Atlantis owner has means, and motive for expansion

A hard-boiled detective would figure out pretty quickly that Monarch Casino & Resort has both the means and the motive to expand its Atlantis Casino Resort.

John Farahi, chief executive officer and co-chairman of the Reno-based company, said last week that architects and other planners are beginning to plan expansion of Atlantis.

They're looking both at short-term and long-term possibilities for the property, which includes 51,000 square feet of casino floor and nearly 1,000 hotel rooms across the street from the Reno-Sparks Convention Center.

Farahi said the discussion includes possible uses of 16 acres the company owns at the northwest corner of Peckham Lane and South Virginia Street, and an Atlantis parking lot that's already OK'd for casino expansion.

"We're making sure that we're bringing new elements to our product," Farahi said.

Monarch hasn't said anything publicly about the timing of its growth plans.

The company clearly has the means to handle an expansion.

Its long-term debt, which totaled $32.4 million at the start of this year, has dropped by more than $20 million and stood at $11.9 million on Sept.

30.

"Our improving balance sheet opens the possibilities for new growth opportunities," Farahi said.

And the company has the chance to improve its balance sheet every quarter.

Monarch set quarterly records for itself during the third quarter, earning $7.1 million on revenues of $38.3 million.

Those earnings up from the company's net of $5.5 million a year ago reflect Monarch's ability to wring profit out of new revenues.More than 71 percent of its new operating revenues showed up in the bottom line.

And the motive for expansion? Station Casinos, the Las Vegas company that's made its name by appealing to locals markets, plans a 60,000-square-foot casino with a 500-room hotel at Kietzke and South Virginia, just a couple of blocks south of Atlantis.

And Station has plans, too, for a gaming and entertainment complex at Mount Rose Highway and U.S.

395.

Farahi said his company's expansion plans are intended to help Monarch meet the new competition whether the threat comes from Station's plans or some other new entrant to the market several years from now.

In the most recent quarter,Atlantis' casino revenues rose by 12.2 percent.

Farahi said the company is better managing its gaming product.

He didn't provide any further details, citing the need to protect his company's competitive edge.