-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, PMWg8UyD23hTEttfAIApF5Wpe7F/MmI8PmRXLQ4zA2TOoegi7cCehm0dTC8wkvn/ FYwd8rI0hfy3NQ6MdancoA== 0000907242-04-000011.txt : 20040427 0000907242-04-000011.hdr.sgml : 20040427 20040427112257 ACCESSION NUMBER: 0000907242-04-000011 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20040426 ITEM INFORMATION: Other events FILED AS OF DATE: 20040427 FILER: COMPANY DATA: COMPANY CONFORMED NAME: MONARCH CASINO & RESORT INC CENTRAL INDEX KEY: 0000907242 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-MISCELLANEOUS AMUSEMENT & RECREATION [7990] IRS NUMBER: 880300760 STATE OF INCORPORATION: NV FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-22088 FILM NUMBER: 04755941 BUSINESS ADDRESS: STREET 1: 1175 W MOANA LANE STREET 2: STE 200 CITY: RENO STATE: NV ZIP: 89509 BUSINESS PHONE: 7758253355 MAIL ADDRESS: STREET 1: 1175 W MOANA LANE STREET 2: STE 200 CITY: RENO STATE: NV ZIP: 89509 8-K 1 q1earn04.txt UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ---------------------- FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of Report (Date of earliest event reported): April 26, 2004 MONARCH CASINO & RESORT, INC. (Exact name of registrant as specified in its charter) NEVADA 0-22088 88-0300760 (State or other jurisdiction (Commission (I.R.S. Employer of incorporation) File Number) Identification No.) 1175 W. Moana Lane, Suite 200 Reno, NEVADA 89509 (Address of Principal Executive Offices) (Zip Code) (775)825-3355 ---------------------------------------------------- (Registrant's telephone number, including area code) NOT APPLICABLE ---------------------------------------------------- (Former name or former address, if changed since last report) ITEM 12. Results of Operations and Financial Condition On April 26, 2004, Monarch Casino & Resort, Inc. (the "Company") issued a press release reporting the Company's financial results for the first quarter ended March 31, 2004. A copy of the press release is attached hereto as Exhibit 99.1 and incorporated herein by reference. ITEM 7. Financial Statements and Exhibits (c) EXHIBITS 99.1 Text of press release dated April 26, 2004. -2- SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. MONARCH CASINO & RESORT, INC. Date: April 26, 2004 By: /s/ Ben Farahi ------------------------------- Name: Ben Farahi Title: Chief Financial Officer, Treasurer and Secretary -3- Exhibit 99.1 PRESS RELEASE MONARCH CASINO & RESORT, INC. ANNOUNCES RECORD FIRST QUARTER RESULTS - EPS BEATS 2003 RECORD FIRST QUARTER BY $0.10 - RENO, NV-April 26, 2004- 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." -4- Monarch Casino & Resort, Inc., through its wholly-owned subsidiary, owns and operates the tropically-themed Atlantis Casino Resort in Reno, Nevada. The Atlantis is the closest hotel-casino to and is directly across the street from the Reno-Sparks Convention Center. The Atlantis is recognizable due to its Sky Terrace, a unique structure rising approximately 55 feet from street level and spanning 160 feet across the street with no intermediate support pillars. The Sky Terrace connects the Atlantis to a 16-acre parcel of land owned by the Company, that is compliant with all casino zoning requirements and is suitable and available for future expansion of the Atlantis facilities and is currently being used by the Company as additional paved parking for the Atlantis. The existing Atlantis site offers almost 1,000 guest rooms in three contiguous high-rise hotel towers and a motor lodge. The tropically-themed Atlantis features approximately 51,000 square feet of high-energy casino space with 37 table games and approximately 1,450 slot and video poker machines, a sports book, Keno and a poker room, and offers a variety of dining choices in the form of nine high-quality food outlets. This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934 which are subject to change, including, but not limited to, comments relating to (i) future operating performance and (ii) the financial benefits that may result from future operations. The actual results may differ materially from those described in any forward-looking statements. Additional information concerning potential factors that could affect the Company?s financial results is included in the Company?s Securities and Exchange Commission filings, which are available on the Company's web site. Contacts: Ben Farahi at (775) 825-3355 or benfarahi@monarchcasino.com Karl G. Brokmann at (775) 825-3355 or kbrokmann@monarchcasino.com For additional information including artist renditions and photographs, visit Monarch's web site at monarchcasino.com. (1) "EBITDA" consists of net income plus provision for income taxes, other expenses (income), and depreciation and amortization. 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, or as an alternative to cash flows from operating activities (as determined in accordance with generally accepted accounting principles) 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. -5- MONARCH CASINO & RESORT, INC. CONDENSED CONSOLIDATED STATEMENTS OF INCOME
Three Months Ended March 31, ---------------------------- 2004 2003 ------------ ------------ (Unaudited) (Unaudited) Revenues Casino...................................... $ 19,902,851 $ 17,739,705 Food and beverage........................... 8,825,823 8,211,408 Hotel....................................... 5,518,305 4,716,178 Other....................................... 863,030 885,745 ------------ ------------ Gross revenues........................... 35,110,009 31,553,036 Less promotional allowances................. (4,624,031) (4,385,108) ------------ ------------ Net revenues............................. 30,485,978 27,167,928 ------------ ------------ Operating expenses Casino...................................... 7,440,671 7,126,103 Food and beverage........................... 4,391,722 4,123,738 Hotel....................................... 2,067,987 1,645,979 Other....................................... 318,463 304,566 Selling, general, and administrative........ 8,519,406 7,852,184 Depreciation and amortization............... 3,003,359 2,600,409 ------------ ------------ Total operating expenses................. 25,741,608 23,652,979 ------------ ------------ Income from operations................... 4,744,370 3,514,949 Other expense Interest expense............................ 429,961 449,880 Stockholder guarantee fee expense........... 136,164 281,342 ------------ ------------ Total other expense...................... 566,125 731,222 ------------ ------------ Income before income taxes............... 4,178,245 2,783,727 Provision for income taxes.................... 1,420,000 945,800 ------------ ------------ Net income............................... $ 2,758,245 $ 1,837,927 ============ ============ Earnings per share of common stock Net income Basic..................................... $ 0.30 $ 0.19 Diluted................................... $ 0.29 $ 0.19 Weighted average number of common shares and potential common shares outstanding Basic................................... 9,344,736 9,468,308 Diluted................................. 9,382,256 9,503,599
-6- MONARCH CASINO & RESORT, INC. CONDENSED CONSOLIDATED BALANCE SHEETS
March 31, December 31, 2004 2003 ------------- ------------- (Unaudited) ASSETS Current assets Cash............................................ $ 11,076,465 $ 9,711,310 Receivables, net................................ 2,927,622 2,818,727 Federal income tax refund receivable............ - 756,698 Inventories..................................... 1,154,203 1,245,967 Prepaid expenses................................ 2,291,960 2,234,773 Deferred income taxes........................... 542,457 542,457 ------------- ------------- Total current assets......................... 17,992,707 17,309,932 ------------- ------------- Property and equipment Land............................................ 10,339,530 10,339,530 Land improvements............................... 3,226,913 3,226,913 Buildings....................................... 78,955,538 78,955,538 Building improvements........................... 6,364,841 6,304,642 Furniture and equipment......................... 64,847,425 63,230,354 ------------- ------------- 163,734,247 162,056,977 Less accumulated depreciation and amortization.. (64,627,410) (63,618,047) ------------- ------------- Net property and equipment................... 99,106,837 98,438,930 ------------- ------------- Other assets, net................................. 478,003 128,263 ------------- ------------- Total assets................................. $ 117,577,547 $ 115,877,125 ============= ============= LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Current maturities of long-term debt............ $ 6,574,981 $ 6,059,591 Accounts payable................................ 8,204,153 8,407,887 Accrued expenses................................ 5,766,059 6,707,257 Federal income taxes payable.................... 584,462 - ------------- ------------- Total current liabilities.................... 21,129,655 21,174,735 Long-term debt, less current maturities........... 39,900,000 41,125,000 Deferred income taxes............................. 4,933,427 4,854,587 Commitments and contingencies..................... Stockholders' equity Preferred stock, $.01 par value, 10,000,000 shares authorized; none issued................. - - Common stock, $.01 par value, 30,000,000 shares authorized; 9,536,275 issued; 9,329,830 outstanding at 03/31/2003, 9,474,830 outstanding at 12/31/2002............ 95,363 95,363 Additional paid-in capital...................... 17,381,548 17,432,635 Treasury stock, 206,445 shares at 03/31/2003, 61,445 shares at 12/31/2002, at cost......................... (1,253,110) (1,437,614) Retained earnings............................... 35,390,664 32,632,419 ------------- ------------- Total stockholders' equity................... 51,614,465 48,722,803 ------------- ------------- Total liabilities and stockholders' equity... $ 117,577,547 $ 115,877,125 ============= =============
-7- MONARCH CASINO & RESORT, INC. RECONCILIATION OF NET INCOME TO EBITDA (1) Three Months Ended March 31, ----------------------- 2004 2003 (unaudited) (unaudited) ----------- ----------- Net income $2,758,245 $1,837,927 Adjustments Provision for income taxes 1,420,000 945,800 Interest expense 429,961 449,880 Stockholder guarantee fee Expense 136,164 281,342 Depreciation & amortization 3,003,359 2,600,409 ----------- ----------- EBITDA (1) $7,747,729 $6,115,358 =========== =========== -8- -----END PRIVACY-ENHANCED MESSAGE-----