Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2023 | May 01, 2023 | |
Document and Entity Information | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Mar. 31, 2023 | |
Entity File Number | 0-22088 | |
Entity Registrant Name | MONARCH CASINO & RESORT, INC | |
Entity Incorporation, State or Country Code | NV | |
Entity Tax Identification Number | 88-0300760 | |
Entity Address, Address Line One | 3800 S. Virginia St. | |
Entity Address, City or Town | Reno | |
Entity Address, State or Province | NV | |
Entity Address, Postal Zip Code | 89502 | |
City Area Code | 775 | |
Local Phone Number | 335-4600 | |
Title of 12(b) Security | Common Stock, $0.01 par value per share | |
Trading Symbol | MCRI | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 19,134,974 | |
Entity Central Index Key | 0000907242 | |
Document Fiscal Year Focus | 2023 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Revenues | ||
Net revenues | $ 116,644 | $ 108,318 |
Operating expenses | ||
Selling, general and administrative | 25,116 | 24,183 |
Depreciation and amortization | 11,337 | 10,516 |
Other operating items, net | 510 | 1,317 |
Total operating expenses | 93,485 | 86,969 |
Income from operations | 23,159 | 21,349 |
Other expense | ||
Interest expense, net | (587) | (650) |
Income before income taxes | 22,572 | 20,699 |
Provision for income taxes | (4,902) | (2,581) |
Net income | $ 17,670 | $ 18,118 |
Earnings per share of common stock | ||
Basic | $ 0.92 | $ 0.96 |
Diluted | $ 0.90 | $ 0.92 |
Weighted average number of common shares and potential common shares outstanding | ||
Basic | 19,215 | 18,868 |
Diluted | 19,654 | 19,592 |
Casino | ||
Revenues | ||
Net revenues | $ 66,905 | $ 62,831 |
Operating expenses | ||
Operating expenses | 25,252 | 22,367 |
Food and beverage | ||
Revenues | ||
Net revenues | 29,317 | 26,047 |
Operating expenses | ||
Operating expenses | 21,937 | 20,731 |
Hotel | ||
Revenues | ||
Net revenues | 15,471 | 15,192 |
Operating expenses | ||
Operating expenses | 6,390 | 5,773 |
Other | ||
Revenues | ||
Net revenues | 4,951 | 4,248 |
Operating expenses | ||
Operating expenses | $ 2,943 | $ 2,082 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Current assets | ||
Cash and cash equivalents | $ 34,430 | $ 38,779 |
Receivables, net | 8,004 | 9,566 |
Income taxes receivable | 24,989 | |
Inventories | 6,933 | 7,558 |
Prepaid expenses | 7,650 | 8,537 |
Total current assets | 57,017 | 89,429 |
Property and equipment, net | 581,360 | 578,050 |
Goodwill | 25,111 | 25,111 |
Intangible assets, net | 321 | 352 |
Total assets | 663,809 | 692,942 |
Current liabilities | ||
Current portion of long-term debt | 6,693 | |
Accounts payable | 15,247 | 14,418 |
Construction accounts payable | 49,543 | 49,957 |
Accrued expenses | 44,235 | 46,037 |
Income taxes payable | 3,651 | |
Short-term lease liability | 649 | 639 |
Total current liabilities | 113,325 | 117,744 |
Deferred income taxes | 23,016 | 23,016 |
Long-term lease liability | 13,062 | 13,228 |
Long-term debt, net | 51,000 | |
Total liabilities | 200,403 | 153,988 |
Stockholders' equity | ||
Preferred stock, $.01 par value, 10,000,000 shares authorized; none issued | ||
Common stock, $.01 par value, 30,000,000 shares authorized; 19,132,599 shares issued and 19,131,641 outstanding at March 31, 2023; 19,096,300 shares issued and 19,093,676 outstanding at December 31, 2022 | 191 | 191 |
Additional paid-in capital | 42,998 | 40,716 |
Treasury stock, 958 shares at March 31, 2023; 2,624 shares at December 31, 2022 | (62) | (170) |
Retained earnings | 420,279 | 498,217 |
Total stockholders' equity | 463,406 | 538,954 |
Total liabilities and stockholders' equity | $ 663,809 | $ 692,942 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Mar. 31, 2023 | Dec. 31, 2022 |
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 | 19,132,599 | 19,096,300 |
Common stock, shares outstanding | 19,131,641 | 19,093,676 |
Treasury stock, shares | 958 | 2,624 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS EQUITY - USD ($) $ in Thousands | Common Stock | Additional Paid-in Capital | Retained Earnings | Treasury Stock | Total |
Balance at Dec. 31, 2021 | $ 191 | $ 41,426 | $ 410,738 | $ (4,341) | $ 448,014 |
Balance (in shares) at Dec. 31, 2021 | 18,764,540 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Exercise of stock options, net | 19 | 2,458 | 2,477 | ||
Exercise of stock options, net (in shares) | 191,035 | ||||
Restricted stock granted | 1,658 | 262 | 1,920 | ||
Restricted stock granted, shares | 19,549 | ||||
Purchase of company common stock | (6,500) | (6,500) | |||
Purchase of company common stock, shares | (100,000) | ||||
Stock-based compensation expense | 1,160 | 1,160 | |||
Net income | 18,118 | 18,118 | |||
Balance at Mar. 31, 2022 | $ 191 | 44,263 | 428,856 | (8,121) | 465,189 |
Balance (in shares) at Mar. 31, 2022 | 18,875,124 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Treasury Stock, Value | 170 | ||||
Balance at Dec. 31, 2022 | $ 191 | 40,716 | 498,217 | (170) | $ 538,954 |
Balance (in shares) at Dec. 31, 2022 | 19,093,676 | 19,093,676 | |||
Increase (Decrease) in Stockholders' Equity | |||||
Exercise of stock options, net | 808 | 108 | $ 916 | ||
Exercise of stock options, net (in shares) | 37,965 | ||||
Payment of dividends | (95,608) | (95,608) | |||
Stock-based compensation expense | 1,474 | 1,474 | |||
Net income | 17,670 | 17,670 | |||
Balance at Mar. 31, 2023 | $ 191 | $ 42,998 | $ 420,279 | $ (62) | $ 463,406 |
Balance (in shares) at Mar. 31, 2023 | 19,131,641 | 19,131,641 | |||
Increase (Decrease) in Stockholders' Equity | |||||
Treasury Stock, Value | $ 62 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Cash flows from operating activities: | ||
Net income | $ 17,670 | $ 18,118 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 11,337 | 10,516 |
Amortization of deferred loan costs | 307 | 359 |
Stock-based compensation | 1,474 | 1,160 |
Stock Based Compensation - Restricted Stock | 50 | |
Provision for bad debts | 13 | 32 |
(Gain) loss on disposition of assets | (25) | |
Non-cash operating lease expense | 5 | (1) |
Changes in operating assets and liabilities: | ||
Receivables | 1,549 | 1,362 |
Income taxes receivable/payable | 28,640 | 2,581 |
Inventories | 625 | 187 |
Prepaid expenses | 887 | 521 |
Accounts payable | 829 | 835 |
Accrued expenses | (1,802) | (257) |
Net cash provided by operating activities | 61,534 | 35,438 |
Cash flows from investing activities: | ||
Proceeds from sale of assets | 27 | |
Change in construction accounts payable | (414) | (7,266) |
Acquisition of property and equipment | (14,777) | (14,814) |
Net cash used in investing activities | (15,191) | (22,053) |
Cash flows from financing activities: | ||
Payroll taxes from net exercise of stock options | (99) | (2,468) |
Proceeds from exercise of stock options | 1,015 | 5,206 |
Line-of-credit borrowings | 61,000 | |
Line-of-credit payments | (10,000) | |
Long-term debt borrowings | 3,000 | |
Principal payments on long-term debt | (7,000) | (13,000) |
Loan issuance cost | (6,500) | |
Payment of dividends | (95,608) | |
Net cash used in financing activities | (50,692) | (13,762) |
Change in cash and cash equivalents | (4,349) | (377) |
Cash and cash equivalents at beginning of period | 38,779 | 33,526 |
Cash and cash equivalents at end of period | 34,430 | 33,149 |
Supplemental disclosure of cash flow information: | ||
Cash paid for interest, net of amounts capitalized | $ 522 | $ 293 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Mar. 31, 2023 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | MONARCH CASINO & RESORT, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) QUARTERLY PERIOD ENDED MARCH 31, 2023 NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation Monarch Casino & Resort, Inc. was incorporated in 1993. Unless otherwise indicated, “Monarch,” “us,” “we,” and the “Company” refer to Monarch Casino & Resort, Inc. and its subsidiaries. Monarch owns and operates the Atlantis Casino Resort Spa, a hotel and casino in Reno, Nevada (the “Atlantis”) and Monarch Casino Resort Spa Black Hawk, a hotel and casino in Black Hawk, Colorado (the “Monarch Black Hawk”). In addition, Monarch owns separate parcels of land located next to the Atlantis and a parcel of land with an industrial warehouse located between Denver, Colorado and Monarch Black Hawk. Monarch also owns Chicago Dogs Eatery, Inc. and Monarch Promotional Association, both of which were formed in relation to licensure requirements for extended hours of liquor operation in Black Hawk, Colorado. The accompanying unaudited consolidated financial statements include the accounts of Monarch and its subsidiaries (the “Consolidated Financial Statements”). Intercompany balances and transactions are eliminated. Interim Financial Statements The Consolidated Financial Statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) 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 U.S. GAAP for complete financial statements. In the opinion of the management of the Company, all adjustments considered necessary for a fair presentation, consisting of normal recurring accruals, are reflected in the interim financial statements. Operating results for the three months ended March 31, 2023 are not necessarily indicative of the results that may be expected for the year ending December 31, 2023. The balance sheet at December 31, 2022, has been derived from the audited consolidated financial statements of the Company at that date, but does not include all of the information and footnotes required by U.S. GAAP 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, 2022. Segment Reporting: The accounting guidance for disclosures about segments of an enterprise and related information requires separate financial information to be disclosed for all operating segments of a business. The Company determined that the Company’s two operating segments, Atlantis and Monarch Black Hawk, meet the aggregation criteria stipulated by ASC 280-10-50-11. The Company views each property as an operating segment and the two operating segments have been aggregated into one reporting segment. Concentrations of Credit Risk and Credit Losses: Financial instruments which potentially subject the Company to concentrations of credit risk consist principally of bank deposits and trade receivables. The Company accounts for credit losses in accordance with ASU 2016-13 using a forward-looking expected loss model. The Company maintains its surplus cash in bank accounts which, at times, may exceed federally insured limits. The Company has not experienced any losses in such accounts. The Company extends short-term credit to its gaming customers. Such credit is non-interest bearing and is due on demand. In addition, the Company also has receivables due from hotel guests and convention groups and events, which are primarily secured with a credit card. An allowance for doubtful accounts is determined to reduce the Company’s receivables to their carrying value, which approximates fair value. The allowance is estimated based on historical collection experience, specific review of individual customer accounts, current economic and business conditions and management’s expectations of future economic and business conditions. The allowance is applied even when the risk of credit loss is remote. When a situation warrants, the Company may create a specific identification reserve for high collection risk receivables. The Company writes off its uncollectible receivables once all efforts have been made to collect such receivables. Recoveries of accounts previously written off are recorded when received. Concentrations of credit risk with respect to gaming and non-gaming receivables are limited due to the large number of customers comprising the Company’s customer base. Historically, the Company has not incurred any significant credit-related losses. As of March 31, 2023, the Company has recorded a reserve of $0.1 million for gaming and non-gaming receivables. The Company believes it is not exposed to any significant credit risk on cash and accounts receivable. Inventories: Inventories, consisting primarily of food, beverages, and retail merchandise, are stated at the lower of cost and net realizable value. Cost is determined by the weighted average and specific identification methods. Net realizable value is defined by the Financial Accounting Standards Board (“FASB”) as estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. Property and Equipment, net: Property and equipment, net consists of the following (in thousands): March 31, 2023 December 31, 2022 Land $ 32,977 $ 32,977 Land improvements 10,939 10,939 Buildings 475,956 475,956 Building improvements 76,552 75,858 Furniture and equipment 250,111 249,045 Construction in progress 20,118 7,229 Right of use assets 13,700 13,861 Leasehold improvements 4,244 4,244 884,597 870,109 Less accumulated depreciation and amortization (303,237) (292,059) Property and equipment, net $ 581,360 $ 578,050 Property and equipment are stated at cost, less accumulated depreciation and amortization. Property and equipment is depreciated principally on a straight-line basis over its estimated useful lives as follows: Land improvements 15 - 40 years Buildings 30 - 40 years Building improvements 5 - 40 years Right of use assets 5 - 40 years Leasehold improvements 5 - 40 years Furniture 5 - 10 years Equipment 3 - 20 years The Company evaluates property and equipment and other long-lived assets for impairment in accordance with the guidance for accounting for the impairment or disposal of long-lived assets. For assets to be disposed of, the Company recognizes the asset to be sold at the lower of carrying value or fair value less costs of disposal. Fair value for assets to be disposed of is generally estimated based on comparable asset sales, solicited offers or a discounted cash flow model. For assets to be held and used, the Company reviews fixed assets for impairment indicators at the end of the fiscal year and whenever indicators of impairment exist. If an indicator of impairment exists, we compare the estimated future cash flows of the asset, on an undiscounted basis, to the carrying value of the asset. If the undiscounted cash flows exceed the carrying value, no impairment is indicated. If the undiscounted cash flows do not exceed the carrying value, the impairment is measured based on fair value compared to carrying value, with fair value typically based on a discounted cash flow model or market comparable, when available. For the three-month periods ended March 31, 2023 and 2022, respectively, there were no impairment charges. Goodwill: The Company accounts for goodwill in accordance with ASC Topic 350, Intangibles-Goodwill and Other (“ASC Topic 350”). ASC Topic 350 gives companies the option to perform a qualitative assessment that may allow them to skip the quantitative test as appropriate. The Company tests its goodwill for impairment annually during the fourth quarter, or whenever events or circumstances make it more likely than not that impairment may have occurred. Impairment testing for goodwill is performed at the reporting unit level, and each of the Company’s casino properties is considered to be a reporting unit. As of March 31, 2023, we had goodwill totaling $25.1 million related to the purchase of Monarch Black Hawk, Inc. ASC Topic 350 requires that goodwill be tested for impairment between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. We performed an assessment to determine whether events or circumstances such as those described in ASC 350-20-35-3C existed and we determined that they did not exist during the interim period; therefore, an interim impairment test was not performed. Revenue Recognition: The majority of the Company’s revenue is recognized when products are delivered or services are performed. For certain revenue transactions (when a patron uses a club loyalty card), in accordance with Accounting Standard Update No. 2014-09 (“ASC 606”), a portion of the revenue is deferred until the points earned by the patron are redeemed or expire. Casino revenue: Players’ Club Program: twelve As of March 31, 2023, the Company had estimated the obligations related to the players’ club program at $8.3 million, which is included in Accrued Expenses in the Liabilities and Stockholders’ Equity section in the Consolidated Balance Sheet. Food and Beverage, Hotel and Other (retail) Revenues: Other Revenues : Other revenues (excluding retail) primarily consist of commissions received on ATM transactions and cash advances, which are recorded on a net basis as the Company represents the agent in its relationship with the third-party service providers, and commissions and fees received in connection with pari-mutuel wagering, which are also recorded on a net basis. Sales and other taxes Other Operating items, net: Other operating items, net, in general consist of miscellaneous operating charges or proceeds. For the three months ended March 31, 2023 and 2022, Other operating items, net, of $0.5 million and $1.3 million, respectively, represented professional service fees relating to our construction litigation. Impact of Recently Adopted Accounting Standards: The Company has evaluated the recently issued or proposed by the FASB or other standards-setting bodies accounting standards and does not believe the future adoption of any such pronouncements will have a material effect on the Company’s Consolidated Financial Statements. |
ACCOUNTING FOR LEASES
ACCOUNTING FOR LEASES | 3 Months Ended |
Mar. 31, 2023 | |
ACCOUNTING FOR LEASES | |
ACCOUNTING FOR LEASES | NOTE 2. ACCOUNTING FOR LEASES For leases with terms greater than 12 months, the Company records the related asset and obligation at the present value of the lease payments over the lease term. Certain of the Company’s leases include rental escalation clauses, renewal options and/or termination options that are factored into its determination of lease payments when appropriate. As permitted by ASC 842, the Company elected not to separate non-lease components from their related lease components. As of March 31, 2023, the Company’s right of use assets consisted of the Parking Lot Lease, the Driveway Lease (each as defined and discussed in NOTE 5. RELATED PARTY TRANSACTIONS) The weighted-average incremental borrowing rate of the leases presented in the lease liability as of March 31, 2023, was 4.33%. There were no new leases entered into in the first quarter of 2023. The weighted-average remaining lease term of the leases presented in the lease liability as of March 31, 2023, was 19 years. Cash paid related to the operating leases presented in the lease liability for each of the three months ended March 31, 2023 and 2022, was $0.3 million. |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 3 Months Ended |
Mar. 31, 2023 | |
STOCK-BASED COMPENSATION. | |
STOCK-BASED COMPENSATION | NOTE 3. STOCK-BASED COMPENSATION In accordance with ASC 718, the Company records any excess tax benefits or deficiencies from its equity awards in its Consolidated Statements of Income in the reporting periods in which vesting occurs. As a result, the Company’s income tax expense and associated effective tax rate are impacted by fluctuations in stock price between the grant dates and vesting dates of equity awards. Reported stock-based compensation expense was classified as follows (in thousands): Three months ended March 31, 2023 2022 Casino $ 153 $ 71 Food and beverage 40 48 Hotel 66 33 Selling, general and administrative 1,215 1,008 Total stock-based compensation, before taxes 1,474 1,160 Tax benefit (310) (244) Total stock-based compensation, net of tax $ 1,164 $ 916 |
EARNINGS PER SHARE
EARNINGS PER SHARE | 3 Months Ended |
Mar. 31, 2023 | |
EARNINGS PER SHARE | |
EARNINGS PER SHARE | NOTE 4. 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 March 31, 2023 2022 Per Share Per Share Shares Amount Shares Amount Basic 19,215 $ 0.92 18,868 $ 0.96 Effect of dilutive stock options 439 (0.02) 724 (0.04) Diluted 19,654 $ 0.90 19,592 $ 0.92 Excluded from the computation of diluted earnings per share are options where the exercise prices are greater than the weighted assumed proceeds per share as their effects would be anti-dilutive in the computation of diluted earnings per share. For the three months ended March 31, 2023 and 2022, options for approximately 576 thousand and 506 thousand shares, respectively, were excluded from the computation. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 3 Months Ended |
Mar. 31, 2023 | |
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”). John Farahi and Bob Farahi, Co-Chairmen of the Board and executive officers of the Company, and Ben Farahi have significant holdings (the “Farahi Family Stockholders”) in Monarch and each also beneficially owns limited partnership interests in BLI. Maxum LLC is the sole general partner of BLI, and Ben Farahi is the sole managing member of Maxum LLC. Neither John Farahi nor Bob Farahi has any management or operational control over BLI or the Shopping Center. Until May 2006, Ben Farahi held the positions of Co-Chairman of the Board, Secretary, Treasurer and Chief Financial Officer of the Company. On August 28, 2015, Monarch, through its subsidiary Golden Road Motor Inn, Inc., entered into a 20-year lease agreement with BLI for a portion of the Shopping Center (the “Parking Lot Lease”). This lease gives the Atlantis the right to use a parcel, approximately 4.2 acres, adjacent to the Atlantis. The primary purpose of the Parking Lot Lease is to provide additional, convenient, Atlantis surface parking. The minimum annual rent under the Parking Lot Lease is $695 thousand commencing on November 17, 2015. The minimum annual rent is subject to a cost of living adjustment increase on each five-year anniversary. In addition, the Company is responsible for the payment of property taxes, utilities and maintenance expenses related to the leased property. The Company has an option to renew the Parking Lot Lease for an additional ten-year term. If the Company elects not to exercise its renewal option, the Company will be obligated to pay BLI $1.6 million. For each of the three-month periods ended March 31, 2023 and 2022, the Company paid $187 thousand in rent, plus $8 thousand and $7 thousand, respectively, in operating expenses relating to this lease. The right of use asset and lease liability In addition, the Atlantis shares a driveway with the Shopping Center and leases approximately 37,400 square feet from BLI (the “Driveway Lease”) for an initial lease term of 15 years, which commenced on September 30, 2004, at an original annual rent of $300 thousand plus common area expenses. The annual rent is subject to a cost of living adjustment increase on each five-year anniversary of the Driveway Lease. Effective August 28, 2015, in connection with the Company entering into the Parking Lot Lease, the Driveway Lease was amended to: (i) make the Company solely responsible for the operation and maintenance costs of the shared driveway (including the fountains thereon); (ii) eliminate the Company’s obligation to reimburse the Shopping Center for its proportionate share of common area expenses; and (iii) exercise the three successive five-year renewal terms beyond the initial 15-year March 31 The Company occasionally leases billboard advertising, storage space and parking lot space from affiliates controlled by the Farahi Family Stockholders, and paid $132 thousand and $81 thousand, respectively, for the three-month periods ended March 31, 2023 and 2022, for such leases. |
LONG-TERM DEBT
LONG-TERM DEBT | 3 Months Ended |
Mar. 31, 2023 | |
LONG-TERM DEBT | |
LONG-TERM DEBT | NOTE 6. LONG-TERM DEBT On February 1, 2023, the Company entered into the Fifth Amended and Restated Credit Agreement with Wells Fargo Bank, N.A., as administrative agent. The Fifth Amended Credit Facility (the “Amended Credit Facility”) amends and restates the Company’s Fourth Amended and Restated Credit Agreement, which consisted of: a $200 million term loan and a $70 million revolving line of credit. On February 1, 2023, there was no outstanding balance under the term loan of the Fourth Amended and Restated Credit Agreement. The Amended Credit Facility does not contain a term loan. The Amended Credit Facility increases the aggregate principal amount of the revolving line of credit from $70 million to $100 million, with an option to increase it by another $100 million within the first six months. The maturity date of the Amended Credit Facility is January 1, 2025. As of March 31, 2023, the Company had an outstanding principal balance of $51 million under the Amended Credit Facility. In addition to other customary covenants for a facility of this nature, as of March 31, 2023, the Company is required to maintain a Total Leverage Ratio (as defined in the Amended Credit Facility) of no more than 2.5:1 and Fixed Charge Coverage Ratio (as defined in the Amended Credit Facility) of at least 1.1:1. As of March 31, 2023, the Company’s Total Leverage Ratio and Fixed Charge Coverage Ratio were 0.3:1 and 6.7:1, respectively. The interest rate under the Amended Credit Facility is SOFR (the Secured Overnight Financing Rate) plus a margin ranging from 1.00% to 1.50%, or a base rate (as defined in the Amended Credit Facility) plus a margin ranging from 0.00% to 0.50%. The applicable margins will vary depending on the Company’s leverage ratio. In addition, SOFR-based loans will incur a 0.10% credit adjustment spread due to the conversion from LIBOR to SOFR as the new benchmark rate. As of March 31, 2023, the interest rate was 5.91%, or SOFR plus a 1.00% margin. The Company’s obligations under the Amended Credit Facility are secured by substantially all of the Company’s assets. |
TAXES
TAXES | 3 Months Ended |
Mar. 31, 2023 | |
TAXES | |
TAXES | NOTE 7. TAXES For the three months ended March 31, 2023 and 2022, the Company’s effective tax rate was 21.7% and 12.5%, respectively. The effective tax rate for the three months ended March 31, 2023 and 2022 was impacted by excess tax benefit on stock option exercises. Deferred tax assets were evaluated by considering historical levels of income, estimates of future taxable income and the impact of tax planning strategies. No uncertain tax positions were recorded as of March 31, 2023 and 2022. No change in uncertain tax positions is anticipated over the next twelve months. |
STOCK REPURCHASE PLAN
STOCK REPURCHASE PLAN | 3 Months Ended |
Mar. 31, 2023 | |
STOCK REPURCHASE PLAN | |
STOCK REPURCHASE PLAN | NOTE 8. STOCK REPURCHASE PLAN On October 22, 2014, the board of directors of Monarch authorized a stock repurchase plan (the “Repurchase Plan”). Under the Repurchase Plan, the board of directors authorized a program to repurchase up to 3,000,000 shares of the Company’s common stock in the open market or in privately negotiated transactions from time to time, in compliance with Rule 10b-18 of the Securities and Exchange Act of 1934, as amended, subject to market conditions, applicable legal requirements and other factors. The Repurchase Plan does not obligate the Company to acquire any particular amount of common stock and the plan may be suspended at any time at the Company’s discretion, and it will continue until exhausted. The actual timing, number and value of shares repurchased under the repurchase program will be determined by management at its discretion and will depend on a number of factors, including the market price of the Company’s stock, general market economic conditions and applicable legal requirements. As of March 31, 2023, we have an authorization to purchase up to 2,900,000 shares under the Repurchase Plan. |
LEGAL MATTERS
LEGAL MATTERS | 3 Months Ended |
Mar. 31, 2023 | |
LEGAL MATTERS | |
LEGAL MATTERS | NOTE 9. LEGAL MATTERS On August 30, 2019, PCL Construction Services, Inc. (“PCL”) filed a complaint in District Court, City and County of Denver, Colorado, against the Company and its Colorado subsidiaries, in connection with the Company’s now completed expansion of the Monarch Casino Resort Spa Black Hawk. The complaint alleges, among other things, that the defendants breached the construction contract with PCL and certain implied warranties. On December 5, 2019, the Company filed its answer and counterclaim, which alleges, among other items, that PCL breached the construction contract, duties of good faith and fair dealing, and implied and express warranties, made fraudulent or negligent misrepresentations on which the Company and its Colorado subsidiaries relied, and included claims for monetary damages as well as equitable and declaratory relief. On September 1, 2022, the judge previously assigned to the Denver Action recused herself, resulting in a continuance of the trial then set for September 6, 2022, and reassignment to another courtroom. Following reassignment, the court set a new trial date of September 5, 2023. Limited discovery and disputes regarding the scope of discovery remaining are ongoing, and we are currently unable to determine the probability of the outcome or reasonably estimate the loss or gain, if any. In connection with the expansion of the Monarch Black Hawk, as described above, PCL and certain subcontractors have provided purported notice of liens filed against the real property on which the Monarch Black Hawk is situated (the “Monarch Black Hawk Property”), for sums allegedly owed for construction of the expansion. Some of the subcontractors have recorded such liens in the property records of Gilpin County, Colorado. On March 26, 2021, PCL filed a mechanics’ lien foreclosure action in District Court, County of Gilpin, Colorado, against the Company and its Colorado subsidiaries, in connection with the Company’s now completed expansion of the Monarch Casino Resort Spa Black Hawk. The complaint essentially mirrors the claims and allegations made by PCL in the lawsuit it previously filed in the City and County of Denver, Colorado, Case No. 2019CV33368, as described above. The lawsuit filed on March 26, 2021 includes an additional claim, however, for foreclosure of PCL’s purported mechanics’ lien against the property on which the Monarch Casino Resort Spa Black Hawk is situated (the “Property”). PCL also joined additional parties who may claim a purported lien against the Property, as defendants. Effective May 10, 2021, PCL filed its second amended complaint, joining more such parties as defendants. Many of the Company’s co-defendants have filed cross claims against Monarch for foreclosure of mechanics’ liens and related claims, including unjust enrichment. Monarch filed its answer and counterclaims to PCL’s second amended complaint on July 15, 2021, but a trial of the matter has not been set. Monarch has also filed answers to all cross claims due to date, denying the claimants’ rights to relief. Monarch anticipates filing further answers to additional cross claims, also denying the claimants’ rights to relief. The case remains stayed pending the outcome of Case No. 2019CV33368. We are currently unable to determine the probability of the outcome or reasonably estimate the loss or gain, if any. On February 9, 2023, Monarch Growth, Inc., Monarch Casino & Resort, Inc. and Monarch Black Hawk, Inc. filed a complaint in District Court, City and County of Denver, Colorado, against PCL, in connection with the Company’s now completed expansion of the Monarch Casino Resort Spa Black Hawk. The complaint alleges, among other things, that PCL breached the construction contract, duties of good faith and fair dealing, and implied and express warranties, and includes claims for monetary damages as well as equitable and declaratory relief. The lawsuit was served on PCL, but PCL has not yet filed an answer or other response to Monarch’s complaint. On April 18, 2023, at the parties’ joint request, the Court ordered the matter stayed for ninety days from date of the stay order until July 17, 2023. We are currently unable to determine the probability of the outcome or reasonably estimate the loss or gain, if any. The Company recognized $0.5 million and $1.3 million in construction litigation expense relating to these lawsuits for the three months ended March 31, 2023 and 2022, respectively, which is included in Other operating items, net on the Consolidated Statements of Income. From time to time, we may be subject to other legal proceedings and claims in the ordinary course of business. Management believes that the amount of any reasonably possible or probable loss for such other known matters would not have a material adverse impact on our financial conditions, cash flows or results of operations; however, the outcome of these actions is inherently difficult to predict. |
DIVIDENDS
DIVIDENDS | 3 Months Ended |
Mar. 31, 2023 | |
Dividends [Abstract] | |
DIVIDENDS | NOTE 10. DIVIDENDS On February 7, 2023, the Company announced that the Company’s Board of Directors has declared a one-time cash dividend (the “One-time Dividend”) of $5.00 per share of its outstanding common stock, par value $0.01 per share (“Common Stock”), to be paid to the stockholders of record of the Company on March 1, 2023 (the “Record Date”), payable on March 15, 2023 (the “Payment Date”). In addition to the One-time Dividend, the Board of Directors has approved, commencing in the second quarter of 2023, payment of cash dividends of $1.20 per share annually, with such dividends to be paid in quarterly amounts. These dividends will be paid quarterly on the 15th day of the third month of the applicable calendar quarter (or, if such date is not a trading day, then the first trading day immediately thereafter such date) to those stockholders of record on the 1st day of the third month of the applicable calendar quarter (or, if such date is not a trading day, then the first trading day immediately thereafter such date). On April 19, 2023, the Company announced a cash dividend of $0.30 per share of its outstanding common stock, payable on June 15, 2023, to stockholders of record on June 1, 2023. This cash dividend is part of the previously announced annual cash dividend of $1.20 per share payable in quarterly payments. The Company’s declaration of each dividend amount shall be subject to the Board’s review of the then-current financial statements of the Company, available acquisition opportunities and other prudent uses of the Company’s cash resources. As such, the Board of Directors may suspend the dividend program at any time and no assurances can be given that a quarterly dividend will be paid. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Mar. 31, 2023 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Basis of Presentation | Basis of Presentation Monarch Casino & Resort, Inc. was incorporated in 1993. Unless otherwise indicated, “Monarch,” “us,” “we,” and the “Company” refer to Monarch Casino & Resort, Inc. and its subsidiaries. Monarch owns and operates the Atlantis Casino Resort Spa, a hotel and casino in Reno, Nevada (the “Atlantis”) and Monarch Casino Resort Spa Black Hawk, a hotel and casino in Black Hawk, Colorado (the “Monarch Black Hawk”). In addition, Monarch owns separate parcels of land located next to the Atlantis and a parcel of land with an industrial warehouse located between Denver, Colorado and Monarch Black Hawk. Monarch also owns Chicago Dogs Eatery, Inc. and Monarch Promotional Association, both of which were formed in relation to licensure requirements for extended hours of liquor operation in Black Hawk, Colorado. The accompanying unaudited consolidated financial statements include the accounts of Monarch and its subsidiaries (the “Consolidated Financial Statements”). Intercompany balances and transactions are eliminated. |
Interim Financial Statements | Interim Financial Statements The Consolidated Financial Statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) 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 U.S. GAAP for complete financial statements. In the opinion of the management of the Company, all adjustments considered necessary for a fair presentation, consisting of normal recurring accruals, are reflected in the interim financial statements. Operating results for the three months ended March 31, 2023 are not necessarily indicative of the results that may be expected for the year ending December 31, 2023. The balance sheet at December 31, 2022, has been derived from the audited consolidated financial statements of the Company at that date, but does not include all of the information and footnotes required by U.S. GAAP 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, 2022. |
Segment Reporting | Segment Reporting: The accounting guidance for disclosures about segments of an enterprise and related information requires separate financial information to be disclosed for all operating segments of a business. The Company determined that the Company’s two operating segments, Atlantis and Monarch Black Hawk, meet the aggregation criteria stipulated by ASC 280-10-50-11. The Company views each property as an operating segment and the two operating segments have been aggregated into one reporting segment. |
Inventories | Inventories: Inventories, consisting primarily of food, beverages, and retail merchandise, are stated at the lower of cost and net realizable value. Cost is determined by the weighted average and specific identification methods. Net realizable value is defined by the Financial Accounting Standards Board (“FASB”) as estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. |
Property and Equipment, net | Property and Equipment, net: Property and equipment, net consists of the following (in thousands): March 31, 2023 December 31, 2022 Land $ 32,977 $ 32,977 Land improvements 10,939 10,939 Buildings 475,956 475,956 Building improvements 76,552 75,858 Furniture and equipment 250,111 249,045 Construction in progress 20,118 7,229 Right of use assets 13,700 13,861 Leasehold improvements 4,244 4,244 884,597 870,109 Less accumulated depreciation and amortization (303,237) (292,059) Property and equipment, net $ 581,360 $ 578,050 Property and equipment are stated at cost, less accumulated depreciation and amortization. Property and equipment is depreciated principally on a straight-line basis over its estimated useful lives as follows: Land improvements 15 - 40 years Buildings 30 - 40 years Building improvements 5 - 40 years Right of use assets 5 - 40 years Leasehold improvements 5 - 40 years Furniture 5 - 10 years Equipment 3 - 20 years The Company evaluates property and equipment and other long-lived assets for impairment in accordance with the guidance for accounting for the impairment or disposal of long-lived assets. For assets to be disposed of, the Company recognizes the asset to be sold at the lower of carrying value or fair value less costs of disposal. Fair value for assets to be disposed of is generally estimated based on comparable asset sales, solicited offers or a discounted cash flow model. For assets to be held and used, the Company reviews fixed assets for impairment indicators at the end of the fiscal year and whenever indicators of impairment exist. If an indicator of impairment exists, we compare the estimated future cash flows of the asset, on an undiscounted basis, to the carrying value of the asset. If the undiscounted cash flows exceed the carrying value, no impairment is indicated. If the undiscounted cash flows do not exceed the carrying value, the impairment is measured based on fair value compared to carrying value, with fair value typically based on a discounted cash flow model or market comparable, when available. For the three-month periods ended March 31, 2023 and 2022, respectively, there were no impairment charges. |
Goodwill | Goodwill: The Company accounts for goodwill in accordance with ASC Topic 350, Intangibles-Goodwill and Other (“ASC Topic 350”). ASC Topic 350 gives companies the option to perform a qualitative assessment that may allow them to skip the quantitative test as appropriate. The Company tests its goodwill for impairment annually during the fourth quarter, or whenever events or circumstances make it more likely than not that impairment may have occurred. Impairment testing for goodwill is performed at the reporting unit level, and each of the Company’s casino properties is considered to be a reporting unit. As of March 31, 2023, we had goodwill totaling $25.1 million related to the purchase of Monarch Black Hawk, Inc. ASC Topic 350 requires that goodwill be tested for impairment between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. We performed an assessment to determine whether events or circumstances such as those described in ASC 350-20-35-3C existed and we determined that they did not exist during the interim period; therefore, an interim impairment test was not performed. |
Revenues Recognition | The majority of the Company’s revenue is recognized when products are delivered or services are performed. For certain revenue transactions (when a patron uses a club loyalty card), in accordance with Accounting Standard Update No. 2014-09 (“ASC 606”), a portion of the revenue is deferred until the points earned by the patron are redeemed or expire. Casino revenue: Players’ Club Program: twelve As of March 31, 2023, the Company had estimated the obligations related to the players’ club program at $8.3 million, which is included in Accrued Expenses in the Liabilities and Stockholders’ Equity section in the Consolidated Balance Sheet. Food and Beverage, Hotel and Other (retail) Revenues: Other Revenues : Other revenues (excluding retail) primarily consist of commissions received on ATM transactions and cash advances, which are recorded on a net basis as the Company represents the agent in its relationship with the third-party service providers, and commissions and fees received in connection with pari-mutuel wagering, which are also recorded on a net basis. Sales and other taxes |
Other Operating items, net | Other Operating items, net: Other operating items, net, in general consist of miscellaneous operating charges or proceeds. For the three months ended March 31, 2023 and 2022, Other operating items, net, of $0.5 million and $1.3 million, respectively, represented professional service fees relating to our construction litigation. |
Concentrations of Credit Risk and Credit Losses | Concentrations of Credit Risk and Credit Losses: Financial instruments which potentially subject the Company to concentrations of credit risk consist principally of bank deposits and trade receivables. The Company accounts for credit losses in accordance with ASU 2016-13 using a forward-looking expected loss model. The Company maintains its surplus cash in bank accounts which, at times, may exceed federally insured limits. The Company has not experienced any losses in such accounts. The Company extends short-term credit to its gaming customers. Such credit is non-interest bearing and is due on demand. In addition, the Company also has receivables due from hotel guests and convention groups and events, which are primarily secured with a credit card. An allowance for doubtful accounts is determined to reduce the Company’s receivables to their carrying value, which approximates fair value. The allowance is estimated based on historical collection experience, specific review of individual customer accounts, current economic and business conditions and management’s expectations of future economic and business conditions. The allowance is applied even when the risk of credit loss is remote. When a situation warrants, the Company may create a specific identification reserve for high collection risk receivables. The Company writes off its uncollectible receivables once all efforts have been made to collect such receivables. Recoveries of accounts previously written off are recorded when received. Concentrations of credit risk with respect to gaming and non-gaming receivables are limited due to the large number of customers comprising the Company’s customer base. Historically, the Company has not incurred any significant credit-related losses. As of March 31, 2023, the Company has recorded a reserve of $0.1 million for gaming and non-gaming receivables. The Company believes it is not exposed to any significant credit risk on cash and accounts receivable. |
Impact of Recently Issued Accounting Standards | Impact of Recently Adopted Accounting Standards: The Company has evaluated the recently issued or proposed by the FASB or other standards-setting bodies accounting standards and does not believe the future adoption of any such pronouncements will have a material effect on the Company’s Consolidated Financial Statements. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Schedule of Property and Equipment, net | Property and equipment, net consists of the following (in thousands): March 31, 2023 December 31, 2022 Land $ 32,977 $ 32,977 Land improvements 10,939 10,939 Buildings 475,956 475,956 Building improvements 76,552 75,858 Furniture and equipment 250,111 249,045 Construction in progress 20,118 7,229 Right of use assets 13,700 13,861 Leasehold improvements 4,244 4,244 884,597 870,109 Less accumulated depreciation and amortization (303,237) (292,059) Property and equipment, net $ 581,360 $ 578,050 |
Property and equipment, estimated useful lives | Land improvements 15 - 40 years Buildings 30 - 40 years Building improvements 5 - 40 years Right of use assets 5 - 40 years Leasehold improvements 5 - 40 years Furniture 5 - 10 years Equipment 3 - 20 years |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
STOCK-BASED COMPENSATION. | |
Schedule of stock-based compensation expense | Reported stock-based compensation expense was classified as follows (in thousands): Three months ended March 31, 2023 2022 Casino $ 153 $ 71 Food and beverage 40 48 Hotel 66 33 Selling, general and administrative 1,215 1,008 Total stock-based compensation, before taxes 1,474 1,160 Tax benefit (310) (244) Total stock-based compensation, net of tax $ 1,164 $ 916 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
EARNINGS PER SHARE | |
Schedule of reconciliation of the number of shares (denominator) used in the basic and diluted earnings per share computations | Three months ended March 31, 2023 2022 Per Share Per Share Shares Amount Shares Amount Basic 19,215 $ 0.92 18,868 $ 0.96 Effect of dilutive stock options 439 (0.02) 724 (0.04) Diluted 19,654 $ 0.90 19,592 $ 0.92 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Segment Reporting (Details) | 3 Months Ended |
Mar. 31, 2023 segment | |
Segment Reporting | |
Number of operating segments | 2 |
Number of reportable segments | 1 |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Concentrations of Credit Risk and Credit Losses (Details) $ in Millions | Mar. 31, 2023 USD ($) |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Reserve for gaming and non-gaming receivables | $ 0.1 |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Property and Equipment (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Property and Equipment | ||
Gross property and equipment | $ 884,597 | $ 870,109 |
Less accumulated depreciation and amortization | (303,237) | (292,059) |
Property and equipment, net | 581,360 | 578,050 |
Land | ||
Property and Equipment | ||
Gross property and equipment | 32,977 | 32,977 |
Land improvements | ||
Property and Equipment | ||
Gross property and equipment | 10,939 | 10,939 |
Buildings | ||
Property and Equipment | ||
Gross property and equipment | 475,956 | 475,956 |
Building improvements | ||
Property and Equipment | ||
Gross property and equipment | 76,552 | 75,858 |
Furniture | ||
Property and Equipment | ||
Gross property and equipment | 250,111 | 249,045 |
Construction in progress | ||
Property and Equipment | ||
Gross property and equipment | 20,118 | 7,229 |
Right of use assets | ||
Property and Equipment | ||
Gross property and equipment | 13,700 | 13,861 |
Leasehold improvements | ||
Property and Equipment | ||
Gross property and equipment | $ 4,244 | $ 4,244 |
SUMMARY OF SIGNIFICANT ACCOUN_7
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Property and Equipment Useful Lives and Impairment (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Property and Equipment | ||
Impairment charge | $ 0 | $ 0 |
Land improvements | Minimum | ||
Property and Equipment | ||
Estimated useful life | 15 years | |
Land improvements | Maximum | ||
Property and Equipment | ||
Estimated useful life | 40 years | |
Buildings | Minimum | ||
Property and Equipment | ||
Estimated useful life | 30 years | |
Buildings | Maximum | ||
Property and Equipment | ||
Estimated useful life | 40 years | |
Building improvements | Minimum | ||
Property and Equipment | ||
Estimated useful life | 5 years | |
Building improvements | Maximum | ||
Property and Equipment | ||
Estimated useful life | 40 years | |
Right of use assets | Minimum | ||
Property and Equipment | ||
Estimated useful life | 5 years | |
Right of use assets | Maximum | ||
Property and Equipment | ||
Estimated useful life | 40 years | |
Leasehold improvements | Minimum | ||
Property and Equipment | ||
Estimated useful life | 5 years | |
Leasehold improvements | Maximum | ||
Property and Equipment | ||
Estimated useful life | 40 years | |
Furniture | Minimum | ||
Property and Equipment | ||
Estimated useful life | 5 years | |
Furniture | Maximum | ||
Property and Equipment | ||
Estimated useful life | 10 years | |
Equipment | Minimum | ||
Property and Equipment | ||
Estimated useful life | 3 years | |
Equipment | Maximum | ||
Property and Equipment | ||
Estimated useful life | 20 years |
SUMMARY OF SIGNIFICANT ACCOUN_8
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Goodwill (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Goodwill from business combinations | ||
Goodwill | $ 25,111 | $ 25,111 |
SUMMARY OF SIGNIFICANT ACCOUN_9
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Debt Issuance Costs and Capitalized Interest (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Debt Issuance Costs | ||
Amortization of deferred loan costs | $ 307 | $ 359 |
SUMMARY OF SIGNIFICANT ACCOU_10
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Players Club Program (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2023 USD ($) | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Analysis of redemption activity, preceding period | 12 months |
Obligations related to the players' club program | $ 8.3 |
SUMMARY OF SIGNIFICANT ACCOU_11
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Other Operating items, net (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||
Professional service fees | $ 0.5 | $ 1.3 |
ACCOUNTING FOR LEASES - Narrati
ACCOUNTING FOR LEASES - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
ACCOUNTING FOR LEASES | ||
Lease, Practical Expedient, Lessor Single Lease Component [true false] | true | |
Weighted-average incremental borrowing rate of operating leases | 4.33% | |
Weighted-average remaining lease term | 19 years | |
Cash paid related to operating leases | $ 0.3 | $ 0.3 |
STOCK-BASED COMPENSATION - Repo
STOCK-BASED COMPENSATION - Reported Stock-based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Stock-based compensation expense | ||
Total stock-based compensation, before taxes | $ 1,474 | $ 1,160 |
Tax benefit for employee stock-based compensation | (310) | (244) |
Total stock-based compensation, net of tax | 1,164 | 916 |
Selling, general and administrative | ||
Stock-based compensation expense | ||
Total stock-based compensation, before taxes | 1,215 | 1,008 |
Casino | ||
Stock-based compensation expense | ||
Total stock-based compensation, before taxes | 153 | 71 |
Food and beverage | ||
Stock-based compensation expense | ||
Total stock-based compensation, before taxes | 40 | 48 |
Hotel | ||
Stock-based compensation expense | ||
Total stock-based compensation, before taxes | $ 66 | $ 33 |
EARNINGS PER SHARE - Reconcilia
EARNINGS PER SHARE - Reconciliation (Details) - $ / shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Shares | ||
Basic (in shares) | 19,215 | 18,868 |
Effect of dilutive stock options (in shares) | 439 | 724 |
Diluted (in shares) | 19,654 | 19,592 |
Per Share Amount | ||
Basic (in dollars per share) | $ 0.92 | $ 0.96 |
Effect of dilutive stock options (in dollars per share) | (0.02) | (0.04) |
Diluted (in dollars per share) | $ 0.90 | $ 0.92 |
EARNINGS PER SHARE - Anti-dilut
EARNINGS PER SHARE - Anti-dilutive Options (Details) - shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Stock options | ||
Options not included in the computation of diluted earnings per share: | ||
Excluded from the computation of diluted earnings per share (in shares) | 576 | 506 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) $ in Thousands | 3 Months Ended | ||||
Nov. 17, 2015 USD ($) | Aug. 28, 2015 a item | Sep. 30, 2004 USD ($) | Mar. 31, 2023 USD ($) ft² | Mar. 31, 2022 USD ($) | |
Biggest Little Investments, L.P. (BLI) | Parking Lot Lease | |||||
RELATED PARTY TRANSACTIONS | |||||
Rent paid | $ 187 | $ 187 | |||
Operating expenses related to lease | 8 | 7 | |||
Right of use asset | 9,900 | ||||
Operating lease liability | $ 9,900 | ||||
Biggest Little Investments, L.P. (BLI) | Driveway Lease | |||||
RELATED PARTY TRANSACTIONS | |||||
Lease term | 15 years | ||||
Area of property | ft² | 37,400 | ||||
Minimum annual rent | $ 300 | ||||
Anniversary years subject to cost of living adjustment rent increases | 5 years | ||||
Number of terms for which the lease can be renewed | item | 3 | ||||
Lease renewal option additional term | 5 years | ||||
Rent paid | $ 101 | 101 | |||
Operating expenses related to lease | 12 | 10 | |||
Right of use asset | 3,400 | ||||
Operating lease liability | 3,400 | ||||
Affiliates | Billboard advertising, storage space and parking lot space | |||||
RELATED PARTY TRANSACTIONS | |||||
Rent paid | $ 132 | $ 81 | |||
Golden Road | Parking Lot Lease | Buildings | |||||
RELATED PARTY TRANSACTIONS | |||||
Area of land | a | 4.2 | ||||
Golden Road | Biggest Little Investments, L.P. (BLI) | Parking Lot Lease | |||||
RELATED PARTY TRANSACTIONS | |||||
Lease term | 20 years | ||||
Minimum annual rent | $ 695 | ||||
Anniversary years subject to cost of living adjustment rent increases | 5 years | ||||
Lease renewal option additional term | 10 years | ||||
Lessee, Operating Lease, Existence of Option to Extend [true false] | true | ||||
Amount due to related party if lease is not renewed | $ 1,600 |
LONG-TERM DEBT (Details)
LONG-TERM DEBT (Details) $ in Thousands | 3 Months Ended | ||
Feb. 01, 2023 USD ($) | Mar. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | |
Long-term debt | |||
Current portion of long-term debt | $ 6,693 | ||
Amount outstanding | $ 51,000 | ||
Total leverage ratio | 0.3 | ||
Fixed charge coverage ratio | 6.7 | ||
Conversion fee percentage | 0.10% | ||
Interest rate at end of period | 5.91% | ||
SOFR | |||
Long-term debt | |||
Percentage points added to the reference rate | 1% | ||
Minimum | |||
Long-term debt | |||
Fixed charge coverage ratio | 1.1 | ||
Minimum | SOFR | |||
Long-term debt | |||
Percentage points added to the reference rate | 1% | ||
Minimum | Base Rate | |||
Long-term debt | |||
Percentage points added to the reference rate | 0% | ||
Maximum | |||
Long-term debt | |||
Total leverage ratio | 2.5 | ||
Maximum | SOFR | |||
Long-term debt | |||
Percentage points added to the reference rate | 1.50% | ||
Maximum | Base Rate | |||
Long-term debt | |||
Percentage points added to the reference rate | 0.50% | ||
Fourth Amended Credit Facility | |||
Long-term debt | |||
Amount outstanding | $ 0 | ||
Revolving Credit Facility | Fourth Amended Credit Facility | |||
Long-term debt | |||
Maximum borrowing capacity | 70,000 | ||
Revolving Credit Facility | Fifth Amended Credit Facility [Member] | |||
Long-term debt | |||
Maximum borrowing capacity | 100,000 | ||
Additional borrowing capacity | 100,000 | ||
Term Loan Facility | Fourth Amended Credit Facility | |||
Long-term debt | |||
Maximum borrowing capacity | $ 200,000 |
TAXES (Details)
TAXES (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
TAXES | ||
Effective tax rate (as a percent) | 21.70% | 12.50% |
Liability for uncertain tax positions recorded | $ 0 | $ 0 |
Expected change in unrecorded tax benefit | $ 0 |
STOCK REPURCHASE PLAN (Details)
STOCK REPURCHASE PLAN (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2023 | Oct. 22, 2014 | |
Stock repurchase plan | |||
Purchase of company common stock | $ 6,500 | ||
Repurchase Plan | |||
Stock repurchase plan | |||
Shares authorized for repurchase under program | 2,900,000 | 3,000,000 |
LEGAL MATTERS (Details)
LEGAL MATTERS (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
LEGAL MATTERS | ||
Litigation expense recognized | $ 0.5 | $ 1.3 |
DIVIDENDS (Details)
DIVIDENDS (Details) - $ / shares | 3 Months Ended | |||
Apr. 19, 2023 | Feb. 07, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | |
Dividends [Abstract] | ||||
Common Stock, Dividends, Per Share, Declared | $ 0.30 | $ 5 | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 | |
Common Stock, Dividends, Per Share, Approved To Be Declared Annually And Paid On A Quarterly Basis | $ 1.20 |