Monarch Casino Reports 2010 First Quarter Results

The Company reported net revenue of $34.4 million which is $1.8 million, or 5.5%, higher than the $32.6 million reported for the comparative quarter in 2009. The Company announced quarterly income from operations of $4.2 million, EBITDA(1) of $7.5 million and diluted EPS of $0.15 which represent increases of 118.0%, 47.1% and 150.0%, respectively, when compared to the prior year's first quarter. Revenue generated in the casino, food and beverage, hotel and other operating departments increased by 5.9%, 4.1%, 7.5% and 16.8%, respectively.

Casino operating expense increased approximately $376 thousand, or 4.2%, over the prior year's first quarter primarily due to the cost of increased complimentary food, beverages and other services provided to casino patrons ("Complimentaries"). As a percentage of casino revenue, casino operating expense decreased to 38.6% as compared to 39.3% in prior year's first quarter primarily due to the increase in casino revenue partially offset by higher Complimentaries.

Food and beverage operating expense as a percentage of revenue decreased to 43.7% for the first quarter as compared to 48.3% in the first quarter of the prior year primarily due to lower payroll and benefits expense combined with lower food commodity costs. Hotel operating expense as a percentage of revenue decreased to 27.7% from the 32.6% in prior year's first quarter due primarily to the increase in hotel revenue combined with a reduction in hotel operating expense of $140 thousand, or 8.9%.

The Company reported that selling, general and administrative expense decreased by approximately $557 thousand, or 4.8%, due primarily to reductions in bad debt, legal and utilities expense, partially offset by higher marketing expense.

During the quarter, the Company paid down the balance outstanding under its credit facility by $7.5 million which decreased the outstanding balance of the credit facility from $48.5 million at December 31, 2009 to $41.0 million at March 31, 2010. Decreased borrowing levels drove interest expense down from $550 thousand in prior year's first quarter to $458 thousand in the current quarter.

Monarch's CEO and Co-Chairman John Farahi commented on the Company's performance: "Especially given the head winds of the continuing difficult economic conditions, we are pleased that during the first quarter of 2010 we grew revenue in each of our operating departments, reduced operating expenses and grew EBITDA. I would like to commend our entire team for achieving these stellar results."

Monarch Casino & Resort, Inc., through its subsidiary, Golden Road Motor Inn, Inc., owns and operates the Atlantis Casino Resort Spa, a hotel/casino facility in Reno, Nevada which features approximately 61,000 square feet of casino space; approximately 1,000 guest rooms; eight food outlets; two espresso and pastry bars; an approximate 30,000 square foot health spa and salon with an enclosed year-round pool; two retail outlets offering clothing and traditional gift shop merchandise; an 8,000 square-foot family entertainment center; and approximately 52,000 square feet of banquet, convention and meeting room space. The casino features approximately 1,450 slot and video poker machines; approximately 38 table games, including blackjack, craps, roulette, and others; a sports book; a 24-hour live keno lounge and a poker room. The Company and its predecessors have operated a facility on the Atlantis site since 1972.

This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934 which are subject to change, including, but not limited to, comments relating to (i) future operating performance, (ii) economic and market conditions, and (iii) the liquidity requirements of the Company. Actual results and future events and conditions may differ materially from those described in any forward-looking statements. Additional information concerning potential factors that could affect the Company's financial results is included in the Company's Securities and Exchange Commission filings, which are available on the Company's web site at www.monarchcasino.com.