{"url_path":"/sec/mcri/8-k/2026-07-21/body","section_key":"body","section_title":"Body","topic":"sec","document":{"doc_type":"8-K","doc_date":"2026-07-21","source_url":"https://www.sec.gov/Archives/edgar/data/907242/0001171843-26-004783-index.html","accession_number":"0001171843-26-004783","cik":"0000907242","ticker":"MCRI","issuer_name":"MONARCH CASINO & RESORT INC","edgar_url":"https://www.sec.gov/Archives/edgar/data/907242/0001171843-26-004783-index.html","primary_entity_key":"0000907242","primary_entity_name":"MONARCH CASINO & RESORT INC"},"word_count":2712,"has_tables":true,"body_markdown":"EX-99.1\n2\nexh_991.htm\nPRESS RELEASE\n\nEdgarFiling\n**EXHIBIT 99.1**\n\n**Monarch Casino & Resort Reports Record Second Quarter 2026 Financial Results**\n\n**Declares Cash Dividend of $0.30 per Share Payable on September 15, 2026**\n\nRENO, Nev., July 20, 2026 (GLOBE NEWSWIRE) -- Monarch Casino & Resort, Inc. (Nasdaq: MCRI) (“Monarch” or “the Company”) today reported operating results for the second quarter ended June 30, 2026, as summarized below:\n\n*($ in thousands, except per share data and percentages)*\n\n Three Months Ended June 30, Six Months Ended June 30,\n\n  2026  2025 Increase  2026  2025 Increase\n\nNet revenue$142,597 $136,914 4.2% $279,147 $262,308 6.4%\n\n            \n\nNet income(1)(2) 32,523  27,008 20.4%  60,115  46,872 28.3%\n\n            \n\nAdjusted EBITDA(3)$52,999 $51,289 3.3% $101,950 $92,420 10.3%\n\n            \n\nBasic EPS$1.82 $1.47 23.8% $3.37 $2.55 32.2%\n\nDiluted EPS(1)(2)$1.78 $1.44 23.6% $3.30 $2.50 32.0%\n\n            \n\n(1) For the three months ended June 30, 2026 Net income and Diluted EPS were positively impacted by $2.4 million, or $0.13 per diluted EPS, from excess tax benefit on stock options compensation, resulting in a lower effective tax rate (17.4% in the second quarter of 2026 and 23.5% in the second quarter of 2025);\n(2) For the six months ended June 30, 2026 Net income and Diluted EPS were positively impacted by $2.6 million, or $0.14 per diluted EPS, from excess tax benefit on stock options compensation, resulting in a lower effective tax rate (19.7% in the first six months of 2026 and 23.1% in the first six months of 2025);\n(3) Definitions, disclosures and reconciliations of non-GAAP financial information are included later in the release.\n\n**CEO Comment**\nJohn Farahi, Co-Chairman and Chief Executive Officer of Monarch, commented: “Monarch delivered record second-quarter financial results. Second quarter net revenue increased 4.2% year-over-year reflecting growth in casino, F&B and hotel revenue. Adjusted EBITDA grew 3.3% compared to the same period last year. The second-quarter 2026 adjusted EBITDA margin remained near record levels at 37.2%, inclusive of a rise in employee benefit expenses, compared to 37.5% in Q2 2025. The second quarter revenue and adjusted EBITDA growth highlights our ability to drive sustained growth from our two properties.\n\n“We continue to focus on excellence by delivering exceptional product and service to our guests, while maintaining operational efficiency. We remain committed to ongoing capital investments that enhance both properties and set the standard for luxury casino resorts in Northern Nevada and Colorado.\n\n“Monarch’s strong operating results and positive trends allows us to continue to return capital to stockholders. In the second quarter of 2026, we returned $5.4 million to stockholders through our quarterly cash dividend. At the same time, we increased our cash position by $18.1 million.”\n\n**Summary of 2026 Second Quarter Operating Results**\nIn the second quarter of 2026, the Company generated net revenue of $142.6 million compared to $136.9 million in the corresponding prior-year period. Casino revenue increased 2.5% compared to the same prior-year period, food and beverage (“F&B”) increased 3.1% and hotel revenue increased 13.0%, compared to the same prior-year period. F&B and hotel revenues benefited from higher available rooms at Atlantis in the second quarter of 2026 compared to the same period in 2025 and expanded convention and group business.\n\nSelling, general and administrative (“SG&A”) expense for the second quarter of 2026 was $28.6 million compared to $26.8 million in the corresponding prior-year period. As a percentage of net revenue, SG&A expense increased slightly to 20.0% from 19.6% in the corresponding prior-year period. Casino operating expense as a percentage of casino revenue decreased slightly to 35.5% during the second quarter of 2026 from 35.7% in the corresponding prior-year period primarily due to improved labor management and operational efficiency. During the second quarter of 2026, F&B operating expense as a percentage of F&B revenue increased to 72.9% from 70.3% in the corresponding prior-year period due to increases in labor and product cost per cover. Hotel operating expense as a percentage of hotel revenue decreased to 32.1% in the second quarter of 2026 compared to 34.3% in the corresponding prior-year period, primarily due to an increase in Average Daily Rate and improved costs per occupied room in the current period compared to the same period in the prior year.\n\nNet income for the second quarter of 2026 increased 20.4% and diluted EPS increased 23.6% compared to the same period last year. The Company generated consolidated Adjusted EBITDA of $53.0 million in the second quarter of 2026, which represents a $1.7 million, or 3.3% increase, compared to the same prior-year period.\n\n**Credit Facility and Liquidity**\nAs of June 30, 2026, the Company had cash and cash equivalents of $138.3 million and no borrowings against its credit facility.\n\nCapital expenditures of $5 million in the second quarter of 2026 were funded from operating cash flow and included costs related to ongoing maintenance capital projects at both properties.\n\nOn June 15, 2026, the Company paid a cash dividend of $0.30 per share to its stockholders of record as of June 1, 2026 for a total of $5.4 million. The cash dividend was funded from operating cash flow.\n\nMonarch believes its strong balance sheet and free cash flow favorably positions the Company to continue investing in its properties, share repurchases and paying cash dividends. The Company has been diligently evaluating potential M&A transactions, which it believes could drive additional long-term value for stockholders.\n\n**Quarterly Dividend Declaration**\nThe Company today announced a cash dividend of $0.30 per share of its outstanding common stock. The dividend is payable on September 15, 2026 to stockholders of record as of September 1, 2026. This cash dividend is part of the previously announced annual cash dividend of $1.20 per share payable in quarterly payments and subject to quarterly review and evaluation by the Company’s Board of Directors.\n\n**Forward Looking Statements**\nThis press release contains forward-looking statements within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as \"plan,\" \"believe,\" \"expect,\" \"seem,\" \"look,\" \"look forward,\" \"positioning,\" \"future,\" \"will,\" \"confident\" and similar references to future periods. Example of forward-looking statements include, among others, statements we make regarding: (i) the continuing strength of our balance sheet and our expected free cash flow; (ii) our expectations regarding continuing our dividend payments in the future; (iii) our expectations regarding the cash flow we expect to generate to fund our cash dividends to stockholders; and, (iv) our beliefs regarding the impact of our capital investment strategy and evaluation of potential strategic transactions on our long term success. Actual results and future events and conditions may differ materially from those described in any forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause actual results to differ materially from estimates or projections contained in the forward-looking statements include, without limitation:\n\nadverse impacts of outbreaks of contagious diseases on our business, financial condition and operating results;\n\nactions taken by government officials at the federal, state and/or local level with respect to the containment of disease outbreaks, including, without limitation, temporary or extended shutdowns, travel restrictions, social distancing and shelter-in-place orders;\n\nour ability to manage guest safety concerns in connection with an outbreak of contagious diseases;\n\nour ability to maintain compliance with the terms and conditions of our credit facilities and other material contracts in the event of any unexpected or unplanned events, such as temporary or extended shutdowns;\n\naccess to available and reasonable financing on a timely basis;\n\nour ability to maintain strong working relationships with our regulators, employees, lenders, suppliers, insurance carriers, customers, and other stakeholders;\n\nimpacts of any uninsured losses;\n\nchanges in guest visitation or spending patterns due to economic conditions, health,  international relations  or other concerns;\n\nconstruction factors, including delays, disruptions, availability of labor and materials, increased costs of labor and materials, contractor disagreements, zoning issues, environmental restrictions, soil and water conditions, weather and other hazards, site access matters, building permit issues and other regulatory approvals or issues;\n\nongoing disagreements over costs of and responsibility for delays and other construction related matters with our general contractor at Monarch Casino Resort Spa Black Hawk, PCL Construction Services, Inc. (“PCL”), including, as previously reported, the litigation against us by such contractor;\n\nthe judgment entered in PCL’s favor and against Monarch in the above-mentioned litigation in the amount of $74,627,657 (the “Judgment”), in Case No. 2019cv33368 in the District Court for the State of Colorado, City and County of Denver (the “Court”), including the outcome of any post-judgment motions filed by PCL in the Court for further release;\n\nthe outcome of our appeal of the Judgment;\n\nour potential need to post other bonds or other forms of surety to support our legal remedies;\n\nrisks related to development and construction activities (including disputes with and defaults by contractors and subcontractors, construction, equipment or staffing problems and delays, shortages of materials or skilled labor, environmental, health and safety issues, weather and other hazards, site access matters, and unanticipated cost increases);\n\nour ability to generate sufficient operating cash flow to help finance our expansion plans;\n\nchanges in laws mandating increases in minimum wages and employee benefits;\n\nchanges in laws and regulations permitting expanded and other forms of gaming in our key markets;\n\nthe effects of local and national economic, credit and capital market conditions on the economy in general and on the gaming industry and our business in particular, including predictions for a potential recession;\n\nthe effects of labor shortages on our market position, growth and financial results;\n\nthe potential of increases in state and federal taxation;\n\nthe potential of increased regulatory and other burdens;\n\nguest acceptance of our expanded facilities once completed and the resulting impact on our market position, growth and financial results;\n\ncompetition in our target market areas;\n\nthe impact of the recently enacted tariffs on our business, including the potential increase in our operating costs;\n\nbroad-based inflation, including wage inflation; and\n\nthe impact of the conflicts taking place in Ukraine, Israel, Iran, other areas of the Middle East and other parts of the world.\n\nAdditional information concerning potential factors that could adversely affect all forward-looking statements, including the Company's financial results, is included in our Securities and Exchange Commission filings, including our most recent annual report on Form 10-K and quarterly reports on Form 10-Q, which are available on our website at www.monarchcasino.com.\n\n**About Monarch Casino & Resort, Inc.**\nMonarch Casino & Resort, Inc., through its subsidiaries, owns and operates the Monarch Casino Resort Spa (\"Monarch Black Hawk\") in Black Hawk, Colorado, approximately 40 miles west of Denver and the Atlantis Casino Resort Spa (\"Atlantis\"), a hotel/casino facility in Reno, Nevada. For additional information on Monarch, visit the Company's website at www.monarchcasino.com.\n\nAtlantis features 817 guest rooms and suites, and approximately 61,000 square feet of casino space. The casino features approximately 1,200 slot and video poker machines; approximately 33 table games, including blackjack, craps, roulette, and others; a race and sports book; a 24-hour live keno lounge; and a poker room. It also includes eight food outlets; two gourmet coffee and pastry bars; a retail store; a 30,000 square foot health spa and salon with an enclosed year-round pool; an 8,000 square-foot family entertainment center; and approximately 52,000 square feet of banquet, convention and meeting room space.\n\nMonarch Black Hawk features 516 guest rooms and suites, and approximately 60,000 square feet of casino space. The resort offers approximately 1,100 slot machines; 37 table games; a poker room; keno; and a sports book. It also includes 10 bars and lounges, as well as four dining options: a twenty-four-hour full-service restaurant, a buffet-style restaurant, the Monarch Chophouse (a fine-dining steakhouse), and Bistro Mariposa (elevated Southwest cuisine), banquet and meeting room space, a retail store, a concierge lounge and an upscale spa and enclosed year-round pool located on the top floor of the tower. The resort is connected to a nine-story parking structure with approximately 1,350 parking spaces, and additional valet parking, with total property capacity of approximately 1,500 spaces.\n\n**Contacts:**\nJohn Farahi\nChief Executive Officer\n775/824-4401 or JFarahi@monarchcasino.com\n\nJoseph Jaffoni, Christin Armacost\nJCIR\n212/835-8500 or mcri@jcir.com\n\n- financial tables follow -\n\n \n\n**MONARCH CASINO & RESORT, INC. AND SUBSIDIARIES**\n\n**CONSOLIDATED STATEMENTS OF INCOME**\n\n(In thousands, except per share data, unaudited)\n\n     \n\n  Three months ended\nJune 30, Six months ended\nJune 30,\n\n   2026   2025   2026   2025 \n\n         \n\nRevenues        \n\nCasino $81,540  $79,589  $161,286  $152,484 \n\nFood and beverage  33,179   32,191   64,880   62,213 \n\nHotel  21,585   19,110   40,541   35,818 \n\nOther  6,293   6,024   12,440   11,793 \n\nNet revenues  142,597   136,914   279,147   262,308 \n\n         \n\nOperating expenses        \n\nCasino  28,920   28,449   57,653   55,966 \n\nFood and beverage  24,182   22,636   47,226   44,945 \n\nHotel  6,920   6,556   13,742   12,852 \n\nOther  3,133   3,073   6,332   6,151 \n\nSelling, general and administrative  28,564   26,786   56,318   53,976 \n\nDepreciation and amortization  10,664   13,571   21,131   26,786 \n\nOther Operating Items, net  1,591   944   3,176   1,415 \n\nTotal operating expenses  103,974   102,015   205,578   202,091 \n\nIncome from operations  38,623   34,899   73,569   60,217 \n\n         \n\nInterest income, net  742   392   1,340   708 \n\nIncome before income taxes  39,365   35,291   74,909   60,925 \n\nProvision for income taxes  (6,842)  (8,283)  (14,794)  (14,053)\n\nNet income $32,523  $27,008  $60,115  $46,872 \n\n         \n\n         \n\nEarnings per share of common stock        \n\nBasic $1.82  $1.47  $3.37  $2.55 \n\nDiluted $1.78  $1.44  $3.30  $2.50 \n\n         \n\nWeighted average number of common shares and potential common shares outstanding        \n\nBasic  17,873   18,383   17,858   18,416 \n\nDiluted  18,261   18,723   18,237   18,776 \n\n \n\n**MONARCH CASINO & RESORT, INC. AND SUBSIDIARIES**\n\n**CONSOLIDATED BALANCE SHEET**\n\n(In thousands, except per share data)\n\n \n\n  June 30, 2026 December 31, 2025\n\nASSETS (unaudited)  \n\nCurrent assets    \n\nCash and cash equivalents $138,261  $96,468 \n\nReceivables, net of provision for credit losses  9,569   11,067 \n\nIncome taxes receivable  5,042   3,013 \n\nInventories  8,299   9,089 \n\nPrepaid expenses and other  7,680   9,616 \n\nTotal current assets  168,851   129,253 \n\nProperty and equipment, net  545,040   556,668 \n\nGoodwill  25,111   25,111 \n\nIntangible assets, net  2,159   1,817 \n\nTotal assets $741,161  $712,849 \n\nLIABILITIES AND STOCKHOLDERS' EQUITY    \n\nCurrent liabilities    \n\nAccounts payable $41,884  $44,924 \n\nConstruction accounts payable  48,355   50,209 \n\nAccrued expenses  48,663   54,049 \n\nShort-term lease liability  953   1,019 \n\nTotal current liabilities  139,855   150,201 \n\nDeferred income taxes  11,626   11,626 \n\nLong-term lease liability  11,838   12,279 \n\nOther long-term liabilities  1,073   1,073 \n\nTotal liabilities  164,392   175,179 \n\nStockholders' equity    \n\nPreferred stock, $.01 par value, 10,000,000 shares authorized; none issued  -   - \n\nCommon stock, $.01 par value, 30,000,000 shares authorized;    \n\n19,829,049 shares issued and 17,922,521 outstanding at June 30, 2026    \n\n19,544,290 shares issued and 17,819,020 outstanding at December 31, 2025  198   195 \n\nAdditional paid-in capital  83,276   76,038 \n\nTreasury stock, 1,906,528 shares at June 30, 2026 and 1,725,270 shares at December 31, 2025  (153,930)  (136,411)\n\nRetained earnings  647,225   597,848 \n\nTotal stockholders' equity  576,769   537,670 \n\nTotal liabilities and stockholders' equity $741,161  $712,849 \n\n         \n\n****\n\n**MONARCH CASINO & RESORT, INC. AND SUBSIDIARIES **\n**RECONCILIATION OF ADJUSTED EBITDA TO NET INCOME**\n (In thousands, unaudited)\n\nThe following table sets forth a reconciliation of Adjusted EBITDA, a non-GAAP financial measure, to net income, a GAAP financial measure:\n\n Three Months Ended\nJune 30, Six Months Ended\nJune 30,\n\n  2026   2025   2026   2025 \n\nNet income$32,523  $27,008  $60,115  $46,872 \n\nExpenses:       \n\nStock-based compensation 2,121   1,875   4,074   4,002 \n\nDepreciation and amortization 10,664   13,571   21,131   26,786 \n\nProvision for income taxes 6,842   8,283   14,794   14,053 \n\nInterest income, net (742)  (392)  (1,340)  (708)\n\nConstruction litigation expenses(2) 430   916   777   1,363 \n\nPrincipal judgement on construction litigation accrual(2) 1,116   -   2,220   - \n\nOther litigation expense accrual(2) 65   -   163   - \n\nLobbying expense to oppose the expansion of iGaming(2) 61   22   176   50 \n\nLoss (gain) on disposition of assets(2) (81)  6   (160)  2 \n\nAdjusted EBITDA(1)$52,999  $51,289  $101,950  $92,420 \n\n                \n\n(1) Adjusted EBITDA, a non-GAAP financial measure, consists of net income plus loss (gain) on disposal of assets, provision for income taxes, stock-based compensation expense, other one-time charges, construction litigation expenses, acquisition expenses, interest expense, depreciation and amortization less interest income, any benefit for income taxes and gain on disposal of assets. Adjusted EBITDA should not be construed as an alternative to operating income (as determined in accordance with US Generally Accepted Accounting Principles), as an indicator of the Company's operating performance, as an alternative to cash flows from operating activities (as determined in accordance with US GAAP) or as a measure of liquidity. This measure enables comparison of the Company's performance over multiple periods, as well as against the performance of other companies in our industry that report Adjusted 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.\n(2) Amount included in the \"Other operating items, net\" in the Consolidated Statement of Income."}