Monarch Casino and Resort boosts net, pays down debt
Monarch Casino and Resort Inc. paid down its debt during the second quarter even faster than it dropped earnings to the bottom line.
The publicly held company, parent of Atlantis Casino Resort Spa, last week reported net income of $3.6 million, which compares with net of $2.66 million in the same quarter a year earlier.
The company said it paid down its debt during the quarter by $5 million, reducing the amount outstanding under its credit facilities to $17 million on June 30. That, in turn, cut the company’s interest expense during the second quarter to $195,000 compared with $366,000 a year earlier.
John Farahi, chief executive officer and co-chairman of Monarch, has said in recent weeks that the company is getting into position where it might make an acquisition but only if a deal comes along that makes economic sense.
In the meantime, net revenues at the Atlantis the company’s only property rose to $37.2 million in the second quarter. That’s up 2.8 percent from a year earlier.
Casino revenues were up by about $1 million, food and beverage revenues were up by $564,000 and hotel revenues were down by $441,000 because the Atlantis demolished its 149-room motor lodge late last year and had fewer rooms to rent.
Farahi said the Atlantis continued to increase its share of the Reno-area gaming market despite the weak national and regional economy.
Thanks to the implementation of curbside pick-up and delivery, the Silver State’s cannabis companies are rebounding well from the pandemic, so much so that 2020 sales may even exceed 2019 year-over-year, despite the shut-down of storefronts this spring.