MINNEAPOLIS, Dec. 31 /PRNewswire-FirstCall/ -- STEN Corporation , a Minneapolis-based diversified business, today reported results for its fourth quarter and year ended September 30, 2007. The Company reported a net loss for the year ended September 30, 2007, of $2,205,714 or $1.11 per diluted share compared to a net loss for the year ended October 1, 2006 of $608,238 or $0.30 per diluted share. For the year ended September 30, 2007, the Company had a loss from continuing operations of $2,224,771 or $1.12 per diluted share and net income from discontinued operations of $19,057 or $0.01 per diluted share. This compares to a loss from continuing operations of $935,213 or $0.46 per diluted share and net income from discontinued operations of $326,975 or $0.16 per diluted share for the year ended October 1, 2006. The Company reported a loss for the fourth quarter ended September 30, 2007 of $1,340,060 or $0.67 diluted share compared to a loss of $97,017 or $0.05 per diluted share for the fourth quarter ended October 1, 2006. The loss in the fourth quarter was principally the result of charges incurred as a result of one of the company's auto-dealer customers ceasing operations at the beginning of the fourth quarter. The dealer ceased operations in a manner resulting in charges to reserve for the write-off of certain inventory items and other related costs together with additional charges relating to the installment contracts that were acquired from this dealer prior to its ceasing operations.
STEN Corporation and subsidiaries, headquartered in Minnesota, is a diversified business, primarily focused on its financing and buy/here pay/here auto sales businesses through STEN Financial Corporation. The Company also has a contract manufacturing business and a distribution businesses.
STEN Corporation common stock is traded on the Nasdaq Capital Market under the symbol STEN. More information about STEN Corporation is available at the Company's website: http://www.stencorporation.com. Except for historical information contained herein, the disclosures in this news release are forward-looking statements that could be affected by certain risks and uncertainties, and actual results may differ materially, depending on a variety of factors. These risks are described in the Company's filings with the Securities and Exchange Commission. The Company undertakes no duty or obligation to update any of the forward-looking statements after the date of this release.
STEN CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited) (audited)
For Three Months Ended For the Year Ended
09/30/2007 10/01/2006 09/30/2007 10/01/2006
REVENUES
Revenues related to
Contract manufacturing,
net $ 492,920 $438,021 $1,444,822 $2,156,070
Finance charges related
to STEN Financial, net
of loan losses and
adjustments of $205,223
and $0 for the thirteen
weeks and $395,009 and
$0 for the years ended
9/30/2007 and
10/01/2006 1,412,127 30,313 3,111,453 30,313
TOTAL REVENUES 1,905,047 468,334 4,556,275 2,186,383
COST AND EXPENSES
Costs of goods sold
related to
Contract manufacturing 450,237 325,357 1,391,807 1,690,605
Loss on impairment of note
receivable from Site
Equities 0 1,082,671 0 1,082,671
Expenses related to STEN
Financial
Cost of autos sold 721,273 0 1,002,808 0
Auto inventory write-down
and related costs 1,137,439 0 1,137,439 0
Salaries and benefits 505,357 2,541 1,341,921 2,541
Occupancy and operation
expenses 271,697 38,463 865,170 38,463
Depreciation and
amortization 98,646 7,596 346,053 7,596
Cost of capital 122,227 0 409,960 0
Selling, general and
administrative 248,478 254,270 1,179,324 926,673
TOTAL COST AND EXPENSES 3,555,354 1,710,898 7,674,482 3,748,549
Loss from Continuing
Operations (1,650,307) (1,242,564) (3,118,207) (1,562,166)
OTHER EXPENSE
Interest income 21,101 59,076 91,405 207,414
Interest expense (255,274) 0 (308,173) 0
Net Other Income
(Expense) (234,173) 59,076 (216,768) 207,414
Loss from Continuing
Operations Before
Income Taxes(1,884,480) (1,183,488) (3,334,975) (1,354,752)
BENEFIT FROM INCOME TAXES (564,604) (356,343) (1,110,204) (419,539)
NET LOSS FROM CONTINUING
OPERATIONS (1,319,876) (827,145) (2,224,771) (935,213)
Income (loss) from
discontinued
operations (32,052) 1,137,615 30,589 477,976
Provision for (benefit
from) income taxes
from discontinued
operations (11,868) 407,487 11,532 151,001
Income (loss) from
discontinued
operations (20,184) 730,128 19,057 326,975
NET LOSS $(1,340,060) $(97,017)$(2,205,714) $(608,238)
NET LOSS PER SHARE FROM
CONTINUING OPERATIONS:
Basic $(0.66) $(0.41) $(1.12) $(0.46)
Diluted $(0.66) $(0.41) $(1.12) $(0.46)
NET INCOME PER SHARE FROM
DISCONTINUED OPERATIONS:
Basic $(0.01) $0.36 $0.01 $0.16
Diluted $(0.01) $0.36 $0.01 $0.16
NET LOSS PER SHARE:
Basic $(0.67) $(0.05) $(1.11) $(0.30)
Diluted $(0.67) $(0.05) $(1.11) $(0.30)
WEIGHTED AVERAGE COMMON AND
COMMON EQUIVALENT SHARES
OUTSTANDING
Basic 1,991,017 2,041,407 1,989,975 2,032,429
Diluted 1,991,017 2,041,407 1,989,975 2,032,429
STEN CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
ASSETS
09/30/07 10/01/06
CURRENT ASSETS
Cash and cash equivalents $366,118 $2,786,941
Current portion of notes and loans
receivable 3,066,619 185,629
Other current assets 3,130,743 1,146,280
Assets of discontinued operations 1,419,643 4,141,098
Total Current Assets 7,983,123 8,259,948
PROPERTY AND EQUIPMENT, NET
OTHER ASSETS 1,293,620 896,223
Notes and loan receivable, net of current
portion5,853,949 574,000
Other assets 2,340,089 285,527
Total Other Assets 8,194,038 859,527
TOTAL ASSETS $17,470,781 $10,015,698
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Current portion of long-term debt $2,886,265 $-
Other current liabilities 2,107,572 145,403
Liabilities of discontinued operations 1,522,292 2,454,229
Total Current Liabilities 6,516,129 2,599,632
LONG-TERM LIABILITIES
Dealer reserves 1,076,707 -
Long-term debt, net of current portion 4,457,458 -
Total Long-Term Liabilities 5,534,165 -
Total Liabilities 12,050,294 2,599,632
STOCKHOLDERS' EQUITY 5,420,487 7,416,066
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $17,470,781 $10,015,698
STEN Corporation