UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2001 or [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM ______TO______. Commission File No. 0-22088 MONARCH CASINO & RESORT, INC. (Exact name of registrant as specified in its charter) ------------------------- NEVADA 88-0300760 (State or other jurisdiction (I.R.S. Employer of incorporation or organization) Identification No.) 1175 W. MOANA LANE, SUITE 200 RENO, NEVADA 89509 (Address of principal (Zip code) executive offices) Registrant's telephone number, including area code: (775) 825-3355 ------------------------- NOT APPLICABLE (Former name, former address and former fiscal year, if changed since last report.) Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. YES _X_ NO ___ APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS DURING THE PRECEDING FIVE YEARS: Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Sections 12, 13, or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court. YES ___ NO ___ APPLICABLE ONLY TO CORPORATE ISSUERS: Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date. As of August 10, 2001, there were 9,436,275 shares of Monarch Casino & Resort, Inc. $0.01 par value common stock outstanding. PART 1. FINANCIAL INFORMATION ITEM 1. FINANCIAL STATEMENTS MONARCH CASINO & RESORT, INC. CONDENSED CONSOLIDATED STATEMENTS OF INCOME <TABLE> <CAPTION> Three Months Ended Six Months Ended June 30, June 30, -------------------------- -------------------------- 2001 2000 2001 2000 ------------ ------------ ------------ ------------ (Unaudited) (Unaudited) (Unaudited) (Unaudited) <S> <C> <C> <C> <C> Revenues Casino........................... $ 17,365,786 $ 15,501,459 $ 32,366,457 $ 29,550,188 Food and beverage................ 8,111,547 7,400,521 15,621,559 14,175,898 Hotel............................ 4,960,799 4,642,868 9,050,979 8,752,129 Other............................ 842,377 896,375 1,625,673 1,706,151 ------------ ------------ ------------ ------------ Gross revenues................ 31,280,509 28,441,223 58,664,668 54,184,366 Less promotional allowances...... (3,548,524) (3,462,731) (7,182,502) (6,556,147) ------------ ------------ ------------ ------------ Net revenues.................. 27,731,985 24,978,492 51,482,166 47,628,219 ------------ ------------ ------------ ------------ Operating expenses Casino........................... 6,491,189 6,386,124 12,760,789 12,220,027 Food and beverage................ 4,720,760 4,585,251 8,909,868 8,836,887 Hotel............................ 1,761,679 1,608,437 3,380,021 3,224,901 Other............................ 342,074 357,119 635,762 664,195 Selling, general and administrative.................. 6,753,485 6,068,891 13,336,301 12,026,962 Depreciation and amortization.... 2,518,634 2,518,646 4,990,774 5,018,401 ------------ ------------ ------------ ------------ Total operating expenses...... 22,587,821 21,524,468 44,013,515 41,991,373 ------------ ------------ ------------ ------------ Income from operations........ 5,144,164 3,454,024 7,468,651 5,636,846 ------------ ------------ ------------ ------------ Other expense Interest expense................. 2,519,188 2,178,903 4,384,885 4,218,012 ------------ ------------ ------------ ------------ Total other expenses.......... 2,519,188 2,178,903 4,384,885 4,218,012 ------------ ------------ ------------ ------------ Income before income taxes.... 2,624,976 1,275,121 3,083,766 1,418,834 Provision for income taxes......... 890,922 445,301 1,047,401 495,809 ------------ ------------ ------------ ------------ Net income.................... $ 1,734,054 $ 829,820 $ 2,036,365 $ 923,025 ============ ============ ============ ============ Income per share of common stock Net income Basic.......................... $ 0.18 $ 0.09 $ 0.22 $ 0.10 Diluted........................ $ 0.18 $ 0.09 $ 0.21 $ 0.10 Weighted average number of common shares and potential common shares outstanding Basic.......................... 9,436,275 9,436,275 9,436,275 9,436,275 Diluted........................ 9,477,006 9,478,796 9,476,348 9,481,390 </TABLE> The accompanying Notes to the Condensed Consolidated Financial Statements are an integral part of these statements. -2- MONARCH CASINO & RESORT, INC. CONDENSED CONSOLIDATED BALANCE SHEETS <TABLE> <CAPTION> June 30, December 31, 2001 2000 ------------ ------------ (Unaudited) <S> <C> <C> ASSETS Current assets Cash................................................. $ 7,328,465 $ 6,783,998 Receivables, net..................................... 2,964,854 2,963,648 Federal income tax refund receivable................. - 417,135 Related party receivables............................ 65,441 62,920 Inventories.......................................... 1,045,259 1,099,285 Prepaid expenses..................................... 2,154,088 1,875,909 Prepaid federal income taxes ........................ - 154,281 Deferred income taxes................................ 1,738,396 2,045,651 ------------- ------------ Total current assets.............................. 15,296,503 15,402,827 ------------- ------------ Property and equipment Land................................................. 10,339,530 10,339,530 Land improvements.................................... 3,173,676 3,173,926 Buildings............................................ 78,955,538 78,955,538 Building improvements................................ 4,719,130 4,733,595 Furniture and equipment................................ 52,136,880 50,924,021 ------------- ------------ 149,324,754 148,126,610 Less accumulated depreciation and amortization....... (42,523,805) (37,816,876) ------------- ------------ 106,800,949 110,309,734 Construction in progress............................. 552,766 - ------------- ------------ Net property and equipment........................ 107,353,715 110,309,734 ------------- ------------ Other assets, net...................................... 578,037 678,247 ------------- ------------ Total assets...................................... $ 123,228,255 $ 126,390,808 ============= ============ </TABLE> The accompanying Notes to the Condensed Consolidated Financial Statements are an integral part of these statements. -3- MONARCH CASINO & RESORT, INC. CONDENSED CONSOLIDATED BALANCE SHEETS <TABLE> <CAPTION> June 30, December 31, 2001 2000 ------------ ------------ (Unaudited) <S> <C> <C> LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Current maturities of long-term debt................. $ 8,569,249 $ 7,537,893 Accounts payable..................................... 3,819,418 8,234,219 Accounts payable-construction........................ 4,574 34,650 Accrued expenses..................................... 7,896,719 5,690,888 Federal income taxes payable......................... 222,423 - ------------- ------------ Total current liabilities......................... 20,512,383 21,497,650 Long-term debt, less current maturities................ 68,924,414 73,480,788 Deferred income taxes.................................. 4,926,431 4,583,708 Commitments and contingencies.......................... Stockholders' equity Preferred stock, $.01 par value, 10,000,000 shares authorized; none issued...................... - - Common stock, $.01 par value, 30,000,000 shares authorized; 9,536,275 issued; 9,436,275 outstanding............................... 95,363 95,363 Additional paid-in capital........................... 17,241,788 17,241,788 Treasury stock, at cost.............................. (329,875) (329,875) Retained earnings.................................... 11,857,751 9,821,386 ------------- ------------ Total stockholders' equity........................ 28,865,027 26,828,662 ------------- ------------ Total liabilities and stockholders' equity........ $123,228,255 $126,390,808 ============= ============ </TABLE> The accompanying Notes to the Condensed Consolidated Financial Statements are an integral part of these statements. -4- MONARCH CASINO & RESORT, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS <TABLE> <CAPTION> Six Months Ended June 30, ---------------------------- 2001 2000 ------------ ------------ (Unaudited) (Unaudited) <S> <C> <C> Cash flows from operating activities: Net income............................................ $ 2,036,365 $ 923,025 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization....................... 5,080,486 5,109,154 Gain on disposal of assets.......................... (2,979) (87,980) Deferred income taxes............................... 649,978 129,416 Decrease (increase) in receivables, net............. 413,408 (1,280,592) Decrease in inventories............................. 54,026 222,647 Increase in prepaid expenses........................ (123,898) (449,542) Decrease in other assets............................ 8,766 10,872 Decrease in accounts payable........................ (4,414,801) (1,440,503) Increase in accrued expenses, and federal income taxes.......................... 2,428,254 451,124 ------------ ------------ Net cash provided by operating activities.......... 6,129,605 3,587,621 ------------ ------------ Cash flows from investing activities: Proceeds from sale of assets.......................... 42,100 87,980 Acquisition of property and equipment................. (1,146,837) (1,670,529) Decrease in accounts payable construction............. (30,076) (445,707) ------------ ------------ Net cash used in investing activities.............. (1,134,813) (2,028,256) ------------ ------------ Cash flows from financing activities: Principal payments on long-term debt.................. (4,450,325) (4,023,263) ------------ ------------ Net cash used in financing activities.............................. (4,450,325) (4,023,263) ------------ ------------ Net increase (decrease) in cash.................... 544,467 (2,463,898) Cash at beginning of period............................. 6,783,998 6,367,507 ------------ ------------ Cash at end of period................................... $ 7,328,465 $ 3,903,609 ============ ============ Supplemental disclosure of cash flow information: Cash paid for interest, net of capitalized interest.......................... $ 2,857,778 $ 4,101,751 Cash paid for income taxes............................ $ 175,000 $ - Supplemental schedule of non-cash investing and financing activities: The Company financed the purchase of property and equipment in the following amounts............... $ 925,307 $ 136,009 </TABLE> The accompanying Notes to the Condensed Consolidated Financial Statements are an integral part of these statements. -5- MONARCH CASINO & RESORT, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation Monarch Casino & Resort, Inc. ("Monarch"), a Nevada corporation, was incorporated in 1993. Monarch's wholly-owned subsidiary, Golden Road Motor Inn, Inc. ("Golden Road"), operates the Atlantis Casino Resort (the "Atlantis"), a hotel/casino facility in Reno, Nevada. Unless stated otherwise, the "Company" refers collectively to Monarch and its wholly-owned subsidiary, Golden Road. The consolidated financial statements include the accounts of Monarch and Golden Road. Intercompany balances and transactions are eliminated. Use of Estimates In preparing these financial statements in conformity with generally accepted accounting principles in the United States, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and revenues and expenses during the year. Actual results could differ from those estimates. Related Party Receivables Receivables from officers, employees, or affiliated companies are primarily for banquet related services and are priced at the retail value of the goods or services provided. Shareholder Guarantee Fees All of the Company's bank debt is personally guaranteed by the Company's three largest stockholders. Effective January 1, 2001 the Company is compensating the guarantors at the rate of 2% of annual outstanding bank debt per annum until the guarantees are cancelled or the notes are paid off. As of June 30, 2001, $781,639 was accrued and is included in interest expense. NOTE 2. INTERIM FINANCIAL STATEMENTS The accompanying condensed consolidated financial statements for the three and six month periods ended June 30, 2001 and June 30, 2000 are unaudited. In the opinion of management, all adjustments, consisting of normal recurring adjustments necessary for a fair presentation of the Company's financial position and results of operations for such periods, have been included. The accompanying unaudited condensed consolidated financial statements should be read in conjunction with the Company's audited financial statements included in its Annual Report on Form 10-K for the year ended December 31, 2000. The results for the three and six month periods ended June 30, 2001 are not necessarily indicative of the results that may be expected for the year ended December 31, 2001, or for any other period. -6- NOTE 3. EARNINGS PER SHARE The Company accounts for earnings per share using Statement of Financial Accounting Standards ("SFAS") No. 128, "Earnings Per Share." The following is a reconciliation of the number of shares (denominator) used in the basic and diluted earnings per share computations (shares in thousands): <TABLE> <CAPTION> Three Months Ended June 30, ----------------------------------- 2001 2000 ---------------- ---------------- Per Share Per Share Shares Amount Shares Amount ------ --------- ------ --------- <S> <C> <C> <C> <C> Net Income Basic..................... 9,436 $0.18 9,436 $0.09 Effect of dilutive stock options............ 41 - 43 - ------ ------- ------ ------- Diluted................... 9,477 $0.18 9,479 $0.09 ====== ======= ====== ======= </TABLE> <TABLE> <CAPTION> Six Months Ended June 30, ----------------------------------- 2001 2000 ---------------- ---------------- Per Share Per Share Shares Amount Shares Amount ------ --------- ------ --------- <S> <C> <C> <C> <C> Net Income Basic..................... 9,436 $0.22 9,436 $0.10 Effect of dilutive stock options............ 40 (0.01) 45 - ------ ------ ------ ------ Diluted................... 9,476 $0.21 9,481 $0.10 ====== ====== ====== ====== </TABLE> -7- The following options were not included in the computation of diluted earnings per share because the options' exercise price was greater than the average market price of the common shares and their inclusion would be antidilutive: <TABLE> <CAPTION> Three Months Ended June 30, ---------------------------- 2001 2000 ----------- ----------- <S> <C> <C> Options to purchase shares of common stock (in thousands)..... 17 19 Exercise prices.................. $5.50-$5.94 $5.25-$6.00 Expiration dates................. 9/03-2/10 6/03-2/10 </TABLE> <TABLE> <CAPTION> Six Months Ended June 30, ---------------------------- 2001 2000 ----------- ----------- <S> <C> <C> Options to purchase shares of common stock (in thousands)..... 20 19 Exercise prices.................. $5.25-$5.94 $5.25-$6.00 Expiration dates................. 9/03-2/10 6/03-2/10 </TABLE> -8- ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS STATEMENT ON FORWARD-LOOKING INFORMATION Certain information included herein contains statements that may be considered forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, such as statements relating to anticipated expenses, capital spending and financing sources. Such forward-looking information involves important risks and uncertainties that could significantly affect anticipated results in the future and, accordingly, such results may differ from those expressed in any forward-looking statements made herein. These risks and uncertainties include, but are not limited to, those relating to competitive industry conditions, and expansion of Indian casinos in California, Reno-area tourism conditions, dependence on existing management, leverage and debt service (including sensitivity to fluctuations in interest rates), the regulation of the gaming industry (including actions affecting licensing), outcome of litigation, domestic or global economic conditions, changes in federal or state tax laws or the administration of such laws. RESULTS OF OPERATIONS Comparison of Operating Results for the Three Month Periods Ended June 30, 2001 and 2000 For the three month period ended June 30, 2001, the Company earned $1.7 million, or $0.18 per share, on net revenues of $27.7 million, compared to earnings of $830 thousand, or $0.09 per share, on net revenues of $25.0 million for the three months ended June 30, 2000. Income from operations for the three months ended June 30, 2001 totaled $5.1 million, compared to $3.4 million for the 2000 second quarter. Casino revenues totaled $17.4 million in the second quarter of 2001, an increase of 12.0% from $15.5 million in the 2000 second quarter, reflecting an increase in slot and poker room win. Slot revenues were up 19.7% in the second quarter of 2001 compared to the second quarter of 2000 due to an increase in the volume of slot machine play. Table game revenue for the three months ended June 30, 2001, decreased 10.3% compared to the same period in 2000, primarily due to a decrease in table game hold percentage, while drop remained relatively unchanged. Poker room revenue increased 23.7% for the three months ended June 30, 2001, compared to the same period last year. Casino operating expenses amounted to 37.4% of casino revenues in the 2001 second quarter, compared to 41.2% in the 2000 second quarter, primarily due to successful efforts to manage variable expenses. Food and beverage revenues for the 2001 second quarter totaled $8.1 million, an increase of 9.6% from $7.4 million in the 2000 second quarter, due primarily to an increase in average revenue per cover. Food and beverage operating expenses amounted to 58.2% of food and beverage revenue in the 2001 second quarter, compared to 62.0% in the second quarter of 2000, primarily due to a reduction in average food cost of sales and overall successful efforts to manage variable expenses. -9- Hotel revenues increased 6.8% to $5.0 million from $4.6 million in the 2000 second quarter, as a result of an increase in the average daily room rate ("ADR"), offset, in part, by a decrease in the occupancy rate. The Atlantis' ADR was $55.25 for the 2001 second quarter compared to $51.73 in the second quarter of 2000. The occupancy rate was 92.7% during the 2001 second quarter, down from an occupancy rate of 96.7% during the same period last year. Hotel operating expenses in the 2001 second quarter were 35.5% of hotel revenues, compared to 34.6% in the 2000 second quarter, due primarily to an increase in bad debts expense. Other revenues totaled $842 thousand in the second quarter of 2001, down 6.0% from $896 thousand in the second quarter of 2000, primarily reflecting certain non-recurring revenue items in the second quarter of 2000. Other expenses in the 2001 second quarter were 40.6% of other revenues, compared to 39.8% in the 2000 second quarter. Selling, general and administrative ("SG&A") expenses were $6.8 million in the 2001 second quarter, compared to $6.1 million in the second quarter of 2000. As a percentage of net revenue, SG&A expenses remained relatively constant at 24.4% in the second quarter of 2001 compared to 24.3% in the 2000 second quarter. Interest expense for the 2001 second quarter totaled $2.5 million, an increase of 15.6% from $2.2 million in the second quarter of 2000. The increase in interest expense is due to the accrual of interest payable to the Company's three largest stockholders for their personal guarantee of all bank debt of the Company. Effective January 1, 2001 the Company is compensating the guarantors at the rate of 2% of annual outstanding bank debt per annum until the guarantees are cancelled or the notes are paid off. Comparison of Operating Results for the Six Month Periods Ended June 30, 2001 and 2000 For the six months ended June 30, 2001, the Company earned $2.0 million, or $0.21 per share (diluted), on net revenues of $51.5 million, compared to earnings of $923 thousand, or $0.10 per share (diluted), on net revenues of $47.6 million during the six months ended June 30, 2000. Operating income for the 2001 six month period totaled $7.5 million, compared to $5.6 million for the same period in 2000. Casino revenues for the first six months of 2001 totaled $32.4 million, a 9.5% increase from $29.6 million for the first six months of 2000, reflecting increases in both slot and poker room win. Slot revenues were up 13.5% in the first six months of 2001 compared to the first six months of 2000 due to an increase in the volume of slot machine play for the six month period. Table game revenue for the six months ended June 30, 2001 decreased 4.3% compared to the same period in 2000, primarily due to a decrease in table game hold for the six month period. Poker room revenue increased 30.2% for the six months ended June 30, 2001 compared to the same period last year. Casino operating expenses amounted to 39.4% of casino revenues for the six months ended June 30, 2001, compared to 41.4% for the same period in 2000, primarily due to successful efforts to manage variable expenses. -10- Food and beverage revenues totaled $15.6 million for the six months ended June 30, 2001, an increase of 10.2% from the $14.2 million for the six months ended June 30, 2000, due primarily to an increase in average revenue per cover. Food and beverage operating expenses amounted to 57.0% of food and beverage revenues during the 2001 six month period, compared to 62.3% for the same period in 2000, which was primarily due to a reduction in average food cost of sales and our overall successful efforts to manage variable expenses. Hotel revenues for the first six months of 2001 increased 3.4% to $9.1 million, up from $8.8 million for the first six months of 2000, primarily due to an increase in the average daily room rate. While the Atlantis experienced a slight decrease in the occupancy rate during the 2001 six month period of 91.0%, compared to 91.6% for the same period in 2000, the ADR increased to $51.69 for the six month period in 2001, from $51.23 for the same period in 2000. Hotel operating expenses in the first six months of 2001 were 37.3% of hotel revenues, compared to 36.8% for the same period in 2000. This slight increase in operating expenses as a percentage of hotel revenues resulted from increased payroll and operating costs and additional amenities for the expanded hotel. Other revenues were $1.6 million for the six months ended June 30, 2001, a decrease of 4.7% from $1.7 million in the same period in 2000, reflecting a non-recurring gain in the second quarter of 2000. Other expenses as a percentage of revenue remained fairly constant at 39.1% and 38.9% for the six month periods ended June 30, 2001 and 2000, respectively. Selling, general and administrative expenses increased 10.9% to $13.3 million in the first six months of 2001, compared to $12.0 million in the first six months of 2000, primarily as a result of increased marketing expenditures. As a percentage of net revenue, SG&A expenses increased only slightly to 25.9% in the 2001 six month period from 25.3% in the same period in 2000. Interest expense for the first six months of 2001 totaled $4.4 million, an increase of 4.0%, compared to $4.2 million for the same period one year earlier. The increase in interest expense is due to the accrual of interest payable to the Company's three largest stockholders for their personal guarantee of all bank debt of the Company. Effective January 1, 2001 the Company is compensating the guarantors at the rate of 2% of annual outstanding bank debt per annum until the guarantees are cancelled or the notes are paid off. OTHER FACTORS AFFECTING CURRENT AND FUTURE RESULTS The constitutional amendment approved by California voters in 1999 allowing the expansion of Indian casinos in California will have an impact on casino revenues in Nevada in general, and many analysts have predicted the impact will be more significant on the Reno-Lake Tahoe market. The extent of this impact is difficult to predict, but the Company believes that the impact on the Company versus its Reno competition will be mitigated to an extent due to the Atlantis' emphasis on Reno area residents as a significant base of its business and its proximity to the expanded convention center. However, if other Reno area casinos suffer business losses due to increased pressure from California Indian casinos, they may intensify their marketing efforts to Reno area residents as well. -11- The Company also believes that unlimited land-based casino gaming in or near any major metropolitan area in the Atlantis' key marketing areas, such as San Francisco or Sacramento, could have a material adverse effect on its business. LIQUIDITY AND CAPITAL RESOURCES For the six months ended June 30, 2001, net cash provided by operating activities totaled $6.1 million. Net cash used in investing activities for the same period totaled $1.1 million, which consisted primarily of acquisitions of property and equipment at the Atlantis. Net cash used in financing activities totaled $4.5 million as the Company used funds to reduce long-term debt. As a result, at June 30, 2001, the Company had cash of $7.3 million, compared to $6.8 million at December 31, 2000. The Company has an $80 million construction and reducing revolving credit facility with a group of banks (the "Credit Facility"). The principal terms of the Credit Facility are summarized in the Company's Annual Report on Form 10-K for the year ended December 31, 2000. At June 30, 2001, the outstanding balance of the Credit Facility was $72.1 million. The Company believes that its existing cash balances, cash flow from operations, and availability of equipment financing, if necessary, will provide the Company with sufficient resources to fund its operations, meet its existing debt obligations, and fulfill its capital expenditure requirements; however, the Company's operations are subject to financial, economic, competitive, regulatory, and other factors, many of which are beyond its control. If the Company is unable to generate sufficient cash flow, it could be required to adopt one or more alternatives, such as reducing, delaying, or eliminating planned capital expenditures, selling assets, restructuring debt, or obtaining additional equity capital. PART II. OTHER INFORMATION ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS On June 6, 2001, the Company conducted its annual meeting of stockholders in Reno, Nevada, in which the only action taken was the election of one new director and the re-election of three directors whose term expired in 2001. The results were as follows: Votes Cast -------------------- Against or Name of Director Elected For Withheld ------------------------ -------------------- Bob Farahi 9,349,688 14,750 Ben Farahi 9,349,688 14,750 Ronald R. Zideck 9,349,688 14,750 Stephen L. Cavallaro 9,349,688 14,750 On June 20, 2001, Mr. Cavallaro resigned from the Board of Directors after accepting a senior executive position with another gaming company. On July 6, 2001, Charles ("Chuck") Scharer was appointed by the Board to fill the vacancy created by Mr. Cavallaro's resignation. -12- ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K (a) Exhibits Exhibit No. Description ----------- ----------- None (b) Reports on Form 8-K None SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. MONARCH CASINO & RESORT, INC. (Registrant) <TABLE> <S> <C> Date: August 13, 2001 By: /s/ BEN FARAHI ------------------------------------ Ben Farahi, Co-Chairman of the Board, Secretary, Treasurer and Chief Financial Officer(Principal Financial Officer and Duly Authorized Officer) </TABLE> EXHIBIT INDEX <TABLE> <S> <C> <C> Exhibit No. Description Page No. - ----------- ----------- -------- None </TABLE> -13-