Press Release: The Sands Regent
January 7, 2002
RENO, NV -- The Sands Regent (Nasdaq: SNDS) held a conference call on Thursday, January 3, 2002 to discuss its
definitive agreement to acquire Gold Ranch Casino and RV Resort near Reno and its strategic plans for cross-promotion
between its flagship downtown Reno Sands Regency Casino Hotel and Gold Ranch.
Details of the Company's expansion strategy presented by President and CEO Ferenc Szony and CFO David Wood included
discussion of the Company's financing plans. The Sands Regent is currently seeking approximately $17 million in
financing to cover the cash portion of the Gold Ranch acquisition as well as using the majority of that funding
to reduce the interest rate on existing indebtedness.
Regarding the Gold Ranch acquisition, the Sands Regent executives expressed optimism that the required Nevada Gaming
Control Board approval process for the acquisition can be granted within the next few months, since both the seller
and purchaser involved in the transaction currently have valid Nevada gaming licenses. Gold Ranch operates with
a non-restricted gaming license, which allows for expanded gaming of all types.
The consideration to be paid for the Gold Ranch Casino and RV Resort includes cash, common stock of The Sands Regent
and new and assumed debt. The final price will be based on the property's trailing twelve-month EBITDAR (earnings
before interest, taxes, depreciation, amortization and rent) preceding closing at a capitalization rate estimated
to be approximately 20%.
Gold Ranch is visible from heavily traveled Interstate 80 twelve miles west of Reno and two miles west of Verdi,
Nevada. It is the first casino gaming attraction that travelers encounter on Interstate 80 when entering Nevada
from California, and the last when leaving.
The Gold Ranch property straddles the Nevada/California border, and the Casino and RV Resort includes a California
lottery outlet. It is the closest and most convenient California lottery outlet to the Reno metropolitan area and
also draws customers from smaller Northern California communities. It is consistently in the top three California
lottery outlets and is Number One in Northern California.
The Company continues to plan further expansion of its operations in Northern Nevada, with a strategy designed
to draw both out-of-area visitors and local gaming customers.
Conference replay available
A replay of the January 3rd conference call will be available for thirty days. For the replay, please dial 800-642-1687
and enter the confirmation number 2820518.
About The Sands Regent
The Sands Regent presently owns and operates the Sands Regency Casino Hotel in downtown Reno, Nevada. The Sands
Regency is an 850-room hotel and casino with 29,000 square feet of gaming space offering table games, keno, bingo
and slot machines. In addition to complete 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 Company
has entered into a definitive agreement to acquire Gold Ranch Casino & RV Resort, located on Interstate 80
twelve miles west of Reno.
Statements contained in this release, which are not historical facts, are ``forward-looking'' statements as contemplated
by the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to risks and
uncertainties, which could cause actual results to differ materially from those projected or implied in the forward-looking
statements.
For further information, please contact: David Wood, CFO of The Sands Regent, +1-775-348-2210, or Fax, +1-775-348-6241;
or William Coffin, CEO, or Sean Collins, Vice President, both of Coffin Communications Group, +1-818-789-0100,
or Fax, +1-818-789-1152, for The Sands Regent.
SOURCE: The Sands Regent