Sino-Global Announces Fiscal Second Quarter 2013 Financial Results

- Revenues decreased 19.9% for the second quarter ended December 31, 2012 compared to prior fiscal year -

- General and administrative expenses reduced 30.2% for the second quarter ended December 31, 2012 compared to prior fiscal year -

- Net loss improved to US$0.57 million from net loss of US$0.83 million in the second fiscal quarter of 2012 -

Feb 13, 2013, 17:00 ET from Sino-Global Shipping America, Ltd.

BEIJING, Feb. 13, 2013 /PRNewswire/ -- 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, 2012.

Financial Highlights for the Second Fiscal Quarter Ended December 30, 2012

  • Total revenues decreased 19.85% to US$6.43 million, from US$8.02 million in the second fiscal quarter ended December 31, 2012.
  • The devaluation of the US dollar against the Chinese Renminbi ("RMB") resulted in a slight reduction in gross margin from 7.11% in the second fiscal quarter of 2012 to 6.59% in the current fiscal quarter.
  • Strong internal budget controls reduced General and administrative expenses in absolute amount by 30.2% and as a percentage of total revenues by 12.91%.
  • Net loss improved to US$565,854 from net loss of US$827,385 in the second fiscal quarter of 2012.
  • Basic and diluted losses per share were US$0.10 and US$0.14 for the second fiscal quarters of 2013 and 2012, respectively.  Earnings and losses per share are adjusted for the non-controlling interest.

Mr. Cao Lei, Sino-Global's Chief Executive Officer, stated, "We continue to face headwinds in our business due to a continued slower pace of growth of the Chinese economy. Our revenues declined approximately 20% in the second quarter as a direct result from the number of ships we served, which decreased to 99 from 116 in the quarter, and the revenues per ship served."

Mr. Cao, added, "While this has been a challenging quarter for our company, we continue to seek additional opportunities to increase revenue in both China and globally. 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 leveraging our efforts in maintaining our current clients and attracting new ones, particularly by providing our agency services to vessels coming to Chinese ports and expanding business activities at loading ports in Australia, Canada, South Africa, Brazil as well as other countries with which China has major trading activities. With that in mind, our goal for fiscal 2013 is to maintain revenues equal to or slightly less than those in fiscal 2012."

Select Financial Results for the Three and Six Months Periods Ended December 31, 2012

Revenues

Total revenues decreased by 19.85% from $8,022,598 for the three months ended December 31, 2011 to $6,429,761 in the comparable three months in 2012.  The number of ships that generated revenues for Sino-Global decreased from 116 for the three months ended December 31, 2011 to 99 for the comparable quarter of fiscal 2013. In addition, the Company provided protective services to 40 ships, compared to 23 ships for the same quarter of 2011. The Company also provided loading/discharging service to 59 and 93 ships for the three months ended December 31, 2012 and 2011, respectively.  Because of the decrease in total ships served and the shift from the higher-revenue loading/discharging services to the lower-revenue protective services, our revenues decreased. Total revenues decreased by 13.86% from $16,615,305 for the six months ended December 31, 2011 to $14,311,829 in the comparable six months in 2012.  The number of ships that generated revenues for Sino-Global increased from 222 for the six-month period of fiscal 2012 to 223 for the comparable period of fiscal 2013.  Despite the increased numbers of ships the Company served, its revenues decreased.  This is because the Company provided protective services for more ships, which generated significantly lower revenues per ship.  For the six months ended December 31, 2012, Sino-Global provided protective services for 91 ships, compared to 33 ships for the 2011 six month period.  In contrast, Sino-Global provided loading/discharging service to 132 and 189 ships for the six months December 31, 2012 and 2011, respectively.

General and Administrative Expenses

General and administrative expenses decreased by 30.20% from $1,444,702 for the three months ended December 31, 2012.  This decrease was mainly due to (1) decreased salaries and benefits for our staff to $48,845, (2) a decrease of $137,178 in business promotion, (3) decreased listing expense of $94,271. For the six months ended December 2012, general and administrative expenses decreased by 29.08% from $2,826,615 to $2,004,611.  This is mainly due to (1) decreased bad debts provision of $67,827, (2) a decrease of $409,140 in business promotion, (3) decreased listing expense of $108,527, (4) decreased salaries and benefits for our staff of $40,656. The Company will continue its budget control efforts to reduce the general and administrative expenses as a percentage of total revenues.

Selling Expenses

Selling expenses decreased by 10.45% from $108,224 for the three months ended December 31, 2011 to $96,918 for the three months ended December 31, 2012, mainly due to lower commission payments related to the sales decrease. Selling expenses decreased by 13.81% from $212,806 for the six months ended December 31, 2011 to $183,426 for the period ended December 31, 2012.  Most selling expenses are commissions paid to business partners who refer shipping agency business to Sino-Global; as our referrals decreased, our commissions paid also decreased.

Operating Loss

The Company had an operating loss of $681,558 for the three months ended December 31, 2012, compared to operating loss of $982,803 for the comparable three months in 2011.  The operating loss for the second quarter of fiscal 2012 was primarily due to the decrease in costs of revenues and general and administrative expenses.  The Company reported an operating loss of $1,000,434 for the six months ended December 31, 2012, compared to an operating loss of $1,630,809 for the comparable six months in 2011.  The operating loss for the six-month period of fiscal 2013 decreased primarily due to the reduced general and administrative expenses.

Financial Income, Net

Net financial income was $32,302 for the three months ended December 31, 2012, compared to net financial income of $144,860 for the three months ended December 31, 2011.  The net financial income was derived largely from the foreign exchange gains recognized in the financial statement consolidation.  Foreign exchange losses resulting from the settlement of foreign exchange transactions are recognized in the condensed consolidated statements of operations. Net financial income was $29,734 for the six months ended December 31, 2012, compared to net financial income of $100,857 for the six months ended December 31, 2011.  The net financial income was derived largely form the foreign exchange income recognized in the financial statement consolidation.  Foreign exchange losses resulting from the settlement of foreign exchange transactions are recognized in the condensed consolidated statements of operations.

Taxation

The Company's income tax benefits were $78,100 for the three months ended December 31, 2012, compared to income tax benefits of $1,000 for the three months ended December 31, 2012.  As the Company provided for tax benefits of $100 and deferred tax benefits of $78,000, the income tax benefits of the three months ended December 31, 2012 was $78,100.  Our income tax expense was $79,100 for the six months ended December 31, 2012, compared to income tax benefits of $24,121 for the six months ended December 31, 2011.  As we made a tax provision of $24,100 and deferred tax provision of $55,000, the income tax expense of the six month period ended December 31, 2012 was $79,100.

Net Loss

Sino reported a net loss of $565,854 for the three months ended December 31, 2012, compared to a net loss of $827,385 for the three months ended December 31, 2011.  After deduction of non-controlling interest in loss, net loss attributable to Sino-Global Shipping America, Ltd. was $291,586 for the three months ended December 31, 2012, compared to a net loss of $395,001 for the three months ended December 21, 2011.  With other comprehensive loss foreign currency translation, comprehensive loss was $285,251 for the three months ended December 31, 2012, compared to comprehensive loss of $423,625 for the three months ended December 31, 2011. The Company also had a net loss of $1,008,011 for the six months ended December 21, 2012, compared to a net loss of $1,654,325 for the six months ended December 31, 2011.  After deduction of non-controlling interest in loss, net loss attributable to Sino-Global Shipping America, Ltd. was $481,819 for the six months ended December 31, 2012, compared to a net loss of $1,060,788 for the six months ended December 31, 2011.  With other comprehensive loss foreign currency translation, comprehensive loss was $484,267 for the six months ended December 31, 2012, compared to comprehensive loss of $1,048,982 for the six months ended December 31, 2011.

Basic and diluted losses per share

Basic and diluted losses per share were US$0.10 and US$0.14 for the second fiscal quarter of 2013 and 2012, respectively. Basic and diluted losses per share for the six months ended December 31, 2012 and 2011 were US$0.17 and US$0.37, respectively. Losses per share are adjusted for the non-controlling interest.

Other Selected Data

As of December 31, 2012, Sino-Global had $885,806 in cash and cash equivalents. The Company's cash and cash equivalents primarily consist of cash on hand and cash in banks. Sino-Global has deposited approximately 91.53% of its cash in banks in the USA, Australia and Hong Kong.

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, 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 September 30, 2012, please refer to the company's filing on Form 10-Q filing or Sino-Global's web site: www.sino-global.com.

CONTACTS:

 

Mr. Mingwei Zhang, Chief Financial Officer

Stephen D. Axelrod, CFA

Sino-Global, Beijing

Wolfe Axelrod Weinberger Assoc. LLC

+86-10-6439-1888

Tel. (212) 370-4500 Fax (212) 370-4505

- Tables to Follow -

 

SINO-GLOBAL SHIPPING AMERICA, LTD. AND AFFILIATES

CONDENSED CONSOLIDATED  STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

(UNAUDITED)

For the six months ended December 31,

For the three months ended December 31,

2012

2011

2012

2011

Net Revenues

$

14,311,829

$

16,615,305

$

6,429,761

$

8,022,598

Cost of revenues

(13,124,226)

(15,206,693)

(6,006,063)

(7,452,475)

Gross profit

1,187,603

1,408,612

423,698

570,123

General and administrative expenses

(2,004,611)

(2,826,615)

(1,008,338)

(1,444,702)

Selling expenses

(183,426)

(212,806)

(96,918)

(108,224)

(2,188,037)

(3,039,421)

(1,105,256)

(1,552,926)

Operating Loss

(1,000,434)

(1,630,809)

(681,558)

(982,803)

Financial income, net

29,734

100,857

32,302

144,860

Other income, net

41,789

40,505

5,302

10,473

Loss from equity investment

-

(188,999)

-

(915)

71,523

(47,637)

37,604

154,418

Net loss before provision for income taxes

(928,911)

(1,678,446)

(643,954)

(828,385)

Income tax (expense) benefit

(79,100)

24,121

78,100

1,000

Net loss

(1,008,011)

(1,654,325)

(565,854)

(827,385)

Net loss attributed to non-controlling interest

(526,192)

(593,537)

(274,268)

(432,384)

Net loss attributable to Sino-Global Shipping America, Ltd

(481,819)

(1,060,788)

(291,586)

(395,001)

Net loss

(1,008,011)

(1,654,325)

(565,854)

(827,385)

Other comprehensive income:

Foreign currency translation adjustments

(16,923)

(3,989)

(11,104)

(37,638)

Comprehensive loss

(1,024,934)

(1,658,314)

(576,958)

(865,023)

Less: Comprehensive loss attributable to non-controlling interest

(540,667)

(609,332)

(291,707)

(441,398)

Comprehensive loss attributable to Sino-Global Shipping America Ltd.

$

(484,267)

$

(1,048,982)

$

(285,251)

$

(423,625)

Loss per share

         -Basic and diluted

$

(0.17)

$

(0.37)

$

(0.10)

$

(0.14)

Weighted average number of common shares used in computation

         -Basic and diluted

$

2,903,841

$

2,903,841

$

2,903,841

$

2,903,841

 

SINO-GLOBAL SHIPPING AMERICA, LTD. AND AFFILIATES

CONDENSED CONSOLIDATED  BALANCE SHEETS

(UNAUDITED)

December 31,

June 30,

2012

2012

Assets

Current assets

Cash and cash equivalents

$

885,806

$

4,433,333

Advances to suppliers

945,326

901,654

Accounts receivable, net

5,834,559

3,788,966

Other receivables, net

346,245

377,835

Other current assets

23,442

82,257

Prepaid taxes

26,189

27,356

Deferred tax assets

87,500

175,000

Total current assets

8,149,067

9,786,401

Property and equipment, net

349,229

415,672

Other long-term assets

19,714

30,457

Deferred tax assets - long term

376,500

344,000

Total Assets

8,894,510

10,576,530

Liabilities and Equity

Current liabilities

Advances from customers

950,256

303,437

Accounts payable

6,100,923

7,467,145

Accrued expenses

83,094

92,217

Other current liabilities

255,544

169,628

Total Current Liabilities

7,389,817

8,032,427

Total Liabilities

$

7,389,817

$

8,032,427

Commitments and Contingency

Equity

Preferred stock, 1,000,000 shares authorized, no par value;

-

-

Common stock, 10,000,000 shares authorized, no par value; 3,029,032 shares issued, 2,903,841 outstanding

$

7,709,745

$

7,709,745

Additional paid-in capital

1,191,796

1,191,796

Treasury stock, at cost - 125,191 shares

(372,527)

(372,527)

Accumulated deficit

(3,538,678)

(3,056,858)

Accumulated other comprehensive loss

(214)

16,709

Unearned Stock-based Compensation

(202,089)

(202,089)

Total Sino-Global Shipping America Ltd. Stockholders' equity

4,788,033

5,286,776

Non-Controlling interest

(3,283,340)

(2,742,673)

Total equity

1,504,693

2,544,103

Total Liabilities and  Equity

$

8,894,510

$

10,576,530

 

SOURCE Sino-Global Shipping America, Ltd.



RELATED LINKS

http://www.sino-global.com