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Monarch Casino & Resort Inc. — Annual Stockholder Meeting Presentation - May 2024 (company IR deck)
Monarch Casino & Resort Inc. (MCRI) · 28 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 — Annual Stockholders’ Meeting
Annual Stockholders’ Meeting May 21, 2024
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) Property Highlights Prime locations and assets • Atlantis Casino Resort Spa is located in south Reno, three miles south of downtown, a more affluent area, and 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 up of Monarch Casino Resort Spa, including VIP business development, as well as growing opportunity for retail and online sports betting • Ongoing capital investments at Atlantis to ensure it retains its competitive advantage • 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 3/31/24 • 1Q24 LTM Net revenue of $506 million, Adjusted EBITDA1 of $173 million and Adjusted EBITDA margin of 34.1% (compared to $486 million Net Revenue; $169 million Adjusted EBITDA; and 34.8% Adjusted EBITDA margin during the previous twelve month period) 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 our Sportsbook, Bistro Mariposa, and new High-Limit tables area 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 2023 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 2023 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 for 13th consecutive year • TripAdvisor (2024): Rated #1 Reno resort for 9 consecutive years with 4 of our restaurants consistently ranked in the city’s top 10 (out of more than 1,100) • Forbes (2024): Four-Star Award for Spa Atlantis for 9 consecutive years (only four- star venue in Reno) and, for the first time in 2024, the Atlantis Steakhouse. Recommended rating for Atlantis Casino Resort Spa and Bistro Napa • U.S. News & World Report (2024): Best USA Hotels Gold Badge 61,000 square-foot casino floor • ~1,200 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 27 years • Primary focus has always been providing best-in-class and best-in-market experiences, amenities, and service Property enhancements • Began the redesign and upgrade of 125 rooms in tower 3 in Q1 2024 • Redesigned and upgraded 446 rooms as of Q4 2023 • Plans to redesign and upgrade all remaining 246 rooms in early 2025 • Redesigned and upgraded the oyster and sushi bar restaurant in Q4 2023 • Various upgrades to our hotel rooms, restaurants, and the casino that bring a fresh new look to the property Continuous focus on profitability • Controlling operating costs and driving gaming revenues • Leveraging proprietary player segmentation tools to drive gaming and other revenues Source: Monarch Casino & Resort analysis, Nevada Gaming Control Board 3.6% 15.9% 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 2023 1Q24 LTM MCRI market share (TTM)
Slide 8 — Atlantis Hotel Occupancy and Cash ADR
Atlantis Hotel Occupancy and Cash ADR Hotel occupancy rates remain stable Source: Monarch Casino & Resort analysis, Reno-Sparks Convention & Visitors Authority 1. Cash ADR is inclusive of resort fees. 85% 86% 84% 65% 65% 64% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 2022 2023 1Q24 LTM Total Occupancy Atlantis Reno-Sparks $149 $152 $158 $151 $152 $153 $0 $20 $40 $60 $80 $100 $120 $140 $160 $180 2022 2023 1Q24 LTM Cash ADR1 Atlantis Reno-Sparks
Slide 9 — Fast-Growing Reno Metro Market
Fast-Growing Reno Metro Market Washoe County Population of ~500,000 • Reno-Sparks population grew 2.4% from 2020 to 2023 (national average: 1.0%) • 2022 per capita personal income for the Reno metro area was 19% higher than the national average ($78,077 vs. $65,471) • Gaming environment remains extremely competitive due to tribal gaming expansion in major feeder markets (California, Oregon and Washington) Reno metro area diversifying to broader base of industries • 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 (Blockchains; Google; Panasonic; Switch; Tesla; etc.) Attractive Nevada tax environment drives relocation interest • No state taxes on personal / corporate income, inventory, inheritances, capital gains • 21 companies either relocated to or expanded their workforce in the Reno-Sparks area in 2023, adding over 1,200 new jobs with a record average hourly wage of $40 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 a 90-minute drive from Reno Peppermill Grand Sierra Circus Circus Eldorado Silver Legacy Club Cal Neva Boomtown Reno, Gold Dust West & J Resort 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 • ~1,050 slot machines • ~43 table games • 16 poker tables • Keno • Company managed retail and online sports book • World-class spa and pool facility on the top floor of hotel tower • 4 restaurants, gourmet coffee bar and 10 bars/lounges • ~1,500 parking spaces – 9 story parking garage and valet space 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 nine years Market share growth has been driven by the end-to-end transformation of the property • 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% 30.4% 0% 5% 10% 15% 20% 25% 30% 35% 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 2023 Q2 2023 Q4 MCRI market share (TTM)
Slide 15 — Black Hawk-Central City Market
Black Hawk-Central City Market Market consists of: • ~21 casinos • ~7,641 slot machines • ~182 table games • ~50 poker tables • ~1,651 hotel rooms spread across seven gaming facilities Population of ~3 million within a 50-mile radius of Black Hawk • Population growth of 1.2% from 2020 to 2023 (national average: 1.0%) • 2022 per capita personal income for the Denver metro area was 30% higher than the national average ($84,788 vs. $65,471) Black Hawk 50-mile radius Boulder Denver Source: Monarch Casino & Resort analysis, Colorado Division of Gaming, U.S. Census, U.S. BEA Vail
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 • 2023: Black Hawk / Central City collectively represent over 85% 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 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 Lady Luck
Slide 17 — Denver Metro Area Provides Significant Air Traffic to Las Vegas
Denver Metro Area Provides Significant Air Traffic to Las Vegas 1,754 1,281 821 755 723 683 644 533 486 480 0 200 400 600 800 1,000 1,200 1,400 1,600 1,800 2,000 Los Angeles San Francisco New York Chicago Dallas Seattle Denver Houston Atlanta San Diego Top Las Vegas Feeder Markets (2022 Originating Passengers in Thousands) Denver is the seventh largest feeder market to Las Vegas 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 books • 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
Slide 20 — Organic Growth Opportunities
Organic Growth Opportunities Monarch Casino Resort Spa • Colorado’s regulation that eliminated betting limits has created an opportunity for additional expansion of the VIP market in the Front Range Atlantis Casino Resort Spa • Ongoing capital investments at the property to maintain competitive advantage • Opportunities for further development on 40 acres of adjacent land Strong economic tailwinds in both Reno and Denver • Significant population growth in both markets
Slide 21 — Other Growth Opportunities
Other 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 and population growth In February 2023, the Board of Directors authorized: • Annual cash dividend of $1.20 per outstanding share of common stock beginning with the second quarter of 2023; payable on a quarterly basis • In 2024, the Company expects to pay total cash dividends of $1.20 per share In the fourth quarter of 2023, the Company began buying back shares of its common stock: • Through May 17, 2024, the Company had bought back 707,195 shares of the 3,000,000 shares authorized for repurchase by the Board of Directors in 2014
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 2023 1Q24 LTM Net Revenue $134 $136 $135 $163 $189 $188 $202 $217 $231 $240 $249 $184 $395 $478 $501 $506 Adj. EBITDA $26 $30 $29 $36 $49 $44 $50 $56 $58 $61 $62 $43 $137 $167 $171 $173 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% 34.1% 34.1% 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 -0.2x -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 2023 1Q24 LTM Total Net Debt/LTM Adjusted EBITDA1 Net Leverage Ratio
Slide 25 — Income Statement Overview
Income Statement Overview Three Months Ended March 31, $ in 000s, except per share data and percentages 2024 2023 Increase Net revenue $121,657 $116,644 4.3% Net income $18,275 $17,670 3.4% Adjusted EBITDA(1) $38,548 $36,480 5.7% Basic EPS $0.95 $0.92 3.3% Diluted EPS $0.93 $0.90 3.3% 1. 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 March 31, 2024 December 31, 2023 Cash and cash equivalents $39,484 $43,361 Net property and equipment 585,434 580,497 Other assets 52,347 57,015 Total assets $677,265 $680,873 Long-term debt (including current maturities) $5,500 $5,500 Other liabilities 162,852 162,233 Total liabilities $168,352 $167,733 Total stockholders’ equity $508,913 $513,140 Total liabilities and stockholders’ equity $677,265 $680,873 • In February 2023, the Company entered into a Fifth Amended and Restated Credit Agreement which increased the aggregate principal amount of its revolving line of credit from $70 million to $100 million • Monarch owns substantially all of its real estate and is not subject to material rent payments • $1.20/share annual cash dividend, payable quarterly; the Company announced a $0.30/share cash dividend payable on June 15, 2024 to stockholders of record as of June 1, 2024 • During the first quarter of 2024, the Company bought back 281,708 shares of its common stock on the open market
Slide 27 — Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation Three Months Ended March 31, $ in 000s 2024 2023 Net income $18,275 $17,670 Expenses: Stock based compensation 1,778 1,474 Depreciation and amortization 12,487 11,337 Provision for income taxes 5,542 4,902 Interest income (expense), net (7) 587 Construction litigation expenses(2) 510 510 Gain on disposition of assets(2) (37) - Adjusted EBITDA(1) $38,548 $36,480 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, 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 Monarch'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 Monarch'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. Monarch defines Adjusted EBITDA margin as Adjusted EBITDA divided by Net revenue.
Slide 28 — Monarch Casino & Resort, Inc.
Monarch Casino & Resort, Inc. 2024 Annual Stockholders’ Meeting