Monarch Casino & Resort Reports Record Second Quarter 2025 Financial Results

Core Viewpoint - Monarch Casino & Resort, Inc. reported record financial results for the second quarter of 2025, with significant increases in net revenue, net income, and adjusted EBITDA, driven by strong casino performance and operational efficiencies [2][6][7]. Financial Performance - Net revenue for Q2 2025 was $136.9 million, a 6.8% increase from $128.1 million in Q2 2024 [1][4]. - 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 from $43.9 million in Q2 2024 [1][7]. - Basic EPS increased by 21.5% to $1.47, while diluted EPS rose by 21.0% to $1.44 [1][6]. Revenue Breakdown - Casino revenue increased by 12.1% year-over-year, contributing significantly to the overall revenue growth [2][4]. - Food and beverage revenue saw a modest increase of 1.1%, while hotel revenues declined by 3.1% due to reduced convention business [4]. Operational Efficiency - The company achieved an operating margin increase of approximately 320 basis points, resulting in an adjusted EBITDA margin of 37.5% [2]. - Selling, general and administrative (SG&A) expenses were $26.8 million, slightly up from $26.2 million in the prior year, but as a percentage of net revenue, SG&A decreased to 19.6% from 20.4% [5]. Capital Expenditures 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 and upgrade of hotel rooms at Atlantis [8]. - The company paid a cash dividend of $0.30 per share on June 15, 2025, and has plans for ongoing dividends as part of an annual cash dividend strategy [9][12]. - Monarch repurchased 240,395 shares for $19.8 million under its Repurchase Plan, with authorization to buy up to 1,709,645 additional shares [10]. Market Position and Recognition - The redesign of hotel rooms at Atlantis has resulted in market share gains, with the hotel ranked as the No. 1 hotel in Reno by U.S. News & World Report [3]. - Monarch Black Hawk is increasing its market share among mid-to-upper-tier guests, with its restaurants receiving awards for excellence [4].