Monarch Casino & Resort (NASDAQ: MCRI) has announced significant adjustments to its Q4 and full-year 2024 financial results following a court decision in its litigation with PCL Construction Services. The District Court of Denver awarded PCL damages of $74.7 million, while Monarch received $144,894 for its counterclaims, resulting in a net judgment of $74.6 million against Monarch.
The company has adjusted its balance sheet to reflect an additional $27.6 million liability, recorded as ‘Loss on Litigation.’ This adjustment has substantially impacted the previously reported results:
- Q4 2024 net income decreased from $25.5M to $4.2M
- Full-year 2024 net income reduced from $94.1M to $72.8M
- Q4 diluted EPS dropped from $1.36 to $0.22
- Full-year diluted EPS declined from $4.96 to $3.84
Monarch plans to appeal the decision to the Colorado Court of Appeals. The company noted that Adjusted EBITDA remains unaffected by these adjustments.
Monarch Casino & Resort (NASDAQ: MCRI) ha annunciato significative modifiche ai suoi risultati finanziari del Q4 e dell’intero anno 2024 a seguito di una decisione del tribunale nella sua causa contro PCL Construction Services. Il Tribunale Distrettuale di Denver ha assegnato a PCL un risarcimento di 74,7 milioni di dollari, mentre Monarch ha ricevuto 144.894 dollari per le sue controdenunce, portando a un giudizio netto di 74,6 milioni di dollari contro Monarch.
L’azienda ha adeguato il proprio bilancio per riflettere una passività aggiuntiva di 27,6 milioni di dollari, registrata come ‘Perdita da contenzioso.’ Questo adeguamento ha impattato sostanzialmente i risultati precedentemente riportati:
- Il reddito netto del Q4 2024 è diminuito da 25,5 milioni a 4,2 milioni
- Il reddito netto dell’intero anno 2024 è sceso da 94,1 milioni a 72,8 milioni
- Il guadagno per azione diluito del Q4 è sceso da 1,36 a 0,22
- Il guadagno per azione diluito dell’intero anno è diminuito da 4,96 a 3,84
Monarch prevede di fare appello contro la decisione alla Corte d’Appello del Colorado. L’azienda ha osservato che l’EBITDA rettificato rimane invariato da questi aggiustamenti.
Monarch Casino & Resort (NASDAQ: MCRI) ha anunciado ajustes significativos a sus resultados financieros del cuarto trimestre y del año completo 2024 tras una decisión judicial en su litigio con PCL Construction Services. El Tribunal de Distrito de Denver otorgó a PCL daños por 74,7 millones de dólares, mientras que Monarch recibió 144.894 dólares por sus contrademandas, resultando en un juicio neto de 74,6 millones de dólares en contra de Monarch.
La empresa ha ajustado su balance para reflejar una obligación adicional de 27,6 millones de dólares, registrada como ‘Pérdida por litigio.’ Este ajuste ha impactado sustancialmente los resultados previamente reportados:
- El ingreso neto del cuarto trimestre de 2024 disminuyó de 25,5 millones a 4,2 millones
- El ingreso neto del año completo 2024 se redujo de 94,1 millones a 72,8 millones
- El EPS diluido del cuarto trimestre cayó de 1,36 a 0,22
- El EPS diluido del año completo disminuyó de 4,96 a 3,84
Monarch planea apelar la decisión ante la Corte de Apelaciones de Colorado. La empresa señaló que el EBITDA ajustado no se ve afectado por estos ajustes.
모나크 카지노 & 리조트 (NASDAQ: MCRI)는 PCL 건설 서비스와의 소송에서 법원의 결정에 따라 2024년 4분기 및 연간 재무 결과에 중대한 조정을 발표했습니다. 덴버 지방법원은 PCL에게 7470만 달러의 손해배상을 부여했으며, 모나크는 반소로 144,894달러를 받았고, 결과적으로 모나크에 대한 순 판결은 7460만 달러가 되었습니다.
회사는 ‘소송 손실’로 기록된 추가 2760만 달러의 부채를 반영하기 위해 재무제표를 조정했습니다. 이 조정은 이전에 보고된 결과에 상당한 영향을 미쳤습니다:
- 2024년 4분기 순이익이 2550만 달러에서 420만 달러로 감소했습니다.
- 2024년 전체 연도 순이익이 9410만 달러에서 7280만 달러로 줄어들었습니다.
- 4분기 희석 주당 순이익이 1.36달러에서 0.22달러로 떨어졌습니다.
- 전체 연도 희석 주당 순이익이 4.96달러에서 3.84달러로 감소했습니다.
모나크는 콜로라도 항소법원에 이의 제기를 계획하고 있습니다. 회사는 조정된 EBITDA는 이러한 조정의 영향을 받지 않는다고 언급했습니다.
Monarch Casino & Resort (NASDAQ: MCRI) a annoncé des ajustements significatifs de ses résultats financiers du quatrième trimestre et de l’année complète 2024 suite à une décision de justice dans son litige avec PCL Construction Services. Le tribunal de district de Denver a accordé à PCL des dommages-intérêts de 74,7 millions de dollars, tandis que Monarch a reçu 144 894 dollars pour ses contre-demandes, entraînant un jugement net de 74,6 millions de dollars contre Monarch.
L’entreprise a ajusté son bilan pour refléter une passif supplémentaire de 27,6 millions de dollars, enregistré comme ‘Perte sur litige.’ Cet ajustement a eu un impact substantiel sur les résultats précédemment rapportés :
- Le revenu net du Q4 2024 a diminué de 25,5 millions à 4,2 millions
- Le revenu net de l’année complète 2024 a été réduit de 94,1 millions à 72,8 millions
- Le BPA dilué du Q4 est tombé de 1,36 à 0,22
- Le BPA dilué pour l’année complète est passé de 4,96 à 3,84
Monarch prévoit de faire appel de la décision devant la Cour d’appel du Colorado. L’entreprise a noté que l’EBITDA ajusté reste inchangé par ces ajustements.
Monarch Casino & Resort (NASDAQ: MCRI) hat bedeutende Anpassungen seiner Finanzzahlen für das 4. Quartal und das gesamte Jahr 2024 nach einem Gerichtsurteil in seinem Rechtsstreit mit PCL Construction Services bekannt gegeben. Das Bezirksgericht Denver sprach PCL Schadensersatz in Höhe von 74,7 Millionen Dollar zu, während Monarch 144.894 Dollar für seine Gegenklagen erhielt, was zu einem Nettou Urteil von 74,6 Millionen Dollar gegen Monarch führte.
Das Unternehmen hat seine Bilanz angepasst, um eine zusätzliche Verbindlichkeit von 27,6 Millionen Dollar zu reflektieren, die als ‘Verlust aus Rechtsstreitigkeiten’ verbucht wurde. Diese Anpassung hat die zuvor berichteten Ergebnisse erheblich beeinflusst:
- Der Nettogewinn im 4. Quartal 2024 sank von 25,5 Millionen auf 4,2 Millionen Dollar
- Der Nettogewinn für das gesamte Jahr 2024 fiel von 94,1 Millionen auf 72,8 Millionen Dollar
- Der verwässerte Gewinn pro Aktie im 4. Quartal sank von 1,36 auf 0,22 Dollar
- Der verwässerte Gewinn pro Aktie für das gesamte Jahr fiel von 4,96 auf 3,84 Dollar
Monarch plant, gegen die Entscheidung beim Colorado Court of Appeals Berufung einzulegen. Das Unternehmen stellte fest, dass das bereinigte EBITDA von diesen Anpassungen unberührt bleibt.
Positive
- Plans to appeal the court decision
- Adjusted EBITDA remains unaffected
Negative
- Court judgment of $74.6M against company
- Q4 net income dropped 83.5% to $4.2M
- Full-year 2024 net income decreased 22.6%
- Additional $27.6M liability recorded
- Q4 diluted EPS fell from $1.36 to $0.22
Insights
Monarch’s legal troubles with PCL Construction have manifested in a significant financial setback that substantially alters the company’s previously reported 2024 performance. The
The financial impact is severe, particularly for Q4 2024, where net income collapsed
While Monarch plans to appeal, investors should recognize several critical implications: 1) The appeal process itself creates significant uncertainty regarding ultimate financial obligations; 2) Monarch may need to post substantial bonds or other sureties to support the appeal process, potentially restricting capital flexibility; and 3) The forward-looking statements mention potential prejudgment interest and fees/costs that could further increase the financial burden beyond the principal judgment amount.
Though Adjusted EBITDA remains unchanged—indicating the company is treating this as a non-recurring item—the cash impact remains real regardless of accounting treatment. The materiality of this judgment relative to Monarch’s
The Denver District Court’s ruling in PCL Construction v. Monarch represents a substantial legal setback for the casino operator. The judgment scale—a
Two elements of this case warrant particular attention. First, the dramatic disparity between PCL’s
The appeal process introduces several contingent liabilities explicitly mentioned in the forward-looking statements: potential prejudgment interest awards, additional legal fees/costs, and the requirement to post appeal bonds or sureties. These bonds typically require securing 100-150% of the judgment amount, potentially restricting
Colorado appellate court statistics indicate construction appeals typically take 12-18 months to resolve. Throughout this period, interest on the judgment will likely continue accruing at Colorado’s statutory rate, potentially adding millions to the final obligation. Moreover, appellate courts tend to defer to trial court findings of fact, meaning Monarch faces significant hurdles to substantively reduce this judgment unless they can identify material errors of law in the trial court’s decision.
RENO, Nev., March 03, 2025 (GLOBE NEWSWIRE) — Monarch Casino & Resort, Inc. (Nasdaq: MCRI) (“Monarch” or “the Company”) 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
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
As a result, an adjustment of
These adjustments impact the previously reported results as follows:
- Net income for the three month and twelve months ended December 31, 2024 were
$4,211 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.
Forward Looking Statements
This Form 8-K contains forward-looking statements within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as “plan,” “intends,” “anticipates,” “believe,” “expect,” “seem,” “look,” “look forward,” “positioning,” “future,” “will,” “confident” and similar references to future periods. Example of forward-looking statements include, among others, statements we make regarding our plans relating to the filing of an appeal with the Colorado Court of Appeals. Actual results and future events and conditions may differ materially from those described in any forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause actual results to differ materially from estimates or projections contained in the forward-looking statements include, without limitation:
- ongoing disagreements over costs of and responsibility for delays and other construction related matters with PCL, including, as previously reported, the litigation against us by such contractor;
- our counterclaims for construction defects, breach of contract, breach of warranty, fraud, fraudulent inducement, negligence or other construction related claims that we may have against PCL, or others, in connection with construction and completion of Monarch Casino Resort Spa Black Hawk and any adverse impacts on operations required to correct the same, including those claims asserted in the above-mentioned litigation against PCL;
- amounts that may be awarded by the Colorado Court for prejudgment interest and for fees and costs;
- the outcome of any appeal of the litigation that may be filed in the above-mentioned litigation in which litigation the Company intends to appeal the Court’s decision;
- our potential need to post bonds or other forms of surety to support our legal remedies, including the appeal
Additional information concerning potential factors that could adversely affect all forward-looking statements, including the Company’s financial results, is included in our Securities and Exchange Commission filings, including our 2024 Form 10-K and quarterly reports on Form 10-Q, which are available on our website at www.monarchcasino.com.
About Monarch Casino & Resort, Inc.
Monarch Casino & Resort, Inc., through its subsidiaries, owns and operates the Monarch Casino Resort Spa (“Monarch Black Hawk”) in Black Hawk, Colorado, approximately 40 miles west of Denver and the Atlantis Casino Resort Spa (“Atlantis”), a hotel/casino facility in Reno, Nevada. For additional information on Monarch, visit the Company’s website at www.monarchcasino.com.
Monarch Black Hawk features 516 guest rooms and suites, and approximately 60,000 square feet of casino space. The resort offers approximately 1,000 slot machines; 43 table games; a live poker room; keno; and a sports book. It also includes 10 bars and lounges, as well as four dining options: a twenty-four-hour full-service restaurant, a buffet-style restaurant, the Monarch Chophouse (a fine-dining steakhouse), and Bistro Mariposa (elevated Southwest cuisine), banquet and meeting room space, a retail store, a concierge lounge and an upscale spa and enclosed year-round pool facility located on the top floor of the tower. The resort is connected to a nine-story parking structure with approximately 1,350 parking spaces, and additional valet parking, with total property capacity of approximately 1,500 spaces.
Atlantis features 817 guest rooms and suites, and approximately 61,000 square feet of casino space. The casino features approximately 1,200 slot and video poker machines; approximately 33 table games, including blackjack, craps, roulette, and others; a race and sports book; a 24-hour live keno lounge; and a poker room. It also includes eight food outlets; two gourmet coffee and pastry bars; a 30,000 square foot health spa and salon with an enclosed year-round pool; retail outlet 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.
Contacts:
John Farahi
Chief Executive Officer
775/824-4401 or JFarahi@monarchcasino.com
Joseph Jaffoni, Richard Land, James Leahy
JCIR
212/835-8500 or mcri@jcir.com
FAQ
How much did the court judgment against MCRI impact its Q4 2024 earnings?
The judgment reduced MCRI’s Q4 2024 net income by $21.3 million, from $25.5 million to $4.2 million, with quarterly EPS dropping from $1.36 to $0.22.
What is the total amount MCRI owes PCL Construction after the court ruling?
The court awarded a net judgment of $74.6 million to PCL Construction, after accounting for Monarch’s counterclaim award of $144,894.
How much did MCRI’s full-year 2024 earnings decrease due to the litigation loss?
MCRI’s full-year 2024 net income decreased by $21.3 million, from $94.1 million to $72.8 million, with annual EPS falling from $4.96 to $3.84.
Did the PCL Construction litigation affect MCRI’s Adjusted EBITDA?
No, MCRI’s Adjusted EBITDA was not impacted by the litigation judgment and related adjustments.
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