 RENO, Nev., July 22, 2020 GLOBE NEWSWIRE -- Monarch Casino Resort, Inc. Nasdaq: MCRI Monarch or the Company today reported operating results for the second quarter ended June 30, 2020, as summarized below: in thousands, except per share data and percentages Three Months Ended June 30, Six Months Ended June 30, 2020 2019 Decrease 2020 2019 Decrease Net revenue15,156 62,761 75.9 66,167 121,501 45.5 Adjusted EBITDA1490 16,519 97.0 8,599 30,194 71.5 Net loss income4,347 9,279 146.8 2,327 16,294 114.3 Basic losses earnings per share0.24 0.52 146.2 0.13 0.91 114.3 Diluted losses earnings per share0.24 0.50 148.0 0.13 0.88 114.8 1 Definitions, disclosures and reconciliations of non-GAAP financial information are included later in the release.CEO Comment John Farahi, Co-Chairman and Chief Executive Officer of Monarch, commented: Following the state-mandated closure of our properties in mid-March, we took immediate steps to ensure that our Company preserved its financial flexibility to manage through the nearly three-month shutdown. We reduced expenses throughout the Company and worked with our bankers to secure the necessary amendments to our credit facility. Thanks to the commitment and sacrifices of our dedicated team, along with the support of our bankers, Monarch was well prepared to carry on during the state-mandated shutdowns of our operations and emerge from them in a financially stable position.Since the June 4 re-opening of Atlantis Casino Resort Spa and the June 17 re-opening of Monarch Casino Black Hawk, we have adjusted our staffing and services, in-line with the changing public health guidelines put forth by the governors of Nevada and Colorado, as well as by the CDC. Our focus from day one has been the health and safety of our team members and guests. Consequently, we have been extremely diligent in our approach to minimizing risks as we reintroduce our guests to the gaming, entertainment and hospitality experiences they have come to expect from Monarch.As a result of our cost mitigation measures and the strong initial reopening performance at both Atlantis and Black Hawk, Monarch generated 2020 second quarter revenue of 15.2 million and delivered positive Adjusted EBITDA of 0.5 million. Though visitation has not yet fully recovered to pre-COVID levels, and we continue to limit capacity in-line with the state-mandated re-opening guidelines, spend per visit has been very encouraging and our guests have offered positive feedback on the comprehensive safety measures weve implemented. The Company recorded June net revenue of 15.0 million and Adjusted EBITDA of 6.9 million. For the portion of June in which Atlantis Casino Resort Spa was open, gaming revenue increased 12 compared to the same period a year-ago. Gaming revenue at Monarch Casino Black Hawk for the portion of June in which the property was open declined, as table games have not yet been allowed to re-open.In Colorado, we continued to make progress on the construction of the new Monarch Casino Resort Spa Black Hawk throughout the shutdown. We anticipate that the podium and some hotel floors will open in the third quarter of 2020 and the balance of the hotel tower will open in the fourth quarter of 2020. Importantly, guest excitement continues to build with the recent removal of the construction wall separating the existing casino from the new expanded casino.On behalf of our Board of Directors, Id like to thank our team members for their sacrifice during the unprecedented property shutdowns and for their tireless efforts as we worked quickly to implement new health and safety measures ahead of the re-openings.To our guests, everyone at Monarch thanks you for your patience during the closures and for your loyalty since our re-opening. Its marvelous to see your smiling faces again. Youve told us time and again that you value the friendly service and warm experience Monarch employees provide, and we believe you have clearly demonstrated your appreciation over the past few weeks. Finally, to our stockholders, we thank you for continuing to invest and trust in our entire team, which has given us the confidence to manage through the ongoing COVID-19 pandemic and to position Monarch for long-term success.Summary of 2020 Second Quarter Operating Results For the 2020 second quarter, consolidated net revenue of 15.2 million decreased 75.9 from 62.8 million in the prior year. Casino, food and beverage FB, and hotel revenues decreased 69.8, 83.9, and 83.3 year-over-year, respectively. Revenue for each category decreased as a result of the COVID-19 outbreak and the temporary shutdown of the Companys operations in Reno and Black Hawk which began late in the first quarter of 2020 and ended on June 4 and June 17, respectively.Selling, general and administrative SGA expenses for the second quarter of 2020 were 8.9 million compared to 16.5 million in the prior-year period, driven primarily by the mandated shutdown of the Companys operations and temporary furloughs of approximately 90 of the Companys employees as a result of the pandemic. As a percentage of net revenue, SGA expense increased to 58.5 compared to 26.3 in the prior year period. Casino operating expense as a percentage of casino revenue decreased to 26.8 during the second quarter of 2020 from 34.5 in the prior-year period primarily as a result of cost cutting measures undertaken by the Company as well as strong initial casino performance as both properties re-opened late in the quarter. FB operating expense as a percentage of FB revenue increased to 96.6 during the second quarter of 2020 from 79.6 in the prior year period primarily as a result of higher labor costs as a percentage of revenue. Hotel operating expense as a percentage of hotel revenue increased to 61.8 in the second quarter of 2020 compared to 39.1 in the same period a year ago, primarily as a result of higher labor costs as a percentage of revenue.The Company generated consolidated adjusted EBITDA of 0.5 million in the second quarter of 2020 compared to 16.5 million in the same period a year ago. Net income for the second quarter of 2020 decreased 146.8 and diluted EPS declined 148.0 compared to same period a year ago. The decline in adjusted EBITDA, net income and diluted EPS in the quarter is primarily a result of the COVID-19 outbreak and the temporary shutdown of the Companys operations in Reno and Black Hawk which began late in the 2020 first quarter and lasted for more than two thirds of the second quarterMonarch Black Hawk Expansion Summarized below is an update on the Companys ongoing upgrade and expansion of Monarch Casino Black Hawk: in millionsBudget Cost Total Spent Through June 30, 2020 Left to Spend Estimated Completion Date I. Existing Facility Monarch Casino Black Hawk 176 76 - Completed Existing Facility Upgrade 2334 - 36 33 1 - 3 Exterior Completed Interior 4Q20 Total Existing Facility110 - 112 109 1- 3 II. Expansion Acquired Land Parcels10 10 - Completed Parking Structure38 - 41 41 - Completed Hotel Tower Casino 3264 - 269 256 8 - 13 3Q204Q20 Other8 - 10 10 - Total Expansion 4320 - 330 317 8 - 13 Total Cost 4430 - 442 426 9 - 16 1 The Company paid 76.0 million cash or 69.2 million net of acquired working capital and NOLs when it acquired Monarch Casino Black Hawk formerly Riviera Black Hawk Casino in 2012. 2 Includes upgrades to the interior, which were completed in August 2015, additional work to tie the two buildings together, completed in the fourth quarter of 2019, demolition of the original garage, and upgrades to the exterior of the existing facility to match the design of the master planned expansion. 3 The Company anticipates funding the hotel tower and casino expansion, as well as the existing facility exterior upgrades, from a combination of operating cash flow and the amended and restated credit facility the Amended Credit Facility. 4 As disclosed, the Company is in litigation with its Monarch Black Hawk contractor which has asserted damage claims against Monarch that also include impact claims from certain subcontractors. The amounts set forth by the Company in this table are exclusive of these additional damage amounts as such amounts are disputed by Monarch and also do not reflect counterclaims Monarch has asserted. Monarch intends to defend the claims and pursue the counterclaims vigorously. Based on the current construction progress, the Company anticipates that the podium, which includes the expanded casino, restaurants, hotel administration, and lounges, as well as some hotel floors, will open in the third quarter of 2020 and the balance of the hotel tower will open in the fourth quarter of 2020.Credit Facility and Liquidity Capital expenditures of 8.9 million in the second quarter of 2020 include construction costs related to the Monarch Casino Black Hawk expansion as well as ongoing capital maintenance spending at the Companys two properties. Capital expenditures during the quarter were funded from the Companys available cash and cash equivalents. Total outstanding debt as of June 30, 2020 was 206.7 million, net of deferred loan costs. The Company has received a limited default and covenant waiver and amendments to its credit facility from its bankers, through September 29, 2020. Monarch is in continuing discussions with its bank group regarding additional relief options and amendments to the Amended Credit Facility.The Company capitalized 1.4 million of interest expense in each of the second quarters of 2020 and 2019. 