Monarch Casino & Resort(MCRI) - 2025 Q1 - Quarterly Results

Financial Performance - Net revenue for Q1 2025 reached a record $125.4 million, up 3.1% from $121.7 million in Q1 2024[1][4] - Net income increased by 8.7% to $19.9 million, with diluted EPS rising 12.9% to $1.05 compared to $0.93 in the prior year[1][6] - Adjusted EBITDA for Q1 2025 was $41.1 million, reflecting a 6.7% increase from $38.5 million in Q1 2024[1][6] - Casino revenue grew by 5.0% year-over-year, while food and beverage and hotel revenues decreased by 0.5% and 0.4%, respectively[4] - The operating margin improved by 110 basis points to a record 32.8% in Q1 2025[2] Expenses and Efficiency - SG&A expenses as a percentage of net revenue decreased to 21.7% from 22.3% in the prior year, indicating improved operational efficiency[5] - The company reported stock-based compensation expenses of $2,127 thousand for Q1 2025, compared to $1,778 thousand in Q1 2024, an increase of about 19.6%[21] - The provision for income taxes was $5,770 thousand for Q1 2025, slightly higher than $5,542 thousand in Q1 2024, indicating an increase of approximately 4.1%[21] Capital Expenditures and Investments - Capital expenditures for Q1 2025 totaled $16 million, funded from operating cash flow, including ongoing upgrades at Atlantis[7] - Approximately $100 million in capital investments are nearing completion for the redesign and upgrade of hotel rooms at Atlantis[3] - Monarch is evaluating potential M&A transactions to drive long-term value for shareholders[8] Assets and Liabilities - Total assets increased to $712,086 thousand as of March 31, 2025, up from $691,583 thousand at December 31, 2024, representing a growth of approximately 2.2%[19] - Total current assets rose to $103,311 thousand as of March 31, 2025, compared to $90,422 thousand at the end of 2024, marking an increase of around 14.2%[19] - Total liabilities increased slightly to $176,451 thousand as of March 31, 2025, from $173,835 thousand at December 31, 2024, a change of about 0.9%[19] - Retained earnings grew to $532,676 thousand as of March 31, 2025, up from $518,350 thousand at the end of 2024, representing an increase of approximately 2.8%[19] - Cash and cash equivalents increased to $75,090 thousand as of March 31, 2025, compared to $58,760 thousand at December 31, 2024, a significant rise of about 27.8%[19] - Accounts payable decreased to $38,803 thousand as of March 31, 2025, down from $41,243 thousand at the end of 2024, reflecting a decline of approximately 5.9%[19] Dividends - The company declared a cash dividend of $0.30 per share, payable on June 15, 2025, as part of an annual dividend of $1.20 per share[8][9]