Profits at Monarch Casinos & Resorts leapt 19.1 percent in the second quarter, reaching $27 million. The news was disclosed by the company after the market closed on July 16.
Monarch’s $136.9 million in net revenue, represented a 6.8 percent increase. Cash flow was also up, gaining 16.8 percent to reach $51.3 million.
“Monarch delivered record second-quarter financial results,” said CEO John Farahi. “At Atlantis during the quarter, we completed the multi-year $100 million redesign and upgrade of our hotel rooms. Our new luxury rooms and suites are providing guests with an elevated and unmatched regional hospitality experience, resulting in market-share gains.”
Two casinos constitute the Monarch portfolio: Atlantis in Reno and Monarch Black Hawk in Colorado.
“At Monarch Black Hawk, we continue to increase market share, especially among mid- to upper-tier guests from the Denver and Boulder metro areas,” Farahi said. He also touted a recent award from Wine Spectator magazine for the Bistro Mariposa & Monarch Chophouse in Black Hawk.
Casino winnings drove the revenue improvement, up 12.1 percent, while food and beverage rose 1.1 percent. Those more than offset a 3.1 percent decline in hotel revenue. Management attributed the dip to less convention business in the second quarter.
Corporate expenses were slightly up, but casino operations were down substantially “due to improved labor management and operational efficiencies.” F&B costs were also down, but hotel operations were up as a percentage of revenue, due to less business.
A capex expenditure of $12.4 million was funded entirely from cash flow, used to redesign and upgrade hotel rooms in Reno, in addition to miscellaneous upkeep expenses in Black Hawk. Also financed from cash flow were $19.8 million worth of stock repurchases. Monarch bought back 240,395 MCRI shares.
Monarch ended the quarter with $71.6 million in cash on hand and no debt. Shares of the company spiked from $85.86 to $102 per share in after-hours trading.
