MONARCH CASINO & RESORT INC SEC 10-Q Report

Monarch Casino & Resort Inc., a leading operator in the gaming and hospitality industry, has released its Form 10-Q report for the third quarter of 2025. The report highlights the company's robust financial performance and operational efficiency, driven by growth in key revenue segments and improved cost management. The company operates two primary properties: Atlantis Casino Resort Spa in Reno, Nevada, and Monarch Casino Resort Spa Black Hawk in Black Hawk, Colorado.

Financial Highlights

• Net Revenues: $142.8 million, increased by 3.6% compared to the same period in 2024, driven by growth in casino and food and beverage revenues.
• Income from Operations: $38.2 million, reflecting an increase from $35.3 million in the same period in 2024, attributed to improved operational efficiency and cost management.
• Net Income: $31.6 million, a 14.4% increase from $27.6 million in the same period in 2024, due to higher revenues and better expense management.
• Diluted EPS: $1.69, up from $1.47 in the same period in 2024, reflecting improved profitability and operational performance.

Business Highlights

Revenue Segments

• Casino revenue increased by 5.0% in the third quarter of 2025 compared to the same period in 2024, driven by a continued increase in market share at the company's properties.
• Food and beverage revenue rose by 2.9% due to a 4.3% increase in revenue per cover, despite a decrease in covers by 2.8%.
• Hotel revenue saw a 3.9% increase, primarily due to a higher average daily rate (ADR).

Geographical Performance

• The Atlantis Casino Resort Spa in Reno, Nevada, and Monarch Casino Resort Spa Black Hawk in Black Hawk, Colorado, are the primary sources of revenue.
• The Reno market remains competitive, with challenges from California tribal gaming and aggressive marketing by competitors.
• The Denver metro area, where Monarch Black Hawk is located, continues to show strong economic indicators, supporting the property's performance.

Sales Units

• The company reported a decrease in food and beverage covers by 2.8% in the third quarter of 2025 compared to the same period in 2024, while the average revenue per cover increased by 4.3%.

Future Outlook

• Management anticipates that the quality of their product and exceptional guest service will continue to attract high-value players, particularly at Monarch Black Hawk, which is positioned to leverage expanded operations and benefit from the growing state-wide online and retail sports betting market.
• The company is also focused on managing labor challenges and inflationary pressures to maintain operational efficiency.

Operational Efficiency

• Casino operating expenses as a percentage of casino revenue decreased to 35.8% in the third quarter of 2025 from 36.3% in the same period in 2024, due to better labor management and operational efficiency.
• Food and beverage operating expenses as a percentage of revenue decreased to 69.9% from 72.8%, attributed to a decrease in labor expenses and an increase in revenue per cover.

Capital Expenditures

• The company continues to invest in upgrading its facilities, with capital expenditures focused on the redesign and upgrade of hotel rooms at Atlantis and the acquisition of gaming and other equipment at both properties.

SEC Filing: MONARCH CASINO & RESORT INC [ MCRI ] - 10-Q - Oct. 28, 2025