2014

Sterling Consolidated Announces Second Quarter 2013 Results

NEPTUNE, N.J., Aug. 15, 2013 /PRNewswire/ -- Sterling Consolidated Corp. (OTCBB: STCC), a leading supplier of hydraulic and pneumatic seals to the automotive and industrial marketplace, today reported its results for the second quarter ended June 30, 2013.

Key Highlights:

  • Formed Acquisition Committee as the Company looks to consolidate the highly fragmented O-ring distributor market
  • Identified several strategic targets for acquisition
  • Announced the sale of its non-strategic Cliffwood Beach, NJ property which allowed the Company to retire nearly 50% of its secured debt

Revenues for the second quarter of 2013 were $1,500,809 million, up slightly compared to $1,471,319 million for the same period in 2012. Gross profit for the second quarter of 2013 was $484,912, a 23% increase from $394,582 for the same period in 2012.

The Company's operating loss for the second quarter of 2013 was $140,618 compared to operating income of $113,820 in the second quarter of 2012. Net loss for the period was $107,451, or $0.0029 per diluted share, compared to net income of $38,327, or $0.001 per diluted share, in the comparable period in 2012. This decrease is due to an increase in Selling, General and Administrative expenses.  The increase in General and Administrative expenses was primarily due to an increase in administrative and professional fees related to becoming a public company.

Darren DeRosa, Chief Executive Officer of Sterling Consolidated, commented, "Since becoming a publicly traded company, we have reached a couple of significant milestones. The sale of our non-strategic property in Cliffwood Beach, NJ for $650,000 resulted in the retirement of nearly 50% of the Company's secured debt. This closing gave way to the formation of our Acquisition Committee last month and has allowed us to be aggressive as we strategically search, review and approve potential acquisition targets."

Mr. DeRosa continued, "At this exciting time, we are in an excellent position to consolidate small O-ring distributors that will contribute to our top and bottom lines. Our Acquisition Committee has already identified several potential acquisition candidates and we are in deep discussions with O-ring distributors that will complement the Company's goals of expanding our geographic footprint and strategically growing our business."

To be added to the Sterling Consolidated investor email list, please email pcarlson@kcsa.com with STCC in the subject line.

About Sterling Consolidated Corp.

Sterling Consolidated Corp., through its wholly-owned subsidiary, Sterling Seal and Supply has been a leading supplier of hydraulic and pneumatic seals to the automotive and industrial marketplace for more than 40 years. Through a combination of leveraging its logistical expertise and sophisticated, experienced management, the company intends to be an active and strategic consolidator of small- and mid-sized businesses within the highly-fragmented, multi-billion dollar seal industry. Currently serving more than 3,000 customers, Sterling offers acquisition targets a unique growth opportunity and competitive advantage through logistical expertise, strong regional branding and industry-specific distribution centers.

Forward-looking Statements

This release contains statements that constitute forward-looking statements. These statements appear in a number of places in this release and include all statements that are not statements of historical fact regarding the intent, belief or current expectations of the Company, its directors or its officers with respect to, among other things: (i) the Company's financing plans; (ii) trends affecting the Company's financial condition or results of operations; (iii) the Company's growth strategy and operating strategy; and (iv) the declaration and payment of dividends. The words "may," "would," "will," "expect," "estimate," "anticipate," "believe," "intend," and similar expressions and variations thereof are intended to identify forward-looking statements. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, many of which are beyond the Company's ability to control, and that actual results may differ materially from those projected in the forward-looking statements as a result of various factors.

STERLING CONSOLIDATED CORP AND SUBSIDIARIES




CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS




(Unaudited)





For the Three Months


Ended June 30,





2013

2012




Revenues



O-rings and rubber product sales

$          1,448,750

$          1,382,072

Freight services

42,039

57,101

Rental services

10,020

32,146

Total revenues

$          1,500,809

$          1,471,319




Cost of sales



Cost of goods

939,521

1,012,671

Cost of services

76,376

64,066

Total cost of sales

1,015,897

1,076,737




Gross profit

484,912

394,582




Operating expenses



Sales and marketing

11,356

10,293

General and administrative

614,174

270,469

Total operating expenses

625,530

280,762




Operating income (loss)

(140,618)

113,820




Other income and expense



Other income

3,312

10,124

Other expense

-

-

Interest expense

(32,854)

(18,330)

Total other expense

(29,542)

(8,206)




Income (loss) before provision for



income taxes

(170,160)

105,614




Provision for income taxes

(62,709)

67,287




Net income (loss)

(107,451)

38,327




Other comprehensive income (loss)



Unrealized gain (loss) on interest



rate swap contract

4,622

-

Comprehensive income (loss)

$          (102,829)

$              38,327




Net income (Loss) per share of



common stock:



Basic and diluted

$                        -

$                        -




Weighted average number of shares



outstanding



Basic and diluted

37,097,521

36,687,700







STERLING CONSOLIDATED CORP AND SUBSIDIARIES




CONDENSED CONSOLIDATED BALANCE SHEETS





June 30,

December 31,


2013

2012




ASSETS

Unaudited


Current assets



Cash and cash equivalents

$               108,027

$               115,489

Account receivable, net

843,066

871,132

Inventory, net

2,376,072

2,307,413

Notes receivable

43,201

40,601

Investment

100

75

Other current assets

-

-

Total current assets

3,370,466

3,334,710




Property and equipment, net

2,628,691

2,684,299

Intangible asset, net

-

-

Deferred tax asset

7,776

7,776




Total assets

$            6,006,933

$            6,026,785




LIABILITIES AND STOCKHOLDERS' EQUITY






Current liabilities



Accounts payable and accrued expenses

$            1,100,151

$            1,139,681

Notes payable (current portion)

138,031

130,905

Notes payable related party (current portion)

50,083

62,151

Bank line of credit

834,591

839,591

Interest rate swap contract

14,708

1,724

Other liabilities

150,263

76,971

Total current liabilities

2,287,827

2,251,023




Other liabilities



Notes payable

833,267

900,761

Notes payable (related party)

1,606,865

1,614,952

Total other liabilities

2,440,132

2,515,713




Total liabilities

4,727,959

4,766,736




Stockholders' equity



Preferred stock, $0.001 par value; 10,000,000 shares



authorized, no shares issued

-

-

Common stock, $0.001 par value; 200,000,000 shares



authorized, 37,199,040 shares issued and outstanding as



of June 30, 2013 and December 31, 2012;

37,199

37,074

Subscription receivable

-

-

Accumulated other comprehensive loss

(14,708)

(1,724)

Additional paid-in capital

1,203,392

1,175,079

Retained earnings

53,091

49,620

Total stockholders' equity

1,278,974

1,260,049




Total liabilities and stockholders' equity

$            6,006,933

$            6,026,785




 

 

 

SOURCE Sterling Consolidated Corp.




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