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Mar 31, 2020
Monarch Q1 2020 Earnings Report
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.
Key Takeaways
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.
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.
Positive Outlook
- 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.
Challenges Ahead
- 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.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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