RENO, Nev., Oct. 24 /PRNewswire-FirstCall/ -- Monarch Casino & Resort, Inc. (the "Company"), owner of the Atlantis Casino Resort Spa in Reno, Nevada, today announced record quarterly results for casino and food and beverage gross revenue, net revenue, income from operations, EBITDA(1) and diluted EPS.

The Company reported record quarterly net revenue of $43.6 million, a 4.5% increase over the third quarter of 2006, driven primarily by quarterly records for gross revenue from its casino and food and beverage operations of $29.9 million and $11.0 million, respectively. Gross revenue from the hotel operation of $8.0 million was slightly lower than prior year's third quarter all-time record of $8.1 million.

The Company announced quarterly income from operations of $11.7 million, EBITDA(1) of $13.7 million and diluted EPS of 41 cents, each of which was also the highest ever reported for any quarter. The Company's operating margin of 26.9% was consistent with the 26.8% operating margin reported for the third quarter of the prior year.

The Company remained debt-free during the quarter, funded approximately $11.0 million of expenditures related to its ongoing expansion and the remodeling of its existing facilities, and increased its cash balance to $52.9 million, an increase of $15.9 million from the $37.0 million balance at December 31, 2006.

When asked about the Company's performance, Monarch's CEO and Co-Chairman John Farahi commented: "We delivered another record quarter despite softness in the Reno gaming market and disruption from the construction of our ongoing expansion project. We are very proud of our team for delivering these results in the face of this challenging market and operating environment." With respect to the Company's expansion project, Mr. Farahi added, "The expansion we began constructing in the second quarter of this year is progressing according to plan and remains on track for completion in the second quarter of 2008."

Monarch Casino & Resort, Inc., through its wholly-owned subsidiary, owns and operates the tropically-themed Atlantis Casino Resort Spa in Reno, Nevada. The Atlantis is the closest hotel-casino to, and is directly across the street from, the Reno-Sparks Convention Center. The Atlantis features a Sky Terrace, a unique structure rising approximately 55 feet above street level and spanning 160 feet across Virginia Street with no intermediate support pillars. The Sky Terrace connects the Atlantis to a 16-acre parcel of land owned by the Company that is compliant with all casino zoning requirements and is suitable and available for future expansion and growth. Currently, the Company uses the land as additional paved parking for the Atlantis. The existing Atlantis site offers almost 1,000 guest rooms in three contiguous high-rise hotel towers and a motor lodge. The Atlantis features approximately 51,000 square feet of high- energy casino space with 38 table games and approximately 1,450 slot and video poker machines, a sports book, Keno and a poker room, and offers a variety of dining choices in the form of nine high-quality food outlets.

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) future expansion plans and (iii) construction progress disruption and completion. 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 is included in the Company's Securities and Exchange Commission filings, which are available on the Company's web site.

Contacts: Ron Rowan, CFO at (775) 825-4700 or rrowan@monarchcasino.comJohn Farahi, CEO at (775) 825-4700 or JohnFarahi@monarchcasino.comFor additional information visit Monarch's web site at monarchcasino.com. (1) "EBITDA" consists of net income plus provision for income taxes, interest expense, depreciation and amortization less interest income. EBITDA should not be construed as an alternative to operating income (as determined in accordance with generally accepted accounting principles) as an indicator of the Company's operating performance, as an alternative to cash flows from operating activities (as determined in accordance with generally accepted accounting principles) or as a measure of liquidity. This item enables comparison of the Company's performance with the performance of other companies that report EBITDA, although some companies do not calculate this measure in the same manner and therefore, the measure as presented may not be comparable to similarly titled measures presented by other companies. Monarch Casino & Resort, Inc. Condensed Consolidated Statements of Income (Unaudited) Three Months Ended Nine Months Ended September 30, September 30, 2007 2006 2007 2006 Revenues Casino $29,936,988 $27,716,814 $84,512,978 $77,621,373 Food and beverage 11,011,808 10,889,609 32,084,196 30,769,768 Hotel 8,002,564 8,101,167 21,857,687 20,580,811 Other 1,229,521 1,254,264 3,703,972 3,648,862 Gross revenues 50,180,881 47,961,854 142,158,833 132,620,814 Less promotional allowances (6,557,585) (6,213,477) (19,192,626) (17,644,527) Net revenues 43,623,296 41,748,377 122,966,207 114,976,287 Operating expenses Casino 9,232,990 8,991,885 26,970,411 25,483,766 Food and beverage 5,381,681 5,143,751 15,217,367 14,634,537 Hotel 2,161,564 2,206,631 6,416,669 6,312,500 Other 386,056 384,033 1,127,113 1,116,317 Selling, general and administrative 12,731,275 11,681,175 37,054,086 35,156,852 Depreciation and amortization 1,982,184 2,139,592 6,122,600 6,430,831 Total operating expenses 31,875,750 30,547,067 92,908,246 89,134,803 Income from operations 11,747,546 11,201,310 30,057,961 25,841,484 Other income (expense) Interest income 568,462 154,230 1,385,883 190,732 Interest expense -- (15,401) (152,274) (74,845) Total other income (expense) 568,462 138,829 1,233,609 115,887 Income before income taxes 12,316,008 11,340,139 31,291,570 25,957,371 Provision for income taxes (4,280,000) (3,969,098) (10,860,000) (8,996,000) Net income $8,036,008 $7,371,041 $20,431,570 $16,961,371 Earnings per share of common stock: Net income Basic $0.42 $0.39 $1.07 $0.89 Diluted $0.41 $0.38 $1.06 $0.88 Weighted average number of common shares and potential common shares outstanding: Basic 19,079,062 19,058,896 19,080,347 18,965,694 Diluted 19,366,043 19,245,639 19,352,064 19,263,869 MONARCH CASINO & RESORT, INC. CONDENSED CONSOLIDATED BALANCE SHEETS September 30, December 31, 2007 2006 ASSETS (UNAUDITED) Current assets Cash and cash equivalents $52,949,354 $36,985,187 Receivables, net 4,590,222 3,268,970 Inventories 1,478,542 1,471,667 Prepaid expenses 3,572,182 2,833,126 Deferred income taxes 1,547,144 965,025 Total current assets 64,137,444 45,523,975 Property and equipment Land 10,339,530 10,339,530 Land improvements 3,166,107 3,166,107 Buildings 78,955,538 78,955,538 Building improvements 10,435,062 10,435,062 Furniture and equipment 71,746,192 72,708,061 Leasehold improvements 1,346,965 1,346,965 175,989,394 176,951,263 Less accumulated depreciation and amortization (90,245,245) (84,325,578) 85,744,149 92,625,685 Construction in progress 10,968,149 -- Net property and equipment 96,712,298 92,625,685 Other assets, net 84,822 231,247 Total assets $160,934,564 $138,380,907 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Accounts payable $8,053,256 $8,590,669 Construction payable 1,525,987 -- Accrued expenses 8,770,601 9,878,851 Federal income taxes payable 1,371,747 16,457 Total current liabilities 19,721,591 18,485,977 Deferred income taxes 3,708,614 4,248,614 Total liabilities 23,430,205 22,734,591 Stockholders' equity Preferred stock, $.01 par value, 10,000,000 shares authorized; none issued -- -- Common stock, $.01 par value, 30,000,000 shares authorized; 19,096,300 shares issued; 19,067,518 outstanding at 9/30/07 19,065,968 outstanding at 12/31/06 190,963 190,726 Additional paid-in capital 25,285,175 23,205,045 Treasury stock, 28,782 shares at 9/30/07 6,582 shares at 12/31/06, at cost (678,039) (24,145) Retained earnings 112,706,260 92,274,690 Total stockholders' equity 137,504,359 115,646,316 Total liability and stockholder's equity $160,934,564 $138,380,907 Monarch Casino & Resort, Inc. Reconciliation of Net Income to EBITDA (1) Three Months Ended Nine Months Ended September 30, September 30, 2007 2006 2007 2006 (unaudited) (unaudited) (unaudited) (unaudited) Net income $8,036,008 $7,371,041 $20,431,570 $16,961,371 Adjustments Provision for income taxes 4,280,000 3,969,098 10,860,000 8,996,000 Interest expense -- 15,401 152,274 74,845 Depreciation & amortization 1,982,184 2,139,592 6,122,600 6,430,831 Interest income (568,462) (154,230) (1,385,883) (190,732) EBITDA (1) (unaudited) $13,729,730 $13,340,902 $36,180,561 $32,272,315 (1) "EBITDA" consists of net income plus provision for income taxes, interest expense, depreciation and amortization less interest income. EBITDA should not be construed as an alternative to operating income (as determined in accordance with generally accepted accounting principles) as an indicator of the Company's operating performance, as an alternative to cash flows from operating activities (as determined in accordance with generally accepted accounting principles) or as a measure of liquidity. This item enables comparison of the Company's performance with the performance of other companies that report EBITDA, although some companies do not calculate this measure in the same manner and therefore, the measure as presented may not be comparable to similarly titled measures presented by other companies.