Monarch Casino & Resort, Inc. · NASDAQ:MCRI
Monarch Casino & Resort — Investor Presentation (August 2017)
31 slides from Monarch Casino & Resort's investor presentation, August 2017
Slide 1: Investor Presentation August 2017
Investor Presentation Atlantis Casino Resort Spa in Reno, NV Monarch Casino in Black Hawk, CO August 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: 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
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
Slide 5: Company Overview: Regional Summary
Company Overview 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 re
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
Slide 7: Positive Market Characteristics for the Reno Market
Company Overview 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 expect
Slide 8: Positive Market Characteristics for the Denver Market
Company Overview 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
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
Slide 10: Atlantis Property Overview
Atlantis Casino Resort Spa Property Overview Award-winning facility with recent awards and recognition Forbes – Most Trustworthy Companies and America’s Best Midsize Employers USA Today Travel - #1 casino outside Las Vegas AAA - “Four Diamond” rating Forbes - Four-Star Award for Spa Atlant
Slide 11: Positioned Near More Affluent South Reno Neighborhoods
Atlantis Casino Resort Spa Positioned Near More Affluent South Reno Neighborhoods 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 South Virginia Street provides opportunity for fut
Slide 12: Reno Growth Drivers
Atlantis Casino Resort Spa Reno 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 anno
Slide 13: Atlantis Casino Market Share
Atlantis Casino Resort Spa Atlantis Casino Market Share Over the last 20 years, 300% 17% Atlantis has continued to outperform the 14.9% Indexed gaming revenue (1996=0%) greater Reno-Sparks 250% 15% market by focusing on providing best-in-class 200% 13% MCRI market share experiences, amenities, and
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
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 1,350 space garage opened in Q4 2016 Broke ground on hotel tower and casino expansion in February 2017 Property Amenities 32,000 square foot casino wit
Slide 16: Black Hawk 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
Slide 17: Black Hawk Gaming Market
Monarch Casino Black Hawk Black Hawk Gaming Market 15 casinos Property Level Detail 7,081 slot machines Property Location Slots1 Tables1 Rooms2 Ameristar (PNK) Black Hawk 1,188 40 536 151 table games Isle of Capri (ERI) Black Hawk 1,011 27 238 Only four casinos offer more than The Lodge (JAC
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 70% 13.0% Indexed gaming revenue (2012 Q1=0%) Black Hawk 12.5% 60% construction 12.5% Market share (TTM) increase
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
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
Slide 21: Black Hawk Market Performance
Monarch Casino Black Hawk 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 $55
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
Slide 23: Existing Facility Upgrade
Monarch Casino Black Hawk Existing Facility Upgrade Original Cabaret Stage Phase 1 Phase 2 Phase 3 23
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 February 2017 Project to include: 23-story tower wi
Slide 25: Hotel Tower/Casino Expansion: Current Progress
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
Slide 26: South View and Pool Renderings
Monarch Casino Black Hawk New Parking Structure and Hotel Tower/Casino Expansion South View Rendering Exterior Pool Rendering Interior Pool Rendering 26
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
Slide 28: Consolidated Results: Income Statement
Monarch Consolidated Results 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 $
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 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 20
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
Slide 31: Conclusion Summary
Conclusion 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
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