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MONARCH CASINO & RESORT INC. ANNOUNCES RESULTS FOR THIRD QUARTER AND GROUND-BREAKING FOR HOTEL-CASINO EXPANSION

 RENO, Nev., Oct. 28 /PRNewswire/ -- Monarch Casino & Resort Inc. (NASDAQ-NMS: MCRI) ("Monarch") today announced results for the quarter and nine months ended Sept. 30, 1993. Net revenues for the first nine months of 1993 increased by 15 percent to $20.2 million from $17.6 million during the first nine months of 1992. Net revenues for the third quarter of 1993 increased by 17 percent to $7.5 million from $6.4 million during the third quarter of 1992. The company believes that the increased revenues are a result of the growing acceptance of the company's hotel-casino facility which resulted in increased casino revenues, primarily from a higher slot win per machine. In addition, the company experienced increased hotel and food and beverage revenues. Income from operations for the quarter ended Sept. 30, 1993, was $1,637,000, compared to $1,308,000 for the quarter ended Sept. 30, 1992, an increase of $329,000, or 25 percent. For the nine months ended Sept. 30, 1993, income from operations was $3,386,000, compared to $2,962,000 for the first nine months of 1992, an increase of $424,000, or 14 percent.
 For the quarter and nine months ended Sept. 30, 1993, the company recorded two one-time, non-cash charges against earnings totaling $771,000. The first charge of $576,000 is included in income tax expense and is due to termination of the company's S corporation status as part of the reorganization preceding the company's initial public offering in August 1993, and accounts for the deferred tax liability for temporary differences between financial and tax basis for property and equipment and other items. The second charge of $195,000 is included in interest expense and represents the write-off of deferred loan costs that were expensed in August 1993 in conjunction with the refinancing and conversion of an $18 million term loan to a $27 million reducing revolving credit facility.
 Net income for the quarter ended Sept. 30, 1993, after pro forma adjustments, excluding the one-time, non-cash charges of $771,000 was $951,000, or $0.11 per share. Net income after pro forma adjustments for the third quarter 1993 was $180,000, or $0.02 per share. This compares to net income after pro forma adjustments of $664,000, or $0.09 per share, for the third quarter ended Sept. 30, 1992. Net income after pro forma adjustments for the nine months ended Sept. 30, 1993, was $475,000, or $0.06 per share. This compares to net income after pro forma adjustments of $994,000, or $0.14 per share, for the nine months ended Sept. 30, 1992.
 Earnings before interest, taxes, depreciation and amortization (EBITDA) increased by $374,000 to $2,045,000, or $0.24 per share, for the third quarter ended Sept. 30, 1993, from $1,671,000, or $0.24 per share, for the third quarter ended Sept. 30, 1992. EBITDA for the first nine months of 1993 was $4,601,000, or $0.61 per share, compared to $4,001,000, or $0.56 per share, for the first nine months of 1992, an increase of $600,000 or 15 percent.
 Monarch also announced that it had broken ground on its $28 million hotel-casino expansion on Oct. 11, 1993. The current expansion includes a 283-room hotel tower addition, 12,000 square feet of additional casino space, including approximately 350 additional slot machines and an additional bar, an approximately 250-seat buffet restaurant, a 7,500-square-foot ballroom/convention/meeting room area and an approximately 8,000-square-foot family entertainment center and other amenities. Management estimates completion of the buffet restaurant and ballroom/convention/meeting room area by spring 1994 and the remainder of the expansion to be completed during the summer of 1994.
 Monarch Casino & Resort Inc., through its subsidiary, owns and operated the Clarion Hotel Casino in Reno.
 MONARCH CASINO & RESORT INC.
 Consolidated Balance Sheets
 Sept. 30, Dec. 31,
 1993 1992
 Assets
 Current Assets
 Cash $979,074 $990,196
 Receivables, net 174,720 159,372
 Inventories 197,383 164,373
 Prepaid expenses 620,939 647,614
 Total current assets 1,972,116 1,961,555
 Property and equipment, net 31,781,877 29,540,216
 Other assets 650,580 295,049
 Total $34,404,573 $31,796,820
 Liabilities and Stockholders'
 Equity
 Current Liabilities
 Current maturities of long-
 term obligations $796,522 $911,639
 Accounts payable 853,314 1,718,598
 Accrued expenses 1,295,438 1,030,566
 Total current liabilities 2,945,274 3,660,803
 Deferred income taxes 660,000 ---
 Long-term obligations, less
 current maturities 13,251,662 27,306,855
 Total long-term liabilities 13,911,662 27,306,855
 Stockholders' Equity 17,547,637 829,162
 Total $34,404,573 $31,796,820
 MONARCH CASINO & RESORT INC.
 Consolidated Statements of Operations
 (In thousands, except per share data)
 Quarter Ended Nine Months Ended
 Sept. 30, Sept. 30,
 1993 1992 1993 1992
 Net revenues $7,460 $6,383 $20,228 $17,627
 Operating expenses 5,823 5,075 16,842 14,665
 Income from
 operations 1,637 1,308 3,386 2,962
 Interest expense(a) (459) (569) (1,611) (1,743)
 Income before income
 tax provision and
 pro forma adjustments 1,178 739 1,775 1,219
 Income tax expense(b)(c) 838 --- 838 ---
 Income before pro forma
 adjustments 340 739 937 1,219
 Pro forma compensation
 adjustment (29) (75) (179) (225)
 Pro forma income tax
 adjustment (131) 0 (283) 0
 Net income after pro
 forma adjustments $180 $664 $475 $994
 Per share data(d):
 Income from operations $0.19 $0.18 $0.45 $0.42
 Income before pro
 forma adjustments $0.04 $0.10 $0.12 $0.17
 Net income after pro
 forma adjustments $0.02 $0.09 $0.06 $0.14
 Shares used in
 calculation 8,513 7,100 7,576 7,100
 Earnings before
 interest, taxes,
 depreciation and
 amortization (EBITDA) $2,045 $1,671 $4,601 $4,001
 EBITDA per share(d) $0.24 $0.24 $0.61 $0.56
 (a) Interest expense for the quarter and nine months ended Sept. 30, 1993, includes a one-time, non-cash charge of $195,000 for previously deferred loan costs that were expensed in August 1993 in conjunction with the conversion of a term loan to a $27 million revolving credit facility.
 (b) Income tax expenses for the quarter and nine months ended Sept. 30, 1993, includes a one-time, non-cash charge of $576,000 for deferred income taxes resulting from the August 1993 termination as an S corporation status.
 (c) Due to the availability of net operating loss carryforwards, there would have been no income tax liability for the periods through Dec. 31, 1992, had the entities been C corporations.
 (d) Based on a weighted average calculation of 7,100,000 shares outstanding prior to the initial public offering on Aug. 6, 1993, and the issuance of 2,436,275 additional shares sold subsequent to Aug. 6, 1993.
 -0- 10/28/93
 /CONTACT: Ben Farahi, co-chairman of the board and CFO, of Monarch Casino & Resort, 702-825-3355/
 (MCRI)


CO: Monarch Casino & Resort Inc. ST: Nevada IN: CNO SU: ERN

NY-EH -- SD001 -- 8109 10/28/93 16:06 EDT
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Date:Oct 28, 1993
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