Sterling Consolidated Posts 3rd Quarter Gain, 8% Sales Growth, and Positive Adjusted EBITDA and Cash Flows
NEPTUNE, N.J., Nov. 20, 2018 /PRNewswire/ -- Sterling Consolidated Corp. (OTCQB: STCC), a supplier of hydraulic and pneumatic seals to the automotive and industrial marketplace, reported its results for the 3 months ended September 30, 2018.
Key Highlights for the 3 and 9 months ended:
-- 3(rd) quarter net income came in at $32,925
-- Annual 3(rd) quarter revenues increased to $1,713,726, up 8% from 2017
-- August 2018 sales surpassed $700,000.
-- 3(rd) quarter Adjusted EBITDA* came in at $112,727
-- 3(rd) quarter cash flows from operations came in at $72,091
Darren DeRosa, Chief Executive Officer of Sterling Consolidated, commented, "The results of operations indicate a very strong quarter for the Company. We continue to work on our dual strategy of growing through acquisition and endeavoring to introduce Blockchain technology to the o-ring industry with our concept of the DiMO marketplace."
To be added to the Sterling Consolidated investor email list, please email Scott Chichester at schichester@sterlingconsolidated.com
About Sterling Consolidated Corp.
Currently serving more than 3,000 customers, Sterling Consolidated Corp., through its wholly-owned subsidiary, Sterling Seal and Supply Inc., has been a leading supplier of hydraulic and pneumatic seals to the automotive and industrial marketplace for more than 48 years. They have recently developed their own cryptocurrency, "DiMO" which the Company expects will be distributed in 2019 via a property dividend.
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.
*Note: Adjusted EBITDA is calculated by taking net income and adding back interest, taxes, depreciation, amortization, equity-based compensation, and other non-cash or one-time adjustments.
STERLING CONSOLIDATED CORP AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
For the Three Months Ended For the Nine Months Ended
September 30 September 30
---
2018 2017 2018 2017
Revenues
O-rings and rubber product sales $
1,678,243 1,537,617 $
4,913,040 4,794,900
Freight services 35,483 49,332 119,505 145,095
Total revenues 1,713,726 $
1,586,949 5,032,545 $
4,939,995
Cost of sales
Cost of goods 1,143,139 1,147,433 3,518,303 3,423,166
Cost of services 58,840 69,300 169,831 198,940
Total cost of sales 1,201,979 1,216,733 3,688,134 3,622,106
Gross profit 511,747 370,216 1,344,411 1,317,889
Operating expenses
Sales and marketing 81,898 59,312 232,535 168,126
General and administrative 343,424 368,147 1,007,286 1,026,566
Research and development 112,500
Total operating expenses 425,322 427,459 1,352,321 1,194,692
Operating income (loss) 86,425 (57,243) (7,910) 123,197
Other income (expense)
Other income (expense) (5,553) 102,252 (1,037) 116,746
Loss on sale of vehicle (2,502)
Gain on interest rate swap (460) 2,116 2,349 9,545
Loss on disposal of software (20,498)
Interest expense (33,376) (40,181) (98,514) (115,437)
Total other income (expense) (39,389) 64,187 (117,700) 8,352
Income (loss) before provision for income 47,036 6,944 (125,610) 131,549
taxes
Provision (benefit) for income taxes 14,111 (76,217) (37,683) (26,113)
Net income (loss) $
32,925 $
83,161 $
(87,927) $
157,662
Net income (loss) per share of common
stock:
Basic $
0.00 $
0.00 $
(0.00) $
0.00
Fully diluted $
0.00 $
0.00 $
(0.00) $
0.00
Weighted average number of shares
outstanding
Basic 41,465,540 40,715,540 41,308,947 40,715,540
Fully diluted 52,265,540 40,715,540 41,308,947 40,715,540
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SOURCE Sterling Consolidated Corp.
