Monarch Casino Reports Adjustments to 2024 Fourth Quarter and Full Year Financial Results

Monarch Casino & Resort Inc. reported on an SEC Form 8-K filed on February 18, 2025, that the District Court, City and County of Denver, Colorado (Court), issued its decision in the litigation between Monarch and PCL Construction Services Inc. (PCL). The Court awarded damages in favor of PCL of $74,772,551 and awarded $144,894 to Monarch for its 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).

Based upon its initial review of the Court’s Judgment, Monarch anticipates filing an appeal to the Colorado Court of Appeals.

Monarch further reported that because of the Judgment and because Monarch had announced its fourth quarter and year end results for the periods ended December 31, 2024 on February 11, 2025, before the Judgment was issued, Monarch would update and adjust its fourth quarter and year end results.

Monarch’s balance sheet as of September 30, 2024, included a liability of $47,008,285 due to PCL, which was adjusted as of December 31, 2024 to reflect the Judgment amount.

As a result, an adjustment of $27,619,372 was made to Accounts Payable in the December 31, 2024 Balance Sheet. In accordance with ASC 855-10-20 subsequent events guidance, Monarch reflected the Judgment as a Type I subsequent event in the Company’s Annual Report on SEC Form 10-K, which is being filed with the SEC (the “2024 Form 10-K”). The Company recorded a corresponding expense item, Loss on Litigation, in the amount of $27,619,372.

These adjustments impact the previously reported results as follows:

Net income for the three month and twelve months ended December 31, 2024 were $4211 thousand and $72,769 thousand, respectively, compared to the previously reported $25,495 thousand and $94,053 thousand, respectively.

Basic earnings per share for such periods are $0.23 and $3.91, respectively, compared to the previously reported $1.39 and $5.05, respectively.

Diluted earnings per share for such periods are $0.22 and $3.84, respectively, compared to the previously reported $1.36 and $4.96, respectively.

Adjusted EBITDA (a non-GAAP measure) was not impacted.

The 2024 Form 10-K provides detailed reporting on the above.