|
- |
|
Completed |
Existing Facility Upgrade (2)(3) |
|
|
$34 - $36 |
|
$24 |
|
$10- $12 |
|
Interior completed;Exterior
1Q19 |
Total Existing
Facility |
|
|
$110 -
$112 |
|
$100 |
|
$10 - $12 |
|
|
|
|
|
|
|
|
|
|
|
|
II. Expansion |
|
|
|
|
|
|
|
|
|
Acquired Land Parcels |
|
|
$10 |
|
$10 |
|
- |
|
Completed |
Parking Structure |
|
|
$38 - $41 |
|
$41 |
|
- |
|
Completed |
Hotel Tower & Casino (3) |
|
|
$264 - $269 |
|
$105 |
|
$159 - $164 |
|
3Q19 |
Other |
|
|
$8 - $10 |
|
$10 |
|
- |
|
|
Total
Expansion |
|
|
$320 -
$330 |
|
$166 |
|
$159- $164 |
|
|
Total
Cost |
|
|
$430 -
$442 |
|
$266 |
|
$169 - $176 |
|
|
|
|
|
|
|
|
|
|
|
|
(1) The Company paid $76.0 million cash or $69.2
million net of acquired working capital and NOLs when it acquired
Monarch Casino Black Hawk (formerly Riviera Black Hawk Casino) in
2012. |
(2) Includes upgrades to the interior, which were
completed in August 2015, demolition of the original garage, and
upgrades to the exterior of the existing facility to match the
design of the master planned expansion. |
(3) The Company anticipates funding the hotel
tower and casino expansion, as well as the existing facility
exterior upgrades, from a combination of operating cash flow and
the amended and restated credit facility (the “Amended Credit
Facility”). |
As stated above, our contractor has informed us
that expanded casino, restaurants, retail areas and approximately
six floors of our new hotel tower will be completed in the second
quarter of 2019 and that the remaining hotel tower floors and
related amenities will be completed in the third quarter of
2019.
Credit Facility and
LiquidityCapital expenditures of $41.2 million in the
third quarter of 2018 include construction costs related to the
Monarch Casino Black Hawk expansion and ongoing capital maintenance
spending. Capital expenditures were funded from the Company’s
operating cash flows as well as $32.3 million of borrowings against
Monarch’s Amended Credit Facility during the quarter. The amount
outstanding on Monarch’s Amended Credit Facility as of September
30, 2018 was approximately $69.3 million.
Interest expense, net of amount capitalized, for
the third quarter of 2018 was $55 thousand, compared to $161
thousand in the third quarter of 2017.
Monarch continues to believe that its operating
cash flow and the approximately $180.1 million available under its
Amended Credit Facility will be sufficient to fund all remaining
costs related to the completion of the Monarch Casino Black Hawk
expansion.
Forward-Looking StatementsThis
press release contains forward-looking statements within the
meaning of Section 21E of the Securities Exchange Act of 1934, as
amended, including, but not limited to, statements relating to (i)
our plans, objectives, near- and long-term outlook, opportunities,
expectations, growth prospects and future operations with respect
to Atlantis Casino Resort Spa and Monarch Casino Black Hawk and the
markets in their respective regions; (ii) our plans, costs,
financing, and additional expenses and revenue opportunities as a
result of project and budget modifications, construction,
completion and opening timelines of upgraded, redesigned and/or
expanded facilities at Monarch Casino Black Hawk; and (iii) our
expectations regarding our future position in the market and the
quality of service we provide to our guests. Actual results and
future events and conditions may differ materially from those
described in any forward-looking statements. Important factors that
could cause actual results to differ materially from estimates or
projections contained in the forward-looking statements include,
without limitation:
- construction factors, including
delays, disruptions, increased costs of labor and materials,
contractor disagreements, availability of labor and materials,
zoning issues, environmental restrictions, soil and water
conditions, weather and other hazards, site access matters,
building permit issues and other regulatory approvals or
issues;
- we have not yet entered into a
guaranteed maximum price (“GMP”) construction contract with our
Monarch Casino Black Hawk general contractor and negotiation of the
GMP may involve disagreements between the parties;
- components of our Monarch Casino
Black Hawk construction project will be outside the scope of any
GMP contract;
- access to available and reasonable
financing on a timely basis;
- our ability to generate sufficient
operating cash flow to help finance our expansion plans;
- our ability to effectively manage
expenses to optimize its margins and operating results;
- changes in laws and regulations
permitting expanded and other forms of gaming in our key
markets;
- the effects of local and national
economic, credit and capital market conditions on the economy in
general and on the gaming industry and our business in
particular;
- guest acceptance of our expanded
facilities once completed and the resulting impact on our market
position, growth and future financial results; and
- competition in our target market
areas
Additional information concerning potential
factors that could adversely affect all forward-looking statements,
including the Company's financial results, is included in our
Securities and Exchange Commission filings, including our most
recent annual report on Form 10-K and quarterly report on Form
10-Q, which are available on our website at
www.monarchcasino.com.
About Monarch Casino &
Resort, Inc.
Monarch Casino & Resort, Inc., through its
subsidiaries, owns and operates the Atlantis Casino Resort Spa, a
hotel/casino facility in Reno, Nevada, and the Monarch Casino Black
Hawk in Black Hawk, Colorado, approximately 40 miles west of
Denver. For additional information on Monarch, visit Monarch's
website at www.monarchcasino.com.
The Atlantis features approximately 61,000
square feet of casino space; 824 guest rooms; eight food outlets;
two espresso and pastry bars; a 30,000 square-foot health spa and
salon with an enclosed year-round pool; two retail outlets offering
clothing and traditional gift shop merchandise; an 8,000
square-foot family entertainment center; and approximately 52,000
square feet of banquet, convention and meeting room space. The
casino features approximately 1,450 slot and video poker machines;
approximately 38 table games, including blackjack, craps, roulette,
and others; a race and sports book; a 24-hour live keno lounge; and
a poker room.
The Monarch Casino Black Hawk features
approximately 30,000 square feet of casino space; approximately 740
slot machines; 14 table games; a 250-seat buffet-style restaurant;
a snack bar and a new nine-story parking structure with
approximately 1,350 spaces, plus additional existing valet parking
bringing total parking capacity to 1,500 spaces. Once completed,
the Monarch Casino Black Hawk expansion will nearly double the
casino space and will add a 23-story hotel tower with approximately
500 guest rooms and suites, an upscale spa and pool facility, three
restaurants (bringing the total to four restaurants), additional
bars, and associated support facilities.
Contacts:David FarahiChief
Operating Officer775/825-4700 or dfarahi@monarchcasino.com
Joseph Jaffoni, Richard Land, James
LeahyJCIR212/835-8500 or mcri@jcir.com
- financial tables follow -
MONARCH CASINO & RESORT, INC. AND
SUBSIDIARIES |
CONDENSED CONSOLIDATED STATEMENTS OF
INCOME |
(In thousands, except per share data) |
(Unaudited) |
|
|
Three months ended September
30, |
|
Nine months endedSeptember
30, |
|
|
2018 |
|
2017 |
|
2018 |
|
2017 |
Revenues |
|
|
|
|
|
|
|
|
Casino |
|
$ |
33,504 |
|
|
$ |
48,574 |
|
|
$ |
94,591 |
|
|
$ |
135,207 |
|
Food and
beverage |
|
|
18,472 |
|
|
|
16,342 |
|
|
|
52,951 |
|
|
|
47,394 |
|
Hotel |
|
|
9,167 |
|
|
|
7,316 |
|
|
|
23,627 |
|
|
|
19,204 |
|
Other |
|
|
3,216 |
|
|
|
3,191 |
|
|
|
9,367 |
|
|
|
9,039 |
|
Gross revenues |
|
|
64,359 |
|
|
|
75,423 |
|
|
|
180,536 |
|
|
|
210,844 |
|
Less
promotional allowances |
|
|
- |
|
|
|
(12,396 |
) |
|
|
- |
|
|
|
(36,174 |
) |
Net
revenues |
|
|
64,359 |
|
|
|
63,027 |
|
|
|
180,536 |
|
|
|
174,670 |
|
|
|
|
|
|
|
|
|
|
Operating expenses |
|
|
|
|
|
|
|
|
Casino |
|
|
11,455 |
|
|
|
19,097 |
|
|
|
33,007 |
|
|
|
54,837 |
|
Food and beverage |
|
|
13,700 |
|
|
|
6,699 |
|
|
|
39,990 |
|
|
|
19,461 |
|
Hotel |
|
|
3,315 |
|
|
|
2,735 |
|
|
|
9,870 |
|
|
|
7,192 |
|
Other |
|
|
1,571 |
|
|
|
1,126 |
|
|
|
4,681 |
|
|
|
3,133 |
|
Selling,
general and administrative |
|
|
16,793 |
|
|
|
16,398 |
|
|
|
48,130 |
|
|
|
46,117 |
|
Depreciation and amortization |
|
|
3,651 |
|
|
|
3,722 |
|
|
|
11,081 |
|
|
|
11,397 |
|
Loss on
disposition of assets |
|
|
8 |
|
|
|
- |
|
|
|
12 |
|
|
|
4 |
|
Total operating expenses |
|
|
50,493 |
|
|
|
49,777 |
|
|
|
146,771 |
|
|
|
142,141 |
|
Income
from operations |
|
|
13,866 |
|
|
|
13,250 |
|
|
|
33,765 |
|
|
|
32,529 |
|
|
|
|
|
|
|
|
|
|
Other expenses |
|
|
|
|
|
|
|
|
Interest
expense, net of amounts capitalized |
|
|
(55 |
) |
|
|
(161 |
) |
|
|
(177 |
) |
|
|
(639 |
) |
Total other expense |
|
|
(55 |
) |
|
|
(161 |
) |
|
|
(177 |
) |
|
|
(639 |
) |
|
|
|
|
|
|
|
|
|
Income
before income taxes |
|
|
13,811 |
|
|
|
13,089 |
|
|
|
33,588 |
|
|
|
31,890 |
|
Provision for income
taxes |
|
|
(2,952 |
) |
|
|
(4,059 |
) |
|
|
(6,749 |
) |
|
|
(10,749 |
) |
Net
income |
|
$ |
10,859 |
|
|
$ |
9,030 |
|
|
$ |
26,839 |
|
|
$ |
21,141 |
|
|
|
|
|
|
|
|
|
|
Earnings per share of
common stock |
|
|
|
|
|
|
|
|
Net
income |
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.61 |
|
|
$ |
0.51 |
|
|
$ |
1.51 |
|
|
$ |
1.20 |
|
Diluted |
|
$ |
0.58 |
|
|
$ |
0.49 |
|
|
$ |
1.44 |
|
|
$ |
1.16 |
|
|
|
|
|
|
|
|
|
|
Weighted average number
of commonshares and potential common sharesoutstanding |
|
|
|
|
|
|
|
|
Basic |
|
|
17,886 |
|
|
|
17,616 |
|
|
|
17,826 |
|
|
|
17,541 |
|
Diluted |
|
|
18,631 |
|
|
|
18,398 |
|
|
|
18,582 |
|
|
|
18,212 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MONARCH CASINO &
RESORT, INC. AND SUBSIDIARIES |
CONDENSED CONSOLIDATED BALANCE
SHEETS |
(In thousands, except shares) |
|
|
September 30, |
|
December 31, |
|
|
2018 |
|
2017 |
ASSETS |
|
(unaudited) |
|
|
Current assets |
|
|
|
|
Cash and cash equivalents |
|
$ |
34,694 |
|
|
$ |
29,151 |
|
Receivables, net |
|
|
6,933 |
|
|
|
6,925 |
|
Income taxes receivable |
|
|
- |
|
|
|
2,008 |
|
Inventories |
|
|
3,324 |
|
|
|
3,335 |
|
Prepaid expenses |
|
|
4,611 |
|
|
|
4,612 |
|
Total current assets |
|
|
49,562 |
|
|
|
46,031 |
|
Property and equipment |
|
|
|
|
Land |
|
|
30,034 |
|
|
|
30,034 |
|
Land improvements |
|
|
7,281 |
|
|
|
7,249 |
|
Buildings |
|
|
193,286 |
|
|
|
193,286 |
|
Buildings improvements |
|
|
25,460 |
|
|
|
24,745 |
|
Furniture and equipment |
|
|
143,726 |
|
|
|
140,404 |
|
Construction in progress |
|
|
136,089 |
|
|
|
48,834 |
|
Leasehold improvements |
|
|
3,782 |
|
|
|
3,800 |
|
|
|
|
539,658 |
|
|
|
448,352 |
|
Less accumulated depreciation and amortization |
|
|
(207,692 |
) |
|
|
(197,638 |
) |
Net property and equipment |
|
|
331,966 |
|
|
|
250,714 |
|
Other assets |
|
|
|
|
Goodwill |
|
|
25,111 |
|
|
|
25,111 |
|
Intangible assets, net |
|
|
2,995 |
|
|
|
3,869 |
|
Deferred income taxes |
|
|
3,543 |
|
|
|
3,544 |
|
Other assets, net |
|
|
2,415 |
|
|
|
2,818 |
|
Total other assets |
|
|
34,064 |
|
|
|
35,342 |
|
Total assets |
|
$ |
415,592 |
|
|
$ |
332,087 |
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
Current liabilities |
|
|
|
|
Accounts payable |
|
$ |
8,875 |
|
|
$ |
8,184 |
|
Construction accounts payable |
|
|
14,775 |
|
|
|
5,823 |
|
Accrued expenses |
|
|
29,929 |
|
|
|
25,406 |
|
Income taxes payable |
|
|
91 |
|
|
|
- |
|
Total current liabilities |
|
|
53,670 |
|
|
|
39,413 |
|
Long - term debt |
|
|
69,270 |
|
|
|
26,200 |
|
Total liabilities |
|
|
122,940 |
|
|
|
65,613 |
|
Stockholders' equity |
|
|
|
|
Preferred stock, $.01 par value, 10,000,000 shares
authorized; none issued |
|
|
- |
|
|
|
- |
|
Common stock, $.01 par value, 30,000,000 shares
authorized; |
|
|
191 |
|
|
|
191 |
|
19,096,300 shares issued; 17,894,057
outstanding at September 30, 2018; |
|
|
|
|
17,759,446 outstanding at December 31,
2017 |
|
|
|
|
Additional paid-in capital |
|
|
29,188 |
|
|
|
26,890 |
|
Treasury stock, 1,202,243 shares at September 30,
2018; 1,336,854 shares |
|
|
(16,224 |
) |
|
|
(18,123 |
) |
at December 31, 2017 |
|
|
|
|
Retained earnings |
|
|
279,497 |
|
|
|
257,516 |
|
Total stockholders' equity |
|
|
292,652 |
|
|
|
266,474 |
|
Total liabilities and stockholders'
equity |
|
$ |
415,592 |
|
|
$ |
332,087 |
|
|
MONARCH CASINO & RESORT, INC. AND
SUBSIDIARIESRECONCILIATION OF POST TO PRE ASC 606
ADOPTION (In thousands, unaudited)
|
|
|
Three Months Ended September 30,
2018 |
|
|
Post ASC 606Adoption |
|
ASC 606Changes |
|
|
Pre ASC 606Adoption |
Revenues |
|
|
|
|
|
|
|
Casino |
|
$33,504 |
|
$15,755 |
|
(a)(b)(c)(d) |
|
$49,259 |
|
Food and beverage |
|
18,472 |
|
(1,412 |
) |
(a)(d)(e) |
|
17,060 |
|
Hotel |
|
9,167 |
|
(1,477 |
) |
(a)(f) |
|
7,690 |
|
Other |
|
3,216 |
|
37 |
|
(a)(d) |
|
3,253 |
|
Gross revenues |
|
64,359 |
|
12,903 |
|
|
|
77,262 |
|
Less promotional allowances |
|
- |
|
(12,938 |
) |
(a)(d) |
|
(12,938 |
) |
Net revenues |
|
64,359 |
|
(35 |
) |
(b)(c)(e)(f) |
|
64,324 |
|
|
|
|
|
|
|
|
|
Operating expenses |
|
|
|
|
|
|
|
Casino |
|
11,455 |
|
8,521 |
|
(b)(c)(g) |
|
19,976 |
|
Food and beverage |
|
13,700 |
|
(7,271 |
) |
(e)(g) |
|
6,429 |
|
Hotel |
|
3,315 |
|
(748 |
) |
(f)(g) |
|
2,567 |
|
Other |
|
1,571 |
|
(537 |
) |
(g) |
|
1,034 |
|
Selling, general and administrative |
|
16,793 |
|
- |
|
|
|
16,793 |
|
Depreciation and amortization |
|
3,651 |
|
- |
|
|
|
3,651 |
|
Loss on disposal of assets |
|
8 |
|
- |
|
|
|
8 |
|
Total operating expenses |
|
50,493 |
|
(35 |
) |
|
|
50,458 |
|
Income from operations |
|
13,866 |
|
- |
|
|
|
13,866 |
|
Adjusted EBITDA (1) |
|
$18,427 |
|
- |
|
|
|
$18,427 |
|
|
|
|
|
|
|
|
|
(1) |
|
|
Definitions, disclosures
and reconciliations of non-GAAP financial information are included
later in the release. |
|
|
|
|
(a) |
|
|
Change as a result of
reclassification of current period complimentaries at estimated
retail price from promotional allowances to casino, food and
beverage, hotel, spa and retail revenues. |
(b) |
|
|
Change as a result of
reclassification of the earned and unused points during the period
from casino expense to casino revenue. |
(c) |
|
|
Change as a result of
reclassification of the wide area progressive system expense from
casino revenue to casino expense. |
(d) |
|
|
Change as a result of the
change of the casino floor bars menu prices and some retail outlets
prices from discounted to retail price. |
(e) |
|
|
Change as a result of
reclassification of the banquets service fees from food and
beverage expense to food and beverage revenue. |
(f) |
|
|
Change as a result of
reclassification of the group rebates and commissions from hotel
expense to hotel revenue. |
(g) |
|
|
Change as a result of the
elimination of the reclassification journal entry that reclassified
the costs of complimentaries from hotel, food and beverage and
other expense categories to casino expense. Under ASC 606, the
costs of complimentaries stay in the complimentaries revenue
producing department. |
|
|
|
|
MONARCH CASINO & RESORT, INC. AND
SUBSIDIARIESRECONCILIATION OF POST TO PRE ASC 606
ADOPTION (In thousands, unaudited)
|
|
|
Nine Months Ended September 30,
2018 |
|
|
Post ASC 606Adoption |
|
ASC 606Changes |
|
|
Pre ASC 606Adoption |
Revenues |
|
|
|
|
|
|
|
Casino |
|
$94,591 |
|
$44,341 |
|
(a)(b)(c)(d) |
|
$138,932 |
|
Food and beverage |
|
52,951 |
|
(4,228 |
) |
(a)(d)(e) |
|
48,723 |
|
Hotel |
|
23,627 |
|
(3,414 |
) |
(a)(f) |
|
20,213 |
|
Other |
|
9,367 |
|
81 |
|
(a)(d) |
|
9,448 |
|
Gross revenues |
|
180,536 |
|
36,780 |
|
|
|
217,316 |
|
Less promotional allowances |
|
- |
|
(37,131 |
) |
(a)(d) |
|
(37,131 |
) |
Net revenues |
|
180,536 |
|
(351 |
) |
(b)(c)(e)(f) |
|
180,185 |
|
|
|
|
|
|
|
|
|
Operating expenses |
|
|
|
|
|
|
|
Casino |
|
33,007 |
|
24,852 |
|
(b)(c)(g) |
|
57,859 |
|
Food and beverage |
|
39,990 |
|
(21,138 |
) |
(e)(g) |
|
18,852 |
|
Hotel |
|
9,870 |
|
(2,481 |
) |
(f)(g) |
|
7,389 |
|
Other |
|
4,681 |
|
(1,584 |
) |
(g) |
|
3,097 |
|
Selling, general and administrative |
|
48,130 |
|
- |
|
|
|
48,130 |
|
Depreciation and amortization |
|
11,081 |
|
- |
|
|
|
11,081 |
|
Loss on disposal of assets |
|
12 |
|
- |
|
|
|
12 |
|
Total operating expenses |
|
146,771 |
|
(351 |
) |
|
|
146,420 |
|
Income from operations |
|
33,765 |
|
- |
|
|
|
33,765 |
|
Adjusted EBITDA (1) |
|
$47,151 |
|
- |
|
|
|
$47,151 |
|
|
|
|
|
|
|
|
|
(1) |
|
|
Definitions, disclosures
and reconciliations of non-GAAP financial information are included
later in the release. |
|
|
|
|
(a) |
|
|
Change as a result of
reclassification of current period complimentaries at estimated
retail price from promotional allowances to casino, food and
beverage, hotel, spa and retail revenues. |
(b) |
|
|
Change as a result of
reclassification of the earned and unused points during the period
from casino expense to casino revenue. |
(c) |
|
|
Change as a result of
reclassification of the wide area progressive system expense from
casino revenue to casino expense. |
(d) |
|
|
Change as a result of the
change of the casino floor bars menu prices and some retail outlets
prices from discounted to retail price. |
(e) |
|
|
Change as a result of
reclassification of the banquets service fees from food and
beverage expense to food and beverage revenue. |
(f) |
|
|
Change as a result of
reclassification of the groups rebate and commissions from hotel
expense to hotel revenue. |
(g) |
|
|
Change as a result of the
elimination of the reclassification journal entry that reclassified
the costs of complimentaries from hotel, food and beverage and
other expense categories to casino expense. Under ASC 606, the
costs of complimentaries stay in the complimentaries revenue
producing department. |
|
|
|
|
MONARCH CASINO & RESORT, INC. AND
SUBSIDIARIESRECONCILIATION OF ADJUSTED EBITDA TO
NET INCOME (In thousands, unaudited)
The following table sets forth a reconciliation of Adjusted
EBITDA, a non-GAAP financial measure, to net income, a GAAP
financial
measure:
|
|
Three Months EndedSeptember
30, |
|
Nine Months EndedSeptember
30, |
|
|
2018 |
|
2017 |
|
2018 |
|
2017 |
Adjusted EBITDA (1) |
|
$18,427 |
|
|
$17,541 |
|
|
$47,151 |
|
|
$45,457 |
|
Expenses: |
|
|
|
|
|
|
|
|
Stock based compensation |
|
(902 |
) |
|
(569 |
) |
|
(2,293 |
) |
|
(1,527 |
) |
Depreciation and amortization |
|
(3,651 |
) |
|
(3,722 |
) |
|
(11,081 |
) |
|
(11,397 |
) |
Interest expense, net of amount
capitalized |
|
(55 |
) |
|
(161 |
) |
|
(177 |
) |
|
(639 |
) |
Loss on disposition of assets |
|
(8 |
) |
|
- |
|
|
(12 |
) |
|
(4 |
) |
Provision for income taxes |
|
(2,952 |
) |
|
(4,059 |
) |
|
(6,749 |
) |
|
(10,749 |
) |
Net income |
|
$10,859 |
|
|
$9,030 |
|
|
$26,839 |
|
|
$21,141 |
|
|
|
|
|
(1) |
|
|
Adjusted EBITDA, a
non-GAAP financial measure, consists of net income plus loss on
disposal of assets, provision for income taxes, stock based
compensation expense, other one-time charges, interest expense,
depreciation and amortization less interest income, any benefit for
income taxes and gain on disposal of assets. Adjusted EBITDA should
not be construed as an alternative to operating income (as
determined in accordance with US Generally Accepted Accounting
Principles), as an indicator of the Company's operating
performance, as an alternative to cash flows from operating
activities (as determined in accordance with US GAAP) or as a
measure of liquidity. This measure enables comparison of the
Company's performance over multiple periods, as well as against the
performance of other companies in our industry that report Adjusted
EBITDA, although some companies do not calculate this measure in
the same manner and, therefore, the measure as presented may not be
comparable to similarly titled measures presented by other
companies. |
|
|
|
|
Monarch Casino and Resort (NASDAQ:MCRI)
Historical Stock Chart
From Aug 2024 to Sep 2024
Monarch Casino and Resort (NASDAQ:MCRI)
Historical Stock Chart
From Sep 2023 to Sep 2024