Press Release

Sino-Global Announces Fiscal 2019 First Quarter Financial Results

Company Release - 11/14/2018 8:30 AM ET

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
Transportation
Management
Services


Freight
Logistics
Services


Container
Trucking
Services


Total


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
Transportation
Management
Services


Freight
Logistics
Services


Container
Trucking
Services


Total


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

 

Cision View original content:http://www.prnewswire.com/news-releases/sino-global-announces-fiscal-2019-first-quarter-financial-results-300749616.html

SOURCE Sino-Global Shipping America, Ltd.


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