May 15, 2019 SOURCE: PR NewsWire
Sino-Global Announces Fiscal 2019 Third Quarter Financial Results Highlighted by a 337.9% Increase to $22.8 Million in Total Revenues
ROSLYN, New York, May 15, 2019 /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 third quarter and nine months ended March 31, 2019.
The Company has also provided an update on its quarterly report on Form 10-Q filed with the U.S. Securities and Exchange Commission the same day. Management encourages investors to review this filing for more details of the Company's financial results for the period.
Fiscal Year 2019 Third Quarter Financial Review
-- Total revenues increased by 337.9% to approximately $22.8 million for
the three month period ended March 31, 2019, compared to approximately
$5.2 million in the three month period ended March 31, 2018. The
increase was mainly due to continuing efforts to diversify its business,
resulting in the rise in revenues generated from its freight logistics
services segment. Freight logistics services consist primarily of cargo
forwarding, brokerage and other freight services in China.
-- The Company's gross profit for the three month period ended March 31,
2019 was approximately $1.7 million, compared to approximately $1.8
million for the same period in the prior year. Gross margin during the
period was approximately 7.5% compared to approximately 34.5% for the
same period last year.
-- Sino-Global's selling, general and administrative expenses (SG&A
expenses) were approximately $2.8 million for the three month period
ended March 31, 2019, compared to approximately $1.2 million in the same
period of the prior year. As a percentage of revenue, SG&A expenses
decreased to approximately 12.2% from approximately 23.7% in the prior
year period, largely due to greater efficiency on higher revenues.
-- The Company's provision for doubtful accounts was $1,583,965 for the
three months ended March 31, 2019, compared with a provision for
doubtful accounts of $570,712 for the same period in 2018. The increase
was due to slower collections from customers with significant increased
credit sales. As the Company continues its business relationship with
several large customers, it continues to monitor the collection closely
with respect to trade accounts receivable.
-- For the three months ended March 31, 2019, the Company reported a net
loss attributable to the Company of approximately $1.4 million, or
$(0.09) per diluted share based on weighted average diluted shares
outstanding of 15,295,703, compared to a net income attributable to the
Company of approximately $0.1 million, or $0.01 per diluted share based
on weighted average diluted shares outstanding of 10,870,221, for the
same period in the prior year.
The following tables present summary information by segments for the three months ended March 31, 2019 and 2018:
For the Three Months Ended March 31, 2019
Shipping Inland Freight Container Total
Agency Logistics Trucking
Services Transportation Services Services
Management
Services
Revenues
- Related party
$ $
36,380
$
$ $
36,380
- Third parties $
956,583 $
93,407 $
21,599,675 $
87,094 $
22,736,759
Total revenues $
956,583 $
129,787 $
21,599,675 $
87,094 $
22,773,139
Cost of revenues $
862,970 $
48,750 $
20,098,417 $
65,058 $
21,075,195
Gross profit $
93,613 $
81,037 $
1,501,258 $
22,036 $
1,697,944
Depreciation and amortization
$ $
39,109 $
476 $
4,448 $
44,033
Total capital expenditures
$
$ $
125,806 $
8,317 $
134,123
Gross margin% 9.8 62.4 7.0
% 25.3
% % % 7.5
%
For the Three Months Ended March 31, 2018
Shipping Inland Freight Container Total
Agency Logistics Trucking
Services Services
Transportation Services
Management
Services
Revenues
- Related party
$ $
501,000
$
$ $
501,000
- Third parties
$ $
934,872 $
3,577,293 $
187,005 $
4,699,170
Total revenues
$ $
1,435,872 $
3,577,293 $
187,005 $
5,200,170
Cost of revenues
$ $
91,276 $
3,195,492 $
118,667 $
3,405,435
Gross profit
$ $
1,344,596 $
381,801 $
68,338 $
1,794,735
Depreciation and
amortization
$ $
26,268 $
475 $
4,917 $
31,660
Total capital expenditures
$
$
$ $
10,929 $
10,929
Gross margin% 93.6 10.7 36.5 34.5
% % % %
Balance Sheet Information
-- As of March 31, 2019, the Company had approximately $3.5 million in
cash, working capital of approximately $11.3 million and stockholders'
equity of approximately $22.3 million.
-- The Company had no long-term debt as of March 31, 2019.
About Sino-Global Shipping America, Ltd.
Founded in the United States in 2001, Sino-Global Shipping America, Ltd. is a company engaged originally 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 shipping agency, 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 For the Nine Months Ended
March 31,
March 31,
---
2019 2018 2019 2018
---
Net revenues -third parties $
22,736,759 $
4,699,170 $
39,354,579 $
14,179,256
Net revenues - related party 36,380 501,000 433,380 1,621,406
Total revenues 22,773,139 5,200,170 39,787,959 15,800,662
Cost of revenues (21,075,195) (3,405,435) (34,715,624) (10,447,231)
Gross profit 1,697,944 1,794,735 5,072,335 5,353,431
Selling expenses (140,601) (35,363) (507,199) (393,090)
General and administrative expenses (2,637,868) (1,196,806) (6,314,447) (3,444,095)
Stock-based compensation (148,708) (280,708) (2,013,292) (623,790)
Total operating expenses (2,927,177) (1,512,877) (8,834,938) (4,460,975)
Operating income (loss) (1,229,233) 281,858 (3,762,603) 892,456
Financial income, net 2,499 170,134 3,993 392,729
Net income (loss) before provision for
income taxes (1,226,734) 451,992 (3,758,610) 1,285,185
Income tax benefit (expense) (248,820) (216,095) (427,333) 58,597
Net income (loss) (1,475,554) 235,897 (4,185,943) 1,343,782
Net income (loss) attributable to non-
controlling interest (86,764) 150,943 (6,419) 343,936
Net income (loss) attributable
to Sino-Global Shipping
America, Ltd. $
(1,388,790) $
84,954 $
(4,179,524) $
999,846
===
Comprehensive income (loss)
Net income (loss) $
(1,475,554) $
235,897 $
(4,185,943) $
1,343,782
Other comprehensive income (loss) -foreign
currency 262,467 164,446 (306,457) 309,763
Comprehensive income (loss) (1,213,087) 400,343 (4,492,400) 1,653,545
Less: Comprehensive income (loss)
attributable to non-controlling interest (96,210) 30,785 37,445 92,150
Comprehensive income (loss)
attributable to Sino-Global
Shipping America Ltd. $
(1,116,877) $
369,558 $
(4,529,845) $
1,561,395
===
Earnings (loss) per share
Basic $
(0.09) $
0.01 $
(0.30) $
0.10
===
Diluted $
(0.09) $
0.01 $
(0.30) $
0.10
===
Weighted average number of common shares
used in computation
Basic 15,245,703 10,835,535 14,045,018 10,433,272
Diluted 15,245,703 10,870,221 14,045,018 10,479,555
SINO-GLOBAL SHIPPING AMERICA, LTD. AND AFFILIATES
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
March 31, June 30,
2019 2018
---
Assets
Current assets
Cash $
3,523,907 $
7,098,259
Note receivable 745,001
Accounts receivable, less allowance
for doubtful accounts of
$4,710,897 and $1,682,228 as of
March 31, 2019 and June 30, 2018,
respectively 14,067,687 8,428,853
Other receivables, less allowance
for doubtful accounts of $145,198
and $145,176 as of March 31, 2019
and June 30, 2018, respectively 79,481 69,239
Advances to suppliers-third
parties 1,145,620 704,878
Advances to suppliers-related
party 3,414,619
Prepaid expense and other current
assets 103,172 588,439
Due from related party, net 885,456 2,087,994
Total Current Assets 20,550,324 22,392,281
Property and equipment, net 1,032,695 956,429
Intangible assets, net 105,556 153,056
Prepaid expenses 1,114,542 1,878,258
Other long-term assets - deposits 3,123,268 143,303
Deferred tax assets, net 847,668 634,500
Total Assets $
26,774,053 $
26,157,827
===
Liabilities and Equity
Current Liabilities
Advances from customers $
69,369 $
415,385
Accounts payable 4,688,560 3,225,661
Taxes payable 3,611,161 2,700,619
Accrued expenses and other current
liabilities 848,797 280,888
Total current liabilities 9,217,887 6,622,553
Total liabilities 9,217,887 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;
15,471,200 and 13,271,032 shares
issued as of March 31, 2019 and
June 30, 2018, respectively;
15,295,703 and 13,095,535
outstanding as of March 31, 2019
and June 30, 2018, respectively 25,855,330 23,717,330
Additional paid-in capital 2,130,865 1,755,573
Treasury stock, at cost, 175,497
shares as of March 31, 2019 and
June 30, 2018 (417,538) (417,538)
Accumulated deficit (4,614,380) (434,856)
Accumulated other comprehensive
loss (622,728) (272,407)
Total Sino-Global Shipping America
Ltd. Stockholders' Equity 22,331,549 24,348,102
Non-controlling Interest (4,775,383) (4,812,828)
Total Equity 17,556,166 19,535,274
Total Liabilities and
Equity $
26,774,053 $
26,157,827
===
SINO-GLOBAL SHIPPING AMERICA, LTD. AND AFFILIATES
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
(UNAUDITED)
Preferred Stock Common Stock Additional Treasury Stock Accumulated Accumulated
other Noncontrolling
paid-in income comprehensive
Shares Amount
Shares Amount capital Shares Amount (deficit) income (loss) interest Total
---
BALANCE, June 30, 2017 -
$ 10,281,032 $
20,535,379 $
688,934 (175,497) $
(417,538) $
(893,907) $
(414,564) $
(4,768,779) $
14,729,525
Stock-based compensation
to management 9,665 9,665
Amortization of shares
issued to consultants 52,709 52,709
Foreign currency
translation 106,419 (59,653) 46,766
Net income 617,189 100,400 717,589
BALANCE, September 30,
2017 - 10,281,032 $
20,535,379 751,308 (175,497) (417,538) $
(276,718) $
(308,145) (4,728,032) 15,556,254
Amortization of shares
issued to consultants 280,708 280,708
Foreign currency
translation 173,508 142,422 315,930
Net income (loss) 297,703 (153,733) 143,970
BALANCE, December 31, 2017 - 10,281,032 $
20,535,379 1,032,016 (175,497) (417,538) $
20,985 $
(134,637) (4,739,343) 16,296,862
Stock based compensation
to employee 130,000 364,000 (364,000) -
Stock based compensation
to consultants 200,000 548,000 (548,000) -
Issuance of common stock
to private investor 2,000,000 1,510,951 1,074,140 2,585,091
Amortization of shares to
management and employees 182,000 182,000
Amortization of shares
issued to consultants 98,708 98,708
Foreign currency
translation 288,412 (341,346) (52,934)
Net income 84,954 372,130 457,084
BALANCE, March 31, 2018 -
$ 12,611,032 $
22,958,330 $
1,474,864 (175,497) $
(417,538) $
105,939 $
153,775 $
(4,708,559) $
19,566,811
===
Preferred Stock Common Stock Additional Treasury Stock Accumulated Accumulated
other Noncontrolling
paid-in comprehensive
Shares Amount
Shares Amount capital Shares Amount deficit income (loss) interest Total
---
BALANCE, June 30, 2018 -
$ 13,271,032 $
23,717,330 $
1,755,573 (175,497) $
(417,538) $
(434,856) $
(272,407) $
(4,812,828) $
19,535,274
Stock based compensation
to employee 430,000 473,000 473,000
Stock based compensation
to consultants 50,000 63,500 63,500
Amortization of shares to
management and employees 91,000 91,000
Amortization of shares
issued to consultants 189,708 189,708
Foreign currency
translation (539,656) 77,494 (462,162)
Net income (loss) (1,316,762) 29,231 (1,287,531)
BALANCE, September 30,
2018 - 13,751,032 24,253,830 2,036,281 (175,497) (417,538) (1,751,618) (812,063) (4,706,103) 18,602,789
Stock based compensation
to employee 1,150,000 909,500 909,500
Stock based compensation
to consultants 100,000 128,500 (43,333) 85,167
Issuance of common stock
to private investor 420,168 500,000 500,000
Amortization of shares
issued to consultants 52,709 52,709
Foreign currency
translation (82,578) (24,184) (106,762)
Net income (loss) (1,473,972) 51,114 (1,422,858)
BALANCE, December 31, 2018 - 15,421,200 25,791,830 2,045,657 (175,497) (417,538) (3,225,590) (894,641) (4,679,173) 18,620,545
Stock based compensation
to consultants 50,000 63,500 32,500 96,000
Amortization of shares
issued to consultants 52,708 52,708
Foreign currency
translation 271,913 (9,446) 262,467
Net loss (1,388,790) (86,764) (1,475,554)
BALANCE, March 31, 2019 -
$ 15,471,200 $
25,855,330 $
2,130,865 (175,497) $
(417,538) $
(4,614,380) $
(622,728) $
(4,775,383) $
17,556,166
===
SINO-GLOBAL SHIPPING AMERICA, LTD. AND AFFILIATES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
For the Nine Months Ended
March 31,
2019 2018
---
Operating Activities
Net income (loss) $
(4,185,943) $
1,343,782
Adjustments to reconcile net income (loss) to net
cash used in operating activities:
Stock-based compensation 2,013,292 623,790
Depreciation and amortization 95,313 63,402
Provision for doubtful accounts 2,871,752 1,408,143
Deferred tax benefit (208,047) (920,700)
Changes in assets and liabilities
Notes receivable (732,826)
Accounts receivable (8,341,650) (3,246,911)
Other receivables 36,014 (80,145)
Advances to suppliers-third parties (410,886) 50,465
Advances to suppliers-related party 3,312,375
Prepaid expenses and other current assets 821,662 (84,147)
Other long-term assets - deposits (2,502,946)
Due from related parties 1,552,918 (784,363)
Advances from customers (353,696) (23,218)
Accounts payable 1,336,453 243,380
Taxes payable 837,641 798,012
Due to related parties (206,323)
Accrued expenses and other current liabilities 535,921 889
Net cash used in operating activities (3,322,653) (813,944)
Investing Activities
Acquisition of property and equipment (143,480) (379,917)
Acquisition of intangible assets (190,000)
Prepayment for intangible assets (437,357)
Net cash used in investing activities (143,480) (1,007,274)
Financing Activities
Proceeds from issuance of common stock 500,000 2,585,091
Net cash provided financing activities 500,000 2,585,091
Effect of exchange rate fluctuations on cash (608,219) 52,327
Net increase (decrease) in cash (3,574,352) 816,200
Cash at beginning of period 7,098,259 8,733,742
Cash at end of period $
3,523,907 $
9,549,942
===
Supplemental information
Income taxes paid $
144,018 $
60,162
===
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