KENT Kent Financial Services, Inc. (MM)

KENT FINANCIAL SERVICES, INC. (�Kent�) (NASDAQ � KENT) reported a net loss for the three months ended September 30, 2006 of $126,000 or $.04 per share, compared to a net loss of $181,000, or $.06 per share, for the comparable period in 2005. For the nine months ended September 30, 2006 the net loss was $448,000, or $.16 per share, compared to a net loss of $427,000, or $.15 per share, for the comparable period in the prior year. Kent has 2,799,888 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. Per share earnings reported in the text of the news release are fully diluted earnings per share. KENT FINANCIAL SERVICES, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2006 AND 2005 (in thousands, except per share data) (Unaudited) � Three Months Ended Nine Months Ended September 30, September 30, 2006� 2005� 2006� 2005� Revenues: Seminar fees $ 108� $ 29� $ 275� $ 57� Management fee income 12� Interest and dividends 165� 102� 453� 278� Investing gains (losses) 11� (125) (155) Sale of patent rights by subsidiary 50� 50� Other income � 13� � 47� � 40� � 229� � Total revenues 347� 53� 818� 421� � Expenses: General and administrative � 488� � 244� � 1,361� � 861� � Loss before income taxes, minority interest and extraordinary item (141) (191) (543) (440) Provision for income taxes � 1� � � 8� � 22� Loss before minority interest and extraordinary item (142) (191) (551) (462) Minority interest in subsidiaries losses � 16� � 10� � 75� � 35� � Loss before extraordinary item (126) (181) (476) (427) Extraordinary gain due to purchase of subsidiary stock � � 28� � � Net loss $ (126) $ (181) $ (448) $ (427) � Basic and diluted net loss per common share: Loss per share before extraordinary item $ (0.04) $ (0.06) $ (0.17) $ (0.15) Extraordinary gain � � � 0.01� � � Net loss per share $ (0.04) $ (0.06) $ (0.16) $ (0.15) � Weighted average number of common shares outstanding (in 000's) � 2,801� � 2,817� � 2,803� � 2,830� CONDENSED CONSOLIDATED BALANCE SHEET AS OF SEPTEMBER 30, 2006 (in thousands) (Unaudited) ASSETS � Current Assets: Cash and cash equivalents $ 535� Short-term investments 12,700� Securities owned 118� Other current assets � 154� � Total current assets � 13,507� � Property and equipment, net 2� � Goodwill � 90� � Total assets $ 13,599� � � LIABILITIES AND STOCKHOLDERS� EQUITY � Current liabilities $ 1,042� � Minority interest in subsidiaries 5,228� � Stockholders' equity � 7,329� � Total liabilities and stockholders' equity $ 13,599� KENT FINANCIAL SERVICES, INC. ("Kent") (NASDAQ - KENT) reported a net loss for the three months ended September 30, 2006 of $126,000 or $.04 per share, compared to a net loss of $181,000, or $.06 per share, for the comparable period in 2005. For the nine months ended September 30, 2006 the net loss was $448,000, or $.16 per share, compared to a net loss of $427,000, or $.15 per share, for the comparable period in the prior year. Kent has 2,799,888 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. Per share earnings reported in the text of the news release are fully diluted earnings per share. -0- *T KENT FINANCIAL SERVICES, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2006 AND 2005 (in thousands, except per share data) (Unaudited) Three Months Nine Months Ended Ended September 30, September 30, ---------------- ---------------- 2006 2005 2006 2005 ------- ------- ------- ------- Revenues: Seminar fees $ 108 $ 29 $ 275 $ 57 Management fee income 12 Interest and dividends 165 102 453 278 Investing gains (losses) 11 (125) (155) Sale of patent rights by subsidiary 50 50 Other income 13 47 40 229 ------- ------- ------- ------- Total revenues 347 53 818 421 Expenses: General and administrative 488 244 1,361 861 ------- ------- ------- ------- Loss before income taxes, minority interest and extraordinary item (141) (191) (543) (440) Provision for income taxes 1 8 22 ------- ------- ------- ------- Loss before minority interest and extraordinary item (142) (191) (551) (462) Minority interest in subsidiaries losses 16 10 75 35 ------- ------- ------- ------- Loss before extraordinary item (126) (181) (476) (427) Extraordinary gain due to purchase of subsidiary stock 28 ------- ------- ------ ------- Net loss $ (126) $ (181) $ (448) $ (427) ======= ======= ======= ======= Basic and diluted net loss per common share: Loss per share before extraordinary item $(0.04) $(0.06) $(0.17) $(0.15) Extraordinary gain 0.01 ------- ------- ------- ------- Net loss per share $(0.04) $(0.06) $(0.16) $(0.15) ======= ======= ======= ======= Weighted average number of common shares outstanding (in 000's) 2,801 2,817 2,803 2,830 ======= ======= ======= ======= *T -0- *T CONDENSED CONSOLIDATED BALANCE SHEET AS OF SEPTEMBER 30, 2006 (in thousands) (Unaudited) ASSETS Current Assets: Cash and cash equivalents $ 535 Short-term investments 12,700 Securities owned 118 Other current assets 154 ---------- Total current assets 13,507 ---------- Property and equipment, net 2 Goodwill 90 ---------- Total assets $ 13,599 ========== LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities $ 1,042 Minority interest in subsidiaries 5,228 Stockholders' equity 7,329 ---------- Total liabilities and stockholders' equity $ 13,599 ========== *T