MONARCH CASINO & RESORT, INC.
Condensed Consolidated Statements of Income
(Unaudited)
Three Months Ended
March 31,
--------------------------
2010 2009
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Revenues
Casino $ 24,154,140 $ 22,804,499
Food and beverage 9,983,603 9,593,068
Hotel 5,178,067 4,818,839
Other 1,979,694 1,694,353
------------ ------------
Gross revenues 41,295,504 38,910,759
Less promotional allowances (6,943,952) (6,331,575)
------------ ------------
Net revenues 34,351,552 32,579,184
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Operating expenses
Casino 9,328,341 8,952,220
Food and beverage 4,364,454 4,635,397
Hotel 1,433,139 1,573,243
Other 640,111 684,120
Selling, general and administrative 11,063,126 11,619,722
Depreciation and amortization 3,306,811 3,180,955
------------ ------------
Total operating expenses 30,135,982 30,645,657
------------ ------------
Income from operations 4,215,570 1,933,527
------------ ------------
Other expense
Interest income - 35,418
Interest expense (458,424) (550,210)
------------ ------------
Total other expense (458,424) (514,792)
------------ ------------
Income before income taxes 3,757,146 1,418,735
Provision for income taxes (1,315,000) (496,575)
------------ ------------
Net income $ 2,442,146 $ 922,160
============ ============
Earnings per share of common stock
Net income
Basic $ 0.15 $ 0.06
Diluted $ 0.15 $ 0.06
Weighted average number of common shares
and potential common shares outstanding
Basic 16,125,388 16,122,048
Diluted 16,151,408 16,148,037
MONARCH CASINO & RESORT, INC.
Condensed Consolidated Balance Sheets
March 31, December 31,
------------- -------------
2010 2009
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(Unaudited)
ASSETS
Current assets
Cash and cash equivalents $ 10,539,116 $ 14,420,323
Receivables, net 3,040,612 2,294,703
Inventories 1,548,243 1,706,867
Prepaid expenses 3,166,543 2,623,650
Deferred income taxes 1,090,063 1,090,063
------------- -------------
Total current assets 19,384,577 22,135,606
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Property and equipment
Land 13,172,522 13,172,522
Land improvements 3,511,484 3,511,484
Buildings 140,522,106 140,522,106
Building improvements 10,410,770 10,410,770
Furniture and equipment 109,462,469 107,655,784
Leasehold improvements 1,346,965 1,346,965
------------- -------------
278,426,316 276,619,631
Less accumulated depreciation and
amortization (116,849,481) (113,538,145)
------------- -------------
Net property and equipment 161,576,835 163,081,486
Other assets, net 505,228 569,622
------------- -------------
Total assets $ 181,466,640 $ 185,786,714
============= =============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Borrowings under credit facility $ - $ 1,000,000
Accounts payable 7,641,845 8,984,010
Accrued expenses 11,627,067 11,056,079
Federal income taxes payable 1,111,546 46,546
------------- -------------
Total current liabilities 20,380,458 21,086,635
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Long-term debt, less current maturities 41,000,000 47,500,000
Deferred income taxes 4,695,657 4,695,657
------------- -------------
Total liabilities 66,076,115 73,282,292
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Stockholders' equity
Preferred stock, $.01 par value, 10,000,000
shares authorized; none issued - -
Common stock, $.01 par value, 30,000,000
shares authorized; 19,096,300 shares issued;
16,125,388 outstanding at 3/31/10
16,125,388 outstanding at 12/31/09 190,963 190,963
Additional paid-in capital 30,485,040 30,041,083
Treasury stock, 2,970,912 shares at 3/31/10
2,970,912 shares at 12/31/09, at cost (48,864,979) (48,864,979)
Retained earnings 133,579,501 131,137,355
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Total stockholders' equity 115,390,525 112,504,422
------------- -------------
Total liabilities and stockholder's
equity $ 181,466,640 $ 185,786,714
============= =============
MONARCH CASINO & RESORT, INC.
Reconciliation of Net Income to EBITDA(1)
(Unaudited)
Three Months Ended
March 31,
------------------------
2010 2009
------------ -----------
Net Income $ 2,442,146 $ 922,160
Adjustments
Provision for income taxes 1,315,000 496,575
Interest expense 458,424 550,210
Depreciation & amortization 3,306,811 3,180,955
Interest income - (35,418)
------------ -----------
EBITDA(1) $ 7,522,381 $ 5,114,482
============ ===========
(1) "EBITDA" consists of net income plus provision for income taxes,
interest expense, depreciation and amortization less interest income.
EBITDA should not be construed as an alternative to operating income (as
determined in accordance with 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
generally accepted accounting principles) or as a measure of liquidity.
This item enables comparison of the Company's performance with the
performance of other companies that report 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.
Contact Information: Contacts: Ron Rowan, CFO at (775) 825-4700 or John Farahi, CEO at (775) 825-4700 or For additional information visit Monarch's web site at monarchcasino.com.