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Jun 30, 2021

Monarch Q2 2021 Earnings Report

Reported record operating results, driven by market share gains and increased customer spend in both Black Hawk and Reno.

Key Takeaways

Monarch Casino & Resort reported record second-quarter results with net revenue of $97.7 million and Adjusted EBITDA of $35.2 million, driven by strong performance in both Black Hawk and Reno. The company saw increases in casino, food and beverage, and hotel revenues, and reduced debt by $25.0 million.

Net revenue and Adjusted EBITDA reached all-time highs for the second consecutive quarter.

Black Hawk operations continued to ramp up, benefiting from expanded offerings and the removal of Colorado betting limits.

Atlantis benefited from the strong Reno economy, with increased customer spend across all segments.

Debt was reduced by $25.0 million, strengthening the balance sheet.

Total Revenue
$97.7M
Previous year: $15.2M
+544.8%
EPS
$0.93
Previous year: -$0.24
-487.5%
Adjusted EBITDA
$35.2M
Previous year: $500K
+6940.0%
Gross Profit
$54.5M
Previous year: $8.38M
+550.8%
Cash and Equivalents
$28.3M
Previous year: $38.3M
-26.2%
Free Cash Flow
$27.6M
Previous year: -$9.88M
-379.2%
Total Assets
$667M
Previous year: $598M
+11.6%

Monarch

Monarch

Forward Guidance

Monarch is focused on reinvesting in its properties, exploring acquisition strategies, and leveraging its additional acreage in Reno. The company anticipates opening converted areas in Black Hawk by year-end, which will increase casino space by approximately 25% and restaurant seating by approximately 35%.

Positive Outlook

  • Continued market share gains in Black Hawk and Reno.
  • Strong demand across all segments of the business.
  • Reinvestment in properties to enhance guest experience.
  • Exploring potential acquisition strategies.
  • Considering ways to leverage additional acreage in Reno.

Challenges Ahead

  • Labor market constraints at both properties.