Sino-Global Announces 2017 Year End Financial Results
Highlighted by Progress in New Business Initiatives and Increase in Free Cash Flow
ROSLYN, N.Y., Sept. 27, 2017 /PRNewswire/ -- Sino-Global Shipping America, Ltd. (NASDAQ: SINO) ("Sino-Global", the "Company" or "us"), a non-asset based global shipping and freight logistic integrated solution provider, today announced its financial and operating results for the three months and year ended June 30, 2017.
Management Comments
Mr. Lei Cao, Chief Executive Officer of Sino-Global, stated, "The fiscal 2017 year was a transformational period for the Company. We continued our restructuring efforts and as a result revenues increased over 56% compared to the prior year. We increased our profit margins, and turned an operating loss into an operating profit."
Fiscal Year 2017 Operating Highlights
Mr. Cao continued, "In addition to our strong financial results, we successfully completed several key objectives during the fiscal year. A few of these achievements include:
-- The restructuring of our business and wind down of our shipping agency,
ship management and shipping and chartering services;
-- Providing a viable solution to the increasing disconnect between
traditional shipping services and inland logistics with the development
and launch of our fully functional internet-based portal;
-- Partnering with a number of trucking operators in an effort to enhance
both the functionality and awareness of our internet-based application;
and
-- Entering into two joint project agreements that will further evolve our
logistics strategy involving a shift from the current bulk cargo
transportation model to a containerized model."
"We first noted our intentions to develop an internet-based logistics platform at the end of fiscal 2016 and since then, we have made significant progress with this platform. In the coming quarters, we expect to continue to leverage our infrastructure to grow and further establish our service network in the U.S., as well as create new business channels around the globe," concluded Mr. Cao.
Fiscal Year 2017 Fourth Quarter Financial Review
The following table presents summary information by segment for the three months ended June 30, 2017 and 2016:
For the three months ended June 30, 2017
----------------------------------------
Shipping Shipping and Inland Freight Container Total
Agency and
Ship Chartering Transportation Logistic Trucking
Management Services Management Services Services
Services Services
-------- --------
Revenues
- Related party $ - $ - $517,243 $ - $ - $517,243
- Third parties $ - $ - $770,179 $3,011,809 $325,821 $4,107,809
Cost of revenues $ - $ - $348,475 $2,641,413 $201,355 $3,191,243
Gross profit $ - $ - $938,947 $370,396 $124,466 $1,433,809
Depreciation and amortization $ - $ - $7,535 $5,400 $ $12,935
-
Total capital expenditures $ - $ - $5,885 $1,053 $ $6,938
-
For the three months ended June 30, 2016
----------------------------------------
Shipping Shipping and Inland Total
Agency and
Ship Chartering Transportation
Management Services Management
Services Services
-------- --------
Revenues $ $ $ $
- Related party $ - $ - - $352,836 $352,836
- Third parties $725,643 $ - $762,123 $1,487,766
Cost of revenues $747,120 $ - $422,524 $1,169,644
Gross profit $(21,477) $ - $692,435 $670,958
Depreciation and
amortization $19,872 $(1,641) $(2,740) $15,491
Total capital expenditures $10,235 $(12,506) $15,268 $12,997
-- Total revenues increased by 151% to approximately $4.6 million for the
three month period ended June 30, 2017. This increase was due to the
Company's expansion efforts in the following sectors: inland
transportation management, freight logistics and container trucking
services.
-- The Company's gross profit for the period was $1.4 million, compared to
$670,958 in the prior year period. Gross profit margin during the
period decreased to 31% from 36.5%, which was attributed to a decrease
in profit as percentage of total revenue.
-- Operating income for the three months ended June 30, 2017 was $472,037,
compared to an operating income of $1,516 for the comparable year. This
was primarily due to the increase in revenue from the Company's inland
transportation management and the introduction of freight logistics
services as well as container trucking services in 2017.
-- For the three months ended June 30, 2017, the Company reported a net
income of $873,952, compared to a net income of $34,316 for the same
period in prior year.
Fiscal Year 2017 Financial Review
The following table presents summary information by segment for the years ended June 30, 2017 and 2016:
For the year ended June 30, 2017
--------------------------------
Shipping Shipping and Inland Freight Container Total
Agency and
Ship Chartering Transportation Logistic Trucking
Management Services Management Services Services
Services Services
-------- --------
Revenues
- Related party $ - $ - $2,746,423 $ - $ - $2,746,423
- Third parties $ - $ - $3,012,177 $4,815,450 $871,563 $8,699,190
Cost of revenues $ - $ - $620,259 $3,710,364 $649,968 $4,980,591
Gross profit $ - $ - $5,138,341 $1,105,086 $221,595 $6,465,022
Depreciation and amortization $ - $ - $27,857 $21,510 $ - $49,367
Total capital expenditures $ - $ - $61,359 $1,053 $ - $62,412
For the year ended June 30, 2016
--------------------------------
Shipping Shipping and Inland Total
Agency and
Ship Chartering Transportation
Management Services Management
Services Services
-------- --------
Revenues
- Related party $ - $ - $2,269,346 $2,269,346
- Third parties $2,507,800 $462,218 $2,071,176 $5,041,194
Cost of revenues $2,175,109 $212,510 $1,350,370 $3,737,989
Gross profit $332,691 $249,708 $2,990,152 $3,572,551
Depreciation and
amortization $45,434 $1,410 $12,664 $59,508
Total capital expenditures $13,537 $2,854 $15,268 $31,659
-- Total revenues increased by approximately $4.1 million or 56.6% to $11.4
million during the year, compared to $7.3 million in the prior year.
This increase was due to the Company's efforts to diversify its business
resulting in an increase in revenues from the Company's inland
transportation management, freight logistic and container trucking
services.
-- The Company's gross profit for the year was $6.5 million, compared to
$3.6 million in the prior year. Gross profit margin during the year
increased to 56.5% from 48.9%, which was attributed to an increase in
total revenue and increased revenue derived from inland transportation
services with high gross profit margin.
-- Operating income for the year ended June 30, 2017 was $3.1 million,
compared to an operating loss of $1.2 million in the prior year. This
was primarily due to an increase in revenue from the Company's inland
transportation management and the introduction of freight logistic
services as well as container trucking services during the year, and a
significant decrease in total operating expenses.
-- For the fiscal year ended June 30, 2017, the Company reported a net
income of $3.6 million, compared to net loss of $2.3 million for the
prior year.
Balance Sheet Information
-- As of June 30, 2017, the Company had $8.7 million in cash and cash
equivalents, working capital of $13.7 million and shareholder equity of
$19.5 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.
Expectations for Fiscal 2018
-- The Company plans to continue to streamline its business operations and
improve operating efficiency through innovative technology, effective
planning, budgeting, execution and cost control. The Company plans to
develop new service lines along the shipping and freight logistics
industry value chain, and leverage our relationships with COSCO, Zhiyuan
Investment Group and other potential strategic business partners to
expand our global business footprint.
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 / aprior@equityny.com
SINO-GLOBAL SHIPPING AMERICA, LTD. AND AFFILIATES
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
For the Three Months For the Years
Ended June 30, Ended June 30,
-------------- --------------
2017 2016 2017 2016
---- ---- ---- ----
Net revenues - third parties $4,107,809 $1,487,766 $8,699,190 $5,041,194
Net revenues - related party 517,243 352,836 2,746,423 2,269,346
------- ------- --------- ---------
Total revenues $4,625,052 $1,840,602 $11,445,613 $7,310,540
Cost of revenues (3,191,243) (1,169,644) (4,980,591) (3,737,989)
Gross profit 1,433,809 670,958 6,465,022 3,572,551
--------- ------- --------- ---------
General and administrative expenses (903,697) (261,301) (3,152,336) (4,346,159)
Selling expenses (58,075) (408,141) (211,504) (475,619)
Total operating expenses (961,772) (669,442) (3,363,840) (4,821,778)
-------- -------- ---------- ----------
Operating income 472,037 1,516 3,101,182 (1,249,227)
Financial income, net 88,015 4,270 30,278 (247,530)
Other income, net - 2,047 - 7,828
---
Total other income 88,015 6,317 30,278 (239,702)
------ ----- ------ --------
Net income before provision for income taxes 560,052 7,833 3,131,460 (1,488,929)
Income tax benefit 313,900 26,483 472,084 (812,593)
------- ------ ------- --------
Net income 873,952 34,316 3,603,544 (2,301,522)
Net income (loss) attributable to non-controlling interest 82,735 (52,905) (21,348) (335,593)
------ ------- ------- --------
Net income attributable to Sino-Global Shipping America, Ltd. $791,217 $87,221 $3,624,892 $(1,965,929)
======== ======= ========== ===========
Comprehensive income (loss)
Net income $873,952 $34,316 $3,603,544 $(2,301,522)
Other comprehensive income (loss) - foreign currency translation gain (loss) 40,270 (88,097) (73,741) (134,155)
------ ------- ------- --------
Comprehensive income (loss) 914,222 (53,781) 3,529,803 (2,435,677)
Less: Comprehensive income attributable to non-controlling interest 33,866 44,992 38,568 (97,409)
------ ------ ------ -------
Comprehensive income (loss) attributable to Sino-Global Shipping America Ltd. $ $(98,773) $3,491,235 $(2,338,268)
880,356
=======
Earnings (loss) per share
-Basic $0.07 $0.02 $0.41 $(0.23)
===== ===== ===== ======
-Diluted $0.07 $0.02 $0.41 $(0.23)
===== ===== ===== ======
Weighted average number of common shares used in computation
-Basic 10,105,535 8,873,698 8,911,494 8,651,606
========== ========= ========= =========
-Diluted 10,152,685 8,873,698 8,949,960 8,651,606
========== ========= ========= =========
SINO-GLOBAL SHIPPING AMERICA, LTD. AND AFFILIATES
CONSOLIDATED BALANCE SHEETS
June 30, June 30,
-------- --------
2017 2016
---- ----
Assets
Current assets
Cash and cash equivalents $8,733,742 $1,385,994
Accounts receivable, less
allowance for doubtful accounts
of $185,821 and $207,028 as of
June 30, 2017 and 2016,
respectively 2,569,141 2,333,024
Other receivables, less
allowance for doubtful accounts
of $145,244 and $145,186 as of
June 30, 2017 and 2016,
respectively 37,811 290,907
Advances to suppliers-third-
party 54,890 2,192,910
Advances to suppliers-related
party 3,333,038 -
Prepaid expenses and other
current assets 311,136 826,631
Due from related parties 1,715,130 1,622,519
--------- ---------
Total Current Assets 16,754,888 8,651,985
---------- ---------
Property and equipment, net 187,373 176,367
Prepaid expenses 6,882 178,982
Other long-term assets 117,478 46,810
Deferred tax assets 749,400 -
------- ---
Total Assets $17,816,021 $9,054,144
=========== ==========
Liabilities and Equity
Current Liabilities
Advances from customers $369,717 $24,373
Accounts payable 206,211 489,490
Taxes payable 1,886,216 1,637,197
Due to related parties 206,323 -
Accrued expenses and other
current liabilities 418,029 286,322
------- -------
Total Current Liabilities 3,086,496 2,437,382
--------- ---------
Total Liabilities 3,086,496 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;
10,281,032 and 8,456,032 shares
issued as of June 30, 2017 and
2016; 10,105,535 and 8,280,535
outstanding as of June 30, 2017
and 2016, respectively 20,535,379 15,500,391
Additional paid-in capital 688,934 1,140,962
Treasury stock, at cost, 175,497
shares as of June 30, 2017 and
2016 (417,538) (417,538)
Accumulated deficit (893,907) (4,518,799)
Accumulated other comprehensive
loss (414,564) (280,907)
-------- --------
Total Sino-Global Shipping
America Ltd. Stockholders'
Equity 19,498,304 11,424,109
Non-controlling Interest (4,768,779) (4,807,347)
---------- ----------
Total Equity 14,729,525 6,616,762
---------- ---------
Total Liabilities and Equity $17,816,021 $9,054,144
=========== ==========
SINO-GLOBAL SHIPPING AMERICA LTD. AND AFFILIATE
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the years ended
June 30,
--------
2017 2016
---- ----
Operating Activities
Net income (loss) $3,603,544 $(2,301,522)
Adjustment to
reconcile net income
(loss) to net cash
provided by (used
in) operating
activities:
Amortization of
stock-based
compensation to
management - 349,800
Amortization of
stock-based
compensation to
consultants 599,846 1,327,780
Amortization of
employee stock
options 110,195 3,880
Depreciation and
amortization 49,367 59,508
Provision for
(recovery of)
doubtful accounts (18,912) 132,915
Deferred tax
provision (benefit) (749,400) 280,600
Changes in assets and
liabilities
(Increase) decrease
in accounts
receivable (260,165) 616,280
Decrease (increase)
in other receivables 249,768 (98,935)
Decrease (increase)
in advances to
suppliers-third
parties 2,085,281 (2,141,935)
Increase in advances
to suppliers-
related party (3,317,382) -
Decrease (increase)
in prepaid expenses 162,727 (4,228)
Increase in other
current assets (18,931) (30,600)
Increase in other
long-term assets (70,806) -
(Increase) decrease
in due from related
parties (117,772) 1,162,072
Increase (decrease)
in advances from
customers 343,790 (101,828)
Decrease in accounts
payable (272,474) (202,098)
Increase in taxes
payable 278,288 640,549
Increase in due to
related parties 206,323 -
Increase in accrued
expenses and other
current liabilities 131,483 186,714
------- -------
Net cash provided by
(used in) operating
activities 2,994,770 (121,048)
--------- --------
Investing Activities
Acquisition of
property and
equipment (62,412) (31,659)
Cash collected from
the termination of
vessel acquisition - 326,035
--- -------
Net cash provided by
(used in) investing
activities (62,412) 294,376
------- -------
Financing Activities
Proceeds from
issuance of common
stock, net 4,319,988 691,600
Proceeds from
exercise of employee
stock options for
common stock 82,500 -
Repurchase of common
stock - (45,011)
--- -------
Net cash provided by
financing activities 4,402,488 646,589
--------- -------
Effect of exchange
rate fluctuations on
cash and cash
equivalents 12,902 (164,245)
------ --------
Net increase in cash
and cash equivalents 7,347,748 655,672
Cash and cash
equivalents at
beginning of year 1,385,994 730,322
--------- -------
Cash and cash
equivalents at end
of year $8,733,742 $1,385,994
========== ==========
Supplemental
information
Income taxes paid $89,324 $23,286
======= =======
Non-cash investing
and financing
activities:
Return of common
stock issued for
vessel acquisition $ - $(2,220,000)
=== === ===========
Issuance of common
stock to pay for
professional
services $632,500 $435,000
======== ========
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SOURCE Sino-Global Shipping America, Ltd.
