Monarch Resort & Casino continued its recent hot streak by posting its second best-ever quarter on Tuesday and solidifying its standing as an upstart regional gaming player.
The Reno-based company rode the economic strength of northern Nevada and Colorado – its primary feeder markets – to 15 percent growth in adjusted EBITDA and 7 percent growth in net revenues for the quarter.
EBITDA checked in at $15.8 million alongside revenues of $58.2 million – beating Wall Street estimates by $1.09 million. Net income was $7.2 million – a 27 percent year-over-year increase – and earnings per share were $0.40, up 25 percent and $0.03 ahead of the consensus estimate.
“We achieved our best second quarter in the history of the Company and our eleventh consecutive quarter of year-over-year growth in net revenue, net income and adjusted EBITDA,” said John Farahi, Monarch’s co-chairman and chief executive officer.
Farahi attributed the successful quarter to strong operating environments and heightened focus on operating efficiencies and margins. Casino revenues across both properties were up 8 percent, and casino operating expenses as a percentage of casino revenue were down nearly 2 percent year-over-year to 41.5 percent.
“Our team’s ongoing commitment to deliver excellent guest experiences, coupled with the positive economic trends in Reno and Black Hawk, have led to consistent market share gains for both Atlantis Casino Resort and Monarch Casino Black Hawk,” he continued.
Monarch’s flagship Atlantis property in Reno is fresh off a completed renovation of its buffet. This, along with amenities and continued economic growth in northern Nevada, helps keep the company in a strong position on the regional playing field.
“The Reno market is well-positioned for near- and long-term growth, and we believe our south Reno location, along with our best-in-market casino, dining, spa and entertainment offerings, position Atlantis to continue to grow its share of a strengthening market,” Farahi said.
Monarch Casino Black Hawk, located 40 miles west of Denver, posted gains despite disruption from the construction of a new hotel tower. This was due, in part, to new parking and transportation offerings.
Monarch shares closed at $30.26 on Tuesday.
