Monarch Casino and Resort has today reported record operating results for the fourth quarter and full year ended December 31, 2022.
Net revenue was up 8.5 per cent for the fourth quarter and up 20.9 per cent for the full year. Net income was up 12.9 per cent for Q4 and 27.7 per cent for 2022.
Net Income was negatively impacted by legal and consulting costs related to the ongoing litigation with the Monarch Black Hawk general contractor, PCL Construction Services.
The impact during the fourth quarter of 2022 and 2021 was $0.8m and $2.1m respectively and the impact during the 12 months of 2022 and 2021 was $7.3m and $5.1m respectively. John Farahi, co-chairman and CEO, commented: “Monarch ended a strong 2022 with record fourth quarter and fiscal year financial results. We continue to benefit from the ongoing ramp up of our expanded and enhanced Black Hawk property.
Net revenue and adjusted EBITDA growth of over 20 per cent in 2022 drove free cash flow to a record high, positioning Monarch to return capital to stockholders in the form of the one-time cash dividend and the recurring annual cash dividend to be paid quarterly.
"As of now, we have approximately $30m cash in the bank. We expect to pay the one-time dividend with the available cash, including additional cash generated from operations, with the remaining balance to be drawn from the new credit facility.
"Our strong balance sheet and free cash flow allows us to continue to invest in our existing operations, while we pursue potential M&A opportunities.
"Fourth quarter net revenue and Adjusted EBITDA grew to $120.5m and $41.6m respectively, resulting in an adjusted EBITDA margin of 34.5 per cent.
"We believe that these results demonstrate a healthy underlying trend in both our markets. Atlantis’ fourth quarter financial results were negatively impacted by severe rains in California and heavy snow in the Sierra Nevada mountains, which reduced visitation from our key feeder markets.
“In Black Hawk, we are gaining market share, especially in the upper end of the market. We are actively evaluating potential acquisitions and we are prepared to move aggressively for the right opportunity.”
