UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
----------------------
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): April 30, 2003
MONARCH CASINO & RESORT, INC.
(Exact name of registrant as specified in its charter)
NEVADA 0-22088 88-0300760
(State or other jurisdiction (Commission (I.R.S. Employer
of incorporation) File Number) Identification No.)
1175 W. Moana Lane, Suite 200
Reno, NEVADA 89509
(Address of Principal Executive Offices) (Zip Code)
(775)825-3355
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(Registrant's telephone number, including area code)
NOT APPLICABLE
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(Former name or former address, if changed since last report)
ITEM 7. Financial Statements and Exhibits
(c) Exhibits
99.02 Text of press release dated April 30, 2003.
ITEM 12. Disclosure of Results of Operations and Financial Condition
On April 30, 2003, Monarch Casino & Resort, Inc. (the "Company") issued a
press release announcing the Company's earnings for the first quarter ended
March 31, 2003. The earnings press release is attached as Exhibit 99.02 to
this Form 8-K.
The earnings release contains non-GAAP financial measures. For purposes
of regulation G, a non-GAAP financial measure is a numerical measure of a
registrant's historical or future financial performance, financial position or
cash flows that excludes amounts, or is subject to adjustments that have the
effect of excluding amounts, that are included in the most directly comparable
measure calculated and presented in accordance with GAAP in the Statement of
Income, Balance Sheet or Statement of Cash Flows (or equivalent statements) of
the issuer, or includes amounts, or is subject to adjustments that have the
effect of including amounts, that are excluded from the most directly
comparable measure so calculated and presented. In this regard, GAAP refers to
generally accepted accounting principles in the United States. Pursuant to the
requirements of Regulation G, the Company has provided reconciliations within
the earnings release of the non-GAAP financial measures to the most directly
comparable financial measures.
EBITDA is presented in the earnings release because management believes
that it is of interest to its investors and is frequently used by analysts and
others in the evaluation of companies in our industry.
"EBITDA" consists of income from operations plus depreciation and
amortization. EBITDA should not be construed as an alternative to operating
income (as determined in accordance with generally accepted accounting
principles) as an indicator of the Company's operating performance, or as an
alternative to cash flows from operating activities (as determined in
accordance with generally accepted accounting principles) as a measure of
liquidity. This item enables comparison of the Company's performance with the
performance of other companies that report EBITDA, although some companies do
not calculate this measure in the same manner and therefore, the measure as
presented, may not be comparable to similarly titled measures presented by
other companies.
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934,
as amended, the Registrant has duly caused this report to be signed on its
behalf by the undersigned hereunto duly authorized.
MONARCH CASINO & RESORT, INC.
(Registrant)
Date: April 30, 2003 By: /s/ Ben Farahi
-------------------------------
Name: Ben Farahi
Title: Chief Financial Officer,
Treasurer and Secretary
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Exhibit 99.02
PRESS RELEASE
MONARCH CASINO & RESORT, INC. ANNOUNCES
FIRST QUARTER RESULTS
RENO, NV - April 30, 2003 - Monarch Casino & Resort, Inc. (Nasdaq: MCRI)
(the "Company"), owner and operator of Reno's Atlantis Casino Resort, today
announced first quarter results for 2003. For the first quarter ended March 31,
2003 net income was $1,837,927, a 16.0% increase over net income of $1,585,084
during the same period last year. Net income per share (diluted) for the first
quarter ended March 31, 2003 was $0.19, compared to last year's first quarter
net income per share (diluted) of $0.17. Net revenue for the first quarter
ended March 31, 2003 was $27,167,928, a 5.3% increase over the same period last
year. EBITDA(1) for the first quarter ended March 31, 2003 was $6,115,358, an
increase of 1.0% over the EBITDA of $6,053,300 for the first quarter ended
March 31, 2002.
The Company's results were driven by increases in all four revenue
centers: Casino revenue ($17.7 million) grew 7.0%, hotel revenue ($4.7 million)
grew 7.7%, food and beverage revenue ($8.2 million) grew 2.6%, and other
revenue ($886 thousand) grew 6.6% over the same period in 2002.
John Farahi, Monarch's Co-Chairman of the Board and Chief Executive
Officer, said, "We are very pleased with our improvement over last year's first
quarter numbers. These results speak for the quality of the Atlantis Casino
Resort and our team members in a highly competitive environment. Additionally,
we are encouraged that gaming revenues in the Reno market have shown modest
growth through the first two months of 2003."
Mr. Farahi's comments reflect the Reno market's slight resurgence through
the first two months of 2003. According to figures published by the Nevada
Gaming Control Board, casino revenues in the Reno market for January and
February 2003 are up 5.8% over the same period last year. Figures for March
have not yet been released.
Monarch Casino & Resort, Inc. also announced today that the Company's 2003
Annual Meeting of Stockholders will be held on Thursday, June 12, 2003, at
10:00 a.m. local time, at the Company's Atlantis Casino Resort, 3800 South
Virginia Street, Reno, Nevada 89502. The record date for stockholders entitled
to vote at the Annual Meeting is Friday, May 2, 2003.
During the first quarter, the Company bought back 180,000 shares of its
common stock pursuant to its stock repurchase program announced on March 10,
2003. The Company also paid down approximately a net amount of $4.3 million of
its debt outstanding during the first quarter of 2003.
A conference call discussing the Company's first quarter results will be
hosted by John Farahi and Ben Farahi, Co-chairman and Chief Financial Officer,
at 4:30 P.M. Eastern Time today. To listen in on the call, please dial (800)
341-2312 and enter passcode 9075, approximately five minutes prior to the start
of the call to register. A replay of the call will be available until May 7,
and it can be accessed by dialing (800) 756-3819, passcode 009075. A script of
the conference call will also be available on the Company's website,
www.monarchcasino.com, until May 7, 2003.
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Monarch Casino & Resort, Inc., through its wholly-owned subsidiary, owns
and operates the tropically-themed Atlantis Casino Resort in Reno, Nevada. The
Atlantis is the closest hotel-casino to and is directly across the street from
the Reno-Sparks Convention Center, which completed a $105-million expansion and
renovation in August 2002. The Atlantis is recognizable due to its Sky
Terrace, a unique structure rising approximately 55 feet from street level and
spanning 160 feet across the street with no intermediate support pillars. The
Sky Terrace connects the Atlantis to a 16-acre parcel of land owned by the
Company, that is compliant with all casino zoning requirements and is suitable
and available for future expansion of the Atlantis facilities and is currently
being used by the Company as additional paved parking for the Atlantis. The
existing Atlantis site, which offers almost 1,000 guest rooms in three
contiguous high-rise hotel towers and a motor lodge, has been given city
approval for an additional 500 hotel rooms with expansion of the casino and
other amenities. The tropically-themed Atlantis features approximately 51,000
square feet of high-energy casino space with 37 table games and approximately
1,500 slot and video poker machines, a sports book, Keno and a poker room, and
offers a variety of dining choices in the form of nine high-quality food
outlets.
This press release contains forward-looking statements within the meaning
of Section 21E of the Securities Exchange Act of 1934 which are subject to
change, including, but not limited to, comments relating to (i) future
operating performance, (ii) market share of the Company operations, (iii) the
financial benefits that may result from future operations, (iv) the recent
opening and impact on operations of the expanded convention center and (v) the
improvement of the Reno gaming market. The actual results may differ
materially from those described in any forward-looking statements. Additional
information concerning potential factors that could affect the Company's
financial results are included in the Company's Securities and Exchange
Commission filings, which are available on the Company's web site.
Contacts: Ben Farahi at (775) 825-3355 or benfarahi@monarchcasino.com
Karl G. Brokmann at (775) 825-3355 or kbrokmann@monarchcasino.com
For additional information visit Monarch's web site at
www.monarchcasino.com.
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Monarch Casino & Resort, Inc.
Condensed Consolidated Statements of Income
Three Months Ended
March 31,
-------------------------
2003 2002
(Unaudited) (Unaudited)
Revenues
Casino................................ $ 17,739,705 $ 16,579,314
Food and beverage..................... 8,211,408 8,003,566
Hotel................................. 4,716,178 4,378,916
Other................................. 885,745 830,603
------------ ------------
Gross revenues..................... 31,553,036 29,792,399
Less promotional allowances........... (4,385,108) (3,996,198)
------------ ------------
Net revenues....................... 27,167,928 25,796,201
------------ ------------
Operating expenses
Casino................................ 7,126,103 6,537,794
Food and beverage..................... 4,123,738 4,249,507
Hotel................................. 1,645,979 1,517,613
Other................................. 304,566 321,832
Selling, general and administrative... 7,852,184 7,116,155
Depreciation and amortization......... 2,600,409 2,546,902
------------ ------------
Total operating expenses........... 23,652,979 22,289,803
------------ ------------
Income from operations............. 3,514,949 3,506,398
------------ ------------
Other expense
Interest expense, net................. (731,222) (1,117,990)
------------ ------------
Total other........................ (731,222) (1,117,990)
------------ ------------
Income (loss) before income taxes.. 2,783,727 2,388,408
Provision (benefit) for income taxes.... 945,800 803,324
------------ ------------
Net income (loss).................. $ 1,837,927 $ 1,585,084
============ ============
INCOME (LOSS) PER SHARE OF COMMON STOCK
Net income (loss)
Basic.............................. $ 0.19 $ 0.17
Diluted............................ $ 0.19 $ 0.17
Weighted average number of
common shares and potential
common shares outstanding
Basic.............................. 9,468,308 9,436,275
Diluted............................ 9,503,599 9,502,697
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Monarch Casino & Resort, Inc.
Condensed Consolidated Balance Sheets
----------------------------
March 31, December 31,
2003 2002
------------ ------------
ASSETS
Current assets
Cash........................................$ 7,515,340 $ 9,961,484
Receivables, net............................ 2,670,248 2,724,726
Inventories................................. 815,063 993,260
Prepaid expenses............................ 2,242,164 1,961,763
Prepaid federal income tax.................. - 176,321
Deferred income taxes....................... 492,457 492,457
------------ ------------
Total current assets..................... 13,735,272 16,310,011
------------ ------------
Property and equipment
Land........................................ 10,339,530 10,339,530
Land improvements........................... 3,226,913 3,191,371
Buildings................................... 78,955,538 78,955,538
Building improvements....................... 6,262,904 6,262,903
Furniture and equipment..................... 58,806,477 58,086,570
------------ ------------
157,591,362 156,835,912
Less accumulated
depreciation and amortization.............. (58,585,196) (55,985,653)
------------ ------------
99,006,166 100,850,259
------------ ------------
Net property and equipment............... 99,006,166 100,850,259
Other assets, net............................. 271,424 319,817
------------ ------------
$113,012,862 $117,480,087
============ ============
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MONARCH CASINO & RESORT, INC. AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
----------------------------
March 31, December 31,
2003 2002
------------ ------------
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Current maturities of long-term debt........ $ 9,955,343 $ 8,279,095
Accounts payable............................ 5,294,022 6,227,124
Accrued expenses............................ 5,672,936 6,146,440
Federal income taxes payable................. 184,936 -
------------ ------------
Total current liabilities................ 21,107,237 20,652,659
Long-term debt, less current maturities....... 46,000,000 52,000,000
Deferred income taxes......................... 5,002,257 4,526,744
Commitments and contingencies
Stockholders' equity
Preferred stock, $.01 par value, 10,000,000
shares authorized; none issued............. - -
Common stock, $.01 par value, 30,000,000
shares authorized; 9,536,275 issued;
9,436,275 outstanding...................... 95,363 95,363
Additional paid-in capital.................. 17,458,217 17,381,517
Treasury stock, at cost.................... (1,514,635) (202,692)
Retained earnings........................... 24,864,423 23,026,496
------------ ------------
Total stockholders' equity............... 40,903,368 40,300,684
------------ ------------
$113,012,862 $117,480,087
============ ============
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Monarch Casino & Resort, Inc.
Reconciliation of Income From Operations to EBITDA (1)
Three Months Ended
March 31,
----------------------
2003 2002
(unaudited) (unaudited)
----------- -----------
Income from Operations $3,514,949 $3,506,398
Adjustments:
Depreciation and Amortization 2,600,409 2,546,902
----------- -----------
EBITDA $6,115,358 $6,053,300
=========== ===========
(1) "EBITDA" consists of income from operations plus depreciation and
amortization. EBITDA should not be construed as an alternative to operating
income (as determined in accordance with generally accepted accounting
principles) as an indicator of the Company's operating performance, or as an
alternative to cash flows from operating activities (as determined in
accordance with generally accepted accounting principles) as a measure of
liquidity. This item enables comparison of the Company's performance with the
performance of other companies that report EBITDA, although some companies do
not calculate this measure in the same manner and therefore, the measure as
presented, may not be comparable to similarly titled measures presented by
other companies.
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