Revenue across the board was up; Monarch reported net revenue for the quarter up 4.9% to $36.2 million, quarterly income up 35.2% to $4.5 million, EBITDA up 20.3% to $7.7 million and diluted EPS up 45.5% to $0.16 a share.

For the quarter ending June 30, casino revenue was up 3.6%, food and beverage revenue was up 5.5% and hotel revenue was up 13.5%.

Monarch’s CEO and Co-Chairman John Farahi commented on the Company’s performance: “We are pleased with this quarter’s results, particularly because each of our operating departments reported revenue increases despite the ongoing macroeconomic weakness of our national and local economies. Looking forward, our plan is to continue delivering to our guests the same high quality experience that provided the foundation for this quarter’s increased revenues.”

Monarch was also able to pay down $3.2 million of its outstanding credit facility bringing the balance to $37.8 million.

Analysts on average believe that the owner of Atlantis Casino Resort Spa in Reno, Nevada will announce a profit of $0.16 a share.

While Monarch stock has lost 5.34% during the past week and is currently trading below its 20 day and 50 day moving average the stock has traded in the $10 range for most of the month.

During the first quarter of 2010 Monarch beat analyst expectations of $0.04 per share reporting net income of $2.44 million or $0.15 per share.

Monarch was also able to pay down $7.5 million worth of its credit facilities during the first quarter which is likely to help Monarch post higher profits during the second quarter.

The appointment is subject to applicable regulatory approval.

“Ms. Landau’s extensive experience in the gaming industry and her knowledge of the legal and regulatory requirements of a public gaming company is a welcome addition to the Monarch board,” said John Farahi, Monarch Co-Chairman and CEO.

Landau has served as general counsel and corporate secretary of Mandalay Resort Group from 1996 until 2005, and has been co-owner of W.A. Richardson Builders, LLC, a construction services firm specializing in casino resort development since 2005.

Landau has also been active in the International Association of Gaming Advisors, a worldwide organization of legal, financial and regulatory professionals in the gaming industry were she also served as President.

On average analysts have said that they expected to see the gaming company to report a profit of $0.04 per share on revenue of $32.01 million for the quarter.

However, surpassing expectations net income for the quarter grew to $2.44 million or $0.15 per share from $922 thousand or $0.06 per share in the same period last year.

Net revenues were also up to $34.35 million compared to $32.58 million last year and $31.9 million in the fourth quarter of 2009.

Monarch was also able pay down the balance outstanding under its credit facility by $7.5 million decreasing the balance to $41 million.

“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.” said CEO and Co-Chairman John Farahi.

The gaming companies EBITDA of $4.9 million was 8.9% higher than the $4.5 million reported in the fourth quarter of 2008.

During the quarter Monarch launched its new EZ Comp(SM) program in the Atlantis Casino Resort Spa in Reno, Nevada, allowing patrons to redeem complimentary food, beverage and other services directly at the properties food outlets and other points of service throughout the casino.

Because of this change the gaming company had to modify its accounting of complimentary expense recognition timing, changing the expenses from being recognized when points were redeemed to being recognized at the time the points are earned.

The change in the company’s policy resulted in a onetime, non-cash charge of approximately $1.4 million to account for liability for unredeemed point balances when the program was launched.

This charge was partially offset by lower operating expenses, but drove operation income down 66.3%.

Monarch also completed the acquisition of 2.3 acres of land with a 27,508 square foot building located near the Atlantis for approximately $2 million, during the quarter.

After the impact of the real estate transaction and additional facility maintenance and remodeling, the balance outstanding on the Company’s credit facility decreased slightly from $48.7 million at September 30, 2009 to $48.5 million at December 31, 2009.

Scharer parted ways with the gaming company due to time commitments related to other interests, however the rules requires that a majority of the board of directors be independent and that the audit committee be comprised of at least three members.

The Nasdaq stock exchange granted a cure period until July 26, 2010 to Monarch to allow them time to regain compliance with the Listing Rule.

Monarch has said they have begun a search for a replacement and fully intends to comply with the Nasdaq’s requirements prior to the expiration of the cure period.

The gambling company had net income for the quarter of six cents a share, off from twelve cents last year but better than predictions of a loss of two cents a share.

Monarch also reported total gross revenue of $38.91 million, which easily beat analyst predictions of $31.81 million, although it represented a drop from last year’s $40.58 million.

Monarch owns and operates the Atlantis Casino Resort Spa outside Reno, Nevada.

Even though net revenue dropped by better than ten percent from the same quarter previous year, down to 433 million, operating costs rose as increased comps and promotions were used to draw business.

After attributing the company’s performance to the recession and its effects, Monarch CEO John Farahi
also noted “disruption from construction related to our expansion, remodel and skybridge capital projects.”

Monarch’s Atlantis Casino in Reno, Nevada has dealt most of the year with ongoing construction to both the main resort and a bridge designed to ease access and lighten traffic problems. The expansion was complete in July, and the bridge finished in November.

The final stage, Spa Atlantis, opened last month.

While much of the gaming sector has seen plummeting sales and revenues, Monarch reported total revenues of over thirty-eight million dollars, giving the casino operator profits of over $21 million.

After having seen both total income and profit decline the last two quarters, Monarch’s net income was up substantially in the most recent period.

Monarch operates the Atlantis Casino outside Reno, Nevada, a venue which is nearing completion of a major expansion and refurbishment.

Monarch was named by Forbes magazine last week to its list of the “Best Small Companies” in the US.

With the Atlantis ready to exploit its newer and bigger casino and hotel, Monarch should be able to build on its positive steps.

Forbes placed Monarch Casino as number 176 on the list, noting its twelve percent net margin and relatively high return on investment, coming in forty-first over the last five years of the companies reviewed.

Even negative growth over the last year, falling at just under a thirty percent decline, seems strong compared to much of the gaming industry. Sales over the last year were off only five percent, much better than the Las Vegas steep double-digit declines.

A five-year average of return on equity of almost twenty-five percent also has to have potential investors closely eyeing this small gambling operator.

With a resilient performance in the face of the recession, Monarch Casino rightly gains recognition as one of the best little companies in the US.