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Kent Financial Services Inc. Reports Operating Results (10-Q)

November 12, 2010 | About:
10qk

10qk

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Kent Financial Services Inc. (KENT) filed Quarterly Report for the period ended 2010-09-30.

Kent Financial Services Inc. has a market cap of $3.5 million; its shares were traded at around $1.26 with and P/S ratio of 75.6.

Highlight of Business Operations:

The Company had a net loss of $113,292 or $.04 basic and diluted loss per share, for the three months ended September 30, 2010 compared to a net loss of $145,687, or $.05 basic and diluted loss per share for the comparable quarter in 2009. For the nine months ended September 30, 2010, the Company had a net loss of $379,753 or $.14 basic and diluted loss per share, compared to a net loss of $349,733, or $.13 basic and diluted loss per share for the nine months ended September 30, 2009. The increase in the net loss for the nine months was primarily the result of a decrease in the income from discontinued operations which was partially offset by a decrease in general and administrative expenses. This same decrease in general and administrative expenses was also primarily responsible for the decrease in the net loss for the three months ended September 30, 2010.

Interest and dividend revenue decreased to $3,411 for the three months ended September 30, 2010, from $4,478 for the three months ended September 30, 2009. For the nine months ended September 30, 2010, interest revenue decreased to $7,106 from $17,200 for the nine months ended September 30, 2009. A decrease in the yield on short-term investments and cash equivalents from 0.2% to 0.12% together with reduced cash available for investment were the primary reasons for the decreases.

For the three months ended September 30, 2010, other income decreased to $5,475 from $6,915 for the three months ended September 30, 2009. Other income increased to $22,005 for the nine months ended September 30, 2010, from $20,426 for the nine months ended September 30, 2009, caused primarily by the increase in administrative fees paid by an un-affiliated investment partnership. These administrative fees fluctuate based on the performance of the investment partnership and; therefore, are unpredictable

General and administrative expenses were $159,729 in the three months ended September 30, 2010 compared to $202,556 in the three months ended September 30, 2009, a decrease of $42,827 or 21.1%. For the nine months ended September 30, 2010, general and administrative expenses decreased to $527,758 from $583,625 for the nine months ended September 30, 2009, a decrease of $55,867 or 9.58%. These decreases were primarily attributable to $39,000 in Kent International s consulting and due diligence expenses incurred in 2009 related to a proposed acquisition that was terminated prior to closing. In 2010 we also incurred $9,000 less in consulting expenses related to the licensing of Kent Capital, Inc. and $20,421 less in expenses related to the operation of ChinaUSPals.com.

Net cash of $7,376 was provided by investing activities during the nine months ended September 30, 2010 by the sale of marketable securities. Net cash of $10,099,201 was provided by investing activities during the nine months ended September 30, 2009 by the gain generated by the net purchases and sales of marketable securities of $10,034 and by the sales and maturities of short-term investments of $10,089,167.

The Company and its consolidated subsidiaries reimburse an affiliate, Bedminster Management Corp., for the allocated direct cost of group health insurance and office supplies. These reimbursements were $17,815 and $52,707 in the three and nine months ended September 30, 2010, respectively and $15,216 and $50,639 in the three and nine months ended September 30, 2009, respectively.

Read the The complete Report

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