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, 1998
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: (702) 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, 1998,
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.
CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months Ended Six Months Ended
June 30, June 30,
-------------------------- --------------------------
1998 1997 1998 1997
------------ ------------ ------------ ------------
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
Revenues
Casino............................... $ 10,681,129 $ 10,154,909 $ 20,180,099 $ 19,249,057
Food and beverage.................... 4,772,862 4,517,100 8,996,263 8,692,946
Hotel................................ 3,046,689 2,598,008 5,449,103 4,856,375
Other................................ 695,125 634,486 1,257,519 1,127,829
------------ ------------ ------------ ------------
Gross revenues.................... 19,206,762 17,904,503 35,893,941 33,926,207
Less promotional allowances.......... (2,633,993) (2,155,463) (4,767,930) (4,039,302)
------------ ------------ ------------ ------------
Net revenues...................... 16,561,812 15,749,040 31,115,054 29,886,905
------------ ------------ ------------ ------------
Operating expenses
Casino............................... 4,538,495 4,194,303 8,609,530 7,893,977
Food and beverage.................... 2,591,075 2,437,800 4,876,778 4,767,223
Hotel................................ 893,817 989,263 1,814,431 1,901,497
Other................................ 127,781 107,765 245,094 213,819
Selling, general and administrative.. 4,246,132 4,000,037 8,289,971 7,896,193
Depreciation and amortization........ 1,156,104 1,053,687 2,286,148 2,119,991
------------ ------------ ------------ ------------
Total............................. 13,553,404 12,782,855 26,121,952 24,792,700
------------ ------------ ------------ ------------
Income from operations............ 3,008,408 2,966,185 4,993,102 5,094,205
------------ ------------ ------------ ------------
Other expense
Interest expense..................... 581,101 829,582 1,197,734 1,700,509
------------ ------------ ------------ ------------
Total............................. 581,101 829,582 1,197,734 1,700,509
------------ ------------ ------------ ------------
Income before income taxes........ 2,427,307 2,136,603 3,795,368 3,393,696
Provision for income taxes............. 825,284 726,445 1,290,390 1,153,856
------------ ------------ ------------ ------------
Net Income........................ $ 1,602,023 $ 1,410,158 $ 2,504,978 $ 2,239,840
============ ============ ============ ============
Income per share of common stock
Net income
Basic.............................. $ 0.17 $ 0.15 $ 0.27 $ 0.24
Diluted............................ $ 0.17 $ 0.15 $ 0.26 $ 0.24
Weighted average number of common
shares and potential common
shares outstanding
Basic.............................. 9,436,275 9,451,780 9,436,275 9,452,524
Diluted............................ 9,508,406 9,462,325 9,506,560 9,454,600
The accompanying Notes to Consolidated Financial Statements are an
integral part of these statements.
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MONARCH CASINO & RESORT, INC.
CONSOLIDATED BALANCE SHEETS
June 30, December 31,
1998 1997
------------ ------------
(Unaudited)
ASSETS
Current assets
Cash........................................ $ 4,034,413 $ 5,527,839
Receivables, net............................ 1,339,263 837,420
Inventories................................. 410,799 570,367
Prepaid expenses............................ 1,485,839 1,333,176
Deferred income taxes....................... 695,000 1,055,000
------------ ------------
Total current assets..................... 7,965,314 9,323,802
------------ ------------
Property and equipment
Land........................................ 10,339,530 10,339,530
Buildings................................... 36,273,298 36,273,298
Furniture and equipment..................... 23,412,042 22,304,919
Improvements................................ 5,067,268 5,040,033
------------ ------------
75,092,138 73,957,780
Less accumulated
depreciation and amortization.............. (20,025,261) (17,868,111)
------------ ------------
55,066,877 56,089,669
Construction in progress.................... 2,555,845 682,047
------------ ------------
Net property and equipment............... 57,622,722 56,771,716
------------ ------------
Other assets.................................. 1,781,578 1,732,569
------------ ------------
$ 67,369,614 $ 67,828,087
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Current maturities of long-term debt........ $ 2,512,504 $ 2,243,611
Accounts payable............................ 2,802,764 4,111,457
Accrued expenses............................ 3,166,828 3,383,855
Federal income taxes payable................ 220,881 240,970
------------ ------------
Total current liabilities................ 8,702,977 9,979,893
Long-term debt, less current maturities....... 31,232,995 32,907,530
Deferred income taxes......................... 2,235,000 2,247,000
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 and 9,436,275 outstanding........ 95,363 95,363
Additional paid-in capital.................. 17,241,788 17,241,788
Treasury stock.............................. (329,875) (329,875)
Retained earnings........................... 8,191,366 5,686,388
------------ ------------
Total stockholders' equity............... 25,198,642 22,693,664
------------ ------------
$ 67,369,614 $ 67,828,087
============ ============
The accompanying Notes to Consolidated Financial Statements are an
integral part of these statements.
-3-
MONARCH CASINO & RESORT, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
Six Months Ended
June 30,
----------------------------
1998 1997
------------ ------------
(Unaudited) (Unaudited)
Cash flows from operating activities:
Net income.................................. $ 2,504,978 $ 2,239,840
Adjustments to reconcile net income to
net cash provided by operating activities:
Depreciation and amortization............. 2,286,148 2,119,991
(Gain) loss on disposal of assets......... 17,495 (412)
Increase in receivables, net.............. (501,843) (580,824)
Decrease in inventories................... 159,568 30,418
Increase in prepaid expenses.............. (152,663) (315,563)
Decrease in deferred income tax asset..... 360,000 -
Increase in other assets.................. (49,009) (19,167)
Decrease in accounts payable.............. (1,308,693) (459,731)
Increase (decrease) in accrued expenses... (237,116) 8,324
Increase (decrease) in deferred
income tax liability..................... (12,000) 1,078,856
------------ ------------
Net cash provided by
operating activities.................... 3,066,865 4,101,732
------------ ------------
Cash flows from investing activities:
Proceeds from sale of assets................ 8,120 187,215
Acquisition of property and equipment....... (2,495,561) (802,716)
------------ ------------
Net cash used in investing activities.... (2,487,441) (615,501)
------------ ------------
Cash flows from financing activities:
Principal payments on long-term debt........ (2,072,850) (4,504,805)
Acquisition of treasury stock............... - (65,875)
------------ ------------
Net cash used in financing activities.... (2,072,850) (1,084,449)
------------ ------------
Net decrease in cash..................... (1,493,426) (1,084,449)
Cash at beginning of period................... 5,527,839 4,021,952
------------ ------------
Cash at end of period......................... $ 4,034,413 $ 2,937,503
============ ============
Supplemental disclosure of
cash flow information:
Cash paid for interest,
net of capitalized interest................ $ 1,198,350 $ 1,726,687
Capitalized interest........................ 47,409 -
Cash paid for income taxes.................. 962,479 360,000
Supplemental schedule of non-cash
investing and financing activities:
The Company financed the purchase of property
and equipment in the following amounts..... 667,208 192,987
The accompanying Notes to Consolidated Financial Statements are an
integral part of these statements.
-4-
MONARCH CASINO & RESORT, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation
Monarch Casino & Resort, Inc. ("Monarch") was incorporated in 1993.
Golden Road Motor Inn, Inc. ("Golden Road") operates the Atlantis Casino
Resort (the "Atlantis") in Reno, Nevada. Unless stated otherwise, the
"Company" refers collectively to Monarch, its wholly owned subsidiary, Golden
Road, and majority owned subsidiaries, Dunes Marina Resort and Casino, Inc.
("Dunes Marina"), formed in December 1993, and Sea World Processors, Inc.
("Sea World"), purchased in February 1994.
The consolidated financial statements include the accounts of Monarch,
Golden Road, Dunes Marina and Sea World, and eliminate intercompany balances
and transactions.
Use of Estimates
In preparing these financial statements in conformity with generally
accepted accounting principles, 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.
Reclassifications
Certain amounts in the 1997 consolidated financial statements have been
reclassified to conform with the 1998 presentation. These reclassifications
had no effect on the Company's net income.
NOTE 2. INTERIM FINANCIAL STATEMENTS
The accompanying consolidated financial statements for the three month
and six month periods ended June 30, 1998 and June 30, 1997 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 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, 1997. The results
for the three month and six month periods ended June 30, 1998 are not
necessarily indicative of the results that may be expected for the year ending
December 31, 1998, or for any other period.
NOTE 3. EARNINGS PER SHARE
In 1997, the Company adopted the provisions of SFAS No. 128, Earnings Per
Share. Earnings per share for all periods presented have been restated to
reflect the adoption of SFAS No. 128. SFAS No. 128 requires companies to
present basic earnings per share, and, if applicable, diluted earnings per
share. Basic earnings per share excludes dilution and is computed by dividing
net earnings available to common stockholders by the weighted average number
of common shares outstanding for the period. Diluted earnings per share
-5-
reflects the potential dilution that could occur if options to issue common
stock were exercised into common stock.
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,
-----------------------------------
1998 1997
---------------- ----------------
Per Share Per Share
Shares Amount Shares Amount
------ --------- ------ ---------
Net Income
Basic..................... 9,436 $0.17 9,452 $0.15
Effect of dilutive
stock options............ 72 - 10 -
------ --------- ------ ---------
Diluted................... 9,508 $0.17 9,462 $0.15
====== ========= ====== =========
Six Months ended June 30,
-----------------------------------
1998 1997
---------------- ----------------
Per Share Per Share
Shares Amount Shares Amount
------ --------- ------ ---------
Net Income
Basic..................... 9,436 $0.27 9,453 $0.24
Effect of dilutive
stock options............ 70 (.01) 2 -
------ --------- ------ ---------
Diluted................... 9,506 $0.26 9,455 $0.24
====== ========= ====== =========
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:
-6-
Three Months ended June 30,
----------------------------
1998 1997
----------- -----------
Options to purchase shares of
common stock (in thousands)..... 17 77
Exercise prices.................. $6.44-$8.06 $3.50-$8.06
Expiration dates................. 9/98-5/08 9/98-6/02
Six Months ended June 30,
----------------------------
1998 1997
----------- -----------
Options to purchase shares of
common stock (in thousands)..... 17 188
Exercise prices.................. $6.44-$8.06 $2.88-$8.06
Expiration dates................. 9/98-5/08 9/98-5/07
-7-
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, 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, and
issues related to the year 2000.
RESULTS OF OPERATIONS
Comparison of Operating Results for the Three Month
Periods Ended June 30, 1998 and 1997
For the three month period ended June 30, 1998, the Company earned $1.6
million, or $.17 per share, on net revenues of $16.6 million, up from earnings
of $1.4 million, or $.15 per share, on net revenues of $15.7 million for the
three months ended June 30, 1997. The Company's income from operations
totaled $3.0 million in each of the 1998 and 1997 second quarter periods. The
Company's net revenues, net income and earnings per share for the three months
ended June 30, 1998 represent the best second quarter results in the Company's
history. In the 1998 second quarter, the Company continued to benefit from
the rapid growth occurring in the residential and industrial communities south
of the Atlantis in Reno, and from the increasing popularity of the Atlantis
with visitors to the Reno area. The Company also believes its 1998 second
quarter results reflect effective marketing programs and the positive impact
of the 1998 American Bowling Congress ("ABC") tournament, which ran from March
through June at the National Bowling Stadium in downtown Reno.
Casino revenues totaled $10.7 million in the second quarter of 1998, up
from $10.2 million in the 1997 second quarter, with increases in both slot and
table game revenues contributing to the increase. Casino operating expenses
amounted to 42.5% of casino revenues in the 1998 second quarter, compared to
41.3% in the 1997 second quarter, primarily as a result of higher promotional
allowance costs in the 1998 period.
Food and beverage revenues for the 1998 second quarter totaled $4.8
million, up from $4.5 million for the 1997 second quarter, with the increase
primarily due to an increase in the amount of revenue generated per customer
at the Atlantis' food and beverage outlets. Food and beverage operating
expenses during the 1998 second quarter amounted to 54.3% of food and beverage
revenues, up slightly from 54.0% for the second quarter of 1997.
Hotel revenues in the 1998 second quarter increased to $3.0 million from
$2.6 million in the 1997 second quarter, reflecting a substantial improvement
-8-
in the Atlantis' average daily room rate ("ADR") and a slight improvement in
the Atlantis' average occupancy rate during the 1998 period. Hotel operating
expenses in the 1998 second quarter equaled 29.3% of hotel revenues, compared
to 38.1% for the same quarter in 1997, with the improvement reflecting
increased operating efficiencies and a higher level of revenue from which to
offset the relatively high level of fixed costs of the hotel operation.
Other revenues in the 1998 second quarter totaled $695 thousand, up from
$634 thousand in the 1997 second quarter, with the increase due primarily to
increased retail sales at the Atlantis. Other expenses increased slightly as
a percentage of other revenues, rising to 18.4% in the 1998 second quarter
from 17.0% in the 1997 second quarter.
Selling, general and administrative expenses were essentially unchanged
in the 1998 second quarter at 25.6% of net revenues, compared to 25.4% in the
second quarter of 1997.
Interest expense for the 1998 second quarter totaled $581 thousand, down
from $830 thousand in the second quarter of 1997, reflecting lower average
outstanding debt, lower average interest rates on the Company's debt, and the
capitalization of certain interest costs during the 1998 period. During the
1998 second quarter, the Company capitalized approximately $29 thousand in
interest costs related to construction activities at the Atlantis.
Comparison of Operating Results for the Six Month
Periods Ended June 30, 1998 and 1997
For the six months ended June 30, 1998, the Company earned $2.5 million,
or $.26 per share (diluted), on net revenues of $31.1 million, compared to
earnings of $2.2 million, or $.24 per share, on net revenues of $29.9 million
during the six months ended June 30, 1997. Operating income for the 1998 six
month period totaled $5.0 million, compared to $5.1 million for the same
period in 1997. Net revenues, net income and earnings per share for the
first half of 1998 represented the best first half results in Monarch's
history.
Casino revenues for the first six months of 1998 totaled $20.2 million,
up from $19.2 million for the first six months of 1997, driven by growth in
both slot and table game revenues. Casino operating expenses amounted to
42.7% of casino revenues for the six months ended June 30, 1998, compared to
41.0% for the six month period ending June 30, 1997, with the change due
primarily to higher promotional allowance costs during the 1998 period.
Food and beverage revenues totaled $9.0 million for the six months ended
June 30, 1998, compared to $8.7 million for the six months ended June 30,
1997. The Company's food and beverage operating expense margin improved
slightly to 54.2% in the 1998 period from 54.8% for the same period in 1997.
Hotel revenues for the first six months of 1998 totaled $5.4 million, up
from $4.9 million for the first six months of 1997, with the improvement
primarily due to an increase in the Atlantis' ADR in the 1998 period. The
hotel operating expense margin for the six month period ended June 30, 1998
was 33.3%, compared to 39.2% for the first six months of 1997, with the
improvement reflecting increased operating efficiencies and a higher level of
revenue from which to offset the relatively high level of fixed costs of the
hotel operation.
-9-
Selling, general and administrative expenses were essentially unchanged
in the first six months of 1998 at 26.6% of net revenues, compared to 26.4% in
the first six months of 1997.
Interest expense for the first six months of 1998 totaled $1.2 million,
down from $1.7 million in the first six months of 1997, reflecting lower
average outstanding debt, lower average interest rates on the Company's debt,
and the capitalization of certain interest costs during the 1998 period.
During the 1998 period, the Company capitalized approximately $47 thousand in
interest costs related to construction activities at the Atlantis.
OTHER FACTORS AFFECTING CURRENT AND FUTURE RESULTS
The Company signed an agreement with Perini Building Company on June 12,
1998 to construct an expansion of the Atlantis that will add approximately 390
rooms, 16,000 square feet of additional casino space and other amenities to
the Atlantis (the "Expansion Project"). Major construction activity is
underway at the Atlantis, which could result in business disruptions while the
construction is underway. The Company has carefully planned the project to
mitigate the disruptive effects of construction by redirecting traffic flows,
creating alternative access points at the Atlantis, and restricting
construction crews, materials and vehicles to specified areas; however, the
Company believes it is unlikely that such steps will completely alleviate the
disruptive impact of this large-scale construction project.
On April 20, 1998, the Company entered into a contract with Krump
Construction, Inc. ("Krump") of Reno, Nevada to construct a pedestrian
overhead walkway connecting the Atlantis with a 16-acre site owned by the
Company adjacent to and across South Virginia Street from the Atlantis (the
"Walkway Project"). Although the Walkway Project is much smaller in scale
than the Expansion Project, the construction activity associated with the
Walkway Project could also impede access to the property and result in
business disruptions while the construction is underway. The Company has
taken similar steps to those described above to minimize the disruptive impact
of this construction activity, but believes that some disruption will occur.
With the Expansion Project and the Walkway Project, the Company is
subject to certain risks typically associated with large-scale construction
projects, including the risks of delay, shortages of materials or skilled
labor, unforeseen engineering, environmental and/or geological problems, work
stoppages, weather interference and unanticipated cost increases.
LIQUIDITY AND CAPITAL RESOURCES
For the six months ended June 30, 1998, net cash provided by operating
activities totaled $3.1 million. Net cash used in investing activities for
the same period totaled $2.5 million, which consisted entirely of acquisitions
of property and equipment at the Atlantis, and net cash used in financing
activities totaled $2.1 million, with funds used to reduce the Company's
outstanding debt. As a result, at June 30, 1998 the Company had cash of $4.0
million, compared to $5.5 million at December 31, 1997.
On December 30, 1997, the Company completed the refinancing of its long-
term debt with an $80 million construction and reducing revolving credit
facility with a group of banks (the "Credit Facility"). The Credit Facility
replaced approximately $33 million in existing long-term debt, with the
-10-
remainder of the $80 million Credit Facility available for use as a source of
funding for the Expansion Project and the Walkway Project. 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, 1997.
The Company has signed contracts to construct the Expansion Project and
the Walkway Project, which the Company currently estimates will cost
approximately $63 million to construct. The Company believes it will have
adequate resources available through cash on hand, cash flow from operations,
and borrowings allowed under the Credit Facility to construct the Expansion
Project and the Walkway Project.
In addition to the potential funding requirements associated with the
Expansion Project and the Walkway Project, the Company continues to monitor
expansion opportunities at its other Reno site and elsewhere in Nevada and in
other jurisdictions. The decision by the Company to proceed with any
substantial project will require the Company to secure adequate financing on
acceptable terms. No assurances can be made that if such projects are pursued
that adequate financing would be available on acceptable terms, if at all.
The Company believes that its existing cash balances, cash flow from
operations and borrowings allowed under the Credit Facility will provide the
Company with sufficient resources to fund its operations, meet its existing
debt obligations and fund 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.
On April 10, 1995, the Company announced that its Board of Directors
authorized the open market repurchase of up to 200,000 shares of the Company's
common stock. As of August 10, 1998, the Company had repurchased 100,000
shares on the open market at a total cost of approximately $330 thousand under
this authorization. The Company has funded the purchases made to date and
intends to fund any future repurchases from cash on hand.
YEAR 2000
During 1997, the Company undertook an assessment of the information
systems and software used in its operations to determine whether or not those
systems were Year 2000 compliant, and implemented plans to upgrade systems
and/or software that was determined not to be Year 2000 compliant. Based on
that assessment and the plans made as a result thereof, the Company believes
that its critical internal information systems are Year 2000 compliant or will
be made Year 2000 compliant before the end of 1999. The Company has begun and
is continuing to assess potential issues related to the Year 2000 other than
those relating to the Company's internal information systems, such as critical
supplier readiness and potential problems associated with embedded
technologies, and will develop and implement plans to correct any deficiencies
found. The costs of addressing the Company's year 2000 issues have not been
finally determined, but are not currently expected to be material to the
Company's results of operations or financial position; however, should the
Company and/or its critical suppliers fail to identify and/or correct material
Year 2000 issues, such failure could impact the Company's ability to operate
-11-
as it did before the Year 2000, and subsequently have a material impact on the
Company's results of operations or financial position. In such an event, the
Company will address issues as they arise and strive to minimize any impact on
the Company's operations.
For a more detailed discussion of the Company's liquidity and capital
resources, and issues related to the Year 2000, see the Company's Annual
Report on Form 10-K for the year ended December 31, 1997, Item 7.
-12-
PART II. OTHER INFORMATION
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits
Exhibit No. Description
----------- -----------
10.01 Second Amendment to Construction and
Reducing Revolving Credit Agreement, dated
as of June 12, 1998, among Golden Road
Motor Inn, Inc. as Borrower, Monarch Casino
& Resort, Inc., John Farahi, Bahram Farahi,
and Behrouz Farahi as guarantors, the
Lenders as defined therein, and Wells Fargo
Bank as administrative and collateral Agent
for the Lenders, Swingline Lender and L/C
Issuer.
10.02 Agreement dated June 12, 1998, between
Golden Road Motor Inn, Inc. and Perini
Building Company, Inc.
EX-27 Financial Data Schedule
(b) Reports on Form 8-K
None
-13-
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, 1998 By: /s/ BEN FARAHI
------------------------------------
Ben Farahi, Co-Chairman of the Board,
Secretary, Treasurer and Chief
Financial Officer(Principal Financial
Officer and Duly Authorized Officer)
-14-
EXHIBIT INDEX
Exhibit No. Description Page No.
- ----------- ----------- --------
10.01 Second Amendment to Construction and 16
Reducing Revolving Credit Agreement, dated
as of June 12, 1998, among Golden Road
Motor Inn, Inc. as Borrower, Monarch Casino
& Resort, Inc., John Farahi, Bahram Farahi,
and Behrouz Farahi as guarantors, the
Lenders as defined therein, and Wells Fargo
Bank as administrative and collateral Agent
for the Lenders, Swingline Lender and L/C
Issuer.
10.02 Agreement dated June 12, 1998, between 26
Golden Road Motor Inn, Inc. and Perini
Building Company, Inc.
EX-27 Financial Data Schedule 75
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