What changed in this filing

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Item 1. Financial Statements

2025-07-29 compared with 2025-05-02 · 80 added, 53 removed, 352 unchanged (27% of the section changed)

5 unchanged sentences

Three months ended

Six months ended

Food and beverage

17 unchanged sentences

(In thousands, except shares)

March 31, 2025

June 30, 2025

December 31, 2024

7 unchanged sentences

Intangible assets, net

Other long-term assets

Other assets, net

LIABILITIES AND STOCKHOLDERS’ EQUITY

3 unchanged sentences

Accrued expenses

Income taxes payable

Short-term lease liability

7 unchanged sentences

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

19,394,397 shares issued and 18,466,406 outstanding at March 31, 2025;

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

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

Additional paid-in capital

Treasury stock, 927,991 shares at March 31, 2025 and December 31, 2024

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

Retained earnings

11 unchanged sentences

Balance, March 31, 2025

Exercise of stock options, net

Stock-based compensation expense

Purchase of company common stock

Dividend payment

Balance, June 30, 2025

Balance, January 1, 2024

4 unchanged sentences

Balance, March 31, 2024

Exercise of stock options, net

Stock-based compensation expense

Purchase of company common stock

Dividend payment

Balance, June 30, 2024

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

3 unchanged sentences

(In thousands, Unaudited)

Three Months Ended March 31,

Six Months Ended June 30,

Cash flows from operating activities:

30 unchanged sentences

Cash paid for interest

Cash paid for income taxes

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

1 unchanged sentence

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

QUARTERLY PERIOD ENDED MARCH 31, 2025

QUARTERLY PERIOD ENDED JUNE 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 months ended March 31, 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 six months ended June 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).

Three Months Ended March 31,

Six Months Ended June 30,

Operating Expenses

9 unchanged sentences

[a] Tax and license includes gaming taxes and licenses, commerce taxes, use taxes and property taxes.

[b] Operating expenses includes expenses for casino, food and beverage, hotel, other, selling general and administrative expenses excluding payroll and payroll related, cost of sales, tax and license.

[c] Other operating items, net includes construction litigation expenses, insurance claims proceeds, net, and (gain) loss on disposition of assets.

[b] Operating expenses includes expenses for casino, food and beverage, hotel, other, selling general and administrative expenses labor expense, cost of sales, tax and license expense.

[c] Other operating items, net includes construction litigation expenses, lobbying expenses, and (gain) loss on disposition of assets.

Concentrations of Credit Risk and Credit Losses:

14 unchanged sentences

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

As of March 31, 2025, the Company has recorded a reserve of $ 0.2 million for gaming and non-gaming receivables.

As of June 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):

March 31, 2025

June 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 three-month periods ended March 31, 2025 and 2024, respectively, there were no impairment charges.

For the six-month periods ended June 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 March 31, 2025, we had goodwill totaling $ 25.1 million related to the purchase of Monarch Black Hawk, Inc.

As of June 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 for each of the three months ending March 31, 2025 and 2024.:

Three Months Ended March 31, 2025

Three Months Ended March 31, 2024

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:

Contractual Liability

5 unchanged sentences

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

For the three months ended March 31, 2025, Other operating items, net, was $ 0.5 million and primarily represents professional service fees relating to our construction litigation.

For the three months ended March 31, 2024, Other operating items, net, was $ 0.5 million and primarily represented professional service fees relating to our construction litigation.

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.

Impact of Recently Adopted Accounting Standards:

15 unchanged sentences

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

As of March 31, 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 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.

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 March 31, 2025, was 4.34 %.

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

The weighted-average remaining lease term of the leases presented in the lease liability as of March 31, 2025, was 16.38 years.

Cash paid related to the operating leases presented in the lease liability for each of the three months ended March 31, 2025 and 2024, was $ 0.4 million.

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.

STOCK-BASED COMPENSATION

3 unchanged sentences

Three months ended

Six months ended

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 March 31,

Three months ended June 30,

Effect of dilutive stock options

Six months ended June 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 March 31, 2025 and 2024, options for approximately 837 thousand and 867 thousand shares, respectively, were excluded from the computation.

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.

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 March 31, 2025 and 2024, the Company paid $ 187 thousand in rent, plus $ 17 thousand and $ 8 thousand, respectively, in operating expenses relating to this lease.

The right of use asset and lease liability balances as of March 31, 2025, recognized in the Consolidated Balance Sheet, was $ 9.4 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.

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 each of the three-month periods ended March 31, 2025 and 2024, the Company paid $ 124 thousand and $101 thousand in rent, respectively, plus $ 16 thousand and $ 13 thousand, respectively, in operating expenses relating to this lease.

The right of use asset and lease liability balances as of March 31, 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 $ 146 thousand and $ 132 thousand, respectively, for the three-month periods ended March 31, 2025 and 2024, for such leases.

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.

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 March 31, 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 March 31, 2025, the Company’s Total Leverage Ratio and Fixed Charge Coverage Ratio were 0.0 :1.0 and 49.2 :1.0, respectively.

The interest rate under the Amended Credit Facility is either SOFR (the Secured Overnight Financing Rate) plus a margin of 1.25 % , or a base rate (as defined in the Amended Credit Facility) plus a margin of 0.25 % .

For the three months ended March 31, 2025 and 2024, the Company’s effective tax rate was 22.5 % and 23.3 %, respectively.

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.

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 March 31, 2025 and 2024.

No uncertain tax positions were recorded as of June 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.

The Company is in the process of evaluating the impact of the Act to the Consolidated Financial Statements.

STOCK REPURCHASE PLAN

3 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 first quarter of 2025, the Company did not purchase any shares of its common stock on the open market.

As of March 31, 2025, we have an authorization to purchase up to 1,950,040 shares under the Repurchase Plan.

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.

LEGAL MATTERS

1 unchanged sentence

(“PCL”) filed a complaint in District Court, City and County of Denver, Colorado, against the Company and its Colorado subsidiaries, in connection with the Company’s now completed expansion of the Monarch Casino Resort Spa Black Hawk (the “Project”).

The case is captioned

PCL Construction Services, Inc.

The case is captioned PCL Construction Services, Inc.

Monarch Growth Inc., et al.

29 unchanged sentences

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 decision 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 litigation between the Company and PCL.

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.

The Court entered a single judgment in the amount of the net difference between the cross-judgment and awarded PCL a principal judgment amount of $ 74,627,657 (the “Judgment”).

On February 28, 2025, PCL filed with the court a motion to supplement the Judgment with prejudgment interest.

Monarch plans to dispute the computation and amount of interest sought by PCL and has filed an opposition to the motion.

PCL also filed a bill of costs and a motion for attorneys’ fees.

On February 28, 2025, PCL filed with the court a Motion to Amend the Judgment to Add Prejudgment Interest, which the Court denied on May 23, 2025.

On March 13, 2025, PCL also filed a bill of costs and a motion for attorneys’ fees.

Monarch has filed an opposition, challenging PCL’s entitlement to such fees and costs, as well as the computation and amount of the fees and costs PCL seeks.

Monarch anticipates appealing the Judgment and has posted a bond to stay enforcement of the Judgment pending any such appeal.

The Company recognized $ 0.4 million and 0.5 million in construction litigation expense relating to these lawsuits for the three months ended March 31, 2025 and 2024, respectively, which is included in Other operating items, net on the Consolidated Statements of Income.

The Court has yet to rule on PCL’s Bill of Costs and Motion for Attorneys’ Fees.

On March 21, 2025, Monarch filed a Motion for a New Trial pursuant to C.R.C.P.

59(a)(1), which Judge Luxen denied on May 21, 2025.

On March 21, 20025, Monarch also filed a Motion to Amend the Judgment under C.R.C.P.

59(a)(4) to (a) to include additional $ 161,660 setoff for Monarch’s sanctions award, and (b) set a 6 % per annum post-judgment interest rate on the revised $ 54,660,298 awarded to PCL and a 0 % post-judgment interest rate on the $ 19,835,540 awarded to subcontractors as pass-through claims, which Judge Luxen partially granted and partially denied on May 21, 2025.

Specifically, in his May 21, 2025 Order, Judge Luxen (a) revised the total amount of damages due to PCL to $ 74,465,839 to correct certain mathematical errors in the Order and to offset PCL’s damages award by an additional $ 161,660 to account for the award granted in the Court’s November 28, 2023 order entering sanctions against PCL for its discovery violations, (b) set a 6 % per annum post-judgment interest rate on the on the damages awarded to PCL, and (c) declined to amend its judgment to set a 0 % post-judgment interest on the subcontractor pass-through claims.

On May 30, 2025, Monarch filed a Notice of Appeal with the Colorado Court of Appeals of the District Court’s February 14, 2025 Judgment and the District Court’s post-trial orders.

On June 13, 2025, PCL filed a Notice of Cross Appeal of the District Court’s denial of PCL’s Motion for Prejudgment Interest.

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.

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

1 unchanged sentence

however, the outcome of these actions is inherently difficult to predict.

On February 7, 2023 , the Company announced that the Company’s Board of Directors declared a one-time cash dividend (the “One-time Dividend”) of $ 5.00 per share of its outstanding common stock, par value $ 0.01 per share (“Common Stock”), paid to the stockholders of record of the Company on March 1, 2023 (the “Record Date”), payable on March 15, 2023 (the “Payment Date”).

In addition to the One-time Dividend, the Board of Directors approved the initiation of an Annual Dividend policy for the payment of an annual dividend in the amount of $ 1.20 per outstanding share of Common Stock, commencing in the second quarter of 2023.

These dividends will be 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 March 15, 2025 , the Company paid a cash dividend of $ 0.30 per share of its outstanding common stock, to stockholders of record on March 1, 2025 .

For the three months ended March 31, 2025, the Company paid total of $ 0.30 per share cash dividend.

On February 7, 2023 , the Company announced that the Company’s Board of Directors approved the initiation of an Annual Dividend policy for the payment of an annual dividend in the amount of $ 1.20 per outstanding share of Common Stock, commencing in the second quarter of 2023.

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.

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

On April 22, 2025 , the Company announced a cash dividend of $ 0.30 per share of its outstanding common stock, payable on June 15, 2025 , to stockholders of record on June 1, 2025 .

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 .

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