STEN Corporation Reports First-Quarter 2008 Results
MINNEAPOLIS, Feb. 13, 2008 -- STEN Corporation , a Minneapolis-based diversified business, today reported results for the first thirteen week period of fiscal 2007 ended December 30, 2007. The Company reported a net loss of $801,584 or $(.35) per diluted share for the thirteen weeks ended December 30, 2007. Sales from continuing operations for the thirteen week period ended December 30, 2007 were $2,054,541 an increase of $1,409,853 from $644,688 for the thirteen week period ended December 31, 2006. The Company's Stencor business accounted for $328,066 in sales and the STEN Financial unit contributed $1,726,475 in sales for the period ended December 30, 2007. The loss in the first quarter of fiscal 2008 was principally the result of charges incurred as a result of one of the company's auto-dealer customers ceasing operations in the of the fourth quarter of fiscal 2007 resulting in losses associated with financing related inventory and an additional losses associated with the installment contracts that were acquired from this dealer prior to its ceasing operations. In addition, the Company recorded a $142,180 noncash charge for the write-off of an original issue discount associated with repayment of debt during the quarter.
Commenting on the results, Kenneth Brimmer, CEO, noted, "We made significant strides forward during the quarter in our finance businesses. The securing of a new senior credit arrangement to support the finance and auto sales businesses is an important accomplishment. In addition, the current level of orders at our Stencor business unit is improving after a couple of years of declines and we expect that the improved production volumes will have a favorable impact on our results in future periods."
The Company also announced that its Board of Directors has approved extending the expiration date of its 359,983 outstanding common stock purchase warrants that were originally scheduled to expire on September 30, 2008 to September 30, 2011.
STEN Corporation and subsidiaries, headquartered in Minnesota, is a diversified business, primarily focused on its financing business through STEN Financial Corporation. The Company's Stencor subsidiary is a contract manufacturing business and distribution business based in Jacksonville, Texas.
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)
For the thirteen weeks For the thirteen weeks
ended ended
December 30, 2007 December 31, 2006
REVENUES
Stencor sales $ 328,066 $ 284,083
Vehicle sales, interest,
and other 1,726,475 360,605
TOTAL REVENUES 2,054,541 644,688
COST AND EXPENSES
Costs of goods sold related
to Stencor 386,685 359,702
Expenses related to STEN
Financial
Cost of autos sold 827,198 393
Salaries and benefits 417,386 173,327
Occupancy and operation
expenses 275,671 183,170
Depreciation and
amortization 99,159 55,618
Provision for credit
losses 510,632 33,701
Interest expense 604,273 6,744
Selling, general and
administrative 216,021 217,781
TOTAL COST AND EXPENSES 3,337,025 1,030,436
Loss from Continuing
Operations Before
Income Taxes (1,282,484) (385,748)
BENEFIT FROM INCOME TAXES 480,900 146,528
NET LOSS FROM CONTINUING
OPERATIONS (801,584) (239,220)
Loss from Discontinued
Operations 0 (24,040)
Benefit from income
taxes from Discontinued
Operations 0 6,672
Loss from discontinued
operations 0 (17,368)
NET LOSS $ (801,584) $ (256,588)
NET LOSS PER SHARE FROM
CONTINUING OPERATIONS:
Basic $ (0.35) $ (0.12)
Diluted $ (0.35) $ (0.12)
NET INCOME (LOSS) PER SHARE
FROM DISCONTINUED
OPERATIONS:
Basic $ 0.00 $ (0.01)
Diluted $ 0.00 $ (0.01)
NET LOSS PER SHARE:
Basic $ (0.35) $ (0.13)
Diluted $ (0.35) $ (0.13)
WEIGHTED AVERAGE COMMON AND
COMMON EQUIVALENT SHARES
OUTSTANDING
Basic 2,295,138 1,990,878
Diluted 2,295,138 1,990,878
STEN CORPORATION AND SUBSIDIARIES
CONDENSED BALANCE SHEETS
ASSETS
December 30, September 30,
2007 2007
(unaudited) (audited)
CURRENT ASSETS
Cash, cash equivalents $ 580,681 $ 366,118
Current portion of loans receivable,
net 2,796,210 2,851,529
Other current assets 3,933,887 3,337,519
Total Current Assets 7,310,778 6,555,166
PROPERTY AND EQUIPMENT, NET 1,255,750 1,293,618
OTHER ASSETS
Intangible assets, net 1,678,663 1,750,042
Loan receivable, net of current
portion 3,892,723 4,487,466
Other Assets 3,528,782 3,226,387
Total Other Assets 9,100,168 9,463,895
TOTAL ASSETS $ 17,666,696 $ 17,312,679
LIABILITIES AND STOCKHOLDERS' EQUITY
TOTAL CURRENT LIABILITIES
Line of credit, bank $ 0 680,000
Current portion of long term debt 3,392,772 2,886,265
Other current liabilities 2,336,888 2,791,762
Total Current Liabilities 5,729,660 6,358,027
LONG-TERM LIABILITIES
Dealer reserves 368,419 1,076,707
Long-term debt, net of current
portion 5,884,067 4,457,458
TOTAL LIABILITIES 11,982,146 11,892,192
TOTAL STOCKHOLDERS' EQUITY 5,684,550 5,420,487
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY $ 17,666,696 $ 17,312,679
NET BOOK VALUE PER SHARE $ 2.47 $ 2.72