Monarch Casino & Resort, Inc. · NASDAQ:MCRI

Monarch Casino & Resort — Investor Presentation (March 2017)

31 slides from Monarch Casino & Resort's investor presentation, March 2017

  1. Slide 1: Investor Presentation March 2017

    Investor Presentation Atlantis Casino Resort Spa in Reno, NV Monarch Casino in Black Hawk, CO March 2017

  2. Slide 2: Forward-Looking Information

    Forward-Looking Information This presentation contains certain forward-looking information that generally can be identified by the context of the statement or the use of forward-looking terminology, such as “believes,” “estimates,” “anticipates,” “intends,” “expects,” “plans,” “is confident that,” “

  3. Slide 3: Table of Contents

    Table of Contents 1) Company Overview 2) Atlantis Casino Resort Spa 3) Monarch Casino Black Hawk 4) Monarch Consolidated Results 5) Conclusion 3

  4. Slide 4: Company Overview Summary

    Company Overview Summary  Excellent economic fundamentals in both Reno and Black Hawk markets  Significant and diverse business investment in Reno  Denver economy is among the nation’s strongest  Monarch’s properties have the premier locations in both markets  Hands-on, results-oriented managem

  5. Slide 5: Regional Summary

    Company Overview Regional Summary Reno, NV  Atlantis has been upgraded and expanded in recent years  Investment of over $95 million completed in 2009  Toucan Charlie’s Buffet recently redesigned and upgraded  Added 300 new surface parking spaces  Minimal forward maintenance capex requirements B

  6. Slide 6: Historic Milestones

    Company Overview Historic Milestones 1970s 1980s 1990s 2000s 2010s 1972: Golden Door Motel 1993: Initial stock offering raises Phase IV - Atlantis Acquisition of Riviera Black Hawk purchased by the Farahi family: $17mm of expansion capital 2008 Q2: When the most recent 2012 Q2: Acquisition of Rivier

  7. Slide 7: Positive Market Characteristics for the Reno Market

    Company Overview Positive Market Characteristics for the Reno Market Reno Gazette-Journal – “Switch: Largest Data Center Building in World Opens Near Reno” “The new Tahoe Reno 1 building is part of a grander plan to build the biggest data center campus in the world. First announced as the SuperNAP T

  8. Slide 8: Positive Market Characteristics for the Denver Market

    Company Overview Positive Market Characteristics for the Denver Market US News and World Report – “Attracting Young, Skilled Workers Drives a State’s Economic Growth” “The inflow of people and companies to Denver – and, more broadly, the state of Colorado – in recent years has been a boon to the Cen

  9. Slide 9: Table of Contents

    Table of Contents 1) Company Overview 2) Atlantis Casino Resort Spa 3) Monarch Casino Black Hawk 4) Monarch Consolidated Results 5) Conclusion 9

  10. Slide 10: Atlantis Casino Resort Spa Property Overview

    Atlantis Casino Resort Spa Property Overview  Opened in 1991  Fresh, award-winning facility  USA Today Travel - #1 casino outside Las Vegas  AAA - “Four Diamond” rating  Forbes - Four-Star Award for Spa Atlantis  Only venue in Northern Nevada with this rating TripAdvisor - Consistently rated

  11. Slide 11: Positioned Near More Affluent South Reno Communities

    Atlantis Casino Resort Spa Positioned Near More Affluent South Reno Communities  Located ~3 miles south of downtown in the generally more affluent area of Reno and ~3 miles from Reno- Tahoe International Airport  ~40 acres covering both sides of S. Virginia St. provides opportunity for future deve

  12. Slide 12: Reno Growth Drivers

    Atlantis Casino Resort Spa Reno Growth Drivers  Reno’s economy was historically centered on gaming and entertainment but has recently diversified to a broader base including the healthcare, manufacturing and technology industries as well as a variety of entrepreneurial startups  Tesla Motors annou

  13. Slide 13: Atlantis Casino Market Share

    Atlantis Casino Resort Spa Atlantis Casino Market Share  Over the last 18 years, 300% 17% Atlantis has continued to outperform the 250% 14.5% 15% Indexed gaming revenue (1996=0%) greater Reno-Sparks market by focusing on 200% 13% MCRI market share providing best-in-class experiences, 150% 11% ameni

  14. Slide 14: Table of Contents

    Table of Contents 1) Company Overview 2) Atlantis Casino Resort Spa 3) Monarch Casino Black Hawk 4) Monarch Consolidated Results 5) Conclusion 14

  15. Slide 15: Monarch Casino Black Hawk Property Overview

    Monarch Casino Black Hawk Property Overview  Acquired in April 2012  Existing facility redesigned and upgraded from June 2012 to August 2015  Broke ground on hotel tower and casino expansion in January 2017 Property Amenities  32,000 square foot casino with ~732 slots and 14 tables  Buffet rest

  16. Slide 16: Property Location

    Monarch Casino Black Hawk Property Location  Black Hawk, CO is located ~35 miles west of Denver (3.0 million people), ~35 miles southwest of Boulder, ~20 miles west of Golden and ~77 miles east of Vail  Monarch Black Hawk is strategically located at the entrance to Main Street, Black Hawk’s primar

  17. Slide 17: Black Hawk Gaming Market

    Monarch Casino Black Hawk Black Hawk Gaming Market  17 casinos Property Level Detail  7,528 slot machines Property Location Slots1 Tables1 Rooms2 Ameristar (PNK) Black Hawk 1,189 40 536  150 table games Isle of Capri (ISLE) Black Hawk 1,024 27 238  Only four casinos offer more than The Lodge (JA

  18. Slide 18: Black Hawk Market Share

    Monarch Casino Black Hawk Monarch Black Hawk Market Share  Monarch Casino Black Hawk market share has increased MCRI and Black Hawk Indexed Gaming Revenue Growth since the acquisition 50% 13.0% Indexed gaming revenue (2012 Q1=0%) Black Hawk 12.5%  Market share (TTM) increased 40% construction 12.2

  19. Slide 19: Rationale for Further Investment in Black Hawk

    Monarch Casino Black Hawk Rationale for Further Investment in Black Hawk  Denver metro area is an attractive target market  Population of more than 3 million  Household income in Denver MSA of $71,146 is 28% above national average  Top 20% of personal income growth among all MSAs in nation  Thi

  20. Slide 20: GGR per Hotel Room by Region

    Monarch Casino Black Hawk GGR per Hotel Room by Region 2016 Gross Gaming Revenue per Hotel Room $800 $747 $700 $617 $600 $500 $ in 000s $400 $300 $181 $200 $114 $100 $78 $62 $47 $43 $0 Black Hawk has the highest GGR per hotel room nationwide at $617K, and is second only to Macau GGR per hotel room w

  21. Slide 21: Black Hawk Market Performance

    Monarch Casino Black Hawk Black Hawk Total Gaming Revenue1 Black Hawk Market Performance $700 $650 $610 Annual revenue ($ in millions) $596 $600 $581 $24 $559 $559 $561 $554 $551 $553 $550 $532 $22 $524 $524 $530 $85 $22 $80 $20 $506 $21 $509 $61 $65 $500 $19 $44 $62 $66 $70 $478 $25 $19 $557 $533 $

  22. Slide 22: Ameristar Black Hawk Case Study

    Monarch Casino Black Hawk Ameristar Black Hawk Case Study Annual Adjusted EBITDA and Capital Spend for Ameristar Black Hawk1 $70 Casino Hotel Smoking Amendment remodel construction ban 50 begins commences & $58.8 $60 $56.0 Hotel opens $53.0 Adj EBITDA ($ in millions) $50 $40 $35.5 $28.8 $30 $20.9 $2

  23. Slide 23: Existing Facility Upgrade

    Monarch Casino Black Hawk Existing Facility Upgrade Original Cabaret Stage Phase 1 Phase 2 Phase 3 23

  24. Slide 24: New Parking Structure and Hotel Tower/Casino Expansion

    Monarch Casino Black Hawk New Parking Structure and Hotel Tower/Casino Expansion New Parking Structure  9-story garage now open  Increases on-site parking from ~500 spaces to ~1,500 spaces Hotel Tower/Casino Expansion  Groundbreaking held in January 2017  Project to include:  23-story tower wit

  25. Slide 25: New Parking Structure and Hotel Tower/Casino Expansion

    Monarch Casino Black Hawk New Parking Structure and Hotel Tower/Casino Expansion New Parking Structure Hotel Tower/Casino Expansion: Current Progress Current Facility Expansion Rendering 25

  26. Slide 26: New Parking Structure and Hotel Tower/Casino Expansion

    Monarch Casino Black Hawk New Parking Structure and Hotel Tower/Casino Expansion South View Rendering Exterior Pool Rendering Interior Pool Rendering 26

  27. Slide 27: Table of Contents

    Table of Contents 1) Company Overview 2) Atlantis Casino Resort Spa 3) Monarch Casino Black Hawk 4) Monarch Consolidated Results 5) Conclusion 27

  28. Slide 28: Consolidated Results Income Statement

    Monarch Consolidated Results Income Statement $250 27% Black Hawk acquired 26% 04/26/12 $200 25% 24% $150 $ in millions 23% $100 22% 21% $50 20% $0 19% 2010 2011 2012 2013 2014 2015 2016 Net Revenue $136.4 $134.5 $163.3 $188.7 $187.8 $202.2 $217.0 Adj. EBITDA $29.5 $29.3 $36.2 $48.5 $43.5 $50.0 $55.

  29. Slide 29: Strong Balance Sheet Position

    Monarch Consolidated Results Strong Balance Sheet Position Total Debt Leverage Ratio $90 2.5x $81.1 2.2x $80 2.0x 1.9x Total Debt/LTM Adjusted EBITDA $70 $60 $53.8 1.5x $ in millions $48.5 $50 $46.3 $40.9 1.1x 1.1x $40 1.0x 1.0x 0.8x 0.8x $28.6 $30 $26.2 $24.7 $20 0.5x 0.5x $10 $0 0.0x 2009 2010 201

  30. Slide 30: Table of Contents

    Table of Contents 1) Company Overview 2) Atlantis Casino Resort Spa 3) Monarch Casino Black Hawk 4) Monarch Consolidated Results 5) Conclusion 30

  31. Slide 31: Conclusion

    Conclusion Summary  Reno area attracting strong, diversified, long-term investment led by planned $5 billion Tesla battery factory  Monarch has upgraded and expanded Atlantis through more than $95 million of investment over the last few years  Property requires minimal forward maintenance capex 

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