Monarch Casino & Resort Reports All-Time Record Quarterly Financial Results

The 2025 Third Quarter Marks the Highest-Ever Quarterly Level of Revenue, Net Income and EBITDA in Company’s 32 Year History Declares Cash Dividend of $0.30 per Share Payable on December 15, 2025 RENO, Nev., Oct. 21, 2025 (GLOBE NEWSWIRE) -- Monarch Casino & Resort, Inc. (Nasdaq: MCRI) (“Monarch” or “the Company”) today reported operating results for the third quarter ended September 30, 2025, as summarized below: ($ in thousands, except per share data and percentages) Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 Increase 2025 2024 IncreaseNet revenue$142,814 $137,873 3.6% $405,122 $387,673 4.5% Net income 31,576 27,601 14.4% 78,448 68,558 14.4% Adjusted EBITDA(1)$54,848 $50,643 8.3% $147,268 $133,114 10.6% Basic EPS$1.73 $1.50 15.3% $4.27 $3.67 16.3%Diluted EPS$1.69 $1.47 15.0% $4.18 $3.60 16.1% (1) Definitions, disclosures and reconciliations of non-GAAP financial information are included later in the release. CEO CommentJohn Farahi, Co-Chairman and Chief Executive Officer of Monarch, commented: “In the third quarter of 2025, Monarch delivered all-time record quarterly financial results. Net revenue increased 3.6% year-over-year to $142.8 million, reflecting growth in casino, food and beverage, and hotel revenues. “On a year-over-year basis, we improved casino, food and beverage, and hotel expense margins reflecting our focus on marketing initiatives, streamlining processes, and utilizing technology. Adjusted EBITDA increased 8.3% year-over-year to an all-time quarterly record of $54.8 million. Adjusted EBITDA margin increased by approximately 170 basis point to 38.4% in the third quarter of 2025 from 36.7% in the third quarter of 2024. “At Atlantis in Reno, we remain committed to the ongoing enhancement of the property to ensure that we consistently deliver a fresh, high-quality product to our guests. We believe that our elevated product, combined with exceptional guest service, will continue to drive increased guest visitation and sustained revenue growth. “At Monarch Black Hawk, revenue growth during the third quarter was primarily driven by another period of market share gains. We believe, that the property’s position as the premier luxury casino resort in Colorado will continue to attract mid-to-upper-tier guests from the Denver and Boulder metro areas and support its future growth.” Summary of 2025 Third Quarter Operating ResultsIn the third quarter of 2025, the Company generated net revenue of $142.8 million compared to $137.9 million in the corresponding prior-year period. Casino revenue increased 5.0%, food and beverage (“F&B”) revenue increased 2.9% and hotel revenues increased 3.9%, all compared to the same prior-year period. Selling, general and administrative (“SG&A”) expense for the third quarter of 2025 was $27.5 million compared to $27.2 million in the corresponding prior-year period. As a percentage of net revenue, SG&A expense decreased to 19.3% from 19.7% in the corresponding prior-year period. Casino operating expense as a percentage of casino revenue decreased to 35.8% during the third quarter of 2025 from 36.3% in the corresponding prior-year period, primarily due to improved labor management and operational efficiencies. During the third quarter of 2025, F&B operating expense as a percentage of F&B revenue decreased to 69.9% from 72.8% in the corresponding prior-year period due to labor efficiency, as well as increases in F&B revenue per cover. Hotel operating expense as a percentage of hotel revenue declined to 31.4% in the third quarter of 2025 compared to 33.8% in the corresponding prior-year period primarily due to higher Average Daily Rate. Net income for the third quarter of 2025 increased 14.4%. Diluted EPS increased 15.0%, compared to the same period last year primarilly due to the increase in net income. In the third quarter of 2025, the Company generated all-time quarterly record consolidated Adjusted EBITDA of $54.8 million, which represents a $4.2 million, or 8.3% increase, compared to the same prior-year period. Credit Facility and LiquidityAs of September 30, 2025, the Company had cash and cash equivalents of $107.6 million and no borrowings against its credit facility. Capital expenditures of $5.4 million in the third quarter of 2025 were funded from operating cash flow and included expenditures related to the now completed redesign and upgrade of guest rooms at Atlantis, as well as ongoing maintenance capital expenditures at both of the Company’s properties. On September 15, 2025, the Company paid a cash dividend of $0.30 per share to stockholders of record as of September 1, 2025. The cash dividend was also funded from operating cash flow. In the third quarter of 2025, the Company purchased, on the open market, 111,169 shares of its common stock for an aggregate amount of $11.3 million under its Repurchase Plan. The purchases were funded from operating cash flow. As of September 30, 2025, the Company has authorization to purchase up to 1,598,476 additional shares under the existing Repurchase Plan authorization. Monarch believes its strong balance sheet and free cash flow favorably position the Company to continue investing in its properties and returning capital to stockholders through cash dividends and share repurchases. The Company continuously evaluates potential M&A transaction opportunities, which, if executed, could drive additional long-term value for stockholders. Quarterly Dividend DeclarationThe Company today announced a cash dividend of $0.30 per share of its outstanding common stock. The dividend is payable on December 15, 2025 to stockholders of record as of December 1, 2025. This cash dividend is part of the previously announced annual cash dividend of $1.20 per share payable in quarterly payments and subject to quarterly review and evaluation by the Company’s Board of Directors. Forward Looking StatementsThis press release contains forward-looking statements within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as "plan," "believe," "expect," "seem," "look," "look forward," "positioning," "future," "will," "confident" and similar references to future periods. Example of forward-looking statements include, among others, statements we make regarding: (i) the continuing strength of our balance sheet and our expected free cash flow; (ii) our expectations regarding continuing our dividend payments in the future; (iii) our expectations regarding the cash flow we expect to generate to fund our cash dividends to stockholders; and, (iv) our beliefs regarding the impact of our capital investment strategy and evaluation of potential strategic transactions on our long term success. Actual results and future events and conditions may differ materially from those described in any forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause actual results to differ materially from estimates or projections contained in the forward-looking statements include, without limitation: adverse impacts of outbreaks of contagious diseases on our business, financial condition and operating results;actions taken by government officials at the federal, state and/or local level with respect to the containment of disease outbreaks, including, without limitation, temporary or extended shutdowns, travel restrictions, social distancing and shelter-in-place orders;our ability to manage guest safety concerns in connection with an outbreak of contagious diseases;our ability to maintain compliance with the terms and conditions of our credit facilities and other material contracts in the event of any unexpected or unplanned events, such as temporary or extended shutdowns;access to available and reasonable financing on a timely basis;our ability to maintain strong working relationships with our regulators, employees, lenders, suppliers, insurance carriers, customers, and other stakeholders;impacts of any uninsured losses;changes in guest visitation or spending patterns due to economic conditions, health, international relations or other concerns;construction factors, including delays, disruptions, availability of labor and materials, increased costs of labor and materials, contractor disagreements, zoning issues, environmental restrictions, soil and water conditions, weather and other hazards, site access matters, building permit issues and other regulatory approvals or issues;ongoing disagreements over costs of and responsibility for delays and other construction related matters with our general contractor at Monarch Casino Resort Spa Black Hawk, PCL Construction Services, Inc., including, as previously reported, the litigation against us by such contractor;the judgment entered in PCL’s favor and against Monarch in the above-mentioned litigation in the amount of $74,627,657 (the “Judgment”), in Case No. 2019cv33368 in the District Court for the State of Colorado, City and County of Denver (the “Court”), including the outcome of any post-judgement motions filed by PCL in the Court for further release;the outcome of our anticipated appeal of the Judgment and request for a new trial;our potential need to post other bonds or other forms of surety to support our legal remedies;risks related to development and construction activities (including disputes with and defaults by contractors and subcontractors; construction, equipment or staffing problems and delays; shortages of materials or skilled labor; environmental, health and safety issues; weather and other hazards, site access matters, and unanticipated cost increases);our ability to generate sufficient operating cash flow to help finance our expansion plans and any subsequent debt reduction;changes in laws mandating increases in minimum wages and employee benefits;changes in laws and regulations permitting expanded and other forms of gaming in our key markets;the effects of local and national economic, credit and capital market conditions on the economy in general and on the gaming industry and our business in particular, including predictions for a potential recession;the effects of labor shortages on our market position, growth and financial results;the potential of increases in state and federal taxation;potential of increased regulatory and other burdens;guest acceptance of our expanded facilities once completed and the resulting impact on our market position, growth and financial results;competition in our target market areas;the impact of the recently enacted tariffs on our business, including the potential increase in our operating costs;broad-based inflation, including wage inflation; and,the impact of the conflicts taking place in Ukraine, Israel, Iran and other areas of the Middle East. Additional information concerning potential factors that could adversely affect all forward-looking statements, including the Company's financial results, is included in our Securities and Exchange Commission filings, including our most recent annual report on Form 10-K and quarterly reports on Form 10-Q, which are available on our website at www.monarchcasino.com. About Monarch Casino & Resort, Inc.Monarch Casino & Resort, Inc., through its subsidiaries, owns and operates the Monarch Casino Resort Spa ("Monarch Black Hawk") in Black Hawk, Colorado, approximately 40 miles west of Denver and the Atlantis Casino Resort Spa ("Atlantis"), a hotel/casino facility in Reno, Nevada. For additional information on Monarch, visit the Company's website at www.monarchcasino.com. Atlantis features 817 guest rooms and suites, and approximately 61,000 square feet of casino space. The casino features approximately 1,200 slot and video poker machines; approximately 33 table games, including blackjack, craps, roulette, and others; a race and sports book; a 24-hour live keno lounge; and a poker room. It also includes eight food outlets; two gourmet coffee and pastry bars; retail store; a 30,000 square foot health spa and salon with an enclosed year-round pool; an 8,000 square-foot family entertainment center; and approximately 52,000 square feet of banquet, convention and meeting room space. Monarch Black Hawk features 516 guest rooms and suites, and approximately 60,000 square feet of casino space. The resort offers approximately 1,000 slot machines; 43 table games; a live poker room; keno; and a sports book. It also includes 10 bars and lounges, as well as four dining options: a twenty-four-hour full-service restaurant, a buffet-style restaurant, the Monarch Chophouse (a fine-dining steakhouse), and Bistro Mariposa (elevated Southwest cuisine), banquet and meeting room space, a retail store, a concierge lounge and an upscale spa and enclosed year-round pool located on the top floor of the tower. The resort is connected to a nine-story parking structure with approximately 1,350 parking spaces, and additional valet parking, with total property capacity of approximately 1,500 spaces. Contacts:John FarahiChief Executive Officer775/824-4401 or JFarahi@monarchcasino.com Joseph JaffoniJCIR212/835-8500 or mcri@jcir.com - financial tables follow - MONARCH CASINO & RESORT, INC. AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF INCOME(In thousands, except per share data, unaudited) Three months endedSeptember 30, Nine months endedSeptember 30, 2025 2024 2025 2024 Revenues Casino$80,130 $76,307 $232,614 $216,720 Food and beverage 33,842 32,888 96,055 94,893 Hotel 22,494 21,642 58,312 58,147 Other 6,348 7,036 18,141 17,913 Net revenues 142,814 137,873 405,122 387,673 Operating Expenses Casino 28,688 27,676 84,654 80,801 Food and beverage 23,655 23,938 68,600 70,002 Hotel 7,070 7,306 19,922 19,891 Other 3,123 3,171 9,274 9,005 Selling, general and administrative 27,508 27,177 81,484 80,449 Depreciation and amortization 14,056 13,103 40,842 37,994 Other operating items, net 541 225 1,956 931 Total operating expenses 104,641 102,596 306,732 299,073 Income from operations 38,173 35,277 98,390 88,600 Interest income (expense), net 575 (145) 1,283 (349)Income before income taxes 38,748 35,132 99,673 88,251 Provision for income taxes (7,172) (7,531) (21,225) (19,693)Net income$31,576 $27,601 $78,448 $68,558 Earnings per share of common stock Basic$1.73 $1.50 $4.27 $3.67 Diluted$1.69 $1.47 $4.18 $3.60 Basic 18,297 18,404 18,376 18,681 Diluted 18,736 18,746 18,752 19,039 MONARCH CASINO & RESORT, INC. AND SUBSIDIARIESCONSOLIDATED BALANCE SHEET(In thousands, except share data) September 30,2025 December 31,2024ASSETS(unaudited) Current assets Cash and cash equivalents$107,639 $58,760 Receivables, net of provision for credit losses 8,950 10,257 Income taxes receivable - 1,523 Inventories 8,479 9,296 Prepaid expenses and other 8,947 10,586 Total current assets 134,015 90,422 Property and equipment, net 564,242 575,287 Goodwill 25,111 25,111 Intangible assets, net 1,727 345 Other assets, net 289 418 Total assets$725,384 $691,583 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Accounts payable$40,583 $41,243 Construction accounts payable 47,642 51,101 Accrued expenses 50,945 53,198 Income taxes payable 52 - Short-term lease liability 1,015 921 Total current liabilities 140,237 146,463 Deferred income taxes 13,348 13,348 Long-term lease liability 12,542 13,143 Other long-term liabilities 881 881 Total liabilities 167,008 173,835 Stockholders' equity Preferred stock, $.01 par value, 10,000,000 shares authorized;none issued - - Common stock, $.01 par value, 30,000,000 shares authorized;19,529,846 shares issued and 18,250,291 outstandingat September 30, 2025; 19,364,531 shares issuedand 18,436,540 outstanding at December 31, 2024 195 193 Additional paid-in capital 72,925 62,891 Treasury stock, 1,279,555 shares at September 30, 2025 and927,991 shares at December 31, 2024 (95,006) (63,686)Retained earnings 580,262 518,350 Total stockholders' equity 558,376 517,748 Total liabilities and stockholders' equity$725,384 $691,583 MONARCH CASINO & RESORT, INC. AND SUBSIDIARIES RECONCILIATION OF ADJUSTED EBITDA TO NET INCOME(In thousands, unaudited) The following table sets forth a reconciliation of Adjusted EBITDA, a non-GAAP financial measure, to net income, a GAAP financial measure: Three Months EndedSeptember 30, Nine Months EndedSeptember 30, 2025 2024 2025 2024Net income$31,576 $27,601 $78,448 $68,558Expenses: Stock-based compensation 2,078 2,038 6,080 5,589Depreciation and amortization 14,056 13,103 40,842 37,994Provision for income taxes 7,172 7,531 21,225 19,693Interest (income) expense, net (575) 145 (1,283) 349Construction litigation expenses (2) 517 21 1,880 664Lobbying expense to oppose the expansion of iGaming (2) 3 - 53 -Loss (gain) on disposition of assets (2) 21 204 23 267Adjusted EBITDA (1)$54,848 $50,643 $147,268 $133,114 (1)Adjusted EBITDA, a non-GAAP financial measure, consists of net income plus loss (gain) on disposal of assets, provision for income taxes, stock-based compensation expense, other one-time charges, construction litigation expenses, acquisition expenses, interest expense, depreciation and amortization less interest income, any benefit for income taxes and gain on disposal of assets. Adjusted EBITDA should not be construed as an alternative to operating income (as determined in accordance with US Generally Accepted Accounting Principles), as an indicator of the Company's operating performance, as an alternative to cash flows from operating activities (as determined in accordance with US GAAP) or as a measure of liquidity. This measure enables comparison of the Company's performance over multiple periods, as well as against the performance of other companies in our industry that report Adjusted 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.(2)Amount included in the "Other operating items, net" in the Consolidated Statement of Income.

Monarch Casino & Resort Reports All-Time Record Quarterly Financial Results

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