UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2001
or
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM ______TO______.
Commission File No. 0-22088
MONARCH CASINO & RESORT, INC.
(Exact name of registrant as specified in its charter)
-------------------------
NEVADA 88-0300760
(State or other jurisdiction (I.R.S. Employer
of incorporation or organization) Identification No.)
1175 W. MOANA LANE, SUITE 200
RENO, NEVADA 89509
(Address of principal (Zip code)
executive offices)
Registrant's telephone number, including area code: (775) 825-3355
-------------------------
NOT APPLICABLE
(Former name, former address and former fiscal
year, if changed since last report.)
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to
such filing requirements for the past 90 days. YES _X_ NO ___
APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
PROCEEDINGS DURING THE PRECEDING FIVE YEARS:
Indicate by check mark whether the registrant has filed all documents and
reports required to be filed by Sections 12, 13, or 15(d) of the Securities
Exchange Act of 1934 subsequent to the distribution of securities under a plan
confirmed by a court. YES ___ NO ___
APPLICABLE ONLY TO CORPORATE ISSUERS:
Indicate the number of shares outstanding of each of the issuer's classes
of common stock, as of the latest practicable date.
As of August 10, 2001, there were 9,436,275 shares of Monarch Casino & Resort,
Inc. $0.01 par value common stock outstanding.
PART 1. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
MONARCH CASINO & RESORT, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
Three Months Ended Six Months Ended
June 30, June 30,
-------------------------- --------------------------
2001 2000 2001 2000
------------ ------------ ------------ ------------
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
Revenues
Casino........................... $ 17,365,786 $ 15,501,459 $ 32,366,457 $ 29,550,188
Food and beverage................ 8,111,547 7,400,521 15,621,559 14,175,898
Hotel............................ 4,960,799 4,642,868 9,050,979 8,752,129
Other............................ 842,377 896,375 1,625,673 1,706,151
------------ ------------ ------------ ------------
Gross revenues................ 31,280,509 28,441,223 58,664,668 54,184,366
Less promotional allowances...... (3,548,524) (3,462,731) (7,182,502) (6,556,147)
------------ ------------ ------------ ------------
Net revenues.................. 27,731,985 24,978,492 51,482,166 47,628,219
------------ ------------ ------------ ------------
Operating expenses
Casino........................... 6,491,189 6,386,124 12,760,789 12,220,027
Food and beverage................ 4,720,760 4,585,251 8,909,868 8,836,887
Hotel............................ 1,761,679 1,608,437 3,380,021 3,224,901
Other............................ 342,074 357,119 635,762 664,195
Selling, general and
administrative.................. 6,753,485 6,068,891 13,336,301 12,026,962
Depreciation and amortization.... 2,518,634 2,518,646 4,990,774 5,018,401
------------ ------------ ------------ ------------
Total operating expenses...... 22,587,821 21,524,468 44,013,515 41,991,373
------------ ------------ ------------ ------------
Income from operations........ 5,144,164 3,454,024 7,468,651 5,636,846
------------ ------------ ------------ ------------
Other expense
Interest expense................. 2,519,188 2,178,903 4,384,885 4,218,012
------------ ------------ ------------ ------------
Total other expenses.......... 2,519,188 2,178,903 4,384,885 4,218,012
------------ ------------ ------------ ------------
Income before income taxes.... 2,624,976 1,275,121 3,083,766 1,418,834
Provision for income taxes......... 890,922 445,301 1,047,401 495,809
------------ ------------ ------------ ------------
Net income.................... $ 1,734,054 $ 829,820 $ 2,036,365 $ 923,025
============ ============ ============ ============
Income per share of common stock
Net income
Basic.......................... $ 0.18 $ 0.09 $ 0.22 $ 0.10
Diluted........................ $ 0.18 $ 0.09 $ 0.21 $ 0.10
Weighted average number of common
shares and potential common
shares outstanding
Basic.......................... 9,436,275 9,436,275 9,436,275 9,436,275
Diluted........................ 9,477,006 9,478,796 9,476,348 9,481,390
The accompanying Notes to the Condensed Consolidated Financial Statements are
an integral part of these statements.
-2-
MONARCH CASINO & RESORT, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
June 30, December 31,
2001 2000
------------ ------------
(Unaudited)
ASSETS
Current assets
Cash................................................. $ 7,328,465 $ 6,783,998
Receivables, net..................................... 2,964,854 2,963,648
Federal income tax refund receivable................. - 417,135
Related party receivables............................ 65,441 62,920
Inventories.......................................... 1,045,259 1,099,285
Prepaid expenses..................................... 2,154,088 1,875,909
Prepaid federal income taxes ........................ - 154,281
Deferred income taxes................................ 1,738,396 2,045,651
------------- ------------
Total current assets.............................. 15,296,503 15,402,827
------------- ------------
Property and equipment
Land................................................. 10,339,530 10,339,530
Land improvements.................................... 3,173,676 3,173,926
Buildings............................................ 78,955,538 78,955,538
Building improvements................................ 4,719,130 4,733,595
Furniture and equipment................................ 52,136,880 50,924,021
------------- ------------
149,324,754 148,126,610
Less accumulated depreciation and amortization....... (42,523,805) (37,816,876)
------------- ------------
106,800,949 110,309,734
Construction in progress............................. 552,766 -
------------- ------------
Net property and equipment........................ 107,353,715 110,309,734
------------- ------------
Other assets, net...................................... 578,037 678,247
------------- ------------
Total assets...................................... $ 123,228,255 $ 126,390,808
============= ============
The accompanying Notes to the Condensed Consolidated Financial Statements are
an integral part of these statements.
-3-
MONARCH CASINO & RESORT, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
June 30, December 31,
2001 2000
------------ ------------
(Unaudited)
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Current maturities of long-term debt................. $ 8,569,249 $ 7,537,893
Accounts payable..................................... 3,819,418 8,234,219
Accounts payable-construction........................ 4,574 34,650
Accrued expenses..................................... 7,896,719 5,690,888
Federal income taxes payable......................... 222,423 -
------------- ------------
Total current liabilities......................... 20,512,383 21,497,650
Long-term debt, less current maturities................ 68,924,414 73,480,788
Deferred income taxes.................................. 4,926,431 4,583,708
Commitments and contingencies..........................
Stockholders' equity
Preferred stock, $.01 par value, 10,000,000
shares authorized; none issued...................... - -
Common stock, $.01 par value, 30,000,000
shares authorized; 9,536,275 issued;
9,436,275 outstanding............................... 95,363 95,363
Additional paid-in capital........................... 17,241,788 17,241,788
Treasury stock, at cost.............................. (329,875) (329,875)
Retained earnings.................................... 11,857,751 9,821,386
------------- ------------
Total stockholders' equity........................ 28,865,027 26,828,662
------------- ------------
Total liabilities and stockholders' equity........ $123,228,255 $126,390,808
============= ============
The accompanying Notes to the Condensed Consolidated Financial Statements are
an integral part of these statements.
-4-
MONARCH CASINO & RESORT, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
Six Months Ended
June 30,
----------------------------
2001 2000
------------ ------------
(Unaudited) (Unaudited)
Cash flows from operating activities:
Net income............................................ $ 2,036,365 $ 923,025
Adjustments to reconcile net income to
net cash provided by operating activities:
Depreciation and amortization....................... 5,080,486 5,109,154
Gain on disposal of assets.......................... (2,979) (87,980)
Deferred income taxes............................... 649,978 129,416
Decrease (increase) in receivables, net............. 413,408 (1,280,592)
Decrease in inventories............................. 54,026 222,647
Increase in prepaid expenses........................ (123,898) (449,542)
Decrease in other assets............................ 8,766 10,872
Decrease in accounts payable........................ (4,414,801) (1,440,503)
Increase in accrued expenses,
and federal income taxes.......................... 2,428,254 451,124
------------ ------------
Net cash provided by operating activities.......... 6,129,605 3,587,621
------------ ------------
Cash flows from investing activities:
Proceeds from sale of assets.......................... 42,100 87,980
Acquisition of property and equipment................. (1,146,837) (1,670,529)
Decrease in accounts payable construction............. (30,076) (445,707)
------------ ------------
Net cash used in investing activities.............. (1,134,813) (2,028,256)
------------ ------------
Cash flows from financing activities:
Principal payments on long-term debt.................. (4,450,325) (4,023,263)
------------ ------------
Net cash used in
financing activities.............................. (4,450,325) (4,023,263)
------------ ------------
Net increase (decrease) in cash.................... 544,467 (2,463,898)
Cash at beginning of period............................. 6,783,998 6,367,507
------------ ------------
Cash at end of period................................... $ 7,328,465 $ 3,903,609
============ ============
Supplemental disclosure of cash flow information:
Cash paid for interest,
net of capitalized interest.......................... $ 2,857,778 $ 4,101,751
Cash paid for income taxes............................ $ 175,000 $ -
Supplemental schedule of non-cash
investing and financing activities:
The Company financed the purchase of property
and equipment in the following amounts............... $ 925,307 $ 136,009
The accompanying Notes to the Condensed Consolidated Financial Statements are
an integral part of these statements.
-5-
MONARCH CASINO & RESORT, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation
Monarch Casino & Resort, Inc. ("Monarch"), a Nevada corporation, was
incorporated in 1993. Monarch's wholly-owned subsidiary, Golden Road Motor
Inn, Inc. ("Golden Road"), operates the Atlantis Casino Resort (the
"Atlantis"), a hotel/casino facility in Reno, Nevada. Unless stated
otherwise, the "Company" refers collectively to Monarch and its wholly-owned
subsidiary, Golden Road.
The consolidated financial statements include the accounts of Monarch and
Golden Road. Intercompany balances and transactions are eliminated.
Use of Estimates
In preparing these financial statements in conformity with generally
accepted accounting principles in the United States, management is required to
make estimates and assumptions that affect the reported amounts of assets and
liabilities and the disclosure of contingent assets and liabilities at the
date of the financial statements and revenues and expenses during the year.
Actual results could differ from those estimates.
Related Party Receivables
Receivables from officers, employees, or affiliated companies are
primarily for banquet related services and are priced at the retail value of
the goods or services provided.
Shareholder Guarantee Fees
All of the Company's bank debt is personally guaranteed by the Company's
three largest stockholders. Effective January 1, 2001 the Company is
compensating the guarantors at the rate of 2% of annual outstanding bank debt
per annum until the guarantees are cancelled or the notes are paid off. As of
June 30, 2001, $781,639 was accrued and is included in interest expense.
NOTE 2. INTERIM FINANCIAL STATEMENTS
The accompanying condensed consolidated financial statements for the
three and six month periods ended June 30, 2001 and June 30, 2000 are
unaudited. In the opinion of management, all adjustments, consisting of
normal recurring adjustments necessary for a fair presentation of the
Company's financial position and results of operations for such periods, have
been included. The accompanying unaudited condensed consolidated financial
statements should be read in conjunction with the Company's audited financial
statements included in its Annual Report on Form 10-K for the year ended
December 31, 2000. The results for the three and six month periods ended June
30, 2001 are not necessarily indicative of the results that may be expected
for the year ended December 31, 2001, or for any other period.
-6-
NOTE 3. EARNINGS PER SHARE
The Company accounts for earnings per share using Statement of Financial
Accounting Standards ("SFAS") No. 128, "Earnings Per Share." 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 June 30,
-----------------------------------
2001 2000
---------------- ----------------
Per Share Per Share
Shares Amount Shares Amount
------ --------- ------ ---------
Net Income
Basic..................... 9,436 $0.18 9,436 $0.09
Effect of dilutive
stock options............ 41 - 43 -
------ ------- ------ -------
Diluted................... 9,477 $0.18 9,479 $0.09
====== ======= ====== =======
Six Months Ended June 30,
-----------------------------------
2001 2000
---------------- ----------------
Per Share Per Share
Shares Amount Shares Amount
------ --------- ------ ---------
Net Income
Basic..................... 9,436 $0.22 9,436 $0.10
Effect of dilutive
stock options............ 40 (0.01) 45 -
------ ------ ------ ------
Diluted................... 9,476 $0.21 9,481 $0.10
====== ====== ====== ======
-7-
The following options were not included in the computation of diluted
earnings per share because the options' exercise price was greater than the
average market price of the common shares and their inclusion would be
antidilutive:
Three Months Ended June 30,
----------------------------
2001 2000
----------- -----------
Options to purchase shares of
common stock (in thousands)..... 17 19
Exercise prices.................. $5.50-$5.94 $5.25-$6.00
Expiration dates................. 9/03-2/10 6/03-2/10
Six Months Ended June 30,
----------------------------
2001 2000
----------- -----------
Options to purchase shares of
common stock (in thousands)..... 20 19
Exercise prices.................. $5.25-$5.94 $5.25-$6.00
Expiration dates................. 9/03-2/10 6/03-2/10
-8-
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
STATEMENT ON FORWARD-LOOKING INFORMATION
Certain information included herein contains statements that may be
considered forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934,
such as statements relating to anticipated expenses, capital spending and
financing sources. Such forward-looking information involves important risks
and uncertainties that could significantly affect anticipated results in the
future and, accordingly, such results may differ from those expressed in any
forward-looking statements made herein. These risks and uncertainties
include, but are not limited to, those relating to competitive industry
conditions, and expansion of Indian casinos in California, Reno-area tourism
conditions, dependence on existing management, leverage and debt service
(including sensitivity to fluctuations in interest rates), the regulation of
the gaming industry (including actions affecting licensing), outcome of
litigation, domestic or global economic conditions, changes in federal or
state tax laws or the administration of such laws.
RESULTS OF OPERATIONS
Comparison of Operating Results for the Three Month
Periods Ended June 30, 2001 and 2000
For the three month period ended June 30, 2001, the Company earned $1.7
million, or $0.18 per share, on net revenues of $27.7 million, compared to
earnings of $830 thousand, or $0.09 per share, on net revenues of $25.0
million for the three months ended June 30, 2000. Income from operations for
the three months ended June 30, 2001 totaled $5.1 million, compared to $3.4
million for the 2000 second quarter.
Casino revenues totaled $17.4 million in the second quarter of 2001, an
increase of 12.0% from $15.5 million in the 2000 second quarter, reflecting an
increase in slot and poker room win. Slot revenues were up 19.7% in the
second quarter of 2001 compared to the second quarter of 2000 due to an
increase in the volume of slot machine play. Table game revenue for the three
months ended June 30, 2001, decreased 10.3% compared to the same period in
2000, primarily due to a decrease in table game hold percentage, while drop
remained relatively unchanged. Poker room revenue increased 23.7% for the
three months ended June 30, 2001, compared to the same period last year.
Casino operating expenses amounted to 37.4% of casino revenues in the 2001
second quarter, compared to 41.2% in the 2000 second quarter, primarily due to
successful efforts to manage variable expenses.
Food and beverage revenues for the 2001 second quarter totaled $8.1
million, an increase of 9.6% from $7.4 million in the 2000 second quarter, due
primarily to an increase in average revenue per cover. Food and beverage
operating expenses amounted to 58.2% of food and beverage revenue in the 2001
second quarter, compared to 62.0% in the second quarter of 2000, primarily due
to a reduction in average food cost of sales and overall successful efforts to
manage variable expenses.
-9-
Hotel revenues increased 6.8% to $5.0 million from $4.6 million in the
2000 second quarter, as a result of an increase in the average daily room rate
("ADR"), offset, in part, by a decrease in the occupancy rate. The Atlantis'
ADR was $55.25 for the 2001 second quarter compared to $51.73 in the second
quarter of 2000. The occupancy rate was 92.7% during the 2001 second quarter,
down from an occupancy rate of 96.7% during the same period last year. Hotel
operating expenses in the 2001 second quarter were 35.5% of hotel revenues,
compared to 34.6% in the 2000 second quarter, due primarily to an increase in
bad debts expense.
Other revenues totaled $842 thousand in the second quarter of 2001, down
6.0% from $896 thousand in the second quarter of 2000, primarily reflecting
certain non-recurring revenue items in the second quarter of 2000. Other
expenses in the 2001 second quarter were 40.6% of other revenues, compared to
39.8% in the 2000 second quarter.
Selling, general and administrative ("SG&A") expenses were $6.8 million
in the 2001 second quarter, compared to $6.1 million in the second quarter of
2000. As a percentage of net revenue, SG&A expenses remained relatively
constant at 24.4% in the second quarter of 2001 compared to 24.3% in the 2000
second quarter.
Interest expense for the 2001 second quarter totaled $2.5 million, an
increase of 15.6% from $2.2 million in the second quarter of 2000. The
increase in interest expense is due to the accrual of interest payable to the
Company's three largest stockholders for their personal guarantee of all bank
debt of the Company. Effective January 1, 2001 the Company is compensating
the guarantors at the rate of 2% of annual outstanding bank debt per annum
until the guarantees are cancelled or the notes are paid off.
Comparison of Operating Results for the Six Month
Periods Ended June 30, 2001 and 2000
For the six months ended June 30, 2001, the Company earned $2.0 million,
or $0.21 per share (diluted), on net revenues of $51.5 million, compared to
earnings of $923 thousand, or $0.10 per share (diluted), on net revenues of
$47.6 million during the six months ended June 30, 2000. Operating income for
the 2001 six month period totaled $7.5 million, compared to $5.6 million for
the same period in 2000.
Casino revenues for the first six months of 2001 totaled $32.4 million, a
9.5% increase from $29.6 million for the first six months of 2000, reflecting
increases in both slot and poker room win. Slot revenues were up 13.5% in the
first six months of 2001 compared to the first six months of 2000 due to an
increase in the volume of slot machine play for the six month period. Table
game revenue for the six months ended June 30, 2001 decreased 4.3% compared to
the same period in 2000, primarily due to a decrease in table game hold for
the six month period. Poker room revenue increased 30.2% for the six months
ended June 30, 2001 compared to the same period last year. Casino operating
expenses amounted to 39.4% of casino revenues for the six months ended June
30, 2001, compared to 41.4% for the same period in 2000, primarily due to
successful efforts to manage variable expenses.
-10-
Food and beverage revenues totaled $15.6 million for the six months ended
June 30, 2001, an increase of 10.2% from the $14.2 million for the six months
ended June 30, 2000, due primarily to an increase in average revenue per
cover. Food and beverage operating expenses amounted to 57.0% of food and
beverage revenues during the 2001 six month period, compared to 62.3% for the
same period in 2000, which was primarily due to a reduction in average food
cost of sales and our overall successful efforts to manage variable expenses.
Hotel revenues for the first six months of 2001 increased 3.4% to $9.1
million, up from $8.8 million for the first six months of 2000, primarily due
to an increase in the average daily room rate. While the Atlantis experienced
a slight decrease in the occupancy rate during the 2001 six month period of
91.0%, compared to 91.6% for the same period in 2000, the ADR increased to
$51.69 for the six month period in 2001, from $51.23 for the same period in
2000. Hotel operating expenses in the first six months of 2001 were 37.3% of
hotel revenues, compared to 36.8% for the same period in 2000. This slight
increase in operating expenses as a percentage of hotel revenues resulted from
increased payroll and operating costs and additional amenities for the
expanded hotel.
Other revenues were $1.6 million for the six months ended June 30, 2001,
a decrease of 4.7% from $1.7 million in the same period in 2000, reflecting a
non-recurring gain in the second quarter of 2000. Other expenses as a
percentage of revenue remained fairly constant at 39.1% and 38.9% for the six
month periods ended June 30, 2001 and 2000, respectively.
Selling, general and administrative expenses increased 10.9% to $13.3
million in the first six months of 2001, compared to $12.0 million in the
first six months of 2000, primarily as a result of increased marketing
expenditures. As a percentage of net revenue, SG&A expenses increased only
slightly to 25.9% in the 2001 six month period from 25.3% in the same period
in 2000.
Interest expense for the first six months of 2001 totaled $4.4 million,
an increase of 4.0%, compared to $4.2 million for the same period one year
earlier. The increase in interest expense is due to the accrual of interest
payable to the Company's three largest stockholders for their personal
guarantee of all bank debt of the Company. Effective January 1, 2001 the
Company is compensating the guarantors at the rate of 2% of annual outstanding
bank debt per annum until the guarantees are cancelled or the notes are paid
off.
OTHER FACTORS AFFECTING CURRENT AND FUTURE RESULTS
The constitutional amendment approved by California voters in 1999
allowing the expansion of Indian casinos in California will have an impact on
casino revenues in Nevada in general, and many analysts have predicted the
impact will be more significant on the Reno-Lake Tahoe market. The extent of
this impact is difficult to predict, but the Company believes that the impact
on the Company versus its Reno competition will be mitigated to an extent due
to the Atlantis' emphasis on Reno area residents as a significant base of its
business and its proximity to the expanded convention center. However, if
other Reno area casinos suffer business losses due to increased pressure from
California Indian casinos, they may intensify their marketing efforts to Reno
area residents as well.
-11-
The Company also believes that unlimited land-based casino gaming in or
near any major metropolitan area in the Atlantis' key marketing areas, such as
San Francisco or Sacramento, could have a material adverse effect on its
business.
LIQUIDITY AND CAPITAL RESOURCES
For the six months ended June 30, 2001, net cash provided by operating
activities totaled $6.1 million. Net cash used in investing activities for
the same period totaled $1.1 million, which consisted primarily of
acquisitions of property and equipment at the Atlantis. Net cash used in
financing activities totaled $4.5 million as the Company used funds to reduce
long-term debt. As a result, at June 30, 2001, the Company had cash of $7.3
million, compared to $6.8 million at December 31, 2000.
The Company has an $80 million construction and reducing revolving credit
facility with a group of banks (the "Credit Facility"). The principal terms
of the Credit Facility are summarized in the Company's Annual Report on Form
10-K for the year ended December 31, 2000. At June 30, 2001, the outstanding
balance of the Credit Facility was $72.1 million.
The Company believes that its existing cash balances, cash flow from
operations, and availability of equipment financing, if necessary, will
provide the Company with sufficient resources to fund its operations, meet its
existing debt obligations, and fulfill its capital expenditure requirements;
however, the Company's operations are subject to financial, economic,
competitive, regulatory, and other factors, many of which are beyond its
control. If the Company is unable to generate sufficient cash flow, it could
be required to adopt one or more alternatives, such as reducing, delaying, or
eliminating planned capital expenditures, selling assets, restructuring debt,
or obtaining additional equity capital.
PART II. OTHER INFORMATION
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
On June 6, 2001, the Company conducted its annual meeting of stockholders in
Reno, Nevada, in which the only action taken was the election of one new
director and the re-election of three directors whose term expired in 2001.
The results were as follows:
Votes Cast
--------------------
Against or
Name of Director Elected For Withheld
------------------------ --------------------
Bob Farahi 9,349,688 14,750
Ben Farahi 9,349,688 14,750
Ronald R. Zideck 9,349,688 14,750
Stephen L. Cavallaro 9,349,688 14,750
On June 20, 2001, Mr. Cavallaro resigned from the Board of Directors
after accepting a senior executive position with another gaming company. On
July 6, 2001, Charles ("Chuck") Scharer was appointed by the Board to fill the
vacancy created by Mr. Cavallaro's resignation.
-12-
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits
Exhibit No. Description
----------- -----------
None
(b) Reports on Form 8-K
None
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
MONARCH CASINO & RESORT, INC.
(Registrant)
Date: August 13, 2001 By: /s/ BEN FARAHI
------------------------------------
Ben Farahi, Co-Chairman of the Board,
Secretary, Treasurer and Chief
Financial Officer(Principal Financial
Officer and Duly Authorized Officer)
EXHIBIT INDEX
Exhibit No. Description Page
No.
- ----------- ----------- --------
None
-13-