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): February 15, 2005
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 2.02 Results of Operations and Financial Condition
On February 15, 2005, Monarch Casino & Resort, Inc. (the "Company")
issued a press release reporting the Company's financial results for the
fourth quarter and fiscal year ended December 31, 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 December 31, 2004, instead of
September 30, 2004, as was erroneously reported in Exhibit 99.1. The actual
press release reported such balances correctly.
ITEM 9.01 Financial Statements and Exhibits
(c) EXHIBITS
99.1 Text of press release dated February 15, 2005.
99.2 Corrected text of press release dated February 15, 2005.
-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: February 22, 2005 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 RECORD BREAKING FOURTH
QUARTER AND YEAR END 2004 RESULTS
- 2004 EPS BEATS RECORD 2003 BY APPROXIMATELY 72% -
RENO, NV-February 15, 2005- Monarch Casino & Resort, Inc. (Nasdaq:
MCRI) (the "Company") capped an all-time record year as a result of its record
fourth quarter ended December 31, 2004.
The Company generated a fourth quarter record $3.9 million net income, or
$0.41 per diluted share, on net revenues of $31.2 million for the three months
ended December 31, 2004. The fourth quarter net income was a 118.2%
improvement over the Company's previous fourth quarter record of $1.8 million,
or $0.19 per diluted share, set in 2003. Net revenues also beat the previous
record 2003 fourth quarter net revenues by 10.4%. The record quarterly net
revenues were driven by significant increases in the Company's casino
(+10.3%), food and beverage (+11.6%) and hotel (+12.4%) revenue centers.
Total operating costs and expenses increased only 1.6% over the 2003 fourth
quarter, leading to strong margin improvements across the board, and a 76.7%
increase in income from operations in the fourth quarter of 2004 compared to
the same period in 2003. The improved margins also led to record fourth
quarter EBITDA (1) for the Company, which reached $7.8 million, a 26.0%
improvement over its previous fourth quarter best EBITDA (1) of $6.2 million
achieved in 2003.
For the fiscal year ended December 31, 2004, the Company also set new
all-time records in net income, earnings per share, casino revenue, hotel
revenue, net revenues and EBITDA (1). Net income for the year was $16.5
million, or $1.76 per diluted share, on net revenues of $129.5 million. The
record net income represented a 72.0% increase over the Company's previous
record net income of $9.6 million, or $1.02 per diluted share, on net revenues
of $116.0 million, set in 2003. Significant increases in the Company's
primary revenue centers of casino (+12.2%), food and beverage (+8.2%) and
hotel (+14.5%) led to the record net revenues. Furthermore, promotional
allowances increased only 7.9%, leading to a 67.1% flow through of incremental
net revenue to income from operations. Total operating costs and expenses
increased only 4.5% in 2004 compared to 2003. The combination of increased
revenues and cost containment resulted in a significant EBITDA (1) margin
improvement of 24.2% in 2003 to 27.7% in 2004. EBITDA (1) for the twelve
months ended December 31, 2004, reached a record $35.9 million, a 28.2%
improvement over $28.0 million EBITDA (1) for the same period a year earlier.
The Company also benefited from a 40% reduction in interest expense over the
previous year due to principal paydowns on bank debt balance and lower
applicable interest rates.
Commenting on the Company's success, CEO and Co-Chairman John Farahi said
"We continue to benefit from strong local population growth, especially in
south Reno, a superb location, increased bookings at the Reno-Sparks
Convention Center next door to our Atlantis Casino Resort, and a dedicated and
experienced management team. We are committed and continue to aggresively
update and renovate our facilities, products and services in order to keep the
Atlantis fresh and appealing to our guests. Our increasing revenues, combined
-4-
with our cost controls has led to exceptional flow through to our free cash
flow, which we are using to rapidly pay down debt." At December 31, 2004,
the Company's outstanding bank debt was $32.4 million, a 31% reduction
compared to $47.0 million at December 31, 2003.
The Company also announced today that its 2005 Annual Meeting of
Stockholders will be held on Thursday, May 26, 2005 at 10:00am local time, at
the Company's Atlantis Casino Resort, 3800 South Virginia Street, Reno,
Nevada. The record date for stockholders entitled to vote at the Annual
Meeting is Friday, April 8, 2005.
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 Twelve Months Ended
December 31, December 31,
-------------------------- --------------------------
2004 2003 2004 2003
------------ ------------ ------------ ------------
Revenues
Casino............................. $ 20,641,420 $ 18,708,204 $ 84,131,876 $ 74,955,744
Food and beverage.................. 9,377,418 8,404,880 37,333,977 34,498,613
Hotel.............................. 5,344,046 4,753,786 24,318,082 21,236,808
Other.............................. 1,017,746 964,448 3,892,669 4,005,426
------------ ------------ ------------ ------------
Gross revenues.................. 36,380,630 32,831,318 149,676,604 134,696,591
Less promotional allowances........ (5,184,472) (4,567,496) (20,219,714) (18,746,078)
------------ ------------ ------------ ------------
Net revenues.................... 31,196,158 28,263,822 129,456,890 115,950,513
------------ ------------ ------------ ------------
Operating expenses
Casino............................. 7,535,435 7,285,897 30,513,391 29,321,060
Food and beverage.................. 4,737,160 4,571,552 18,859,211 17,701,143
Hotel.............................. 1,852,275 1,760,480 7,858,616 6,991,581
Other.............................. 296,654 299,503 1,344,163 1,270,624
Selling, general and
administrative.................... 9,007,820 8,180,403 34,979,998 32,659,258
Depreciation and amortization...... 1,940,674 2,869,044 9,627,870 10,797,494
------------ ------------ ------------ ------------
Total operating expenses........ 25,370,018 24,966,879 103,183,249 98,741,160
------------ ------------ ------------ ------------
Income from operations.......... 5,826,140 3,296,943 26,273,641 17,209,353
------------ ------------ ------------ ------------
Other expenses
Interest expense................... (323,004) (363,695) (1,448,125) (1,607,840)
Stockholder guarantee fee expense.. - (237,397) (136,164) (1,030,010)
------------ ------------ ------------ ------------
Total other expenses............ (323,004) (601,092) (1,584,289) (2,637,850)
------------ ------------ ------------ ------------
Income before income taxes...... 5,503,136 2,695,851 24,689,352 14,571,503
Provision for income taxes........... 1,639,392 924,778 8,162,912 4,965,580
------------ ------------ ------------ ------------
Net income...................... $ 3,863,744 $ 1,771,073 $ 16,526,440 $ 9,605,923
============ ============ ============ ============
Earnings per share of common stock
Net income
Basic............................ $ 0.41 $ 0.19 $ 1.76 $ 1.02
Diluted.......................... $ 0.41 $ 0.19 $ 1.76 $ 1.02
Weighted average number of common
shares and potential common
shares outstanding
Basic.......................... 9,406,224 9,340,328 9,378,225 9,379,446
Diluted........................ 9,479,234 9,374,028 9,407,343 9,412,459
-6-
MONARCH CASINO & RESORT, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
December 31, December 31,
2004 2003
------------- -------------
(Unaudited)
ASSETS
Current assets
Cash............................................ $ 11,814,778 $ 9,711,310
Receivables, net................................ 2,959,894 2,818,727
Federal income tax refund receivable............ 493,797 756,698
Inventories..................................... 1,452,696 1,245,967
Prepaid expenses................................ 2,346,242 2,234,773
Deferred income taxes........................... 1,115,719 542,457
------------- -------------
Total current assets......................... 20,183,126 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........................... 7,524,680 6,304,642
Furniture and equipment......................... 65,146,594 63,230,354
Leasehold improvement........................... 1,346,965 -
------------- -------------
166,540,220 162,056,977
Less accumulated depreciation and amortization.. (68,791,045) (63,618,047)
------------- -------------
Net property and equipment................... 97,749,175 98,438,930
------------- -------------
Other assets, net................................. 406,620 128,263
------------- -------------
Total assets................................. $ 118,338,921 $ 115,877,125
============= =============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Current maturities of long-term debt............ $ - $ 6,059,591
Accounts payable................................ 5,747,775 8,407,887
Accrued expenses................................ 7,918,299 6,707,257
------------- -------------
Total current liabilities.................... 13,666,074 21,174,735
Long-term debt, less current maturities........... 32,400,000 41,125,000
Deferred income taxes............................. 6,509,505 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;
9,405,224 outstanding at 12/31/2004,
9,340,328 outstanding at 12/31/2003............ 95,363 95,363
Additional paid-in capital...................... 17,463,272 17,432,635
Treasury stock,
131,051 shares at 12/31/2004, 195,947 shares
at 12/31/2003, at cost......................... (954,152) (1,437,614)
Retained earnings............................... 49,158,859 32,632,419
------------- -------------
Total stockholders' equity................... 65,763,342 48,722,803
------------- -------------
Total liabilities and stockholders' equity... $ 118,338,921 $ 115,877,125
============= =============
-7-
MONARCH CASINO & RESORT, INC.
RECONCILIATION OF NET INCOME TO EBITDA (1)
Three Months Ended Twelve Months Ended
December 31, December 31,
----------------------- ------------------------
2004 2003 2004 2003
(unaudited) (unaudited) (unaudited) (unaudited)
----------- ----------- ----------- -----------
Net income......................... $ 3,863,744 $1,771,073 $16,526,440 $9,605,923
Adjustments:
Provision for income taxes....... 1,639,392 924,778 8,162,912 4,965,580
Stockholder guarantee fee expense - 237,397 136,164 1,030,010
Interest expense................. 323,004 363,695 1,448,125 1,607,840
Depreciation and amortization.... 1,940,674 2,869,044 9,627,870 10,797,494
----------- ----------- ----------- -----------
EBITDA (1) $ 7,766,814 $6,165,987 $35,901,511 $28,006,847
=========== =========== =========== ===========
(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.
-8-
Exhibit 99.2
PRESS RELEASE
MONARCH CASINO & RESORT, INC. ANNOUNCES RECORD BREAKING FOURTH
QUARTER AND YEAR END 2004 RESULTS
- 2004 EPS BEATS RECORD 2003 BY APPROXIMATELY 72% -
RENO, NV-February 15, 2005- Monarch Casino & Resort, Inc. (Nasdaq:
MCRI) (the "Company") capped an all-time record year as a result of its record
fourth quarter ended December 31, 2004.
The Company generated a fourth quarter record $3.9 million net income, or
$0.41 per diluted share, on net revenues of $31.2 million for the three months
ended December 31, 2004. The fourth quarter net income was a 118.2%
improvement over the Company's previous fourth quarter record of $1.8 million,
or $0.19 per diluted share, set in 2003. Net revenues also beat the previous
record 2003 fourth quarter net revenues by 10.4%. The record quarterly net
revenues were driven by significant increases in the Company's casino
(+10.3%), food and beverage (+11.6%) and hotel (+12.4%) revenue centers.
Total operating costs and expenses increased only 1.6% over the 2003 fourth
quarter, leading to strong margin improvements across the board, and a 76.7%
increase in income from operations in the fourth quarter of 2004 compared to
the same period in 2003. The improved margins also led to record fourth
quarter EBITDA (1) for the Company, which reached $7.8 million, a 26.0%
improvement over its previous fourth quarter best EBITDA (1) of $6.2 million
achieved in 2003.
For the fiscal year ended December 31, 2004, the Company also set new
all-time records in net income, earnings per share, casino revenue, hotel
revenue, net revenues and EBITDA (1). Net income for the year was $16.5
million, or $1.76 per diluted share, on net revenues of $129.5 million. The
record net income represented a 72.0% increase over the Company's previous
record net income of $9.6 million, or $1.02 per diluted share, on net revenues
of $116.0 million, set in 2003. Significant increases in the Company's
primary revenue centers of casino (+12.2%), food and beverage (+8.2%) and
hotel (+14.5%) led to the record net revenues. Furthermore, promotional
allowances increased only 7.9%, leading to a 67.1% flow through of incremental
net revenue to income from operations. Total operating costs and expenses
increased only 4.5% in 2004 compared to 2003. The combination of increased
revenues and cost containment resulted in a significant EBITDA (1) margin
improvement of 24.2% in 2003 to 27.7% in 2004. EBITDA (1) for the twelve
months ended December 31, 2004, reached a record $35.9 million, a 28.2%
improvement over $28.0 million EBITDA (1) for the same period a year earlier.
The Company also benefited from a 40% reduction in interest expense over the
previous year due to principal paydowns on bank debt balance and lower
applicable interest rates.
Commenting on the Company's success, CEO and Co-Chairman John Farahi said
"We continue to benefit from strong local population growth, especially in
south Reno, a superb location, increased bookings at the Reno-Sparks
Convention Center next door to our Atlantis Casino Resort, and a dedicated and
experienced management team. We are committed and continue to aggresively
update and renovate our facilities, products and services in order to keep the
Atlantis fresh and appealing to our guests. Our increasing revenues, combined
-9-
with our cost controls has led to exceptional flow through to our free cash
flow, which we are using to rapidly pay down debt." At December 31, 2004,
the Company's outstanding bank debt was $32.4 million, a 31% reduction
compared to $47.0 million at December 31, 2003.
The Company also announced today that its 2005 Annual Meeting of
Stockholders will be held on Thursday, May 26, 2005 at 10:00am local time, at
the Company's Atlantis Casino Resort, 3800 South Virginia Street, Reno,
Nevada. The record date for stockholders entitled to vote at the Annual
Meeting is Friday, April 8, 2005.
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 Twelve Months Ended
December 31, December 31,
-------------------------- --------------------------
2004 2003 2004 2003
------------ ------------ ------------ ------------
Revenues
Casino............................. $ 20,641,420 $ 18,708,204 $ 84,131,876 $ 74,955,744
Food and beverage.................. 9,377,418 8,404,880 37,333,977 34,498,613
Hotel.............................. 5,344,046 4,753,786 24,318,082 21,236,808
Other.............................. 1,017,746 964,448 3,892,669 4,005,426
------------ ------------ ------------ ------------
Gross revenues.................. 36,380,630 32,831,318 149,676,604 134,696,591
Less promotional allowances........ (5,184,472) (4,567,496) (20,219,714) (18,746,078)
------------ ------------ ------------ ------------
Net revenues.................... 31,196,158 28,263,822 129,456,890 115,950,513
------------ ------------ ------------ ------------
Operating expenses
Casino............................. 7,535,435 7,285,897 30,513,391 29,321,060
Food and beverage.................. 4,737,160 4,571,552 18,859,211 17,701,143
Hotel.............................. 1,852,275 1,760,480 7,858,616 6,991,581
Other.............................. 296,654 299,503 1,344,163 1,270,624
Selling, general and
administrative.................... 9,007,820 8,180,403 34,979,998 32,659,258
Depreciation and amortization...... 1,940,674 2,869,044 9,627,870 10,797,494
------------ ------------ ------------ ------------
Total operating expenses........ 25,370,018 24,966,879 103,183,249 98,741,160
------------ ------------ ------------ ------------
Income from operations.......... 5,826,140 3,296,943 26,273,641 17,209,353
------------ ------------ ------------ ------------
Other expenses
Interest expense................... (323,004) (363,695) (1,448,125) (1,607,840)
Stockholder guarantee fee expense.. - (237,397) (136,164) (1,030,010)
------------ ------------ ------------ ------------
Total other expenses............ (323,004) (601,092) (1,584,289) (2,637,850)
------------ ------------ ------------ ------------
Income before income taxes...... 5,503,136 2,695,851 24,689,352 14,571,503
Provision for income taxes........... 1,639,392 924,778 8,162,912 4,965,580
------------ ------------ ------------ ------------
Net income...................... $ 3,863,744 $ 1,771,073 $ 16,526,440 $ 9,605,923
============ ============ ============ ============
Earnings per share of common stock
Net income
Basic............................ $ 0.41 $ 0.19 $ 1.76 $ 1.02
Diluted.......................... $ 0.41 $ 0.19 $ 1.76 $ 1.02
Weighted average number of common
shares and potential common
shares outstanding
Basic.......................... 9,406,224 9,340,328 9,378,225 9,379,446
Diluted........................ 9,479,234 9,374,028 9,407,343 9,412,459
-11-
MONARCH CASINO & RESORT, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
December 31, December 31,
2004 2003
------------- -------------
(Unaudited)
ASSETS
Current assets
Cash............................................ $ 11,814,778 $ 9,711,310
Receivables, net................................ 2,959,894 2,818,727
Federal income tax refund receivable............ 493,797 756,698
Inventories..................................... 1,452,696 1,245,967
Prepaid expenses................................ 2,346,242 2,234,773
Deferred income taxes........................... 1,115,719 542,457
------------- -------------
Total current assets......................... 20,183,126 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........................... 7,524,680 6,304,642
Furniture and equipment......................... 65,146,594 63,230,354
Leasehold improvement........................... 1,346,965 -
------------- -------------
166,540,220 162,056,977
Less accumulated depreciation and amortization.. (68,791,045) (63,618,047)
------------- -------------
Net property and equipment................... 97,749,175 98,438,930
------------- -------------
Other assets, net................................. 406,620 128,263
------------- -------------
Total assets................................. $ 118,338,921 $ 115,877,125
============= =============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Current maturities of long-term debt............ $ - $ 6,059,591
Accounts payable................................ 5,747,775 8,407,887
Accrued expenses................................ 7,918,299 6,707,257
------------- -------------
Total current liabilities.................... 13,666,074 21,174,735
Long-term debt, less current maturities........... 32,400,000 41,125,000
Deferred income taxes............................. 6,509,505 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;
9,406,224 outstanding at 12/31/2004,
9,340,328 outstanding at 12/31/2003............ 95,363 95,363
Additional paid-in capital...................... 17,463,272 17,432,635
Treasury stock,
130,051 shares at 12/31/2004, 195,947 shares
at 12/31/2003, at cost......................... (954,152) (1,437,614)
Retained earnings............................... 49,158,859 32,632,419
------------- -------------
Total stockholders' equity................... 65,763,342 48,722,803
------------- -------------
Total liabilities and stockholders' equity... $ 118,338,921 $ 115,877,125
============= =============
-12-
MONARCH CASINO & RESORT, INC.
RECONCILIATION OF NET INCOME TO EBITDA (1)
Three Months Ended Twelve Months Ended
December 31, December 31,
----------------------- ------------------------
2004 2003 2004 2003
(unaudited) (unaudited) (unaudited) (unaudited)
----------- ----------- ----------- -----------
Net income......................... $ 3,863,744 $1,771,073 $16,526,440 $9,605,923
Adjustments:
Provision for income taxes....... 1,639,392 924,778 8,162,912 4,965,580
Stockholder guarantee fee expense - 237,397 136,164 1,030,010
Interest expense................. 323,004 363,695 1,448,125 1,607,840
Depreciation and amortization.... 1,940,674 2,869,044 9,627,870 10,797,494
----------- ----------- ----------- -----------
EBITDA (1) $ 7,766,814 $6,165,987 $35,901,511 $28,006,847
=========== =========== =========== ===========
(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.
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