Operator News
US – Monarch delivers record quarter
By Phil - 24 October 2022
Monarch Casino & Resort enjoyed its best ever quarter in its third quarter, generating net revenue of $133.7m, an increase of 19.8 per cent from $111.6m in the prior-year quarter.
Casino, food and beverage, and hotel revenues increased 20.3 per cent, 20.6 per cent and 19.9 per cent year over year, respectively. The increase in revenues was driven by the ongoing growth in business at Monarch Black Hawk, as well as continued strength at Atlantis.
John Farahi, Co-Chairman and Chief Executive Officer of Monarch, commented: “Our strong operating momentum continued in the 2022 third quarter as we generated all-time quarterly record financial results, including a 28 per cent increase in Adjusted EBITDA over the previous record, set in the same quarter a year ago. The ramp-up of our expanded and enhanced Black Hawk property continues at a robust pace, resulting in market share gains that were complemented by solid performance at our Atlantis in Reno. Over the last year, with the completion of Monarch Black Hawk expansion, we have continued to fine-tune all aspects of our business and are operating more efficiently and effectively than ever before.
“Net revenue and Adjusted EBITDA of $133.7m and $51.7m, respectively, were all-time quarterly records. We also delivered a record Adjusted EBITDA margin of 38.7 per cent. We are not at full employment at either property and continue to face a challenging labor market. Even so, our team strives to deliver the full array of amenities and industry-leading services that our guests have come to expect from Monarch.
“In Black Hawk, we continue to gain a greater share of the market’s most valuable customers. Given the property’s upscale design and amenities, we believe we have a long runway ahead to fully unlock its potential. Another driver of our success in Black Hawk is our state-of-the-art sports betting offering, which has attracted new customers who are staying and playing with us. We will continue to aggressively court this new cohort to further capture their entertainment spend going forward.
“Atlantis continues to deliver strong results. Our primary focus remains the ongoing enhancement of the property. Guests’ response to the recently upgraded and redesigned rooms in the first hotel tower has been very positive. In addition, we just completed and opened new upscale retail space. We are planning a renovation of the second Atlantis hotel tower early in 2023, as well as several other capital projects, which will ensure that the Atlantis remains Reno’s preferred destination for casino resort gaming entertainment.
“Using cash flow from operations, we’ve now paid down a substantial portion of our debt. Given our continued cash flow growth and low leverage, we are evaluating a full range of capital allocation options, including potential share repurchases under our existing 2.9 million share repurchase authorization and potential dividend. We continue to look for opportunities to bring our success in Reno and Black Hawk to a new market and will move aggressively when the right opportunity presents itself. We continue to work on enhancing the value of our business and rewarding our loyal stockholders.”
