KENT Kent Financial Services, Inc. (MM)

Kent Financial Services, Inc. ("Kent") (NASDAQ - KENT) reported a net loss for the three months ended September 30, 2005, of $181,000 or $.06 per share, compared to net income of $739,000, or $.26 per share, for the comparable period in 2004. For the nine months ended September 30, 2005, the net loss was $427,000, or $.15 per share, compared to net income of $748,000, or $.25 per share, for the comparable period in the prior year. Kent has 2,815,374 shares outstanding. This release contains forward-looking statements which may involve known and unknown risks, uncertainties and other factors that may cause the Company's actual results and performance in future periods to be materially different from any future results or performance suggested by these statements. Kent Financial Services cautions investors not to place undue reliance on forward-looking statements, which speak only to management's expectations on this date. The per share earnings in the text of the news release are diluted earnings per share. -0- *T KENT FINANCIAL SERVICES, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2005 AND 2004 (in thousands, except per share data) (Unaudited) Three Months Ended Nine Months Ended September 30, September 30, -------------------- -------------------- 2005 2004 2005 2004 ------ -------- ------- ------- Revenues: Investing losses ($ 125) ($ 54) ($ 155) ($ 37) Management fee income - 12 12 126 Equity in earnings of T. R. Winston - - - 138 Pre-acquisition equity in loss of Cortech - - - ( 83) Interest income 102 45 278 56 Other income 76 53 286 308 Other Revenues: Gain on sale of property - 845 - 845 Gain on sale of T. R. Winston - 71 - 71 --------- ------- ------- ------- Total revenues 53 972 421 1,424 --------- ------- ------- ------- Expenses General and administrative 244 208 861 607 Interest - 10 - 37 --------- ------- ------- ------- Total expenses 244 218 861 644 --------- ------- ------- ------- Income (loss) before income taxes ( 191) 754 ( 440) 780 Provision for income taxes - 39 22 56 --------- ------- ------- ------- Income (loss) before minority interest ( 191) 715 ( 462) 724 Minority interest in subsidiaries losses 10 24 35 24 --------- ------- ------- ------- Net income (loss) ($ 181) $ 739 ($ 427) $ 748 ========= ======= ======= ======= Basic and diluted net income (loss) per common share ($ .06) $ .26 ($ .15) $ .25 ========= ======= ======= ======= Weighted average number of common shares outstanding (in 000's) 2,817 2,887 2,830 2,943 ========= ======= ======= ======= CONDENSED CONSOLIDATED BALANCE SHEET SEPTEMBER 30, 2005 (in thousands) (Unaudited) Assets Current Assets Cash and cash equivalents $ 13,934 Securities owned 383 Other current assets 44 ------------- Total current assets 14,361 Property and equipment, net 2 Goodwill 90 ------------- Total assets $ 14,453 ============= Liabilities and Stockholders' Equity Liabilities $ 1,067 Minority interest in subsidiaries 5,755 Stockholders' equity 7,631 ------------- Total liabilities and stockholders' equity $ 14,453 ============= *T