Monarch Casino & Resort, Inc. · NASDAQ:MCRI
Monarch Casino & Resort — Shareholder Meeting (May 2024)
28 slides from Monarch Casino & Resort's shareholder meeting presentation, May 21, 2024
Slide 1: Annual Stockholders' Meeting
Annual Stockholders’ Meeting May 21, 2024
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) Property Highlights
Monarch Casino & Resort, Inc. (MCRI) Property Highlights Prime locations and assets • Atlantis Casino Resort Spa is located in south Reno, three miles south of downtown, a more affluent area, and connected by a bridge to the Reno-Sparks Convention Center • Monarch Casino Resort Spa is the first prop
Slide 4: Company History
Company History 2008 Phase IV – Atlantis • Expansion of the 2023 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 for 13th consecutive year • TripAdvisor (2024): Rated #1 Reno resort for 9 consecutive years with 4 of our restaurants consistently ranked in the city’s top 10 (out of more than 1,100) • Forbes (2024): Four-Star Award for Spa Atla
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 27 years 15.9% 16% • Primary focus has always been providing best-in-class and best-in-market experiences, amenities, and service MCRI market share (TTM) 14% Property en
Slide 8: Atlantis Hotel Occupancy and Cash ADR
Atlantis Hotel Occupancy and Cash ADR Total Occupancy Cash ADR1 90% 85% 86% $180 84% $158 80% $160 $151 $152 $152 $153 $149 70% 65% 65% $140 64% 60% $120 50% $100 40% $80 30% $60 20% $40 10% $20 0% $0 2022 2023 1Q24 LTM 2022 2023 1Q24 LTM Atlantis Reno-Sparks Atlantis Reno-Sparks Hotel occupancy rat
Slide 9: Fast-Growing Reno Metro Market
Fast-Growing Reno Metro Market Washoe County Population of ~500,000 • Reno-Sparks population grew 2.4% from 2020 to 2023 (national average: 1.0%) • 2022 per capita personal income for the Reno metro area was 19% higher than the national average ($78,077 vs. $65,471) • Gaming environment remains extr
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 & J • ~3 miles south of dow
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 • ~1,050 slot machines • ~43 table games • 16 poker tables • Keno • Company managed retail and online sports book • World-class spa and pool facility on the top fl
Slide 13: Slide 13
Slide 14: Monarch GGR Market Share
Monarch GGR Market Share1 35% 30.4% Monarch Casino Resort Spa has consistently grown market share 30% over the past nine years 25% MCRI market share (TTM) 20% Market share growth has been driven by the end-to-end transformation of the property 15% • Market share gains accelerated in 4Q20 when the fi
Slide 15: Black Hawk-Central City Market
50-mile radius Black Hawk-Central City Market Market consists of: • ~21 casinos • ~7,641 slot machines Boulder • ~182 table games • ~50 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 Vail • Popu
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 (2022 Originating Passengers in Thousands) 2,000 1,800 1,754 1,600 1,400 1,281 1,200 1,000 821 800 755 723 683 644 600 533 486 480 400 200 0 Los Angeles San Francisco New York Chicago Dallas Seattle Denver H
Slide 18: Growth Initiatives
Growth Initiatives
Slide 19: Sports Betting
Sports Betting Company owns and operates its sports books • 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 it
Slide 20: Organic Growth Opportunities
Organic Growth Opportunities Monarch Casino Resort Spa • Colorado’s regulation that eliminated betting limits has created an opportunity for additional expansion of the VIP market in the Front Range Atlantis Casino Resort Spa • Ongoing capital investments at the property to maintain competitive adva
Slide 21: Other Growth Opportunities
Other 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 regu
Slide 22: Financial Results
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Slide 23: Historical Financial Performance
Historical Financial Performance $600 Acquired Colorado Monarch Black Hawk 40% 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% 1Q24 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 LTM Net
Slide 24: Historical Net Leverage Ratio
Historical Net Leverage Ratio Net Leverage Ratio 4.0x 3.5x 3.5x Total Net Debt/LTM Adjusted EBITDA1 3.0x 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 -0.2x -0.2x -0.5x 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 1Q24
Slide 25: Income Statement Overview
Income Statement Overview Three Months Ended March 31, $ in 000s, except per share data 2024 2023 Increase and percentages Net revenue $121,657 $116,644 4.3% Net income $18,275 $17,670 3.4% Adjusted EBITDA(1) $38,548 $36,480 5.7% Basic EPS $0.95 $0.92 3.3% Diluted EPS $0.93 $0.90 3.3% 1. Definitions
Slide 26: Balance Sheet Overview
Balance Sheet Overview $ in 000s March 31, 2024 December 31, 2023 • In February 2023, the Company entered into a Fifth Amended and Restated Credit Agreement Cash and cash equivalents $39,484 $43,361 which increased the aggregate principal amount of Net property and equipment 585,434 580,497 its revo
Slide 27: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation Three Months Ended March 31, $ in 000s 2024 2023 Net income $18,275 $17,670 Expenses: Stock based compensation 1,778 1,474 Depreciation and amortization 12,487 11,337 Provision for income taxes 5,542 4,902 Interest income (expense), net (7) 587 Construction litigation
Slide 28: Monarch Casino & Resort, Inc. 2024 Annual Stockholders' Meeting
Monarch Casino & Resort, Inc. 2024 Annual Stockholders’ Meeting
Monarch Casino & Resort — Shareholder Meeting (May 2024) on 6ix