Sino-Global Announces Fiscal Year 2016 Second Quarter Financial Results
ROSLYN, N.Y., Feb. 12, 2016 /PRNewswire/ -- Sino-Global Shipping America, Ltd. (NASDAQ: SINO) ("Sino-Global" or the "Company"), a company engaged in shipping, chartering, logistics and related services, today announced its financial results for the fiscal year 2016 second quarter ended December 31, 2015.
Fiscal Year 2016 Second Quarter Operating and Financial Highlights
(all comparisons to the prior year period)
- Total revenues were $1.6 million, compared to $3.1 million, largely due to a general economic slow-down in China and driven by additional competition within the industry, with established and new competitors offering rates that in many cases are much lower than the Company was willing to offer.
- Gross margin for the period increased to 55.7% from 45.8%, largely due to revenue from the Company's inland transportation business which provided higher margin, coupled with cost of shipping agency and ship management services.
- The Company underwent a thorough review of its receivables and after reassessing the collectability of certain past due accounts receivable, accrued approximately of $0.6 million additional bad debt reserve on accounts receivables. This contributed to an increase in general and administrative expenses during the period.
- In December 2015, the Company announced the termination of the previously announced asset purchase agreement to acquire a vessel from Rong Yao International Shipping Limited ("Rong Yao"). Under the terms of the termination agreement, 1.2 million shares of common stock that were issued in the original transaction have been returned to the Company by Rong Yao.
- Sino-Global reported an income tax expense of $0.3 million during the period compared to an income tax benefit of $0.02 million in the prior year period, largely due to a reassessment of the possibility of utilizing deferred tax assets in conjunction with the termination of the proposed vessel acquisition.
- Net loss for the second quarter of fiscal year 2016 was $1.6 million, largely as the result of a decrease in total revenue, receivables reassessment, and a rise in income tax expense.
- As of December 31, 2015, the Company had cash and cash equivalents of $1.1 million, working capital of $8.7 million and shareholder equity of $9.2 million (or $1.10 per share); compared to $0.7 million, $6.2 million, and $9.9 million, respectively, as of December 31, 2014.
- The Company holds no long-term debt.
Fiscal Year 2016, Second Quarter Financial Review
| For the Three Months Ended December 31, 2015 |
||||||||||||||||
| Shipping Agency & |
Shipping & Chartering |
Inland Transportation |
Total |
|||||||||||||
| Revenues |
$ |
489,871 |
$ |
16,000 |
$ |
1,091,080 |
$ |
1,596,951 |
||||||||
| Cost of revenues |
$ |
395,988 |
$ |
8,000 |
$ |
303,139 |
$ |
707,127 |
||||||||
| Gross profit |
$ |
93,883 |
$ |
8,000 |
$ |
787,941 |
$ |
889,824 |
||||||||
| Depreciation and amortization |
$ |
7,030 |
$ |
1,782 |
$ |
4,911 |
$ |
13,723 |
||||||||
| Total capital expenditures |
$ |
2,375 |
$ |
- |
$ |
- |
$ |
2,375 |
||||||||
| Total assets |
$ |
4,024,625 |
$ |
414,710 |
$ |
6,608,391 |
$ |
11,047,726 |
||||||||
| For the Three Months Ended December 31, 2014 |
||||||||||||||||
| Shipping Agency & |
Shipping & Chartering |
Inland Transportation |
Total |
|||||||||||||
| Revenues |
$ |
1,800,499 |
$ |
- |
$ |
1,292,081 |
$ |
3,092,580 |
||||||||
| Cost of revenues |
$ |
1,493,285 |
$ |
- |
$ |
181,576 |
$ |
1,674,861 |
||||||||
| Gross profit |
$ |
307,214 |
$ |
- |
$ |
1,110,505 |
$ |
1,417,719 |
||||||||
| Depreciation and amortization |
$ |
49,948 |
$ |
- |
$ |
2,856 |
$ |
52,804 |
||||||||
| Total capital expenditures |
$ |
11,769 |
$ |
- |
$ |
- |
$ |
11,769 |
||||||||
| Total assets |
$ |
3,510,977 |
$ |
- |
$ |
4,011,947 |
$ |
7,522,924 |
||||||||
- Total revenues were $1.6 million during the period, compared to $3.1 million in the prior year period. The decrease was due mainly to a decline in revenues generated from shipping agency services and ship management services and an environment with competitive rates.
- The Company's gross profit during the period was $0.9 million, compared to $1.4 million in the prior year period. Gross profit margin during the period improved to 55.7%, compared to 45.8%, largely as a favorable shift in service mix.
- Operating loss for the three months ended December 31, 2015 was $1.1 million, compared to operating income of $0.09 million for the comparable period ended December 31, 2014. The decrease was primarily attributable to a decline in revenue for the period and a rise in general and administrative expenses as a result of the aforementioned $0.6 million of additional bad debt reserve on accounts receivables.
- Income tax expense for the three months ended December 31, 2015 was $0.3 million, compared to income tax benefit of $0.02 million 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 and the payment of a previously deferred tax asset of $0.3 million connected with the termination of the asset purchase agreement with Rong Yao.
- For the three months ended December 31, 2015, the Company reported a net loss of $1.6 million, compared to net income of $0.07 million for the three months ended December 31, 2014.
Balance Sheet Information
As of December 31, 2015, the Company had $1.1 million in cash and cash equivalents, compared to cash and cash equivalents of $0.7 million as of June 30, 2015. Working capital and shareholder's equity at December 31, 2015 was $9.0 million and $13.9 million, compared to $6.2 million and $14.6 million, respectively, as of 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 44,706 common shares at an average stock price of $0.9231 per share, as of the date of this release.
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.net. 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 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.
Adam Prior
Senior Vice-President
(212)-836-9606 / [email protected]
| Sino-Global Shipping America, Ltd. and Affiliates |
||||||||||||||||
| For the six months Ended |
For the three months Ended |
|||||||||||||||
| 2015 |
2014 |
2015 |
2014 |
|||||||||||||
| Net revenues |
$ |
4,296,169 |
$ |
5,698,505 |
$ |
1,596,951 |
$ |
3,092,580 |
||||||||
| Cost of revenues |
(1,947,803) |
(3,084,014) |
(707,127) |
(1,674,861) |
||||||||||||
| Gross profit |
2,348,366 |
2,614,491 |
889,824 |
1,417,719 |
||||||||||||
| General and administrative expenses |
(2,894,244) |
(2,257,146) |
(1,963,402) |
(1,317,341) |
||||||||||||
| Selling expenses |
(44,125) |
(66,721) |
(29,502) |
(10,382) |
||||||||||||
| (2,938,369) |
(2,323,867) |
(1,992,904) |
(1,327,723) |
|||||||||||||
| Operating income (loss) |
(590,003) |
290,624 |
(1,103,080) |
89,996 |
||||||||||||
| Financial expense, net |
(312,983) |
(121,334) |
(195,776) |
(58,952) |
||||||||||||
| Other income (loss), net |
(4,621) |
20,488 |
(4,621) |
20,488 |
||||||||||||
| (317,604) |
(100,846) |
(200,397) |
(38,464) |
|||||||||||||
| Net income (loss) before provision for income taxes |
(907,607) |
189,778 |
(1,303,477) |
51,532 |
||||||||||||
| Income tax (expense) benefit |
(573,355) |
51,463 |
(332,533) |
24,208 |
||||||||||||
| Net income (loss) |
(1,480,962) |
241,241 |
(1,636,010) |
75,740 |
||||||||||||
| Net loss attributable to non-controlling interest |
(166,021) |
(227,640) |
(136,911) |
(60,682) |
||||||||||||
| Net income (loss) attributable to Sino-Global Shipping America, Ltd. |
$ |
(1,314,941) |
$ |
468,881 |
$ |
(1,499,099) |
$ |
136,422 |
||||||||
| Comprehensive income (loss) |
||||||||||||||||
| Net income (loss) |
$ |
(1,480,962) |
$ |
241,241 |
$ |
(1,636,010) |
$ |
75,740 |
||||||||
| Foreign currency translation (loss) gain |
(38,318) |
88,796 |
82,318 |
22,262 |
||||||||||||
| Comprehensive income (loss) |
(1,519,280) |
330,037 |
(1,553,692) |
98,002 |
||||||||||||
| Less: Comprehensive income (loss) attributable to non-controlling interest |
(869) |
(164,696) |
57,663 |
(29,472) |
||||||||||||
| Comprehensive income (loss) attributable to Sino-Global Shipping America Ltd. |
$ |
(1,518,411) |
$ |
494,733 |
$ |
(1,611,355) |
$ |
127,474 |
||||||||
| Earnings (deficit) per share |
||||||||||||||||
| -Basic and diluted |
$ |
(0.16) |
$ |
0.08 |
$ |
(0.18) |
$ |
0.02 |
||||||||
| Weighted average number of common shares used in computation |
||||||||||||||||
| -Basic and diluted |
8,377,634 |
6,054,933 |
8,433,341 |
6,200,841 |
||||||||||||
| Sino-Global Shipping America, Ltd. and Affiliates Condensed Consolidated Balance Sheets (UNAUDITED) |
||||||||
| December 31, |
June 30, |
|||||||
| 2015 |
2015 |
|||||||
| Assets |
||||||||
| Current assets |
||||||||
| Cash and cash equivalents |
$ |
1,094,576 |
$ |
730,322 |
||||
| Advances to suppliers |
1,874 |
50,975 |
||||||
| Accounts receivable, less allowance for doubtful accounts of $703,498 and $477,240 as of December 31, 2015 and June 30, 2015, respectively |
2,554,660 |
3,082,219 |
||||||
| Other receivables, less allowance for doubtful accounts of $125,149 and $241,604 as of December 31, 2015 and June 30, 2015, respectively |
513,788 |
191,972 |
||||||
| Prepaid expense and other current assets |
3,904,181 |
1,265,609 |
||||||
| Due from related parties, less allowance for doubtful accounts of $174,759 and nil as of December 31, 2015 and June 30, 2015, respectively |
2,720,246 |
2,784,591 |
||||||
| Total Current Assets |
10,789,325 |
8,105,688 |
||||||
| Property and equipment, net |
180,853 |
214,003 |
||||||
| Prepaid expenses - noncurrent |
43,109 |
436,351 |
||||||
| Other long-term assets |
34,439 |
2,773,908 |
||||||
| Deferred tax assets |
- |
280,600 |
||||||
| Total Assets |
$ |
11,047,726 |
$ |
11,810,550 |
||||
| Liabilities and Equity |
||||||||
| Advances from customers |
$ |
25,831 |
$ |
126,201 |
||||
| Accounts payable |
294,890 |
691,588 |
||||||
| Taxes payable |
1,410,157 |
996,648 |
||||||
| Accrued expenses and other current liabilities |
93,628 |
99,607 |
||||||
| Total Current Liabilities |
1,824,506 |
1,914,044 |
||||||
| Total Liabilities |
1,824,506 |
1,914,044 |
||||||
| Commitments and Contingency |
||||||||
| Equity |
||||||||
| Preferred stock, 2,000,000 shares authorized, no par value, none issued. |
- |
- |
||||||
| Common stock, 50,000,000 shares authorized, no par value; 8,790,738 and 7,996,032 shares issued as of December 31, 2015 and June 30, 2015; 8,620,841 and 7,870,841 outstanding as of December 31, 2015 and June 30, 2015 |
17,190,591 |
16,303,327 |
||||||
| Additional paid-in capital |
1,144,842 |
1,144,842 |
||||||
| Treasury stock, at cost - 169,897 and 125,191 shares as of December 31, 2015 and June 30, 2015 |
(413,797) |
(372,527) |
||||||
| Accumulated deficit |
(3,867,811) |
(2,552,870) |
||||||
| Accumulated other comprehensive income |
(112,038) |
91,432 |
||||||
| Unearned stock-based compensation |
(7,760) |
(7,760) |
||||||
| Total Sino-Global Shipping America Ltd. Stockholders' Equity |
13,934,027 |
14,606,444 |
||||||
| Non-controlling Interest |
(4,710,807) |
(4,709,938) |
||||||
| Total Equity |
9,223,220 |
9,896,506 |
||||||
| Total Liabilities and Equity |
$ |
11,047,726 |
$ |
11,810,550 |
||||
| SINO-GLOBAL SHIPPING AMERICA LTD. AND AFFILIATE |
||||||||
| For the Six Months Ended December 31, |
||||||||
| 2015 |
2014 |
|||||||
| Operating Activities |
||||||||
| Net income (loss) |
$ |
(1,480,962) |
241,241 |
|||||
| Adjustment to reconcile net income (loss) to net cash used in operating activities |
||||||||
| Amortization of stock-based compensation to consultants |
548,917 |
193,156 |
||||||
| Depreciation and amortization |
29,076 |
108,364 |
||||||
| Provision (recovery) of doubtful accounts on third party receivables |
622,556 |
(17,013) |
||||||
| Provision of doubtful accounts on related party receivable |
174,759 |
- |
||||||
| Deferred tax provision (benefit) |
280,600 |
(57,300) |
||||||
| Loss on disposition of property and equipment |
- |
1,483 |
||||||
| Changes in assets and liabilities |
||||||||
| Decrease (increase) in advances to suppliers |
49,101 |
(584,071) |
||||||
| Increase in accounts receivable |
(269,756) |
(905,468) |
||||||
| Increase in other receivables |
(654,229) |
(399,514) |
||||||
| Decrease (increase) in prepaid expense |
58,728 |
(195,831) |
||||||
| Increase in other current assets |
(28,613) |
- |
||||||
| Decrease in other long-term assets |
3,240 |
8 |
||||||
| Decrease in due from related parties |
64,345 |
806,243 |
||||||
| (Decrease) increase in advances from customers |
(100,370) |
24,638 |
||||||
| Decrease in accounts payable |
(396,698) |
(185,385) |
||||||
| Increase (decrease) in accrued expenses |
13,420 |
(145,449) |
||||||
| Increase in taxes payable |
413,510 |
67,985 |
||||||
| (Decrease) increase in other current liabilities |
(19,400) |
77,323 |
||||||
| Net cash used in operating activities |
(691,776) |
(969,590) |
||||||
| Investing Activities |
||||||||
| Acquisitions of property and equipment |
(3,302) |
(27,108) |
||||||
| Cash collected from the termination of vessel acquisition |
332,413 |
- |
||||||
| Collection of short-term loan from related party |
- |
1,119,241 |
||||||
| Net cash provided by investing activities |
329,111 |
1,092,133 |
||||||
| Financing Activities |
||||||||
| Proceeds from issuance of common stock, net |
691,600 |
967,820 |
||||||
| Purchase of common stock |
(41,270) |
- |
||||||
| Net cash provided by financing activities |
650,330 |
967,820 |
||||||
| Effect of exchange rate fluctuations on cash and cash equivalents |
76,589 |
38,853 |
||||||
| Net increase in cash and cash equivalents |
364,254 |
1,129,216 |
||||||
| Cash and cash equivalents at beginning of period |
730,322 |
902,531 |
||||||
| Cash and cash equivalents at end of period |
$ |
1,094,576 |
$ |
2,031,747 |
||||
| Supplemental information |
||||||||
| Income taxes paid |
$ |
- |
$ |
8,104 |
||||
| Non-cash transactions of operating activities: |
||||||||
| Common stock issued for vessel acquisition |
$ |
2,220,000 |
$ |
- |
||||
| Issuance of common stock to pay for professional services |
$ |
255,000 |
$ |
672,000 |
||||
| Common stock issued for LSM acquisition |
$ |
- |
$ |
83,500 |
||||
SOURCE Sino-Global Shipping America, Ltd.
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