NASDAQ$MCRI

Monarch Casino & Resort Inc · Q1 2020 earnings

Q1 2020 earnings · · Investor relations

Briefing

Monarch's financial performance was impacted by the COVID-19 pandemic, with strong results in the first two months offset by mandated shutdowns in March.

Monarch Casino & Resort reported a decrease in net revenue and net income for Q1 2020 due to the temporary closure of its properties in mid-March as a result of the COVID-19 pandemic. The company is focused on preserving liquidity and preparing for reopening.

  • Consolidated net revenue decreased by 13.2% compared to the prior year due to property closures in March.
  • Net income declined by 71.2% as a result of the operational shutdown.
  • Adjusted EBITDA decreased by 40.7% year-over-year.
  • The company received limited covenant waivers under its amended credit facility and is in discussions for additional support.

Headline financials

Total Revenue

$51M

Previous: $58.7M-13.2%
EPS (adj)

$0.11

Previous: $0.38-71.1%
Capital Expenditures

-$10.8M

Previous: -$38.2M+71.6%
Free Cash Flow

-$8.82M

Previous: -$31.2M+71.7%
Net Income

$2.02M

Previous: $7.02M-71.2%
Operating Income

-$17.1M

Previous: -$8.17M-109.2%
Gross Profit

$2.11M

Previous: $8.72M-75.8%
Cash & Equivalents

$39.4M

Previous: $23.8M+65.3%
Total Assets

$594M

Previous: $497M+19.7%
Stock-Based Comp

$873K

Previous: $1.96M-55.5%

Revenue & EPS history

Monarch · Revenue · Quarterly

$51M

Q1 2020-13.2%vs Q1 2019
Beat estimate in 6 of 16 quarters(38%)
ActualEstimate

Forward guidance

Monarch is managing through the uncertainty caused by COVID-19 and positioning the business for reopening. The company believes its cash position and modest leverage provide financial flexibility.

Tailwinds

  • The company is working diligently to preserve liquidity.
  • They are investing in preventative maintenance at both properties.
  • Monarch has a solid cash position.
  • They have modest leverage.
  • The company is preparing its properties for re-opening and a return to normalized operations.

Headwinds

  • The states of Colorado and Nevada have not yet provided clear dates or guidelines for the reopening of casinos.
  • The COVID-19 outbreak has slowed some efforts on the Monarch Casino Resort Spa Black Hawk construction.
  • There is no definitive timeline for the property opening.
  • The company faces uncertainty and must properly position its business for when the country’s economy begins to re-open.
  • The pandemic has presented serious challenges and setbacks for the entire gaming and hospitality industry.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2020

Historical avgQ1 2020

+1.1%

Avg return

Earnings day

+1.8%

Avg return

5 days after

+5.7%

Avg return

30 days after

55%

36 / 65 earnings

Positive

+19.1%

Q3 2015

Best reaction

-34.0%

Q4 2019

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+15.8%+19.3%+18.3%
Q4 2025+2.3%+7.4%+5.6%
Q3 2025-4.2%-4.2%-0.6%
Q2 2025-1.3%-0.6%+2.3%
Q1 2025+2.4%+1.6%+7.7%
Q3 2024+6.3%+7.3%+14.5%
Q2 2024+9.4%+11.6%+6.1%
Q1 2024-5.5%-3.0%-4.4%
Q4 2023+0.6%-0.8%+3.3%
Q3 2023-7.4%-4.2%+2.8%
Q2 2023-5.1%-4.6%-10.5%
Q1 2023-3.5%-5.7%-10.5%
Q4 2022+0.1%-0.5%-8.4%
Q3 2022+15.5%+21.5%+33.8%
Q2 2022-1.0%+0.2%+7.8%
Q1 2022-17.4%-15.8%-27.2%
Q4 2021+10.3%+7.7%+16.3%
Q3 2021+9.7%+7.4%+6.1%
Q2 2021+6.8%+6.2%+9.4%
Q1 2021+9.8%+7.4%+4.3%
Q4 2020+6.4%+10.6%+4.0%
Q3 2020+5.0%+13.5%+36.8%
Q2 2020-0.3%-0.5%+24.0%
Q1 2020+3.4%+22.5%+47.0%
Q4 2019-34.0%-46.4%-10.8%
Q3 2019-0.4%-0.7%+5.2%
Q2 2019+4.0%+5.8%-3.2%
Q1 2019-5.9%-4.7%-4.0%
Q4 2018+2.6%+2.3%-1.4%
Q3 2018-4.9%-13.8%-14.0%
Q2 2018+1.0%+0.1%+1.3%
Q1 2018-0.9%-1.0%+4.6%
Q4 2017-4.7%-4.8%-4.6%
Q3 2017+5.4%+8.4%+12.8%
Q2 2017+14.4%+13.4%+14.9%
Q1 2017+1.4%+0.2%+2.8%
Q4 2016+5.7%+7.9%+19.2%
Q3 2016-0.2%-2.7%+7.5%
Q2 2016-0.8%+1.2%+2.9%
Q1 2016-2.0%
Q4 2015+8.4%
Q3 2015+19.1%
Q2 2015+1.9%
Q1 2015+4.8%
Q4 2014+3.8%
Q3 2014+8.4%
Q2 2014-5.6%
Q1 2014+2.4%
Q4 2013+1.9%
Q3 2013-12.8%
Q2 2013+6.5%
Q1 2013+10.8%
Q4 2012-4.1%
Q3 2012+3.9%
Q2 2012-0.8%
Q1 2011+1.0%
Q1 2012+2.7%
Q4 2009-4.9%
Q4 2011-4.9%
Q3 2011-5.5%
Q3 2010-5.5%
Q2 2011-3.6%
Q2 2010-3.6%
Q4 2010-3.6%
Q1 2010+10.4%

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