* Fiscal-year income from operations increases 60% from $4.9
million to $7.8 million RENO, Nev., Sept. 1 /PRNewswire-FirstCall/
-- The Sands Regent (NASDAQ:SNDS) today announced financial results
for its fiscal year 2005 and fourth quarter ended June 30, 2005.
Separately, the Company also announced completion of the
acquisition of Dayton Depot and Red Hawk Sports Bar in Dayton, NV.
Fiscal year 2005 net income was $3.8 million, or $0.59 per basic
share, $0.55 diluted as compared to net income, including a
one-time gain, of $6.9 million, or $1.32 per share basic, $1.24
diluted for fiscal year 2004. Prior-year results included a
one-time, non-operating gain of $4.4 million in connection with the
sale of the Copa Casino. The Company's income from operations
improved 60% year over year, from $4.9 million in fiscal 2004 to
$7.8 million in fiscal 2005. For fiscal year 2005, the Company
reported net revenues of $81.1 million, a 30% increase over $62.3
million in fiscal 2004 net revenues, primarily reflecting
contributions from Rail City Casino, which was acquired in May,
2004. EBITDAR, which excludes one-time gains, increased 47% year
over year, from $10.1 million in fiscal 2004 to $14.8 million in
fiscal 2005. For the fourth quarter of 2005, ended June 30, the
Company's net income totaled $1.4 million, or $0.20 per basic
share, $0.19 diluted, compared to net income of $1.4 million or
$0.26 per basic share, $0.24 diluted in the year-ago quarter.
Quarterly income from operations was $2.6 million, as compared to
income from operations of $2.9 million in the fourth quarter of
fiscal 2004. Quarterly net revenues were $21.2 million, a 3%
improvement over fourth- quarter 2004 net revenues of $20.5
million. Strong results in the locals- oriented market segment were
offset by weakness in the tourism-related market segment,
principally resulting from the lack of a major bowling event in
downtown Reno in the 2005 fourth quarter. Years without a major
Reno bowling event occur once every three years. Business levels in
both market segments were at anticipated levels in the latter part
of the fourth quarter. Quarterly EBITDAR decreased year over year,
from $4.6 million for the fourth quarter of 2004 to $4.4 million
for the 2005 quarter. Ferenc B. Szony, President and CEO of The
Sands Regent, commented, "Once again, we have demonstrated that our
strategy to diversify our mix of local and tourism-related business
has been successful. Our acquisition of the Dayton Depot and Red
Hawk Sports Bar, which we completed and announced this morning,
reinforces that positioning. Dayton is the largest town in Lyon
County, which grew 16.3% between 2000 and 2003, making it Nevada's
fastest- growing county and one of the fastest-growing counties in
the United States. "We look forward to continued success in 2006 as
we pursue a major expansion at Rail City Casino, maximize the
benefits of our recently installed slot management and
ticket-in/ticket-out capabilities at Gold Ranch, bring our casino
renovation at the Sands Regency to completion and integrate the
newly acquired Dayton properties into our portfolio." Mr. Szony
concluded, "Consistent with our past practices, we have continued
to pay down long-term debt, which stood at $36.9 million at the
beginning of the fiscal year, to $19.9 million as of June 30, 2005.
This demonstrates our success in execution of our growth strategy
and provides us the flexibility to respond to future growth
opportunities as they arise." Management of The Sands Regent will
host a conference call to discuss its year-end and fourth-quarter
financial results today, Thursday, September 1 at 1:30 p.m. PDT. To
participate in the conference call, please dial the following
number five to ten minutes prior to the scheduled conference call
time: (800) 399-7496. International callers should call (706)
634-6508. There is no pass code required for this call. If you are
unable to participate in the call at that time, a replay will be
available on Thursday, September 1 at 3:00 p.m. PDT through
Thursday, September 8 at 9:00 p.m. PDT; call (800) 642-1687 and
enter the conference ID number 8869124. International callers
should call (706) 645-9291. About The Sands Regent The Sands Regent
owns and operates the Sands Regency Casino and Hotel in downtown
Reno, Nevada, Gold Ranch Casino and RV Resort in Verdi, Nevada,
Rail City Casino in Sparks, Nevada and the Depot Casino and the Red
Hawk Sports Bar in Dayton, Nevada. The Sands Regency is an 833-room
hotel and casino with 29,000 square feet of gaming space offering
table games, a sports book, poker room, keno, bingo and slot
machines. In addition to the amenities and on-site brand name
restaurants, the Company's property also includes a 12,000 square
foot convention and meeting center which seats close to 1,000
people. For further information, visit
http://www.sandsregency.com/. The Gold Ranch Casino and RV Resort
is located in Verdi, Nevada, twelve miles west of Reno. Gold Ranch
offers slot machines in an 8,000 square foot casino, a sports book,
two restaurants, a 105-space RV park, a California lottery station,
an ARCO gas station and a convenience store. Web site:
http://www.goldranchrvcasino.com/. Rail City Casino, located in
Sparks, Nevada, has approximately 16,600 square feet of gaming
space housing slot machines, table games, keno, a sports book, and
the City Cafe family-style restaurant. Located near Victorian
Square at 2121 Victorian Avenue in Sparks, it is the first casino a
motorist encounters when exiting Interstate 80 at the Rock
Boulevard exit (Exit 16). Web site: http://www.railcity.com/. On
September 1, 2005, The Sands Regent completed the acquisition of
two privately held casino properties in Dayton, NV, the Depot
Casino and the Red Hawk Sports Bar. The Depot Casino has
approximately 16,000 square feet of restaurant and casino space
with 250 slots, two restaurants and two bars. The Red Hawk Sports
Bar, across the street from Depot Casino, has 33 slots, a
convenience store and a bar. This press release contains
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. The forward-looking
statements contained in this release are based on current
expectations and entail various risks and uncertainties that could
cause actual results to differ materially from those suggested in
the forward-looking statements. Such risks and uncertainties
include, among others, the future performance of the Company's
management team, general economic financial and business
conditions, overall conditions in the gaming and entertainment
industries, our ability to successfully integrate the operations of
casinos that we acquire and realize the expected benefits of these
acquisitions, and other factors discussed in our Annual Report on
Form 10-K for the year ended June 30, 2004, subsequent Forms 10-Q
and other filings with the Securities and Exchange Commission. The
Sands is providing this information as of the date of this release
and does not undertake any obligation to update any forward-looking
statements contained in this document as a result of new
information, future events or other wise. Contact: Ferenc B. Szony,
President and Chief Executive Officer The Sands Regent (775)
348-2210 or Sean Collins, Partner CCG Investor Relations (310)
231-8600 THE SANDS REGENT CONSOLIDATED STATEMENTS OF INCOME THREE
MONTHS TWELVE MONTHS ENDED JUNE 30, ENDED JUNE 30, (Dollars in
thousands 2005 2004 2005 2004 except per share information)
Operating revenues Gaming $12,433 $11,587 $48,834 $31,796 Lodging
2,376 2,746 8,931 9,548 Food and beverage 2,879 2,703 11,557 7,537
Fuel and convenience store 4,826 4,510 17,171 16,245 Other 515 537
1,903 1,731 Gross revenues 23,029 22,083 88,396 66,857 Promotional
allowances 1,845 1,572 7,264 4,509 Net revenues 21,184 20,511
81,132 62,348 Operating expenses Gaming 5,127 4,559 20,202 13,669
Lodging 952 1,087 3,891 4,111 Food and beverage 1,935 1,722 7,538
4,934 Fuel and convenience store 4,713 4,337 16,425 15,411 Other
147 170 607 598 Maintenance and utilities 1,374 1,225 5,658 4,353
General and administrative 2,776 3,035 12,742 9,941 Depreciation
and amortization 1,610 1,526 6,221 4,427 18,634 17,661 73,284
57,444 Income from operations 2,550 2,850 7,848 4,904 Other income
(expense) Interest expense (395) (660) (2,238) (1,158) Insurance
settlement -- -- 200 -- Loss on abandonment of new projects -- --
(11) (48) Loss on disposition of property and equipment (9) (12)
(63) (47) Collections on previously reserved note receivable -- --
-- 4,393 (404) (672) (2,112) 3,140 Income before income taxes 2,146
2,178 5,736 8,044 Income tax provision (734) (734) (1,927) (1,154)
Net income $1,412 $1,444 $3,809 $6,890 Net income per share Basic
$0.20 $0.26 $0.59 $1.32 Diluted $0.19 $0.24 $0.55 $1.24 Weighted
average of shares outstanding Basic 6,973,766 5,646,555 6,470,633
5,206,321 Diluted 7,424,448 6,060,792 6,956,796 5,558,834 THE SANDS
REGENT EARNINGS before INTEREST, TAXES, DEPRECIATION, AMORTIZATION
and RENT (EBITDAR),and RECONCILIATION of NET INCOME to EBITDAR
(unaudited) THREE MONTHS TWELVE MONTHS ENDED JUNE 30, ENDED JUNE
30, (Dollars in thousands) 2005 2004 2005 2004 EBITDAR (3) 4,359
4,567 14,841 10,098 Reconciliation of Net Income to EBITDAR Net
income 1,412 1,444 3,809 6,890 Interest expense 395 660 2,238 1,158
Income tax provision 734 734 1,927 1,154 Loss on disposal of
property and equipment abandonment of new projects 9 12 74 95
Collections on previously reserved note receivable (1) -- -- --
(4,393) Non-recurring insurance settlement (2) -- -- (200) -- Rent
and management fees 199 191 772 767 Depreciation and amortization
1,610 1,526 6,221 4,427 EBITDAR (3) 4,359 4,567 14,841 10,098 (1)
In the year ended June 30, 2004, we recognized a $4.4 million gain
on a promissory note held by us in connection with a December 1998
sale of our interest in the Copa Casino in Gulfport, Mississippi.
(2) In June 2003, we realized a loss of $547,000, which stemmed
from a personal injury lawsuit filed against us. The Company had a
personal injury claim filed against it, from which we were insured
against loss, subject to a deductible. However, subsequent to the
incident which under lied the claim, we were informed that our
insurance carrier had become insolvent and unable to pay any
claims. The Company sought relief from its insurance broker and
received partial recovery of our loss in October 2004. (3) EBITDAR
includes earnings before depreciation and amortization, interest
expense, income taxes, rent, and any gain (loss) on the sale or
disposal of property or subsidiaries. EBITDAR is not a calculation
determined pursuant to generally accepted accounting principles and
is not an alternative to operating income or net income, and is not
a measure of liquidity. Since not all companies calculate this
measure in the same manner, the Company's EBITDAR measure may not
be comparable to similarly titled measures reported by other
companies. The Company believes that this disclosure enhances the
understanding of the financial performance of a company with
substantial interest expense, depreciation and amortization. Prior
to the Gold Ranch acquisition, the Company reported "EBITDA" data.
However, Gold Ranch has a substantial real property rent component
and the Company believes EBITDAR provides a more complete depiction
of the Company's financial position and performance. Moreover, if
the option of the Company to purchase the Gold Ranch real property
is exercised, which can happen at the Company's sole discretion,
the rental expense would be available for other uses by the
Company. DATASOURCE: The Sands Regent CONTACT: Ferenc B. Szony,
President and Chief Executive Officer of The Sands Regent,
+1-775-348-2210; or Sean Collins, Partner, CCG Investor Relations,
+1-310-231-8600, for The Sands Regent Web site:
http://www.railcity.com/ Web site:
http://www.goldranchrvcasino.com/ Web site:
http://www.sandsregency.com/
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