HONG KONG, August 12, 2011 /PRNewswire-Asia-FirstCall/ -- Winland Ocean Shipping Corp. (OTCBB: WLOL), a global shipping Company, today announced 2011 second quarter financial results and that revenues increased.
The Company reported revenues increased 13.7% to $21.3 million in the second quarter of 2011 compared with $18.7 million in the same period in 2010. The year-over-year increase in revenues reflected the Company's strong marketing performance. Net income dropped but maintained profitable at $0.8 million in this challenging global market.
For the six months ended June 30, 2011, revenues increased by 6.8% to $34.1 million, compared to $32.0 million for the comparable period in 2010. The Company had income from continuing operations of $1.7 million without consideration of the loss from the disposition of its former variable interest entities in the first quarter of 2011.
The Company stated that the shipping market plunged as the Baltic Dry Index decreased 58% in the second quarter of 2011. "Despite the negative impact from the global shipping market," said Ms. Xue Ying, CEO, "our revenues grew back to pre-crisis levels. We contributed the improvement in revenues to our expansion of our fleet capacity".
"Placing two newly built vessels into operation in the first half of 2011 increased our size capacity while selling two old vessels helped to improve our fleet structure," added Mr. Li Honglin, President, "we plan to continue to steadily expand our capacity by constructing new vessels and by purchasing newer second-hand vessels in light of the current slump in the shipping market, and we plan to improve our fleet structure by disposing some old or fully depreciated vessels. With the continuing recovery of the global economy and shipping market, we believe our expanded and restructured fleet scale will position us for steady long-term growth. We are pleased to see that evidenced by our current performance."
Two old bulk vessels were sold at a gain in August this year.
Description of Winland Ocean Shipping Corp.
Winland Ocean Shipping Corp. is a global shipping company with a fleet of 13 Company-owned vessels, mainly in the handysize and MPP (Multi-Purpose Vessel) category, engaged in ocean transportation of dry bulk cargoes and chartering brokerage services worldwide.
WINLAND OCEAN SHIPPING CORP. | |||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||
2011 | 2010 | 2011 | 2010 | ||||||
REVENUES | $ | 21,316,507 | $ | 18,740,244 | $ | 34,139,960 | $ | 31,963,918 | |
COSTS AND EXPENSES | |||||||||
Vessel operating costs | 17,118,213 | 13,932,367 | 26,276,040 | 23,096,945 | |||||
Depreciation and amortization | 1,810,405 | 1,560,538 | 3,406,953 | 3,086,329 | |||||
General and administrative | 438,267 | 432,614 | 1,033,445 | 871,885 | |||||
Selling | 77,009 | 81,120 | 163,833 | 181,334 | |||||
TOTAL COSTS AND EXPENSES | 19,443,894 | 16,006,639 | 30,880,271 | 27,236,493 | |||||
OTHER EXPENSES | |||||||||
Interest, net | (1,130,436) | (283,289) | (1,653,584) | (573,459) | |||||
Other income (expense), net | 38,564 | 3,906 | 95,428 | (3,389) | |||||
INCOME FROM CONTINUING OPERATIONS | 780,741 | 2,454,222 | 1,701,533 | 4,150,577 | |||||
DISCONTINUED OPERATIONS | |||||||||
Loss from disposition of discontinued operations | - | - | (2,603,403) | - | |||||
Gain (loss) from discontinued operations | 164 | 532,377 | (166,753) | 488,256 | |||||
Income tax expense from discontinued operations | - | (9,069) | (9,382) | (17,023) | |||||
NET GAIN (LOSS) FROM DISCONTINUED OPERATIONS | 164 | 523,308 | (2,779,538) | 471,233 | |||||
NET INCOME (LOSS) | 780,905 | 2,977,530 | (1,078,005) | 4,621,810 | |||||
OTHER COMPREHENSIVE INCOME | |||||||||
Foreign currency translation gain | 287 | 17,943 | 5,763 | 19,039 | |||||
COMPREHENSIVE INCOME (LOSS) | $ | 781,192 | $ | 2,995,473 | $ | (1,072,242) | $ | 4,640,849 | |
Weighted average shares outstanding | |||||||||
- Diluted | 195,000,000 | 195,000,000 | 195,000,000 | 195,000,000 | |||||
- Diluted | 195,000,000 | 195,000,000 | 195,000,000 | 195,000,000 | |||||
Income per share from continuing operations | |||||||||
- Basic | $ | 0.00 | $ | 0.01 | $ | 0.01 | $ | 0.02 | |
- Diluted | $ | 0.00 | $ | 0.01 | $ | 0.01 | $ | 0.02 | |
Gain (loss) per share from discontinued operations | |||||||||
- Basic | $ | 0.00 | $ | 0.00 | $ | (0.01) | $ | 0.00 | |
- Diluted | $ | 0.00 | $ | 0.00 | $ | (0.01) | $ | 0.00 | |
Net income (loss) per share | |||||||||
- Basic | $ | 0.00 | $ | 0.02 | $ | (0.01) | $ | 0.02 | |
- Diluted | $ | 0.00 | $ | 0.02 | $ | (0.01) | $ | 0.02 | |
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995:
This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on current expectations or beliefs, including, but not limited to, statements concerning the Company's operations, financial performance and condition. For this purpose, statements that are not statements of historical fact may be deemed to be forward-looking statements. The Company cautions that these statements by their nature involve risks and uncertainties, and actual results may differ materially depending on a variety of important factors, including, but not limited to, the impact of competitive services and products, pricing and new technology; changes in customer preferences and effectiveness of marketing; changes in laws and regulations; fluctuations in costs of doing business, and other factors as those discussed in the Company's reports filed with the Securities and Exchange Commission from time to time. In addition, the company disclaims any obligation to update any forward-looking statements to reflect events or circumstances after the date hereof.
No securities regulatory authority has either approved or disapproved the contents of this news release.
Contacts: | |
Winland Ocean Shipping Corp. | |
Tiger Cai | |
Investor Relations | |
Tel: 00852-28549088 | |
Fax: 00852-28549087 | |
Email: Tiger@winlandshipping.com | |
Nancy Jing | |
Chief Financial Officer | |
Tel: 1 408 833 4588 | |
Fax: 1 800 779 2319 | |
Email: nancy@winlandshipping.com | |
