Monarch Casino & Resort(US:MCRI) Globenewswire·2025-04-22 20:03Core Viewpoint - Monarch Casino & Resort, Inc. reported strong financial results for the first quarter of 2025, with notable increases in net revenue, net income, and adjusted EBITDA, reflecting effective operational strategies and growth initiatives [2][6]. Financial Performance - Net revenue for Q1 2025 was $125.4 million, a 3.1% increase from $121.7 million in Q1 2024 [4][6]. - Net income rose to $19.9 million, an 8.7% increase compared to $18.3 million in the same period last year [6]. - Adjusted EBITDA reached $41.1 million, marking a 6.7% increase from $38.5 million in Q1 2024 [6][21]. - Basic EPS increased by 13.7% to $1.08, while diluted EPS rose by 12.9% to $1.05 [6][21]. Revenue Breakdown - Casino revenue increased by 5.0% year-over-year, while food and beverage (F&B) and hotel revenues saw slight declines of 0.5% and 0.4%, respectively [4][6]. - The decrease in F&B and hotel revenues was attributed to one less day in Q1 2025 compared to Q1 2024 and a reduction in available hotel rooms [4]. Operating Efficiency - The operating margin improved by 110 basis points to a record 32.8% [2]. - Selling, general and administrative (SG&A) expenses were $27.2 million, slightly up from $27.1 million, but as a percentage of net revenue, it decreased to 21.7% from 22.3% [5]. - Casino operating expenses as a percentage of casino revenue decreased to 37.7% from 38.0%, attributed to better labor management and operational efficiency [5]. Capital Expenditures and Investments - Capital expenditures for Q1 2025 totaled $16 million, funded from operating cash flow, focusing on the redesign and upgrade of guest rooms at Atlantis [7]. - The company is nearing completion of approximately $100 million in capital investments at Atlantis [3]. Dividend and Shareholder Returns - A cash dividend of $0.30 per share was paid on March 15, 2025, with plans for a similar dividend on June 15, 2025 [8][9]. - The company maintains a strong balance sheet and free cash flow, positioning it well for future investments and dividend payments [8]. Market Position - Monarch Black Hawk is recognized as a premier luxury casino resort in Colorado, gaining market share among mid-to-upper-tier guests from the Denver and Boulder metro areas [3].