Monarch Casino & Resort Inc. leapt to a strong start in 2022’s first quarter, reporting triple-digit percentage growth in net income and double-digit growth in revenue over last year, the company reported Wednesday.
The Reno-based company, which operates Reno’s Atlantis resort as well as the Monarch Casino Resort Spa Black Hawk in Black Hawk, Colorado, recorded first-quarter records with net income of $18.1 million, 92 cents a share, on revenue of $108.2 million.
In the first quarter a year ago, the company posted net income of $8.2 million, 42 cents a share, on revenue of $75 million. Company officials said first-quarter 2021 results were affected by COVID-19 pandemic fears.
The 2022 net income and revenue figures are 122.2 percent and 44.5 percent more, respectively, from the previous year.
Monarch’s top executive attributed the performance to grabbing greater market share in Reno and in Colorado and Colorado’s elimination of betting limits last May.
“Fiscal year 2022 is off to a strong start as we benefited from the full scope of operations at our newly expanded Monarch Black Hawk and the continued growth of market share at both properties,” Monarch Co-Chair and CEO John Farahi said in a release.
Monarch doesn’t schedule earnings calls with investors.
“Our first-quarter results also benefited from continued healthy overall macroeconomic trends,” Farahi said. “The labor market pressure and rising inflation could impact further near-term margins. Our teams continue to manage expenses effectively as we re-invest in our properties and grow our business.”
Farahi said results at the Atlantis in Reno, which has more than 800 rooms, were affected by construction work on the redesign and upgrade of 20 percent of the room inventory at the property. The project remains on schedule and is currently expected to be completed by the end of the second quarter.
“As we look to the balance of 2022, we intend to build on our strong operating performance in the first quarter, which traditionally is the slowest quarter of the year for us and for our markets,” Farahi said. “We continue to evaluate potential acquisitions where we can fully leverage our development and operating expertise to drive long-term value for our stockholders. Our future remains bright and we look forward to what promises to be an exciting 2022.”
Monarch shares, traded on the Nasdaq exchange, closed up $2.27, 2.5 percent, to $93.08 a share on slightly above-average volume on Wednesday.