Sino-Global Announces Fiscal 2019 First Quarter Financial Results
ROSLYN, N.Y., Nov. 14, 2018 /PRNewswire/ -- Sino-Global Shipping America, Ltd. (NASDAQ: SINO) ("Sino-Global", the "Company", "our", "we" or "us"), a logistics integrated solutions provider engaged in non-asset based global shipping, freight logistics, and inland transportation management and related services, today announced its financial and operating results for the first quarter of the fiscal year 2019.
The Company has also provided an update on its Quarterly report on Form 10-Q filed this morning with the U.S. Securities and Exchange Commission. Management encourages investors to review this filing for more details of the Company's financial results for the period.
Management Comments - Highlights in First Quarter of Fiscal 2019
Mr. Lei Cao, Chairman and Chief Executive Officer of Sino-Global commented, "We were pleased to maintain solid revenue growth while concentrating on the expansion of our shipping agency business. Over the past years, we have examined global trading environments, and feel that this adjustment in our business provides the most upside potential considering the impact of trade policy changes. Our unique relationships and capabilities provide Sino-Global with a distinctive competitive advantage given the fragmented nature of the industry. We are one of the few shipping agents specialized in providing a full range of general shipping agency services in China and the only shipping agency company listed on a major stock exchange in the U.S. We have an excellent online logistics platform that we have developed and feel that we can align this use of technology with expertise and relationships with larger global shippers. Our plan is to develop a shipping agency network in China and South East Asia for the next three years and to expand our shipping agency network worldwide through acquisitions or strategic partnerships with other shipping agencies. In the first quarter, we continued to pursue new partnership arrangements and will continue to update investors as we progress."
Fiscal 2019 First Quarter and Subsequent Operating Highlights
-- On November 1, 2018, the Company signed a five-year strategic
cooperation agreement with a Hong Kong listed Company, Sinco
Pharmaceuticals Holdings Ltd ("Sinco"), pursuant to which both companies
will contribute resources and expertise to develop cold chain logistics
in China.
-- On September 3, 2018, Sino-Global entered into a co-operation agreement
with Ningbo Far-East Universal Shipping Agency Co., Ltd ("Ningbo
Far-East") to set up a joint venture in Hong Kong to engage in worldwide
shipping agency and management business. The Company shall have 51%
ownership in the joint venture. Ningbo Far-East is one of the top
ranking shipping agencies for private enterprises in Ningbo and Zhoushan
ports.
Fiscal Year 2019 First Quarter Financial Review
-- Total revenues increased by 20.8% to approximately $6.5 million for the
three month period ended September 30, 2018, compared to approximately
$5.4 million in the period ended September 30, 2017. This increase was
due to the Company's business development efforts in freight logistics.
-- The Company's gross profit for the period was approximately $1.4
million, compared to $1.7 million for the same period in the prior year.
Gross profit margin during the period was 21.8% compared to 31.9% for
the same period last year.
-- The operating loss for the three months ended September 30, 2018 was
approximately $1.4 million, compared to an operating income of
approximately $0.9 million for the same period ended September 30, 2017.
The operating loss was mainly due to increases in selling, general and
administrative expenses (SG&A expenses), which included increases in
stock compensation and certain provisions for double accounts due to
slower collections from customers in the inland transportation segment.
The Company has maintained long-term relationships with certain large
customers and continues to monitor the collection closely with respect
to its trade accounts receivable. For the three months ended September
30, 2018, provision for doubtful accounts was $871,081. For the same
period in 2017, recovery of doubtful accounts $24,536 was reocrded due
to collection of accounts receivable which the Company made a provision
during previous period. As the Company continues to maintain
long-standing relationships with its customers, monitor payments closely
and does not believe there are any significant collection issues with
respect to trade accounts receivable.
-- For the three months ended September 30, 2018, the Company reported a
net loss of approximately $1.3 million, or $(0.10) per diluted share
based on weighted average diluted shares outstanding of 13,145,535,
compared to a net income of approximately $0.6 million, or $0.07 per
diluted share based on weighted average diluted shares outstanding of
10,157,625, for the same period in prior year. The decrease was due to
the increase in SG&A expenses discussed above.
The following tables present summary information by segments for the three months ended September 30, 2018 and 2017:
For the Three Months Ended September 30, 2018
Inland Freight Container Total
Transportation Logistics Trucking
Management Services Services
Services
Revenues
- Related party $
322,000
$
$ $
322,000
- Third parties $
598,000 $
5,487,553 $
91,980 $
6,177,533
Total $
920,000 $
5,487,553 $
91,980 $
6,499,533
Cost of revenues $
59,874 $
4,965,992 $
57,966 $
5,083,832
Gross profit $
860,126 $
521,561 $
34,014 $
1,415,701
Depreciation and amortization $
20,488 $
476 $
4,751 $
25,715
Total capital expenditures
$
$ $
830 $
830
Gross profit margin 93.5 9.5 37.0 21.8
% % % %
For the Three Months Ended September 30, 2017
Inland Freight Container Total
Transportation Logistics Trucking
Management Services Services
Services
Revenues
- Related party $
565,160
$
$ $
565,160
- Third parties $
853,306 $
3,508,704 $
452,841 $
4,814,851
Total revenues $
1,418,466 $
3,508,704 $
452,841 $
5,380,011
Cost of revenues $
182,150 $
3,140,592 $
343,176 $
3,665,918
Gross profit $
1,236,316 $
368,112 $
109,665 $
1,714,093
Depreciation and amortization $
7,661 $
475 $
5,067 $
13,203
Total capital expenditures
$ $
5,077
$ $
5,077
Gross profit margin 87.2 10.5 24.2 31.9
% % % %
Balance Sheet Information
-- As of September 30, 2018, the Company had approximately $1.0 million in
cash, working capital of approximately $11.8 million and stockholders'
equity of $23.3 million.
-- The Company had 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 originally. 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
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
(UNAUDITED)
For the Three Months Ended
September 30,
2018 2017
---
Net revenues -third parties $
6,177,533 $
4,814,851
Net revenues - related party 322,000 565,160
Total revenues 6,499,533 5,380,011
Cost of revenues (5,083,832) (3,665,918)
Gross profit 1,415,701 1,714,093
General and administrative expenses (2,662,041) (763,357)
Selling expenses (108,369) (22,466)
Total operating expenses (2,770,410) (785,823)
Operating income (loss) (1,354,709) 928,270
Financial income, net 712 84,796
Net income (loss) before provision for
income taxes (1,353,997) 1,013,066
Income tax benefit (expense) 66,466 (296,429)
Net income (loss) (1,287,531) 716,637
Net income attributable to non-
controlling interest 29,231 99,448
Net income (loss) attributable
to Sino-Global Shipping
America, Ltd. $
(1,316,762) $
617,189
===
Comprehensive income (loss)
Net income (loss) $
(1,287,531) $
716,637
Other comprehensive income (loss) -
foreign currency (462,162) 47,717
Comprehensive income (loss) (1,749,693) 764,354
Less: Comprehensive income attributable
to non-controlling interest 106,725 40,747
Comprehensive income (loss)
attributable to Sino-Global
Shipping America, Ltd. $
(1,856,418) $
723,607
===
Earnings (loss) per share
Basic $
(0.10) $
0.07
===
Diluted $
(0.10) $
0.07
===
Weighted average number of common shares
used in computation
Basic 13,145,535 10,105,535
Diluted 13,145,535 10,157,625
SINO-GLOBAL SHIPPING AMERICA, LTD. AND AFFILIATES
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
September 30, June 30,
2018 2018
---
Assets
Current assets
Cash $
987,031 $
7,098,259
Accounts receivable, less
allowance for doubtful accounts
of $2,635,206 and $1,682,228 as
of September 30, 2018 and June
30, 2018, respectively 11,200,914 8,428,853
Other receivables, less allowance
for doubtful accounts of
$145,231 and $145,176 as of
September 30, 2018 and June 30,
2018, respectively 47,274 69,239
Advances to suppliers-third
parties 1,492,091 704,878
Advances to suppliers-related
party 3,414,619
Prepaid expenses 453,858 588,439
Due from a related party 1,361,330 2,087,994
Total Current Assets 15,542,498 22,392,281
Property and equipment, net 908,298 956,429
Intangible assets, net 137,222 153,056
Prepaid expenses and other assets 1,862,359 1,878,258
Other long-term assets -
deposits 3,053,182 143,303
Deferred tax assets, net 829,000 634,500
Total Assets $
22,332,559 $
26,157,827
===
Liabilities and Equity
Current Liabilities
Advances from customers $
170,239 $
415,385
Accounts payable 470,720 3,225,661
Taxes payable 2,658,947 2,700,619
Accrued expenses and other
current liabilities 429,864 280,888
Total current liabilities 3,729,770 6,622,553
Total liabilities 3,729,770 6,622,553
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;
13,751,032 and 13,271,032 shares
issued as of September 30, 2018
and June 30, 2018, respectively;
13,575,535 and 13,095,535
outstanding as of September 30,
2018 and June 30, 2018,
respectively 24,253,830 23,717,330
Additional paid-in capital 2,036,281 1,755,573
Treasury stock, at cost, 175,497
shares as of September 30, 2018
and June 30, 2018 (417,538) (417,538)
Accumulated deficit (1,751,618) (434,856)
Accumulated other comprehensive
loss (812,063) (272,407)
Total Sino-Global Shipping
America Ltd. Stockholders'
Equity 23,308,892 24,348,102
Non-controlling Interest (4,706,103) (4,812,828)
Total Equity 18,602,789 19,535,274
Total Liabilities and
Equity $
22,332,559 $
26,157,827
===
SINO-GLOBAL SHIPPING AMERICA, LTD. AND AFFILIATES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
For the Three Months Ended
September 30,
2018 2017
---
Operating Activities
Net income (loss) $
(1,287,531) $
716,637
Adjustments to reconcile net
income (loss) to net cash used
in operating activities:
Stock-based compensation -
employees 473,000
Stock-based compensation -
consultants 63,500 52,709
Amortization of stock -based
compensation to management and
employees 91,000 9,665
Amortization of stock -based
compensation to consultants 189,708
Depreciation and amortization 25,715 13,203
Provision for (recovery of)
doubtful accounts 871,081 (24,536)
Deferred tax provision (benefit) (194,500) 99,900
Changes in assets and
liabilities
Accounts receivable (3,709,059) (1,711,154)
Other receivables 67,499 (60,396)
Advances to suppliers-third
parties (789,150) 20,481
Advances to suppliers-related
party 3,322,210
Prepaid expenses (290,651) (50,390)
Other long-term assets -
deposits (2,510,665)
Due from related parties 807,405 (570,000)
Advances from customers (250,650) 17,410
Accounts payable (2,804,782) 661,628
Taxes payable (35,535) 146,104
Due to related parties (73,462)
Accrued expenses and other
current liabilities 122,962 (68,288)
Net cash used in operating
activities (5,838,443) (820,489)
Investing Activities
Acquisition of property and
equipment (830) (5,077)
Net cash used in investing
activities (830) (5,077)
Effect of exchange rate
fluctuations on cash (271,955) 19,210
Net decrease in cash (6,111,228) (806,356)
Cash at beginning of period 7,098,259 8,733,742
Cash at end of period $
987,031 $
7,927,386
===
Supplemental information
Income taxes paid $
9,108 $
60,162
===
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SOURCE Sino-Global Shipping America, Ltd.
