Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2013 | Nov. 05, 2013 | |
Document and Entity Information | ' | ' |
Entity Registrant Name | 'MONARCH CASINO & RESORT INC | ' |
Entity Central Index Key | '0000907242 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 30-Sep-13 | ' |
Amendment Flag | 'false | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Filer Category | 'Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 16,476,435 |
Document Fiscal Year Focus | '2013 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Income (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Revenues | ' | ' | ' | ' |
Casino | $38,037,571 | $36,948,650 | $114,824,877 | $94,123,947 |
Food and beverage | 12,791,309 | 12,332,708 | 37,176,442 | 34,425,328 |
Hotel | 6,603,181 | 6,174,337 | 18,282,758 | 15,847,957 |
Other | 2,446,565 | 2,306,289 | 7,091,298 | 6,688,929 |
Gross revenues | 59,878,626 | 57,761,984 | 177,375,375 | 151,086,161 |
Less promotional allowances | -10,889,147 | -11,733,758 | -33,130,165 | -29,687,525 |
Net revenues | 48,989,479 | 46,028,226 | 144,245,210 | 121,398,636 |
Operating expenses | ' | ' | ' | ' |
Casino | 15,200,678 | 14,786,460 | 44,629,703 | 38,552,122 |
Food and beverage | 5,162,904 | 4,639,880 | 15,001,802 | 13,704,645 |
Hotel | 1,802,479 | 1,478,601 | 4,934,913 | 4,320,489 |
Other | 816,955 | 784,576 | 2,381,779 | 2,276,641 |
Selling, general and administrative | 13,518,287 | 12,358,945 | 38,432,152 | 34,992,456 |
Depreciation and amortization | 3,549,106 | 4,647,002 | 12,572,414 | 12,282,291 |
Acquisition expenses | ' | 455,000 | ' | 2,155,522 |
Total operating expenses | 40,050,409 | 39,150,464 | 117,952,763 | 108,284,166 |
Income from operations | 8,939,070 | 6,877,762 | 26,292,447 | 13,114,470 |
Other expenses | ' | ' | ' | ' |
Interest expense | -411,243 | -490,973 | -1,493,570 | -1,396,632 |
Total other expense | -411,243 | -490,973 | -1,493,570 | -1,396,632 |
Income before income taxes | 8,527,827 | 6,386,789 | 24,798,877 | 11,717,838 |
Provision for income taxes | -3,008,318 | -2,249,708 | -8,897,128 | -4,146,633 |
Net income | $5,519,509 | $4,137,081 | $15,901,749 | $7,571,205 |
Net income | ' | ' | ' | ' |
Basic (in dollars per share) | $0.34 | $0.26 | $0.98 | $0.47 |
Diluted (in dollars per share) | $0.32 | $0.25 | $0.95 | $0.47 |
Weighted average number of common shares and potential common shares outstanding | ' | ' | ' | ' |
Basic (in shares) | 16,388,835 | 16,141,492 | 16,243,555 | 16,139,582 |
Diluted (in shares) | 17,180,187 | 16,234,158 | 16,799,224 | 16,248,588 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Current assets | ' | ' |
Cash and cash equivalents | $17,511,498 | $19,043,213 |
Receivables, net | 2,231,677 | 2,456,883 |
Income taxes receivable | 418,471 | ' |
Inventories | 2,460,004 | 2,382,802 |
Prepaid expenses | 2,899,528 | 2,636,422 |
Deferred income taxes | 5,425,848 | 5,425,848 |
Total current assets | 30,947,026 | 31,945,168 |
Property and equipment | ' | ' |
Land | 27,914,847 | 27,914,847 |
Land improvements | 6,561,729 | 6,561,729 |
Buildings | 150,843,298 | 150,843,298 |
Building improvements | 11,681,100 | 11,681,100 |
Furniture and equipment | 140,401,470 | 132,946,374 |
Leasehold improvements | 1,346,965 | 1,346,965 |
Gross property and equipment | 338,749,409 | 331,294,313 |
Less accumulated depreciation and amortization | -163,258,754 | -152,868,719 |
Net property and equipment | 175,490,655 | 178,425,594 |
Other assets | ' | ' |
Goodwill | 25,110,810 | 25,110,810 |
Intangible assets, net | 8,787,238 | 10,204,691 |
Deferred income taxes | 1,214,113 | 1,214,113 |
Other assets, net | 990,740 | 1,219,579 |
Total other assets | 36,102,901 | 37,749,193 |
Total assets | 242,540,582 | 248,119,955 |
Current liabilities | ' | ' |
Accounts payable | 8,065,819 | 8,061,570 |
Accrued expenses | 17,489,171 | 17,836,194 |
Income taxes payable | ' | 274,401 |
Total current liabilities | 25,554,990 | 26,172,165 |
Long-term debt | 56,300,000 | 81,100,000 |
Total liabilities | 81,854,990 | 107,272,165 |
Stockholders' equity | ' | ' |
Preferred stock, $.01 par value, 10,000,000 shares authorized; none issued | ' | ' |
Common stock, $.01 par value, 30,000,000 shares authorized; 19,096,300 shares issued; 16,454,104 outstanding at September 30, 2013 and 16,147,324 at December 31, 2012 | 190,963 | 190,963 |
Additional paid-in capital | 30,495,639 | 34,363,690 |
Treasury stock, 2,642,196 shares at September 30, 2013 and 2,948,976 at December 31, 2012, at cost | -40,501,942 | -48,306,046 |
Retained earnings | 170,500,932 | 154,599,183 |
Total stockholders' equity | 160,685,592 | 140,847,790 |
Total liabilities and stockholders' equity | $242,540,582 | $248,119,955 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Condensed Consolidated Balance Sheets | ' | ' |
Preferred stock, par value (in dollars per share) | $0.01 | $0.01 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value (in dollars per share) | $0.01 | $0.01 |
Common stock, shares authorized | 30,000,000 | 30,000,000 |
Common stock, shares issued | 19,096,300 | 19,096,300 |
Common stock, shares outstanding | 16,454,104 | 16,147,324 |
Treasury stock, shares | 2,642,196 | 2,948,976 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Cash Flows (USD $) | 9 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
Cash flows from operating activities: | ' | ' |
Net income | $15,901,749 | $7,571,205 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation and amortization | 12,572,414 | 12,282,291 |
Amortization of deferred loan costs | 228,839 | 228,191 |
Stock-based compensation | 816,636 | 938,251 |
(Recoveries) provision for bad debts | -73,871 | 84,913 |
Gain on disposal of assets | ' | -3,279 |
Deferred income taxes | ' | 414,850 |
Changes in operating assets and liabilities: | ' | ' |
Receivables | 299,077 | -34,370 |
Inventories | -77,202 | 118,907 |
Prepaid expenses | -263,106 | 284,589 |
Accounts payable | 4,249 | 148,455 |
Accrued expenses | -347,023 | -299,619 |
Income taxes | -692,872 | -1,051,112 |
Net cash provided by operating activities | 28,368,890 | 20,683,272 |
Cash flows from investing activities: | ' | ' |
Proceeds from sale of assets | ' | 11,200 |
Acquisition of property and equipment | -8,220,022 | -7,954,355 |
Net cash paid for the Riviera Black Hawk acquisition | ' | -66,746,605 |
Net cash used in investing activities | -8,220,022 | -74,689,760 |
Cash flows from financing activities: | ' | ' |
Proceeds from exercise of stock options | 3,119,417 | 13,336 |
Principal payments on long-term debt | -24,800,000 | -17,040,000 |
Borrowings under credit facility | ' | 74,460,000 |
Net cash (used in) provided by financing activities | -21,680,583 | 57,433,336 |
Net (decrease) increase in cash | -1,531,715 | 3,426,848 |
Cash and cash equivalents at beginning of period | 19,043,213 | 13,582,659 |
Cash and cash equivalents at end of period | 17,511,498 | 17,009,507 |
Supplemental disclosure of cash flow information: | ' | ' |
Cash paid for interest | 1,233,965 | 1,089,870 |
Cash paid for income taxes | $9,590,000 | $5,500,000 |
SUMMARY_OF_SIGNIFICANT_ACCOUNT
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended | ||||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ' | ||||||||||||||||||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ' | ||||||||||||||||||||||||||||
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||||||||||||||||||||||||
Basis of Presentation: | |||||||||||||||||||||||||||||
Monarch Casino & Resort, Inc., was incorporated in 1993 and through its wholly-owned subsidiary, Golden Road Motor Inn, Inc. (“Golden Road”), owns and operates the Atlantis Casino Resort Spa, a hotel/casino facility in Reno, Nevada (the “Atlantis”). Monarch’s wholly owned subsidiaries, High Desert Sunshine, Inc. (“High Desert”) and Golden North, Inc. (“Golden North”), each own separate parcels of land located proximate to the Atlantis. Monarch’s wholly owned subsidiary Monarch Growth Inc. (“Monarch Growth”), formed in 2011, acquired Riviera Black Hawk, Inc., owner of the Riviera Black Hawk Casino (collectively “Monarch Black Hawk”) on April 26, 2012. Riviera Black Hawk Casino was renamed Monarch Casino Black Hawk in October 2013. Monarch Growth also owns a parcel of land in Black Hawk, Colorado contiguous to the Riviera Black Hawk Casino. The Company has included the results of Black Hawk in its unaudited condensed consolidated financial statements since the date of acquisition. | |||||||||||||||||||||||||||||
Monarch’s wholly owned subsidiary Monarch Interactive, Inc. (“Monarch Interactive”) was formed on January 4, 2012 and received approval from the Nevada Gaming Commission on August 23, 2012, which approval was extended on February 26, 2013 and August 22, 2013, each for an additional six month period, pending commencement of operations, for a license as an operator of interactive gaming. Before the license can be issued, a number of conditions must be met and before operations can commence, the Company must enter into contracts with a licensed interactive gaming service provider with an approved system. None of these conditions have occurred, and Monarch Interactive is not currently engaged in any operating activities. In Nevada, legal interactive gaming is currently limited to intrastate poker. | |||||||||||||||||||||||||||||
The unaudited condensed consolidated financial statements include the accounts of Monarch and its subsidiaries. Intercompany balances and transactions are eliminated. | |||||||||||||||||||||||||||||
Unless otherwise indicated, “Monarch,” “Company,” “we,” “our” and “us” refer to Monarch Casino & Resort, Inc. and its subsidiaries. | |||||||||||||||||||||||||||||
Interim Financial Statements: | |||||||||||||||||||||||||||||
The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management of the Company, all adjustments considered necessary for a fair presentation are included. Operating results for the three and nine months ended September 30, 2013 are not necessarily indicative of the results that may be expected for the year ending December 31, 2013. | |||||||||||||||||||||||||||||
The balance sheet at December 31, 2012 has been derived from the audited financial statements at that date but does not include all of the information and footnotes required by U.S. generally accepted accounting principles for complete financial statements. For further information, refer to the consolidated financial statements and footnotes thereto included in the Company’s annual report on Form 10-K for the year ended December 31, 2012. | |||||||||||||||||||||||||||||
Correction of Immaterial Error and Reclassifications: | |||||||||||||||||||||||||||||
During the second quarter of 2013, the Company identified that immaterial amounts of promotional items provided to its patrons including free play and cash back awards to casino customers were improperly recorded as selling, general and administrative expenses instead of being recorded as a direct offset to revenue. In accordance with ASC 605-50, Revenue Recognition, free play and cash vouchers should be recorded as an offset to revenues instead of being reported as an expense. Additionally, $11,000 was reclassified between the Operating expenses and Other expenses in the three months ended September 30, 2012. The following table compares previously reported net revenues and operating expenses to as adjusted amounts, reflecting the reclassification of immaterial promotional amounts in conformity with generally accepted accounting principles (in thousands): | |||||||||||||||||||||||||||||
Three months ended | Three months ended | Nine months ended | |||||||||||||||||||||||||||
31-Mar-13 | 30-Sep-12 | 30-Sep-12 | |||||||||||||||||||||||||||
Previously | Correction | As adjusted | Previously | Correction | As | Previously | Correction | As | |||||||||||||||||||||
reported | reported | adjusted | reported | adjusted | |||||||||||||||||||||||||
Net Revenues | $ | 47,644 | $ | (2,039 | ) | $ | 45,605 | $ | 47,862 | $ | (1,834 | ) | $ | 46,028 | $ | 126,708 | $ | (5,310 | ) | $ | 121,398 | ||||||||
Operating Expenses | 40,459 | (2,039 | ) | 38,420 | 40,995 | (1,845 | ) | 39,150 | 113,594 | (5,310 | ) | 108,284 | |||||||||||||||||
The reclassifications had an immaterial effect on the previously reported income from operations and consolidated Adjusted EBITDA and no effect on previously reported, net income or cash flows of the Company. Additionally, the Company reclassified approximately $0.2 million and $0.6 million of stock-based compensation expense from the Atlantis Adjusted EBITDA segment to the Corporate and other segment for the three and nine months ended September 30, 2012, respectively. This reclassification had no effect on Consolidated Adjusted EBITDA. The Company has evaluated the change in presentation on prior period financial statements taking into account the requirements of the Securities and Exchange Commission (SEC) Staff Accounting Bulletin No. 108, Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements (SAB 108). In accordance with the relevant guidance, we evaluated the materiality of the error from a qualitative and quantitative perspective. Based on such evaluation, we concluded that correcting the error did not have a material impact on any individual prior period financial statement or affect the trend of financial results. As provided by SAB 108, the portion of the immaterial error and reclassification that impacts previously reported net revenues and operating expenses for the three month ended March 31, 2013, and the annual and quarterly periods for the years ended December 31, 2012 and 2011 will not require the previously filed annual reports on Form 10-K or quarterly reports on Form 10-Q to be amended and the correction is permitted to be made the next time we file our prior period financial statements. | |||||||||||||||||||||||||||||
Fair Value of Financial Instruments: | |||||||||||||||||||||||||||||
The estimated fair value of the Company’s financial instruments has been determined by the Company, using available market information and valuation methodologies. However, considerable judgment is required to develop the estimates of fair value; thus, the estimates provided herein are not necessarily indicative of the amounts that the Company could realize in a current market exchange. | |||||||||||||||||||||||||||||
The carrying amounts of cash, receivables, accounts payable and accrued expenses approximate fair value because of the short-term nature of these instruments. |
STOCKBASED_COMPENSATION
STOCK-BASED COMPENSATION | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
STOCK-BASED COMPENSATION | ' | |||||||||||||
STOCK-BASED COMPENSATION | ' | |||||||||||||
NOTE 2. STOCK-BASED COMPENSATION | ||||||||||||||
The Company accounts for its stock-based compensation in accordance with the authoritative guidance requiring the compensation cost relating to share-based payment transactions be recognized in the Company’s consolidated statements of income. | ||||||||||||||
Reported stock-based compensation expense is classified as follows: | ||||||||||||||
Three months ended | Nine months ended | |||||||||||||
September 30, | September 30, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
Casino | $ | 15,270 | $ | 17,033 | $ | 47,359 | $ | 45,025 | ||||||
Food and beverage | 19,330 | 17,829 | 52,715 | 53,209 | ||||||||||
Hotel | (12,021 | ) | 5,095 | (5,680 | ) | 13,207 | ||||||||
Selling, general and administrative | 271,802 | 312,943 | 722,242 | 826,810 | ||||||||||
Total stock-based compensation, before taxes | 294,381 | 352,900 | 816,636 | 938,251 | ||||||||||
Tax benefit | (103,033 | ) | (123,515 | ) | (285,823 | ) | (328,388 | ) | ||||||
Total stock-based compensation, net of tax | $ | 191,348 | $ | 229,385 | $ | 530,813 | $ | 609,863 | ||||||
EARNINGS_PER_SHARE
EARNINGS PER SHARE | 9 Months Ended | |||||||||||
Sep. 30, 2013 | ||||||||||||
EARNINGS PER SHARE | ' | |||||||||||
EARNINGS PER SHARE | ' | |||||||||||
NOTE 3. EARNINGS PER SHARE | ||||||||||||
Basic earnings per share is computed by dividing reported net earnings by the weighted-average number of common shares outstanding during the period. Diluted earnings per share reflect the additional dilution for all potentially dilutive securities such as stock options. The following is a reconciliation of the number of shares (denominator) used in the basic and diluted earnings per share computations: | ||||||||||||
Shares in thousands | ||||||||||||
Three months ended September 30, | ||||||||||||
2013 | 2012 | |||||||||||
Shares | Per Share Amount | Shares | Per Share Amount | |||||||||
Basic | 16,389 | $ | 0.34 | 16,141 | $ | 0.26 | ||||||
Effect of dilutive stock options | 791 | (0.02 | ) | 93 | (0.01 | ) | ||||||
Diluted | 17,180 | $ | 0.32 | 16,234 | $ | 0.25 | ||||||
Nine months ended September 30, | ||||||||||||
2013 | 2012 | |||||||||||
Shares | Per Share Amount | Shares | Per Share Amount | |||||||||
Basic | 16,244 | $ | 0.98 | 16,140 | $ | 0.47 | ||||||
Effect of dilutive stock options | 555 | (0.03 | ) | 109 | — | |||||||
Diluted | 16,799 | $ | 0.95 | 16,249 | $ | 0.47 | ||||||
Excluded from the computation of diluted earnings per share are options where the exercise prices are greater than the market price as their effects would be anti-dilutive in the computation of diluted earnings per share. For the calculation of earnings per share for the three and nine months ended September 30, 2013, approximately 308,000 and 540,000 shares, respectively, were excluded. For the calculation of earnings per share for the three and nine months ended September 30, 2012, approximately 2,391,000 and 2,198,000 shares respectively, were excluded. |
NEW_ACCOUNTING_PRONOUNCEMENTS
NEW ACCOUNTING PRONOUNCEMENTS | 9 Months Ended |
Sep. 30, 2013 | |
NEW ACCOUNTING PRONOUNCEMENTS | ' |
NEW ACCOUNTING PRONOUNCEMENTS | ' |
NOTE 4. NEW ACCOUNTING PRONOUNCEMENTS | |
In December 2011, the Financial Accounting Standards Board (“FASB”) issued amendments to enhance disclosures about offsetting and related arrangements. This information will enable the users of the financial statements to evaluate the effect or potential effect of netting arrangements on an entity’s financial position, including the effect or potential effect of rights of setoff associated with certain financial and derivative instruments. The Company adopted this standard on January 1, 2013 which did not have a material effect on the Company’s consolidated financial statements. | |
In July 2013, the FASB issued an accounting standards update that amends the presentation requirements of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. The update would require an unrecognized tax benefit, or a portion of an unrecognized tax benefit to be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward in most cases. The standard update is effective for our 2014 financial statements. We are currently evaluating the impact, if any, of adopting this statement on our consolidated financial statements. | |
A variety of proposed or otherwise potential accounting standards are currently under review and study by standard-setting organizations and certain regulatory agencies. Because of the tentative and preliminary nature of such proposed standards, we have not yet determined the effect, if any, that the implementation of any such proposed or revised standards would have on the Company’s consolidated financial statements. |
RELATED_PARTY_TRANSACTIONS
RELATED PARTY TRANSACTIONS | 9 Months Ended |
Sep. 30, 2013 | |
RELATED PARTY TRANSACTIONS | ' |
RELATED PARTY TRANSACTIONS | ' |
NOTE 5. RELATED PARTY TRANSACTIONS | |
The shopping center adjacent to the Atlantis (the “Shopping Center”) is owned by Biggest Little Investments, L.P. (“BLI”) whose general partner is Maxum, L.L.C. (“Maxum”). John Farahi, Bob Farahi and Ben Farahi each individually own non-controlling interests in BLI and Maxum. John Farahi is Co-Chairman of the Board, Chief Executive Officer, Secretary, and a Director of Monarch. Bob Farahi is Co-Chairman of the Board, President, and a Director of Monarch. | |
In addition, we share a driveway with and lease approximately 37,000 square-feet from the Shopping Center for a minimum lease term of 15 years at an annual rent of $340,000 plus common area expenses, subject to increase every year beginning in the 61st month based on the Consumer Price Index. We have the option to renew the lease for three individual five-year terms, and at the end of the extension periods, we have the option to purchase the leased driveway section of the Shopping Center. During the three and nine months ended September 30, 2013 and 2012, we paid $85,200 and $255,600 in rent, respectively, plus a portion of operating expenses related to this lease. | |
We occasionally lease billboard advertising space and storage from affiliates of our controlling stockholders and paid $13,850 and $69,550 for the three and nine months ended September 30, 2013, respectively, and paid $10,900 and $100,700 for the three and nine months ended September 30, 2012, respectively. |
LONGTERM_DEBT
LONG-TERM DEBT | 9 Months Ended | ||||
Sep. 30, 2013 | |||||
LONG-TERM DEBT | ' | ||||
LONG-TERM DEBT | ' | ||||
NOTE 6. LONG-TERM DEBT | |||||
On November 15, 2011, we amended and restated our $60.0 million credit facility with a new facility (the “Credit Facility”). We utilized the Credit Facility to finance the acquisition of Black Hawk and the Credit Facility is available to be used for working capital needs, general corporate purposes and for ongoing capital expenditure requirements. | |||||
In addition to other customary covenants for a facility of this nature, as of September 30, 2013, we are required to maintain a leverage ratio, defined as consolidated debt divided by EBITDA, of no more than 3.0:1 and a fixed charge coverage ratio (EBITDA divided by fixed charges, as defined) of at least 1.15:1. As of September 30, 2013, the Company’s leverage ratio and fixed charge coverage ratios were 1.2:1 and 13.7:1, respectively. | |||||
The Credit Facility is structured to reduce the maximum principal available by $1.5 million each quarter beginning June 30, 2013. As of September 30, 2013, the maximum principal available was $97.0 million. We may permanently reduce the maximum principal available at any time so long as the amount of such reduction is at least $0.5 million and a multiple of $50,000. Maturities of our borrowings for each of the next three years and thereafter as of September 30, 2013 are as follows: | |||||
Amounts in millions | |||||
Year | Maturities | ||||
2013 | $ | — | |||
2014 | — | ||||
2015 | — | ||||
Thereafter | 56.3 | ||||
$ | 56.3 | ||||
At September 30, 2013, our leverage ratio was such that pricing for borrowings under the Credit Facility was LIBOR plus 1.5%. At September 30, 2013 the one-month LIBOR interest rate was 0.18%. The carrying value of the debt outstanding under the Credit Facility approximates fair value because the interest fluctuates with the lender’s prime rate or other market rates of interest. | |||||
TAXES
TAXES | 9 Months Ended |
Sep. 30, 2013 | |
TAXES | ' |
TAXES | ' |
NOTE 7. TAXES | |
For the nine months ended September 30, 2013, the Company’s effective tax rate was 35.9% compared to 35.4% for the nine month period ended September 30, 2012 with the increase in the effective rate attributable to a full nine months results for Monarch Black Hawk in the current year period. Black Hawk’s tax rate is higher due to Colorado taxable income. | |
Sales and Use Tax on Complimentary Meals | |
On March 27, 2008, the Nevada Supreme Court issued a decision in Sparks Nugget, Inc. vs. The State of Nevada Department of Taxation (the “Department”), holding that food purchased for subsequent use in the provision of complimentary and/or employee meals were exempt from use tax. As a result of this decision, refund claims were filed for use taxes paid over the period April 1997 through March 2000 and the period February 2005 through June 2008, on food purchased for subsequent use in complimentary and employee meals at our Nevada casino property. We requested refunds totaling approximately $1.6 million, excluding interest (“the Refunds”). We have not recognized any of these refund amounts. | |
In February 2012, the Department issued a policy directive, requesting that affected taxpayers begin collecting and remitting sales tax on complimentary meals and employee meals effective February 2012 and on June 25, 2012, the Nevada Tax Commission adopted regulations providing for a similar requirement. Subject to these regulations we accrued $0.6 million through June 2013 related to this directive. | |
The Department policy directive was challenged by several affected parties and in June 2013, the Nevada Tax Commission issued a ruling that complimentary and employee meals were no longer subject to sales taxation. Associated with the ruling, the Nevada hotel-casino industry, including the Company, agreed to forego and cause to be withdrawn certain pending use tax refund requests. Pursuant to that agreement, we withdrew our request for the $1.6 million Refunds. As a result of the ruling, we reversed the accumulated sales tax expense accrual totaling $0.6 million in the second quarter. |
SEGMENT_INFORMATION
SEGMENT INFORMATION | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
SEGMENT INFORMATION | ' | |||||||||||||
SEGMENT INFORMATION | ' | |||||||||||||
NOTE 8. SEGMENT INFORMATION | ||||||||||||||
We have two reportable operating segments, the Atlantis and Monarch Black Hawk. The following table highlights our Adjusted EBITDA and reconciles Adjusted EBITDA to net income for the three and nine months ended September 30, 2013 and 2012. | ||||||||||||||
Three months ended September 30, | Nine months ended September 30, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
Net revenue | ||||||||||||||
Atlantis | $ | 37,134,295 | $ | 34,884,096 | $ | 108,429,648 | $ | 102,251,479 | ||||||
Monarch Black Hawk (a) | 11,855,184 | 11,144,130 | 35,815,562 | 19,147,157 | ||||||||||
Total net revenue | $ | 48,989,479 | $ | 46,028,226 | $ | 144,245,210 | $ | 121,398,636 | ||||||
Adjusted EBITDA (b) | ||||||||||||||
Atlantis | $ | 9,749,013 | $ | 8,955,232 | $ | 30,117,875 | $ | 24,548,954 | ||||||
Monarch Black Hawk (a) | 4,088,242 | 4,085,155 | 12,926,192 | 6,631,341 | ||||||||||
13,837,255 | 13,040,387 | 43,044,067 | 31,180,295 | |||||||||||
Corporate and other (c) | (1,054,698 | ) | (707,723 | ) | (3,362,570 | ) | (2,689,761 | ) | ||||||
Total Adjusted EBITDA | 12,782,557 | 12,332,664 | 39,681,497 | 28,490,534 | ||||||||||
Expenses | ||||||||||||||
Stock-based compensation | (294,381 | ) | (352,900 | ) | (816,636 | ) | (938,251 | ) | ||||||
Depreciation and amortization | (3,549,106 | ) | (4,647,002 | ) | (12,572,414 | ) | (12,282,291 | ) | ||||||
Acquisition expenses | — | (455,000 | ) | — | (2,155,522 | ) | ||||||||
Interest expense | (411,243 | ) | (490,973 | ) | (1,493,570 | ) | (1,396,632 | ) | ||||||
Provision for income taxes | (3,008,318 | ) | (2,249,708 | ) | (8,897,128 | ) | (4,146,633 | ) | ||||||
Net Income | $ | 5,519,509 | $ | 4,137,081 | $ | 15,901,749 | $ | 7,571,205 | ||||||
(a) We acquired Monarch Black Hawk on April 26, 2012. | ||||||||||||||
(b) We define Adjusted EBITDA, a non-GAAP measure, for each segment as net income plus provision for income taxes, interest expense, acquisition expense, management fee income or expense, gain or loss on disposal of assets, depreciation and amortization and stock-based compensation. Adjusted 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, as an alternative to cash flows from operating activities (as determined in accordance with generally accepted accounting principles) or as a measure of liquidity. This item enables comparison of the Company’s performance with the performance of other companies 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. | ||||||||||||||
(c) Corporate and other represents unallocated payroll, professional fees, travel expenses and other general and administrative expenses not directly related to our casino and hotel operations. | ||||||||||||||
SUMMARY_OF_SIGNIFICANT_ACCOUNT1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended | ||||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ' | ||||||||||||||||||||||||||||
Basis of Presentation: | ' | ||||||||||||||||||||||||||||
Basis of Presentation: | |||||||||||||||||||||||||||||
Monarch Casino & Resort, Inc., was incorporated in 1993 and through its wholly-owned subsidiary, Golden Road Motor Inn, Inc. (“Golden Road”), owns and operates the Atlantis Casino Resort Spa, a hotel/casino facility in Reno, Nevada (the “Atlantis”). Monarch’s wholly owned subsidiaries, High Desert Sunshine, Inc. (“High Desert”) and Golden North, Inc. (“Golden North”), each own separate parcels of land located proximate to the Atlantis. Monarch’s wholly owned subsidiary Monarch Growth Inc. (“Monarch Growth”), formed in 2011, acquired Riviera Black Hawk, Inc., owner of the Riviera Black Hawk Casino (collectively “Monarch Black Hawk”) on April 26, 2012. Riviera Black Hawk Casino was renamed Monarch Casino Black Hawk in October 2013. Monarch Growth also owns a parcel of land in Black Hawk, Colorado contiguous to the Riviera Black Hawk Casino. The Company has included the results of Black Hawk in its unaudited condensed consolidated financial statements since the date of acquisition. | |||||||||||||||||||||||||||||
Monarch’s wholly owned subsidiary Monarch Interactive, Inc. (“Monarch Interactive”) was formed on January 4, 2012 and received approval from the Nevada Gaming Commission on August 23, 2012, which approval was extended on February 26, 2013 and August 22, 2013, each for an additional six month period, pending commencement of operations, for a license as an operator of interactive gaming. Before the license can be issued, a number of conditions must be met and before operations can commence, the Company must enter into contracts with a licensed interactive gaming service provider with an approved system. None of these conditions have occurred, and Monarch Interactive is not currently engaged in any operating activities. In Nevada, legal interactive gaming is currently limited to intrastate poker. | |||||||||||||||||||||||||||||
The unaudited condensed consolidated financial statements include the accounts of Monarch and its subsidiaries. Intercompany balances and transactions are eliminated. | |||||||||||||||||||||||||||||
Unless otherwise indicated, “Monarch,” “Company,” “we,” “our” and “us” refer to Monarch Casino & Resort, Inc. and its subsidiaries. | |||||||||||||||||||||||||||||
Interim Financial Statements: | |||||||||||||||||||||||||||||
The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management of the Company, all adjustments considered necessary for a fair presentation are included. Operating results for the three and nine months ended September 30, 2013 are not necessarily indicative of the results that may be expected for the year ending December 31, 2013. | |||||||||||||||||||||||||||||
The balance sheet at December 31, 2012 has been derived from the audited financial statements at that date but does not include all of the information and footnotes required by U.S. generally accepted accounting principles for complete financial statements. For further information, refer to the consolidated financial statements and footnotes thereto included in the Company’s annual report on Form 10-K for the year ended December 31, 2012. | |||||||||||||||||||||||||||||
Correction of Immaterial Error and Reclassifications: | ' | ||||||||||||||||||||||||||||
Correction of Immaterial Error and Reclassifications: | |||||||||||||||||||||||||||||
During the second quarter of 2013, the Company identified that immaterial amounts of promotional items provided to its patrons including free play and cash back awards to casino customers were improperly recorded as selling, general and administrative expenses instead of being recorded as a direct offset to revenue. In accordance with ASC 605-50, Revenue Recognition, free play and cash vouchers should be recorded as an offset to revenues instead of being reported as an expense. Additionally, $11,000 was reclassified between the Operating expenses and Other expenses in the three months ended September 30, 2012. The following table compares previously reported net revenues and operating expenses to as adjusted amounts, reflecting the reclassification of immaterial promotional amounts in conformity with generally accepted accounting principles (in thousands): | |||||||||||||||||||||||||||||
Three months ended | Three months ended | Nine months ended | |||||||||||||||||||||||||||
31-Mar-13 | 30-Sep-12 | 30-Sep-12 | |||||||||||||||||||||||||||
Previously | Correction | As adjusted | Previously | Correction | As | Previously | Correction | As | |||||||||||||||||||||
reported | reported | adjusted | reported | adjusted | |||||||||||||||||||||||||
Net Revenues | $ | 47,644 | $ | (2,039 | ) | $ | 45,605 | $ | 47,862 | $ | (1,834 | ) | $ | 46,028 | $ | 126,708 | $ | (5,310 | ) | $ | 121,398 | ||||||||
Operating Expenses | 40,459 | (2,039 | ) | 38,420 | 40,995 | (1,845 | ) | 39,150 | 113,594 | (5,310 | ) | 108,284 | |||||||||||||||||
The reclassifications had an immaterial effect on the previously reported income from operations and consolidated Adjusted EBITDA and no effect on previously reported, net income or cash flows of the Company. Additionally, the Company reclassified approximately $0.2 million and $0.6 million of stock-based compensation expense from the Atlantis Adjusted EBITDA segment to the Corporate and other segment for the three and nine months ended September 30, 2012, respectively. This reclassification had no effect on Consolidated Adjusted EBITDA. The Company has evaluated the change in presentation on prior period financial statements taking into account the requirements of the Securities and Exchange Commission (SEC) Staff Accounting Bulletin No. 108, Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements (SAB 108). In accordance with the relevant guidance, we evaluated the materiality of the error from a qualitative and quantitative perspective. Based on such evaluation, we concluded that correcting the error did not have a material impact on any individual prior period financial statement or affect the trend of financial results. As provided by SAB 108, the portion of the immaterial error and reclassification that impacts previously reported net revenues and operating expenses for the three month ended March 31, 2013, and the annual and quarterly periods for the years ended December 31, 2012 and 2011 will not require the previously filed annual reports on Form 10-K or quarterly reports on Form 10-Q to be amended and the correction is permitted to be made the next time we file our prior period financial statements. | |||||||||||||||||||||||||||||
Fair Value of Financial Instruments: | ' | ||||||||||||||||||||||||||||
Fair Value of Financial Instruments: | |||||||||||||||||||||||||||||
The estimated fair value of the Company’s financial instruments has been determined by the Company, using available market information and valuation methodologies. However, considerable judgment is required to develop the estimates of fair value; thus, the estimates provided herein are not necessarily indicative of the amounts that the Company could realize in a current market exchange. | |||||||||||||||||||||||||||||
The carrying amounts of cash, receivables, accounts payable and accrued expenses approximate fair value because of the short-term nature of these instruments. |
SUMMARY_OF_SIGNIFICANT_ACCOUNT2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 9 Months Ended | ||||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ' | ||||||||||||||||||||||||||||
Schedule of comparison of previously reported net revenues and operating expenses to as adjusted amounts, reflecting the reclassification of immaterial promotional amounts in conformity with generally accepted accounting principles | ' | ||||||||||||||||||||||||||||
The following table compares previously reported net revenues and operating expenses to as adjusted amounts, reflecting the reclassification of immaterial promotional amounts in conformity with generally accepted accounting principles (in thousands): | |||||||||||||||||||||||||||||
Three months ended | Three months ended | Nine months ended | |||||||||||||||||||||||||||
31-Mar-13 | 30-Sep-12 | 30-Sep-12 | |||||||||||||||||||||||||||
Previously | Correction | As adjusted | Previously | Correction | As | Previously | Correction | As | |||||||||||||||||||||
reported | reported | adjusted | reported | adjusted | |||||||||||||||||||||||||
Net Revenues | $ | 47,644 | $ | (2,039 | ) | $ | 45,605 | $ | 47,862 | $ | (1,834 | ) | $ | 46,028 | $ | 126,708 | $ | (5,310 | ) | $ | 121,398 | ||||||||
Operating Expenses | 40,459 | (2,039 | ) | 38,420 | 40,995 | (1,845 | ) | 39,150 | 113,594 | (5,310 | ) | 108,284 |
STOCKBASED_COMPENSATION_Tables
STOCK-BASED COMPENSATION (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
STOCK-BASED COMPENSATION | ' | |||||||||||||
Schedule of stock-based compensation expense | ' | |||||||||||||
Three months ended | Nine months ended | |||||||||||||
September 30, | September 30, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
Casino | $ | 15,270 | $ | 17,033 | $ | 47,359 | $ | 45,025 | ||||||
Food and beverage | 19,330 | 17,829 | 52,715 | 53,209 | ||||||||||
Hotel | (12,021 | ) | 5,095 | (5,680 | ) | 13,207 | ||||||||
Selling, general and administrative | 271,802 | 312,943 | 722,242 | 826,810 | ||||||||||
Total stock-based compensation, before taxes | 294,381 | 352,900 | 816,636 | 938,251 | ||||||||||
Tax benefit | (103,033 | ) | (123,515 | ) | (285,823 | ) | (328,388 | ) | ||||||
Total stock-based compensation, net of tax | $ | 191,348 | $ | 229,385 | $ | 530,813 | $ | 609,863 |
EARNINGS_PER_SHARE_Tables
EARNINGS PER SHARE (Tables) | 9 Months Ended | |||||||||||
Sep. 30, 2013 | ||||||||||||
EARNINGS PER SHARE | ' | |||||||||||
Schedule of reconciliation of the number of shares (denominator) used in the basic and diluted earnings per share computations | ' | |||||||||||
Shares in thousands | ||||||||||||
Three months ended September 30, | ||||||||||||
2013 | 2012 | |||||||||||
Shares | Per Share Amount | Shares | Per Share Amount | |||||||||
Basic | 16,389 | $ | 0.34 | 16,141 | $ | 0.26 | ||||||
Effect of dilutive stock options | 791 | (0.02 | ) | 93 | (0.01 | ) | ||||||
Diluted | 17,180 | $ | 0.32 | 16,234 | $ | 0.25 | ||||||
Nine months ended September 30, | ||||||||||||
2013 | 2012 | |||||||||||
Shares | Per Share Amount | Shares | Per Share Amount | |||||||||
Basic | 16,244 | $ | 0.98 | 16,140 | $ | 0.47 | ||||||
Effect of dilutive stock options | 555 | (0.03 | ) | 109 | — | |||||||
Diluted | 16,799 | $ | 0.95 | 16,249 | $ | 0.47 |
LONGTERM_DEBT_Tables
LONG-TERM DEBT (Tables) | 9 Months Ended | ||||
Sep. 30, 2013 | |||||
LONG-TERM DEBT | ' | ||||
Schedule of maturities of borrowings | ' | ||||
Amounts in millions | |||||
Year | Maturities | ||||
2013 | $ | — | |||
2014 | — | ||||
2015 | — | ||||
Thereafter | 56.3 | ||||
$ | 56.3 |
SEGMENT_INFORMATION_Tables
SEGMENT INFORMATION (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
SEGMENT INFORMATION | ' | |||||||||||||
Schedule of adjusted EBITDA and reconciliation of adjusted EBITDA to net income | ' | |||||||||||||
Three months ended September 30, | Nine months ended September 30, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
Net revenue | ||||||||||||||
Atlantis | $ | 37,134,295 | $ | 34,884,096 | $ | 108,429,648 | $ | 102,251,479 | ||||||
Monarch Black Hawk (a) | 11,855,184 | 11,144,130 | 35,815,562 | 19,147,157 | ||||||||||
Total net revenue | $ | 48,989,479 | $ | 46,028,226 | $ | 144,245,210 | $ | 121,398,636 | ||||||
Adjusted EBITDA (b) | ||||||||||||||
Atlantis | $ | 9,749,013 | $ | 8,955,232 | $ | 30,117,875 | $ | 24,548,954 | ||||||
Monarch Black Hawk (a) | 4,088,242 | 4,085,155 | 12,926,192 | 6,631,341 | ||||||||||
13,837,255 | 13,040,387 | 43,044,067 | 31,180,295 | |||||||||||
Corporate and other (c) | (1,054,698 | ) | (707,723 | ) | (3,362,570 | ) | (2,689,761 | ) | ||||||
Total Adjusted EBITDA | 12,782,557 | 12,332,664 | 39,681,497 | 28,490,534 | ||||||||||
Expenses | ||||||||||||||
Stock-based compensation | (294,381 | ) | (352,900 | ) | (816,636 | ) | (938,251 | ) | ||||||
Depreciation and amortization | (3,549,106 | ) | (4,647,002 | ) | (12,572,414 | ) | (12,282,291 | ) | ||||||
Acquisition expenses | — | (455,000 | ) | — | (2,155,522 | ) | ||||||||
Interest expense | (411,243 | ) | (490,973 | ) | (1,493,570 | ) | (1,396,632 | ) | ||||||
Provision for income taxes | (3,008,318 | ) | (2,249,708 | ) | (8,897,128 | ) | (4,146,633 | ) | ||||||
Net Income | $ | 5,519,509 | $ | 4,137,081 | $ | 15,901,749 | $ | 7,571,205 | ||||||
(a) We acquired Monarch Black Hawk on April 26, 2012. | ||||||||||||||
(b) We define Adjusted EBITDA, a non-GAAP measure, for each segment as net income plus provision for income taxes, interest expense, acquisition expense, management fee income or expense, gain or loss on disposal of assets, depreciation and amortization and stock-based compensation. Adjusted 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, as an alternative to cash flows from operating activities (as determined in accordance with generally accepted accounting principles) or as a measure of liquidity. This item enables comparison of the Company’s performance with the performance of other companies 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. | ||||||||||||||
(c) Corporate and other represents unallocated payroll, professional fees, travel expenses and other general and administrative expenses not directly related to our casino and hotel operations. | ||||||||||||||
SUMMARY_OF_SIGNIFICANT_ACCOUNT3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) | 0 Months Ended | |
Aug. 22, 2013 | Feb. 26, 2013 | |
item | ||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ' | ' |
Number of conditions, occurrence of which is required for issuance of license | ' | 0 |
Additional period for which the approval was extended | '6 months | '6 months |
SUMMARY_OF_SIGNIFICANT_ACCOUNT4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 2) (USD $) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2013 | Mar. 31, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Correction of Immaterial Error and Reclassifications: | ' | ' | ' | ' | ' |
Net Revenues | $48,989,479 | $45,605,000 | $46,028,226 | $144,245,210 | $121,398,636 |
Operating Expenses | 40,050,409 | 38,420,000 | 39,150,464 | 117,952,763 | 108,284,166 |
Reclassification of stock-based compensation expense from Atlantis Adjusted EBITDA segment to the corporate and other segment | ' | ' | 200,000 | ' | 600,000 |
Previously reported | ' | ' | ' | ' | ' |
Correction of Immaterial Error and Reclassifications: | ' | ' | ' | ' | ' |
Net Revenues | ' | 47,644,000 | 47,862,000 | ' | 126,708,000 |
Operating Expenses | ' | 40,459,000 | 40,995,000 | ' | 113,594,000 |
Correction | ' | ' | ' | ' | ' |
Correction of Immaterial Error and Reclassifications: | ' | ' | ' | ' | ' |
Reclassification between Operating expenses and Other expenses | ' | ' | 11,000 | ' | ' |
Improper classification of immaterial promotional expenses | Correction | ' | ' | ' | ' | ' |
Correction of Immaterial Error and Reclassifications: | ' | ' | ' | ' | ' |
Net Revenues | ' | -2,039,000 | -1,834,000 | ' | -5,310,000 |
Operating Expenses | ' | ($2,039,000) | ($1,845,000) | ' | ($5,310,000) |
STOCKBASED_COMPENSATION_Detail
STOCK-BASED COMPENSATION (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Stock-based compensation expense | ' | ' | ' | ' |
Total stock-based compensation, before taxes | $294,381 | $352,900 | $816,636 | $938,251 |
Tax benefit | -103,033 | -123,515 | -285,823 | -328,388 |
Total stock-based compensation, net of tax | 191,348 | 229,385 | 530,813 | 609,863 |
Casino | ' | ' | ' | ' |
Stock-based compensation expense | ' | ' | ' | ' |
Total stock-based compensation, before taxes | 15,270 | 17,033 | 47,359 | 45,025 |
Food and beverage | ' | ' | ' | ' |
Stock-based compensation expense | ' | ' | ' | ' |
Total stock-based compensation, before taxes | 19,330 | 17,829 | 52,715 | 53,209 |
Hotel | ' | ' | ' | ' |
Stock-based compensation expense | ' | ' | ' | ' |
Total stock-based compensation, before taxes | -12,021 | 5,095 | -5,680 | 13,207 |
Selling, general and administrative | ' | ' | ' | ' |
Stock-based compensation expense | ' | ' | ' | ' |
Total stock-based compensation, before taxes | $271,802 | $312,943 | $722,242 | $826,810 |
EARNINGS_PER_SHARE_Details
EARNINGS PER SHARE (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Shares | ' | ' | ' | ' |
Basic (in shares) | 16,388,835 | 16,141,492 | 16,243,555 | 16,139,582 |
Effect of dilutive stock options (in shares) | 791,000 | 93,000 | 555,000 | 109,000 |
Diluted (in shares) | 17,180,187 | 16,234,158 | 16,799,224 | 16,248,588 |
Per Share Amount | ' | ' | ' | ' |
Basic (in dollars per share) | $0.34 | $0.26 | $0.98 | $0.47 |
Effect of dilutive stock options (in dollars per share) | ($0.02) | ($0.01) | ($0.03) | ' |
Diluted (in dollars per share) | $0.32 | $0.25 | $0.95 | $0.47 |
Stock options | ' | ' | ' | ' |
Anti-dilutive securities | ' | ' | ' | ' |
Anti-dilutive securities excluded from the computation of diluted earnings per share (in shares) | 308,000 | 2,391,000 | 540,000 | 2,198,000 |
RELATED_PARTY_TRANSACTIONS_Det
RELATED PARTY TRANSACTIONS (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
sqft | item | |||
sqft | ||||
Members of Management Holding Noncontrolling Interests | ' | ' | ' | ' |
RELATED PARTY TRANSACTIONS | ' | ' | ' | ' |
Area of property leased (in square feet) | 37,000 | ' | 37,000 | ' |
Minimum lease term | ' | ' | '15 years | ' |
Annual rent | ' | ' | $340,000 | ' |
Number of terms for which the lease can be renewed | ' | ' | 3 | ' |
Lease term under each renewal | ' | ' | '5 years | ' |
Lease rent paid | 85,200 | 85,200 | 255,600 | 255,600 |
Affiliates of Controlling Stockholders | ' | ' | ' | ' |
RELATED PARTY TRANSACTIONS | ' | ' | ' | ' |
Lease rent paid | $13,850 | $10,900 | $69,550 | $100,700 |
LONGTERM_DEBT_Details
LONG-TERM DEBT (Details) (USD $) | 9 Months Ended | |
Sep. 30, 2013 | Nov. 15, 2011 | |
Maturities of Borrowings Under New Credit Facility | ' | ' |
Thereafter | $56,300,000 | ' |
Total | 56,300,000 | ' |
Credit Facility | ' | ' |
Long-term debt | ' | ' |
Maximum borrowing capacity | 97,000,000 | 60,000,000 |
Multiple which may be used to permanently reduce the maximum borrowing capacity under the credit facility | 50,000 | ' |
Reduction in maximum borrowing capacity | 1,500,000 | ' |
Maturities of Borrowings Under New Credit Facility | ' | ' |
Variable interest rate base | 'LIBOR | ' |
Percentage points added to the reference rate | 1.50% | ' |
One-month LIBOR interest rate (as a percent) | 0.18% | ' |
Credit Facility | Actual | ' | ' |
Long-term debt | ' | ' |
Leverage ratio | 1.2 | ' |
Fixed charge coverage ratio | 13.7 | ' |
Credit Facility | Minimum | ' | ' |
Long-term debt | ' | ' |
Amount in which the maximum borrowing capacity may be permanently reduced | $500,000 | ' |
Credit Facility | Minimum | Requirement | ' | ' |
Long-term debt | ' | ' |
Fixed charge coverage ratio | 1.15 | ' |
Credit Facility | Maximum | Requirement | ' | ' |
Long-term debt | ' | ' |
Leverage ratio | 3 | ' |
TAXES_Details
TAXES (Details) | 9 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
TAXES | ' | ' |
Effective tax rate (as a percent) | 35.90% | 35.40% |
TAXES_Details_2
TAXES (Details 2) (USD $) | 6 Months Ended |
In Millions, unless otherwise specified | Jun. 30, 2013 |
Unrecognized tax benefits and settlements with tax authorities | ' |
Withdrawal of pending use tax refund requests | $1.60 |
Reversal of previously accrued sales tax | 0.6 |
State of Nevada | ' |
Unrecognized tax benefits and settlements with tax authorities | ' |
Amount of requested refund, excluding interest | 1.6 |
Accrued sales tax | $0.60 |
SEGMENT_INFORMATION_Details
SEGMENT INFORMATION (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2013 | Mar. 31, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
item | |||||
SEGMENT INFORMATION | ' | ' | ' | ' | ' |
Number of reportable segments | ' | ' | ' | 2 | ' |
SEGMENT INFORMATION | ' | ' | ' | ' | ' |
Total net revenue | $48,989,479 | $45,605,000 | $46,028,226 | $144,245,210 | $121,398,636 |
Total adjusted EBITDA before corporate expenses | 13,837,255 | ' | 13,040,387 | 43,044,067 | 31,180,295 |
Total Adjusted EBITDA | 12,782,557 | ' | 12,332,664 | 39,681,497 | 28,490,534 |
Expenses: | ' | ' | ' | ' | ' |
Stock-based compensation | -294,381 | ' | -352,900 | -816,636 | -938,251 |
Depreciation and amortization | -3,549,106 | ' | -4,647,002 | -12,572,414 | -12,282,291 |
Acquisition expenses | ' | ' | -455,000 | ' | -2,155,522 |
Interest expense | -411,243 | ' | -490,973 | -1,493,570 | -1,396,632 |
Provision for income taxes | -3,008,318 | ' | -2,249,708 | -8,897,128 | -4,146,633 |
Net income | 5,519,509 | ' | 4,137,081 | 15,901,749 | 7,571,205 |
Atlantis | ' | ' | ' | ' | ' |
SEGMENT INFORMATION | ' | ' | ' | ' | ' |
Total net revenue | 37,134,295 | ' | 34,884,096 | 108,429,648 | 102,251,479 |
Total adjusted EBITDA before corporate expenses | 9,749,013 | ' | 8,955,232 | 30,117,875 | 24,548,954 |
Monarch Black Hawk | ' | ' | ' | ' | ' |
SEGMENT INFORMATION | ' | ' | ' | ' | ' |
Total net revenue | 11,855,184 | ' | 11,144,130 | 35,815,562 | 19,147,157 |
Total adjusted EBITDA before corporate expenses | 4,088,242 | ' | 4,085,155 | 12,926,192 | 6,631,341 |
Corporate and other | ' | ' | ' | ' | ' |
SEGMENT INFORMATION | ' | ' | ' | ' | ' |
Total Adjusted EBITDA | ($1,054,698) | ' | ($707,723) | ($3,362,570) | ($2,689,761) |