Sino-Global Announces Fiscal 2019 First Quarter Financial Results
ROSLYN, N.Y., Nov. 14, 2018 /PRNewswire/ -- Sino-Global Shipping America, Ltd. (NASDAQ: SINO) ("Sino-Global", the "Company", "our", "we" or "us"), a logistics integrated solutions provider engaged in non-asset based global shipping, freight logistics, and inland transportation management and related services, today announced its financial and operating results for the first quarter of the fiscal year 2019.
The Company has also provided an update on its Quarterly report on Form 10-Q filed this morning with the U.S. Securities and Exchange Commission. Management encourages investors to review this filing for more details of the Company's financial results for the period.
Management Comments – Highlights in First Quarter of Fiscal 2019
Mr. Lei Cao, Chairman and Chief Executive Officer of Sino-Global commented, "We were pleased to maintain solid revenue growth while concentrating on the expansion of our shipping agency business. Over the past years, we have examined global trading environments, and feel that this adjustment in our business provides the most upside potential considering the impact of trade policy changes. Our unique relationships and capabilities provide Sino-Global with a distinctive competitive advantage given the fragmented nature of the industry. We are one of the few shipping agents specialized in providing a full range of general shipping agency services in China and the only shipping agency company listed on a major stock exchange in the U.S. We have an excellent online logistics platform that we have developed and feel that we can align this use of technology with expertise and relationships with larger global shippers. Our plan is to develop a shipping agency network in China and South East Asia for the next three years and to expand our shipping agency network worldwide through acquisitions or strategic partnerships with other shipping agencies. In the first quarter, we continued to pursue new partnership arrangements and will continue to update investors as we progress."
Fiscal 2019 First Quarter and Subsequent Operating Highlights
- On November 1, 2018, the Company signed a five-year strategic cooperation agreement with a Hong Kong listed Company, Sinco Pharmaceuticals Holdings Ltd ("Sinco"), pursuant to which both companies will contribute resources and expertise to develop cold chain logistics in China.
- On September 3, 2018, Sino-Global entered into a co-operation agreement with Ningbo Far-East Universal Shipping Agency Co., Ltd ("Ningbo Far-East") to set up a joint venture in Hong Kong to engage in worldwide shipping agency and management business. The Company shall have 51% ownership in the joint venture. Ningbo Far-East is one of the top ranking shipping agencies for private enterprises in Ningbo and Zhoushan ports.
Fiscal Year 2019 First Quarter Financial Review
- Total revenues increased by 20.8% to approximately $6.5 million for the three month period ended September 30, 2018, compared to approximately $5.4 million in the period ended September 30, 2017. This increase was due to the Company's business development efforts in freight logistics.
- The Company's gross profit for the period was approximately $1.4 million, compared to $1.7 million for the same period in the prior year. Gross profit margin during the period was 21.8% compared to 31.9% for the same period last year.
- The operating loss for the three months ended September 30, 2018 was approximately $1.4 million, compared to an operating income of approximately $0.9 million for the same period ended September 30, 2017. The operating loss was mainly due to increases in selling, general and administrative expenses (SG&A expenses), which included increases in stock compensation and certain provisions for double accounts due to slower collections from customers in the inland transportation segment. The Company has maintained long-term relationships with certain large customers and continues to monitor the collection closely with respect to its trade accounts receivable. For the three months ended September 30, 2018, provision for doubtful accounts was $871,081. For the same period in 2017, recovery of doubtful accounts $24,536 was reocrded due to collection of accounts receivable which the Company made a provision during previous period. As the Company continues to maintain long-standing relationships with its customers, monitor payments closely and does not believe there are any significant collection issues with respect to trade accounts receivable.
- For the three months ended September 30, 2018, the Company reported a net loss of approximately $1.3 million, or $(0.10) per diluted share based on weighted average diluted shares outstanding of 13,145,535, compared to a net income of approximately $0.6 million, or $0.07 per diluted share based on weighted average diluted shares outstanding of 10,157,625, for the same period in prior year. The decrease was due to the increase in SG&A expenses discussed above.
The following tables present summary information by segments for the three months ended September 30, 2018 and 2017:
For the Three Months Ended September 30, 2018 |
||||||||||||
Inland |
Freight |
Container |
Total |
|||||||||
Revenues |
||||||||||||
- Related party |
$ |
322,000 |
$ |
- |
$ |
- |
$ |
322,000 |
||||
- Third parties |
$ |
598,000 |
$ |
5,487,553 |
$ |
91,980 |
$ |
6,177,533 |
||||
Total |
$ |
920,000 |
$ |
5,487,553 |
$ |
91,980 |
$ |
6,499,533 |
||||
Cost of revenues |
$ |
59,874 |
$ |
4,965,992 |
$ |
57,966 |
$ |
5,083,832 |
||||
Gross profit |
$ |
860,126 |
$ |
521,561 |
$ |
34,014 |
$ |
1,415,701 |
||||
Depreciation and amortization |
$ |
20,488 |
$ |
476 |
$ |
4,751 |
$ |
25,715 |
||||
Total capital expenditures |
$ |
- |
$ |
- |
$ |
830 |
$ |
830 |
||||
Gross profit margin |
93.5 |
% |
9.5 |
% |
37.0 |
% |
21.8 |
% |
||||
For the Three Months Ended September 30, 2017 |
||||||||||||
Inland |
Freight |
Container |
Total |
|||||||||
Revenues |
||||||||||||
- Related party |
$ |
565,160 |
$ |
- |
$ |
- |
$ |
565,160 |
||||
- Third parties |
$ |
853,306 |
$ |
3,508,704 |
$ |
452,841 |
$ |
4,814,851 |
||||
Total revenues |
$ |
1,418,466 |
$ |
3,508,704 |
$ |
452,841 |
$ |
5,380,011 |
||||
Cost of revenues |
$ |
182,150 |
$ |
3,140,592 |
$ |
343,176 |
$ |
3,665,918 |
||||
Gross profit |
$ |
1,236,316 |
$ |
368,112 |
$ |
109,665 |
$ |
1,714,093 |
||||
Depreciation and amortization |
$ |
7,661 |
$ |
475 |
$ |
5,067 |
$ |
13,203 |
||||
Total capital expenditures |
$ |
- |
$ |
5,077 |
$ |
- |
$ |
5,077 |
||||
Gross profit margin |
87.2 |
% |
10.5 |
% |
24.2 |
% |
31.9 |
% |
||||
Balance Sheet Information
- As of September 30, 2018, the Company had approximately $1.0 million in cash, working capital of approximately $11.8 million and stockholders' equity of $23.3 million.
- The Company had no long-term debt.
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 business services originally. Headquartered in New York, Sino-Global has offices in mainland China, Australia, Canada and Hong Kong. The Company's current service offerings consist of 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 / [email protected]
SINO-GLOBAL SHIPPING AMERICA, LTD. AND AFFILIATES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (UNAUDITED) |
||||||
For the Three Months Ended |
||||||
September 30, |
||||||
2018 |
2017 |
|||||
Net revenues - third parties |
$ |
6,177,533 |
$ |
4,814,851 |
||
Net revenues - related party |
322,000 |
565,160 |
||||
Total revenues |
6,499,533 |
5,380,011 |
||||
Cost of revenues |
(5,083,832) |
(3,665,918) |
||||
Gross profit |
1,415,701 |
1,714,093 |
||||
General and administrative expenses |
(2,662,041) |
(763,357) |
||||
Selling expenses |
(108,369) |
(22,466) |
||||
Total operating expenses |
(2,770,410) |
(785,823) |
||||
Operating income (loss) |
(1,354,709) |
928,270 |
||||
Financial income, net |
712 |
84,796 |
||||
Net income (loss) before provision for income taxes |
(1,353,997) |
1,013,066 |
||||
Income tax benefit (expense) |
66,466 |
(296,429) |
||||
Net income (loss) |
(1,287,531) |
716,637 |
||||
Net income attributable to non-controlling interest |
29,231 |
99,448 |
||||
Net income (loss) attributable to Sino-Global Shipping America, Ltd. |
$ |
(1,316,762) |
$ |
617,189 |
||
Comprehensive income (loss) |
||||||
Net income (loss) |
$ |
(1,287,531) |
$ |
716,637 |
||
Other comprehensive income (loss) - foreign currency |
(462,162) |
47,717 |
||||
Comprehensive income (loss) |
(1,749,693) |
764,354 |
||||
Less: Comprehensive income attributable to non-controlling interest |
106,725 |
40,747 |
||||
Comprehensive income (loss) attributable to Sino-Global Shipping America, Ltd. |
$ |
(1,856,418) |
$ |
723,607 |
||
Earnings (loss) per share |
||||||
Basic |
$ |
(0.10) |
$ |
0.07 |
||
Diluted |
$ |
(0.10) |
$ |
0.07 |
||
Weighted average number of common shares used in computation |
||||||
Basic |
13,145,535 |
10,105,535 |
||||
Diluted |
13,145,535 |
10,157,625 |
||||
SINO-GLOBAL SHIPPING AMERICA, LTD. AND AFFILIATES CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) |
|||||
September 30, |
June 30, |
||||
2018 |
2018 |
||||
Assets |
|||||
Current assets |
|||||
Cash |
$ |
987,031 |
$ |
7,098,259 |
|
Accounts receivable, less allowance for doubtful accounts of $2,635,206 and $1,682,228 as of September 30, 2018 and June 30, 2018, respectively |
11,200,914 |
8,428,853 |
|||
Other receivables, less allowance for doubtful accounts of $145,231 and $145,176 as of September 30, 2018 and June 30, 2018, respectively |
47,274 |
69,239 |
|||
Advances to suppliers-third parties |
1,492,091 |
704,878 |
|||
Advances to suppliers-related party |
- |
3,414,619 |
|||
Prepaid expenses |
453,858 |
588,439 |
|||
Due from a related party |
1,361,330 |
2,087,994 |
|||
Total Current Assets |
15,542,498 |
22,392,281 |
|||
Property and equipment, net |
908,298 |
956,429 |
|||
Intangible assets, net |
137,222 |
153,056 |
|||
Prepaid expenses and other assets |
1,862,359 |
1,878,258 |
|||
Other long-term assets - deposits |
3,053,182 |
143,303 |
|||
Deferred tax assets, net |
829,000 |
634,500 |
|||
Total Assets |
$ |
22,332,559 |
$ |
26,157,827 |
|
Liabilities and Equity |
|||||
Current Liabilities |
|||||
Advances from customers |
$ |
170,239 |
$ |
415,385 |
|
Accounts payable |
470,720 |
3,225,661 |
|||
Taxes payable |
2,658,947 |
2,700,619 |
|||
Accrued expenses and other current liabilities |
429,864 |
280,888 |
|||
Total current liabilities |
3,729,770 |
6,622,553 |
|||
Total liabilities |
3,729,770 |
6,622,553 |
|||
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; 13,751,032 and 13,271,032 shares issued as of September 30, 2018 and June 30, 2018, respectively; 13,575,535 and 13,095,535 outstanding as of September 30, 2018 and June 30, 2018, respectively |
24,253,830 |
23,717,330 |
|||
Additional paid-in capital |
2,036,281 |
1,755,573 |
|||
Treasury stock, at cost, 175,497 shares as of September 30, 2018 and June 30, 2018 |
(417,538) |
(417,538) |
|||
Accumulated deficit |
(1,751,618) |
(434,856) |
|||
Accumulated other comprehensive loss |
(812,063) |
(272,407) |
|||
Total Sino-Global Shipping America Ltd. Stockholders' Equity |
23,308,892 |
24,348,102 |
|||
Non-controlling Interest |
(4,706,103) |
(4,812,828) |
|||
Total Equity |
18,602,789 |
19,535,274 |
|||
Total Liabilities and Equity |
$ |
22,332,559 |
$ |
26,157,827 |
|
SINO-GLOBAL SHIPPING AMERICA, LTD. AND AFFILIATES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) |
||||||
For the Three Months Ended |
||||||
September 30, |
||||||
2018 |
2017 |
|||||
Operating Activities |
||||||
Net income (loss) |
$ |
(1,287,531) |
$ |
716,637 |
||
Adjustments to reconcile net income (loss) to net cash used in operating activities: |
||||||
Stock-based compensation - employees |
473,000 |
- |
||||
Stock-based compensation - consultants |
63,500 |
52,709 |
||||
Amortization of stock - based compensation to management and employees |
91,000 |
9,665 |
||||
Amortization of stock - based compensation to consultants |
189,708 |
- |
||||
Depreciation and amortization |
25,715 |
13,203 |
||||
Provision for (recovery of) doubtful accounts |
871,081 |
(24,536) |
||||
Deferred tax provision (benefit) |
(194,500) |
99,900 |
||||
Changes in assets and liabilities |
||||||
Accounts receivable |
(3,709,059) |
(1,711,154) |
||||
Other receivables |
67,499 |
(60,396) |
||||
Advances to suppliers-third parties |
(789,150) |
20,481 |
||||
Advances to suppliers-related party |
3,322,210 |
- |
||||
Prepaid expenses |
(290,651) |
(50,390) |
||||
Other long-term assets - deposits |
(2,510,665) |
- |
||||
Due from related parties |
807,405 |
(570,000) |
||||
Advances from customers |
(250,650) |
17,410 |
||||
Accounts payable |
(2,804,782) |
661,628 |
||||
Taxes payable |
(35,535) |
146,104 |
||||
Due to related parties |
- |
(73,462) |
||||
Accrued expenses and other current liabilities |
122,962 |
(68,288) |
||||
Net cash used in operating activities |
(5,838,443) |
(820,489) |
||||
Investing Activities |
||||||
Acquisition of property and equipment |
(830) |
(5,077) |
||||
Net cash used in investing activities |
(830) |
(5,077) |
||||
Effect of exchange rate fluctuations on cash |
(271,955) |
19,210 |
||||
Net decrease in cash |
(6,111,228) |
(806,356) |
||||
Cash at beginning of period |
7,098,259 |
8,733,742 |
||||
Cash at end of period |
$ |
987,031 |
$ |
7,927,386 |
||
Supplemental information |
||||||
Income taxes paid |
$ |
9,108 |
$ |
60,162 |
||
SOURCE Sino-Global Shipping America, Ltd.
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