NASDAQ$MCRI

Monarch Casino & Resort Inc · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Monarch Casino & Resort reported strong third quarter results, with revenue and EBITDA growth in Black Hawk, but was negatively impacted by Reno competition and macroeconomic environment.

Monarch Casino & Resort's third quarter results showed net revenue of $133.0 million and Adjusted EBITDA of $49.2 million. The company faced competitive pressure in Reno and a softening economic environment, but remains focused on enhancing its properties and returning capital to stockholders.

  • Net revenue was $133.0 million, compared to $133.7 million in the prior-year quarter.
  • Adjusted EBITDA was $49.2 million, a decline of $2.5 million, or 4.8%, compared to the same period a year ago.
  • Casino and hotel revenues decreased 4.0% and 0.9% year over year, respectively, while food and beverage revenues increased 5.3%.
  • The company declared a cash dividend of $0.30 per share payable on December 15, 2023.

Headline financials

Total Revenue

$133M

Previous: $134M-0.6%
EPS (adj)

$1.23

Previous: $1.41-12.8%
Capital Expenditures

-$32.2M

Previous: -$31.4M-2.4%
Free Cash Flow

-$8M

Previous: -$3.93M-103.5%
Net Income

$24.2M

Previous: $27.5M-12.1%
Operating Income

$5.85M

Previous: $8.09M-27.7%
Gross Profit

$31.9M

Previous: $36.4M-12.3%
Cash & Equivalents

$33.9M

Previous: $33.1M+2.4%
Total Assets

$664M

Previous: $689M-3.5%
Stock-Based Comp

$2.15M

Previous: $1.26M+70.7%

Revenue & EPS history

Monarch · Revenue · Quarterly

$133M

Q3 2023-0.6%vs Q3 2022
Beat estimate in 9 of 15 quarters(60%)
ActualEstimate

Forward guidance

Monarch is focused on expanding market share in Black Hawk, enhancing the Atlantis property, and returning capital to stockholders while evaluating potential acquisition opportunities.

Tailwinds

  • Monarch is working to further expand market share among mid-to-upper tier players at Monarch Black Hawk.
  • Monarch remains confident that its market-leading casino resort amenities position Monarch Black Hawk for further growth and market share gains.
  • Monarch's primary focus remains the ongoing enhancement of the Atlantis property.
  • Monarch expects to begin a redesign and upgrade of the third Atlantis hotel tower in early 2024.
  • Monarch continues to evaluate potential acquisition opportunities where it can employ its development and operating expertise in a financially prudent manner.

Headwinds

  • Third quarter results were negatively impacted by competitive pressure in Reno.
  • Third quarter results were negatively impacted by the current macroeconomic environment.
  • Atlantis third quarter results were impacted by an irrational promotional environment driven by competitors.
  • The trial against PCL Construction Services, Inc. is ongoing with additional trial days set for late November.
  • Increased competitive pressures in Reno as well as a softening in the overall economic environment.

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 Q3 2023

Historical avgQ3 2023

+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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