Monarch Casino & Resort Inc (MCRI, Financial) released its 8-K filing on July 25, 2024, reporting record financial results for the second quarter ended June 30, 2024. The company, which owns and operates the Atlantis Casino Resort Spa in Reno, Nevada, and the Monarch Black Hawk Casino in Black Hawk, Colorado, continues to demonstrate robust performance in the gaming, dining, and hospitality sectors.
Performance Overview
Monarch Casino & Resort Inc (MCRI, Financial) reported net revenue of $128.1 million for Q2 2024, a 3.6% increase from $123.7 million in the same period last year. This figure surpasses the analyst estimate of $126.31 million. The company's net income rose by 1.2% to $22.7 million, while diluted earnings per share (EPS) increased by 4.4% to $1.19, exceeding the analyst estimate of $1.11.
Key Financial Achievements
Monarch Casino & Resort Inc (MCRI, Financial) achieved record adjusted EBITDA of $43.9 million, a 4.3% increase from the previous year's $42.1 million. The adjusted EBITDA margin improved to 34.3% from 34.1% in the prior year, reflecting the company's focus on operational efficiency.
John Farahi, Co-Chairman and Chief Executive Officer of Monarch, commented: “In the 2024 second quarter, net revenue and adjusted EBITDA grew to all-time second quarter records of $128.1 million and $43.9 million, respectively. Our continued focus on operational efficiency resulted in an improvement to the adjusted EBITDA margin to 34.3% from 34.1% in the same period of the prior year.”
Income Statement Highlights
| Metric | Q2 2024 | Q2 2023 | Change |
|---|---|---|---|
| Net Revenue | $128.1 million | $123.7 million | 3.6% |
| Net Income | $22.7 million | $22.4 million | 1.2% |
| Adjusted EBITDA | $43.9 million | $42.1 million | 4.3% |
| Diluted EPS | $1.19 | $1.14 | 4.4% |
Balance Sheet and Cash Flow
As of June 30, 2024, Monarch Casino & Resort Inc (MCRI, Financial) reported cash and cash equivalents of $33.5 million and an outstanding principal balance of $23.0 million under its credit facility. The company funded capital expenditures of $12.8 million from operating cash flows, cash on hand, and borrowings against its credit facility. These expenditures included the completion of the redesign and upgrade of 125 guest rooms at Atlantis.
Dividend and Share Repurchase
The company declared a cash dividend of $0.30 per share, payable on September 15, 2024, to stockholders of record on September 1, 2024. Additionally, Monarch Casino & Resort Inc (MCRI, Financial) repurchased 452,464 shares of its common stock for an aggregate amount of $30.5 million during the second quarter.
Analysis and Outlook
Monarch Casino & Resort Inc (MCRI, Financial)'s strong financial performance in Q2 2024 highlights its resilience and operational efficiency in a competitive market. The company's ability to generate record revenue and adjusted EBITDA, coupled with strategic capital investments and shareholder returns, positions it favorably for sustained growth in the Travel & Leisure industry.
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Explore the complete 8-K earnings release (here) from Monarch Casino & Resort Inc for further details.
