ROSLYN, N.Y., Sept. 19, 2016 /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 year ended June
30, 2016. The Company has also provided extensive
industry information on its Form 10-K filed this afternoon, and
management encourages investors to review the document for both
background on Sino-Global's business and history as well as
strategy for the coming fiscal year.
Management Comments
Mr. Lei Cao, Chief Executive Officer of Sino-Global, stated,
"Throughout the year, we continued to execute on a business
strategy aimed toward expanding our revenue base and leveraging our
considerable industry experience as a non-asset based logistics
provider. We continued to diversify from our legacy
shipping agency operation in fiscal 2016, while streamlining our
operations and improving our free cash flow. In March, we
announced the expansion of Sino-Global in the United States market through the formation
of a new U.S. based subsidiary, located in L.A., and on
May 3rd announced we had
entered a memorandum of understanding from Yaxin International Co.,
Ltd., which represents our first customer agreement for the west
coast operation. We also recently announced the development
of a mobile application that will provide a full-service logistics
platform between the US and China
to short-haul trucking in the US. After speaking with several
existing and potential customers, we believe that Sino-Global's
experience in providing logistics service and solutions, coupled
with our long term relationships with major shipping carriers,
provide a competitive advantage to build a mobile-based
platform. We have a strong capital position, and are
optimistic about the prospects for the Company."
Fiscal Year 2016 Operating Highlights
(all comparisons to the prior year)
- Total revenues were $7.3 million,
compared to $11.3 million, largely
due to lower revenues from the Company's shipping agency services
segment due to a general economic slow-down and rising labor costs
in China and additional
competition within the industry, with established and new
competitors offering rates that in many cases are much lower than
the Company was willing to offer. As a result, the Company
began to explore new avenues for potential revenue enhancement
through the development of logistic solutions throughout
the United States.
- In January 2016, the Company
formed a new subsidiary Sino-Global Shipping LA Inc. for the
purpose of expanding its business into providing logistic services
including cargo forwarding and truck transportation and customs
filing services to customers. The Company expects this new business
line will help expand its platform to generate increased revenue in
the near future.
Expectations for Fiscal 2017
- The Company's Board of Directors has authorized management to
move forward with the development of a mobile application that will
provide a full-service logistics platform between the US and
China to short-haul trucking in
the US. Sino-Global is currently evaluating technology and
business partners to move forward with the development of the
mobile application, which the management hopes to launch in
2017.
Fiscal Year 2016 Financial Review
The following table presents summary information by segment for
the years ended June 30, 2016 and
2015:
|
|
For the Year Ended
June 30, 2016
|
|
For the Year Ended
June 30, 2015
|
|
|
Shipping
|
|
|
|
|
|
|
|
Shipping
|
|
|
|
|
|
|
|
|
Agency and
|
|
|
|
Inland
|
|
|
|
Agency and
|
|
|
|
Inland
|
|
|
|
|
Ship
|
|
Shipping
and
|
|
Transportation
|
|
|
|
Ship
|
|
Shipping
and
|
|
Transportation
|
|
|
|
|
Management
|
|
Chartering
|
|
Management
|
|
|
|
Management
|
|
Chartering
|
|
Management
|
|
|
|
|
Services
|
|
Services
|
|
Services
|
|
Consolidated
|
|
Services
|
|
Services
|
|
Services
|
|
Consolidated
|
Revenues
|
|
$
|
2,507,800
|
|
$
|
462,218
|
|
$
|
4,340,522
|
|
$
|
7,310,540
|
|
$
|
6,185,653
|
|
$
|
349,125
|
|
$
|
4,785,850
|
|
$
|
11,320,628
|
Cost of
revenues
|
|
$
|
2,175,109
|
|
|
212,510
|
|
$
|
1,350,370
|
|
$
|
3,737,989
|
|
$
|
4,998,030
|
|
|
182,650
|
|
$
|
755,603
|
|
$
|
5,936,283
|
Gross
profit
|
|
$
|
332,691
|
|
|
249,708
|
|
$
|
2,990,152
|
|
$
|
3,572,551
|
|
$
|
1,187,623
|
|
|
166,475
|
|
$
|
4,030,247
|
|
$
|
5,384,345
|
Gross
margin
|
|
|
13.27%
|
|
|
54.02%
|
|
|
68.89%
|
|
|
48.87%
|
|
|
19.20%
|
|
|
47.68%
|
|
|
84.21%
|
|
|
47.56%
|
- Gross margin for the year increased to 48.9% from 47.6%,
largely due to a change in service mix from the Company's inland
transportation business which provided higher margin.
- Net loss for fiscal year 2016 was $2.3
million compared to net income of $643,922, largely as the result of a decrease in
total revenue, expenses incurred from the launch of the Company's
west coast subsidiary without corresponding revenues, and a rise in
income tax expense.
- Net increase in cash and cash equivalents during the year was
$655,672, compared to a net decrease
of $172,209 in the prior year.
The reason for the increase was primarily the collection of
outstanding accounts receivables contributing to a decrease in net
cash used in operating activities.
Balance Sheet Information
- As of June 30, 2016, the Company
had $1,385,994 in cash and cash
equivalents, working capital of $6.2
million and shareholder equity of $6.6 million; compared to $0.7 million, $6.2
million, and $9.9 million,
respectively, as of June 30,
2015.
- The Company holds no long-term debt.
Stock Repurchase Plan Update
On October 11, 2015, the Board of
Directors of Sino-Global approved a stock repurchase program, in
accordance with the retirement method, authorizing the repurchase
of up to $100,000 of its common stock
during the quarter ending December 31,
2015. Thereafter the Company may repurchase an aggregate
value of shares per quarter equal to 10% to 15% of Sino-Global's
quarterly net income for which the most recent quarterly or annual
report has been filed. The plan is set to expire October 20, 2016.
In summary, the Company had repurchased a total of 50,306 common
shares at an average stock price of $0.89 per share as of June
30, 2016.
About Sino-Global Shipping America, Ltd.
Sino-Global Shipping America, Ltd., a Virginia corporation, is a non-asset based
global shipping and freight logistic integrated solution provider.
Sino-Global provides tailored solutions and value added services to
its shipping and freight customers to drive effectiveness and
control in related links throughout entire logistic chain.
Additional information about Sino-Global can be found on the
Company's corporate website at www.sino-global.net. 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 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 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
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.
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 Years
Ended June 30,
|
|
|
|
2016
|
|
|
2015
|
|
|
|
|
|
|
|
|
Net
revenues
|
|
$
|
7,310,540
|
|
|
$
|
11,320,628
|
|
|
|
|
|
|
|
|
|
|
Cost of
revenues
|
|
|
(3,737,989)
|
|
|
|
(5,936,283)
|
|
Gross
profit
|
|
|
3,572,551
|
|
|
|
5,384,345
|
|
|
|
|
|
|
|
|
|
|
General and
administrative expenses
|
|
|
(4,346,159)
|
|
|
|
(4,304,329)
|
|
Selling
expenses
|
|
|
(475,619)
|
|
|
|
(63,219)
|
|
Total operating
expenses
|
|
|
(4,821,778)
|
|
|
|
(4,367,548)
|
|
|
|
|
|
|
|
|
|
|
Operating income
(loss)
|
|
|
(1,249,227)
|
|
|
|
1,016,797
|
|
|
|
|
|
|
|
|
|
|
Financial income
(expense), net
|
|
|
(247,530)
|
|
|
|
14,200
|
|
Other income,
net
|
|
|
7,828
|
|
|
|
40,146
|
|
Total other income
(expense)
|
|
|
(239,702)
|
|
|
|
54,346
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
before provision for income taxes
|
|
|
(1,488,929)
|
|
|
|
1,071,143
|
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
|
|
(812,593)
|
|
|
|
(427,221)
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
|
(2,301,522)
|
|
|
|
643,922
|
|
|
|
|
|
|
|
|
|
|
Net loss attributable
to non-controlling interest
|
|
|
(335,593)
|
|
|
|
(73,468)
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to Sino-Global Shipping America, Ltd.
|
|
$
|
(1,965,929)
|
|
|
$
|
717,390
|
|
|
|
|
|
|
|
|
|
|
Comprehensive
income (loss)
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
$
|
(2,301,522)
|
|
|
$
|
643,922
|
|
Foreign currency
translation (loss) gain
|
|
|
(134,155)
|
|
|
|
124,375
|
|
Comprehensive income
(loss)
|
|
|
(2,435,677)
|
|
|
|
768,297
|
|
Less: Comprehensive
loss attributable to non-controlling interest
|
|
|
(97,409)
|
|
|
|
(15,907)
|
|
|
|
|
|
|
|
|
|
|
Comprehensive
income (loss) attributable to Sino-Global Shipping America
Ltd.
|
|
$
|
(2,338,268)
|
|
|
$
|
784,204
|
|
|
|
|
|
|
|
|
|
|
Earnings (deficit)
per share
|
|
|
|
|
|
|
|
|
-Basic and
diluted
|
|
$
|
(0.23)
|
|
|
$
|
0.11
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of common shares used in computation
|
|
|
|
|
|
|
|
|
-Basic and
diluted
|
|
|
8,651,606
|
|
|
|
6,443,096
|
|
SINO-GLOBAL
SHIPPING AMERICA, LTD. AND AFFILIATES
CONSOLIDATED
BALANCE SHEETS
|
|
|
|
June
30,
|
|
|
|
2016
|
|
|
2015
|
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
1,385,994
|
|
|
$
|
730,322
|
|
Advances to
suppliers
|
|
|
2,192,910
|
|
|
|
50,975
|
|
Accounts receivable,
less allowance for doubtful accounts of $207,028 and $477,240 as of
June 30, 2016 and 2015, respectively
|
|
|
2,333,024
|
|
|
|
3,082,219
|
|
Other receivables,
less allowance for doubtful accounts of $145,186 and $241,604 as of
June 30, 2016 and 2015, respectively
|
|
|
290,907
|
|
|
|
191,972
|
|
Prepaid expense and
other current assets
|
|
|
826,631
|
|
|
|
1,265,609
|
|
Due from related
parties
|
|
|
1,622,519
|
|
|
|
2,784,591
|
|
|
|
|
|
|
|
|
|
|
Total Current
Assets
|
|
|
8,651,985
|
|
|
|
8,105,688
|
|
|
|
|
|
|
|
|
|
|
Property and
equipment, net
|
|
|
176,367
|
|
|
|
214,003
|
|
Prepaid
expenses
|
|
|
178,982
|
|
|
|
436,351
|
|
Other long-term
assets
|
|
|
46,810
|
|
|
|
2,773,908
|
|
Deferred tax
assets
|
|
|
-
|
|
|
|
280,600
|
|
|
|
|
|
|
|
|
|
|
Total
Assets
|
|
$
|
9,054,144
|
|
|
$
|
11,810,550
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
Liabilities
|
|
|
|
|
|
|
|
|
Advances from
customers
|
|
$
|
24,373
|
|
|
$
|
126,201
|
|
Accounts
payable
|
|
|
489,490
|
|
|
|
691,588
|
|
Taxes
payable
|
|
|
1,637,197
|
|
|
|
996,648
|
|
Accrued expenses and
other current liabilities
|
|
|
286,322
|
|
|
|
99,607
|
|
|
|
|
|
|
|
|
|
|
Total Current
Liabilities
|
|
|
2,437,382
|
|
|
|
1,914,044
|
|
|
|
|
|
|
|
|
|
|
Total
Liabilities
|
|
|
2,437,382
|
|
|
|
1,914,044
|
|
|
|
|
|
|
|
|
|
|
Commitments and
Contingency
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity
|
|
|
|
|
|
|
|
|
Preferred stock,
2,000,000 shares authorized, no par value, none issued.
|
|
|
-
|
|
|
|
-
|
|
Common stock,
50,000,000 shares authorized, no par value; 8,456,032 and 7,996,032
shares issued as of June 30, 2016 and 2015; 8,280,535 and 7,870,841
outstanding as of June 30, 2016 and 2015, respectively
|
|
|
15,500,391
|
|
|
|
16,303,327
|
|
Additional paid-in
capital
|
|
|
1,144,842
|
|
|
|
1,144,842
|
|
Treasury stock, at
cost - 175,497 and 125,191 shares as of June 30, 2016 and 2015,
respectively
|
|
|
(417,538)
|
|
|
|
(372,527)
|
|
Accumulated
deficit
|
|
|
(4,518,799)
|
|
|
|
(2,552,870)
|
|
Accumulated other
comprehensive income (loss)
|
|
|
(280,907)
|
|
|
|
91,432
|
|
Unearned stock-based
compensation
|
|
|
(3,880)
|
|
|
|
(7,760)
|
|
|
|
|
|
|
|
|
|
|
Total Sino-Global
Shipping America Ltd. Stockholders' Equity
|
|
|
11,424,109
|
|
|
|
14,606,444
|
|
|
|
|
|
|
|
|
|
|
Non-controlling
Interest
|
|
|
(4,807,347)
|
|
|
|
(4,709,938)
|
|
|
|
|
|
|
|
|
|
|
Total
Equity
|
|
|
6,616,762
|
|
|
|
9,896,506
|
|
|
|
|
|
|
|
|
|
|
Total Liabilities
and Equity
|
|
$
|
9,054,144
|
|
|
$
|
11,810,550
|
|
SINO-GLOBAL
SHIPPING AMERICA LTD. AND AFFILIATE
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
|
|
|
For the Years
Ended June 30,
|
|
|
|
2016
|
|
|
2015
|
|
Operating
Activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
$
|
(2,301,522)
|
|
|
$
|
643,922
|
|
Adjustment to
reconcile net income (loss) to net cash used in operating
activities
|
|
|
|
|
|
|
|
|
Stock-based
compensation to management
|
|
|
349,800
|
|
|
|
-
|
|
Amortization of
stock-based compensation to consultants
|
|
|
1,327,780
|
|
|
|
512,269
|
|
Amortization of stock
option expense
|
|
|
3,880
|
|
|
|
3,880
|
|
Depreciation and
amortization
|
|
|
59,508
|
|
|
|
165,088
|
|
Provision of doubtful
accounts
|
|
|
132,915
|
|
|
|
33,382
|
|
Deferred tax
provision (benefit)
|
|
|
280,600
|
|
|
|
(116,700)
|
|
Loss on disposition
of property and equipment
|
|
|
-
|
|
|
|
(20,693)
|
|
Changes in assets and
liabilities
|
|
|
|
|
|
|
|
|
Increase in advances
to suppliers
|
|
|
(2,141,935)
|
|
|
|
(42,493)
|
|
Decrease (increase)
in accounts receivable
|
|
|
616,280
|
|
|
|
(2,633,716)
|
|
Increase in other
receivables
|
|
|
(98,935)
|
|
|
|
(17,566)
|
|
Increase in prepaid
expense
|
|
|
(4,228)
|
|
|
|
(296,750)
|
|
Increase in other
assets
|
|
|
(30,600)
|
|
|
|
(20,943)
|
|
Decrease (increase)
in due from related parties
|
|
|
1,162,072
|
|
|
|
(724,425)
|
|
(Decrease) increase
in advances from customers
|
|
|
(101,828)
|
|
|
|
37,724
|
|
(Decrease) increase
in accounts payable
|
|
|
(202,098)
|
|
|
|
292,832
|
|
Increase in taxes
payable
|
|
|
640,549
|
|
|
|
789,188
|
|
Increase (decrease)
in accrued expenses and other current liabilities
|
|
|
186,714
|
|
|
|
(403,097)
|
|
|
|
|
|
|
|
|
|
|
Net cash used in
operating activities
|
|
|
(121,048)
|
|
|
|
(1,798,098)
|
|
|
|
|
|
|
|
|
|
|
Investing
Activities
|
|
|
|
|
|
|
|
|
Acquisitions of
property and equipment
|
|
|
(31,659)
|
|
|
|
(84,102)
|
|
Proceeds from sale of
property and equipment
|
|
|
-
|
|
|
|
80,661
|
|
Cash collected from
the termination of vessel acquisition
|
|
|
326,035
|
|
|
|
|
|
Collection of
short-term loan from related party
|
|
|
-
|
|
|
|
1,113,599
|
|
Acquisitions of
vessel
|
|
|
-
|
|
|
|
(516,229)
|
|
|
|
|
|
|
|
|
|
|
Net cash provided
by investing activities
|
|
|
294,376
|
|
|
|
593,929
|
|
|
|
|
|
|
|
|
|
|
Financing
Activities
|
|
|
|
|
|
|
|
|
Proceeds from
issuance of common stock, net
|
|
|
691,600
|
|
|
|
967,820
|
|
Purchase of common
stock
|
|
|
(45,011)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided
by financing activities
|
|
|
646,589
|
|
|
|
967,820
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange
rate fluctuations on cash and cash equivalents
|
|
|
(164,245)
|
|
|
|
64,140
|
|
|
|
|
|
|
|
|
|
|
Net increase
(decrease) in cash and cash equivalents
|
|
|
655,672
|
|
|
|
(172,209)
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents at beginning of year
|
|
|
730,322
|
|
|
|
902,531
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents at end of year
|
|
$
|
1,385,994
|
|
|
$
|
730,322
|
|
|
|
|
|
|
|
|
|
|
Supplemental
information
|
|
|
|
|
|
|
|
|
Income taxes
paid
|
|
$
|
23,286
|
|
|
$
|
8,104
|
|
Non-cash
transactions of operating activities:
|
|
|
|
|
|
|
|
|
Common stock issued
for vessel acquisition
|
|
$
|
-
|
|
|
$
|
2,220,000
|
|
Return of common
stock issued for vessel acquisition
|
|
$
|
(2,220,000)
|
|
|
$
|
-
|
|
Common stock issued
for stock-based compensation to consultants
|
|
$
|
435,000
|
|
|
$
|
1,419,950
|
|
Common stock issued
for LSM acquisition
|
|
$
|
-
|
|
|
$
|
33,400
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/sino-global-announces-2016-year-end-financial-results-300330412.html
SOURCE Sino-Global Shipping America, Ltd.