Quarterly report

Monarch posts record Q1 results driven by Colorado venue expansion; market share growth

Monarch Casino Resort in Black Hawk, Colorado.
2022-04-21
United States
Reading time 2:36 min

Reno-based casino company Monarch Casino & Resort, which operates Reno’s Atlantis Casino Resort and the Monarch Casino Resort in Black Hawk, Colorado, has reported record first-quarter financial results. The business posted a net income of $18.1 million on revenue of $108.2 million for the period ended March 31 this year.

“Fiscal year 2022 is off to a strong start as we benefited from the full scope of operations at our newly expanded Monarch Black Hawk and the continued growth of market share at both properties,” commented John Farahi, Co-Chairman and Chief Executive Officer of Monarch. Net income and revenue figures are 122.2% and 44.5% up, respectively, from the previous year.

Additionally, first-quarter results also benefited from what the executive calls “healthy overall macroeconomic trends,” although he conceded labor market pressure and rising inflation could impact further near-term margins.

“Our teams continue to manage expenses effectively as we re-invest in our properties and grow our business,” added Farahi. “We believe that our financial results demonstrate our operational excellence and confirm that our investment in Monarch Black Hawk is delivering exceptional returns.”



Monarch Black Hawk

Net revenue and Adjusted EBITDA of $108.3 million and $34.3 million, respectively, were both first-quarter records for the company, as was the Adjusted EBITDA margin of 31.7%. “As we look to the balance of 2022, we intend to build on our strong operating performance in Q1, which traditionally is the slowest quarter of the year for us and for our markets,” said the CEO.

The company completed its master plan expansion at Monarch Black Hawk during this period, with the opening of Bistro Mariposa, a dining venue offering “elevated Southwest cuisine.” The resort continues to gain significant market share, particularly from the upper segment of the market, the business said.

The Black Hawk venue also benefited from the elimination of betting limits in Colorado in May 2021, and the additional table games variety. This has led the property’s table games revenue to continue to increase “significantly.”

“Our efforts to grow revenue and adjusted EBITDA at Monarch Black Hawk have only just begun and we are excited for the long-term growth opportunity of this property,” noted Farahi, while underlying the company also has ambitious plans in place for its home market of Reno.



Atlantis Casino Resort in Reno

While the company describes underlying market trends in the Nevada city as remaining competitive, Monarch has continued to invest in its Atlantis property “to ensure it remains at the pinnacle of Reno casino resort offerings.”

Given these improvements in place, Atlantis’ first quarter financial results were impacted by construction work on the redesign and upgrade of approximately 20% of the room inventory at the venue. The project remains on schedule, and is currently expected to be completed by the end of the second quarter of the current year.

“We continue to evaluate potential acquisitions where we can fully leverage our development and operating expertise to drive long-term value for our stockholders,” concluded Farahi. “Our future remains bright and we look forward to what promises to be an exciting 2022.” Monarch shares closed up $2.27, 2.5%, to $93.08 a share on Wednesday.

The company’s Atlantis property features 61,000 square feet of casino space, 818 guest rooms and suites, eight food outlets, a 30,000 square foot health spa and salon, two retail outlets, an 8,000 square-foot family center, and about 52,000 square feet of convention space. It features about 1,400 slot and video poker machines, 37 table games, a sportsbook and a poker room.

Meanwhile, the Monarch Black Hawk features about 60,000 square feet of casino space, more than 1,000 slot machines, about 40 table games, a live poker room and a sportsbook. It also includes 10 bars and lounges and five dining options; and offers 516 guest rooms and suites, meeting space, a retail store, a concierge lounge and a spa and pool facility.

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