Monarch Casino & Resort, Inc. (NASDAQ:MCRI), a Nevada-based company in the hotels and motels industry, has announced a change in its independent registered public accounting firm. In a recent SEC filing, the company disclosed that its Board of Directors, upon the recommendation of the Audit Committee, has approved the engagement of Deloitte & Touche LLP ("Deloitte") to serve as the new auditor for the fiscal year ending December 31, 2024.
The appointment of Deloitte follows the dismissal of Ernst & Young LLP ("EY") effective July 11, 2024. The company's relationship with EY concluded without any reported disagreements on accounting principles or practices, financial statement disclosure, or auditing scope or procedure during the fiscal years 2023 and 2022, nor the subsequent interim period through the date of the report.
The audit reports provided by EY for the fiscal years ended December 31, 2023, and 2022, contained no adverse opinion or disclaimer of opinion and were not qualified or modified regarding uncertainty, audit scope, or accounting principles. This also applies to the reports on the effectiveness of internal control over financial reporting.
Monarch Casino has furnished EY with the disclosures made in this SEC filing and has requested that EY furnish a letter to the SEC stating whether it agrees with the statements made. A copy of this letter from EY, dated today, has been included as an exhibit in the filing.
The company has not consulted with Deloitte on any accounting principles or auditing matters in the fiscal years ending December 31, 2023, and 2022, or in the subsequent interim period up to the filing.
The change in the company's certifying accountant is part of the corporate governance process, ensuring the integrity and thoroughness of the company's financial reporting. This move is a standard practice in business operations and does not necessarily indicate any issues with the company's previous auditor.
This announcement is based on the information provided in the Current Report on Form 8-K filed by Monarch Casino & Resort, Inc. with the Securities and Exchange Commission.
InvestingPro Insights
In light of Monarch Casino & Resort, Inc.'s (NASDAQ:MCRI) recent auditor change, stakeholders may find additional context in the company's financial health and performance metrics. According to real-time data from InvestingPro, Monarch Casino & Resort has a market capitalization of approximately $1.3 billion and a P/E ratio of 16.14, which adjusts to 14.78 when looking at the last twelve months as of Q1 2024. These figures suggest a stable valuation relative to earnings. Moreover, the company has shown a gross profit margin of 66.3% over the last twelve months, indicating a strong ability to retain revenue after the cost of goods sold is accounted for.
InvestingPro Tips also highlight that Monarch Casino & Resort holds more cash than debt on its balance sheet, which is a positive indicator of financial stability. Additionally, the company has been profitable over the last twelve months and analysts predict it will remain profitable this year. This is crucial information for investors considering the implications of the auditor change on the company’s financial oversight and reporting quality.
For those interested in a deeper dive into Monarch Casino & Resort's financials and performance, there are additional InvestingPro Tips available. Readers can access these on the InvestingPro platform and take advantage of the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription. There are 9 additional InvestingPro Tips that can offer further insights into MCRI's financial outlook.
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