UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
----------------------
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): February 17, 2004
MONARCH CASINO & RESORT, INC.
(Exact name of registrant as specified in its charter)
NEVADA 0-22088 88-0300760
(State or other jurisdiction (Commission (I.R.S. Employer
of incorporation) File Number) Identification No.)
1175 W. Moana Lane, Suite 200
Reno, NEVADA 89509
(Address of Principal Executive Offices) (Zip Code)
(775)825-3355
----------------------------------------------------
(Registrant's telephone number, including area code)
NOT APPLICABLE
----------------------------------------------------
(Former name or former address, if changed since last report)
ITEM 12. Results of Operations and Financial Condition
On February 17, 2004, Monarch Casino & Resort, Inc. (the "Company")
issued a press release reporting the Company's financial results for the
fourth quarter and year ended December 31, 2003. A copy of the press release
is attached hereto as Exhibit 99.1 and incorporated herein by reference.
Also attached hereto and incorporated by reference is Exhibit 99.2, a
correction of the press release attached as Exhibit 99.1. A sentence in the
first paragraph of the press release was removed from the corrected version in
Exhibit 99.2. All financial data and numbers remained unchanged from the
original version.
ITEM 7. Financial Statements and Exhibits
(c) Exhibits
99.1 Text of press release dated February 17, 2004.
99.2 Corrected text of press release dated february 17, 2004.
-2-
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934,
as amended, the Registrant has duly caused this report to be signed on its
behalf by the undersigned hereunto duly authorized.
MONARCH CASINO & RESORT, INC.
Date: February 19, 2004 By: /s/ Ben Farahi
-------------------------------
Name: Ben Farahi
Title: Chief Financial Officer,
Treasurer and Secretary
-3-
Exhibit 99.1
PRESS RELEASE
MONARCH CASINO & RESORT, INC. ANNOUNCES RECORD REVENUES AND EARNINGS FOR
FOURTH QUARTER AND FISCAL YEAR ENDED DECEMBER 31, 2003
RENO, NV-February 17, 2004- Monarch Casino & Resort, Inc. (Nasdaq: MCRI)
(the "Company") today announced record net income, earnings per share, casino
revenues, net revenues and EBITDA for the fourth quarter and fiscal year ended
December 31, 2003. For the fourth quarter ended December 31, 2003, net income
improved 36.4% over the fourth quarter ended December 31, 2002, increasing from
$1,298,636, or $0.14 per diluted share, to $1,771,073, or $0.19 per diluted
share. This fourth quarter improvement was mainly due to a 26.0% reduction in
interest and stockholder guarantee fee expenses over last year's fourth quarter
due to reduced debt outstanding and lower applicable interest rates, and to a
lesser increase in operating expenses relative to the increase in revenues.
Casino revenues increased 7.5% in the 2003 fourth quarter over the same period
last year. The increase in casino revenues was mainly driven by improvements
in slot machine, Keno and poker room revenues. Fourth quarter hotel revenues
also grew in 2003, increasing 2.2% over the 2002 fourth quarter. Food and
Beverage revenues decreased 0.5% in the 2003 fourth quarter as compared to the
2002 fourth quarter, while other revenue centers increased 2.9% over the same
period. Net revenues for the quarter ended December 31, 2003, were
$28,263,822, a 4.8% increase over the $26,960,916 for the same period a year
earlier. EBITDA (1) for the fourth quarter of 2003 saw a 16.5% improvement
over the fourth quarter of 2002, increasing from $5,293,624 to $6,165,987.
For the fiscal year ended December 31, 2003, net income increased 11.7% to
$9,605,923, or $1.02 per diluted share, as compared to $8,603,346, or $0.90 per
diluted share, for the fiscal year ended December 31, 2002. This improvement
in net income is directly attributable to a 33.0% decrease in interest expense
and related stockholder guarantee fee expenses in 2003 over 2002, which
resulted from lower outstanding debt levels as well as lower applicable
interest rates. The Company also reported record casino revenues of
$74,955,744 for the year, an increase of 5.9% over the $70,772,939 in 2002.
The increase in casino revenues for the year was mainly attributable to
increases in slot machine, Keno and poker revenues. Hotel revenues also broke
Company records during fiscal year 2003, increasing 4.6% over the 2002 fiscal
year results. Food and beverage (2.5%) and other (8.5%) revenue centers also
improved during the fiscal year ended December 31, 2003 over the fiscal year
ended December 31, 2002. The increases in all revenue centers contributed to
record net revenues for the 2003 fiscal year, increasing 4.4% over the 2002
fiscal year. EBITDA (1) improved 1.8% during the year ended December 31, 2003,
as compared to the same period in 2002, increasing from $27,515,903 to
$28,006,847. The Company achieved record EBITDA (1) despite having incurred
litigation costs associated with its recently settled lawsuit against the City
of Reno and other third parties, as well as an increased gaming tax rate
imposed by the State of Nevada that took effect on August 1, 2003. The Company
incurred approximately $505,000 for both of these expenses in 2003, without
comparable expenses in 2002.
The Company also announced today that it expects to complete the
refinancing of its bank credit facility that matures on June 30, 2004 by
February 27, 2004.
-4-
John Farahi, Co-chairman and Chief Executive Officer of Monarch
complimented the Atlantis team and the Company's product following the record
results: "We achieved record numbers once again in a very competitive
environment. I am particularly pleased with our fourth quarter results.
Despite increased competition from California Native American casinos and
increased gaming tax rates, our fourth quarter EBITDA (1) increased
approximately 16.5% over the year 2002 fourth quarter."
Monarch Casino & Resort, Inc. also announced today that the Company's 2004
Annual Meeting of Stockholders will be held on Wednesday, May 26, 2004, at
10:00 a.m. local time, at the Company's Atlantis Casino Resort, 3800 South
Virginia Street, Reno, Nevada 89502. The record date for stockholders entitled
to vote at the Annual Meeting is Thursday, April 8, 2004.
Monarch Casino & Resort, Inc., through its wholly-owned subsidiary, owns
and operates the tropically-themed Atlantis Casino Resort in Reno, Nevada. The
Atlantis is the closest hotel-casino to and is directly across the street from
the Reno-Sparks Convention Center, which completed a $105 million expansion and
renovation in August 2002. The Atlantis is recognizable due to its Sky
Terrace, a unique structure rising approximately 55 feet from street level and
spanning 160 feet across the street with no intermediate support pillars. The
Sky Terrace connects the Atlantis to a 16-acre parcel of land owned by the
Company, that is compliant with all casino zoning requirements and is suitable
and available for future expansion of the Atlantis facilities and is currently
being used by the Company as additional paved parking for the Atlantis. The
existing Atlantis site offers almost 1,000 guest rooms in three contiguous
high-rise hotel towers and a motor lodge. The tropically-themed Atlantis
features approximately 51,000 square feet of high-energy casino space with 37
table games and approximately 1,450 slot and video poker machines, a sports
book, Keno and a poker room, and offers a variety of dining choices in the form
of nine high-quality food outlets.
This press release contains forward-looking statements within the meaning
of Section 21E of the Securities Exchange Act of 1934 which are subject to
change, including, but not limited to, comments relating to (i) future
operating performance and (ii) the financial benefits that may result from
future operations. The actual results may differ materially from those
described in any forward-looking statements. Additional information concerning
potential factors that could affect the Company's financial results are
included in the Company's Securities and Exchange Commission filings, which are
available on the Company's web site.
Contacts: Ben Farahi at (775) 825-3355 or benfarahi@monarchcasino.com
Karl G. Brokmann at (775) 825-3355 or kbrokmann@monarchcasino.com
For additional information including artist renditions and photographs,
visit Monarch's web site at monarchcasino.com.
(1) "EBITDA" consists of net income plus provision for income taxes, other
expenses (income), and depreciation and amortization. EBITDA should not be
construed as an alternative to operating income (as determined in accordance
with generally accepted accounting principles) as an indicator of the Company's
operating performance, or as an alternative to cash flows from operating
activities (as determined in accordance with generally accepted accounting
principles) as a measure of liquidity. This item enables comparison of the
Company's performance with the performance of other companies that report
EBITDA, although some companies do not calculate this measure in the same
manner and therefore, the measure as presented, may not be comparable to
similarly titled measures presented by other companies.
-5-
MONARCH CASINO & RESORT, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months Ended Twelve Months Ended
December 31, December 31,
------------------ ------------------
2003 2002 2003 2002
(Unaudited) (Unaudited)
Revenues
Casino................................ $ 18,708,204 $ 17,396,640 $ 74,955,744 $ 70,772,939
Food and beverage..................... 8,404,880 8,444 043 34,498,613 33,646,938
Hotel................................. 4,753,786 4,651,613 21,236,808 20,303,439
Other................................. 964,448 937,107 4,005,426 3,690,180
------------ ------------ ------------ ------------
Gross revenues..................... 32,831,318 31,429,403 134,696,591 128,413,496
Less promotional allowances........... (4,567,496) (4,468,487) (18,746,078) (17,375,926)
------------ ------------ ------------ ------------
Net revenues....................... 28,263,822 26,960,916 115,950,513 111,037,570
------------ ------------ ------------ ------------
Operating expenses
Casino................................ 7,285,897 7,331,529 29,321,060 27,690,033
Food and beverage..................... 4,571,552 4,405,311 17,701,143 17,591,945
Hotel................................. 1,760,480 1,644,379 6,991,581 6,543,610
Other................................. 299,503 306,503 1,270,624 1,254,179
Selling, general and administrative... 8,180,403 7,979,570 32,659,258 30,441,900
Depreciation and amortization......... 2,869,044 2,599,056 10,797,494 10,320,403
------------ ------------ ------------ ------------
Total operating expenses........... 24,966,879 24,266,348 98,741,160 93,842,070
------------ ------------ ------------ ------------
Income from operations............. 3,296,943 2,694,568 17,209,353 17,195,500
------------ ------------ ------------ ------------
Other expense
Interest expense...................... (363,695) (511,810) (1,607,840) (2,633,917)
Stockholder guarantee fee expense..... (237,397) (300,041) (1,030,010) (1,300,446)
Stock transaction expense............. - (3,020) - (228,020)
------------ ------------ ------------ ------------
Total other........................ (601,092) (814,871) (2,637,850) (4,162,383)
------------ ------------ ------------ ------------
Income (loss) before income taxes.. 2,695,851 1,879,697 14,571,503 13,033,117
Provision (benefit) for income taxes.... 924,778 581,061 4,965,580 4,429,771
------------ ------------ ------------ ------------
Net income (loss).................. $ 1,771,073 $ 1,298,636 $ 9,605,923 $ 8,603,346
============ ============ ============ ============
INCOME (LOSS) PER SHARE OF COMMON STOCK
Net income (loss)
Basic.............................. $ 0.19 $ 0.14 $ 1.02 $ 0.91
Diluted............................ $ 0.19 $ 0.14 $ 1.02 $ 0.90
Weighted average number of
common shares and potential
common shares outstanding
Basic.............................. 9,340,328 9,473,664 9,379,446 9,457,669
Diluted............................ 9,374,028 9,533,751 9,412,459 9,521,353
-6-
MONARCH CASINO & RESORT, INC. AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
December 31,
----------------------------
2003 2002
------------ ------------
ASSETS
Current assets
Cash........................................$ 9,711,310 $ 9,961,484
Receivables, net............................ 2,818,727 2,724,726
Federal income tax refund receivable........ 756,698 -
Inventories................................. 1,245,967 993,260
Prepaid expenses............................ 2,234,773 1,961,763
Prepaid federal income tax.................. - 176,321
Deferred income taxes....................... 542,457 492,457
------------ ------------
Total current assets..................... 17,309,932 16,310,011
------------ ------------
Property and equipment
Land........................................ 10,339,530 10,339,530
Land improvements........................... 3,226,913 3,191,371
Buildings................................... 78,955,538 78,955,538
Building improvements....................... 6,304,642 6,262,903
Furniture and equipment..................... 63,230,354 58,086,570
------------ ------------
162,056,977 156,835,912
Less accumulated
depreciation and amortization.............. (63,618,047) (55,985,653)
------------ -----------
98,438,930 100,850,259
------------ ------------
Net property and equipment............... 98,438,930 100,850,259
Other assets, net............................. 128,263 319,817
------------ ------------
$115,877,125 $117,480,087
============ ============
-7-
MONARCH CASINO & RESORT, INC. AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
December 31,
----------------------------
2002 2001
------------ ------------
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Current maturities of long-term debt........ $ 47,184,591 $ 8,279,095
Accounts payable............................ 8,407,887 6,227,124
Accrued expenses............................ 6,707,257 6,146,440
------------ ------------
Total current liabilities................ 62,299,735 20,652,659
Long-term debt, less current maturities....... - 52,000,000
Deferred income taxes......................... 4,854,587 4,526,744
Commitments and contingencies
Stockholders' equity
Preferred stock, $.01 par value, 10,000,000
shares authorized; none issued............. - -
Common stock, $.01 par value, 30,000,000
shares authorized; 9,536,275 issued;
9,436,275 outstanding...................... 95,363 95,363
Additional paid-in capital.................. 17,432,635 17, 381,517
Treasury stock, at cost.................... (1,437,614) (202,692)
Retained earnings........................... 32,632,419 23,026,496
------------ ------------
Total stockholders' equity............... 48,722,803 40,300,684
------------ ------------
$115,877,125 $117,480,087
============ ============
MONARCH CASINO & RESORT, INC. AND SUBSIDIARY
RECONCILIATION OF INCOME FROM OPERATIONS TO EBITDA
Three Months Ended Twelve Months Ended
December 31, December 31,
---------------------- ------------------------
2003 2002 2003 2002
---------- ---------- ----------- -----------
Net income $1,771,073 $1,298,636 $ 9,605,923 $ 8,603,346
Adjustments:
Provision for income taxes 924,778 581,061 4,965,580 4,429,771
Stock transaction expense - 3,020 - 228,020
Interest expense 601,092 811,851 2,637,850 3,934,363
Depreciation & amortization 2,869,044 2,599,056 10,797,494 10,320,403
---------- ---------- ----------- -----------
EBITDA $6,165,987 $5,293,624 $28,006,847 $27,515,903
-8-
Exhibit 99.2
PRESS RELEASE
MONARCH CASINO & RESORT, INC. ANNOUNCES RECORD REVENUES AND EARNINGS FOR
FOURTH QUARTER AND FISCAL YEAR ENDED DECEMBER 31, 2003
RENO, NV-February 17, 2004- Monarch Casino & Resort, Inc. (Nasdaq: MCRI)
(the "Company") today announced record net income, earnings per share, casino
revenues, net revenues and EBITDA for the fourth quarter and fiscal year ended
December 31, 2003. For the fourth quarter ended December 31, 2003, net income
improved 36.4% over the fourth quarter ended December 31, 2002, increasing from
$1,298,636, or $0.14 per diluted share, to $1,771,073, or $0.19 per diluted
share. Casino revenues increased 7.5% in the 2003 fourth quarter over the same
period last year. The increase in casino revenues was mainly driven by
improvements in slot machine, Keno and poker room revenues. Fourth quarter
hotel revenues also grew in 2003, increasing 2.2% over the 2002 fourth quarter.
Food and Beverage revenues decreased 0.5% in the 2003 fourth quarter as
compared to the 2002 fourth quarter, while other revenue centers increased 2.9%
over the same period. Net revenues for the quarter ended December 31, 2003,
were $28,263,822, a 4.8% increase over the $26,960,916 for the same period a
year earlier. EBITDA (1) for the fourth quarter of 2003 saw a 16.5%
improvement over the fourth quarter of 2002, increasing from $5,293,624 to
$6,165,987.
For the fiscal year ended December 31, 2003, net income increased 11.7% to
$9,605,923, or $1.02 per diluted share, as compared to $8,603,346, or $0.90 per
diluted share, for the fiscal year ended December 31, 2002. This improvement
in net income is directly attributable to a 33.0% decrease in interest expense
and related stockholder guarantee fee expenses in 2003 over 2002, which
resulted from lower outstanding debt levels as well as lower applicable
interest rates. The Company also reported record casino revenues of
$74,955,744 for the year, an increase of 5.9% over the $70,772,939 in 2002.
The increase in casino revenues for the year was mainly attributable to
increases in slot machine, Keno and poker revenues. Hotel revenues also broke
Company records during fiscal year 2003, increasing 4.6% over the 2002 fiscal
year results. Food and beverage (2.5%) and other (8.5%) revenue centers also
improved during the fiscal year ended December 31, 2003 over the fiscal year
ended December 31, 2002. The increases in all revenue centers contributed to
record net revenues for the 2003 fiscal year, increasing 4.4% over the 2002
fiscal year. EBITDA (1) improved 1.8% during the year ended December 31, 2003,
as compared to the same period in 2002, increasing from $27,515,903 to
$28,006,847. The Company achieved record EBITDA (1) despite having incurred
litigation costs associated with its recently settled lawsuit against the City
of Reno and other third parties, as well as an increased gaming tax rate
imposed by the State of Nevada that took effect on August 1, 2003. The Company
incurred approximately $505,000 for both of these expenses in 2003, without
comparable expenses in 2002.
The Company also announced today that it expects to complete the
refinancing of its bank credit facility that matures on June 30, 2004 by
February 27, 2004.
-9-
John Farahi, Co-chairman and Chief Executive Officer of Monarch
complimented the Atlantis team and the Company's product following the record
results: "We achieved record numbers once again in a very competitive
environment. I am particularly pleased with our fourth quarter results.
Despite increased competition from California Native American casinos and
increased gaming tax rates, our fourth quarter EBITDA (1) increased
approximately 16.5% over the year 2002 fourth quarter."
Monarch Casino & Resort, Inc. also announced today that the Company's 2004
Annual Meeting of Stockholders will be held on Wednesday, May 26, 2004, at
10:00 a.m. local time, at the Company's Atlantis Casino Resort, 3800 South
Virginia Street, Reno, Nevada 89502. The record date for stockholders entitled
to vote at the Annual Meeting is Thursday, April 8, 2004.
Monarch Casino & Resort, Inc., through its wholly-owned subsidiary, owns
and operates the tropically-themed Atlantis Casino Resort in Reno, Nevada. The
Atlantis is the closest hotel-casino to and is directly across the street from
the Reno-Sparks Convention Center, which completed a $105 million expansion and
renovation in August 2002. The Atlantis is recognizable due to its Sky
Terrace, a unique structure rising approximately 55 feet from street level and
spanning 160 feet across the street with no intermediate support pillars. The
Sky Terrace connects the Atlantis to a 16-acre parcel of land owned by the
Company, that is compliant with all casino zoning requirements and is suitable
and available for future expansion of the Atlantis facilities and is currently
being used by the Company as additional paved parking for the Atlantis. The
existing Atlantis site offers almost 1,000 guest rooms in three contiguous
high-rise hotel towers and a motor lodge. The tropically-themed Atlantis
features approximately 51,000 square feet of high-energy casino space with 37
table games and approximately 1,450 slot and video poker machines, a sports
book, Keno and a poker room, and offers a variety of dining choices in the form
of nine high-quality food outlets.
This press release contains forward-looking statements within the meaning
of Section 21E of the Securities Exchange Act of 1934 which are subject to
change, including, but not limited to, comments relating to (i) future
operating performance and (ii) the financial benefits that may result from
future operations. The actual results may differ materially from those
described in any forward-looking statements. Additional information concerning
potential factors that could affect the Company's financial results are
included in the Company's Securities and Exchange Commission filings, which are
available on the Company's web site.
Contacts: Ben Farahi at (775) 825-3355 or benfarahi@monarchcasino.com
Karl G. Brokmann at (775) 825-3355 or kbrokmann@monarchcasino.com
For additional information including artist renditions and photographs,
visit Monarch's web site at monarchcasino.com.
(1) "EBITDA" consists of net income plus provision for income taxes, other
expenses (income), and depreciation and amortization. EBITDA should not be
construed as an alternative to operating income (as determined in accordance
with generally accepted accounting principles) as an indicator of the Company's
operating performance, or as an alternative to cash flows from operating
activities (as determined in accordance with generally accepted accounting
principles) as a measure of liquidity. This item enables comparison of the
Company's performance with the performance of other companies that report
EBITDA, although some companies do not calculate this measure in the same
manner and therefore, the measure as presented, may not be comparable to
similarly titled measures presented by other companies.
-10-
MONARCH CASINO & RESORT, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months Ended Twelve Months Ended
December 31, December 31,
------------------ ------------------
2003 2002 2003 2002
(Unaudited) (Unaudited)
Revenues
Casino................................ $ 18,708,204 $ 17,396,640 $ 74,955,744 $ 70,772,939
Food and beverage..................... 8,404,880 8,444 043 34,498,613 33,646,938
Hotel................................. 4,753,786 4,651,613 21,236,808 20,303,439
Other................................. 964,448 937,107 4,005,426 3,690,180
------------ ------------ ------------ ------------
Gross revenues..................... 32,831,318 31,429,403 134,696,591 128,413,496
Less promotional allowances........... (4,567,496) (4,468,487) (18,746,078) (17,375,926)
------------ ------------ ------------ ------------
Net revenues....................... 28,263,822 26,960,916 115,950,513 111,037,570
------------ ------------ ------------ ------------
Operating expenses
Casino................................ 7,285,897 7,331,529 29,321,060 27,690,033
Food and beverage..................... 4,571,552 4,405,311 17,701,143 17,591,945
Hotel................................. 1,760,480 1,644,379 6,991,581 6,543,610
Other................................. 299,503 306,503 1,270,624 1,254,179
Selling, general and administrative... 8,180,403 7,979,570 32,659,258 30,441,900
Depreciation and amortization......... 2,869,044 2,599,056 10,797,494 10,320,403
------------ ------------ ------------ ------------
Total operating expenses........... 24,966,879 24,266,348 98,741,160 93,842,070
------------ ------------ ------------ ------------
Income from operations............. 3,296,943 2,694,568 17,209,353 17,195,500
------------ ------------ ------------ ------------
Other expense
Interest expense...................... (363,695) (511,810) (1,607,840) (2,633,917)
Stockholder guarantee fee expense..... (237,397) (300,041) (1,030,010) (1,300,446)
Stock transaction expense............. - (3,020) - (228,020)
------------ ------------ ------------ ------------
Total other........................ (601,092) (814,871) (2,637,850) (4,162,383)
------------ ------------ ------------ ------------
Income (loss) before income taxes.. 2,695,851 1,879,697 14,571,503 13,033,117
Provision (benefit) for income taxes.... 924,778 581,061 4,965,580 4,429,771
------------ ------------ ------------ ------------
Net income (loss).................. $ 1,771,073 $ 1,298,636 $ 9,605,923 $ 8,603,346
============ ============ ============ ============
INCOME (LOSS) PER SHARE OF COMMON STOCK
Net income (loss)
Basic.............................. $ 0.19 $ 0.14 $ 1.02 $ 0.91
Diluted............................ $ 0.19 $ 0.14 $ 1.02 $ 0.90
Weighted average number of
common shares and potential
common shares outstanding
Basic.............................. 9,340,328 9,473,664 9,379,446 9,457,669
Diluted............................ 9,374,028 9,533,751 9,412,459 9,521,353
-11-
MONARCH CASINO & RESORT, INC. AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
December 31,
----------------------------
2003 2002
------------ ------------
ASSETS
Current assets
Cash........................................$ 9,711,310 $ 9,961,484
Receivables, net............................ 2,818,727 2,724,726
Federal income tax refund receivable........ 756,698 -
Inventories................................. 1,245,967 993,260
Prepaid expenses............................ 2,234,773 1,961,763
Prepaid federal income tax.................. - 176,321
Deferred income taxes....................... 542,457 492,457
------------ ------------
Total current assets..................... 17,309,932 16,310,011
------------ ------------
Property and equipment
Land........................................ 10,339,530 10,339,530
Land improvements........................... 3,226,913 3,191,371
Buildings................................... 78,955,538 78,955,538
Building improvements....................... 6,304,642 6,262,903
Furniture and equipment..................... 63,230,354 58,086,570
------------ ------------
162,056,977 156,835,912
Less accumulated
depreciation and amortization.............. (63,618,047) (55,985,653)
------------ -----------
98,438,930 100,850,259
------------ ------------
Net property and equipment............... 98,438,930 100,850,259
Other assets, net............................. 128,263 319,817
------------ ------------
$115,877,125 $117,480,087
============ ============
-12-
MONARCH CASINO & RESORT, INC. AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
December 31,
----------------------------
2002 2001
------------ ------------
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Current maturities of long-term debt........ $ 47,184,591 $ 8,279,095
Accounts payable............................ 8,407,887 6,227,124
Accrued expenses............................ 6,707,257 6,146,440
------------ ------------
Total current liabilities................ 62,299,735 20,652,659
Long-term debt, less current maturities....... - 52,000,000
Deferred income taxes......................... 4,854,587 4,526,744
Commitments and contingencies
Stockholders' equity
Preferred stock, $.01 par value, 10,000,000
shares authorized; none issued............. - -
Common stock, $.01 par value, 30,000,000
shares authorized; 9,536,275 issued;
9,436,275 outstanding...................... 95,363 95,363
Additional paid-in capital.................. 17,432,635 17, 381,517
Treasury stock, at cost.................... (1,437,614) (202,692)
Retained earnings........................... 32,632,419 23,026,496
------------ ------------
Total stockholders' equity............... 48,722,803 40,300,684
------------ ------------
$115,877,125 $117,480,087
============ ============
MONARCH CASINO & RESORT, INC. AND SUBSIDIARY
RECONCILIATION OF INCOME FROM OPERATIONS TO EBITDA
Three Months Ended Twelve Months Ended
December 31, December 31,
---------------------- ------------------------
2003 2002 2003 2002
---------- ---------- ----------- -----------
Net income $1,771,073 $1,298,636 $ 9,605,923 $ 8,603,346
Adjustments:
Provision for income taxes 924,778 581,061 4,965,580 4,429,771
Stock transaction expense - 3,020 - 228,020
Interest expense 601,092 811,851 2,637,850 3,934,363
Depreciation & amortization 2,869,044 2,599,056 10,797,494 10,320,403
---------- ---------- ----------- -----------
EBITDA $6,165,987 $5,293,624 $28,006,847 $27,515,903
-13-