The Sands Regent Reports Q4, Yearly Results

The Sands Regent today announced financial results for its fiscal year 2005 and fourth quarter ended June 30, 2005. Separately, the Company also announced completion of the acquisition of Dayton Depot and Red Hawk Sports Bar in Dayton, NV.

Fiscal year 2005 net income was $3.8 million, or $0.59 per basic share, $0.55 diluted as compared to net income, including a one-time gain, of $6.9 million, or $1.32 per share basic, $1.24 diluted for fiscal year 2004. Prior-year results included a one-time, non-operating gain of $4.4 million in connection with the sale of the Copa Casino. The Company's income from operations improved 60% year over year, from $4.9 million in fiscal 2004 to $7.8 million in fiscal 2005.

For fiscal year 2005, the Company reported net revenues of $81.1 million, a 30% increase over $62.3 million in fiscal 2004 net revenues, primarily reflecting contributions from Rail City Casino, which was acquired in May, 2004.

EBITDAR, which excludes one-time gains, increased 47% year over year, from $10.1 million in fiscal 2004 to $14.8 million in fiscal 2005.

For the fourth quarter of 2005, ended June 30, the Company's net income totaled $1.4 million, or $0.20 per basic share, $0.19 diluted, compared to net income of $1.4 million or $0.26 per basic share, $0.24 diluted in the year-ago quarter. Quarterly income from operations was $2.6 million, as compared to income from operations of $2.9 million in the fourth quarter of fiscal 2004.

Quarterly net revenues were $21.2 million, a 3% improvement over fourth- quarter 2004 net revenues of $20.5 million. Strong results in the locals- oriented market segment were offset by weakness in the tourism-related market segment, principally resulting from the lack of a major bowling event in downtown Reno in the 2005 fourth quarter. Years without a major Reno bowling event occur once every three years. Business levels in both market segments were at anticipated levels in the latter part of the fourth quarter.

Quarterly EBITDAR decreased year over year, from $4.6 million for the fourth quarter of 2004 to $4.4 million for the 2005 quarter.

Ferenc B. Szony, President and CEO of The Sands Regent, commented, "Once again, we have demonstrated that our strategy to diversify our mix of local and tourism-related business has been successful. Our acquisition of the Dayton Depot and Red Hawk Sports Bar, which we completed and announced this morning, reinforces that positioning. Dayton is the largest town in Lyon County, which grew 16.3% between 2000 and 2003, making it Nevada's fastest- growing county and one of the fastest-growing counties in the United States.

"We look forward to continued success in 2006 as we pursue a major expansion at Rail City Casino, maximize the benefits of our recently installed slot management and ticket-in/ticket-out capabilities at Gold Ranch, bring our casino renovation at the Sands Regency to completion and integrate the newly acquired Dayton properties into our portfolio."

Mr. Szony concluded, "Consistent with our past practices, we have continued to pay down long-term debt, which stood at $36.9 million at the beginning of the fiscal year, to $19.9 million as of June 30, 2005. This demonstrates our success in execution of our growth strategy and provides us the flexibility to respond to future growth opportunities as they arise."