Commenting on the second quarter results and the current outlook,
STEN Corporation and Subsidiaries, headquartered in
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 For the For the For the thirteen thirteen twenty-six twenty-six weeks ended weeks ended weeks ended weeks ended March 30, April 1, March 30, April 1, 2008 2007 2008 2007 REVENUES Stencor sales $629,289 $363,365 $957,355 $647,448 Vehicle sales, interest, and other 3,669,527 592,331 5,396,002 952,937 TOTAL REVENUES 4,298,816 955,696 6,353,357 1,600,385 COST AND EXPENSES Costs of goods sold related to Stencor 537,174 393,906 923,859 753,608 Expenses related to STEN Financial Cost of autos sold 2,003,526 61,907 2,830,724 62,300 Salaries and benefits 441,764 282,978 859,149 456,305 Occupancy and operation expenses 246,311 177,238 521,982 360,408 Depreciation and amortization 98,415 95,013 197,574 150,631 Provision for credit losses 778,123 58,819 1,288,755 92,520 Interest expense 615,582 118,351 1,218,853 125,095 Selling, general and administrative 374,593 237,315 590,618 455,096 TOTAL COST AND EXPENSES 5,095,489 1,425,527 8,432,514 2,455,963 Loss from Continuing Operations Before Income Taxes (796,673) (469,831) (2,079,157) (855,578) BENEFIT FROM INCOME TAXES 294,400 172,140 775,300 318,668 NET LOSS FROM CONTINUING OPERATIONS (502,273) (297,691) (1,303,857) (536,910) Loss from Discontinued Operations 0 (105,646) 0 (129,686) Benefit from income taxes from Discontinued Operations 0 41,961 0 48,632 Loss from discontinued operations 0 (63,685) 0 (81,054) NET LOSS $(502,273) $(361,376) $(1,303,857) $(617,964) NET LOSS PER SHARE FROM CONTINUING OPERATIONS: Basic $(0.20) $(0.15) $(0.61) $(0.27) Diluted $(0.20) $(0.15) $(0.61) $(0.27) NET LOSS PER SHARE FROM DISCONTINUED OPERATIONS: Basic $0.00 $(0.03) $0.00 $(0.04) Diluted $0.00 $(0.03) $0.00 $(0.04) NET LOSS PER SHARE: Basic $(0.20) $(0.18) $(0.61) $(0.31) Diluted $(0.20) $(0.18) $(0.61) $(0.31) WEIGHTED AVERAGE COMMON AND COMMON EQUIVALENT SHARES OUTSTANDING Basic 2,528,751 1,987,066 2,131,030 1,988,982 Diluted 2,528,751 1,987,066 2,131,030 1,988,982 STEN CORPORATION AND SUBSIDIARIES CONDENSED BALANCE SHEETS ASSETS March 30, September 30, 2008 2007 (unaudited) (audited) CURRENT ASSETS Cash, cash equivalents $458,632 $366,118 Current portion of loans receivable, net 3,024,928 2,851,529 Other current assets 4,556,251 3,337,519 Total Current Assets 8,039,811 6,555,166 PROPERTY AND EQUIPMENT, NET 1,232,500 1,293,618 OTHER ASSETS Intangible assets, net 1,605,078 1,750,042 Loan receivable, net of current portion 4,502,357 4,487,466 Other Assets 3,627,818 3,226,387 Total Other Assets 9,735,253 9,463,895 TOTAL ASSETS $19,007,564 $17,312,679 LIABILITIES AND STOCKHOLDERS' EQUITY TOTAL CURRENT LIABILITIES Line of credit, bank $0 680,000 Current portion of long term debt 4,544,796 2,886,265 Other current liabilities 2,669,759 2,791,762 Total Current Liabilities 7,214,555 6,358,027 LONG-TERM LIABILITIES Dealer reserves 66,038 1,076,707 Long-term debt, net of current portion 6,446,225 4,457,458 TOTAL LIABILITIES 13,726,818 11,892,192 TOTAL STOCKHOLDERS' EQUITY 5,280,746 5,420,487 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $19,007,564 $17,312,679 NET BOOK VALUE PER SHARE $2.08 $2.72
SOURCE STEN Corporation