Press Release: The Sands Regent
September 6, 2001
RENO, NV -- The Sands Regent (Nasdaq: SNDS) yesterday announced earnings for its fiscal year 2001 and the fourth
quarter ended June 30, 2001.
Among other highlights, the Company reported that EBITDA improved from $6.1 million in fiscal 2000 to $6.3 million
in fiscal 2001.
For fiscal 2001, the Company reported net income of $1.2 million, or $0.27 per diluted share, as compared to net
income of $1.5 million, or $0.33 per diluted share for the year ended June 30, 2000. Excluding losses on the disposal
of property and equipment, net of income taxes, net income would have been $1.5 million, or $0.31 per diluted share
in fiscal 2001, as compared to $1.4 million, or $0.31 per diluted share in fiscal 2000.
The Company's income from operations increased from $2.88 million in fiscal 2000 to $2.95 million in fiscal 2001.
Revenues declined slightly from $36.2 million in fiscal 2000 to $35.8 million in fiscal 2001. Factoring out losses
on disposal of property and equipment in connection with the 24-hour restaurant, which was closed in October 2000,
revenues increased by approximately $1.3 million, or nearly 4%, in fiscal 2001.
For the fourth quarter ended June 2001, income from operations was $1.6 million on revenues of $9.8 million, as
compared to income from operations of $1.8 million on revenues of $10.8 million in the fourth quarter of fiscal
2000.
In the fiscal 2001 fourth quarter, the Company reported net income of $711,000, or $0.15 per diluted share versus
$1.1 million or $0.23 per diluted share in the year-ago quarter. Excluding gains (losses), net of income taxes,
net income and earnings per diluted share would have been approximately the same in both fourth quarters at $1.0
million and $0.21, respectively.
Ferenc B. Szony, President and CEO of The Sands Regent commented, ``All in all, we are pleased with our operating
performance in fiscal 2001, which is our best year since fiscal 1996 with EBITDA at $6.3 million.
``Following our strategy over the last several years, we have continued to improve and update our facilities. We
started a major room renovation project in December 2000 which was completed in April 2001. Approximately two thirds
of our rooms were remodeled. Unfortunately, one of the drawbacks of such a remodeling was a temporary reduction
of our room inventory, which adversely affected our revenue, especially in March and April 2001.
``We also added, in October 2000, an 'Original Mels' diner, a 50's-themed restaurant nationally known from the
film American Graffiti and a popular eatery in many of our key markets in Northern California. Operated by a third
party, the addition of this restaurant also allowed us to close our 24-hour coffee shop restaurant, which had been
operating at a loss.''
Mr. Szony continued, ``Unfortunately, like other Nevada destinations, we saw our drive-up trade slow down as our
California customers dealt with a softening economy and soaring energy costs, especially in the third and fourth
quarters. However, our local business component allowed us to fare better than many of our competitors.
``Our advertising and marketing approach continues to be multi-faceted and designed to both attract new customers
and provide value for repeat visitors. We continue to utilize many different marketing programs so as to create
excitement and enhance the overall experience of our guests. In continuity with this, and in order to improve long-term
customer loyalty and increase our share of local-area residents, we have intentionally loosened our slot machines
to increase the payback to our customers. We believe that this will benefit us in the long term by increasing overall
slot machine play.
``While we continue to improve our Reno operation, we are also continuing to pursue expansion opportunities by
acquiring additional gaming facilities. Our balance sheet remains strong. With over $10 million in cash and cash
equivalents on our books, our goal for the next year is to acquire one or two gaming properties located in areas
close enough to our present facility to allow for some synergies of operations. Our present efforts in reviewing
expansion opportunities have been concentrated in Nevada and, particularly, Northern Nevada.''
The Sands Regent owns and operates the Sands Regency Casino and 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 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.
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, fax, +1-775-348-6241;
or Sean Collins, Vice President, or William Coffin, CEO of Coffin Communications Group, +1-818-789-0100, fax, +1-818-789-1152,
for The Sands Regent.
THE SANDS REGENT
FINANCIAL HIGHLIGHTS
(In Thousands except per share data)
Three Months Ended Year Ended
June 30, June 30,
2001 2000 2001 2000
Consolidated Financial Report
Revenues $9,778 $10,802 $35,763 $36,248
Income from Operations 1,625 1,842 2,946 2,881
Net Income 711 1,055 1,232 1,491
Net Income per share
Basic .16 .23 .27 .33
Diluted .15 .23 .27 .33
EBITDA (a) 2,467 2,669 6,346 6,120
Cash and Cash Equivalents,
at period end 10,150 9,186 10,150 9,186
Working Capital,
at period end 8,385 7,659 8,385 7,659
Stockholders' Equity,
at period end 32,619 31,337 32,619 31,337
Weighted Number of Shares
Outstanding: Diluted 4,750,919 4,565,490 4,751,774 4,568,007
a) Earnings before depreciation and amortization, interest expense, income
taxes and any gain (loss) on the disposal of property. Not determined
in accordance with generally accepted accounting principals and, since
not all companies calculate EBITDA in the same manner, the Company's
EBITDA measure may not be comparable to similarly titled measures
reported by other companies.
SOURCE: The Sands Regent