Monarch Casino & Resort(MCRI) - 2025 Q3 - Quarterly Report

Financial Performance - For the three months ended September 30, 2025, net income was $31.6 million, or $1.69 per diluted share, reflecting a 14.4% increase in net income compared to $27.6 million, or $1.47 per diluted share in 2024[109] - Net revenues for the same period totaled $142.8 million, an increase of $4.9 million, or 3.6%, compared to $137.9 million in the prior year[109] - For the nine months ended September 30, 2025, net income was $78.4 million, or $4.18 per diluted share, reflecting a 14.4% increase compared to $68.6 million, or $3.60 per diluted share in 2024[117] - Net revenues for the nine months totaled $405.1 million, an increase of 4.5% compared to $387.5 million in the same period of 2024[117] Revenue Breakdown - Casino revenue increased by 5.0% in Q3 2025, driven by a continued increase in market share, with casino operating expenses as a percentage of revenue decreasing to 35.8% from 36.3%[110] - Food and beverage revenue for Q3 2025 increased by 2.9%, with a 4.3% increase in revenue per cover, while covers decreased by 2.8%[111] - Hotel revenue increased by 3.9% in Q3 2025, primarily due to an increase in average daily rate (ADR) of $11.39, with RevPAR rising to $183.42 from $176.47[112] - Casino revenue for the first nine months of 2025 increased by 7.3%, with operating expenses as a percentage of revenue decreasing to 36.4% from 37.3%[118] - Food and beverage revenue for the first nine months increased by 1.2%, with operating expenses as a percentage of revenue decreasing to 71.4% from 73.8%[119] - Hotel occupancy decreased from 84.8% in the first nine months of 2024 to 83.4% in 2025, while RevPAR increased to $171.59 from $167.74[120] Expenses and Cash Flow - SG&A expense increased to $81.5 million in the first nine months of 2025 from $80.4 million in the same period in 2024, with a decrease in SG&A as a percentage of net revenue to 20.1% from 20.8%[122] - Depreciation and amortization expense rose to $40.8 million for the nine months ended September 30, 2025, compared to $38.0 million for the same prior year period[124] - Net cash provided by operating activities totaled $126.6 million for the nine months ended September 30, 2025, an increase from $102.9 million in the same prior year period[130] - Cash paid for capital expenditures was $33.8 million for the nine months ended September 30, 2025, compared to $34.4 million in the same period in 2024[128] - Net cash used in financing activities totaled $43.9 million in the first nine months of 2025, a decrease from $72.5 million in the same period in 2024[132] Financial Position - As of September 30, 2025, the company had no outstanding principal balance under the Amended Credit Facility, with $99.4 million available for borrowing[134] - The Total Leverage Ratio as of September 30, 2025, was 0.0:1.0, and the Fixed Charge Coverage Ratio was 112.3:1.0[135] - Interest income, net of interest expense, was $1.3 million for the first nine months of 2025, compared to a net interest expense of $0.3 million in the same period in 2024[126] Future Outlook - Cash used in investing activities was primarily for the redesign and upgrade of hotel rooms and acquisition of gaming equipment at both properties[131] - The company anticipates that operating cash flows will be sufficient to sustain operations and fulfill capital expenditure plans for the next twelve months[138]