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 [email protected] 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 |
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| 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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