Sino-Global Announces Fiscal Year 2017 Third Quarter Financial Results; Highlighted by a 134.1% Increase in Total Revenue and Stronger Balance Sheet and More Free Cash Flow
ROSLYN, N.Y., May 15, 2017 /PRNewswire/ -- Sino-Global Shipping America, Ltd. (NASDAQ: SINO) ("Sino-Global", the "Company" or "us"), a company engaged in shipping, chartering, logistics and related services, today announced its financial results for the fiscal year 2017 third quarter ended March 31, 2017.
Fiscal Year 2017 Third Quarter Operating and Financial Highlights
(all comparisons to the prior year period)
- Total revenues increased 134.1% to approximately $2.75 million, as compared to $1.17 million for the prior year. The increase was primarily the result of a shift in the Company's business mix towards less cost services.
- Gross profit increased to $1.6 million as compared to $553,227 for the prior year period.
- Net income for the third quarter of fiscal year 2017 was $1.3 million compared to net loss of $854,876.
- During the quarter, the Company entered into a joint venture agreement with Jetta Global Logistics Inc. to begin providing short haul trucking transportation and logistics services to customers located in the New York and New Jersey areas.
- The Company signed a strategic cooperation agreement with China Ocean Shipping Agency Qingdao Co. Ltd. which will utilize the Company's full-service logistics platform to arrange the transport of its container shipments into U.S. ports.
- In February 2017, the Company completed a registered direct offering and sale of the Company's common stock for net proceeds of approximately $4.3 million.
- As of March 31, 2017, the Company had cash and cash equivalents of $8.8 million, working capital of $13.0 million and shareholder equity of $18.5 million; compared to $1.4 million, $6.2 million, and $11.4 million, respectively, as of June 30, 2016.
Management Comments
Mr. Lei Cao, Chief Executive Officer of Sino-Global, stated, "We had a strong quarter and nine-month period marked by significant increases in revenue and a substantial reduction in our operating expenses. We continued to make progress on the initiatives we first implemented last year with the wind down of our Shipping Agency and Ship Management services as well as the discontinuation of our shipping and charter business. The shift in business mix towards lower-cost services has resulted in profit margins for the three-month period of 58.8% as compared to 47.1% for the prior year.
"We entered several agreements over the quarter and are confident that these agreements will further solidify our efforts to grow our business and strengthen our service offerings. During the quarter, we also continued to work with our current customers to improve timely payments for outstanding receivables. Sino-Global's capital position is strong and we completed a registered direct financing during the three-month period. We intend to use the capital raised to further grow the Company and invest in the long-term future of Sino-Global."
Fiscal Year 2017, Third Quarter Financial Review
| For the three months Ended March 31, 2017 |
||||||||||||||||||||||||
| Shipping |
Shipping & |
Inland |
Freight |
Container |
Total |
|||||||||||||||||||
| Revenues |
$ |
- |
$ |
- |
$ |
1,533,840 |
$ |
827,908 |
$ |
385,863 |
$ |
2,747,611 |
||||||||||||
| Cost of revenues |
$ |
- |
$ |
- |
$ |
79,983 |
$ |
699,578 |
$ |
352,652 |
$ |
1,132,213 |
||||||||||||
| Gross profit |
$ |
- |
$ |
- |
$ |
1,453,857 |
$ |
128,330 |
$ |
33,211 |
$ |
1,615,398 |
||||||||||||
| Depreciation and amortization |
$ |
- |
$ |
- |
$ |
5,655 |
$ |
5,370 |
$ |
- |
$ |
11,025 |
||||||||||||
| Total capital expenditures |
$ |
- |
$ |
- |
$ |
55,474 |
$ |
- |
$ |
- |
$ |
55,474 |
||||||||||||
| Total Assets |
$ |
- |
$ |
- |
$ |
9,745,774 |
$ |
7,159,321 |
$ |
703,363 |
$ |
17,608,458 |
||||||||||||
| For the three months Ended March 31, 2016 |
||||||||||||||||||||||||
| Shipping |
Shipping & |
Inland |
Total |
|||||||||||||||||||||
| Revenues |
$ |
232,901 |
$ |
- |
$ |
940,868 |
$ |
1,173,769 |
||||||||||||||||
| Cost of revenues |
$ |
184,388 |
$ |
- |
$ |
436,154 |
$ |
620,542 |
||||||||||||||||
| Gross profit |
$ |
48,513 |
$ |
- |
$ |
504,714 |
$ |
553,227 |
||||||||||||||||
| Depreciation and amortization |
$ |
8,622 |
$ |
1,093 |
$ |
5,226 |
$ |
14,941 |
||||||||||||||||
| Total capital expenditures |
$ |
- |
$ |
15,360 |
$ |
- |
$ |
15,360 |
||||||||||||||||
| Total Assets |
$ |
685,601 |
$ |
540,132 |
$ |
7,422,570 |
$ |
8,648,303 |
||||||||||||||||
- Total revenues were approximately $2.75 million during the period, compared to $1.17 million in the prior year period. This increase was primarily the result of a rise in revenues for the Company's inland transportation management services, and a shift towards lower- cost services with the addition of freight logistic and container trucking services.
- The Company's gross profit for the period was $1.6 million, compared to $553,227 in the prior year period. Gross profit margin during the period increased to 58.8% from 47.1%, largely due to a decrease in the cost of revenues for the inland transportation management services segment coupled with an increase in revenue from all business segments.
- Operating income for the three months ended March 31, 2017 was $961,712, compared to operating loss of $660,740 for the comparable period ended March 31, 2016. This increase was due to revenue generated from inland transportation management services with strong margin contributions.
- For the three months ended March 31, 2017, the Company reported a net income of $1.3 million, compared to net loss of $854,876 for the three months ended March 31, 2016.
Balance Sheet Information
- As of March 31, 2017, the Company had $8.8 million in cash and cash equivalents, working capital of $13.0 million and shareholder equity of $18.5 million; compared to $1.4 million, $6.2 million, and $11.4 million, respectively, as of June 30, 2016.
- The Company holds no long-term debt.
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 business 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 inland transportation management, freight logistics and container trucking services. Additional information about Sino-Global can be found on the Company's corporate website at www.sino-global.com. 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 sell or a solicitation of 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 U.S. 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 of 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 unless required by applicable law or regulations.
Contact Information
The Equity Group Inc.
Adam Prior
Senior Vice-President
(212)-836-9606 / [email protected]
| Sino-Global Shipping America, Ltd. and Affiliates |
||||||||||||||||
| Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) |
||||||||||||||||
| (Unaudited) |
||||||||||||||||
| For the Three Months Ended |
For the Nine Months Ended |
|||||||||||||||
| 2017 |
2016 |
2017 |
2016 |
|||||||||||||
| Net revenues - third parties |
$ |
1,984,834 |
$ |
616,821 |
$ |
4,591,381 |
$ |
3,553,428 |
||||||||
| Net revenues - related party |
762,777 |
556,948 |
2,229,180 |
1,916,510 |
||||||||||||
| Total revenues |
2,747,611 |
1,173,769 |
6,820,561 |
5,469,938 |
||||||||||||
| Cost of revenues |
(1,132,213) |
(620,542) |
(1,789,348) |
(2,568,345) |
||||||||||||
| Gross profit |
1,615,398 |
553,227 |
5,031,213 |
2,901,593 |
||||||||||||
| General and administrative expenses |
(612,441) |
(1,190,614) |
(2,248,639) |
(4,084,858) |
||||||||||||
| Selling expenses |
(41,245) |
(23,353) |
(153,429) |
(67,478) |
||||||||||||
| Total operating expenses |
(653,686) |
(1,213,967) |
(2,402,068) |
(4,152,336) |
||||||||||||
| Operating income (loss) |
961,712 |
(660,740) |
2,629,145 |
(1,250,743) |
||||||||||||
| Financial income (expense), net |
34,167 |
61,183 |
(57,737) |
(251,800) |
||||||||||||
| Other income, net |
- |
10,402 |
- |
5,781 |
||||||||||||
| Total other income (expense) |
34,167 |
71,585 |
(57,737) |
(246,019) |
||||||||||||
| Net income (loss) before provision for income taxes |
995,879 |
(589,155) |
2,571,408 |
(1,496,762) |
||||||||||||
| Income tax benefit (expense) |
303,196 |
(265,721) |
158,184 |
(839,076) |
||||||||||||
| Net income (loss) |
1,299,075 |
(854,876) |
2,729,592 |
(2,335,838) |
||||||||||||
| Net income (loss) attributable to non-controlling interest |
4,021 |
(116,667) |
(104,083) |
(282,688) |
||||||||||||
| Net income (loss) attributable to Sino-Global Shipping America, Ltd. |
$ |
1,295,054 |
$ |
(738,209) |
$ |
2,833,675 |
$ |
(2,053,150) |
||||||||
| Comprehensive income (loss) |
||||||||||||||||
| Net income (loss) |
$ |
1,299,075 |
$ |
(854,876) |
$ |
2,729,592 |
$ |
(2,335,838) |
||||||||
| Other comprehensive income (loss) - foreign currency translation gain (loss) |
4,871 |
(7,740) |
(114,011) |
(46,058) |
||||||||||||
| Comprehensive income (loss) |
1,303,946 |
(862,616) |
2,615,581 |
(2,381,896) |
||||||||||||
| Less: Comprehensive income (loss) attributable to non-controlling interest |
(19,419) |
(141,532) |
4,702 |
(142,401) |
||||||||||||
| Comprehensive income (loss) attributable to Sino-Global Shipping America Ltd. |
$ |
1,323,365 |
$ |
(721,084) |
$ |
2,610,879 |
$ |
(2,239,495) |
||||||||
| Earnings (loss) per share |
||||||||||||||||
| -Basic |
$ |
0.14 |
$ |
(0.09) |
$ |
0.33 |
$ |
(0.25) |
||||||||
| -Diluted |
$ |
0.14 |
$ |
(0.09) |
$ |
0.33 |
$ |
(0.25) |
||||||||
| Weighted average number of common shares used in computation |
||||||||||||||||
| -Basic |
8,994,146 |
8,337,325 |
8,514,080 |
8,364,296 |
||||||||||||
| -Diluted |
9,028,928 |
8,337,325 |
8,534,701 |
8,364,296 |
||||||||||||
| Sino-Global Shipping America, Ltd. And Affiliates |
||||||||
| Condensed Consolidated Balance Sheets |
||||||||
| (Unaudited) |
||||||||
| March 31, |
June 30, |
|||||||
| 2017 |
2016 |
|||||||
| Assets |
||||||||
| Current assets |
||||||||
| Cash and cash equivalents |
$ |
8,840,189 |
$ |
1,385,994 |
||||
| Accounts receivable, less allowance for doubtful accounts of $97,111 and $207,028 as of March 31, 2017 and June 30, 2016, respectively |
1,883,119 |
2,333,024 |
||||||
| Other receivables, less allowance for doubtful accounts of $145,235 and $145,186 as of March 31, 2017 and June 30, 2016, respectively |
103,325 |
290,907 |
||||||
| Advances to suppliers |
1,325,272 |
2,192,910 |
||||||
| Prepaid expenses and other current assets |
355,442 |
826,631 |
||||||
| Due from related parties |
4,406,186 |
1,622,519 |
||||||
| Total Current Assets |
16,913,533 |
8,651,985 |
||||||
| Property and equipment, net |
196,845 |
176,367 |
||||||
| Prepaid expenses |
49,699 |
178,982 |
||||||
| Other long-term assets |
60,481 |
46,810 |
||||||
| Deferred tax assets |
387,900 |
- |
||||||
| Total Assets |
$ |
17,608,458 |
$ |
9,054,144 |
||||
| Liabilities and Equity |
||||||||
| Current Liabilities |
||||||||
| Advances from customers |
$ |
344,470 |
$ |
24,373 |
||||
| Accounts payable |
784,411 |
489,490 |
||||||
| Taxes payable |
1,792,099 |
1,637,197 |
||||||
| Due to related parties |
156,841 |
- |
||||||
| Accrued expenses and other current liabilities |
800,916 |
286,322 |
||||||
| Total Current Liabilities |
3,878,737 |
2,437,382 |
||||||
| Total Liabilities |
3,878,737 |
2,437,382 |
||||||
| Commitments and Contingencies |
- |
- |
||||||
| Equity |
||||||||
| Preferred stock, 2,000,000 shares authorized, no par value, none issued. |
- |
- |
||||||
| Common stock, 50,000,000 shares authorized, no par value; 10,105,535 and 8,456,032 shares issued as of March 31, 2017 and June 30, 2016; 9,930,038 and 8,280,535 outstanding as of March 31, 2017 and June 30, 2016, respectively |
20,535,379 |
15,500,391 |
||||||
| Additional paid-in capital |
603,352 |
1,140,962 |
||||||
| Treasury stock, at cost, 175,497 shares as of March 31, 2017 and June 30, 2016 |
(417,538) |
(417,538) |
||||||
| Accumulated deficit |
(1,685,124) |
(4,518,799) |
||||||
| Accumulated other comprehensive loss |
(503,703) |
(280,907) |
||||||
| Total Sino-Global Shipping America Ltd. Stockholders' Equity |
18,532,366 |
11,424,109 |
||||||
| Non-controlling Interest |
(4,802,645) |
(4,807,347) |
||||||
| Total Equity |
13,729,721 |
6,616,762 |
||||||
| Total Liabilities and Equity |
$ |
17,608,458 |
$ |
9,054,144 |
||||
| Sino-Global Shipping America Ltd. And Affiliate |
||||||||
| Sino-Global Shipping America, Ltd. And Affiliates |
||||||||
| Condensed Consolidated Statements Of Cash Flows |
||||||||
| (Unaudited) |
||||||||
| For the nine months ended |
||||||||
| 2017 |
2016 |
|||||||
| Operating Activities |
||||||||
| Net income (loss) |
$ |
2,729,592 |
$ |
(2,335,838) |
||||
| Adjustment to reconcile net income (loss) to net cash provided by operating activities: |
||||||||
| Amortization of stock-based compensation to consultants |
547,138 |
922,542 |
||||||
| Amortization of stock option expense |
77,320 |
- |
||||||
| Depreciation and amortization |
36,432 |
44,017 |
||||||
| Provision for (recovery of) doubtful accounts |
(107,608) |
73,746 |
||||||
| Provision for doubtful accounts on related party receivable |
174,604 |
|||||||
| Deferred tax provision (benefit) |
(387,900) |
280,600 |
||||||
| Changes in assets and liabilities |
||||||||
| Decrease in accounts receivable |
517,463 |
1,145,529 |
||||||
| Decrease (increase) in other receivables |
184,753 |
(124,631) |
||||||
| Decrease in advances to suppliers |
816,715 |
44,768 |
||||||
| Decrease in prepaid expenses |
82,210 |
310,824 |
||||||
| Increase in other current assets |
(16,931) |
(32,453) |
||||||
| Increase in other long-term assets |
(14,185) |
(644) |
||||||
| (Increase) decrease in due from related parties |
(2,843,131) |
1,721,904 |
||||||
| Increase (decrease) in advances from customers |
324,476 |
(101,825) |
||||||
| Increase (decrease) in accounts payable |
312,883 |
(379,579) |
||||||
| Increase in taxes payable |
201,259 |
743,580 |
||||||
| Increase in due to related parties |
156,841 |
- |
||||||
| Increase (decrease) in accrued expenses and other current liabilities |
514,445 |
(16,144) |
||||||
| Net cash provided by operating activities |
3,131,772 |
2,471,000 |
||||||
| Investing Activities |
||||||||
| Acquisition of property and equipment |
(55,474) |
(18,662) |
||||||
| Cash collected from the termination of vessel acquisition |
- |
327,570 |
||||||
| Net cash provided by (used in) investing activities |
(55,474) |
308,908 |
||||||
| Financing Activities |
||||||||
| Proceeds from issuance of common stock, net |
4,319,988 |
691,600 |
||||||
| Proceeds from exercise of stock options |
82,500 |
- |
||||||
| Repurchase of common stock |
- |
(43,451) |
||||||
| Net cash provided by financing activities |
4,402,488 |
648,149 |
||||||
| Effect of exchange rate fluctuations on cash and cash equivalents |
(24,591) |
(82,272) |
||||||
| Net increase in cash and cash equivalents |
7,454,195 |
3,345,785 |
||||||
| Cash and cash equivalents at beginning of period |
1,385,994 |
730,322 |
||||||
| Cash and cash equivalents at end of period |
$ |
8,840,189 |
$ |
4,076,107 |
||||
| Supplemental information |
||||||||
| Income taxes paid |
$ |
89,324 |
$ |
- |
||||
| Non-cash investing and financing activities: |
||||||||
| Common stock issued for vessel acquisition |
$ |
- |
$ |
2,220,000 |
||||
| Return of common stock issued for vessel acquisition |
$ |
- |
$ |
(2,220,000) |
||||
| Issuance of common stock to pay for professional services |
$ |
632,500 |
$ |
255,000 |
||||
SOURCE Sino-Global Shipping America, Ltd.
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