MINNEAPOLIS, Aug. 11 /PRNewswire-FirstCall/ -- STEN Corporation , a Minneapolis-based diversified business, today reported results for the third quarter of fiscal 2006 ended June 30, 2006. The Company reported a net loss, reflecting an after-tax charge of approximately $664,171 to write-off advances to Site Equities International, of $726,284 or $(.35) per diluted share for the quarter ended June 30, 2006, compared to a net loss of $360,363 or $(.21) per diluted share in the same period of fiscal 2005. Sales for the third quarter of fiscal 2006 from continuing operations were $2,477,748, a 16% increase from sales in the third quarter of fiscal 2005. Third quarter sales for fiscal 2006 in the contract manufacturing business were approximately $273,772 higher than in the fiscal 2005 quarter. Burger Time sales for the period increased to $1,909,898 from $1,839,684 as a result of both an increase in same store sales and the sales from new restaurants. For the nine months ended June 30, 2006, the Company recorded a net loss of $511,221 or $(.25) per diluted share compared to net income of $514,221 or $.28 per diluted share in the year ago period. The nine month period results for fiscal 2005 included income of $531,334 of $.29 per diluted share from the sale of discontinued businesses.
Commenting on the third-quarter results, Kenneth Brimmer, Company CEO, noted, "We were disappointed that Site Equities was not able to complete its additional funding. We concluded, however, that additional funding by STEN would be too risky and decided to preserve our capital for what we believe will be much better opportunities. Our overall financial position has never been stronger and our business units continue to perform well and are generating additional cash. With over $3.7 million in cash and cash equivalents available we continue to consider possible opportunities to enhance returns to our shareholders."
STEN Corporation, headquartered in Minnesota, is a diversified business. The Company operates a chain of fast-food, drive-through restaurants under the Burger Time name. In addition, the Company provides contract manufacturing services for surgical instrument sterilization container systems.
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 Three Months Ended For the Nine Months Ended
June 30, June 30,
2006 2005 2006 2005
Sales, net $2,477,748 $2,133,762 $6,605,568 $5,943,429
Cost of goods sold 2,140,917 1,920,078 5,950,236 5,391,775
Gross profit 336,831 213,684 655,332 551,654
Selling, general and
administrative costs 318,136 238,449 972,144 565,750
Loss on impairment on
Site Equities note 1,062,671 0 1,062,671 0
Loss from
operations (1,043,976) (24,765) (1,379,483) (14,096)
Other income (expense)
Interest income 49,605 1,028 154,346 6,756
Interest expense (32,592) (5,407) (98,785) (18,973)
Net other income
(expense) 17,013 (4,379) 55,561 (12,217)
Loss from continuing
operations before
income taxes (1,026,963) (29,144) (1,323,922) (26,313)
Benefit from income
taxes (385,110) (31,206) (488,859) (9,200)
Income (loss) from
continuing
operations (641,853) 2,062 (835,063) (17,113)
Income (loss) from
discontinued
operations (135,091) (512,425) 493,019 969,108
Provision for (benefit
from) income taxes
from discontinued
operations (50,660) (150,000) 169,177 437,774
Income (loss) from
discontinued
operations (84,431) (362,425) 323,842 531,334
NET INCOME (LOSS) $(726,284) $(360,363) $(511,221) $514,221
INCOME (LOSS) PER
SHARE FROM CONTINUING
OPERATIONS:
Basic $(0.31) $0.00 $(0.41) $(0.01)
Diluted $(0.31) $0.00 $(0.40) $(0.01)
INCOME (LOSS) PER
SHARE FROM DISCONTINUED
OPERATIONS:
Basic $(0.04) $(0.21) $0.16 $0.31
Diluted $(0.04) $(0.21) $0.15 $0.29
NET INCOME (LOSS)
PER SHARE:
Basic $(0.35) $(0.21) $(0.25) $0.30
Diluted $(0.35) $(0.21) $(0.25) $0.28
WEIGHTED AVERAGE COMMON
AND COMMON EQUIVALENT
SHARES OUTSTANDING
Basic 2,060,215 1,710,685 2,028,423 1,722,887
Diluted 2,090,606 1,710,685 2,073,829 1,831,553
STEN CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
ASSETS
June 30, September 30,
2006 2005
(unaudited) (audited)
CURRENT ASSETS
Cash, cash equivalents and short term
investments $3,788,300 $3,560,653
Other current assets 1,360,949 1,452,238
Total Current Assets 5,149,249 5,012,891
PROPERTY AND EQUIPMENT, NET 4,206,649 3,730,190
OTHER ASSETS
Assets of discontinued business held
for sale 0 728,680
Other assets 870,154 948,468
Total Other Assets 870,154 1,677,148
TOTAL ASSETS $10,226,052 $10,420,229
LIABILITIES AND STOCKHOLDERS' EQUITY
TOTAL CURRENT LIABILITIES 681,987 1,213,333
LONG-TERM LIABILITIES 1,878,636 2,679,732
TOTAL LIABILITIES 2,560,623 3,893,065
TOTAL STOCKHOLDERS' EQUITY 7,665,429 6,527,164
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $10,226,052 $10,420,229
NET BOOK VALUE PER SHARE 3.73 3.88
