What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2025-10-28 compared with 2025-07-29 · 77 added, 64 removed, 368 unchanged (28% of the section changed)

5 unchanged sentences

Three months ended

Six months ended

Nine months ended

September 30,

Food and beverage

7 unchanged sentences

Other income (expense)

Interest expense, net

Interest income (expense), net

Income before income taxes

7 unchanged sentences

(In thousands, except shares)

June 30, 2025

September 30, 2025

December 31, 2024

13 unchanged sentences

Accrued expenses

Income taxes payable

Short-term lease liability

7 unchanged sentences

Common stock, $ .01 par value, 30,000,000 shares authorized;

19,402,163 shares issued and 18,233,777 outstanding at June 30, 2025;

19,529,846 shares issued and 18,250,291 outstanding at September 30, 2025;

19,364,531 shares issued and 18,436,540 outstanding at December 31, 2024

Additional paid-in capital

Treasury stock, 1,168,386 shares at June 30, 2025 and 927,991 shares at December 31, 2024

Treasury stock, 1,279,555 shares at September 30, 2025 and 927,991 shares at December 31, 2024

Retained earnings

16 unchanged sentences

Balance, June 30, 2025

Exercise of stock options, net

Stock-based compensation expense

Purchase of company common stock

Dividend payment

Balance, September 30, 2025

Balance, January 1, 2024

9 unchanged sentences

Balance, June 30, 2024

Exercise of stock options, net

Stock-based compensation expense

Purchase of company common stock

Dividend payment

Balance, September 30, 2024

The Notes to the Consolidated Financial Statements are an integral part of these statements.

3 unchanged sentences

(In thousands, Unaudited)

Six Months Ended June 30,

Nine Months Ended September 30,

Cash flows from operating activities:

4 unchanged sentences

Provision for bad debts

Loss (gain) on disposition of assets

Loss on disposition of assets

Non-cash operating lease expense

27 unchanged sentences

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

QUARTERLY PERIOD ENDED JUNE 30, 2025

QUARTERLY PERIOD ENDED SEPTEMBER 30, 2025

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

17 unchanged sentences

In the opinion of the management of the Company, all adjustments considered necessary for a fair presentation, consisting of normal recurring accruals, are reflected in the interim financial statements.

Operating results for the three and six months ended June 30, 2025 are not necessarily indicative of the results that may be expected for the year ending December 31, 2025.

Operating results for the three and nine months ended September 30, 2025 are not necessarily indicative of the results that may be expected for the year ending December 31, 2025.

The balance sheet at December 31, 2024, has been derived from the audited consolidated financial statements of the Company at that date, but does not include all of the information and footnotes required by U.S.

11 unchanged sentences

This breakout of expenses is used by the CODM to monitor and assess the financial performance by comparing actual results to prior years and plans (in thousands).

Six Months Ended June 30,

Nine Months Ended September 30,

Operating Expenses

27 unchanged sentences

Historically, the Company has not incurred any significant credit-related losses.

As of June 30, 2025, the Company has recorded a reserve of $ 0.2 million for gaming and non-gaming receivables.

As of September 30, 2025, the Company has recorded a reserve of $ 0.2 million for gaming and non-gaming receivables.

The Company believes it is not exposed to any significant credit risk on cash and accounts receivable.

4 unchanged sentences

Property and equipment, net consists of the following (in thousands):

June 30, 2025

September 30, 2025

December 31, 2024

19 unchanged sentences

If the undiscounted cash flows do not exceed the carrying value, the impairment is measured based on fair value compared to carrying value, with fair value typically based on a discounted cash flow model or market comparable, when available.

For the six-month periods ended June 30, 2025 and 2024, respectively, there were no impairment charges.

For the nine-month periods ended September 30, 2025 and 2024, respectively, there were no impairment charges.

The Company accounts for goodwill in accordance with ASC Topic 350, Intangibles-Goodwill and Other (“ASC Topic 350”).

2 unchanged sentences

Impairment testing for goodwill is performed at the reporting unit level, and each of the Company’s casino properties is considered to be a reporting unit.

As of June 30, 2025, we had goodwill totaling $ 25.1 million related to the purchase of Monarch Black Hawk, Inc.

As of September 30, 2025, we had goodwill totaling $ 25.1 million related to the purchase of Monarch Black Hawk, Inc.

ASC Topic 350 requires that goodwill be tested for impairment between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount.

34 unchanged sentences

These liabilities are generally expected to be recognized as revenue within one year of being purchased, earned, or deposited and are recorded within “Accrued expenses” on the consolidated balance sheets.

The following table summarizes the activity related to contract and contract-related liabilities as of June 30, 2025 and 2024 compared to December 31, 2024 and 2023, respectevly:

The following table summarizes the activity related to contract and contract-related liabilities as of September 30, 2025 and 2024 compared to December 31, 2024 and 2023, respectively:

September 30,

Increase (Decrease)

September 30,

Contractual Liability

5 unchanged sentences

Other operating items, net, in general consist of miscellaneous operating charges or proceeds.

For the three months ended June 30, 2025, Other operating items, net, was $ 0.9 million and consisted primarily of professional service fees relating to our construction litigation.

For the three months ended June 30, 2024, Other operating items, net, was $ 0.2 million and consisted of $ 0.1 million professional service fees relating to our construction litigation and $ 0.1 million loss on disposal of assets..

For the six months ended June 30, 2025, Other operating items, net, was $ 1.4 million and consisted primarily of professional service fees relating to our construction litigation.

For the six months ended June 30, 2024, Other operating items, net, was $ 0.7 million and consisted of $ 0.6 million professional service fees relating to our construction litigation and $ 0.1 million loss on disposal of assets.

For the three months ended September 30, 2025, Other operating items, net, was $ 0.5 million and consisted primarily of professional service fees relating to our construction litigation.

For the three months ended September 30, 2024, Other operating items, net, was $ 0.2 million and consisted primarily of loss on disposal of assets.

For the nine months ended September 30, 2025, Other operating items, net, was $ 1.9 million and consisted primarily of professional service fees relating to our construction litigation.

For the nine months ended September 30, 2024, Other operating items, net, was $ 0.9 million and consisted of $ 0.6 million professional service fees relating to our construction litigation and $ 0.3 million loss on disposal of assets.

Impact of Recently Adopted Accounting Standards:

2 unchanged sentences

The ASU is effective for fiscal years beginning after December 15, 2024, may be adopted on a prospective or retrospective basis, and early adoption is permitted.

The Company is currently evaluating the effect that the new guidance will have on our related disclosures.

The adoption of this standard is not expected to have a material impact on our Consolidated Financial Statements.

In November 2024, the FASB issued ASU No.

4 unchanged sentences

The Company is currently evaluating the impact that the adoption of this ASU will have on its consolidated financial statements.

In September 2025, the Financial Accounting Standards Board issued updated guidance on accounting for internal-use software, effective for annual reporting periods beginning after December 15, 2027, with early adoption permitted.

The amendments modernize guidance to consider different methods of software development, updating the requirements for capitalization of software costs.

The Company is currently evaluating the impact that the adoption of this ASU will have on its consolidated financial statements.

A variety of proposed or otherwise potential accounting standards are currently under review and study by standard-setting organizations and certain regulatory agencies.

4 unchanged sentences

As permitted by ASC 842, the Company elected not to separate non-lease components from their related lease components.

As of June 30, 2025, the Company’s right of use assets consisted of the Parking Lot Lease, the Driveway Lease (each as defined and discussed in NOTE 5.

As of September 30, 2025, the Company’s right of use assets consisted of the Parking Lot Lease, the Driveway Lease (each as defined and discussed in NOTE 5.

RELATED PARTY TRANSACTIONS) , as well as certain billboard leases.

The weighted-average incremental borrowing rate of the leases presented in the lease liability as of June 30, 2025, was 4.35 %.

There were no new leases entered into in the second quarter of 2025.

The weighted-average remaining lease term of the leases presented in the lease liability as of June 30, 2025, was 16.01 years.

Cash paid related to the operating leases presented in the lease liability for each of the six months ended June 30, 2025 and 2024, was $ 0.8 million.

The weighted-average incremental borrowing rate of the leases presented in the lease liability as of September 30, 2025, was 4.35 %.

There were no new leases entered into in the third quarter of 2025.

The weighted-average remaining lease term of the leases presented in the lease liability as of September 30, 2025, was 15.86 years.

Cash paid related to the operating leases presented in the lease liability for each of the nine months ended September 30, 2025 and 2024, was $ 0.8 million and $ 1.1 million, respectively.

STOCK-BASED COMPENSATION

3 unchanged sentences

Three months ended

Six months ended

Nine months ended

September 30,

Food and beverage

6 unchanged sentences

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,

Three months ended September 30,

Effect of dilutive stock options

Six months ended June 30,

Nine months ended September 30,

Effect of dilutive stock options

Excluded from the computation of diluted earnings per share are options where the exercise prices are greater than the weighted assumed proceeds per share as their effects would be anti-dilutive in the computation of diluted earnings per share.

For the three months ended June 30, 2025 and 2024, options for approximately 879 thousand and 955 thousand shares, respectively, were excluded from the computation.

For the six months ended June 30, 2025 and 2024, options for approximately 868 thousand and 912 thousand shares, respectively, were excluded from the computation.

For the three months ended September 30, 2025 and 2024, options for approximately 359 thousand and 905 thousand shares, respectively, were excluded from the computation.

For the nine months ended September 30, 2025 and 2024, options for approximately 637 thousand and 910 thousand shares, respectively, were excluded from the computation.

RELATED PARTY TRANSACTIONS

12 unchanged sentences

If the Company elects not to exercise its renewal option, the Company will be obligated to pay BLI $ 1.6 million.

For each of the three-month periods ended June 30, 2025 and 2024, the Company paid $ 187 thousand in rent, plus $ 1 thousand, in operating expenses relating to this lease.

For each of the six-month periods ended June 30, 2025 and 2024, the Company paid $ 374 thousand in rent, plus $ 17 thousand and $ 9 thousand, respectively, in operating expenses relating to this lease.

The right of use asset and lease liability balances as of June 30, 2025, recognized in the Consolidated Balance Sheet, was $ 9.3 million.

For each of the three-month periods ended September 30, 2025 and 2024, the Company paid $ 187 thousand in rent, plus $ 9 thousand and $ 17 thousand, respectively, in operating expenses relating to this lease.

For each of the nine-month periods ended September 30, 2025 and 2024, the Company paid $ 561 thousand in rent, plus $ 26 thousand in operating expenses relating to this lease.

The right of use asset and lease liability balances as of September 30, 2025, recognized in the Consolidated Balance Sheet, was $ 9.3 million.

In addition, the Atlantis shares a driveway with the Shopping Center and leases approximately 37,400 square feet from BLI (the “Driveway Lease”) for an initial lease term of 15 years , which commenced on September 30, 2004, at an original annual rent of $ 300 thousand plus common area expenses.

5 unchanged sentences

At the end of the renewal terms, the Company has the option to purchase the leased driveway section of the Shopping Center.

For the three-month periods ended June 30, 2025 and 2024, the Company paid $ 124 thousand and $ 101 thousand in rent, respectively, plus $ 10 thousand and $ 11 thousand, respectively, in operating expenses relating to this lease.

For the six-month periods ended June 30, 2025 and 2024, the Company paid $ 248 thousand and $ 202 thousand, respectively, in rent plus $ 26 thousand and $ 24 thousand, respectively, in operating expenses relating to this lease.

The right of use asset and lease liability balances as of June 30, 2025, recognized in the Consolidated Balance Sheet , was $ 2.9 million.

The Company occasionally leases billboard advertising, storage space and parking lot space from affiliates controlled by the Farahi Family Stockholders, and paid $ 123 thousand and $ 125 thousand, respectively, for the three-month periods ended June 30, 2025 and 2024, and $ 270 thousand and $ 257 thousand, respectively, for the six-month periods ended June 30, 2025 and 2024, for such leases.

For the three-month periods ended September 30, 2025 and 2024, the Company paid $ 124 thousand and $ 101 thousand in rent, respectively, plus $ 12 thousand and $ 16 thousand, respectively, in operating expenses relating to this lease.

For the nine-month periods ended September 30, 2025 and 2024, the Company paid $ 372 thousand and $ 303 thousand, respectively, in rent plus $ 38 thousand and $ 40 thousand, respectively, in operating expenses relating to this lease.

The right of use asset and lease liability balances as of September 30, 2025, recognized in the Consolidated Balance Sheet , was $ 2.8 million.

The Company occasionally leases billboard advertising, storage space and parking lot space from affiliates controlled by the Farahi Family Stockholders, and paid $ 123 thousand and $ 118 thousand, respectively, for the three-month periods ended September 30, 2025 and 2024, $ 393 thousand and $ 375 thousand, respectively, for the nine-month periods ended September 30, 2025 and 2024, for such leases.

LONG-TERM DEBT

4 unchanged sentences

The Commitment Fee Percentage (as defined in the Amended Credit Facility) was revised to be 0.25 % per annum .

In addition to other customary covenants for a facility of this nature, as of June 30, 2025, the Company is required to maintain a Total Leverage Ratio (as defined in the Amended Credit Facility) of no more than 1.5 :1.0 and Fixed Charge Coverage Ratio (as defined in the Amended Credit Facility) of at least 1.1 :1.0.

As of June 30, 2025, the Company’s Total Leverage Ratio and Fixed Charge Coverage Ratio were 0.0 :1.0 and 77.0 :1.0, respectively.

As of June 30, 2025, the Company had no outstanding principal balance under the Amended Credit Facility, a $ 0.6 million standby letter of credit and $ 99.4 million remained available for borrowing.

For the six months ended June 30, 2025 and 2024, the Company’s effective tax rate was 23.1 % and 22.9 %, respectively.

In addition to other customary covenants for a facility of this nature, as of September 30, 2025, the Company is required to maintain a Total Leverage Ratio (as defined in the Amended Credit Facility) of no more than 1.5 :1.0 and Fixed Charge Coverage Ratio (as defined in the Amended Credit Facility) of at least 1.1 :1.0.

As of September 30, 2025, the Company’s Total Leverage Ratio and Fixed Charge Coverage Ratio were 0.0 :1.0 and 112.3 :1.0, respectively.

On February 24, 2025, Wells Fargo Bank agreed to waive its right to declaring an event of default under the Amended Credit Facility arising out of the February 14, 2025 judgment on the litigation between Monarch and PCL, so long as we strictly comply with each and every other provision of the Amended Credit Facility.

We believe that we are in full compliance.

As of September 30, 2025, the Company had no outstanding principal balance under the Amended Credit Facility, a $ 0.6 million standby letter of credit and $ 99.4 million remained available for borrowing.

For the nine months ended September 30, 2025 and 2024, the Company’s effective tax rate was 21.3 % and 22.3 %, respectively.

Deferred tax assets were evaluated by considering historical levels of income, estimates of future taxable income and the impact of tax planning strategies.

No uncertain tax positions were recorded as of June 30, 2025 and 2024.

No uncertain tax positions were recorded as of September 30, 2025 and 2024.

On July 4, 2025, the “One Big Beautiful Bill Act” (the “Act”) was enacted into law, making permanent certain key elements of the Tax Cuts and Jobs Act that are applicable to the Company, including 100% bonus depreciation.

5 unchanged sentences

The actual timing, number and value of shares repurchased under the repurchase program will be determined by management at its discretion and will depend on a number of factors, including the market price of the Company’s stock, general market economic conditions and applicable legal requirements.

In the second quarter of 2025, under its existing Repurchase Plan, the Company purchased 240,395 shares of its common stock on the open market for an aggregate purchase cost of $ 19.8 million.

As of June 30, 2025, the Company has an authorization to purchase up to 1,709,645 shares under the Repurchase Plan.

In the third quarter of 2025, under its existing Repurchase Plan, the Company purchased 111,169 shares of its common stock on the open market for an aggregate purchase cost of $ 11.3 million.

As of September 30, 2025, the Company has an authorization to purchase up to 1,598,476 shares under the Repurchase Plan.

LEGAL MATTERS

4 unchanged sentences

2019CV33368 (the “First Denver Lawsuit”).

The complaint alleges, among other things, that the defendants breached the construction contract with PCL and certain implied warranties.

On December 5, 2019, the Company filed its answer and counterclaim, which alleges, among other items, that PCL breached the construction contract, duties of good faith and fair dealing, and implied and express warranties, made fraudulent or negligent misrepresentations on which the Company and its Colorado subsidiaries relied, and included claims for monetary damages as well as equitable and declaratory relief.

3 unchanged sentences

2021CV30006 (the “Gilpin Lawsuit”).

The complaint essentially mirrors the claims and allegations made by PCL in the First Denver Lawsuit, as described above.

The complaint essentially mirrors the claims and allegations made by PCL in the First Denver Lawsuit.

The Gilpin Lawsuit includes an additional claim, however, for foreclosure of PCL’s purported mechanics’ lien against the property on which the Monarch Casino Resort Spa Black Hawk is situated (the “Property”).

PCL also joined additional parties who may claim a purported lien against the Property, as defendants.

Effective May 10, 2021, PCL filed its second amended complaint, joining more such parties as defendants.

PCL also joined additional parties who may claim a

purported lien against the Property, as defendants.

Many of the Company’s co-defendants have filed cross claims against Monarch for foreclosure of mechanics’ liens and related claims, including unjust enrichment.

Monarch filed its answer and counterclaims to PCL’s second amended complaint in the Gilpin Lawsuit on July 15, 2021, but a trial of the matter has not been set.

Monarch has also filed answers to all cross claims due to date, denying the claimants’ rights to relief.

Monarch anticipates filing further answers to additional cross claims, also denying the claimants’ rights to relief.

The case remains stayed, however, pending the outcome of the First Denver Lawsuit, Case No.

7 unchanged sentences

The complaint alleges, among other things, that PCL breached the construction contract, duties of good faith and fair dealing, and implied and express warranties based on defective and/or nonconforming construction work at the project, and includes claims for monetary damages as well as equitable and declaratory relief.

On April 18, 2023, at the parties’ joint request, the Court ordered the Second Denver Lawsuit stayed for ninety days from the date of the stay order until July 17, 2023.

Following the expiration of the stay and the filing of a motion to dismiss by PCL, Monarch amended its complaint in the Second Denver Lawsuit.

On January 22, 2025, the Court granted Monarch’s motion to file a second amended complaint and set the trial of the matter for a 7-day trial beginning on August 18, 2025.

On September 5, 2023, trial commenced in the First Denver Lawsuit in the District Court for the City and County of Denver, Colorado.

The bench trial concluded on November 22, 2023, after 28 total court days.

PCL and the Company each submitted proposed Findings of Fact, Conclusions of Law and Order for the Court’s consideration on February 7, 2024.

On February 14, 2025, the Court issued its Findings of Fact, Conclusions of Law and Order of Judgment in the litigation between the Company and PCL.

On February 14, 2025, the Court issued its Findings of Fact, Conclusions of Law and Order of Judgment in the First Denver Lawsuit.

The Court awarded damages in favor of PCL of $ 74,772,551 for its claims of breach of contract, breach of implied warranty, and breach of the duty of good faith and fair dealing and $ 144,894 to the Company for its negligence and gross negligence counterclaims against PCL.

12 unchanged sentences

Monarch has posted a bond to stay enforcement of the Judgment pending such appeal.

The Company does not expect any further proceedings in the lower court.

As of June 30, 2025, the Company has $ 76.5 million in liability related to the PCL litigation, which are presented in balance sheet as following:

$ 48.9 million in Construction accounts payable and $ 27.6 million in Accounts payable lines.

The Company recognized $ 1.4 million and 0.6 million in construction litigation expense relating to these lawsuits for the six months ended June 30, 2025 and 2024, respectively, which is included in Other operating items, net on the Consolidated Statements of Income.

As of September 30, 2025, the Company has $ 76.5 million in liability related to the PCL litigation, which are presented in balance sheet as following:

$ 48.9 million in Construction accounts payable and $ 27.6 million in Accounts payable.

The Company recognized $ 1.9 million and 0.6 million in construction litigation expense relating to these lawsuits for the nine months ended September 30, 2025 and 2024, respectively, which is included in Other operating items, net on the Consolidated Statements of Income.

From time to time, we may be subject to other legal proceedings and claims in the ordinary course of business.

3 unchanged sentences

These dividends are paid quarterly on the 15th day of the third month of the applicable calendar quarter (or, if such date is not a trading day, then the first trading day immediately thereafter such date) to those stockholders of record on the 1st day of the third month of the applicable calendar quarter (or, if such date is not a trading day, then the first trading day immediately thereafter such date).

On June 15, 2025 , the Company paid a cash dividend of $ 0.30 per share of its outstanding common stock, to stockholders of record on June 1, 2025 .

For the six months ended June 30, 2025, the Company paid total of $ 0.60 per share cash dividend.

On September 15, 2025 , the Company paid a cash dividend of $ 0.30 per share of its outstanding common stock, to stockholders of record on September 1, 2025 .

For the nine months ended September 30, 2025, the Company paid total of $ 0.90 per share cash dividend.

The cash dividend was part of the previously announced annual cash dividend of $ 1.20 per share payable in quarterly payments.

On July 16, 2025 , the Company announced a cash dividend of $ 0.30 per share of its outstanding common stock, payable on September 15, 2025 , to stockholders of record on September 1, 2025 .

On October 21, 2025 , the Company announced a cash dividend of $ 0.30 per share of its outstanding common stock, payable on December 15, 2025 , to stockholders of record on December 1, 2025 .

This cash dividend is part of the previously announced annual cash dividend of $ 1.20 per share payable in quarterly payments.

2 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements