Loading...
•
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.
Monarch
Monarch
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.
- The pandemic has presented serious challenges and setbacks for the entire gaming and hospitality industry.