Monarch Casino & Resort (MCRI) Q3 2024 earnings summary

Executive summary

• Net income for Q3 2024 was $27.6 million, up 14.2% year-over-year; diluted EPS rose 19.5% to $1.47 per share.

• Net revenues for Q3 2024 increased 3.7% to $137.9 million compared to Q3 2023, a record for the company.

• Declared a cash dividend of $0.30 per share, payable December 15, 2024, as part of a $1.20 annual dividend.

• Continued market share growth at Monarch Black Hawk and ongoing facility upgrades at Atlantis in Reno.

• For the nine months ended September 30, 2024, net income was $68.6 million, up 6.7% year-over-year; diluted EPS rose 10.1% to $3.60.

Financial highlights

• Casino revenue for Q3 2024 grew 3.4% year-over-year, driven by increased market share at Monarch Black Hawk.

• Hotel revenue for Q3 2024 increased 5.0% year-over-year, with ADR up to $180.70 and occupancy at 89.7%.

• Food and beverage revenue for Q3 2024 decreased 0.2% year-over-year; per cover revenue rose 2.2%.

• Adjusted EBITDA reached $50.6 million, up 2.9% year-over-year, with an EBITDA margin of 36.7%.

• Operating expenses totaled $102.6 million, up slightly from $101.1 million in Q3 2023.

Outlook and guidance

• Management expects continued strength at Atlantis due to employment growth in Reno, but notes labor cost pressures and increased competition.

• Monarch Black Hawk is positioned to benefit from expanded operations, elimination of betting limits, and growth in Colorado's gaming market.

• Atlantis room upgrades to be completed by Q2 2025; focus remains on cost reduction and margin improvement.

• Ongoing evaluation of M&A opportunities to drive long-term shareholder value.

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