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 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/
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