Monarch Casino & Resort(MCRI) - 2025 Q2 - Quarterly Results

Financial Performance - Net revenue for Q2 2025 was $136.9 million, a 6.8% increase from $128.1 million in Q2 2024, driven by a 12.1% rise in casino revenues[1][2] - Net income rose to $27.0 million, reflecting a 19.1% increase compared to $22.7 million in the same quarter last year[1][6] - Adjusted EBITDA reached $51.3 million, marking a 16.8% increase year-over-year from $43.9 million[1][6] - Basic EPS increased by 21.5% to $1.47, while diluted EPS rose by 21.0% to $1.44 compared to the prior year[1][6] - Adjusted EBITDA for the six months ended June 30, 2025, reached $92,420,000, compared to $82,471,000 for the same period in 2024, indicating a growth of approximately 12.0%[23] - Net income for the three months ended June 30, 2025, was $27,008,000, up from $22,682,000 for the same period in 2024, representing a year-over-year increase of about 19.5%[23] Expenses and Costs - SG&A expenses were $26.8 million, a slight increase from $26.2 million, but as a percentage of net revenue, it decreased to 19.6% from 20.4%[5] - The company reported stock-based compensation expenses of $1,875,000 for the three months ended June 30, 2025, compared to $1,773,000 for the same period in 2024, a rise of about 5.8%[23] - The company incurred construction litigation expenses of $916,000 for the three months ended June 30, 2025, compared to $133,000 for the same period in 2024, reflecting a significant increase[23] Capital and Shareholder Returns - Capital expenditures for Q2 2025 totaled $12.4 million, funded from operating cash flow, including the completion of a $100 million redesign of hotel rooms at Atlantis[7] - The company repurchased 240,395 shares for $19.8 million under its Repurchase Plan, with authorization to buy an additional 1,709,645 shares[9] - A cash dividend of $0.30 per share was paid on June 15, 2025, as part of an annual dividend of $1.20 per share[8][11] Balance Sheet and Assets - The company reported a strong balance sheet with cash and cash equivalents of $71.6 million and no borrowings against its credit facility as of June 30, 2025[7] - Total assets increased to $705,786,000 as of June 30, 2025, compared to $691,583,000 on December 31, 2024, reflecting a growth of approximately 2.9%[22] - Current assets rose to $102,537,000 as of June 30, 2025, from $90,422,000 at the end of 2024, marking an increase of about 13.4%[22] - Total liabilities decreased to $166,539,000 as of June 30, 2025, down from $173,835,000 on December 31, 2024, showing a reduction of approximately 4.2%[22] - Retained earnings increased to $554,183,000 as of June 30, 2025, compared to $518,350,000 at the end of 2024, reflecting a growth of about 6.9%[22] - Cash and cash equivalents rose to $71,590,000 as of June 30, 2025, up from $58,760,000 on December 31, 2024, representing an increase of approximately 21.8%[22] Strategic Initiatives - The company is continuously evaluating potential M&A opportunities to drive long-term value for shareholders[10] - The number of diluted shares outstanding increased to 18,723,000 as of June 30, 2025, from 18,776,000 in the previous year, indicating a slight decrease of about 0.3%[20]