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US – Monarch almost doubles first quarter revenues

By - 25 April 2022

In the 2022 first quarter, Monarch generated net revenue of $108.3m, an increase of 44.5 per cent from $75m in the prior-year quarter.

Casino, food and beverage (F&B), and hotel revenues increased 33.9 per cent, 60.7 per cent and 75.9 per cent year over year, respectively. The increase in revenues was driven primarily by the ongoing ramp up of operations at the Company’s hotel and expanded casino at Monarch Black Hawk. In the first quarter of 2021, both Atlantis and Black Hawk revenues were adversely impacted by pandemic-related capacity and other regulatory limitations which remained in effect following the properties respective reopening.

John Farahi, Co-Chairman and Chief Executive Officer of Monarch, commented: “Fiscal year 2022 is off to a strong start as we benefited from the full scope of operations at our newly expanded Monarch Black Hawk and the continued growth of market share at both properties. Our first quarter results also benefited from continued healthy overall macroeconomic trends. The labor market pressure and rising inflation could impact further near-term margins. Our teams continue to manage expenses effectively as we re-invest in our properties and grow our business.

“Net revenue and Adjusted EBITDA of $108.3m and $34.3m, respectively, were both first quarter records, as was our Adjusted EBITDA margin of 31.7 per cent. We believe that our financial results demonstrate our operational excellence and confirm that our investment in Monarch Black Hawk is delivering exceptional returns.

“Our master plan expansion at Monarch Black Hawk was completed in the first quarter of 2022 with the opening of Bistro Mariposa, a dining venue offering elevated Southwest cuisine. Our market-leading resort continues to gain significant market share, particularly from the upper segment of the market. Following the elimination of betting limits in May 2021 and the additional table games variety, the property’s table games revenue continues to increase significantly. Our efforts to grow revenue and adjusted EBITDA at Monarch Black Hawk have only just begun and we are excited for the long-term growth opportunity of this property.

“In Reno, underlying market trends remain competitive, and we continue to invest in the property to ensure that our Atlantis resort remains at the pinnacle of Reno casino resort offerings. Atlantis’ first quarter financial results were impacted by construction work on the redesign and upgrade of approximately 20% of the room inventory at Atlantis. The project remains on schedule and is currently expected to be completed by the end of the second quarter of 2022.

“As we look to the balance of 2022, we intend to build on our strong operating performance in the first quarter, which traditionally is the slowest quarter of the year for us and for our markets. We continue to evaluate potential acquisitions where we can fully leverage our development and operating expertise to drive long-term value for our stockholders. Our future remains bright and we look forward to what promises to be an exciting 2022.”

Income from operations for the first quarter of 2022 increased 89.2% compared to the same period last year. Net income increased 122.2% and diluted EPS increased 119.0%. The Company generated first quarter 2022 consolidated Adjusted EBITDA of $34.3 million, an increase of $11.5 million, or 50.4%, over the same period a year ago. The increase in the Adjusted EBITDA represents an approximate 32% flow-through of net revenue.

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