Improved operating results followed the announcement by the Sands Regent (SNDS) that it planned to expand its Rail City Casino property in Sparks, Nev.
For the second fiscal quarter that ended on Dec. 31, 2005, the company said revenues rose 15% to $22.3 versus the $19.4 million recorded in the corresponding quarter. Income from operations, after adding back the one-time, non-cash charge of $419,000 relating to the loss on early termination of Rail City land lease, improved 31.4% over the second quarter of fiscal 2005.
Net income for the period amounted to $603,000 or $0.09 per share compared to $498,000 or $0.08 per basic share a year earlier.
Initially, the plans for the Rail City Casino call for the addition of 200 slot machines, raising the level to 800 machines, with the ultimate goal of increasing that amount to 1,000 gaming devices.
Subject to receiving the necessary permits from the city of Sparks, the company said it planned a phased construction process that will include an additional restaurant and bar venue.
"The added investment," said Ferenc Szony, president and CEO of Sands Regent, "will ensure that we maximize the property’s profitability.