Sino-Global Announces Fiscal Year 2016 First Quarter Financial Results

ROSLYN, N.Y., Nov. 12, 2015 /PRNewswire/ -- Sino-Global Shipping America, Ltd. (NASDAQ: SINO) ("Sino-Global" or the "Company"), a Virginia company engaged in shipping, chartering, logistics and related services, today announced its financial results for the fiscal year 2016 first quarter ended September 30, 2015.

Fiscal Year 2016, First Quarter Highlights (all comparison to the prior year period)

• Total revenues increased by $93,293 or 3.6% to $2,699,218 from $2,605,925 for the three months ended September 30, 2014. 
• Operating costs and expenses decreased by 9.1% or $219,156.
• Gross profit improved 21.9% to $1,458,542 for the three-month period ended September 30, 2015.
• Net income for the fiscal year 2016 first quarter was $155,048.
• After the quarter end, the Company's Board of Directors approved a stock repurchase plan of up to $100,000 of Sino-Global's common stock in the quarter ending December 31, 2015. In future quarters, the Company intends to repurchase approximately 10%-15% of its quarterly net income from the most recent quarter filed until the plan expires on October 11, 2016. 

Mr. Lei Cao, Chairman and Chief Executive Officer of Sino-Global commented: "The restructuring efforts that began in fiscal year 2013 and change in our service mix have resulted in another profitable quarter for the Company. We were pleased with our results, as revenue increased 3.6% year-over-year and gross profit improved 21.9% over the prior year period. We appreciate everyone's ongoing support, during this time and are confident that as we continue to build our logistics network, the measures taken over the past several quarters combined with our strong balance sheet will all add value for our shareholders over the long-term."

Fiscal Year 2016, First Quarter Financial Review

Total revenues increased by $93,293 or 3.6% from $2,605,925 for the three months ended September 30, 2014 to $2,699,218 from the comparable period in fiscal year 2015. The rise in revenue was attributable to an increase in revenues generated from the Company's shipping and chartering services, and inland transportation management services. 

Revenue generated from each segment of the Company's operations

• Operating costs and expenses decreased by $219,156, an improvement of 9.1% for the three months ended September 30, 2015 when compared to the same period of 2014. The decrease was the result of a change in service mix year over year toward lower cost services. Operating cost and expenses consist of cost of revenues, general and administrative expenses, and selling expenses.
• Operating income was $513,077 for the three months ended September 30, 2015, compared to an operating income of $200,628 for the comparable period ended September 30, 2014. The increase was primarily attributable to the change in service mix and the contribution from shipping and chartering and inland transportation management services.
• Income tax expense for the three months ended September 30, 2015 was $240,822 after deducting $19,000 in deferred tax benefits, compared to income tax benefit of $27,255 for the same period of the prior year. The increase in income tax expense was the result of a larger taxable base attributable to the increase in income from the inland transportation management segment of the Company.
• For the three months ended September 30, 2015, net income was $155,048, compared to net income of $165,501 for the three months ended September 30, 2014. The decrease in net income for the period was the result of a rise in income tax expense and also attributable to an increase of $54,825 in financial expense, which reflects to impact of the foreign currency exchange for all segments of the Company's operations.

Balance Sheet Information

As of September 30, 2015, the Company had $1,018,463 in cash and cash equivalents, compared to cash and cash equivalents of $730,322 at June 30, 2015. Working capital and shareholder's equity for the three months ended September 30, 2015 was $7,171,303 and $15,331,651, compared to $6,191,644 and $14,606,444, respectively for the three month period ended June 30, 2015. 

Stock Repurchase Plan Update

On October 11, 2015, Sino-Global's Board of Directors approved a stock repurchase program, in accordance with the retirement method, authorizing the repurchase of up to $100,000 of its common stock during the quarter ending December 31, 2015. Thereafter the Company may repurchase an aggregate value of shares per quarter equal to 10% to 15% of Sino-Global's quarterly net income for which the most recent quarterly or annual report has been filed. The plan is set to expire on October 11, 2016. 

The Company has since repurchased 12,266 shares of common stock at an average stock price of $$0.8319 per share, as of the date of this release. 

Subsequent Activity

As previously announced, the Company received notification from The Nasdaq Stock Market stating that for the previous 30 consecutive business days, the bid price of the Company's common stock had closed below the minimum $1.00 per share requirement.  The letter has no immediate effect on the listing of the Company's common stock and management intends to resolve the situation to allow for continued listing on The Nasdaq Capital Market.

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 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 services, shipping and chartering services, inland transportation management services and ship management services. Additional information about Sino-Global can be found on the Company's corporate website at www.sino-global.com.

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.

Contact Information

The Equity Group Inc.
Terry Downs
Associate
(212)-836-9615 / [email protected]

SOURCE Sino-Global Shipping America, Ltd.