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): July 26, 2004
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
----------------------------------------------------
(Registrant's telephone number, including area code)
NOT APPLICABLE
----------------------------------------------------
(Former name or former address, if changed since last report)
ITEM 12. Results of Operations and Financial Condition
On July 26, 2004, Monarch Casino & Resort, Inc. (the "Company") issued a
press release reporting the Company's financial results for the second quarter
ended June 30, 2004. A copy of the press release is attached hereto as
Exhibit 99.1 and incorporated herein by reference.
Also attached hereto and incorporated by reference is Exhibit 99.2, a
correction of the press release attached as Exhibit 99.1. The number of
shares outstanding and treasury stock on the Company?s Balance Sheet were
updated to reflect such number of shares at June 30, 2004 and December 31,
2003 instead of March 31, 2003 and December 31, 2002, respectively, as was
erroneously reported in Exhibit 99.1. The actual press release reported such
balances correctly.
ITEM 7. Financial Statements and Exhibits
(c) EXHIBITS
99.1 Text of press release dated July 26, 2004.
99.2 Corrected text of press release dated July 26, 2004.
-2-
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.
Date: August 16, 2004 By: /s/ Ben Farahi
-------------------------
Name: Ben Farahi
Title: Chief Financial Officer,
Treasurer and Secretary
-3-
Exhibit 99.1
PRESS RELEASE
MONARCH CASINO & RESORT, INC. ANNOUNCES ALL-TIME RECORDS
FOR SECOND QUARTER ENDED JUNE 30, 2004
- EPS BEATS 2003 RECORD SECOND QUARTER BY $0.21 -
RENO, NV?July 26, 2004? Monarch Casino & Resort, Inc. (Nasdaq: MCRI) (the
"Company") continued its formidable run of positive growth today when it
announced an all-time Company record for the quarter ended June 30, 2004. The
Company?s net income, earnings per share, EBITDA (1), casino revenue, hotel
revenue, and net revenue during the 2004 second quarter shattered all such
previous quarterly results.
The Company generated net income of $4,352,013, or $0.46 per diluted share, in
the second quarter ended June 30, 2004, an 86.7% improvement over net income
of $2,331,109, or $0.25 per diluted share, in the second quarter of 2003.
EBITDA (1) for the second quarter was $9,528,821, or 37.5% better than the
$6,927,868 EBITDA (1) from the second quarter last year.
Second quarter 2004 casino revenue of $20,944,838 beat last year?s second
quarter record of $18,614,452 by 12.5%. The improvement in casino revenue was
attributable to overall increases in the volume of play at the Company?s
Atlantis Casino Resort in Reno, combined with slightly higher hold percentages
in all casino areas. Hotel revenue was $6,434,299 in the second quarter ended
June 30, 2004, a 16.8% improvement over last year?s $5,507,037 second quarter
hotel revenue. This improvement was mainly due to an increase in the average
daily room rate and was supported by an increase in the occupancy at the
hotel. Second quarter food and beverage revenue grew 8.1% to $9,440,893 from
$8,736,201 achieved in last year?s second quarter.
The significant increases in casino, hotel and food and beverage revenues
contributed to an 11.6% increase in gross revenues during the second quarter,
which, combined with an increase in promotional allowances of only 5.9%, led
to a 12.5% improvement in net revenue during the 2004 second quarter over the
2003 second quarter. Operating expenses in the quarter ended June 30, 2004,
increased only 3.9% as compared to the quarter ended June 30, 2003, resulting
in a 63.7% increase in income from operations. Interest expense decreased by
14.3% over last year?s second quarter as a direct result of lower outstanding
indebtedness, and, as of February 20, 2004, Monarch ceased incurring any
stockholder guarantee fees, as its new credit facility does not require the
personal guarantees of the Company?s principal stockholders.
John Farahi, Monarch?s Chief Executive Officer and Co-Chairman explained:
?Our all-time record numbers during this second quarter clearly reflect on
our property as one of the premier casino resorts in northern Nevada. Our
entire team has worked very hard to deliver a superior product in a tight
market and all team members are to be congratulated. We have welcomed and
accommodated a growing clientele to the Atlantis while successfully managing
our expenses. I am especially proud of the flow through resulting in improved
margins in almost every department. The resulting improvement to cash flow
has been partially re-invested into the property by way of capital
improvements in order to continuously offer a competitive product. We have
also taken advantage of this increased cash flow to aggressively pay down our
debt.? During the three months ended June 30, 2004, the Company reduced
outstanding debt by approximately $6.6 million.
-4-
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. 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 offers almost 1,000 guest rooms in three contiguous
high-rise hotel towers and a motor lodge. The tropically-themed Atlantis
features approximately 51,000 square feet of high-energy casino space with 37
table games and approximately 1,450 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 and (ii) the financial benefits that may result from
future operations. 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
is 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 including artist renditions and photographs, visit
Monarch's web site at monarchcasino.com.
(1) "EBITDA" consists of net income plus provision for income taxes, other
expenses (income), and 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.
-5-
MONARCH CASINO & RESORT, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
Three Months Ended Six Months Ended
June 30, June 30,
-------------------------- --------------------------
2004 2003 2004 2003
------------ ------------ ------------ ------------
Revenues
Casino............................. $ 20,944,838 $ 18,614,452 $ 40,847,689 $ 36,354,157
Food and beverage.................. 9,440,893 8,736,201 18,266,716 16,947,609
Hotel.............................. 6,434,299 5,507,037 11,952,604 10,223,215
Other.............................. 945,812 989,068 1,808,842 1,871,813
------------ ------------ ------------ ------------
Gross revenues.................. 37,765,842 33,846,758 72,875,851 65,396,794
Less promotional allowances........ (5,051,841) (4,771,688) (9,675,872) (9,156,796)
------------ ------------ ------------ ------------
Net revenues.................... 32,714,001 29,075,070 63,199,979 56,239,998
------------ ------------ ------------ ------------
Operating expenses
Casino............................. 7,666,678 7,358,723 15,107,349 14,484,826
Food and beverage.................. 4,817,753 4,475,173 9,209,475 8,598,911
Hotel.............................. 1,988,888 1,738,320 4,056,875 3,384,299
Other.............................. 376,191 308,676 694,654 613,242
Selling, general and
administrative.................... 8,335,670 8,266,310 16,855,076 16,115,494
Depreciation and amortization...... 2,636,131 2,716,420 5,639,490 5,316,829
------------ ------------ ------------ ------------
Total operating expenses........ 25,821,311 24,863,622 51,562,919 48,513,601
------------ ------------ ------------ ------------
Income from operations.......... 6,892,690 4,211,448 11,637,060 7,726,397
------------ ------------ ------------ ------------
Other expenses
Interest expense................... (361,677) (422,203) (791,638) (872,083)
Stockholder guarantee fee expense.. - (260,936) (136,164) (542,278)
------------ ------------ ------------ ------------
Total other expenses............ (361,677) (683,139) (927,802) (1,414,361)
------------ ------------ ------------ ------------
Income before income taxes...... 6,531,013 3,528,309 10,709,258 6,312,036
Provision for income taxes........... 2,179,000 1,197,200 3,599,000 2,143,000
------------ ------------ ------------ ------------
Net income...................... $ 4,352,013 $ 2,331,109 $ 7,110,258 $ 4,169,036
============ ============ ============ ============
Earnings per share of common stock
Net income
Basic............................ $ 0.46 $ 0.25 $ 0.76 $ 0.44
Diluted.......................... $ 0.46 $ 0.25 $ 0.76 $ 0.44
Weighted average number of common
shares and potential common
shares outstanding
Basic.......................... 9,372,603 9,331,877 9,358,670 9,399,716
Diluted........................ 9,399,580 9,361,060 9,390,727 9,431,942
-6-
MONARCH CASINO & RESORT, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
June 30, December 31,
2004 2003
------------- -------------
(Unaudited)
ASSETS
Current assets
Cash............................................ $ 10,530,729 $ 9,711,310
Receivables, net................................ 3,058,752 2,818,727
Federal income tax refund receivable............ - 756,698
Inventories..................................... 1,168,302 1,245,967
Prepaid expenses................................ 2,271,708 2,234,773
Deferred income taxes........................... 542,457 542,457
------------- -------------
Total current assets......................... 17,571,948 17,309,932
------------- -------------
Property and equipment
Land............................................ 10,339,530 10,339,530
Land improvements............................... 3,226,913 3,226,913
Buildings....................................... 78,955,538 78,955,538
Building improvements........................... 7,060,680 6,304,642
Furniture and equipment......................... 64,116,953 63,230,354
------------- -------------
163,699,614 162,056,977
Less accumulated depreciation and amortization.. (65,527,631) (63,618,047)
------------- -------------
Net property and equipment................... 98,171,983 98,438,930
------------- -------------
Other assets, net................................. 452,456 128,263
------------- -------------
Total assets................................. $ 116,196,387 $ 115,877,125
============= =============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Current maturities of long-term debt............ $ 1,585,304 $ 6,059,591
Accounts payable................................ 7,212,867 8,407,887
Accrued expenses................................ 6,531,616 6,707,257
Federal income taxes payable.................... 1,643,461 -
------------- -------------
Total current liabilities.................... 16,973,248 21,174,735
Long-term debt, less current maturities........... 38,275,000 41,125,000
Deferred income taxes............................. 4,933,427 4,854,587
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;
9,329,830 outstanding at 03/31/2003,
9,474,830 outstanding at 12/31/2002............ 95,363 95,363
Additional paid-in capital...................... 17,345,057 17,432,635
Treasury stock,
206,445 shares at 03/31/2003, 61,445 shares
at 12/31/2002, at cost......................... (1,168,385) (1,437,614)
Retained earnings............................... 39,742,677 32,632,419
------------- -------------
Total stockholders' equity................... 56,014,712 48,722,803
------------- -------------
Total liabilities and stockholders' equity... $ 116,196,387 $ 115,877,125
============= =============
-7-
MONARCH CASINO & RESORT, INC.
RECONCILIATION OF NET INCOME TO EBITDA (1)
Three Months Ended Six Months Ended
June 30, June 30,
----------------------- ------------------------
2004 2003 2004 2003
(unaudited) (unaudited) (unaudited) (unaudited)
----------- ----------- ----------- -----------
Net income......................... $4,352,013 $2,331,109 $ 7,110,258 $4,169,036
Adjustments:
Provision for income taxes....... 2,179,000 1,197,200 3,599,000 2,143,000
Stockholder guarantee fee expense - 260,936 136,164 542,278
Interest expense................. 361,677 422,203 791,638 872,083
Depreciation and amortization.... 2,636,131 2,716,420 5,639,490 5,316,829
----------- ----------- ----------- -----------
EBITDA (1) $9,528,821 $6,927,868 $17,276,550 $13,043,226
=========== =========== =========== ===========
-8-
Exhibit 99.2
PRESS RELEASE
MONARCH CASINO & RESORT, INC. ANNOUNCES ALL-TIME RECORDS
FOR SECOND QUARTER ENDED JUNE 30, 2004
- EPS BEATS 2003 RECORD SECOND QUARTER BY $0.21 -
RENO, NV?July 26, 2004? Monarch Casino & Resort, Inc. (Nasdaq: MCRI) (the
"Company") continued its formidable run of positive growth today when it
announced an all-time Company record for the quarter ended June 30, 2004. The
Company?s net income, earnings per share, EBITDA (1), casino revenue, hotel
revenue, and net revenue during the 2004 second quarter shattered all such
previous quarterly results.
The Company generated net income of $4,352,013, or $0.46 per diluted share, in
the second quarter ended June 30, 2004, an 86.7% improvement over net income
of $2,331,109, or $0.25 per diluted share, in the second quarter of 2003.
EBITDA (1) for the second quarter was $9,528,821, or 37.5% better than the
$6,927,868 EBITDA (1) from the second quarter last year.
Second quarter 2004 casino revenue of $20,944,838 beat last year?s second
quarter record of $18,614,452 by 12.5%. The improvement in casino revenue was
attributable to overall increases in the volume of play at the Company?s
Atlantis Casino Resort in Reno, combined with slightly higher hold percentages
in all casino areas. Hotel revenue was $6,434,299 in the second quarter ended
June 30, 2004, a 16.8% improvement over last year?s $5,507,037 second quarter
hotel revenue. This improvement was mainly due to an increase in the average
daily room rate and was supported by an increase in the occupancy at the
hotel. Second quarter food and beverage revenue grew 8.1% to $9,440,893 from
$8,736,201 achieved in last year?s second quarter.
The significant increases in casino, hotel and food and beverage revenues
contributed to an 11.6% increase in gross revenues during the second quarter,
which, combined with an increase in promotional allowances of only 5.9%, led
to a 12.5% improvement in net revenue during the 2004 second quarter over the
2003 second quarter. Operating expenses in the quarter ended June 30, 2004,
increased only 3.9% as compared to the quarter ended June 30, 2003, resulting
in a 63.7% increase in income from operations. Interest expense decreased by
14.3% over last year?s second quarter as a direct result of lower outstanding
indebtedness, and, as of February 20, 2004, Monarch ceased incurring any
stockholder guarantee fees, as its new credit facility does not require the
personal guarantees of the Company?s principal stockholders.
John Farahi, Monarch?s Chief Executive Officer and Co-Chairman explained:
?Our all-time record numbers during this second quarter clearly reflect on
our property as one of the premier casino resorts in northern Nevada. Our
entire team has worked very hard to deliver a superior product in a tight
market and all team members are to be congratulated. We have welcomed and
accommodated a growing clientele to the Atlantis while successfully managing
our expenses. I am especially proud of the flow through resulting in improved
margins in almost every department. The resulting improvement to cash flow
has been partially re-invested into the property by way of capital
improvements in order to continuously offer a competitive product. We have
also taken advantage of this increased cash flow to aggressively pay down our
debt.? During the three months ended June 30, 2004, the Company reduced
outstanding debt by approximately $6.6 million.
-9-
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. 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 offers almost 1,000 guest rooms in three contiguous
high-rise hotel towers and a motor lodge. The tropically-themed Atlantis
features approximately 51,000 square feet of high-energy casino space with 37
table games and approximately 1,450 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 and (ii) the financial benefits that may result from
future operations. 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
is 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 including artist renditions and photographs, visit
Monarch's web site at monarchcasino.com.
(1) "EBITDA" consists of net income plus provision for income taxes, other
expenses (income), and 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.
-10-
MONARCH CASINO & RESORT, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
Three Months Ended Six Months Ended
June 30, June 30,
-------------------------- --------------------------
2004 2003 2004 2003
------------ ------------ ------------ ------------
Revenues
Casino............................. $ 20,944,838 $ 18,614,452 $ 40,847,689 $ 36,354,157
Food and beverage.................. 9,440,893 8,736,201 18,266,716 16,947,609
Hotel.............................. 6,434,299 5,507,037 11,952,604 10,223,215
Other.............................. 945,812 989,068 1,808,842 1,871,813
------------ ------------ ------------ ------------
Gross revenues.................. 37,765,842 33,846,758 72,875,851 65,396,794
Less promotional allowances........ (5,051,841) (4,771,688) (9,675,872) (9,156,796)
------------ ------------ ------------ ------------
Net revenues.................... 32,714,001 29,075,070 63,199,979 56,239,998
------------ ------------ ------------ ------------
Operating expenses
Casino............................. 7,666,678 7,358,723 15,107,349 14,484,826
Food and beverage.................. 4,817,753 4,475,173 9,209,475 8,598,911
Hotel.............................. 1,988,888 1,738,320 4,056,875 3,384,299
Other.............................. 376,191 308,676 694,654 613,242
Selling, general and
administrative.................... 8,335,670 8,266,310 16,855,076 16,115,494
Depreciation and amortization...... 2,636,131 2,716,420 5,639,490 5,316,829
------------ ------------ ------------ ------------
Total operating expenses........ 25,821,311 24,863,622 51,562,919 48,513,601
------------ ------------ ------------ ------------
Income from operations.......... 6,892,690 4,211,448 11,637,060 7,726,397
------------ ------------ ------------ ------------
Other expenses
Interest expense................... (361,677) (422,203) (791,638) (872,083)
Stockholder guarantee fee expense.. - (260,936) (136,164) (542,278)
------------ ------------ ------------ ------------
Total other expenses............ (361,677) (683,139) (927,802) (1,414,361)
------------ ------------ ------------ ------------
Income before income taxes...... 6,531,013 3,528,309 10,709,258 6,312,036
Provision for income taxes........... 2,179,000 1,197,200 3,599,000 2,143,000
------------ ------------ ------------ ------------
Net income...................... $ 4,352,013 $ 2,331,109 $ 7,110,258 $ 4,169,036
============ ============ ============ ============
Earnings per share of common stock
Net income
Basic............................ $ 0.46 $ 0.25 $ 0.76 $ 0.44
Diluted.......................... $ 0.46 $ 0.25 $ 0.76 $ 0.44
Weighted average number of common
shares and potential common
shares outstanding
Basic.......................... 9,372,603 9,331,877 9,358,670 9,399,716
Diluted........................ 9,399,580 9,361,060 9,390,727 9,431,942
-11-
MONARCH CASINO & RESORT, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
June 30, December 31,
2004 2003
------------- -------------
(Unaudited)
ASSETS
Current assets
Cash............................................ $ 10,530,729 $ 9,711,310
Receivables, net................................ 3,058,752 2,818,727
Federal income tax refund receivable............ - 756,698
Inventories..................................... 1,168,302 1,245,967
Prepaid expenses................................ 2,271,708 2,234,773
Deferred income taxes........................... 542,457 542,457
------------- -------------
Total current assets......................... 17,571,948 17,309,932
------------- -------------
Property and equipment
Land............................................ 10,339,530 10,339,530
Land improvements............................... 3,226,913 3,226,913
Buildings....................................... 78,955,538 78,955,538
Building improvements........................... 7,060,680 6,304,642
Furniture and equipment......................... 64,116,953 63,230,354
------------- -------------
163,699,614 162,056,977
Less accumulated depreciation and amortization.. (65,527,631) (63,618,047)
------------- -------------
Net property and equipment................... 98,171,983 98,438,930
------------- -------------
Other assets, net................................. 452,456 128,263
------------- -------------
Total assets................................. $ 116,196,387 $ 115,877,125
============= =============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Current maturities of long-term debt............ $ 1,585,304 $ 6,059,591
Accounts payable................................ 7,212,867 8,407,887
Accrued expenses................................ 6,531,616 6,707,257
Federal income taxes payable.................... 1,643,461 -
------------- -------------
Total current liabilities.................... 16,973,248 21,174,735
Long-term debt, less current maturities........... 38,275,000 41,125,000
Deferred income taxes............................. 4,933,427 4,854,587
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;
9,377,024 outstanding at 06/30/2004,
9,340,328 outstanding at 12/31/2003............ 95,363 95,363
Additional paid-in capital...................... 17,345,057 17,432,635
Treasury stock,
159,251 shares at 06/30/2004, 195,947 shares
at 12/31/2003, at cost......................... (1,168,385) (1,437,614)
Retained earnings............................... 39,742,677 32,632,419
------------- -------------
Total stockholders' equity................... 56,014,712 48,722,803
------------- -------------
Total liabilities and stockholders' equity... $ 116,196,387 $ 115,877,125
============= =============
-12-
MONARCH CASINO & RESORT, INC.
RECONCILIATION OF NET INCOME TO EBITDA (1)
Three Months Ended Six Months Ended
June 30, June 30,
----------------------- ------------------------
2004 2003 2004 2003
(unaudited) (unaudited) (unaudited) (unaudited)
----------- ----------- ----------- -----------
Net income......................... $4,352,013 $2,331,109 $ 7,110,258 $4,169,036
Adjustments:
Provision for income taxes....... 2,179,000 1,197,200 3,599,000 2,143,000
Stockholder guarantee fee expense - 260,936 136,164 542,278
Interest expense................. 361,677 422,203 791,638 872,083
Depreciation and amortization.... 2,636,131 2,716,420 5,639,490 5,316,829
----------- ----------- ----------- -----------
EBITDA (1) $9,528,821 $6,927,868 $17,276,550 $13,043,226
=========== =========== =========== ===========
-13-