Sterling Consolidated Announces First Quarter 2013 Results

News provided by

Sterling Consolidated Corp.

May 15, 2013, 05:16 ET

NEPTUNE, N.J., May 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 first quarter ended March 31, 2013.

Key Highlights:

  • Filed a Form S-1 to become a publicly traded company on the Over-The-Counter Bulletin Board market as of March 11, 2013
  • STCC has been profitable quarter over quarter since 2009
  • Significantly improved Accounts Receivables to Accounts Payables ratio
  • Completed and published new Sterling Consolidated website available at www.sterlingconsolidated.com  

Revenues for the first quarter of 2013 were $1,663,150, compared to $1,741,432 for the same period in 2012. Gross profit for the first quarter of 2013 was $596,418, a slight increase from $559,695 for the same period in 2012.

The Company's operating income for the first quarter of 2013 was $180,960 compared to operating income of $142,637 in the first quarter of 2012. Net income for the period was $110,922, or $0.0030 per diluted share, compared to net income of $92,639, or $0.0026 per diluted share, in the comparable period in 2012.

Darren DeRosa, Chief Executive Officer of Sterling Consolidated, commented, "It's an exciting time for Sterling Consolidated as we are now a publicly traded company.  We will look to use the capital markets to our advantage as we execute our roll-up strategy.  Based on our long experience in the industry, the O-ring distributor market is highly fragmented and we plan on taking advantage of our public company status to build upon our current infrastructure.  Our presence in the U.S. will continue to grow as our strategically located distribution centers will provide synergistic benefits to our acquisition targets."

Mr. DeRosa continued, "In addition to our roll-up strategy, we also remain committed to growing organically.  While our first quarter revenues were roughly flat, we did experience some pockets of success.  We saw significant growth prospects in the pool industry, in part due to new custom molded products that were added to our product line.  Additionally, we had a 700% increase in sales coming from Amazon compared to the prior quarter.  We will look to capitalize on this online growth as we expand our customer base through our roll-up strategy.  Lastly, we significantly decreased our accounts payables through the retirement of some of the Company's debt. Going forward, we will continue to execute on our business strategy and further deliver the profitable results we have achieved every quarter since 2009."

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

CONSOLIDATED STATEMENTS OF OPERATIONS









For the Three Months Ended
March 31,





2013

2012




Revenues


O-rings and rubber product sales

$ 1,627,886

$ 1,741,432

Freight services

22,214

-

Rental services

13,050

-

Total revenues

$ 1,663,150

$ 1,741,432




Cost of sales


Cost of goods

1,006,249

923,531

Cost of services

60,483

258,206

Total cost of sales

1,066,732

1,181,737




Gross profit

596,418

559,695




Operating expenses


Sales and marketing

107,194

10,438

General and administrative

308,264

406,620

Total operating expenses

415,458

417,058




Operating income

180,960

142,637




Other income and expense


Other income

4,298

10,103

Other expense

-

-

Interest expense

(29,380)

(36,941)

Total other income and (expense)

(25,082)

(26,838)




Income before provision for income taxes

155,878

115,799




Provision for income taxes

44,956

23,160




Net income

110,922

92,639




Other comprehensive income/(loss)


Unrealized gain/(loss) on interest rate swap contract

(17,606)

(4,699)

Comprehensive income

$ 93,316

$ 87,940




Net income per share of common stock:


Basic and diluted

$ 0.0030

$ 0.0026




Weighted average number of shares outstanding


Basic and diluted

37,074,040

30,095,927




STERLING CONSOLIDATED CORP AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS












March 31,

December 31,


2013

2012

ASSETS

Current assets



 Cash and cash equivalents

$           74,541

$         115,489

 Account receivable, net of allowance

912,662

871,132

 Inventory, net of reserve

2,333,031

2,307,413

 Notes receivable

40,201

40,601

 Investment

75

75

 Other current assets

-

-

Total current assets

3,360,510

3,334,710






Property and equipment, net

2,654,943

2,684,299

Intangible asset, net

-

-

Deferred tax asset

7,776

7,776





 Total assets

$      6,023,229

$      6,026,785





LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)





Current liabilities



Accounts payable and accrued expenses

$         897,350

$      1,139,681

Notes payable (current portion)

131,546

130,905

Notes payable related party (current portion)

47,925

62,151

Bank line of credit

839,591

839,591

Interest rate swap contract

19,330

1,724

Other liabilities

225,399

76,971

Total current liabilities

2,161,141

2,251,023





Other liabilities



Notes payable

861,718

900,761

Notes payable (related party)

1,647,005

1,614,952

Total other liabilities

2,508,723

2,515,713





Total liabilities

4,669,864

4,766,736





Stockholders' equity (deficit)



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, 37,040,040  shares issued and outstanding as of March 31, 2013 and December 31, 2012;

37,074

37,074

Subscription receivable

-

-

Accumulated other comprehensive loss

(19,330)

(1,724)

Additional paid-in capital

1,175,079

1,175,079

Retained earnings

160,542

49,620

Total stockholders' equity (deficit)

1,353,365

1,260,049





 Total liabilities and stockholders' equity (deficit)

$      6,023,229

$      6,026,785





Investor Contact:
KCSA Strategic Communications
Phil Carlson / Josh Dver
212-896-1233 / 1239
[email protected] / [email protected]

SOURCE Sterling Consolidated Corp.