Sino-Global Announces Fiscal Second Quarter 2012 Financial Results
- Revenues decreased 11.5% for the second quarter ended December 31, 2011 compared to prior fiscal year -
- Number of ships serviced rises, but lower revenues per ship due to changes in types of services provided and size of ships served -
- Balance sheet remains strong with $5.4 million in cash and cash equivalents -
BEIJING, Feb. 14, 2012 /PRNewswire-Asia/ -- Sino-Global Shipping America, Ltd. (Nasdaq: SINO), a leading, non-state-owned provider of shipping agency services operating primarily in China, today announced its selected financial results for its second fiscal quarter ended December 31, 2011.
Financial Highlights for the Three and Six Month Periods Ended December 31, 2011
- Revenues - Total revenues decreased by 11.51% from $9,066,226 for the three months ended December 31, 2010 to $8,022,598 in the comparable three months in 2011. Total revenues decreased by 3.77% from $17,265,570 for the six months ended December 31, 2010 to $16,615,305 in the comparable six months in 2011. The number of ships that generated revenues for us increased from 113 to 116 in the comparable three months ended December 31, 2010 and 2011, and from 216 to 222 for the comparable six months ended December 31, 2010 and 2011. The reason for the contrasting trend of increased number of ships and the decreased revenues is primarily because we provided protective services for more ships, which generated significantly lower revenues per ship. For the three months ended December 31, 2011, we provided services to 23 ships, compared to 18 ships for the same three months in 2010. For the six months ended December 31, 2011, we provided protective services to 37 ships, compared to 18 ships for the same six months in 2010. In addition, we provided services to some smaller ships which generated lower revenues.
- General and Administrative Expenses - General and administrative expenses increased by 30.34% from $1,108,445 for the three months ended December 31, 2010 to $1,444,702 for the three months ended December 31, 2011. General and administrative expenses increased by 32.35% from $2,135,644 for the six months ended December 31, 2010 to $2,826,615 for the six months ended December 31, 2011. These increases were mainly due to additional salaries and human resource expenses and business promotion and expansion expenses.
- Net Loss - Net loss was $827,385 for the quarter ended December 31, 2011, compared to net loss of $263,598 for the quarter ended December 31, 2010. After deduction of non-controlling interest in loss, net loss attributable to Sino-Global Shipping America, Ltd. was $395,001 for the three months ended December 31, 2011, compared to net loss of $113,147 for the three months ended December 31, 2010. Net loss was $1,654,325 for the six months ended December 31, 2011, compared to net loss of $465,125 for the period ended December 31, 2010. After deduction of non-controlling interest in loss, net loss attributable to Sino-Global Shipping America, Ltd. was $1,060,788 for the six months ended December 31, 2011, compared to net loss of $256,428 for the six months ended December 31, 2010.
- Basic and diluted losses per share were US$0.14 and US$0.04 for the second fiscal quarter of 2012 and 2011, respectively. Basic and diluted losses per share for the six months ended December 31, 2011 and 2010 were US$0.37 and US$0.09, respectively. Losses per share are adjusted for the non-controlling interest.
Mr. Cao Lei, Sino-Global's Chief Executive Officer, stated, "Facing a continued reduction in the number of ships discharging iron ore from Chinese ports, we conducted intensive marketing activities to increase our services to new customers. As a result, the number of ships we served increased from 216 to 222 and 113 to 116 for the six and three months ended December 31, 2010 and 2011, respectively. However, the increased number of ships served primarily used our services that generate lower agency fees per ship. Although the number of ships we served increased, our revenues decreased. While this has been a challenging quarter for our company, we have increased marketing and promotional spending to help Sino-Global seek out additional opportunities to increase revenue in both China and globally."
Mr. Cao, added, "In an uncertain economic environment, we believe that growth is a key component for us to survive and develop. As a result, we will continue our combined effort to control our budget and promote business growth. As such, top line growth will remain our first priority, and we will focus on increasing revenues from our agency services to vessels coming to Chinese ports and expanding business activities at loading ports in Australia, Canada, South Africa and Brazil."
About Sino-Global Shipping America, Ltd.
Registered in the United States in 2001 and operating primarily in mainland China, Sino-Global is a leading, non-state-owned provider of high-quality shipping agency services. With local branches in most of China's main ports and contractual arrangements in all those where it does not have branch offices, Sino-Global is able to offer efficient, high-quality shipping agency services to shipping companies entering Chinese ports. With a subsidiary in Perth, Australia, where it has a contractual relationship with a local shipping agency, Sino-Global provides complete shipping agent services to companies involved in trades between Chinese and Australian ports. Sino-Global also cooperates with companies in Hong Kong, China, India, Brazil and South Africa to offer comprehensive shipping agent services to vessels going to and from some of the world's busiest ports.
Sino-Global provides ship owners, operators and charters with comprehensive yet customized shipping agency services including intelligence, planning, real-time analysis and on-the-ground implementation and logistics support. Sino-Global has achieved both ISO9001 and UKAS certifications.
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.
For More Information
For a more detailed review of Sino-Global's financial results for fiscal second quarter ended December 31, 2011, please refer to the company's filing on Form 10-Q filing or Sino-Global's web site: www.sino-global.com.
Ms. Apple Liang
Stephen D. Axelrod, CFA
Wolfe Axelrod Weinberger Assoc. LLC
Tel. (212) 370-4500 Fax (212) 370-4505
SINO-GLOBAL SHIPPING AMERICA LTD. AND AFFILIATE
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
For the six months ended
For the three months ended
Cost of revenues
General and administrative expense
Costs and Expenses
Financial income, net
Loss from equity investment
Net loss before provision for income taxes
Income taxes benefit (expense)
Net loss attributed to non-controlling interest
Net loss attributable to Sino-Global Shipping America Ltd.
Other comprehensive income
Foreign currency translation adjustments
Comprehensive loss attributable to non-controlling interest
Comprehensive loss attributable to Sino-Global Shipping America Ltd.
Earnings (loss) per share
-Basic and diluted
Weighted average number of common shares used in computation
-Basic and diluted
SINO-GLOBAL SHIPPING AMERICA LTD. AND AFFILIATE
CONDENSED CONSOLIDATED BALANCE SHEETS
Cash and cash equivalents
Advances to suppliers
Accounts receivable, less allowance for doubtful accounts of $290,145 and $194,955 as of December 31, 2011 and June 30, 2011
Other receivables, less allowance for doubtful accounts of $80,000 as of December 31, 2011 and June 30, 2011
Prepaid expenses and other current assets
Employee loans receivable
Income tax receivable
Deferred tax assets
Total Current Assets
Property and equipment, net
Employee loans receivable less current portion
Deferred tax assets
Liabilities and Equity
Advances from customers
Income tax payable
Other current liabilities
Total Current Liabilities
Commitments and Contingencies
Preferred stock, 1,000,000 shares authorized, no par value; none issued
Common stock, 10,000,000 shares authorized, no par value; 3,029,032 shares issued and 2,903,841 outstanding
Additional paid-in capital
Treasury stock, at cost
Accumulated other comprehensive loss
Total Sino-Global Shipping America Ltd. Equity
Total Liabilities and Equity
SOURCE Sino-Global Shipping America, Ltd.
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