Monarch Casino & Resort Reports 2023 Q4 Results

The Nasdaq-listed company that owns and operates the Monarch Casino Resort Spa in Black Hawk, Colorado, and the Atlantis Casino Resort Spa in Reno, Nevada through its subsidiaries, Monarch Casino & Resort, Inc., has announced its operating results for the fourth quarter which ended December 31, 2023. 

The company has reported a 6.3% boost in revenue compared to Q4 2022, a profit drop of 18.9% compared to the same period, a 3.4% growth in its adjusted EBITDA, and a share dividend value of $0.30 in spite of the challenges hindering its growth.

Some Q4 2023 Results Mark “Fourth Quarter Records”

The company’s chief executive officer and co-chairman, John Farahi, explained the $128.2 million net revenue and the $43 million adjusted EBITDA represented “fourth quarter records, as were 2023 full year net revenue and adjusted EBITDA of $501.5 million and $170.8 million.”

Casino revenue went up 8.3%, similar to food and beverage revenue which increased by 4.7%. There was a slight decline recorded in hotel revenue, reflecting the growing competition pressure in Reno.

Selling, general, and administrative Q4 2023 expenses reached $28.7 million compared to $24.7 million in Q4 2022 as a result of the higher expenses triggered by repair and maintenance, labor, and advertising. 

As a percentage of casino revenue increased, casino operating expenses went up and reached 36.2% in Q4 2023 compared to 35.6% in Q4 2022. 

This was triggered by an increase in expenses related to slot participation, labor, and promotional allowances. 

As of December 31, 2023, Monarch had cash and cash equivalents of $43.4 million. Its outstanding principal balance was $5.5 million under its credit facility. 

The company made $2.5 million in principal payments on its credit facility in Q4 2023, managing to pay down the remaining principal being left with zero outstanding long-term debt.

Earnings per share dropped in Q4 2023 and FY 2023. Basic and diluted figures showed cuts ranging between 6% and 19.7%.

“Favorably Positioned to Continue Investing”

Farahi called their balance sheet “strong.” Combined with a lack of debt, the CEO explained the company was “favorably positioned to continue investing in our properties and paying cash dividends, and to consider share repurchases” under their current share repurchase authorization.

One of the company’s main points of focus is to grow through acquisition. However, “doing the right transaction is far more important in the long run than simply doing a transaction,” added Farahi.

The company also announced a cash dividend of $0.30 per share of its outstanding common stock payable on March 15, 2024. Stockholders of record will be paid on March 1, 2024.