HONG KONG, May 12, 2011 /PRNewswire-Asia/ -- Winland Ocean Shipping Corp. (OTCBB: WLOL), a global shipping Company, today announced 2011 first quarter financial results that were affected by the downturn in the shipping market.
The Company reported that revenues decreased 2.7% to $13.3 million in the first quarter of 2011 compared with $13.6 million in the same period in 2010. The Company had a net loss of $(1.8) million compared to net income of $1.6 million for the comparable period.
The Company stated that the shipping market plunged as the Baltic Dry Index decreased 55% while fuel cost, one of the Company's main vessel operating costs, climbed 29% and 20% in MGO rate and IFO rate, respectively, for the comparable period. "In addition to the negative impact from the global shipping market," said Ms. Xue Ying, CEO. "The disposition of our former variable interest entities resulted in a $2.6 million loss from disposition resulting in our net loss in the first quarter."
"The disposal of our VIEs highlights our commitment to the core dry bulk shipping and chartering brokerage businesses," added Mr. Li Honglin, President. "Our current financial results indicate the current shipping market volatility. Our vision is to steadily expand our capacity and improve our fleet structure by constructing new vessels and by acquiring additional vessels at lower prices in light of the current slump in the shipping market. Our newly added vessels evidence our expanding strategies and confidence for breakthrough growth in a near future."
Two newly built 57,000 dwt bulk vessels were delivered to the Company and placed in operations in January and May of this year.
Description of Winland Ocean Shipping Corp.
Winland Ocean Shipping Corp. is a global shipping company with a fleet of 14 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.
See Attached Table
"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: |
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Winland Ocean Shipping Corp. |
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Tiger Cai |
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Investor Relations |
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Tel: +852-2854-9088 |
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Fax: +852-2854-9087 |
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Email: Tiger@winlandshipping.com |
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Nancy Jing |
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Chief Financial Officer |
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Tel: +1-510-589-9999 |
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Fax: +1-800-779-2319 |
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Email: nancy@winlandshipping.com |
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WINLAND OCEAN SHIPPING CORP. (FORMERLY WINLAND ONLINE SHIPPING HOLDINGS CORPORATION) AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF (LOSS) INCOME AND COMPREHENSIVE (LOSS) INCOME (UNAUDITED) |
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Three Months Ended March 31, |
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2011 |
2010 |
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REVENUES |
$ |
13,260,830 |
$ |
13,622,997 |
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COSTS AND EXPENSES |
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Vessel operating costs |
9,613,454 |
9,373,124 |
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Depreciation and amortization |
1,632,283 |
1,635,001 |
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General and administrative |
580,901 |
439,269 |
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Selling |
86,824 |
100,214 |
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TOTAL COSTS AND EXPENSES |
11,913,462 |
11,547,608 |
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OTHER EXPENSES |
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Interest expense, net |
(480,648) |
(290,170) |
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Other income (expense), net |
14,366 |
(7,295) |
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INCOME FROM CONTINUING OPERATIONS |
881,086 |
1,777,924 |
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DISCONTINUED OPERATIONS |
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Loss from disposition of discontinued operations |
2,603,403 |
- |
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Loss from discontinued operations |
112,931 |
125,702 |
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Income tax expense from discontinued operations |
9,382 |
7,939 |
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NET LOSS FROM DISCONTINUED OPERATIONS |
2,725,716 |
133,641 |
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NET (LOSS) INCOME |
(1,844,630) |
1,644,283 |
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OTHER COMPREHENSIVE INCOME |
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Foreign currency translation gain |
5,476 |
1,096 |
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COMPREHENSIVE (LOSS) INCOME |
$ |
(1,839,154) |
$ |
1,645,379 |
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