Gaming News

Monarch Casino & Resort Results Up

RENO, Nevada -- (Press Release) -- Monarch Casino & Resort, Inc. (Nasdaq: MCRI) today announced record net income, earnings per share, casino revenues and net revenues for the third quarter ended September 30, 2003. Net income for the Company increased 5.7% to $3,665,814, or $0.39 per share (diluted), for the third quarter ended September 30, 2003, compared to $3,467,460, or $0.36 per share (diluted), for the third quarter ended September 30, 2002. The Company also reported casino revenues of $19,893,383 for the quarter, an increase of 4.8% over the $18,979,642 in the third quarter of 2002. The increase in casino revenues was partially attributable to an increase in slot machine win, as well as improved Keno and poker room revenues. Net revenues reached record highs for the 2003 third quarter, increasing 2.6% over last year's third quarter. Contributing to the record net revenues were increases in food and beverage (3.6%) and other (18.8%) revenue centers over the third quarter of 2002. Hotel revenues suffered a slight decrease of 1.3% in the third quarter ended September 30, 2003 as compared to the third quarter ended September 30, 2002. EBITDA (1), meanwhile, remained relatively unchanged in the third quarter ended September 30, 2003 as compared to the third quarter ended September 30, 2002, declining $36,376 from $8,834,010 in the 2002 third quarter to $8,797,634 in the 2003 third quarter.

John Farahi, Co-chairman and Chief Executive Officer of Monarch commented on the results: "Once again, we achieved record numbers despite continued tightness in the Reno market. This, I believe, speaks for the quality and location of our product as well as the strength of our management staff and the friendliness of our employees. We also continued our aggressive approach in reducing our debt load: we payed down our debt by $4.8 million during the third quarter of 2003, and by $11.9 million since December 31, 2002. Our record earnings were driven by a 35% reduction in interest and stockholder guarantee fee expenses over last year's third quarter. Our operating income was flat in the third quarter amid tightness in the local market and increased gaming taxes. This increase in the gaming tax rate took effect August 1, 2003, and had a $138 thousand impact on our bottom line." Mr. Farahi added, "we could not have achieved our results if not for the strong efforts of the entire Atlantis team and the continued loyalty of our guests."

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, which completed a $105 million expansion and renovation in August 2002. The Atlantis is recognizable due to its Sky Terrace, a unique structure rising approximately 55 feet from street level and spanning 160 feet across the 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. It 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 37 table games and approximately 1,500 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.

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