($ in thousands, except per share data and percentages)
| Three Months Ended | |||||||
| 2026 | 2025 | Increase | |||||
| Net revenue | $ | 136,550 | $ | 125,394 | 8.9% | ||
| Net income | $ | 27,592 | $ | 19,864 | 38.9% | ||
| Adjusted EBITDA(1) | $ | 48,951 | $ | 41,131 | 19.0% | ||
| Basic EPS | $ | 1.55 | $ | 1.08 | 43.5% | ||
| Diluted EPS | $ | 1.52 | $ | 1.05 | 44.8% | ||
(1) Definitions, disclosures and reconciliations of non-GAAP financial information are included later in the release.
CEO Comment
“In the first quarter of 2026, we increased market share year-over-year at both Atlantis and
“We continue to return capital to stockholders through dividends and share repurchases. In the first quarter of 2026, we purchased, in open market transactions, 181,258 shares of Monarch common stock for
Summary of 2026 First Quarter Operating Results
In the first quarter of 2026, the Company generated net revenue of
Selling, general and administrative (“SG&A”) expense for the first quarter of 2026 was
Net income for the first quarter of 2026 increased 38.9% and diluted EPS increased 44.8% compared to the same period last year. The Company generated consolidated Adjusted EBITDA of
Credit Facility and Liquidity
As of
Capital expenditures of
In the first quarter of 2026, the Company purchased in the open market, under its share repurchase plan, 181,258 shares of its common stock, for a
On
Monarch believes its strong balance sheet and free cash flow favorably positions the Company to continue investing in its properties, share repurchases and paying cash dividends. The Company has been diligently evaluating potential M&A transactions, which it believes could drive additional long-term value for stockholders.
Quarterly Dividend Declaration
The Company today announced a cash dividend of
Forward Looking Statements
This press release contains forward-looking statements within the meaning of the safe harbor provisions of the
- 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 theDistrict Court for the State of Colorado ,City and County of Denver (the “Court”), including the outcome of any post-judgment motions filed by PCL in the Court for further release; - the outcome of our appeal of the Judgment;
- 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;
- 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 , other areas of theMiddle East and other parts of the world.
Additional information concerning potential factors that could adversely affect all forward-looking statements, including the Company's financial results, is included in our
About
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 30 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.
Contacts:
Chief Executive Officer
775/824-4401 or JFarahi@monarchcasino.com
JCIR
212/835-8500 or mcri@jcir.com
| CONSOLIDATED STATEMENTS OF INCOME |
| (In thousands, except per share data, unaudited) |
| Three months ended | ||||||||
| 2026 | 2025 | |||||||
| Revenues | ||||||||
| Casino | $ | 79,746 | $ | 72,895 | ||||
| Food and beverage | 31,701 | 30,022 | ||||||
| Hotel | 18,956 | 16,708 | ||||||
| Other | 6,147 | 5,769 | ||||||
| Net revenues | 136,550 | 125,394 | ||||||
| Operating expenses | ||||||||
| Casino | 28,733 | 27,517 | ||||||
| Food and beverage | 23,044 | 22,309 | ||||||
| Hotel | 6,822 | 6,296 | ||||||
| Other | 3,199 | 3,078 | ||||||
| Selling, general and administrative | 27,754 | 27,190 | ||||||
| Depreciation and amortization | 10,467 | 13,215 | ||||||
| Other operating items, net | 1,585 | 471 | ||||||
| Total operating expenses | 101,604 | 100,076 | ||||||
| Income from operations | 34,946 | 25,318 | ||||||
| Interest income, net | 598 | 316 | ||||||
| Income before income taxes | 35,544 | 25,634 | ||||||
| Provision for income taxes | (7,952 | ) | (5,770 | ) | ||||
| Net income | $ | 27,592 | $ | 19,864 | ||||
| Earnings per share of common stock | ||||||||
| Net income | ||||||||
| Basic | $ | 1.55 | $ | 1.08 | ||||
| Diluted | $ | 1.52 | $ | 1.05 | ||||
| Weighted average number of common shares and potential common shares outstanding | ||||||||
| Basic | 17,843 | 18,451 | ||||||
| Diluted | 18,201 | 18,829 | ||||||
| CONSOLIDATED BALANCE SHEET |
| (In thousands, except per share data) |
| ASSETS | (unaudited) | |||||||
| Current assets | ||||||||
| Cash and cash equivalents | $ | 120,125 | $ | 96,468 | ||||
| Receivables, net | 9,703 | 11,067 | ||||||
| Income taxes receivable | - | 3,013 | ||||||
| Inventories | 8,337 | 9,089 | ||||||
| Prepaid expenses and other | 8,714 | 9,616 | ||||||
| Total current assets | 146,879 | 129,253 | ||||||
| Property and equipment, net | 551,512 | 556,668 | ||||||
| 25,111 | 25,111 | |||||||
| Intangible and other long-term assets | 1,672 | 1,817 | ||||||
| Total assets | $ | 725,174 | $ | 712,849 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| Current liabilities | ||||||||
| Accounts payable | $ | 45,406 | $ | 44,924 | ||||
| Construction accounts payable | 48,184 | 50,209 | ||||||
| Income taxes payable | 4,939 | - | ||||||
| Accrued expenses | 51,052 | 54,049 | ||||||
| Short-term lease liability | 986 | 1,019 | ||||||
| Total current liabilities | 150,567 | 150,201 | ||||||
| Deferred income taxes | 11,626 | 11,626 | ||||||
| Long-term lease liability | 12,059 | 12,279 | ||||||
| Other long-term liabilities | 1,073 | 1,073 | ||||||
| Total liabilities | 175,325 | 175,179 | ||||||
| Stockholders' equity | ||||||||
| Preferred stock, | - | - | ||||||
| Common stock, | ||||||||
| 19,646,611 shares issued and 17,740,083 outstanding at | ||||||||
| 19,544,290 shares issued and 17,819,020 outstanding at | 196 | 195 | ||||||
| Additional paid-in capital | 83,717 | 76,038 | ||||||
| and 1,725,270 shares at | (154,142 | ) | (136,411 | ) | ||||
| Retained earnings | 620,078 | 597,848 | ||||||
| Total stockholders' equity | 549,849 | 537,670 | ||||||
| Total liabilities and stockholders' equity | $ | 725,174 | $ | 712,849 | ||||
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 ended | |||||||
| 2026 | 2025 | ||||||
| Net income | $ | 27,592 | $ | 19,864 | |||
| Expenses: | |||||||
| Stock based compensation | 1,953 | 2,127 | |||||
| Depreciation and amortization | 10,467 | 13,215 | |||||
| Provision for income taxes | 7,952 | 5,770 | |||||
| Interest income, net | (598 | ) | (316 | ) | |||
| Construction litigation expense(2) | 347 | 447 | |||||
| Principal judgement on construction litigation accrual(2) | 1,104 | - | |||||
| Other litigation expense accrual(2) | 98 | - | |||||
| Lobbying expense to oppose the expansion of iGaming(2) | 115 | 28 | |||||
| Gain on disposition of assets(2) | (79 | ) | (4 | ) | |||
| Adjusted EBITDA(1) | $ | 48,951 | $ | 41,131 | |||
| (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 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. |
