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MINNEAPOLIS, Dec. 29 /PRNewswire-FirstCall/ -- STEN Corporation
(Nasdaq: STEN), a Minneapolis-based diversified business, formerly known as
Sterion Incorporated, today reported results for its fourth quarter and year
ended September 30, 2005. For the year ended September 30, 2005, the Company
earned net income of $326,882 or $.18 per diluted share compared to a net
income of $197,911 or $.11 per diluted share for fiscal 2004. The current
year results includes income of $606,378, or $.34 per diluted share, related
to the sale of the Companys Medical Products Group on November 8, 2004 and
the sale of Emergency Oxygen Service Business on June 30, 2005. In accordance
with financial reporting requirements, these former businesses units are being
accounted for as discontinued operations. The Company reported a loss from
continuing operations for the fourth quarter of 2005 of $262,383 or $(.15) per
diluted share, compared to net income of $51,312 or $.03 per diluted share in
the same period of the year earlier. Fourth quarter 2005 sales from
continuing operations were $2,415,018, a 16.5% increase from sales from
continuing operations in the fourth quarter of fiscal 2004. The increase in
sales from continuing operations reflects the impact of a full year of
operations of the Companys Burger Time business that was acquired in July
2004.
Commenting on the fourth quarter and year-end results, Kenneth Brimmer,
Company CEO, noted, "Clearly fiscal 2005 was a year of transition as we
operated the Burger Time business for a full year and completed the sale of
two major business segments. In part as result of these transition
activities, we believe the current quarter reflects certain costs that will
not recur, including the $172,329 impairment charge. Following the end of our
fiscal year, we raised an additional $2 million in equity from the sale of our
stock and we entered into a transaction with Las Vegas-based Site Equities,
International, Inc. in which we provided financing for the roll-out of its
Paycenters concept. We are looking forward to monitoring the progress of this
investment and to continuing to both enhance our existing operations and to
considering other potential opportunities."
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. STEN Corporation common stock is traded on the Nasdaq Capital
Market under the symbol "STEN." More information about STEN Corporation is
available at the Companys 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
including: the significant risks associated with the Site Equities
transaction, including the risk that Site Equities may fail to repay the loan
amounts that we have advanced and the possibility that the anticipated
benefits of any transaction with Site Equities and Paycenters may not
materialize as expected, if at all; the risks associated with our evolving
business plan; our limited experience and the risks associated with operating
in the extremely competitive quick service restaurant business; risks
associated with our ability to obtain the needed capital resources to grow;
our ability to compete in each of our businesses; our dependence upon a single
customer in our contract manufacturing business; the impact of consumer
preferences, seasonality and general economic conditions on our Burger Time
business and the material impact on our future consolidated financial
statements of Financial Accounting Standards Board (FASB) FASB Interpretation
No. 46R, "Consolidation of Variable Interest Entities", which may require us
to consolidated the financial results of Site Equities and its subsidiaries
with our results, as well as the additional risks described in our Annual
Report on Form 10-KSB for the year ended September 30, 2005, as well as our
future 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
(formerly Sterion Incorporated and Subsidiaries)
CONSOLIDATED STATEMENTS OF OPERATIONS
(audited)
For the Three Months Ended For the Year Ended
September 30, September 30,
2005 2004 2005 2004
Sales, net $2,415,018 $2,073,468 $8,358,447 $3,725,296
Cost of goods sold 2,418,219 1,815,324 7,809,994 3,224,298
Gross profit (3,201) 258,144 548,453 500,998
Selling, general and
administrative
expenses 262,012 162,277 827,762 452,827
Loss on impairment
of intangible asset 172,329 0 172,329 0
Income (loss) from
operations (437,542) 95,867 (451,638) 48,171
Other income (expense)
Interest income 48,504 6,139 55,260 6,139
Interest expense (32,145) (48,750) (51,118) (48,750)
Total other income
(expense) 16,359 (42,611) 4,142 (42,661)
Income (loss) from
continuing operations
before income taxes (421,183) 53,256 (447,496) 5,560
Provision for (benefit
from) income taxes (158,800) 1,944 (168,000) 1,944
Income (loss) from
continuing
operations (262,383) 51,312 (279,496) 3,616
Income from discontinued
operations 0 149,014 969,108 280,951
Provision for (benefit
from) income taxes
from discontinued
operations (75,044) 65,406 362,730 86,656
Income from discontinued
operations 75,044 83,608 606,378 194,295
Net Income (loss) $(187,339) $134,920 $326,882 $197,911
Income (loss) from
continuing operations
per share
Basic $(.15) $.03 $(.16) $.00
Diluted $(.15) $.03 $(.16) $.00
Income from discontinued
operations per share
Basic $.04 $.05 $.35 $.11
Diluted $.04 $.05 $.34 $.10
Net income (loss) per share
Basic $(.11) $.08 $.19 $.11
Diluted $(.11) $.07 $.18 $.11
Weighted average common
and common equivalent
shares outstanding
Basic 1,697,821 1,713,317 1,708,792 1,737,997
Diluted 1,725,180 1,842,855 1,801,288 1,859,551
STEN CORPORATION AND SUBSIDIARIES
(formerly Sterion Incorporated and Subsidiaries)
CONDENSED BALANCE SHEETS
(audited)
ASSETS
September 30, September 30,
2005 2004
CURRENT ASSETS
Cash, cash equivalents and certificates
of deposit $3,560,653 $431,942
Other current assets 1,452,238 7,673,586
Total Current Assets 5,012,891 8,105,528
PROPERTY AND EQUIPMENT, NET 3,730,190 3,114,199
OTHER ASSETS
Assets of discontinued business held for
sale 728,680 722,856
Other Assets 948,468 2,521,362
Total Other Assets 1,677,148 3,244,218
TOTAL ASSETS $10,420,229 $14,463,945
LIABILITIES AND STOCKHOLDERS EQUITY
TOTAL CURRENT LIABILITIES $1,213,333 $4,145,298
LONG-TERM LIABILITIES 2,679,732 3,902,063
TOTAL LIABILITIES 3,893,065 8,047,361
TOTAL STOCKHOLDERS EQUITY 6,527,164 6,416,584
TOTAL LIABILITIES AND STOCKHOLDERS EQUITY $10,420,229 $14,463,945
NET BOOK VALUE PER SHARE $3.88 $3.71
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