PRNewswire-FirstCall RENO, Nev. Nov. 12 :
The Sands Regent today announced financial results for the first quarter
of its fiscal year 2004.
For the first quarter ended September 30, 2003, the Company reported
revenues of $15.9 million compared to $15.7 million for the first quarter
ended September 30, 2002. Management attributed the essentially flat
results to: 1) the effects of the railroad trench project (ReTRAC)
adjacent to its Sands Regency property in downtown Reno, which impaired
access and parking for local patrons; 2) softness in the Reno-area gaming
market due in part to competition from new Native American facilities in
Northern California; 3) costs associated with the Sands Regency`s
advertising and direct mail campaign to maintain marketing presence in the
face of the new competition; 4) a modest decrease in the performance of
its Gold Ranch property, due largely to more liberal than expected slot
payouts during the period.
The ReTRAC project involves creating a trench for a section of the railway
running through downtown Reno, which is currently at ground level and runs
adjacent to the Sands Regency property line. ReTRAC will ultimately make
access to the Sands Regency easier, but currently is affecting the
availability of on-site parking during peak periods.
The Company`s income from operations decreased to $1.7 million for the
first quarter of fiscal 2004 from $2.4 million for the corresponding
period of fiscal 2003. Quarterly EBITDAR also decreased, to $2.8 million
from $3.5 million for the prior-year quarter.
For the quarter ended September 30, 2003, the Company reported net income
of $1.1 million, or $0.22 basic, $0.20 diluted, versus $1.3 million, or
$0.27 per basic share, $0.26 diluted in the year-ago quarter.
Ferenc B. Szony, President and CEO of The Sands Regent, commented, “The
new Thunder Valley Casino has generated considerable trial visits by Reno
bound travelers; however, we do not expect the novelty to last. When
structural improvements to the downtown Reno area are completed, including
ReTRAC, the Downtown Events Center and the kayaking park, our Sands
Regency property will be well located to benefit from them. In the mean
time, we will continue to aggressively market both our Sands Regency and
Gold Ranch properties while providing the better overall value, selection,
and customer service, appealing to locals and tourists alike.”
The Company will hold a conference call today, Wednesday, November 12, at
10:00 a.m. PST to discuss quarterly results.
To participate in the conference call, please dial the following number
five to ten minutes prior to the scheduled conference call time: (800)
399-7496. International callers should dial: (706) 634-6508. There is no
pass code required for this call.
If you are unable to participate in the call at this time, a replay will
be available on Wednesday, November 12 at 12:00 noon PST, through
Wednesday, November 19 at midnight PST; call (800) 642-1687 and enter the
conference ID number 3841409.
The Sands Regent owns and operates the Sands Regency Casino and Hotel in
downtown Reno, Nevada and Gold Ranch Casino and RV Resort in Verdi,
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 Gold Ranch Casino and RV Resort is located in Verdi, Nevada, twelve
miles west of Reno. Gold Ranch offers approximately 275 slot machines in
an 8,000 square foot casino, two restaurants, two bars, a 105-space RV
park, a California lottery station, an ARCO gas station and a convenience
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, including the potential impact of future
gaming regulatory decisions, general and regional economic conditions,
competition in the Reno area and from California Native American casino
operations, the Company`s possible need for outside financing to pursue
its growth plans, and other risk factors detailed from time-to-time in The
Sands Regent`s periodic reports and registration statements filed with the
Securities and Exchange Commission. Such risks could cause actual results
to differ materially from those projected or implied in the