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Sep 30, 2023
Monarch Q3 2023 Earnings Report
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.
Key Takeaways
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.
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.
Positive Outlook
- 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.
Challenges Ahead
- Third quarter results were negatively impacted by competitive pressure in Reno.
- Third quarter results were negatively impacted by the current macroeconomic environment.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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