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Monarch Casino & Resort Inc. — Investor Presentation - Fourth Quarter 2022 (company IR deck)
Monarch Casino & Resort Inc. (MCRI) · 27 slides · Filed Oct 28, 2026
Every slide of this earnings presentation, with the text as published. Open the original deck ↗ · All MCRI deck slides
Slide 1 — Investor Presentation
Investor Presentation March 2023
Slide 2 — Forward Looking Information
Forward Looking Information This presentation contains certain forward-looking information that generally can be identified by the context of the statement or the use of forward-looking terminology, such as “believes,” “estimates,” “anticipates,” “intends,” “expects,” “plans,” “is confident that,” “should” or words of similar meaning, with reference to Monarch Casino & Resort or our management. Similarly, statements that describe our future plans, objectives, strategies, financial results or position, operational expectations, or goals are forward-looking statements. It is possible that our expectations may not be met due to various factors, many of which are beyond our control, and we therefore cannot give any assurance that such expectations will prove to be correct. For a discussion of relevant factors, risks, and uncertainties that could materially affect our future results, attention is directed to Risk Factors and Management’s Discussion and Analysis of Financial Condition and Results of Operations in our latest 10-K and other filings under the Securities and Exchange Act of 1934.
Slide 3 — Monarch Casino & Resort, Inc.
Monarch Casino & Resort, Inc. (MCRI) Highlights Prime locations and assets • Atlantis Casino Resort Spa is in south Reno, a more affluent area three miles south of downtown, connected by a bridge to the Reno-Sparks Convention Center • Monarch Casino Resort Spa is the first property encountered by visitors arriving from Denver and other major population centers via Highway 119 Significant growth opportunities • Continued ramp of Monarch Casino Resort Spa, including VIP business development and growing opportunity for in-person and online sports betting • Ongoing capital investments at Atlantis to ensure it retains its market-leading position • Potential for development on Atlantis’ 40-acre parcel of land Results-oriented management with a strong operations and development track record • Monarch ranked 36th among the Top 100 on Forbes’ 2023 America’s Best Small Companies list Attractive financial profile / balance sheet • Net leverage of -0.2x as of 12/31/22 • 2022 Net revenue of $478 million, Adjusted EBITDA1 of $167 million and Adjusted EBITDA margin of 35.0% Source: Monarch Casino & Resort analysis 1. EBITDA is adjusted for stock option, pre-opening and construction litigation expenses, and one-time charges.
Slide 4 — Company History
Company History 2015 Black Hawk • Completed redesign and upgrade of existing casino 2016 Black Hawk • Completion of new 9- story parking structure 2012 Black Hawk • Acquired gaming license for Riviera Black Hawk • 32,000 square feet of casino space • 750 slot machines • 8 table games • Acquired contiguous 1.5-acre land parcel 2017 Black Hawk • Hotel tower and casino expansion begins 2021-2022 Black Hawk • Expansion and redesign and upgrade of the legacy building completed with the opening of Bistro Mariposa in February 2022 Reno, NV Black Hawk, CO 1994 Phase II - Atlantis • Second high-rise tower opens, adding: • 283 rooms • 14,000 square feet of casino space • 450 slot machines • 14 table games • 300-seat buffet restaurant 2008 Phase IV – Atlantis • Expansion of the casino including: • Large race and sports book • Poker room • Additional restaurant (Manhattan Deli) • ~38,000 square feet expansion of meeting area • Sky Bridge connecting to convention center 1991 Phase I – Atlantis • First high-rise tower opens • 160 rooms • 16,000 square feet of casino space • 500 slot machines • 21 table games • Additional restaurant 1999 Phase III - Atlantis • Third high-rise tower opens, adding: • 388 rooms • Over 300 slot machines • Several new restaurants • 14,500 square feet of meeting space 1993 Initial Public Offering • Monarch Casino & Resort, Inc. begins trading as a public company with ticker symbol MCRI 2022 Black Hawk • ~60,000 square feet of casino space • 516 guest rooms and suites • 4 restaurants and 10 bars/lounges • World-class spa • Banquet and meeting room space 2022 Atlantis • ~61,000 square feet of casino space • 817 guest rooms and suites • 8 restaurants and 10 bars/lounges • ~30,000 square foot health spa and salon • ~52,000 square feet of meeting area
Slide 5 — Atlantis Casino Resort Spa Reno
Atlantis Casino Resort Spa Reno
Slide 6 — Atlantis Overview
Atlantis Overview Award-winning facility • AAA: “Four Diamond” rating • TripAdvisor (2023): Rated #1 Reno resort for 9 consecutive years with 4 of our restaurants ranked in the top 10 in the city • Forbes (2023): Four-Star Award for Spa Atlantis for 8 consecutive years (only four- star venue in Reno); Recommended rating for Atlantis Casino Resort Spa, Atlantis Steakhouse and Bistro Napa • U.S. News & World Report (2023): #1 Resort and #1 Hotel in Reno 61,000 square-foot casino floor • ~1,300 slot and video poker machines • ~33 table games; 8 poker tables; 24-hour live keno lounge • Race/sports book (self managed live and mobile app) Amenities include: • 817 rooms and suites • 8 restaurants, 2 gourmet coffee bars, 10 bars/lounges and 1 snack bar • ~52,000 square feet of banquet, convention, and meeting space
Slide 7 — Atlantis GGR Market Share
Atlantis GGR Market Share Atlantis Casino Resort Spa has consistently outperformed the greater Reno-Sparks market for the last 26 years • Primary focus has always been providing best-in-class and best-in-market experiences, amenities, and service • Atlantis has consistently grown market share in the fiercely competitive Northern Nevada market Property enhancements • Redesigned and upgraded all 160 rooms in tower 1 (~20% of room inventory) in Q2 2022 • Opened new upscale retail space in Q4 2022 • New casino carpet, bringing a fresh new look to the property, installed in Q1 2023 • Currently working on the redesign and upgrade of rooms in tower 2, scheduled to be complete in Q2 2023 Continuous focus on profitability • Leveraging proprietary player segmentation tools to drive gaming revenues Source: Monarch Casino & Resort analysis, Nevada Gaming Control Board 3.6% 16.4% 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 MCRI market share (TTM)
Slide 8 — Atlantis Hotel Occupancy and Cash ADR
Atlantis Hotel Occupancy and Cash ADR Return of leisure and group business post-pandemic has contributed to Atlantis’ rebound in both hotel occupancy and cash ADR Source: Monarch Casino & Resort analysis, Reno-Sparks Convention & Visitors Authority 1. Cash ADR is inclusive of resort fees. 71% 83% 85% 53% 64% 65% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 2020 2021 2022 Total Occupancy Atlantis Reno-Sparks $122 $140 $149 $118 $140 $151 $0 $20 $40 $60 $80 $100 $120 $140 $160 2020 2021 2022 Cash ADR1 Atlantis Reno-Sparks
Slide 9 — Fast-Growing Reno Metro Market
Fast-Growing Reno Metro Market Population of ~500,000 • Reno’s population grew 17.0% from 2010 to 2021 (national average: 7.5%) • 2020 per capita personal income for the Reno metro area was 11% higher than the national average ($66,075 vs. $59,510) • Gaming environment remains extremely competitive due to tribal gaming in major feeder markets (California, Oregon and Washington) Reno metro area diversifying to broader base of industries • Tesla “Gigafactory”, which opened in 2016 and represents an investment of over $6 billion, has served as spark which has driven interest in the Reno market • In January 2023, Tesla announced a $3.6 billion expansion of the “Gigafactory” to produce semi-trucks and cell batteries • Tahoe Reno Industrial Center, the largest industrial park in the U.S., has been a center of industrial investment and new job growth Attractive Nevada tax environment drives relocation interest • No state taxes on personal / corporate income, inventory, inheritances, capital gains Source: U.S. Census, Bureau of Economic Analysis, EDAWN, Tahoe Reno Industrial Center, AP News
Slide 10 — Atlantis’ Prime Location
Atlantis’ Prime Location Ideally located in the heart of south Reno’s restaurant, shopping and convention district • ~3 miles south of downtown in more affluent commercial and residential area • Close to Interstate 580, main north/south artery • ~3 miles from Reno-Tahoe International Airport ~40 acres on both sides of South Virginia Street • Glass-enclosed bridge with restaurants connects both sides of South Virginia street • Opportunity for future development Only property connected to the Reno-Sparks Convention Center • 600,000 square-foot facility located across the street is connected to Atlantis 35 miles from Lake Tahoe • ~30 golf courses and ~10 ski resorts within an hour drive from Reno Peppermill Grand Sierra Circus Circus Eldorado Silver Legacy Club Cal Neva Boomtown Reno, Gold Dust West & Sands Regency Western Village Rail City Nugget Baldini’s Ramada Reno Source: Monarch Casino & Resort analysis Reno-Sparks Convention Center Downtown
Slide 11 — Monarch Casino Resort Spa Black Hawk
Monarch Casino Resort Spa Black Hawk
Slide 12 — Monarch Black Hawk Overview
Monarch Black Hawk Overview Amenities include: • 23-story luxurious tower with 516 hotel rooms (20% suites) • ~60,000 square foot casino • ~1,100 slot machines • ~43 table games • 14 poker tables • Keno • Company managed sports book, lounge and bar • World-class spa and pool facility on the top floor of hotel tower • 4 restaurants, gourmet coffee bar and 10 bars/lounges • 9-story parking garage with ~1,350 spaces plus additional existing valet space in the legacy building for a total of ~1,500 spaces Source: Monarch Casino & Resort analysis
Slide 13
Slide 14 — Monarch GGR Market Share1
Monarch GGR Market Share1 Monarch Casino Resort Spa has consistently grown market share over the past eight years • 2022 market share was an all-time record at 27.6% • Represents an increase of 1,960 basis points compared to market share of 8.0% at the time of the acquisition in 2012 Market share growth has been driven by the end-to-end transformation of the property • Market share gains increased in 2014 when the first phase of the legacy casino masterplan redesign and upgrade was completed and continued despite ongoing construction disruption • Market share gains accelerated in 4Q20 when the first hotel rooms and expanded casino came online Source: Monarch Casino & Resort analysis, Colorado Division of Gaming 1. Market share is based on Black Hawk and Central City GGR and excludes sports GGR. 8.0% 27.6% 0% 5% 10% 15% 20% 25% 30% 2012 Q2 2012 Q4 2013 Q2 2013 Q4 2014 Q2 2014 Q4 2015 Q2 2015 Q4 2016 Q2 2016 Q4 2017 Q2 2017 Q4 2018 Q2 2018 Q4 2019 Q2 2019 Q4 2020 Q2 2020 Q4 2021 Q2 2021 Q4 2022 Q2 2022 Q4 MCRI market share (TTM)
Slide 15 — Black Hawk-Central City Market
Black Hawk-Central City Market Market consists of: • 21 casinos • 7,885 slot machines • 168 table games • 49 poker tables • 1,651 hotel rooms spread across seven gaming facilities Population of ~3 million within a 50-mile radius of Black Hawk • The Denver metro economy is one of the nation’s strongest, with healthy population growth of 16.9% from 2010 to 2021 (national average: 7.5%) • 2020 per capita personal income for the Denver metro area was 17% higher than the national average ($69,822 vs. $59,510) Black Hawk 50-mile radius Boulder Denver Source: Monarch Casino & Resort analysis, Colorado Division of Gaming, U.S. Census, Bureau of Economic Analysis
Slide 16 — Prime Property Location
Prime Property Location First property encountered by visitors arriving from Denver and other major population centers via Highway 119 • Given constitutional zoning limitations, no property can be built closer to Denver • Scarcity of available and developable casino-zoned land in Black Hawk • Commercial gaming in Colorado is restricted to Black Hawk, Central City and Cripple Creek • Black Hawk / Central City collectively represent over 80% of total Colorado gaming revenue Convenient access from Front Range population centers and heavily-trafficked I-70 • ~35 miles west of Denver • ~35 miles southwest of Boulder • ~20 miles west of Golden • ~77 miles east of Vail Monarch Casino Resort Spa Horseshoe Lady Luck Bally’s North Bally’s East Bally’s West Ameristar The Lodge Gilpin Saratoga Bull Durham Wild Card Saloon Red Dolly Z Casino Sasquatch > 600 300 to 600 < 300 Slot count Source: Monarch Casino & Resort analysis, Colorado Division of Gaming
Slide 17 — Denver Metro Area Provides Significant Air Traffic to Las Vegas
Denver Metro Area Provides Significant Air Traffic to Las Vegas 1,164 893 782 671 608 599 533 530 504 423 0 200 400 600 800 1,000 1,200 1,400 Los Angeles San Francisco Chicago Dallas New York Seattle Denver Atlanta Houston Detroit Top Las Vegas Feeder Markets (2021 Originating Passengers in Thousands) Denver air traffic to Las Vegas was up 70.4% Y/Y in 2021 in post-pandemic recovery; well-appointed Black Hawk resort remains strong attraction Source: Las Vegas Convention and Visitors Authority
Slide 18 — Growth Initiatives
Growth Initiatives
Slide 19 — Sports Betting
Sports Betting Company owns and operates its sports book • Atlantis Race and Sports mobile app launched in Nevada in 2015 • BetMonarch mobile app launched in Colorado in May 2020 • Low operating cost structure and existing player database allowed BetMonarch to achieve growth and profitability in its first year Effective customer acquisition tool • Drives traffic to the Company’s properties as well as brand loyalty • Both betting apps are tied into the Monarch Rewards loyalty program, allowing guests to earn comp points while betting from anywhere in their respective states Software updates driving enhanced performance • Recently updated the software platform underlying both the Company’s retail and online sports wagering offerings • Additional updates expected ahead of the next NFL season to enable in-game and other real-time wagers
Slide 20 — Organic Growth Opportunities
Organic Growth Opportunities Monarch Casino Resort Spa • Table games ramp continues following Colorado’s elimination of betting limits, and the addition of new table game types in mid-2021 • Ongoing penetration of the VIP market in the Front Range Atlantis Casino Resort Spa • Ongoing capital investments at the property to maintain market-leading position Strong economic tailwinds in both Reno and Denver • Significant population growth in both markets
Slide 21 — Inorganic Growth Opportunities
Inorganic Growth Opportunities Substantial free cash flow generation following the completion of the Black Hawk development Company continually evaluates potential M&A with a focus on: • Leveraging development expertise and operational excellence to maximize ROI • Key criteria for target markets is regulatory stability, competitive set, growth opportunities, and strong economic trends In February 2023, the Board of Directors authorized: • One-time cash dividend of $5.00 per share of its outstanding common stock, payable on March 15, 2023, to stockholders of record on March 1, 2023 • Annual dividend of $1.20 per outstanding share of common stock beginning with the second quarter of 2023; payable on a quarterly basis • In 2023, the Company expects to pay total cash dividends of $5.90 per share
Slide 22 — Financial Results
Financial Results
Slide 23 — Historical Financial Performance
Historical Financial Performance Acquired Colorado gaming license April 2012 Source: Monarch Casino & Resort analysis 1. EBITDA is adjusted for stock option, pre-opening and construction litigation expenses, and one-time charges. Monarch Black Hawk starts phased opening November 2020 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Net Revenue $134 $136 $135 $163 $189 $188 $202 $217 $231 $240 $249 $184 $395 $478 Adj. EBITDA $26 $30 $29 $36 $49 $44 $50 $56 $58 $61 $62 $43 $137 $167 EBITDA Margin 19.1% 21.6% 21.8% 22.2% 25.7% 23.2% 24.7% 25.7% 25.2% 25.2% 24.8% 23.4% 34.7% 35.0% 0% 5% 10% 15% 20% 25% 30% 35% 40% $0 $100 $200 $300 $400 $500 $600 $ in millions
Slide 24 — Historical Net Leverage Ratio
Historical Net Leverage Ratio Source: Monarch Casino & Resort analysis 1. EBITDA is adjusted for stock option, pre-opening and construction litigation expenses, and one-time charges. 1.3x 0.5x 0.4x 1.7x 0.7x 0.6x 0.4x 0.0x -0.1x 1.1x 2.2x 3.5x 0.4x -0.2x -0.5x 0.0x 0.5x 1.0x 1.5x 2.0x 2.5x 3.0x 3.5x 4.0x 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Total Net Debt/LTM Adjusted EBITDA1 Net Leverage Ratio
Slide 25 — Income Statement Overview
Income Statement Overview Three Months Ended December 31, Twelve Months Ended December 31, $ in 000s, except per share data and percentages 2022 2021 Increase 2022 2021 Increase Net revenue $120,536 $111,068 8.5% $477,870 $395,377 20.9% Net income(1) $22,433 $19,871 12.9% $87,479 $68,488 27.7% Adjusted EBITDA(3) $41,588 $39,015 6.6% $167,085 $137,294 21.7% Basic EPS $1.17 $1.06 10.4% $4.60 $3.68 25.0% Diluted EPS(2) $1.14 $1.02 11.8% $4.47 $3.53 26.6% 1. Net Income was negatively impacted by legal and consulting costs, related to the ongoing litigation with the Monarch Black Hawk general contractor, PCL Construction Services, Inc. The impact during the fourth quarter of 2022 and 2021 was $0.8 million and $2.1 million, respectively, and the impact during the twelve months of 2022 and 2021 was $7.3 million and $5.1 million, respectively. 2. Diluted EPS was negatively impacted by legal and consulting costs, related to the ongoing litigation with the Monarch Black Hawk general contractor, PCL Construction Services, Inc. The impact during the fourth quarter of 2022 and 2021 was $0.03 and $0.09 per share, respectively, and the impact during the twelve months of 2022 and 2021 was $0.30 and $0.21 per share, respectively. 3. Definitions, disclosures and reconciliations of non-GAAP financial information are included later in the presentation.
Slide 26 — Balance Sheet Overview
Balance Sheet Overview $ in 000s December 31, 2022 December 31, 2021 Cash and cash equivalents $38,779 $33,526 Net property and equipment 578,050 580,807 Other assets 76,113 76,126 Total assets $692,942 $690,459 Long-term debt (including current maturities) $6,693 $88,152 Other liabilities 147,295 154,293 Total liabilities $153,988 $242,445 Total stockholders’ equity $538,954 $448,014 Total liabilities and stockholders’ equity $692,942 $690,459 No borrowings outstanding under $70 million Revolving Credit Facility In February 2023, Company entered into Fifth Amended and Restated Credit Agreement which increases aggregate principal amount of revolving line of credit from $70 million to $100 million; option to increase by another $100 million within first six months Monarch owns substantially all of its real estate and is not subject to material rent payments
Slide 27 — Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation Three Months Ended December 31, Twelve Months Ended December 31, $ in 000s 2022 2021 2022 2021 Net income $22,433 $19,871 $87,479 $68,488 Expenses: Stock based compensation 1,653 961 5,095 4,060 Depreciation and amortization 11,188 10,120 43,433 38,428 Provision for income taxes 5,443 5,213 21,543 16,883 Interest expense 200 720 2,420 4,506 Pre-opening expenses(2) - - - 2 Construction litigation expenses(2) 783 2,132 7,261 5,117 COVID-19 expenses(2)(3) - - - 108 Litigation proceeds, net(2) - - (42) (334) Insurance claims proceeds(2) - - - (100) (Gain) loss on disposition of assets(2) (112) (2) (104) 136 Adjusted EBITDA(1) $41,588 $39,015 $167,085 $137,294 1. Adjusted EBITDA, a non-GAAP financial measure, consists of net income plus loss on disposal of assets, provision for income taxes, stock-based compensation expense, other one-time charges, pre-opening expenses, 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. 3. Includes equipment and supplies directly attributable to the pandemic for reopening of properties; such expenses are incremental to normal operations.