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Sino-Global Announces Fiscal 2020 Third Quarter Financial Results

Sino-Global Shipping America, Ltd.
2020-07-07 04:05 9702

ROSLYN, N.Y., July 7, 2020 /PRNewswire/ -- Sino-Global Shipping America, Ltd. (NASDAQ: SINO) ("Sino-Global", the "Company", "we", "our", or "us"), a global logistics service provider, announced its financial and operating results for its fiscal 2020 third quarter ended March 31, 2020. The Company has also provided more detailed information in its quarterly report on Form 10-Q filed today with the U.S. Securities and Exchange Commission.

Management Comments

Mr. Lei Cao, Chairman and Chief Executive Officer of Sino-Global commented, "Over the past several weeks, we have greatly expanded our ability to service the demand for exported products to China from the U.S., and have done so in a cost-effective manner with a focus on streamlined operations and free cash flow. We strengthened our management team through the appointment of Kelin Wu, secured shipping agency agreements, and chartered two vessels to meet this demand. Finally, we signed a significant MOU with a long-time partner of Sino-Global, which helps to secure potential purchases of material. We believe all of this will greatly increase the Company's revenue with high-margins, and do so with long term customers in which we have successfully worked and collected cash from in the past. The quarter ended March 31, 2020 was largely impacted by the impact on trade from delays in a U.S. / China trade agreement and COVID-19. While this confluence of factors led to a slight delay in our reporting timing, we are pleased to again become current with our filings. Going forward, we feel very well positioned to increase sales and begin to deliver profitability for our shareholders."

Recent Highlights

Fiscal Third Quarter 2020 Financial Review

  • The Company reported total revenues of $1,353,979 for the quarter ended March 31, 2020, compared to $22,773,139 reported in the same period last year. The decrease was largely due to the fact that in certain freight logistics contracts that the Company entered into with customers starting from the first quarter of fiscal year 2020, only acted as an agent and did not control the services rendered to the customers, as Sino-Global was not the primary responsible party to fulfill the services. As such revenues on these contracts are accounted for on a net basis. The decrease was also due to the decrease in revenues from inland transportation management services as service contracts with customers have expired and there was no new business for this segment.
  • The Company's gross profit for the 2020 fiscal third quarter was $464,872, compared to $1,697,944 in the same period last year. Gross profit margin during the quarter was approximately 34.3%, compared to approximately 7.5% in the same period last year. The increase was largely due to the Company's shifting of business focus towards its agency business for providing freight logistics services where the Company acted solely as an agent and did not control the services rendered to its customers.

The following tables present summary information by segment for the three months ended March 31, 2020 and March 31, 2019, respectively:

For the Three Months Ended March 31, 2020

Shipping
Agency and Management Services

Inland

Transportation Management Services

Freight
Logistics
Services

Container Trucking Services

Total

Revenues









- Related party

$

-

$

-

$

-

$

-

$

-

- Third parties

$

500,000

$

-

$

853,979

*

$

-

$

1,353,979

Total revenues

$

500,000

$

-

$

853,979

$

-

$

1,353,979

Cost of revenues

$

67,841

$

-

$

821,266

*

$

-

$

889,107

Gross profit

$

432,159

$

-

$

32,713

$

-

$

464,872

Depreciation and amortization

$

79,732

$

-

$

3,421

$

-

$

83,153

Total capital expenditures

$

-

$

-

$

-

$

-

$

-

Gross margin%

86.4

%

-

%

3.8

%

-

%

34.3

%

 

*

For certain freight logistics contracts that the Company entered into with customers starting from first quarter of fiscal year 2020, the Company (i) acts as an agent in arranging the relationship between the customer and the third-party service provider and (ii) does not control the services rendered to the customers, revenues related to these contracts are presented net of related costs. For the three months ended March 31, 2020, gross revenues and gross cost of revenues related to these contracts amounted to approximately $2.0 million and $2.0 million, respectively.

 

For the Three Months Ended March 31, 2019

Shipping
Agency and Management Services

Inland

Transportation Management Services

Freight
Logistic
Services

Container Trucking Services

Total

Revenues









- Related party

$

-

$

36,380

$

-

$

-

$

36,380

- Third parties

$

956,583

$

93,407

$

21,599,675

$

87,094

$

22,736,759

Total revenues

$

956,583

$

129,787

$

21,599,675

$

87,094

$

22,773,139

Cost of revenues

$

862,970

$

48,750

$

20,098,417

$

65,058

$

21,075,195

Gross profit

$

93,613

$

81,037

$

1,501,258

$

22,036

$

1,697,944

Depreciation and amortization

$

-

$

39,109

$

476

$

4,448

$

44,033

Total capital expenditures

$

-

$

-

$

125,806

$

8,317

$

134,123

Gross margin%

9.8

%

62.4

%

7.0

%

25.3

%

7.5

%
  • The Company had an operating loss of $4,034,743 for the three months ended March 31, 2020, compared to an operating loss of $1,229,233 for the same period in 2019.
  • For the fiscal quarter ended March 31, 2020, the Company reported net loss attributable to Sino-Global Shipping America, Ltd. of $3,818,094, or a loss of approximately $0.22 per diluted share based on approximately 17.7 million weighted average shares outstanding, compared to net loss attributable to Sino-Global Shipping America, Ltd. of $1,388,790, or a loss of approximately $0.09 per diluted share based on approximately 15.2 million weighted average shares outstanding, for the same period last year.

Balance Sheet Information

  • The Company holds no long-term debt.
  • As of March 31, 2020, the Company's working capital was $3,525,468 and the Company had cash of $143,112.
  • The Company's allowance for doubtful accounts was approximately $6.7 million as of March 31, 2020 compared with allowance of doubtful accounts of approximately $5.7 million as of June 30, 2019. As the Company continues to maintain long-standing relationships with its customers, it will work with these parties to monitor their payments closely and it does not believe that there are any significant collection issues with respect to accounts receivables, net of allowance.

About Sino-Global Shipping America, Ltd.

Founded in the United States in 2001, Sino-Global Shipping America, Ltd. is a company engaged originally in shipping, chartering, logistics and related business 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 and management, inland transportation management, freight logistics and container trucking services. Additional information about Sino-Global can be found on the Company's corporate website at www.sino-global.com. 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 sell or a solicitation of 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 U.S. 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 of 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 unless required by applicable law or regulations.

Contact Information

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

 

 


SINO-GLOBAL SHIPPING AMERICA, LTD. AND AFFILIATES

CONSOLIDATED STATEMENTS OF OPERATION AND COMPREHENSIVE LOSS

(UNAUDITED)

For the Three Months Ended

For the Nine Months Ended

March 31,

March 31,


2020

2019

2020

2019

Net revenues - third parties

$

1,353,979

$

22,736,759

$

5,161,329

$

39,354,579

Net revenues - related party

-

36,380

-

433,380

Total revenues

1,353,979

22,773,139

5,161,329

39,787,959

Cost of revenues

(889,107)

(21,075,195)

(2,328,156)

(34,715,624)

Gross profit

464,872

1,697,944

2,833,173

5,072,335












Selling expenses

(79,099)

(140,601)

(335,253)

(507,199)

General and administrative expenses

(952,661)

(1,053,903)

(2,746,180)

(3,442,695)

Impairment loss of fixed assets and intangible asset

-

-

(327,632)

-

Provision for doubtful accounts

(3,121,416)

(1,583,965)

(4,289,170)

(2,871,752)

Stock-based compensation

(346,439)

(148,708)

(1,252,756)

(2,013,292)

Total operating expenses

(4,499,615)

(2,927,177)

(8,950,991)

(8,834,938)












Operating loss

(4,034,743)

(1,229,233)

(6,117,818)

(3,762,603)












Other income, net

21,260

2,499

7,103

3,993












Net loss before provision for income taxes

(4,013,483)

(1,226,734)

(6,110,715)

(3,758,610)












Income tax expense

(189,510)

(248,820)

(204,257)

(427,333)












Net loss

(4,202,993)

(1,475,554)

(6,314,972)

(4,185,943)












Net loss attributable to non-controlling interest

(384,899)

(86,764)

(462,192)

(6,419)












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

$

(3,818,094)

$

(1,388,790)

$

(5,852,780)

$

(4,179,524)












Comprehensive loss










Net loss

$

(4,202,993)

$

(1,475,554)

$

(6,314,972)

$

(4,185,943)

Other comprehensive income (loss) - foreign currency

(112,671)

262,467

(360,132)

(306,457)

Comprehensive loss

(4,315,664)

(1,213,087)

(6,675,104)

(4,492,400)

Less: Comprehensive (loss) income attributable to non-controlling interest

(322,135)

(96,210

(350,693)

37,445

Comprehensive loss attributable to Sino-Global Shipping America, Ltd.

$

(3,993,529)

$

(1,116,877)

$

(6,324,411)

$

(4,529,845)












Loss per share










Basic and diluted

$

(0.22)

$

(0.09)

$

(0.35)

$

(0.30)












Weighted average number of common shares used in computation










Basic and diluted

17,738,157

15,245,703

16,875,173

14,045,018

 

 

SINO-GLOBAL SHIPPING AMERICA, LTD. AND AFFILIATES

CONSOLIDATED BALANCE SHEETS

(UNAUDITED)

March 31,

June 30,

2020

2019

Assets


Current assets


Cash

$

143,112

$

3,142,650

Notes receivable

-

383,792

Accounts receivable, net

1,745,672

7,045,846

Other receivables

6,486,140

4,335,715

Advances to suppliers - third parties

112,037

124,140

Prepaid expenses and other current assets

239,830

105,054

Due from related party, net

435,898

807,965

Total Current Assets

9,162,689

15,945,162






Property and equipment, net

588,514

989,910

Right-of-use assets

337,899

-

Intangible assets, net

42,222

89,722

Prepaid expenses

-

519,503

Other receivables - noncurrent

3,549,958

-

Other long-term assets - deposits

2,956,802

3,054,706

Total Assets

$

16,638,084

$

20,599,003






Liabilities and Equity










Current Liabilities




Advances from customers

$

66,987

$

68,590

Accounts payable

637,489

567,619

Lease liabilities - current

156,190

-

Taxes payable

3,290,812

3,184,895

Accrued expenses and other current liabilities

1,485,743

1,418,129

Total current liabilities

5,637,221

5,239,233






Lease liabilities - noncurrent

177,495

-






Total liabilities

5,814,716

5,239,233






Commitments and Contingencies










Equity




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

-

-

Common stock, 50,000,000 shares authorized, no par value; 18,139,037 and 16,054,534 shares issued as of March 31, 2020 and June 30, 2019, respectively; 18,139,037 and 15,879,037 shares outstanding as of March 31, 2020 and June 30, 2019, respectively

28,090,992

26,523,830

Additional paid-in capital

2,334,962

2,066,906

Subscription receivable

(114,054)

-

Treasury stock, at cost, 0 and 175,497 shares as of March 31, 2020 and June 30, 2019

-

(417,538)

Accumulated deficit

(12,821,480)

(6,968,700)

Accumulated other comprehensive loss

(1,142,737)

(671,106)

Total Sino-Global Shipping America Ltd. Stockholders' Equity

16,347,683

20,533,392






Non-controlling Interest

(5,524,315)

(5,173,622)






Total Equity

10,823,368

15,359,770






Total Liabilities and Equity

$

16,638,084

$

20,599,003

 

 

 

SINO-GLOBAL SHIPPING AMERICA, LTD. AND AFFILIATES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

For the Nine Months Ended

March 31,

2020

2019

Operating Activities




Net loss

$

(6,314,972)

$

(4,185,943)

Adjustments to reconcile net loss to net cash used in operating activities:




Stock-based compensation

1,252,756

2,013,292

Depreciation and amortization

320,272

95,313

Non-cash lease expense

113,985

-

Provision for doubtful accounts

4,289,170

2,871,752

Impairment loss of fixed assets and intangible asset

327,632

-

Deferred tax benefit

-

(208,047)

Changes in assets and liabilities




Notes receivable

386,233

(732,826)

Accounts receivable

1,051,299

(8,341,650)

Other receivables

(5,882,569)

36,014

Advances to suppliers - third parties

11,820

(410,886)

Advances to suppliers - related party

-

3,312,375

Prepaid expenses and other current assets

165,939

821,662

Other long-term assets - deposits

89,274

(2,502,946)

Due from related parties

413,408

1,552,918

Advances from customers

(1,496)

(353,696)

Accounts payable

72,772

1,336,453

Taxes payable

116,520

837,641

Lease liabilities

(118,256)

-

Accrued expenses and other current liabilities

65,094

535,921

Net cash used in operating activities

(3,641,119)

(3,322,653)






Investing Activities




Acquisition of property and equipment

(6,979)

(143,480)

Net cash used in investing activities

(6,979)

(143,480)






Financing Activities




Proceeds from issuance of common stock

885,946

500,000

Net cash provided by financing activities

885,946

500,000






Effect of exchange rate fluctuations on cash

(237,386)

(608,219)






Net decrease in cash

(2,999,538)

(3,574,352)






Cash at beginning of period

3,142,650

7,098,259






Cash at end of period

$

143,112

$

3,523,907






Supplemental information




Income taxes paid

$

38,557

$

144,018






Non-cash transactions of operating and investing activities




Transfer of prepayment to intangible asset

$

218,678

$

-

Initial recognition of right-of-use assets and lease liabilities

$

452,119

$

-

 

Cision View original content:http://www.prnewswire.com/news-releases/sino-global-announces-fiscal-2020-third-quarter-financial-results-301088568.html

Source: Sino-Global Shipping America, Ltd.
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