Monarch Casino & Resort Posts Strong Q4 and 2022 Results

The company posted its results for 2022 Tuesday, reporting a 20.9% increase in revenue to $477.9 million. This marked a strong performance throughout 2022, considering that in 2021, the operator’s net revenue halted at $395.4 million. A further breakdown revealed that adjusted EBITDA in 2022 hit $167.1 million. This result, when compared to adjusted EBITDA in 2021, which was $137.3 million, marked an increase of 21.7%.

Not unexpectedly, Monarch Casino & Resort’s net income in 2022 increased as well. Back in 2021, the operator’s net income halted at $68.5 million, while in 2022, it increased by 27.7%, hitting $87.5 million. Basic earnings per share, as well as diluted earnings per share also marked an increase of 25% and 26.6%, hitting $4.60 and $4.47 respectively.

“Monarch ended a strong 2022 with record fourth quarter and fiscal year financial results.“

John Farahi, co-chairman and CEO of Monarch

Monarch Casino & Resort’s CEO and co-chairman, John Farahi, acknowledged that the company enjoyed a successful end of 2022 with record performance during the fourth quarter. Moreover, he explained that the company also posted strong results for the financial fiscal year. Farahi explained that the growth of net revenue and adjusted EBITDA in 2022 “drove free cash flow to a record high, positioning Monarch to return  capital to stockholders in the form  of the one-time  cash dividend and the recurring annual cash dividend to be paid quarterly, which we announced last week.”

Additionally, he said that currently, the company has some $30 million cash. According to Farahi, Monarch anticipates paying a one-time dividend with the existing cash. He pointed out that the company currently has a “strong balance sheet and free cash flow,” which enable it to continue pursuing mergers and acquisitions as well as other growth opportunities.

The Company Reported Strong Fourth Quarter Performance

The latest trading update released by Monarch revealed that the company’s net revenue in Q4 hit $120.5 million, marking an increase of 8.5% when compared to the corresponding period in 2021. Adjusted EBITDA for the fourth quarter of 2022 increased as well, hitting $41.6 million, up by 6.6%.

Besides net revenue growth, the company reported an increase in net income for Q4 2022. In total, its net income for the period hit $22.4 million, up by 12.9% when compared to the $19.9 million result from the same period the prior year. Basic earnings per share and diluted earnings per share in Q4 2022 jumped by 10.4% and 11.8% to $1.17 and $1.14 respectively.