The Sands
Regent Reports Q4, Yearly Results
The Sands Regent 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."
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