omniture
logo
Search

Sino-Global Announces Fiscal Year 2016 Third Quarter Financial Results; Highlighted by a Stronger Balance Sheet and More Free Cash Flow

Sino-Global Shipping America, Ltd.
2016-05-10 20:30 2187

ROSLYN, N.Y., May 10, 2016 /PRNewswire/ -- Sino-Global Shipping America, Ltd. (NASDAQ: SINO) ("Sino-Global", the "Company" or "us"), a company engaged in shipping, chartering, logistics and related services, today announced its financial results for the fiscal year 2016 third quarter ended March 31, 2016.

Fiscal Year 2016 Third Quarter Operating and Financial Highlights

(all comparisons to the prior year period)

  • Total revenues were $1.2 million, compared to $2.5 million, largely due to a general economic slow-down and rising labor costs in China and driven by additional competition within the industry, with established and new competitors offering rates that in many cases are much lower than the Company was willing to offer.
  • In January 2016, the Company formed a new subsidiary Sino-Global Shipping LA Inc. for the purpose of expanding its business into providing logistic services including cargo forwarding and truck transportation and customs filing services to customers. The Company expects this new business line will help us to expand our platform to generate increased revenue in the near future.
  • Gross margin for the period decreased to 47.1% from 51.7%, largely due to a change in service mix from the Company's inland transportation business which provided higher margin, coupled with cost of shipping agency and ship management services.
  • Net loss for the third quarter of fiscal year 2016 was $854,876 compared to net income of $331,913, largely as the result of a decrease in total revenue, expenses incurred from the launch of the Company's west coast subsidiary without corresponding revenues, and a rise in income tax expense.
  • Net cash from operating activities was $2.5 million for the nine months ended March 31, 2016, largely as a result of the collection of over $4.0 million in outstanding accounts receivables from two long-time customers of the Company.
  • As of March 31, 2016, the Company had cash and cash equivalents of $4.1 million, working capital of $6.1 million and shareholder equity of $6.5 million; compared to $0.7 million, $6.2 million, and $9.9 million, respectively, as of June 30, 2015.
  • The Company holds no long-term debt.

Management Comments

Mr. Lei Cao, Chief Executive Officer of Sino-Global, stated, "We continued to make progress in expanding our operations while simultaneously improving our free cash flow and strengthening our balance sheet. During the third quarter, we worked with our major customers to improve timely payments for outstanding receivables, and as a result collected nearly 80% of the total amounts outstanding from these customers. Our capital position is strong and the Company enters its fourth quarter in a solid position to execute our growth strategy. In March, we announced the expansion of Sino-Global in the United States market through the formation of a new U.S. based subsidiary, located in L.A., and on May 3rd announced we had entered a memorandum of understanding from Yaxin International Co., Ltd., which represents our first customer agreement for the west coast operation. We feel that the development of this L.A. subsidiary is a natural evolution for us to turn into a global logistics provider."

Fiscal Year 2016, Third Quarter Financial Review

For the three months ended March 31, 2016

Shipping Agency &
Ship Management
Services

Shipping & Chartering
Services

Inland Transportation
Management Services

Total

Revenues

$

232,901

$

-

$

940,868

$

1,173,769

Cost of revenues

$

184,388

$

-

$

436,154

$

620,542

Gross profit

$

48,513

$

-

$

504,714

$

553,227

Depreciation and
amortization

$

8,622

$

1,093

$

5,226

$

14,941

Total capital
expenditures

$

-

$

15,360

$

-

$

15,360

Total assets

$

685,601

$

540,132

$

7,422,570

$

8,648,303

For the three months ended March 31, 2015

Shipping Agency &
Ship Management
Services

Shipping & Chartering
Services

Inland Transportation
Management Services

Total

Revenues

$

1,231,182

$

-

$

1,295,580

$

2,526,762

Cost of revenues

$

980,136

$

-

$

240,441

$

1,220,577

Gross profit

$

251,046

$

-

$

1,055,139

$

1,306,185

Depreciation and
amortization

$

29,511

$

-

$

2,589

$

32,100

Total capital
expenditures

$

56,978

$

-

$

-

$

56,978

Total assets

$

7,869,985

$

-

$

231,746

$

8,101,731

  • Total revenues were $1.2 million during the period, compared to $2.5 million in the prior year period. The decrease was due mainly to a decline in revenues generated from shipping agency services and ship management services and an environment with competitive rates.
  • The Company's gross profit during the period was $0.6 million, compared to $1.4 million in the prior year period. Gross profit margin during the period declined to 47.1% from 51.7%, largely due to a change in service mix from the Company's inland transportation business which provided higher margin, coupled with cost of shipping agency and ship management services.
  • Operating loss for the three months ended March 31, 2016 was $0.6 million, compared to operating income of $0.3 million for the comparable period ended March 31, 2015. The decrease was primarily attributable to a decline in revenue for the period and a rise in general and administrative expenses.
  • For the three months ended March 31, 2016, the Company reported a net loss of $0.9 million, compared to net income of $0.07 million for the three months ended March 31, 2015.

Balance Sheet Information

  • As of March 31, 2016, the Company had cash and cash equivalents of $4.1 million, working capital of $6.1 million and shareholder equity of $6.5 million; compared to $0.7 million, $6.2 million, and $9.9 million, respectively, as of June 30, 2015.

Stock Repurchase Plan Update

On October 11, 2015, the Board of Directors of Sino-Global approved a stock repurchase program, in accordance with the retirement method, authorizing the repurchase of up to $100,000 of its common stock during the quarter ending December 31, 2015. Thereafter the Company may repurchase an aggregate value of shares per quarter equal to 10% to 15% of Sino-Global's quarterly net income for which the most recent quarterly or annual report has been filed. The plan is set to expire on October 11, 2016.

The Company has since repurchased 48,106 common shares at an average stock price of $0.90 per share, as of the date of this release.

About Sino-Global Shipping America, Ltd.

Founded in the United States in 2001, Sino-Global Shipping America, Ltd. is a company engaged in shipping, chartering, logistics and related services. Headquartered in New York, Sino-Global has offices in Mainland China, Australia, Canada and Hong Kong. The Company's current service offerings consist of shipping agency services, shipping and chartering services, inland transportation management services and ship management services. Additional information about Sino-Global can be found on the Company's corporate website at www.sino-global.net. The Company routinely posts important information on its website.

Forward Looking Statements

No statement made in this press release should be interpreted as an offer to purchase any security. Such an offer can only be made in accordance with the Securities Act of 1933, as amended, and applicable state securities laws. Any statements contained in this release that relate to future plans, events or performance are forward-looking statements that involve risks and uncertainties as identified in Sino-Global's filings with the Securities and Exchange Commission. Actual results, events or performance may differ materially. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as the date hereof. Sino-Global undertakes no obligation to publicly release the results of any revisions to these forward-looking statements that may be made to reflect the events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

Contact Information

The Equity Group Inc.
Adam Prior
Senior Vice-President
(212)-836-9606 / aprior@equityny.com

SINO-GLOBAL SHIPPING AMERICA, LTD. AND AFFILIATES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)

(UNAUDITED)


For the three months Ended March 31,

For the nine months Ended March 31,

2016

2015

2016

2015








Net revenues

$

1,173,769

$

2,526,762

$

5,469,938

$

8,225,267












Cost of revenues

(620,542)

(1,220,577)

(2,568,345)

(4,304,591)

Gross profit

553,227

1,306,185

2,901,593

3,920,676












General and administrative expenses

(1,190,614)

(1,069,623)

(4,084,858)

(3,326,769)

Selling expenses

(23,353)

(156)

(67,478)

(66,877)


(1,213,967)

(1,069,779)

(4,152,336)

(3,393,646)












Operating income (loss)

(660,740)

236,406

(1,250,743)

527,030












Financial income (expense), net

61,183

61,442

(251,800)

(59,892)

Other income (loss), net

10,402

(2)

5,781

20,486


71,585

61,440

(246,019)

(39,406)












Net income (loss) before provision for
income taxes

(589,155)

297,846

(1,496,762)

487,624












Income tax (expense) benefit

(265,721)

34,067

(839,076)

85,530












Net income (loss)

(854,876)

331,913

(2,335,838)

573,154












Net loss attributable to non-controlling
interest

(116,667)

(19,070)

(282,688)

(246,710)












Net income (loss) attributable to Sino-
Global Shipping America, Ltd.

$

(738,209)

$

350,983

$

(2,053,150)

$

819,864












Comprehensive income (loss)










Net income (loss)

$

(854,876)

$

331,913

$

(2,335,838)

$

573,154

Foreign currency translation (loss) gain

(7,740)

132,042

(46,058)

127,721

Comprehensive (loss) income

(862,616)

463,955

(2,381,896)

700,875

Less: Comprehensive loss attributable to
non-controlling interest

(141,532)

(187,796)

(142,401)

(187,796)












Comprehensive income (loss) attributable
to Sino-Global Shipping America Ltd.

$

(721,084)

$

651,751

$

(2,239,495)

$

888,671












Earnings (deficit) per share










-Basic and diluted

$

(0.09)

$

0.05

$

(0.25)

$

0.13












Weighted average number of common
shares used in computation










-Basic and diluted

8,337,325

6,200,841

8,364,296

6,102,859

SINO-GLOBAL SHIPPING AMERICA, LTD. AND AFFILIATES

CONDENSED CONSOLIDATED BALANCE SHEETS

(UNAUDITED)


March 31,

June 30,

2016

2015




Assets




Current assets




Cash and cash equivalents

$

4,076,107

$

730,322

Advances to suppliers

6,207

50,975

Accounts receivable, less allowance for doubtful accounts of $151,794 and $477,240 as of
March 31, 2016 and June 30, 2015, respectively

1,688,340

3,082,219

Other receivables, less allowance for doubtful accounts of $125,244 and $241,604 as of March
31, 2016 and June 30, 2015, respectively

316,603

191,972

Prepaid expense and other current assets

1,089,121

1,265,609

Due from related parties, less allowance for doubtful accounts of $174,653 and nil as of March
31, 2016 and June 30, 2015, respectively

1,062,687

2,784,591






Total Current Assets

8,239,065

8,105,688






Property and equipment, net

182,647

214,003

Prepaid expenses

188,268

436,351

Other long-term assets

38,323

2,773,908

Deferred tax assets

-

280,600






Total Assets

$

8,648,303

$

11,810,550






Liabilities and Equity




Advances from customers

$

24,376

$

126,201

Accounts payable

312,009

691,588

Taxes payable

1,740,227

996,648

Accrued expenses and other current liabilities

83,468

99,607






Total Current Liabilities

2,160,080

1,914,044






Total Liabilities

2,160,080

1,914,044






Commitments and Contingency










Equity




Preferred stock, 2,000,000 shares authorized, no par value, none issued.

-

-

Common stock, 50,000,000 shares authorized, no par value; 8,254,138 and 7,996,032 shares
issued as of March 31, 2016 and June 30, 2015; 8,080,841 and 7,870,841 outstanding as of
March 31, 2016 and June 30, 2015

15,320,391

16,303,327

Additional paid-in capital

1,144,842

1,144,842

Treasury stock, at cost - 173,297 and 125,191 shares as of March 31, 2016 and June 30, 2015

(415,978)

(372,527)

Accumulated deficit

(4,606,020)

(2,552,870)

Accumulated other comprehensive income

(94,913)

91,432

Unearned stock-based compensation

(7,760)

(7,760)






Total Sino-Global Shipping America Ltd. Stockholders' Equity

11,340,562

14,606,444






Non-controlling Interest

(4,852,339)

(4,709,938)






Total Equity

6,488,223

9,896,506






Total Liabilities and Equity

$

8,648,303

$

11,810,550

SINO-GLOBAL SHIPPING AMERICA LTD. AND AFFILIATE

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)


For the nine months ended March 31,

2016

2015

US$

US$






Operating Activities










Net income (loss)

$

(2,335,838)

$

573,154

Adjustment to reconcile net income (loss) to net cash provided by (used in) operating
activities




Amortization of stock-based compensation to consultants

922,542

-

Amortization of stock option expense

-

314,622

Depreciation and amortization

44,017

140,464

Provision (recovery) of doubtful accounts on third party receivables

73,746

(17,009)

Provision of doubtful accounts on related party receivable

174,604

-

Deferred tax provision (benefit)

280,600

(91,300)

Loss on disposition of property and equipment

-

1,485

Changes in assets and liabilities




Decrease (increase) in advances to suppliers

44,768

(678,086)

Decrease (increase) in accounts receivable

1,145,529

(1,529,255)

Increase in other receivables

(124,631)

(522,823)

Decrease (increase) in prepaid expense

310,824

(152,589)

Increase in other current assets

(32,453)

-

Increase in other long-term assets

(644)

-

Decrease in due from related parties

1,721,904

44,250

(Decrease) increase in advances from customers

(101,825)

136,460

Decrease in accounts payable

(379,579)

(175,195)

Increase (decrease) in accrued expenses

35,868

(145,641)

Increase in taxes payable

743,580

-

(Decrease) increase in other current liabilities

(52,012)

231,459






Net cash provided by (used in) operating activities

2,471,000

(1,870,004)






Investing Activities




Acquisitions of property and equipment

(18,662)

(84,086)

Cash collected from the termination of vessel acquisition

327,570

-

Collection of short-term loan from related party

-

1,114,428






Net cash provided by investing activities

308,908

1,030,342






Financing Activities




Proceeds from issuance of common stock, net

691,600

967,820

Purchase of common stock

(43,451)

-






Net cash provided by financing activities

648,149

967,820






Effect of exchange rate fluctuations on cash and cash equivalents

(82,272)

76,508






Net increase in cash and cash equivalents

3,345,785

204,666






Cash and cash equivalents at beginning of period

730,322

902,531






Cash and cash equivalents at end of period

$

4,076,107

$

1,107,197






Supplemental information




Income taxes paid

-

8,104

Non-cash transactions of operating activities:




Common stock issued for vessel acquisition

$

2,220,000

$

-

Return of common stock issued for vessel acquisition

$

(2,220,000)

$

-

Common stock issued for stock-based compensation to consultants

$

255,000

$

672,000

Common stock issued for LSM acquisition

$

$

83,500

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/sino-global-announces-fiscal-year-2016-third-quarter-financial-results-highlighted-by-a-stronger-balance-sheet-and-more-free-cash-flow-300265819.html

Source: Sino-Global Shipping America, Ltd.
collection