The Sands Regent Reports First Quarter Fiscal 2007 Financial Results
November 15 2006 - 8:00AM
PR Newswire (US)
* First quarter revenue increases 7% from $24.1 million to $25.9
million RENO, Nev., Nov. 15 /PRNewswire-FirstCall/ -- The Sands
Regent (NASDAQ:SNDS) today announced financial results for its
first quarter of fiscal year 2007, ended September 30, 2006. For
the first quarter ended September 30, 2006, the Company reported
net revenues of $25.9 million, a 7% increase over $24.1 million for
the quarter ended September 30, 2005. Net revenues for the first
quarter fiscal 2007 included $1.2 million in revenue from Dayton
Depot, which was acquired on September 1, 2005. The first quarter
fiscal 2006 included $0.4 million in revenue from Dayton Depot. For
the first quarter ended September 30, 2006, net income was $1.1
million, or $0.15 per basic share, $0.14 diluted as compared to net
income of $1.8 million, or $0.26 per share basic, $0.24 diluted for
the first quarter ended September 30, 2005. Decreases in net income
were attributable to increased marketing expenditures at Rail City
to offset the impact of construction disruption, decreased
profitability at Dayton Depot resulting from increased competition
in that market and increased corporate expense for merger-related
costs. The Company's income from operations declined 25% year over
year, from $3.2 million in the first quarter of fiscal 2006 to $2.4
million in the first quarter of fiscal 2007. EBITDAR decreased 10%
year over year, from $5.0 million in the first quarter fiscal 2006
to $4.5 million in the first quarter fiscal 2007. Ferenc B. Szony,
President and CEO of The Sands Regent, commented, "While the first
quarter of fiscal 2007 reflected decreased profitability from Rail
City, we believe that the long-term benefit of an expanded and
improved Rail City will prove to be beneficial. We continue to work
toward completion of the merger with Herbst Gaming of Las Vegas and
are awaiting final regulatory approval, which is expected by
year-end. Closing of the transaction is expected in early January."
About The Sands Regent The Sands Regent owns and operates Rail City
Casino in Sparks, Nevada, Sands Regency Casino and Hotel in
downtown Reno, Nevada, Gold Ranch Casino and RV Resort in Verdi,
Nevada, and the Depot Casino and Red Hawk Sports Bar in Dayton,
Nevada. 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). 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. 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. The
Depot Casino and the Red Hawk Sports Bar, acquired on September 1,
2005, are located in Dayton, Nevada. The Depot Casino has
approximately 16,000 square feet of restaurant and casino space
with 250 slots, a restaurant and two bars. The Red Hawk Sports Bar,
across the street from Depot Casino, has 33 slots and a bar. This
press release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995.
You can identify these statements by the fact that they do not
relate strictly to historical or current facts. These statements
contain words such as "may," "will," "project," "might," "expect,"
"believe," "anticipate," "intend," "could," "would," "estimate,"
"continue," or "pursue," or the negative or other variations
thereof or comparable terminology. In particular, they include
statements relating to, among other things, future actions,
strategies, future performance and future financial results of the
Company. 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, 2006,
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. ISIN
US8000911003 Contact: Ferenc B. Szony, President and Chief
Executive Officer The Sands Regent (775) 348-2210 or Sean Collins,
Senior Partner CCG Investor Relations (310) 477-9800 (Financial
table follows) THE SANDS REGENT FINANCIAL HIGHLIGHTS (unaudited)
(in thousands except per-share data) Three months ended September
30, 2006 2005 Net revenues $25,864 $24,132 Income from operations
2,390 3,185 Net income 1,068 1,824 Reconciliation of net income to
EBITDAR Net income 1,068 1,824 Interest expense, net of capitalized
interest 662 428 Income tax provision 660 933 Loss (gain) on
disposition of property and equipment 10 (9) Rent and management
fees 209 199 Depreciation and amortization 1,935 1,650 EBITDAR (1)
$4,544 $5,025 Earnings per share Basic 0.15 0.26 Diluted 0.14 0.24
(1) EBITDAR includes earnings before depreciation and amortization,
interest expense, income taxes, rent, and any gain or (loss) on the
sale or disposition of property of 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. 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, Senior Partner
of CCG Investor Relations, +1-310-477-9800, for The Sands Regent
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