Monarch Casino & Resort, Inc. · NASDAQ:MCRI
Monarch Casino & Resort — Q4 2022 Earnings Presentation
27 slides from Monarch Casino & Resort's earnings presentation, March 2023
Slide 1: Investor Presentation
Investor Presentation March 2023
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: Monarch Casino & Resort, Inc. (MCRI) Highlights
Monarch Casino & Resort, Inc. (MCRI) Highlights Prime locations and assets • Atlantis Casino Resort Spa is in south Reno, a more affluent area three miles south of downtown, connected by a bridge to the Reno-Sparks Convention Center • Monarch Casino Resort Spa is the first property encountered by vi
Slide 4: Company History
Company History 2008 Phase IV – Atlantis • Expansion of the 2022 1994 1999 casino including: Atlantis 1991 Phase II - Atlantis Phase III - Atlantis • Large race and • ~61,000 square feet of Phase I – Atlantis • Second high-rise tower • Third high-rise tower sports book casino space • First high-rise
Slide 5: Atlantis Casino Resort Spa Reno
Atlantis Casino Resort Spa Reno
Slide 6: Atlantis Overview
Atlantis Overview Award-winning facility • AAA: “Four Diamond” rating • TripAdvisor (2023): Rated #1 Reno resort for 9 consecutive years with 4 of our restaurants ranked in the top 10 in the city • Forbes (2023): Four-Star Award for Spa Atlantis for 8 consecutive years (only four- star venue in Reno
Slide 7: Atlantis GGR Market Share
Atlantis GGR Market Share Atlantis Casino Resort Spa has consistently outperformed the 18% greater Reno-Sparks market for the last 26 years 16.4% 16% • Primary focus has always been providing best-in-class and best-in-market experiences, amenities, and service MCRI market share (TTM) 14% • Atlantis
Slide 8: Atlantis Hotel Occupancy and Cash ADR
Atlantis Hotel Occupancy and Cash ADR Total Occupancy Cash ADR1 90% 85% $160 $151 83% $149 $140 $140 80% $140 71% $122 70% 65% $118 64% $120 60% 53% $100 50% $80 40% $60 30% $40 20% 10% $20 0% $0 2020 2021 2022 2020 2021 2022 Atlantis Reno-Sparks Atlantis Reno-Sparks Return of leisure and group busi
Slide 9: Fast-Growing Reno Metro Market
Fast-Growing Reno Metro Market Population of ~500,000 • Reno’s population grew 17.0% from 2010 to 2021 (national average: 7.5%) • 2020 per capita personal income for the Reno metro area was 11% higher than the national average ($66,075 vs. $59,510) • Gaming environment remains extremely competitive
Slide 10: Atlantis' Prime Location
Silver Legacy Circus Circus Rail City Western Village Ramada Reno Atlantis’ Prime Location Downtown Nugget Eldorado Club Cal Neva Baldini’s Ideally located in the heart of south Reno’s restaurant, shopping Grand Sierra and convention district Boomtown Reno, Gold Dust West & • ~3 miles south of downt
Slide 11: Monarch Casino Resort Spa Black Hawk
Monarch Casino Resort Spa Black Hawk
Slide 12: Monarch Black Hawk Overview
Monarch Black Hawk Overview Amenities include: • 23-story luxurious tower with 516 hotel rooms (20% suites) • ~60,000 square foot casino • ~1,100 slot machines • ~43 table games • 14 poker tables • Keno • Company managed sports book, lounge and bar • World-class spa and pool facility on the top floo
Slide 13: Slide 13
Slide 14: Monarch GGR Market Share
Monarch GGR Market Share1 Monarch Casino Resort Spa has consistently grown market share 30% 27.6% over the past eight years • 2022 market share was an all-time record at 27.6% 25% • Represents an increase of 1,960 basis points compared to market share of 8.0% at MCRI market share (TTM) the time of t
Slide 15: Black Hawk-Central City Market
50-mile radius Black Hawk-Central City Market Market consists of: • 21 casinos • 7,885 slot machines Boulder • 168 table games • 49 poker tables • 1,651 hotel rooms spread across seven gaming facilities Black Hawk Denver Population of ~3 million within a 50-mile radius of Black Hawk • The Denver met
Slide 16: Prime Property Location
Slot count Z Casino > 600 300 to 600 Sasquatch Bull Durham < 300 Prime Property Location Saratoga Gilpin Wild Card Saloon Red Dolly Ameristar First property encountered by visitors arriving from Denver and Monarch The Lodge Casino Resort other major population centers via Highway 119 Bally’s North S
Slide 17: Denver Metro Area Provides Significant Air Traffic to Las Vegas
Denver Metro Area Provides Significant Air Traffic to Las Vegas Top Las Vegas Feeder Markets (2021 Originating Passengers in Thousands) 1,400 1,200 1,164 1,000 893 782 800 671 608 599 600 533 530 504 423 400 200 0 Los Angeles San Francisco Chicago Dallas New York Seattle Denver Atlanta Houston Detro
Slide 18: Growth Initiatives
Growth Initiatives
Slide 19: Sports Betting
Sports Betting Company owns and operates its sports book • Atlantis Race and Sports mobile app launched in Nevada in 2015 • BetMonarch mobile app launched in Colorado in May 2020 • Low operating cost structure and existing player database allowed BetMonarch to achieve growth and profitability in its
Slide 20: Organic Growth Opportunities
Organic Growth Opportunities Monarch Casino Resort Spa • Table games ramp continues following Colorado’s elimination of betting limits, and the addition of new table game types in mid-2021 • Ongoing penetration of the VIP market in the Front Range Atlantis Casino Resort Spa • Ongoing capital investm
Slide 21: Inorganic Growth Opportunities
Inorganic Growth Opportunities Substantial free cash flow generation following the completion of the Black Hawk development Company continually evaluates potential M&A with a focus on: • Leveraging development expertise and operational excellence to maximize ROI • Key criteria for target markets is
Slide 22: Financial Results
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Slide 23: Historical Financial Performance
Historical Financial Performance $600 40% Acquired Colorado Monarch Black Hawk gaming license starts phased opening April 2012 November 2020 35% $500 30% $400 25% $ in millions $300 20% 15% $200 10% $100 5% $0 0% 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Net Revenue $134
Slide 24: Historical Net Leverage Ratio
Historical Net Leverage Ratio Net Leverage Ratio 4.0x 3.5x 3.5x 3.0x Total Net Debt/LTM Adjusted EBITDA1 2.5x 2.2x 2.0x 1.7x 1.5x 1.3x 1.1x 1.0x 0.7x 0.5x 0.6x 0.5x 0.4x 0.4x 0.4x 0.0x 0.0x -0.1x -0.2x -0.5x 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Source: Monarch Casino
Slide 25: Income Statement Overview
Income Statement Overview Three Months Ended Twelve Months Ended December 31, December 31, $ in 000s, except per share data 2022 2021 Increase 2022 2021 Increase and percentages Net revenue $120,536 $111,068 8.5% $477,870 $395,377 20.9% Net income(1) $22,433 $19,871 12.9% $87,479 $68,488 27.7% Adjus
Slide 26: Balance Sheet Overview
Balance Sheet Overview $ in 000s December 31, 2022 December 31, 2021 No borrowings outstanding under $70 million Revolving Credit Facility Cash and cash equivalents $38,779 $33,526 In February 2023, Company entered into Fifth Net property and equipment 578,050 580,807 Amended and Restated Credit Agr
Slide 27: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation Three Months Ended Twelve Months Ended December 31, December 31, $ in 000s 2022 2021 2022 2021 Net income $22,433 $19,871 $87,479 $68,488 Expenses: Stock based compensation 1,653 961 5,095 4,060 Depreciation and amortization 11,188 10,120 43,433 38,428 Provision for in
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