Monarch Casino & Resort, Inc. Announces Expected Results for Second Quarter

Press Release: Monarch Casino & Resort, Inc.
June 7, 2002
RENO, NV -- Monarch Casino & Resort, Inc. (Nasdaq: MCRI; the "Company"), which, through a wholly-owned subsidiary, owns and operates the Atlantis Casino Resort, today announced its earnings estimates for the second quarter ending June 30 of this year to be between 22 and 23 cents per diluted share. During the same period last year, the Company earned 18 cents per diluted share. This year represents an off year for the American Bowling Congress (ABC) and Women's International Bowling Congress (WIBC), which stage National Bowling Championships for men and women, respectively in Reno every two out of three years. In 2001, the ABC and WIBC tournaments had a substantial positive impact on the Company's results of operations.

John Farahi, CEO and Co-Chairman of the Board of Directors of Monarch, stated "our business volume remains strong; we see improvement in both our slot and table game play for April and May of this year compared to the same period last year (up 5.7% and 2.1%, respectively), and expect this trend to continue despite our lack of bowlers. However, due to lower holds on both slots and table games in the month of May, combined with the temporary disruption caused by our renovations to certain of our hotel tower rooms and additional one-time costs associated with the registration of stock for employee options and the sale of stock by principal shareholders, our earnings this quarter will be impacted."

Analysts had previously anticipated earnings of 28 to 30 cents per diluted share for the second quarter of 2002.

The Atlantis features a 51,000 square foot casino with approximately 1,500 slot and video poker machines, 37 table games, a race and sports book, keno and a poker room; 980 guest rooms; six restaurants including the aquatic-themed, 135-seat Atlantis Seafood Steakhouse gourmet restaurant, the award-winning, 640-seat Toucan Charlie's Buffet & Grille; the 230-seat MonteVigna Italian Ristorante; and the 85-seat Oyster Bar restaurant in the Sky Terrace, one snack bar, and two gourmet coffee bars; an 8,000 square foot family entertainment center; and approximately 25,000 square feet of banquet and meeting space. The Atlantis is the closest hotel-casino to the Reno Sparks Convention Center. The convention center is in the construction phase of a $105 million expansion and renovation scheduled to be completed in late July of this year that will increase its exhibition, meeting, ballroom and lobby space to approximately 600,000 square feet.

This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934 which are subject to change, including, but not limited to, comments relating to (i) future operating performance and (ii) the financial benefits that may result from future operations. The actual results may differ materially from those described in any forward-looking statements. Additional information concerning potential factors that could affect the Company's financial results are included in the Company's Securities and Exchange Commission filings, which are available on the Company's web site.

SOURCE: Monarch Casino & Resort, Inc.