Hotel Online Special Report
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The Sands Regent Announces Fiscal 1998 Earnings
 
RENO, Nev., Sept. 29, 1998 -  The Sands Regent (Nasdaq: SNDS) today reported improved profitability for the quarter ended June 30, 1998. Net consolidated income increased from $114,000, or $.02 per share, in the fourth quarter of fiscal 1997 to $386,000, or $.09 per share, in the fourth quarter of fiscal 1998, over a 300% increase. For the same comparable quarters, revenues increased from $15.4 million to $16.0 million and income from operations increased from approximately $900,000 to $1.2 million, a 34% improvement. Both the Sands Regency and Copa Casino contributed to the improved quarterly profitability. Improvements at the Copa Casino resulted primarily from a decline in dredging and legal costs. Improvements at the Sands Regency were due to an increase in net revenues for the quarter from $9.3 million in fiscal 1997 to $9.8 million in 1998.

For the year ended June 30, 1998, The Sands Regent consolidated group incurred a net loss of $1.2 million, or loss per share of $.27, as compared to a net loss of $762,000, or loss per share of $.17, in the year ended June 30, 1997. For the same comparable periods, income from operations was approximately the same for both years at slightly more than $200,000 on net revenues of $59.2 million in fiscal 1998 versus $57.5 million in fiscal 1997. Such improved revenues are attributable to the Sands Regency in Reno where net revenues increased by over 8% to $34.9 million.

The improvements at the Sands Regency in Reno are principally due to new and increased marketing and promotional efforts. These marketing and promotional efforts have assisted in improving hotel and gaming revenue per hotel guest and include new and ongoing promotions to attract local patrons.

At the Copa, revenues were negatively impacted by construction on Highway 90 that impaired access to the Copa Casino for much of fiscal 1998. Revenues subsequently increased in July 1998 when access to the Copa significantly improved due to the completion of the construction. The Copa Casino was also adversely impacted by an increase in various costs and expenses including legal and professional fees related to litigation with the Mississippi State Port Authority at Gulfport and hurricane evacuation expenses resulting from preparedness actions for Hurricane Danny at the beginning of the year.

Ferenc B. Szony, President and Chief Executive Officer of the Company, stated, "We are pleased with the improved operating results at the Sands Regency. Our new management team, coupled with a seasoned Sands Regency staff, has been instrumental in implementing improvements to increase revenues and control costs.

"Our new marketing strategies, through a recently developed Casino Marketing Department, have also been successful in retaining current and attracting new guests. New and innovative promotional programs have been developed to attract local patrons and to enhance revenues from our guests staying with us. We have also developed various direct mail and other advertising campaigns to entice additional visits from our good customers and to encourage first time visits from travelers who have not stayed with us before.

"In Mississippi, we have finally seen increased revenues due to improved access to the Copa as a result of the completion of construction on Highway 90. This construction has been a severe challenge this past year. We are also involved in discussions to resolve the litigation with our two former partners. We are committed to finding resolutions to some of the negative issues in Mississippi which have curtailed our financial performance and required significant management attention."

The Sands Regent owns and operates the 1,000-room Sands Regency hotel/casino in Reno, Nevada and the Copa Casino in Gulfport, Mississippi.

This press release contains forward-looking statements regarding The Sands Regent's results of operations and financial condition. Actual results could differ materially from those described in this press release as a result of a number of factors including those described in the Company's Annual Report. The Company undertakes no obligations to revise or update any forward-looking statements to reflect events or circumstances after the date of this release.

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Contact:
David R. Wood
Executive Vice President and Chief Financial Officer 
of The Sands Regent
702-348-2298/ 
 http://www.sandsregency.com
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