Overview

• US casino operator's Q1 revenue rose 8.9% yr/yr, beating analyst expectations

• Q1 adjusted EBITDA grew 19%, beating analyst estimates

• Company repurchased 181,258 shares for $17.6 mln during Q1

Outlook

• Company expects to continue investing in properties and deploying technology to reduce costs

• Monarch plans to continue share repurchases and quarterly dividend payments, subject to board review

• Company is evaluating potential M&A transactions to drive long-term value

Result Drivers

• SEGMENT GROWTH - Casino revenue rose 9.4%, hotel revenue grew 13.5%, and food and beverage revenue increased 5.6% yr/yr

• HIGHER HOTEL OCCUPANCY - Hotel and F&B revenue benefited from more available rooms at Atlantis and improved convention and group business

• OPERATING EFFICIENCY - Lower operating expenses as a percentage of revenue in casino, hotel, and F&B segments supported margin improvement

Company press release: ID:nGNX6Qjg38

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q1 Revenue	Beat	$136.55 mln	$128.49 mln (5 Analysts)
Q1 EPS		$1.52
Q1 Adjusted EBITDA	Beat	$48.95 mln	$42.92 mln (5 Analysts)

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the casinos & gaming peer group is "buy."

• Wall Street's median 12-month price target for Monarch Casino & Resort Inc is $105.50, about 6.4% above its April 20 closing price of $99.13

• The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 17 three months ago

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