Atlantis parent posts profit, buys land

The parent company of the Atlantis Casino Resort Spa turned a profit in the third quarter even though casino and restaurant revenues fell.

And the company said it closed on a $3.25 million purchase of five nearby acres for potential expansion.

Monarch Casino & Resort Inc. reported operating income of $3.6 million on revenues of $34.9 million in the quarter. A year earlier, the company posted operating income of $6.2 million on revenues of $38.8 million.

Casino revenues were down 11.7 percent from a year ago, the company said, and its restaurant revenues were down nearly 10 percent. Hotel revenues were flat.

John Farahi, chief executive officer and co-chairman of Monarch, said Atlantis increased its share of the Reno market during the quarter and cut its operating costs. But the cuts, he said, couldn't keep pace with the erosion of the market.

He said the five-acre parcel the company purchased on the east side of the Atlantis property the land is east of Coliseum Way is envisioned as new parking space.

That, Farahi said, would open the way for development of the 20 acres that Atlantis owns west of Virginia Street. That property currently is used as a parking lot.

A 14,376-square-foot building on the newly acquired property has been leased back to the seller.

Monarch financed the purchase through its existing credit arrangements with banks. Even with the addition of land-purchase debt, the company said it paid down the balance on its borrowings by $3.45 million during the quarter. It had $48.65 million in outstanding borrowings at the end of the third quarter.

For the first nine months of this year, Monarch reported net income of $4.7 million and revenues of $101.9 million. A year earlier, the company earned $9.1 million on revenues of $108.4 million.