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

Financial Performance - For the three months ended March 31, 2025, net income totaled $19.9 million, reflecting an 8.7% increase compared to $18.3 million in the same period in 2024[104] - Net revenues for the same period increased by $3.7 million, or 3.1%, totaling $125.4 million compared to the prior year[104] - Casino revenue increased by 5.0% in Q1 2025, driven by a continued increase in market share[105] - Food and beverage revenue decreased by 0.5% due to a 0.7% decrease in covers, while revenue per cover increased by 0.2%[106] - Hotel revenue decreased by 0.4%, with an average daily rate (ADR) increase of $10.83, and occupancy rate rising to 80.9%[107] - Other revenue increased by 9.2%, primarily due to higher spa and commission revenues[108] Expenses and Cash Flow - SG&A expense increased to $27.2 million, but as a percentage of net revenue, it decreased to 21.7% from 22.3%[109] - Net cash provided by operating activities was $36.5 million, a decrease from $38.3 million in the same prior year period[114] - Cash paid for capital expenditures totaled $16.0 million in Q1 2025, down from $17.9 million in Q1 2024[112] Financing Activities - Net cash used in financing activities totaled $4.1 million, consisting of $5.5 million for dividends, partially offset by $1.4 million from stock options exercise[116] - The Company entered into an Amended Credit Facility of $100.0 million, extending the maturity date to January 1, 2028[117] - As of March 31, 2025, the Company had no outstanding principal balance under the Amended Credit Facility, with $99.4 million available for borrowing[118] Financial Ratios and Risk Management - The Total Leverage Ratio was 0.0:1.0 and the Fixed Charge Coverage Ratio was 49.2:1.0 as of March 31, 2025, exceeding the required ratios[119] - The interest rate under the Amended Credit Facility is SOFR plus a margin of 1.25% or a base rate plus a margin of 0.25% per annum[121] - The Company anticipates that operating cash flows will be sufficient to sustain operations for the next twelve months, but acknowledges potential risks that could impact cash flow[122] - The Company has not entered into derivative financial instruments for trading or speculative purposes, indicating a conservative approach to market risk[127] - As of March 31, 2025, the Company had no cash or cash equivalents subject to market risk[128]