MINNEAPOLIS, Feb. 14 /PRNewswire-FirstCall/ -- STEN Corporation , a Minneapolis-based diversified business, formerly known as Sterion Incorporated, today reported results for the first quarter of fiscal 2005 ended December 31, 2004. The Company reported net income of $838,231 or $.45 per diluted share, which included $837,386 in income after taxes from its recently disposed of Medical Products Group. In accordance with financial reporting requirements, the Company’s former Medical Products Group, which was sold during the first fiscal quarter on November 8, 2004, is being accounted for as a discontinued business. Sales for the first quarter from continuing operations were $2,433,191, a 231% increase from sales in the first quarter of fiscal 2004. The increase in sales from continuing operations revenue reflects the impacts of the Company’s Burger Time and LifeSafe Services businesses which were acquired during the 2004 fiscal year. Net income from continuing operations improved to just above the breakeven level for the current quarter compared with a loss of $33,117 in the same period a year ago.
Commenting on the first-quarter results, Kenneth Brimmer, Company CEO, noted, “The first quarter of fiscal 2005 was a major transition period for us as we sold our Medical Products Group and turned our focus to our other business units. We are pleased to report that we are seeing positive same-store sales comparisons in our Burger Time unit and the trends in our other business units are also encouraging. Following the sale of our Medical Products Group, our book value per share is now over $4.00 and we are well-positioned to focus on significant growth opportunities.”
STEN Corporation, headquartered in Minnesota, is a diversified business. Through LifeSafe Services, the Company provides business customers emergency oxygen equipment and related emergency-preparedness products and services. The Company also 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 SmallCap 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 (formerly Sterion Incorporated and Subsidiaries) CONSOLIDATED STATEMENTS OF OPERATIONS For the three months ended December 31, (unaudited) 2004 2003 SALES, NET $ 2,433,191 $ 735,371 COST OF GOODS SOLD 1,982,193 596,256 Gross Profit 450,998 139,115 SELLING, GENERAL AND ADMINISTRATIVE EXPENSES 429,469 185,206 Income (Loss) from Operations 21,529 (46,091) OTHER EXPENSE Interest expense (20,177) (5,708) Net Other Expense (20,177) (5,708) Income (Loss) from Continuing Operations Before Income Taxes 1,352 (51,799) PROVISION FOR INCOME TAXES (BENEFIT) 507 (18,682) INCOME (LOSS) FROM CONTINUING OPERATIONS 845 (33,117) INCOME FROM DISCONTINUED OPERATIONS (including a gain of disposal of $1,604,258) 1,425,160 25,820 PROVISION FOR INCOME TAXES FROM DISCONTINUED OPERATIONS 587,774 9,682 NET INCOME FROM DISCONTINUED OPERATIONS 837,386 16,138 NET INCOME (LOSS) $ 838,231 $ (16,979) INCOME (LOSS) PER SHARE FROM OPERATIONS: Basic $ 0.00 $ (0.02) Diluted $ 0.00 $ (0.02) INCOME PER SHARE FROM DISCONTINUED OPERATIONS: Basic $ 0.48 $ 0.01 Diluted $ 0.45 $ 0.01 NET INCOME (LOSS) PER SHARE: Basic $ 0.48 $ (0.01) Diluted $ 0.45 $ (0.01) WEIGHTED AVERAGE COMMON AND COMMON EQUIVALENT SHARES OUTSTANDING Basic 1,731,379 1,738,435 Diluted 1,868,030 1,738,435 STEN CORPORATION AND SUBSIDIARIES (formerly Sterion Incorporated and Subsidiaries) CONSOLIDATED BALANCE SHEETS ASSETS December 31, September 30, 2004 2004 (unaudited) (audited) CURRENT ASSETS Cash and cash equivalents $ 821,837 $ 431,942 Accounts receivable, net 687,609 847,379 Inventories 970,628 1,033,736 Deferred income taxes 128,400 128,400 Current assets of discontinued business 0 3,302,194 Current portion of note receivable 250,000 0 Other current assets 219,023 252,086 Total Current Assets 3,077,497 5,995,737 PROPERTY AND EQUIPMENT, NET 5,076,647 5,870,733 OTHER ASSETS Intangible assets, net 1,247,503 1,394,259 Note receivable, net of current portion 250,000 0 Other assets of discontinued business 0 1,170,351 Assets of discontinued business held for sale 722,856 0 Net cash surrender value of life insurance 32,865 32,865 Total Other Assets 2,253,224 2,597,475 TOTAL ASSETS $ 10,407,368 $ 14,463,945 LIABILITIES AND STOCKHOLDERS’ EQUITY CURRENT LIABILITIES Line of credit payable to bank $ 0 $ 1,440,921 Current portion of long-term debt 133,415 534,448 Accounts payable 302,418 519,054 Accrued payroll and related taxes 117,320 248,920 Deferred revenue and service cost liability 739,129 849,451 Other accrued expenses 75,751 210,244 Liabilities of discontinued business 848,317 342,260 Total Current Liabilities 2,216,350 4,145,298 LONG-TERM LIABILITIES Long-term debt, net of current portion 809,819 3,785,063 Deferred income taxes 117,000 117,000 Total Liabilities 3,143,169 8,047,361 STOCKHOLDERS’ EQUITY Capital stock, $.01 par value, 20,000,000 common shares authorized, 5,000,000 undesignated shares authorized, 1,800,718 and 1,800,318 common shares issued and 1,731,718 and 1,731,318 outstanding 17,317 17,313 Additional paid-in capital 3,295,743 3,445,774 Retained earnings 3,951,139 3,112,908 Deferred compensation 0 (159,411) Total Stockholders’ Equity 7,264,199 6,416,584 TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $ 10,407,368 $ 14,463,945
STEN Corporation
CONTACT: Kenneth W. Brimmer of STEN Corporation, +1-763-259-6857