{"id":260016,"date":"2023-02-15T14:12:38","date_gmt":"2023-02-15T20:12:38","guid":{"rendered":"https:\/\/www.casino.org\/news\/?p=260016"},"modified":"2023-02-15T16:45:15","modified_gmt":"2023-02-15T22:45:15","slug":"monarch-casino-willing-to-participate-in-industry-ma","status":"publish","type":"post","link":"https:\/\/www.casino.org\/news\/monarch-casino-willing-to-participate-in-industry-ma\/","title":{"rendered":"Monarch Casino Open to Mergers and Acquisitions"},"content":{"rendered":"

Monarch Casino & Resort (NASDAQ: MCRI) delivered fourth-quarter results late Wednesday. One of the more interesting tidbits to emerge could be the company signaling a willingness to consider mergers and acquisitions.<\/p>\n

\"Monarch
Monarch Casino & Resort’s Atlantis in Reno, Nev., seen above. The operator is open to mergers and acquisitions. (Image: YouTube)<\/figcaption><\/figure>\n

Currently, the Reno-based regional casino operator owns just two gaming venues — Atlantis in its home city, and a namesake property in Black Hawk, Colo. For how long Monarch\u2019s roster remains that way remains to be seen. But CEO John Farahi says the company has the resources to consider consolidation opportunities.<\/p>\n

Our strong balance sheet and free cash flow allows us to continue to invest in our existing operations, while we pursue potential M&A opportunities,\u201d<\/strong> he said in a statement.<\/p><\/blockquote>\n

Monarch has $30 million in cash in the bank, and last week flexed its cash-flow generation muscles by announcing a one-time cash dividend<\/a> of $5 per share and a new quarterly payout of 30 cents.<\/p>\n

Monarch Could Be Aggressive in M&A Pursuit<\/h2>\n

In the statement, Farahi didn\u2019t get into specifics regarding Monarch\u2019s consolidation strategy. But it\u2019s clear the operator is taking a proactive approach on that front.<\/p>\n

\u201cWe are actively evaluating potential acquisitions, and we are prepared to move aggressively for the right opportunity,\u201d added the chief executive officer.<\/p>\n

\n

With its Colorado property ramping up and enhancements at Atlantis in Reno expected to pay dividends, Monarch is in a position to continue bolstering its balance sheet<\/a>. That would pave the way for acquiring other casinos without weighing on the buyer\u2019s debt reduction plans.<\/p>\n<\/div>\n

\u201cWith the best balance sheet in the space and free cash flow (FCF) ramping to $100m+ in 2023E (Macquarie estimate), or a 7% FCF yield, we would expect MCRI leadership to maintain an opportunistic view on growth through M&A. We estimate MCRI could acquire $100m of earnings before interest, taxes, depreciation, and amortization (EBITDA) at current accretive valuation levels and still maintain sub 4x leverage,\u201d wrote Macquarie analyst Chad Beynon in a note to clients.<\/p>\n

Additionally, Monarch fully owns the real estate on which its two casino hotels reside, indicating that it could raise cash for an acquisition by selling one of those properties. However, the operator didn\u2019t mention that is a strategy under consideration.<\/p>\n

Weather Could Be Factor in Monarch M&A Plans<\/h2>\n

As Stifel analyst Jeffrey Stantial noted in a report, Monarch management mentioned bad weather as a slight hindrance to performance at Atlantis<\/a> in the fourth quarter. That\u2019s also an issue that could rear its head in Colorado.<\/p>\n

To that end, it\u2019s possible Monarch could evaluate acquisitions in regions of the US where snow isn\u2019t a factor. But the operator didn\u2019t speak to geographic preferences.<\/strong><\/p>\n

Stifel\u2019s Stantial added that while Monarch is more likely a buyer, it could potentially be a seller. If the company doesn\u2019t find attractive deals, it could deliver more special dividends to shareholders.<\/p>\n","protected":false},"excerpt":{"rendered":"

Monarch Casino & Resort (NASDAQ: MCRI) delivered fourth-quarter results late Wednesday. One of the more interesting tidbits to emerge could be the company signaling a willingness to consider mergers and acquisitions. Currently, the Reno-based regional casino operator owns just two gaming venues — Atlantis in its home city, and a namesake property in Black Hawk, […]<\/p>\n","protected":false},"author":46,"featured_media":260017,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[62,10,32093],"tags":[81897,81903,81966],"acf":[],"yoast_head":"\nMonarch Casino Willing To Participate In Industry M&A<\/title>\n<meta name=\"description\" content=\"Monarch Casino says it's actively considering mergers and acquisitions.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.casino.org\/news\/monarch-casino-willing-to-participate-in-industry-ma\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Monarch Casino Willing To Participate In Industry M&A\" \/>\n<meta property=\"og:description\" content=\"Monarch Casino says it's actively considering mergers and acquisitions.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.casino.org\/news\/monarch-casino-willing-to-participate-in-industry-ma\/\" \/>\n<meta property=\"og:site_name\" content=\"Casino.org\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/Casino.OrgNews\" \/>\n<meta property=\"article:published_time\" content=\"2023-02-15T20:12:38+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-02-15T22:45:15+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/02\/atlantis-1.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1280\" \/>\n\t<meta property=\"og:image:height\" content=\"720\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Todd Shriber\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@etfgodfather\" \/>\n<meta name=\"twitter:site\" content=\"@Casino_Org\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Todd Shriber\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.casino.org\/news\/monarch-casino-willing-to-participate-in-industry-ma\/\",\"url\":\"https:\/\/www.casino.org\/news\/monarch-casino-willing-to-participate-in-industry-ma\/\",\"name\":\"Monarch Casino Willing To Participate In Industry M&A\",\"isPartOf\":{\"@id\":\"https:\/\/www.casino.org\/news\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.casino.org\/news\/monarch-casino-willing-to-participate-in-industry-ma\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.casino.org\/news\/monarch-casino-willing-to-participate-in-industry-ma\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/02\/atlantis-1.jpg\",\"datePublished\":\"2023-02-15T20:12:38+00:00\",\"dateModified\":\"2023-02-15T22:45:15+00:00\",\"author\":{\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85\"},\"description\":\"Monarch Casino says it's actively considering mergers and acquisitions.\",\"breadcrumb\":{\"@id\":\"https:\/\/www.casino.org\/news\/monarch-casino-willing-to-participate-in-industry-ma\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.casino.org\/news\/monarch-casino-willing-to-participate-in-industry-ma\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.casino.org\/news\/monarch-casino-willing-to-participate-in-industry-ma\/#primaryimage\",\"url\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/02\/atlantis-1.jpg\",\"contentUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/02\/atlantis-1.jpg\",\"width\":1280,\"height\":720,\"caption\":\"Monarch Casino & Resort's Atlantis in Reno, Nevada. The operator is open to mergers and acquisitions. 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