Monarch Casino & Resort, Inc. · NASDAQ:MCRI
Monarch Casino & Resort — Investor Presentation (October 2017)
31 slides from Monarch Casino & Resort's investor presentation, October 2017
Slide 1: Investor Presentation
Investor Presentation October 2017
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,” “
Slide 3: Company Overview
S45 MONARCH CASINO & RESORT, INC Company Overview
Slide 4: Summary
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 management with strong o
Slide 5: Regional Summary
Regional Summary Reno, NV Atlantis has been continually 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 Black
Slide 6: Historic Milestones
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 Riviera 142 rooms and a
Slide 7: Positive Market Characteristics for the Reno Market
Positive Market Characteristics for the Reno Market Wall Street Journal– “Housing Crunch Threatens Reno’s Tech Boom” “Since 2012, about 30,000 jobs have been created in the Reno metro area, according to the Economic Development Authority of Western Nevada, with another 30,000 expected by the end of
Slide 8: Positive Market Characteristics for the Denver Market
Positive Market Characteristics for the Denver Market Denver Business Journal – “Metro Denver Unemployment Rate Drops to 2.4 Percent” “Metro Denver's unadjusted unemployment rate dropped to 2.4 percent in March, down from 3.6 percent one year ago.” – April 21, 2017 US News and World Report – “Attrac
Slide 9: Atlantis Casino Resort Spa
Atlantis Casino Resort Spa
Slide 10: Property Overview
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 #1 Reno resort; boasts #1
Slide 11: Positioned Near More Affluent South Reno Communities
Positioned Near More Affluent South Reno Communities Ideal location in heart of south Reno’s restaurant, shopping and convention district ~3 miles south of downtown in more affluent area ~3 miles from Reno-Tahoe International Airport Close to Reno’s main north/south artery, Highway 395 ~40
Slide 12: Reno Market Growth Drivers
Reno Market Growth Drivers Reno’s economy historically centered on gaming and entertainment but is more recently diversifying to a broader base including the healthcare, manufacturing and technology industries as well as a variety of entrepreneurial startups Tesla Motors announced the constructi
Slide 13: Atlantis Casino Market Share
Atlantis Casino Market Share Over the last 20 years, Atlantis has continued to outperform the 300% 17% greater Reno-Sparks market by 14.9% Indexed gaming revenue (1996=0%) focusing on providing best-in- 250% 15% class experiences, amenities, and service 200% 13% MCRI market share 150% 11% Since
Slide 14: Monarch Casino Black Hawk
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Slide 15: Property Overview
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 ~755 slots and 14 tables Buffet restaurant and snack bar Par
Slide 16: Property Location
Property Location ~35 miles west of Denver, ~35 miles southwest of Boulder, ~20 miles west of Golden and ~77 miles east of Vail Property is strategically located at the entrance to Main Street, Black Hawk’s primary access road and Black Hawk casino district First property encountered by visito
Slide 17: Black Hawk Gaming Market
Black Hawk Gaming Market 15 casinos Property Level Detail 7,065 slot machines Property Location Slots1 Tables1 Rooms2 Ameristar (PNK) Black Hawk 1,188 40 536 155 table games Isle of Capri (ERI) Black Hawk 982 25 238 The Lodge (JACENT) Black Hawk 972 25 50 Only four casinos offer more Monarch
Slide 18: Monarch Black Hawk Market Share
Monarch Black Hawk Market Share Monarch Casino Black Hawk MCRI and Black Hawk Indexed Gaming Revenue Growth market share has increased since 70% 13.0% the acquisition Indexed gaming revenue (2012 Q1=0%) 12.5% 60% 12.5% Black Hawk 12.0% MCRI market share (TTM) construction Market share (TTM) incr
Slide 19: Rationale for Further Investment in 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 Third largest supplier of air
Slide 20: Black Hawk Market Underserved by Hotel Rooms
Black Hawk Market Underserved by Hotel Rooms 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 worldwide S
Slide 21: Black Hawk Total Gaming Revenue
Black Hawk Total Gaming Revenue Black Hawk Market Performance $700 $650 Annual revenue ($ in millions) $610 $609 $596 $600 $581 $554 $24 $559 $559 $561 $551 $553 $550 $532 $22 $530 $524 $524 $85 $87 $22 $80 $20 $506 $21 $509 $61 $65 $500 $19 $44 $62 $66 $70 $478 $25 $19 $557 $533 $524 $523 $505 $503
Slide 22: Ameristar Black Hawk Case Study
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 $21.9 $20 $10 $6.7 $1.0 $0 2
Slide 23: Existing Facility Upgrades
Existing Facility Upgrades Original Cabaret Stage Phase 1 Phase 2 Phase 3 23
Slide 24: Hotel Tower/Casino Expansion
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 February 2017 Project to include: 23-story tower with approximately 500 hotel rooms Nearly double the
Slide 25: Hotel Tower/Casino Expansion
Hotel Tower/Casino Expansion Current Facility Expansion Rendering New Parking Structure Hotel Tower/Casino Expansion: Current Progress 25
Slide 26: Hotel Tower/Casino Expansion
Hotel Tower/Casino Expansion South View Rendering Exterior Pool Rendering Interior Pool Rendering 26
Slide 27: Monarch Consolidated Results
Monarch Consolidated Results
Slide 28: Income Statement
Income Statement $250 30% Black Hawk acquired 04/26/12 25% $200 20% $150 $ in millions 15% $100 10% $50 5% $0 0% 2010 2011 2012 2013 2014 2015 2016 2017 Q2 LTM Net Revenue $136.4 $134.5 $163.3 $188.7 $187.8 $202.2 $217.0 $224.3 Adj. EBITDA $29.5 $29.3 $36.2 $48.5 $43.5 $50.0 $55.7 $58.9 EBITDA Margi
Slide 29: Strong Balance Sheet
Strong Balance Sheet Total Debt Leverage Ratio $90 2.5x $81.1 2.2x $80 Total Debt/LTM Adjusted EBITDA 2.0x 1.9x $70 $60 $53.8 $48.5 1.5x $ in millions $50 $46.3 $40.9 1.1x 1.1x $40 1.0x 1.0x $28.6 0.8x 0.8x $30 $24.7 $26.2 $26.2 $20 0.5x 0.4x 0.5x $10 $0 0.0x 2009 2010 2011 2012 2013 2014 2015 2016
Slide 30: Conclusion
og MONARCH CASINO & RESORT, INC en a i Conclusion
Slide 31: Summary
Summary Optimally positioned in two of the most robust macro economic markets in the country Monarch has upgraded and expanded Atlantis through more than $95 million of investment over the last few years Property requires minimal forward maintenance capex Strong Black Hawk results despite co
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