Monarch Casino & Resort, Inc.
Condensed Consolidated Statements of Income
(UNAUDITED)
Three Months Ended
March 31,
--------------------------
2009 2008
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Revenues
Casino $ 22,804,499 $ 23,755,950
Food and beverage 9,593,068 9,761,220
Hotel 5,379,742 5,830,695
Other 1,133,450 1,232,069
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Gross revenues 38,910,759 40,579,934
Less promotional allowances (6,331,575) (6,306,541)
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Net revenues 32,579,184 34,273,393
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Operating expenses
Casino 8,906,892 8,746,500
Food and beverage 4,635,397 4,689,365
Hotel 2,005,920 2,105,373
Other 296,771 346,654
Selling, general and administrative 11,619,722 13,104,100
Depreciation and amortization 3,180,955 2,006,557
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Total operating expenses 30,645,657 30,998,549
------------ ------------
Income from operations 1,933,527 3,274,844
------------ ------------
Other (expense) income
Interest income 35,418 251,344
Interest expense (550,210) (4,157)
------------ ------------
Total other (expense) income (514,792) 247,187
------------ ------------
Income before income taxes 1,418,735 3,522,031
Provision for income taxes (496,575) (1,220,000)
------------ ------------
Net income $ 922,160 $ 2,302,031
============ ============
Earnings per share of common stock
Net income
Basic $ 0.06 $ 0.13
Diluted $ 0.06 $ 0.12
Weighted average number of common
shares and potential common
shares outstanding
Basic 16,122,048 18,415,836
Diluted 16,148,037 18,545,964
Monarch Casino & Resort, Inc.
Condensed Consolidated Balance Sheets
March 31, December 31,
------------- -------------
2009 2008
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ASSETS (UNAUDITED)
Current assets
Cash and cash equivalents $ 11,428,243 $ 11,756,900
Receivables, net 3,488,296 3,344,441
Inventories 1,418,374 1,564,347
Prepaid expenses 2,969,024 2,851,872
Deferred income taxes 429,300 429,300
------------- -------------
Total current assets 19,733,237 19,946,860
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Property and equipment
Land 12,162,522 12,162,522
Land improvements 3,511,484 3,511,484
Buildings 133,674,917 133,332,232
Building improvements 10,435,062 10,435,062
Furniture and equipment 102,377,493 96,767,076
Leasehold improvements 1,346,965 1,346,965
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263,508,443 257,555,341
Less accumulated depreciation and
amortization (104,218,052) (101,825,190)
------------- -------------
159,290,391 155,730,151
Construction in progress - 4,026,536
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Net property and equipment 159,290,391 159,756,687
Other assets, net 3,498,240 2,797,949
------------- -------------
Total assets $ 182,521,868 $ 182,501,496
============= =============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Borrowings under credit facility $ 900,000 $ 2,500,000
Accounts payable 6,317,908 10,213,418
Construction payable 1,468,452 5,404,372
Accrued expenses 9,292,872 8,940,110
Federal income taxes payable 390,311 233,736
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Total current liabilities 18,369,543 27,291,636
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Long-term debt, less current maturities 55,000,000 47,500,000
Deferred income taxes 2,115,371 2,115,371
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Total Liabilities 75,484,914 76,907,007
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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;
16,122,048 outstanding at 3/31/09
16,122,048 outstanding at 12/31/08 190,963 190,963
Additional paid-in capital 28,571,314 28,051,009
Treasury stock, 2,974,252 shares at 3/31/09
2,974,252 shares at 12/31/08, at cost (48,943,359) (48,943,359)
Retained earnings 127,218,036 126,295,876
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Total stockholders' equity 107,036,954 105,594,489
------------- -------------
Total liabilities and stockholders'
equity $ 182,521,868 $ 182,501,496
============= =============
Monarch Casino & Resort, Inc.
Reconciliation of Net Income to EBITDA (1)
Unaudited
Three Months Ended
March 31,
------------------------
2009 2008
----------- -----------
Net Income $ 922,160 $ 2,302,031
Adjustments
Provision for income taxes 496,575 1,220,000
Interest expense 550,210 4,157
Depreciation & amortization 3,180,955 2,006,557
Interest income (35,418) (251,344)
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EBITDA (1) $ 5,114,482 $ 5,281,401
=========== ===========
(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 (775) 825-4700 John Farahi CEO (775) 825-4700