RENO, Nev., Feb. 7 /PRNewswire/ — The Sands Regent (Nasdaq: SNDS) today
announced improved operating results for its second quarter ended
December 31, 2000.
For the six months ended December 31, 2000, the Company reported a
9% increase in revenues to $18.2 million, versus $17.0 million in the six
months ended December 31, 1999. For the same comparable periods, income from
operations more than doubled from $642,000 to $1.3 million. Net income for
the first half of fiscal 2001 also more than doubled to $612,000, or $0.13 per
share (diluted), compared to $293,000, or $0.06 per share (diluted), in the
first half of fiscal 2000.
The Company also reported improved EBITDA from $2.2 million in the six
months ended December 31, 1999 to $3.0 million in the six months ended
December 31, 2000. EBITDA is defined as earnings before depreciation and
amortization, interest expense, income taxes and any gain or loss on the
disposal of property.
For the second quarter ended December 31, 2000, a seasonally slow period,
the net loss was reduced by over half to a $145,000 net loss, or $(0.03) per
share, compared to a net loss of $318,000 or $(0.07) loss per share for the
prior year's second quarter. The Company also reduced its operating loss to
$74,000 on revenues of $8.1 million in the second quarter, versus a loss from
operations of $305,000 on revenues of $7.8 million in the same period last
year. Further, EBITDA also improved to $784,000 in the December 2000 quarter
from $493,000 in the December 1999 quarter, a 59% increase.
Ferenc B. Szony, President and CEO of The Sands Regent, commented, We
continue to be pleased with the sustained improvement in our revenues and
profitability. This is the sixth quarter in a row in which we have
successfully improved over the comparable prior year quarter.
Mr. Szony continued, The local-customer segment of our business continues
to grow as a result of the expanded amenities we offer to our customers
including the area's best bingo parlor, easy-access self-parking, expanded and
improved gaming offerings and the recently added 'Original Mels' Diner, a
fifties-themed restaurant nationally known from the film, 'American Graffiti.'
The 'Original Mels' has become a favorite with both hotel guests and local
customers since its successful opening in October 2000.
Going forward, we will continue to utilize multi-faceted advertising,
marketing and promotional programs designed to create excitement and enhance
value for both repeat and new visitors. We believe we can continue to improve
our market share and will proceed with our plans to enhance our competitive
position. We presently have a room renovation project underway which will
result in all of our guest rooms being renovated within the next year.
While we continue to improve our Reno operation, we are also pursuing
expansion opportunities by acquiring additional gaming facilities. 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. Most of 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, 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.
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.
( – Financial Table Follows – )
THE SANDS REGENT
(In Thousands except per share data)
Three Months Ended Six Months Ended
December 31, December 31,
2000 1999 2000 1999
Revenues $8,075 $7,766 $18,211 $16,950
Income (Loss) from
Operation (74) (305) 1,318 642
Net Income (Loss) (145) (318) 612 293
Net Income (Loss) per
Basic (.03) (.07) .14 .07
Diluted (.03) (.07) .13 .06
EBITDA (a) 784 493 3,029 2,235
Cash and Cash Equivalents,
at period end 9,186 5,487 9,186 5,487
Working Capital, at
period end 6,966 5,345 6,966 5,345
at period end 31,950 30,138 31,950 30,138
Weighted Number of
Diluted 4,498,722 4,496,179 4,743,672 4,527,202
(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 principles
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.
For Further Information, please contact David Wood, CFO of The Sands
Regent, 775-348-2210, Fax, 775-348-6241; or Sean Collins, Vice President or
William Coffin, CEO, both of Coffin Communications Group, 818-789-0100, Fax,
818-789-1152, for The Sands Regent.
SOURCE The Sands Regent