* Fiscal-year revenue increases 14% from $81.1 million to $92.6
million RENO, Nev., Oct. 26 /PRNewswire-FirstCall/ -- The Sands
Regent (NASDAQ:SNDS) today announced financial results for its
fiscal year 2006 and fourth quarter ended June 30, 2006. For fiscal
year 2006, the Company reported net revenues of $92.6 million, a
14% increase over $81.1 million in fiscal 2005 net revenues,
partially reflecting $4.4 million in revenue from Dayton Depot,
which was acquired on September 1, 2005. Fiscal year 2006 net
income was $2.4 million, or $0.34 per basic share, $0.32 diluted as
compared to net income of $3.8 million, or $0.59 per share basic,
$0.55 diluted for fiscal year 2005. Decreases in net income were
primarily attributable to increased corporate expenses of $0.8
million for merger related expenses, $0.6 million in expenses
related to the adoption of a new accounting standard for equity
incentive plans and $0.7 million for increased legal and other
corporate office costs. The Company's income from operations
declined 18% year over year, from $7.8 million in fiscal 2005 to
$6.4 million in fiscal 2006. EBITDAR increased 3% year over year,
from $14.8 million in fiscal 2005 to $15.3 million in fiscal 2006.
For the fourth quarter of 2006, ended June 30, the Company's net
income totaled $23,000, or $0.00 per basic and diluted share,
compared to net income of $1.4 million or $0.20 per basic share,
$0.19 diluted in the year-ago quarter. Quarterly income from
operations was $1.0 million, as compared to income from operations
of $2.5 million in the fourth quarter of fiscal 2005. Quarterly net
revenues were $25.2 million, a 19% improvement over fourth quarter
2005 net revenues of $21.2 million. Quarterly EBITDAR decreased 19%
year over year, from $4.4 million for the fourth quarter of 2005 to
$3.5 million for the 2006 quarter. Ferenc B. Szony, President and
CEO of The Sands Regent, commented, "Fiscal 2006 was a landmark
year for The Sands Regent culminating in the agreement to merge
with Herbst Gaming, Inc. of Las Vegas. On September 1 our
shareholders approved the merger and we are awaiting final
regulatory approval which is expected by year end." 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 THE SANDS
REGENT FINANCIAL HIGHLIGHTS (Unaudited) (Dollars in thousands
except per share amounts) Three months ended Twelve months ended
June 30, June 30, 2006 2005 2006 2005 Net revenues $25,177 $21,184
$92,574 $81,132 Income from operations $1,049 $2,478 $6,382 $7,775
Net income $23 $1,434 $2,431 $3,831 Reconciliation of Income from
operations to Adjusted income from operations Income from
operations $1,049 $2,478 $6,382 $7,775 Loss on early termination of
land lease -- -- $419 -- Adjusted income from operations (1) $1,049
$2,478 $6,801 $7,775 Reconciliation of net income to EBITDAR Net
income $23 $1,434 $2,431 $3,831 Interest expense $684 $395 $2,314
$2,238 Income tax provision $408 $713 $1,637 $1,906 Loss on early
termination of land lease -- -- $419 -- Non-recurring insurance
settlement (2) -- -- $-- (200) Rent and management fees $209 $199
$808 $772 Loss on disposal of property $223 $9 $289 $73
Depreciation and amortization $1,972 $1,610 $7,368 $6,221 EBITDAR
(3) $3,519 $4,360 $15,266 $14,841 Earnings per share Basic $--
$0.20 $0.34 $0.59 Diluted $-- $0.19 $0.32 $0.55 (1) Adjusted income
from operations includes and add back for the loss on early
termination of land lease at Rail City Casino. Adjusted income from
operations 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 Adjusted income from operations measure may not be
comparable to similarly titled measures reported by other
companies. The Company believes that this disclosure enhances the
understanding of the day to day operating performance of the
properties. (2) In June 2003, we realized a loss of $547,000, which
stemmed from a personal injury lawsuit filed against us. In October
2004, the Company received partial recovery of our loss in the
amount of $200,000. (3) EBITDAR includes earnings before
depreciation and amortization, interest expense, income taxes,
rent, gain or (loss) on the sale or disposal of property and loss
on early termination of land lease. 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 Web site:
http://www.sandsregency.com/
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