Monarch Casino & Resort, Inc. Declares Cash Dividend as Quarterly Earnings Showcase Growth
RENO, Nev., Oct. 23, 2024 (GLOBE NEWSWIRE) – In a recent announcement that delighted investors and market watchers alike, Monarch Casino & Resort, Inc. (Nasdaq: MCRI) confirmed its commitment to returning value to shareholders by declaring a cash dividend of $0.30 per share. This dividend, payable on December 15, 2024, to stockholders of record as of December 1, 2024, is part of a broader strategy to enhance shareholder value, as the company continues to thrive despite a competitive landscape.
Strong Third Quarter Results
For the third quarter ending September 30, 2024, Monarch Casino reported robust operating results that indicate a healthy growth trajectory. The company recorded net revenues of $137.9 million, demonstrating a year-over-year increase of 3.7% from $133 million in the same quarter of 2023. Key financial metrics include:
- Net Income: $27.6 million, a significant increase of 14.2% from $24.2 million year-over-year.
- Adjusted EBITDA: Reached $50.6 million, up 2.9% from $49.2 million in the prior year, evidencing operational efficiency and effective cost management.
- Earnings Per Share (EPS): Basic EPS increased by 19.0% to $1.50, while diluted EPS rose by 19.5% to $1.47, underscoring the company’s profitability and operational strength.
According to John Farahi, Co-Chairman and Chief Executive Officer of Monarch, these results reflect the appeal of their properties and high service levels, particularly at Monarch Black Hawk, which has consistently gained market share.
Strategic Investments and Cost Management
Monarch Casino & Resort’s success can be attributed to strategic investments and a robust cost management framework. Farahi highlighted that the company is dedicated to enhancing its amenities and service offerings, which has particularly proven advantageous in the competitive Denver and Boulder markets.
The ongoing redesign and upgrades of the remaining 246 hotel rooms at their Atlantis property are set to culminate by the second quarter of 2025. At the same time, Monarch is streamlining operations by embracing new technologies aimed at reducing labor costs, thus preserving margin integrity.
Financial Prudence
Monarch’s financial health is further illustrated by its liquidity position. As of September 30, 2024, the company reported cash and cash equivalents of $39.4 million, alongside an outstanding principal balance of just $7 million under its credit facility. This positions Monarch favorably for reinvestment in its properties, continued dividend payments, and share repurchase under its existing stock repurchase authorization.
Stockholder Value and Dividend Declaration
Monarch’s announcement regarding the $0.30 cash dividend is particularly significant as it aligns with their goal to provide consistent returns to shareholders. This cash dividend is part of a previously announced annual cash dividend of $1.20 per share, paid in quarterly installments, subject to quarterly reviews by the Company’s Board of Directors.
On this front, Monarch has demonstrated strong commitment by paying a similar cash dividend in September 2024, signaling confidence in the company’s ongoing operational success and cash flow stability.
Forward-Looking Statements
While the company’s outlook appears positive, it is essential to consider the forward-looking nature of some of its statements. Monarch Casino & Resort acknowledges several factors that could influence future performance, including potential economic downturns, market competition, labor shortages, and fluctuations in guest spending. The management emphasizes robust risk management strategies and emphasizes operational flexibility to navigate unexpected challenges.
About Monarch Casino & Resort, Inc.
Headquartered in Reno, Nevada, Monarch Casino & Resort, Inc. operates two premier gaming and entertainment properties: Monarch Casino Resort Spa in Black Hawk, Colorado, and Atlantis Casino Resort Spa in Reno. Featuring luxurious accommodations and extensive gaming facilities, both properties have made a mark in the hospitality and gaming industry.
As Monarch continues to enhance its offerings and expand its operational capabilities, stakeholders can anticipate the company’s sustained commitment to growth and its focus on delivering value to shareholders.
In conclusion, the recent quarterly report and dividend declaration from Monarch Casino & Resort, Inc. not only highlight their current operational success but also illustrate their strategic vision for continued growth. Investors will be keenly watching how the company manages its expansion while maintaining profitability in an ever-evolving market.
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