Monarch Casino & Resort (MCRI) Q2 2024 earnings summary

Executive summary

• Net income for Q2 2024 was $22.7 million, up 1.2% year-over-year; diluted EPS rose 4.4% to $1.19.

• Net revenues for Q2 2024 increased 3.6% to $128.1 million compared to Q2 2023.

• Declared a $0.30 per share cash dividend for September 2024 and repurchased 452,464 shares for $30.5 million in Q2.

• Six-month net income reached $41.0 million, a 2.2% increase year-over-year; diluted EPS up 3.9% to $2.12.

• Both Atlantis (Reno, NV) and Monarch Black Hawk (CO) properties contributed to revenue growth.

Financial highlights

• Casino revenue grew 3.1% in Q2 2024 and 3.4% for the six months, driven by Monarch Black Hawk.

• Food and beverage revenue rose 1.0% in Q2 and 1.9% for the six months; hotel revenue increased 9.0% in Q2 and 8.8% for the six months.

• Adjusted EBITDA margin improved to 34.3% in Q2 2024, up from 34.1% in Q2 2023.

• SG&A expense increased to $26.2 million in Q2, representing 20.4% of net revenue.

• Operating income for Q2 2024 was $29.5 million, nearly flat year-over-year; six-month operating income was $53.3 million.

Outlook and guidance

• Management expects continued benefit from property upgrades and market share gains, but notes ongoing labor cost pressures and competitive promotional environment.

• Plans to complete redesign and upgrade of all 817 Atlantis hotel rooms and suites by end of Q2 2025.

• Anticipated operating cash flows are expected to sustain operations, capital expenditures, and dividend distributions for the next twelve months.

• Intends to continue investing in properties, paying dividends, and repurchasing stock, while evaluating potential M&A opportunities.