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Dec 31, 2019
Monarch Q4 2019 Earnings Report
Reported record net revenue and net income.
Key Takeaways
Monarch Casino & Resort reported a 3.8% increase in net revenue to $62.1 million and a net income of $6.2 million for the fourth quarter of 2019. Adjusted EBITDA increased by 5.3% year-over-year. The company is progressing with the Black Hawk expansion and anticipates a soft opening in the second quarter of 2020.
Net revenue increased by 3.8% compared to the prior year.
Adjusted EBITDA increased by 5.3% year-over-year.
Net income decreased by 14.6% due to pre-opening expenses and professional service fees.
Monarch is set to debut in-person and mobile sports betting in Colorado on May 1, 2020.
Forward Guidance
Monarch expects to welcome guests to the new Monarch Casino Resort Spa Black Hawk and believes the expanded property will be the premier casino resort destination in Colorado. Gross leverage is expected to peak at approximately 3.5x, with rapid deleveraging anticipated once cash flow increases and spending on the project decreases.
Positive Outlook
- Expanded Monarch Casino Resort Spa Black Hawk is expected to be the premier casino resort destination in Colorado.
- Gross leverage expected to peak at approximately 3.5x.
- Plan to rapidly de-lever once cash flow increases and spending on the project decreases.
- Strong balance sheet.
- Healthy cash flow.
Challenges Ahead
- COVID-19 impacting results.
- Construction disruption in Black Hawk.
- Tight employment environment.
- Wage inflation.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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