Monarch Casino & Resort Inc – ‘8-K’ for 10/25/05

On:  Thursday, 10/27/05, at 6:26pm ET   ·   As of:  10/28/05   ·   For:  10/25/05   ·   Accession #:  907242-5-31   ·   File #:  0-22088

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Current Report   —   Form 8-K
Filing Table of Contents

Document/Exhibit                   Description                      Pages   Size 

 1: 8-K         Current Report                                         7±    30K 

Document Table of Contents

 UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

----------------------

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): October 25, 2005              

 MONARCH CASINO & RESORT, INC.
(Exact name of registrant as specified in its charter)

  NEVADA                     0-22088                  88-0300760
(State or other jurisdiction       (Commission             (I.R.S. Employer     
   of incorporation)             File Number)          Identification No.)

1175 W. Moana Lane, Suite 200                                         
   Reno, NEVADA                                          89509
(Address of Principal Executive Offices)                        (Zip Code)      

(775)825-3355 
----------------------------------------------------
(Registrant's telephone number, including area code)

NOT APPLICABLE
----------------------------------------------------
 (Former name or former address, if changed since last report)

ITEM 2.02 Results of Operations and Financial Condition                         

   On October 25, 2005, Monarch Casino & Resort, Inc. (the "Company") issued
a press release reporting the Company's financial results for the third         
quarter ended September 30, 2005.  A copy of the press release is attached      
hereto as Exhibit 99.1 and incorporated herein by reference.                    

ITEM 9.01  Financial Statements and Exhibits                                    

(c) EXHIBITS                                                          

99.1  Text of press release dated October 25, 2005.           

-2-   

 SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934,  
as amended, the Registrant has duly caused this report to be signed on its      
behalf by the undersigned hereunto duly authorized.                             

                                 MONARCH CASINO & RESORT, INC.

Date:    October 28, 2005              By: /s/ Ben Farahi                       
                                           -------------------------------
                Name:   Ben Farahi
                              Title:  Chief Financial Officer,
                                     Treasurer and Secretary

-3-   

                                                                Exhibit 99.1

PRESS RELEASE   

 MONARCH CASINO & RESORT, INC. ANNOUNCES ALL-TIME RECORD QUARTER

 - EBITDA (1) IMPROVES 22.2%; NET INCOME INCREASES 27.6% -

 RENO, NV-October 25, 2005- Monarch Casino & Resort, Inc. (Nasdaq: MCRI)
(the "Company"), owner of the Atlantis Casino Resort in Reno, Nevada, today     
announced an all-time quarterly record for its third quarter ended September    
30, 2005.                                                                       

 The Company reported 2005 third quarter EBITDA (1), of $13.3 million, a
new all-time Company quarterly record and a 22.2% improvement over the $10.9    
million EBITDA (1) in the 2004 third quarter.  The improvement was driven by    
record net revenue and improved operating margins and beat published consensus  
analysts' estimates of $12.0 million.  Net revenues at the Company's Atlantis   
Casino Resort were $38.3 million during the quarter, a 9.4% increase from       
$35.1 million during the same period in 2004.  The record net revenues were     
driven primarily by a 12.2% increase in casino revenues, which reached an all-  
time Company quarterly record of $25.4 million during the three months ended    
September 30, 2005.  Hotel revenues increased 3.9%, food and beverage revenues  
improved 4.9% and other revenue centers grew 19.3% in the third quarter of      
2005 compared to the third quarter of 2004.  The 9.4% increase in net           
revenues, combined with across-the-board operating margin improvements and an   
increase of only 3.6% in operating costs and expenses, led to a 26.6% increase  
in income from operations for the three months ended September 30, 2005, as     
compared to the same period in 2004.                                            

  Net income for the 2005 third quarter was a record $7.1 million, a 27.6%
increase from net income of $5.6 million for the same period a year earlier     
and translated into earnings per diluted share (EPS) of $0.37 versus $0.30 for  
the same period last year.  The Company's third quarter 2005 EPS of $0.37 beat  
published consensus analysts' estimates of $0.33.  During the 2005 third        
quarter, the Company achieved 71.2% flow through of incremental net revenue to  
income from operations leading to an operating margin of 29.1% for the period,  
compared to 25.1% during last year's third quarter.                             

Monarch's CEO and Co-Chairman John Farahi commented on the Company's  
third quarter performance: "I believe our record results stem from a            
confluence of favorable factors. The vitality of our market manifested by the   
area's strong economy and continuing population growth combined with our great  
location and product drives these remarkable numbers.  Our management team has  
done a superb job taking advantage of these opportunities."                     

Mr. Farahi continued: "Our improving balance sheet also opens the     
possibilities for new growth opportunities for Monarch which includes current   
planning for the next phase of our expansion at Atlantis."  During the third    
quarter, the Company reduced the unpaid principal balance under its credit      
facility, bringing its outstanding balance to $11.9 million at September 30,    
2005 from $32.4 million at December 31, 2004.                                   

  Monarch Casino & Resort, Inc., through its wholly-owned subsidiary, owns
and operates the tropically-themed Atlantis Casino Resort in Reno, Nevada.      
The Atlantis is the closest hotel-casino to, and is directly across the street  
from, the Reno-Sparks Convention Center.  The Atlantis is recognizable due to   

-4-   

its Sky Terrace, a unique structure rising approximately 55 feet from street    
level and spanning 160 feet across Virginia Street with no intermediate         
support pillars. The Sky Terrace connects the Atlantis to a 16-acre parcel of   
land owned by the Company, that is compliant with all casino zoning             
requirements and is suitable and available for future expansion of the          
Atlantis facilities and is currently being used by the Company as additional    
paved parking for the Atlantis.  The existing Atlantis site offers almost       
1,000 guest rooms in three contiguous high-rise hotel towers and a motor        
lodge. The tropically-themed Atlantis features approximately 51,000 square      
feet of high-energy casino space with 38 table games and approximately 1,450    
slot and video poker machines, a sports book, Keno and a poker room, and        
offers a variety of dining choices in the form of nine high-quality food        
outlets.                                                                        

   This press release contains forward-looking statements within the meaning
of Section 21E of the Securities Exchange Act of 1934 which are subject to      
change, including, but not limited to, comments relating to (i) future          
operating performance, (ii) future convention business, and (iii) the           
financial benefits that may result from future operations.  The actual results  
may differ materially from those described in any forward-looking statements.   
Additional information concerning potential factors that could affect the       
Company's financial results is included in the Company's Securities and         
Exchange Commission filings, which are available on the Company's web site.     

Contacts: Ben Farahi at (775) 825-3355 or benfarahi@monarchcasino.com           
   Karl G. Brokmann at (775) 825-3355 or kbrokmann@monarchcasino.com

For additional information including artist renditions and photographs,         
visit Monarch's web site at monarchcasino.com.                                  

(1)  "EBITDA" consists of net income plus provision for income taxes, interest  
and stockholder guarantee fee expense, and depreciation and amortization.       
EBITDA should not be construed as an alternative to operating income (as        
determined in accordance with generally accepted accounting principles) as an   
indicator of the Company's operating performance, or as an alternative to cash  
flows from operating activities (as determined in accordance with generally     
accepted accounting principles) as a measure of liquidity.  This item enables   
comparison of the Company's performance with the performance of other           
companies that report EBITDA, although some companies do not calculate this     
measure in the same manner and therefore, the measure as presented may not be   
comparable to similarly titled measures presented by other companies.           

-5-       

MONARCH CASINO & RESORT, INC.   
CONDENSED CONSOLIDATED STATEMENTS OF INCOME 
(UNAUDITED) 

                                                        [Enlarge/Download Table]

                                             Three Months Ended           Nine Months Ended      
                                                September 30,                September 30,       
                                         --------------------------   -------------------------- 
                                             2005          2004           2005          2004     
                                         ------------  ------------   ------------  ------------ 
                                          (Unaudited)   (Unaudited)    (Unaudited)   (Unaudited) 
                                                                                                 
Revenues                                                                                         
  Casino................................ $ 25,397,320  $ 22,642,767   $ 70,322,452  $ 63,490,456 
  Food and beverage.....................   10,164,356     9,689,843     28,595,670    27,956,559 
  Hotel.................................    7,296,627     7,021,432     18,668,109    18,974,036 
  Other.................................    1,272,052     1,066,081      3,460,808     2,874,923 
                                         ------------  ------------   ------------  ------------ 
     Gross revenues.....................   44,130,355    40,420,123    121,047,039   113,295,974 
  Less promotional allowances...........   (5,782,463)   (5,359,370)   (16,154,058)  (15,035,242)
                                         ------------  ------------   ------------  ------------ 
     Net revenues.......................   38,347,892    35,060,753    104,892,981    98,260,732 
                                         ------------  ------------   ------------  ------------ 
Operating expenses                                                                               
  Casino................................    8,189,181     7,870,607     23,676,274    22,977,956 
  Food and beverage.....................    4,862,299     4,912,576     14,030,259    14,122,051 
  Hotel.................................    2,024,190     1,949,466      5,863,026     6,006,341 
  Other.................................      354,625       352,855        999,689     1,047,509 
  Selling, general, and administrative..    9,640,312     9,117,102     28,222,479    25,972,178 
  Gaming development expense............       13,382            -         274,090            -  
  Depreciation and amortization.........    2,113,060     2,047,706      6,251,172     7,687,196 
                                         ------------  ------------   ------------  ------------ 
     Total operating expenses...........   27,197,049    26,250,312     79,316,989    77,813,231 
                                         ------------  ------------   ------------  ------------ 
     Income from operations.............   11,150,843     8,810,441     25,575,992    20,447,501 

Other expense                                                                                    
  Interest expense......................     (301,629)     (333,483)      (890,966)   (1,125,121)
  Stockholder guarantee fee expense.....           -             -              -       (136,164)
                                         ------------  ------------   ------------  ------------ 
     Total other expense................     (301,629)     (333,483)      (890,966)   (1,261,285)
                                         ------------  ------------   ------------  ------------ 
     Income before income taxes.........   10,849,214     8,476,958     24,685,026    19,186,216 
Provision for income taxes..............    3,762,000     2,924,520      8,550,000     6,523,520 
                                         ------------  ------------   ------------  ------------ 
     Net income.........................  $ 7,087,214  $  5,552,438    $16,135,026  $ 12,662,696 
                                         ============  ============   ============  ============ 

  Earnings per share of common stock                                                             
   Net income                                                                                    
    Basic...............................  $      0.38  $       0.30    $      0.86  $       0.68 
    Diluted.............................  $      0.37  $       0.30    $      0.85  $       0.67 
  Weighted average number of common                                                              
    shares and potential common                                                                  
    shares outstanding                                                                           
      Basic.............................   18,867,748    18,777,844     18,840,034    18,737,648 
      Diluted...........................   19,103,711    18,817,744     19,082,667    18,794,422 

-6-   

MONARCH CASINO & RESORT, INC.   
CONDENSED CONSOLIDATED BALANCE SHEETS   

                                                                [Download Table]

                                                   September 30,   December 31,  
                                                       2005            2004      
                                                   -------------   ------------- 
                                                    (Unaudited)                  
                                                                                 
                      ASSETS                                                     

Current assets                                                                   
  Cash............................................ $  10,933,455   $  11,814,778 
  Receivables, net................................     2,985,691       2,959,894 
  Federal income tax refund receivable............            -          493,797 
  Inventories.....................................     1,277,645       1,452,696 
  Prepaid expenses................................     2,515,396       2,346,242 
  Deferred income taxes...........................     1,115,719       1,115,719 
                                                   -------------   ------------- 
     Total current assets.........................    18,827,906      20,183,126 
                                                   -------------   ------------- 
Property and equipment                                                           
  Land............................................    10,339,530      10,339,530 
  Land improvements...............................     3,166,106       3,226,913 
  Buildings.......................................    78,955,538      78,955,538 
  Building improvements...........................    10,269,844       7,524,680 
  Furniture and equipment.........................    66,686,391      65,146,594 
  Leasehold improvement...........................     1,346,965       1,346,965 
                                                   -------------   ------------- 
                                                     170,764,374     166,540,220 
  Less accumulated depreciation and amortization..   (74,114,213)    (68,791,045)
                                                   -------------   ------------- 
     Net property and equipment...................    96,650,161      97,749,175 
                                                   -------------   ------------- 
Other assets, net.................................       269,524         406,620 
                                                   -------------   ------------- 
     Total assets................................. $ 115,747,591   $ 118,338,921 
                                                   =============   ============= 

       LIABILITIES AND STOCKHOLDERS' EQUITY                                      
Current liabilities                                                              
  Current maturities of long-term debt............ $          -    $          -  
  Accounts payable................................     7,351,459       5,747,775 
  Accrued expenses................................     6,782,698       7,918,299 
  Federal income taxes payable....................     1,207,203              -  
                                                   -------------   ------------- 
     Total current liabilities....................    15,341,360      13,666,074 

Long-term debt, less current maturities...........    11,900,000      32,400,000 
Deferred income taxes.............................     6,035,507       6,509,505 

Commitments and contingencies.....................                               

Stockholders' equity                                                             
  Preferred stock, $.01 par value, 10,000,000                                    
   shares authorized; none issued.................            -               -  
  Common stock, $.005 par value, 30,000,000                                      
   shares authorized; 19,072,550 shares issued;                                  
   18,868,146 outstanding at 09/30/2005,                                         
   18,812,448 outstanding at 12/31/2004...........        95,363          95,363 
  Additional paid-in capital......................    17,831,307      17,463,272 
  Treasury stock,                                                                
   204,404 shares at 09/30/2005, 260,102 shares                                  
   at 12/31/2004, at cost.........................      (749,831)       (954,152)
  Retained earnings...............................    65,293,885      49,158,859 
                                                   -------------   ------------- 
     Total stockholders' equity...................    82,470,724      65,763,342 
                                                   -------------   ------------- 
     Total liabilities and stockholders' equity... $ 115,747,591   $ 118,338,921 
                                                   =============   ============= 

-7-   

MONARCH CASINO & RESORT, INC.   
RECONCILIATION OF NET INCOME TO EBITDA (1)  

                                                        [Enlarge/Download Table]

                                       Three Months Ended        Nine Months Ended    
                                          September 30,            September 30,      
                                     -----------------------  ------------------------
                                        2005        2004         2005         2004    
                                     (unaudited) (unaudited)  (unaudited)  (unaudited)
                                     ----------- -----------  -----------  -----------
                                                                                      
Net income.........................  $ 7,087,214 $ 5,552,438  $16,135,026  $12,662,696
Adjustments:                                                                          
  Provision for income taxes.......    3,762,000   2,924,520    8,550,000    6,523,520
  Stockholder guarantee fee expense           -           -            -       136,164
  Interest expense.................      301,629     333,483      890,966    1,125,121
  Depreciation and amortization....    2,113,060   2,047,706    6,251,172    7,687,196
                                     ----------- -----------  -----------  -----------
EBITDA (1)                           $13,263,903 $10,858,147  $13,827,164  $28,134,697
                                     =========== ===========  ===========  ===========

(1)  "EBITDA" consists of net income plus provision for income taxes, interest  
and stockholder guarantee fee expense, and depreciation and amortization.       
EBITDA should not be construed as an alternative to operating income (as        
determined in accordance with generally accepted accounting principles) as an   
indicator of the Company's operating performance, or as an alternative to cash  
flows from operating activities (as determined in accordance with generally     
accepted accounting principles) as a measure of liquidity.  This item enables   
comparison of the Company's performance with the performance of other           
companies that report EBITDA, although some companies do not calculate this     
measure in the same manner and therefore, the measure as presented may not be   
comparable to similarly titled measures presented by other companies.           

-8-   

Dates Referenced Herein   and   Documents Incorporated by Reference

This ‘8-K’ Filing		Date		Other Filings
Filed as of:		10/28/05
Filed on:		10/27/05
For Period End:		10/25/05
		9/30/05		10-Q
		12/31/04		10-K,  DEF 14A
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