Monarch Casino & Resort Inc. (MCRI, Financial) filed Quarterly Report for the period ended 2010-06-30.
Monarch Casino & Resort Inc. has a market cap of $176.4 million; its shares were traded at around $10.94 with a P/E ratio of 20.6 and P/S ratio of 1.3. Monarch Casino & Resort Inc. had an annual average earning growth of 4.4% over the past 10 years.MCRI is in the portfolios of Jim Simons of Renaissance Technologies LLC.
SG&A expense totaled $11.9 million in the second quarter of 2010, a 3.3% decrease from $12.3 million in the second quarter of 2009. The decrease was primarily due to lower legal expenses of approximately $340 thousand, payroll and benefits expense of approximately $180 thousand and utilities expense of approximately $140 thousand partially offset by higher marketing expense of approximately $210 thousand and miscellaneous expense of approximately $50 thousand. SG&A expense as a percentage of net revenues decreased to 33.0% for the second quarter of 2010 as compared to 35.7% in the second quarter of 2009. This decrease is the result of the higher net revenue combined with the lower expenses.
During the three month period ended June 30, 2010, we paid down the balance outstanding under our credit facility by $3.2 million, which decreased the outstanding balance of the credit facility from $41.0 million at March 31, 2010 to $37.8 million at June 30, 2010. Because of the lower average borrowing balance in the second quarter of 2010 as compared the second quarter of 2009, interest expense decreased during the second quarter of 2010 to $366 thousand from $571 thousand in the second quarter of 2009.
For the six months ended June 30, 2010, our net income was $5.1 million, or $0.32 per diluted share, on net revenues of $70.5 million, an increase from net income of $2.7 million, or $0.17 per diluted share, on net revenues of $67.0 million during the six months ended June 30, 2009. Income from operations for the 2010 six-month period totaled $8.7 million, compared to $5.2 million for the same period in 2009. Net revenues increased 5.2%, and net income increased 88.9% when compared to the six-month period ended June 30, 2009.
Hotel revenues for the first six months of 2010 increased slightly to $11.1 million from $10.0 million for the first six months of 2009. This increase was due to a slight increase in hotel occupancy combined with an increase in the average daily room rate (ADR) and revenue from a $10 per day resort fee, paid by our hotel guests, which we implemented on June 1, 2009. Hotel revenues for the first five months of 2009 include a $3 per occupied room energy surcharge. This surcharge was eliminated when we implemented the $10 per day resort fee on June 1, 2009. ADR during the 2010 six-month period increased to $70.23 from $66.32 for the same period in 2009. The occupancy rate increased slightly to 82.4% for the six-month period in 2010, from 82.0% for the same period in 2009. Hotel operating expenses as a percentage of hotel revenues in the first six months of 2010 decreased to 27.5% from 31.8% for the same period in 2009. This decrease is primarily due to the higher revenues and lower hotel operating expense due primarily to lower payroll and benefits expense.
SG&A expense decreased 3.8% to $23.0 million in the first six months of 2010, compared to $23.9 million in the first six months of 2009, primarily as a result lower legal expense of approximately $540 thousand, bad debt expense of approximately $465 thousand, utilities expense of approximately $310 thousand and payroll and benefits expense of approximately $140 thousand all partially offset by higher marketing expense of approximately $400 thousand and higher miscellaneous expense of $155 thousand. As a percentage of net revenue, SG&A expenses decreased to 32.6% in the 2010 six-month period from 35.7% in the same period in 2009. This decrease is the result of the effect of the higher net revenue combined with the lower expenses.
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Monarch Casino & Resort Inc. has a market cap of $176.4 million; its shares were traded at around $10.94 with a P/E ratio of 20.6 and P/S ratio of 1.3. Monarch Casino & Resort Inc. had an annual average earning growth of 4.4% over the past 10 years.MCRI is in the portfolios of Jim Simons of Renaissance Technologies LLC.
Highlight of Business Operations:
For the three-month period ended June 30, 2010, our net income was $2.7 million, or $0.16 per diluted share, on net revenues of $36.2 million, an increase from net income of $1.8 million, or $0.11 per diluted share, on net revenues of $34.5 million for the three months ended June 30, 2009. Income from operations for the three months ended June 30, 2010 totaled $4.5 million, a 36.4% increase when compared to $3.3 million for the same period in 2009. Net revenues increased 4.9%, and net income increased 50.0%, when compared to last years second quarter.SG&A expense totaled $11.9 million in the second quarter of 2010, a 3.3% decrease from $12.3 million in the second quarter of 2009. The decrease was primarily due to lower legal expenses of approximately $340 thousand, payroll and benefits expense of approximately $180 thousand and utilities expense of approximately $140 thousand partially offset by higher marketing expense of approximately $210 thousand and miscellaneous expense of approximately $50 thousand. SG&A expense as a percentage of net revenues decreased to 33.0% for the second quarter of 2010 as compared to 35.7% in the second quarter of 2009. This decrease is the result of the higher net revenue combined with the lower expenses.
During the three month period ended June 30, 2010, we paid down the balance outstanding under our credit facility by $3.2 million, which decreased the outstanding balance of the credit facility from $41.0 million at March 31, 2010 to $37.8 million at June 30, 2010. Because of the lower average borrowing balance in the second quarter of 2010 as compared the second quarter of 2009, interest expense decreased during the second quarter of 2010 to $366 thousand from $571 thousand in the second quarter of 2009.
For the six months ended June 30, 2010, our net income was $5.1 million, or $0.32 per diluted share, on net revenues of $70.5 million, an increase from net income of $2.7 million, or $0.17 per diluted share, on net revenues of $67.0 million during the six months ended June 30, 2009. Income from operations for the 2010 six-month period totaled $8.7 million, compared to $5.2 million for the same period in 2009. Net revenues increased 5.2%, and net income increased 88.9% when compared to the six-month period ended June 30, 2009.
Hotel revenues for the first six months of 2010 increased slightly to $11.1 million from $10.0 million for the first six months of 2009. This increase was due to a slight increase in hotel occupancy combined with an increase in the average daily room rate (ADR) and revenue from a $10 per day resort fee, paid by our hotel guests, which we implemented on June 1, 2009. Hotel revenues for the first five months of 2009 include a $3 per occupied room energy surcharge. This surcharge was eliminated when we implemented the $10 per day resort fee on June 1, 2009. ADR during the 2010 six-month period increased to $70.23 from $66.32 for the same period in 2009. The occupancy rate increased slightly to 82.4% for the six-month period in 2010, from 82.0% for the same period in 2009. Hotel operating expenses as a percentage of hotel revenues in the first six months of 2010 decreased to 27.5% from 31.8% for the same period in 2009. This decrease is primarily due to the higher revenues and lower hotel operating expense due primarily to lower payroll and benefits expense.
SG&A expense decreased 3.8% to $23.0 million in the first six months of 2010, compared to $23.9 million in the first six months of 2009, primarily as a result lower legal expense of approximately $540 thousand, bad debt expense of approximately $465 thousand, utilities expense of approximately $310 thousand and payroll and benefits expense of approximately $140 thousand all partially offset by higher marketing expense of approximately $400 thousand and higher miscellaneous expense of $155 thousand. As a percentage of net revenue, SG&A expenses decreased to 32.6% in the 2010 six-month period from 35.7% in the same period in 2009. This decrease is the result of the effect of the higher net revenue combined with the lower expenses.
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