Stratatel Def (ASX:STEN)
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MINNEAPOLIS, Jan. 12 /PRNewswire-FirstCall/ -- STEN Corporation (NASDAQ: STEN), a Minneapolis-based diversified business; today reported results for its year ended September 28, 2008. The Company reported a net loss for the year ended September 28, 2008, of $8,021,386 or $3.25 per diluted share compared to a net loss for the year ended September 30, 2007 of $2,205,714 or $1.11 per diluted share. For the year ended September 28, 2008, the Company had a loss from continuing operations of $5,435,061 or $2.71 per diluted share and a loss from discontinued operations of $1,344,325 or $0.54 per diluted share. This compares to a loss from continuing operations of $2,753,542 or $0.93 per diluted share and a loss from discontinued operations of $344,376 or $0.18 per diluted share for the year ended September 30, 2007. A significant portion of the loss relates to non-cash charges including recording an allowance against approximately $2.96 million in net deferred tax assets. Kenneth Brimmer, CEO noted, "As a small finance company dealing with sub-prime borrowers we were hurt particularly hard by the marketplace events of the last year including the historic crisis in the credit markets, the most significant general economic recession in more than 20 years, the historic low levels of investor confidence, and the ever-increasing costs associated with being a public company. The combined effects of all these factors contributed to the significant loss for the year."
The Company also reported that on January 12, 2009, the Company received a Staff Deficiency Letter regarding a deficiency in the composition of the Company's Audit Committee for the period from October 28, 2008 to December 12, 2008. Due to the resignation of Steven F. Sabes from the Board and Audit Committee on October 28, 2008, the Company became non-compliant with the audit committee requirement for continued listing on The Nasdaq Stock Market as set forth in Marketplace Rule 4350(d)(2) because the Company's Audit Committee was comprised of only two instead of three members. On December 12, 2008, the Company's Board of Directors appointed Gervaise Wilhelm, an independent director, to serve on the Audit Committee. As a result of this action, the Company's Audit Committee is now comprised of three members, all of whom are independent directors. Accordingly, as stated in the Staff Deficiency Letter, the Nasdaq staff has determined that the Company has regained compliance with the Marketplace Rule 4350(d)(2).
STEN Corporation and Subsidiaries, headquartered in Minnesota, is a diversified business, primarily focused on its financing business through STEN Financial Corporation.
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
(AUDITED)
09/28/2008 09/30/2007
REVENUES
Stencor sales $2,053,430 $1,444,822
STEN Financial, auto loan interest
and other 2,416,110 1,164,603
STEN Financial, vehicle sales 11,402,061 1,167,212
TOTAL REVENUES 15,871,601 3,776,637
COST AND EXPENSES
Costs of goods sold related to Stencor 2,079,164 1,903,240
Loss on impairment of Stencor assets 650,000
Expenses related to STEN Financial
Cost of autos sold 7,755,240 1,002,808
Salaries and benefits 1,307,904 727,352
Occupancy and operation expenses 778,980 240,923
Depreciation and amortization 251,853 200,301
Provision for credit losses 3,435,116 1,160,936
Interest expense, net 3,297,357 626,728
Loss on impaired of STEN Financial asset 571,667 -
Selling, general and administrative 1,179,381 667,891
TOTAL COST AND EXPENSES 21,306,662 6,530,179
Loss from Continuing Operations
Before Income Taxes (5,435,061) (2,753,542)
Provision for (benefit from) income taxes 1,242,000 (892,204)
NET LOSS FROM CONTINUING OPERATIONS (6,677,061) (1,861,338)
Loss from Discontinued Operations Before
Income Taxes (1,344,325) (550,844)
Benefit from income taxes 0 (206,468)
Loss from discontinued operations (1,344,325) (344,376)
NET LOSS $(8,021,386) $(2,205,714)
NET LOSS PER SHARE FROM CONTINUING OPERATIONS:
Basic $(2.71) $(0.93)
Diluted $(2.71) $(0.93)
NET LOSS PER SHARE FROM DISCONTINUED
OPERATIONS:
Basic $(0.54) $(0.18)
Diluted $(0.54) $(0.18)
NET LOSS PER SHARE:
Basic $(3.25) $(1.11)
Diluted $(3.25) $(1.11)
WEIGHTED AVERAGE COMMON AND COMMON
EQUIVALENT SHARES OUTSTANDING
Basic 2,470,348 1,989,975
Diluted 2,470,348 1,989,975
STEN CORPORATION AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS
(AUDITED)
ASSETS
09/28/08 09/30/07
CURRENT ASSETS
Cash and cash equivalents $242,733 $156,399
Current portion of notes and loans receivable 2,817,234 2,213,649
Other current assets 3,134,249 3,103,852
Assets of discontinued operations 80,074 1,928,575
Total Current Assets 6,274,290 7,402,475
PROPERTY AND EQUIPMENT, NET 824,141 1,051,012
OTHER ASSETS
Notes and loan receivable, net of
Current portion 8,813,057 5,695,849
Other assets 2,313,649 3,163,343
Total Other Assets 11,126,706 8,859,192
TOTAL ASSETS $18,225,137 $17,312,679
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Current portion of long-term debt $5,442,524 $2,886,265
Other current liabilities 1,791,706 1,845,010
Liabilities of discontinued operations 1,344,407 1,626,752
Total Current Liabilities 8,578,637 6,358,027
LONG-TERM LIABILITIES
Dealer reserves 27,303 1,076,707
Long-term debt, net of current portion 10,983,738 4,457,458
Total Long-Term Liabilities 11,011,041 5,534,165
Total Liabilities 19,589,678 11,892,192
STOCKHOLDERS' EQUITY (1,364,541) 5,420,487
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $18,225,137 $17,312,679
DATASOURCE: STEN Corporation
CONTACT: Kenneth W. Brimmer of STEN Corporation, +1-952-545-2776,
Web Site: http://www.stencorporation.com/