-----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, AE6TqOCVSeLY78Xi91YhpSBR1ny5LoH8XfMoreMR71JLOe9GN1jyhc2YHObK0zf+ cKHqCHxNxcCESbacsaGq7A== 0000907242-06-000011.txt : 20060221 0000907242-06-000011.hdr.sgml : 20060220 20060221135237 ACCESSION NUMBER: 0000907242-06-000011 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20060220 ITEM INFORMATION: Results of Operations and Financial Condition FILED AS OF DATE: 20060221 DATE AS OF CHANGE: 20060221 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: 06632379 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 q405earn8k.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): February 20, 2006 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 2.02 Results of Operations and Financial Condition On February 20, 2006, Monarch Casino & Resort, Inc. (the "Company") issued a press release reporting the Company's financial results for the fourth quarter and fiscal year ended December 31, 2005. A copy of the press release is attached hereto as Exhibit 99.1 and incorporated herein by reference. ITEM 9.01 Financial Statements and Exhibits (c) EXHIBITS 99.1 Text of press release dated February 20, 2006. -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: February 21, 2006 By: /s/ Ben Farahi ------------------------------- Name: Ben Farahi Title: Chief Financial Officer, Treasurer and Secretary -3- Exhibit 99.1 PRESS RELEASE MONARCH CASINO ANNOUNCES RECORD BREAKING FOURTH QUARTER AND FULL YEAR RESULTS - ANNUAL EBITDA (1) IMPROVES 15.5%; NET INCOME INCREASES 27.3% - RENO, NV-February 20, 2006- Monarch Casino & Resort, Inc. (Nasdaq: MCRI) (the "Company"), owner of the Atlantis Casino Resort in Reno, Nevada, today announced record financial results for its fourth quarter and fiscal year ended December 31, 2005. During the fourth quarter ended December 31, 2005, the Company reported EBITDA (1) of $9.6 million, a 23.9% improvement over the $7.8 million EBITDA (1) reported in the fourth quarter of 2004. The improved EBITDA (1) beat published consensus analysts' estimate of $8.9 million and was the result of record fourth quarter net revenues of $34.9 million and improving operating margins. Excluding depreciation and amortization, the Company's operating margin for the period improved to 27.6% of net revenues from 24.9% during the same period a year earlier. The record revenues were driven by a 17.1% increase in casino revenue, a 6.3% jump in food and beverage revenue and a 20.8% improvement in other revenues. The increases were partially offset by a 1.9% decrease in hotel revenue. Fourth quarter 2005 net income of $4.9 million was a record for the fourth quarter, a 26.8% increase from fourth quarter 2004 net income of $3.9 million for the same period a year earlier and translated into earnings per diluted share (EPS) of $0.26 versus $0.20 for the same period last year. The Company's fourth quarter 2005 diluted EPS beat the published consensus analysts' estimate of $0.23. For the full year 2005, the Company achieved EBITDA (1) of $41.4 million, a 15.5% improvement over the $35.9 million in 2004. Analysts had estimated a consensus $40.5 million in EBITDA (1) for 2005. The full year 2005 EBITDA (1) was also the result of record revenues combined with vastly improved margins and, in some cases, decreases in departmental expenses. The Company saw improved margins across all departments and, excluding depreciation and amortization, its operating margin for 2005 improved to 29.7% from 27.7% a year earlier. Net revenues increased 8.0% to $139.8 million in 2005 from $129.5 million in 2004. The increase in net revenues was led by a 12.3% improvement in casino revenue, a 3.3% increase in food and beverage revenue and a 20.5% increase in other revenue. Hotel revenue decreased 1.7% year over year. Net income for 2005 reached $21.0 million, an increase of 27.3% and easily beat the previous Company record of $16.5 million set in 2004. Diluted EPS was $1.10 in 2005 versus $0.88 in 2004, beating the published consensus analysts' estimate of $1.07. Monarch's CEO and Co-Chairman John Farahi praised the many attributes that led to the recent success: "Favorable economic factors in our area, combined with our superior location, quality of our product and our management's unmatched efforts and attention to detail, has led us to our continued success." Mr. Farahi added: "With our healthy balance sheet, we expect to explore a variety of options for our next expansion, which is currently in the preliminary planning stage." -4- During 2005, the Company reduced the unpaid principal balance under its credit facility by $24.3 million, bringing its outstanding unpaid balance to $8.1 million at year end 2005. The Company also announced today that its 2006 Annual Meeting of Stockholders will be held on Tuesday, May 23, 2006 at 10:00am local time, at the Company's Atlantis Casino Resort, 3800 South Virginia Street, Reno, Nevada. The record date for stockholders entitled to vote at the Annual Meeting is Thursday, April 6, 2006. 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 above street level and spanning 160 feet across Virginia 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 38 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) future expansion plans. 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, interest and stockholder guarantee fee expense, 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 (UNAUDITED)
Three Months Ended Twelve Months Ended December 31, December 31, -------------------------- -------------------------- 2005 2004 2005 2004 ------------ ------------ ------------ ------------ (Unaudited) (Unaudited) (Unaudited) (Unaudited) Revenues Casino................................ $ 24,178,576 $ 20,641,420 $ 94,501,028 $ 84,131,876 Food and beverage..................... 9,968,695 9,377,418 38,564,365 37,333,977 Hotel................................. 5,241,806 5,344,046 23,909,915 24,318,082 Other................................. 1,229,554 1,017,746 4,690,362 3,892,669 ------------ ------------ ------------ ------------ Gross revenues..................... 40,618,631 36,380,630 161,665,670 149,676,604 Less promotional allowances........... (5,726,735) (5,184,472) (21,880,793) (20,219,714) ------------ ------------ ------------ ------------ Net revenues....................... 34,891,896 31,196,158 139,784,877 129,456,890 ------------ ------------ ------------ ------------ Operating expenses Casino................................ 8,314,484 7,535,435 31,990,758 30,513,391 Food and beverage..................... 4,765,009 4,737,160 18,795,268 18,859,211 Hotel................................. 1,833,550 1,852,275 7,696,576 7,858,616 Other................................. 340,867 296,654 1,340,556 1,344,163 Selling, general, and administrative.. 9,850,834 9,007,820 38,073,313 34,979,998 Gaming development expense............ 165,894 - 439,984 - Depreciation and amortization......... 2,127,861 1,940,674 8,379,033 9,627,870 ------------ ------------ ------------ ------------ Total operating expenses........... 27,398,499 25,370,018 106,715,488 103,183,249 ------------ ------------ ------------ ------------ Income from operations............. 7,493,397 5,826,140 33,069,389 26,273,641 Other expense Interest expense...................... (122,411) (323,004) (1,013,377) (1,448,125) Stockholder guarantee fee expense..... - - - (136,164) ------------ ------------ ------------ ------------ Total other expense................ (122,411) (323,004) 1,013,377) (1,584,289) ------------ ------------ ------------ ------------ Income before income taxes......... 7,370,986 5,503,136 32,056,012 24,689,352 Provision for income taxes.............. 2,470,552 1,639,392 11,020,552 8,162,912 ------------ ------------ ------------ ------------ Net income......................... $ 4,900,434 $ 3,863,744 $ 21,035,460 $ 16,526,440 ============ ============ ============ ============ Earnings per share of common stock Net income Basic............................... $ 0.26 $ 0.21 $ 1.12 $ 0.88 Diluted............................. $ 0.26 $ 0.20 $ 1.10 $ 0.88 Weighted average number of common shares and potential common shares outstanding Basic............................. 18,873,751 18,812,448 18,848,532 18,756,450 Diluted........................... 19,129,889 18,958,468 19,093,777 18,814,686
-6- MONARCH CASINO & RESORT, INC. CONDENSED CONSOLIDATED BALANCE SHEETS
December 31, December 31, 2005 2004 ------------- ------------- (Unaudited) ASSETS Current assets Cash............................................ $ 12,886,494 $ 11,814,778 Receivables, net................................ 3,559,602 2,959,894 Federal income tax refund receivable............ 286,760 493,797 Inventories..................................... 1,456,453 1,452,696 Prepaid expenses................................ 2,401,619 2,346,242 Deferred income taxes........................... 1,326,224 1,115,719 ------------- ------------- Total current assets......................... 21,917,152 20,183,126 ------------- ------------- Property and equipment Land............................................ 10,339,530 10,339,530 Land improvements............................... 3,166,107 3,226,913 Buildings....................................... 78,955,538 78,955,538 Building improvements........................... 10,398,814 7,524,680 Furniture and equipment......................... 67,393,755 65,146,594 Leasehold improvement........................... 1,346,965 1,346,965 ------------- ------------- 171,600,709 166,540,220 Less accumulated depreciation and amortization.. (76,117,346) (68,791,045) ------------- ------------- Net property and equipment................... 95,483,363 97,749,175 ------------- ------------- Other assets, net................................. 269,524 406,620 ------------- ------------- Total assets................................. $ 117,670,039 $ 118,338,921 ============= ============= LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Current maturities of long-term debt............ $ - $ - Accounts payable................................ 7,335,630 5,747,775 Accrued expenses................................ 8,722,221 7,918,299 ------------- ------------- Total current liabilities.................... 16,057,851 13,666,074 Long-term debt, less current maturities........... 8,100,000 32,400,000 Deferred income taxes............................. 5,953,193 6,509,505 Commitments and contingencies..................... Stockholders' equity Preferred stock, $.01 par value, 10,000,000 shares authorized; none issued................. - - Common stock, $.005 par value, 30,000,000 shares authorized; 19,072,550 shares issued; 18,879,310 outstanding at 12/31/2005, 18,812,448 outstanding at 12/31/2004........... 95,363 95,363 Additional paid-in capital...................... 17,978,190 17,463,272 Treasury stock, 193,240 shares at 12/31/2005, 260,102 shares at 12/31/2004, at cost......................... (708,877) (954,152) Retained earnings............................... 70,194,319 49,158,859 ------------- ------------- Total stockholders' equity................... 87,558,995 65,763,342 ------------- ------------- Total liabilities and stockholders' equity... $ 117,670,039 $ 118,338,921 ============= =============
-7- MONARCH CASINO & RESORT, INC. RECONCILIATION OF NET INCOME TO EBITDA (1)
Three Months Ended Twelve Months Ended December 31, December 31, ----------------------- ------------------------ 2005 2004 2005 2004 (unaudited) (unaudited) (unaudited) (unaudited) ----------- ----------- ----------- ----------- Net income......................... $ 4,900,434 $ 3,863,744 $21,035,460 $16,526,440 Adjustments: Provision for income taxes....... 2,470,552 1,639,392 11,020,552 8,162,912 Stockholder guarantee fee expense - - - 136,164 Interest expense................. 122,411 323,004 1,013,377 1,448,125 Depreciation and amortization.... 2,127,861 1,940,674 8,379,033 9,627,870 ----------- ----------- ----------- ----------- EBITDA (1) $ 9,621,258 $ 7,766,814 $41,448,422 $35,901,511 =========== =========== =========== ===========
(1) "EBITDA" consists of net income plus provision for income taxes, interest and stockholder guarantee fee expense, 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. -8- -----END PRIVACY-ENHANCED MESSAGE-----