The Sands Regent Reports First Quarter Fiscal 2006 Financial Results

* First quarter net income totaled $1.9 million, a 14.6% increase from $1.6 million for Q1 2005

* First quarter revenue increased 10.3% year over year from $21.9 million to $24.1 million

* First quarter income from operations increased 4.3% from $3.1 million to $3.3 million

* First quarter EBITDAR increased 5.1% from $4.9 million to $5.1 million

The Sands Regent (NASDAQ:SNDS) today announced financial results for its first quarter of fiscal 2006, ended September 30, 2005. The results include a partial quarter of operations of the Depot Casino and Red Hawk Sports Bar in Dayton, Nevada, which were acquired on September 1, 2005.

For the quarter ended September 30, 2005, revenues rose 10.3% year over year, to $24.1 million, versus $21.9 million for the quarter ended September 30, 2004. The Company's income from operations improved 4.3% year over year, from $3.1 million in the fiscal 2005 first quarter to $3.3 million in the fiscal 2006 quarter. Net income for the fiscal 2006 first quarter was $1.9 million, or $0.27 per basic share, $0.25 diluted as compared to net income of $1.6 million, or $0.29 per share basic, $0.27 diluted for the year-ago period.

EBITDAR increased 5.1% year over year, from $4.9 million in first quarter fiscal 2005 to $5.1 million in first quarter fiscal 2006.

Ferenc B. Szony, President and CEO of The Sands Regent, commented, "We are pleased with the performance of Rail City and the Sands Regency, both of which achieved increases in revenue and improvement in operating income margins during the first quarter. In its first month of operation, we are pleased to report that Dayton Depot performed up to expectations. At Gold Ranch, reductions in weekend traffic counts on Interstate 80 combined with rising gasoline prices to result in a decrease in gallons pumped. Gold Ranch reported an increase in revenue but a decline in income from operations compared to the first quarter of fiscal 2005, in line with expectations."

Mr. Szony concluded, "We have made great progress in the implementation of a new operating strategy at Dayton Depot. That new strategy includes upgrading the slot product, implementing marketing and promotional programs that have been successful for the other properties within the Company, finalizing the design and remodel of the restaurant and moving ahead with plans to implement a slot player tracking system. Customer response to date has been favorable. Rail City has developed detailed plans for an expansion that will add 200 slot machines initially, as well as an additional restaurant and bar. We have targeted ground-breaking for early calendar 2006, subject to our ability to acquire land currently leased from the State of Nevada."

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.




Logos, product and company names mentioned are the property of their respective owners.

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