ROSLYN, N.Y., Nov 14, 2016 /PRNewswire/ -- Sino-Global Shipping America, Ltd. (NASDAQ: SINO) ("Sino-Global", the "Company" or "us"), a non-asset based global shipping and freight logistic integrated solution provider, today announced its financial and operating results for the quarter ended September 30, 2016. The Company has also provided extensive industry information on its Form 10-Q filed this afternoon, and management encourages investors to review the document for both background on Sino-Global's business and history as well as strategy for the coming fiscal year.
Management Comments
Mr. Lei Cao, Chief Executive Officer of Sino-Global, stated, "We continue to operate in an industry that is always changing, and Sino-Global must evolve to meet the needs of the market. We have maintained the Company's ultimate goal of alleviating the challenge of logistics across multiple regions throughout the world and, in August, we announced the development of an internet-based application that will provide a full-service logistics platform between the US and China to short-haul trucking companies in the US. Our Company offers a unique value proposition that is well-equipped to help connect logistics and supply chains. By the end of this calendar year, Sino-Global expects to launch a fully functional internet-based portal where shippers can connect with independent trucking organizations. We will manage this portal and provide a one-stop shop where both parties can directly communicate for the delivery of shipments. We have designed the system to enhance productivity and convenience for our customers and partners while providing Sino-Global with a steady fee income from providing the connection. We are excited about the launch and in the fiscal year 2017 first quarter, we began to recognize revenues from freight logistic services. In the next few months we expect to partner with a number of trucking operators as we rollout the portal and enhance its functionality. We will launch a new Sino-Global website highlighting this endeavor and outlining our future plans for the fiscal year 2017 and beyond. We intend to continue to maintain an active dialogue with our shareholders throughout the process and can say with confidence that what we are building has all the ingredients required for long-term success and value creation for our shareholders."
Fiscal Year 2017 First Quarter Financial and Operating Highlights (all comparisons to the same quarter in the prior year)
The following table presents summary information by segment for the three months ended September 30, 2016 and 2015:
For the Three Months Ended September 30, 2016 |
||||||||||
Shipping |
Shipping & |
Inland |
Freight |
Total |
||||||
Revenues |
$ |
- |
$ |
- |
$ |
1,485,735 |
$ |
458,667 |
$ |
1,944,402 |
Cost of revenues |
$ |
- |
$ |
- |
$ |
104,001 |
$ |
202,338 |
$ |
306,339 |
Gross profit |
$ |
- |
$ |
- |
$ |
1,381,734 |
$ |
256,329 |
$ |
1,638,063 |
Depreciation and amortization |
$ |
- |
$ |
- |
$ |
7,972 |
$ |
5,370 |
$ |
13,342 |
Total capital expenditures |
$ |
- |
$ |
- |
$ |
- |
$ |
- |
$ |
- |
Total assets |
$ |
- |
$ |
- |
$ |
9,331,229 |
$ |
163,112 |
$ |
9,494,341 |
Gross margin |
93.0% |
55.9% |
84.2% |
|||||||
For the Three Months Ended September 30, 2015 |
||||||||||
Shipping |
Shipping & |
Inland |
Freight |
Total |
||||||
Revenues |
$ |
1,059,385 |
$ |
446,218 |
$ |
1,193,615 |
$ |
- |
$ |
2,699,218 |
Cost of revenues |
$ |
847,613 |
$ |
204,510 |
$ |
188,553 |
$ |
- |
$ |
1,240,676 |
Gross profit |
$ |
211,772 |
$ |
241,708 |
$ |
1,005,062 |
$ |
- |
$ |
1,458,542 |
Depreciation and amortization |
$ |
9,910 |
$ |
176 |
$ |
5,266 |
$ |
- |
$ |
15,352 |
Total capital expenditures |
$ |
927 |
$ |
- |
$ |
- |
$ |
- |
$ |
927 |
Total assets |
$ |
11,346,211 |
$ |
808,520 |
$ |
138,212 |
$ |
- |
$ |
12,292,943 |
Gross Margin |
20.0% |
54.2% |
84.2% |
54.0% |
[TP1]This number is the net increase in cash and cash equivalents during the three months. According to our 10Q of Sep 2015, it's $288,141. And $263,883 was the net cash provided by operating activities.
Balance Sheet Information
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 worth of its common stock in open market transactions or in privately negotiated transactions . The plan expired October 19, 2016.
In summary, the Company had repurchased a total of 50,306 common shares at an average stock price of $0.89 per share as of September 30, 2016.
About Sino-Global Shipping America, Ltd.
Sino-Global Shipping America, Ltd., a Virginia corporation, is a non-asset based global shipping and freight logistic integrated solution provider. Sino-Global provides tailored solutions and value added services to its shipping and freight customers to drive effectiveness and control in related links throughout entire logistic chain. 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 |
|||||
(UNAUDITED) |
|||||
For the Three Months Ended September 30, |
|||||
2016 |
2015 |
||||
Net revenues |
$ |
1,944,402 |
$ |
2,699,218 |
|
Cost of revenues |
(306,339) |
(1,240,676) |
|||
Gross profit |
1,638,063 |
1,458,542 |
|||
General and administrative expenses |
(859,914) |
(930,842) |
|||
Selling expenses |
(65,309) |
(14,623) |
|||
Total operating expenses |
(925,223) |
(945,465) |
|||
Operating income |
712,840 |
513,077 |
|||
Financial expense, net |
(3,434) |
(117,207) |
|||
Total other expense |
(3,434) |
(117,207) |
|||
Net income before provision for income taxes |
709,406 |
395,870 |
|||
Income tax expense |
(71,621) |
(240,822) |
|||
Net income |
637,785 |
155,048 |
|||
Net loss attributable to non-controlling interest |
(7,935) |
(29,110) |
|||
Net income attributable to Sino-Global Shipping America, Ltd. |
$ |
645,720 |
$ |
184,158 |
|
Comprehensive income |
|||||
Net income |
$ |
637,785 |
$ |
155,048 |
|
Foreign currency translation (loss) gain |
(14,570) |
(120,636) |
|||
Comprehensive income |
623,215 |
34,412 |
|||
Less: Comprehensive income (loss) attributable to non-controlling interest |
2,609 |
(58,532) |
|||
Comprehensive income attributable to Sino-Global Shipping America Ltd. |
$ |
620,606 |
$ |
92,944 |
|
Earnings per share |
|||||
-Basic and diluted |
$ |
0.08 |
$ |
0.02 |
|
Weighted average number of common shares used in computation |
|||||
-Basic and diluted |
8,280,535 |
8,321,928 |
|||
SINO-GLOBAL SHIPPING AMERICA, LTD. AND AFFILIATES |
|||||
CONDENSED CONSOLIDATED BALANCE SHEETS |
|||||
(UNAUDITED) |
|||||
September 30, |
June 30, |
||||
2016 |
2016 |
||||
Assets |
|||||
Current assets |
|||||
Cash and cash equivalents |
$ |
2,896,265 |
$ |
1,385,994 |
|
Accounts receivable, less allowance for doubtful accounts of $97,534 and $207,028 as of September 30, 2016 and June 30, 2016, respectively |
778,491 |
2,333,024 |
|||
Other receivables, less allowance for doubtful accounts of $145,242 and $145,186 as of September 30, 2016 and June 30, 2016, respectively |
191,084 |
290,907 |
|||
Advances to suppliers |
3,615,343 |
2,192,910 |
|||
Prepaid expense and other current assets |
562,723 |
826,631 |
|||
Due from related parties |
1,117,695 |
1,622,519 |
|||
Total Current Assets |
9,161,601 |
8,651,985 |
|||
Property and equipment, net |
162,759 |
176,367 |
|||
Prepaid expenses |
122,920 |
178,982 |
|||
Other long-term assets |
47,061 |
46,810 |
|||
Total Assets |
$ |
9,494,341 |
$ |
9,054,144 |
|
Liabilities and Equity |
|||||
Current Liabilities |
|||||
Advances from customers |
$ |
24,377 |
$ |
24,373 |
|
Accounts payable |
6,832 |
489,490 |
|||
Taxes payable |
1,713,337 |
1,637,197 |
|||
Accrued expenses and other current liabilities |
490,488 |
286,322 |
|||
Total Current Liabilities |
2,235,034 |
2,437,382 |
|||
Total Liabilities |
2,235,034 |
2,437,382 |
|||
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; 8,456,032 and 8,456,032 shares issued as of September 30, 2016 and June 30, 2016; 8,280,535 and 8,280,535 outstanding as of September 30, 2016 and June 30, 2016, respectively |
15,500,391 |
15,500,391 |
|||
Additional paid-in capital |
1,160,292 |
1,140,962 |
|||
Treasury stock, at cost - 175,497 and 175,497 shares as of September 30, 2016 and June 30, 2016 |
(417,538) |
(417,538) |
|||
Accumulated deficit |
(3,873,079) |
(4,518,799) |
|||
Accumulated other comprehensive loss |
(306,021) |
(280,907) |
|||
Total Sino-Global Shipping America Ltd. Stockholders' Equity |
12,064,045 |
11,424,109 |
|||
Non-controlling Interest |
(4,804,738) |
(4,807,347) |
|||
Total Equity |
7,259,307 |
6,616,762 |
|||
Total Liabilities and Equity |
$ |
9,494,341 |
$ |
9,054,144 |
|
SINO-GLOBAL SHIPPING AMERICA LTD. AND AFFILIATE CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) |
|||||||||||
For the three months ended September 30, |
|||||||||||
2016 |
2015 |
||||||||||
Operating Activities |
|||||||||||
Net income |
$ |
637,785 |
$ |
155,048 |
|||||||
Adjustment to reconcile net income to net cash provided by (used in) operating activities |
|||||||||||
Stock-based compensation expense |
19,330 |
- |
|||||||||
Amortization of stock-based compensation to consultants |
398,996 |
246,125 |
|||||||||
Depreciation and amortization |
13,342 |
15,352 |
|||||||||
Recovery of doubtful accounts |
(109,693) |
(14,415) |
|||||||||
Deferred tax benefit |
- |
(19,000) |
|||||||||
Changes in assets and liabilities |
|||||||||||
Decrease in accounts receivable |
1,664,027 |
182,441 |
|||||||||
Decrease (increase) in other receivables |
99,823 |
(155,078) |
|||||||||
Increase in advances to suppliers |
(1,422,433) |
(6,032) |
|||||||||
Decrease (increase) in prepaid expense |
(74,022) |
1,120 |
|||||||||
Decrease (increase) in other assets |
(5,252) |
715 |
|||||||||
Decrease (increase) in due from related parties |
504,824 |
(485,876) |
|||||||||
Decrease in advances from customers |
- |
(100,369) |
|||||||||
Decrease in accounts payable |
(482,658) |
(352,263) |
|||||||||
Increase in taxes payable |
76,140 |
321,313 |
|||||||||
Increase (decrease) in accrued expenses and other current liabilities |
204,165 |
(52,964) |
|||||||||
Net cash provided by (used in) operating activities |
1,524,374 |
(263,883) |
|||||||||
Investing Activities |
|||||||||||
Acquisitions of property and equipment |
- |
(927) |
|||||||||
Net cash used in investing activities |
- |
(927) |
|||||||||
Financing Activities |
|||||||||||
Proceeds from issuance of common stock, net |
- |
632,264 |
|||||||||
Net cash provided by financing activities |
- |
632,264 |
|||||||||
Effect of exchange rate fluctuations on cash and cash equivalents |
(14,103) |
(79,313) |
|||||||||
Net increase in cash and cash equivalents |
1,510,271 |
288,141 |
|||||||||
Cash and cash equivalents at beginning of period |
1,385,994 |
730,322 |
|||||||||
- |
|||||||||||
Cash and cash equivalents at end of period |
$ |
2,896,265 |
$ |
1,018,463 |
|||||||
Supplemental information |
|||||||||||
Income taxes paid |
$ |
6,446 |
$ |
- |
|||||||
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/sino-global-announces-2017-first-quarter-financial-results-highlighted-by-progress-in-freight-logistics-services-and-increase-in-free-cash-flow-300361924.html