ROSLYN, N.Y., May 15, 2017 /PRNewswire/ -- Sino-Global
Shipping America, Ltd. (NASDAQ: SINO) ("Sino-Global", the "Company"
or "us"), a company engaged in shipping, chartering, logistics and
related services, today announced its financial results for the
fiscal year 2017 third quarter ended March 31, 2017.
Fiscal Year 2017 Third Quarter Operating and Financial
Highlights
(all comparisons to the prior year
period)
- Total revenues increased 134.1% to approximately $2.75 million, as compared to $1.17 million for the prior year. The increase
was primarily the result of a shift in the Company's business mix
towards less cost services.
- Gross profit increased to $1.6
million as compared to $553,227 for the prior year period.
- Net income for the third quarter of fiscal year 2017 was
$1.3 million compared to net loss of
$854,876.
- During the quarter, the Company entered into a joint venture
agreement with Jetta Global Logistics Inc. to begin providing short
haul trucking transportation and logistics services to customers
located in the New York and
New Jersey areas.
- The Company signed a strategic cooperation agreement with China
Ocean Shipping Agency Qingdao Co. Ltd. which will utilize the
Company's full-service logistics platform to arrange the transport
of its container shipments into U.S. ports.
- In February 2017, the Company
completed a registered direct offering and sale of the Company's
common stock for net proceeds of approximately $4.3 million.
- As of March 31, 2017, the Company
had cash and cash equivalents of $8.8
million, working capital of $13.0
million and shareholder equity of $18.5 million; compared to $1.4 million, $6.2
million, and $11.4 million,
respectively, as of June 30,
2016.
Management Comments
Mr. Lei Cao, Chief Executive Officer of Sino-Global, stated, "We
had a strong quarter and nine-month period marked by significant
increases in revenue and a substantial reduction in our operating
expenses. We continued to make progress on the initiatives we first
implemented last year with the wind down of our Shipping Agency and
Ship Management services as well as the discontinuation of our
shipping and charter business. The shift in business mix towards
lower-cost services has resulted in profit margins for the
three-month period of 58.8% as compared to 47.1% for the prior
year.
"We entered several agreements over the quarter and are
confident that these agreements will further solidify our efforts
to grow our business and strengthen our service offerings. During
the quarter, we also continued to work with our current customers
to improve timely payments for outstanding receivables.
Sino-Global's capital position is strong and we completed a
registered direct financing during the three-month period. We
intend to use the capital raised to further grow the Company and
invest in the long-term future of Sino-Global."
Fiscal Year 2017, Third Quarter Financial Review
|
|
For the three
months Ended March 31, 2017
|
|
|
|
Shipping
Agency & Ship
Management
Services
|
|
|
Shipping &
Chartering
Services
|
|
|
Inland
Transportation
Management
Services
|
|
|
Freight
Logistic
Services
|
|
|
Container
Trucking
Services
|
|
|
Total
|
|
Revenues
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
1,533,840
|
|
|
$
|
827,908
|
|
|
$
|
385,863
|
|
|
$
|
2,747,611
|
|
Cost of
revenues
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
79,983
|
|
|
$
|
699,578
|
|
|
$
|
352,652
|
|
|
$
|
1,132,213
|
|
Gross
profit
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
1,453,857
|
|
|
$
|
128,330
|
|
|
$
|
33,211
|
|
|
$
|
1,615,398
|
|
Depreciation and
amortization
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
5,655
|
|
|
$
|
5,370
|
|
|
$
|
-
|
|
|
$
|
11,025
|
|
Total capital
expenditures
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
55,474
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
55,474
|
|
Total
Assets
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
9,745,774
|
|
|
$
|
7,159,321
|
|
|
$
|
703,363
|
|
|
$
|
17,608,458
|
|
|
|
|
|
For the three
months Ended March 31, 2016
|
|
|
|
Shipping
Agency & Ship
Management
Services
|
|
|
Shipping &
Chartering
Services
|
|
|
Inland
Transportation
Management
Services
|
|
|
Total
|
|
Revenues
|
|
$
|
232,901
|
|
|
$
|
-
|
|
|
$
|
940,868
|
|
|
$
|
1,173,769
|
|
Cost of
revenues
|
|
$
|
184,388
|
|
|
$
|
-
|
|
|
$
|
436,154
|
|
|
$
|
620,542
|
|
Gross
profit
|
|
$
|
48,513
|
|
|
$
|
-
|
|
|
$
|
504,714
|
|
|
$
|
553,227
|
|
Depreciation and
amortization
|
|
$
|
8,622
|
|
|
$
|
1,093
|
|
|
$
|
5,226
|
|
|
$
|
14,941
|
|
Total capital
expenditures
|
|
$
|
-
|
|
|
$
|
15,360
|
|
|
$
|
-
|
|
|
$
|
15,360
|
|
Total
Assets
|
|
$
|
685,601
|
|
|
$
|
540,132
|
|
|
$
|
7,422,570
|
|
|
$
|
8,648,303
|
|
- Total revenues were approximately $2.75
million during the period, compared to $1.17 million in the prior year period. This
increase was primarily the result of a rise in revenues for the
Company's inland transportation management services, and a shift
towards lower- cost services with the addition of freight logistic
and container trucking services.
- The Company's gross profit for the period was $1.6 million, compared to $553,227 in the prior year period. Gross profit
margin during the period increased to 58.8% from 47.1%, largely due
to a decrease in the cost of revenues for the inland transportation
management services segment coupled with an increase in revenue
from all business segments.
- Operating income for the three months ended March 31, 2017 was $961,712, compared to operating loss of
$660,740 for the comparable period
ended March 31, 2016. This increase
was due to revenue generated from inland transportation management
services with strong margin contributions.
- For the three months ended March 31,
2017, the Company reported a net income of $1.3 million, compared to net loss of
$854,876 for the three months ended
March 31, 2016.
Balance Sheet Information
- As of March 31, 2017, the Company
had $8.8 million in cash and cash
equivalents, working capital of $13.0
million and shareholder equity of $18.5 million; compared to $1.4 million, $6.2
million, and $11.4 million,
respectively, as of June 30,
2016.
- The Company holds 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.
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
March 31,
|
|
|
For the Nine
Months Ended
March 31,
|
|
|
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenues - third
parties
|
|
$
|
1,984,834
|
|
|
$
|
616,821
|
|
|
$
|
4,591,381
|
|
|
$
|
3,553,428
|
|
Net revenues -
related party
|
|
|
762,777
|
|
|
|
556,948
|
|
|
|
2,229,180
|
|
|
|
1,916,510
|
|
Total
revenues
|
|
|
2,747,611
|
|
|
|
1,173,769
|
|
|
|
6,820,561
|
|
|
|
5,469,938
|
|
Cost of
revenues
|
|
|
(1,132,213)
|
|
|
|
(620,542)
|
|
|
|
(1,789,348)
|
|
|
|
(2,568,345)
|
|
Gross
profit
|
|
|
1,615,398
|
|
|
|
553,227
|
|
|
|
5,031,213
|
|
|
|
2,901,593
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General and
administrative expenses
|
|
|
(612,441)
|
|
|
|
(1,190,614)
|
|
|
|
(2,248,639)
|
|
|
|
(4,084,858)
|
|
Selling
expenses
|
|
|
(41,245)
|
|
|
|
(23,353)
|
|
|
|
(153,429)
|
|
|
|
(67,478)
|
|
Total operating
expenses
|
|
|
(653,686)
|
|
|
|
(1,213,967)
|
|
|
|
(2,402,068)
|
|
|
|
(4,152,336)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
(loss)
|
|
|
961,712
|
|
|
|
(660,740)
|
|
|
|
2,629,145
|
|
|
|
(1,250,743)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial income
(expense), net
|
|
|
34,167
|
|
|
|
61,183
|
|
|
|
(57,737)
|
|
|
|
(251,800)
|
|
Other income,
net
|
|
|
-
|
|
|
|
10,402
|
|
|
|
-
|
|
|
|
5,781
|
|
Total other income
(expense)
|
|
|
34,167
|
|
|
|
71,585
|
|
|
|
(57,737)
|
|
|
|
(246,019)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
before provision for income taxes
|
|
|
995,879
|
|
|
|
(589,155)
|
|
|
|
2,571,408
|
|
|
|
(1,496,762)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax benefit
(expense)
|
|
|
303,196
|
|
|
|
(265,721)
|
|
|
|
158,184
|
|
|
|
(839,076)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
|
1,299,075
|
|
|
|
(854,876)
|
|
|
|
2,729,592
|
|
|
|
(2,335,838)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to non-controlling interest
|
|
|
4,021
|
|
|
|
(116,667)
|
|
|
|
(104,083)
|
|
|
|
(282,688)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to Sino-Global Shipping America, Ltd.
|
|
$
|
1,295,054
|
|
|
$
|
(738,209)
|
|
|
$
|
2,833,675
|
|
|
$
|
(2,053,150)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive
income (loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
$
|
1,299,075
|
|
|
$
|
(854,876)
|
|
|
$
|
2,729,592
|
|
|
$
|
(2,335,838)
|
|
Other comprehensive
income (loss) - foreign currency translation gain (loss)
|
|
|
4,871
|
|
|
|
(7,740)
|
|
|
|
(114,011)
|
|
|
|
(46,058)
|
|
Comprehensive income
(loss)
|
|
|
1,303,946
|
|
|
|
(862,616)
|
|
|
|
2,615,581
|
|
|
|
(2,381,896)
|
|
Less: Comprehensive
income (loss) attributable to non-controlling interest
|
|
|
(19,419)
|
|
|
|
(141,532)
|
|
|
|
4,702
|
|
|
|
(142,401)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive
income (loss) attributable to Sino-Global Shipping America
Ltd.
|
|
$
|
1,323,365
|
|
|
$
|
(721,084)
|
|
|
$
|
2,610,879
|
|
|
$
|
(2,239,495)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss)
per share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-Basic
|
|
$
|
0.14
|
|
|
$
|
(0.09)
|
|
|
$
|
0.33
|
|
|
$
|
(0.25)
|
|
-Diluted
|
|
$
|
0.14
|
|
|
$
|
(0.09)
|
|
|
$
|
0.33
|
|
|
$
|
(0.25)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of common shares used in computation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-Basic
|
|
|
8,994,146
|
|
|
|
8,337,325
|
|
|
|
8,514,080
|
|
|
|
8,364,296
|
|
-Diluted
|
|
|
9,028,928
|
|
|
|
8,337,325
|
|
|
|
8,534,701
|
|
|
|
8,364,296
|
|
Sino-Global
Shipping America, Ltd. And Affiliates
|
Condensed
Consolidated Balance Sheets
|
(Unaudited)
|
|
|
|
March
31,
|
|
|
June
30,
|
|
|
|
2017
|
|
|
2016
|
|
Assets
|
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
8,840,189
|
|
|
$
|
1,385,994
|
|
Accounts receivable,
less allowance for doubtful accounts of $97,111 and $207,028 as of
March 31, 2017 and June 30, 2016, respectively
|
|
|
1,883,119
|
|
|
|
2,333,024
|
|
Other receivables,
less allowance for doubtful accounts of $145,235 and $145,186 as of
March 31, 2017 and June 30, 2016, respectively
|
|
|
103,325
|
|
|
|
290,907
|
|
Advances to
suppliers
|
|
|
1,325,272
|
|
|
|
2,192,910
|
|
Prepaid expenses and
other current assets
|
|
|
355,442
|
|
|
|
826,631
|
|
Due from related
parties
|
|
|
4,406,186
|
|
|
|
1,622,519
|
|
|
|
|
|
|
|
|
|
|
Total Current
Assets
|
|
|
16,913,533
|
|
|
|
8,651,985
|
|
|
|
|
|
|
|
|
|
|
Property and
equipment, net
|
|
|
196,845
|
|
|
|
176,367
|
|
Prepaid
expenses
|
|
|
49,699
|
|
|
|
178,982
|
|
Other long-term
assets
|
|
|
60,481
|
|
|
|
46,810
|
|
Deferred tax
assets
|
|
|
387,900
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
Total
Assets
|
|
$
|
17,608,458
|
|
|
$
|
9,054,144
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
Liabilities
|
|
|
|
|
|
|
|
|
Advances from
customers
|
|
$
|
344,470
|
|
|
$
|
24,373
|
|
Accounts
payable
|
|
|
784,411
|
|
|
|
489,490
|
|
Taxes
payable
|
|
|
1,792,099
|
|
|
|
1,637,197
|
|
Due to related
parties
|
|
|
156,841
|
|
|
|
-
|
|
Accrued expenses and
other current liabilities
|
|
|
800,916
|
|
|
|
286,322
|
|
|
|
|
|
|
|
|
|
|
Total Current
Liabilities
|
|
|
3,878,737
|
|
|
|
2,437,382
|
|
|
|
|
|
|
|
|
|
|
Total
Liabilities
|
|
|
3,878,737
|
|
|
|
2,437,382
|
|
|
|
|
|
|
|
|
|
|
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; 10,105,535 and
8,456,032 shares issued as of March 31, 2017 and June 30, 2016;
9,930,038 and 8,280,535 outstanding as of March 31, 2017 and June
30, 2016, respectively
|
|
|
20,535,379
|
|
|
|
15,500,391
|
|
Additional paid-in
capital
|
|
|
603,352
|
|
|
|
1,140,962
|
|
Treasury stock, at
cost, 175,497 shares as of March 31, 2017 and June 30,
2016
|
|
|
(417,538)
|
|
|
|
(417,538)
|
|
Accumulated
deficit
|
|
|
(1,685,124)
|
|
|
|
(4,518,799)
|
|
Accumulated other
comprehensive loss
|
|
|
(503,703)
|
|
|
|
(280,907)
|
|
|
|
|
|
|
|
|
|
|
Total Sino-Global
Shipping America Ltd. Stockholders' Equity
|
|
|
18,532,366
|
|
|
|
11,424,109
|
|
|
|
|
|
|
|
|
|
|
Non-controlling
Interest
|
|
|
(4,802,645)
|
|
|
|
(4,807,347)
|
|
|
|
|
|
|
|
|
|
|
Total
Equity
|
|
|
13,729,721
|
|
|
|
6,616,762
|
|
|
|
|
|
|
|
|
|
|
Total Liabilities
and Equity
|
|
$
|
17,608,458
|
|
|
$
|
9,054,144
|
|
Sino-Global
Shipping America Ltd. And Affiliate
|
Sino-Global
Shipping America, Ltd. And Affiliates
|
Condensed
Consolidated Statements Of Cash Flows
|
(Unaudited)
|
|
|
|
For the nine
months ended
March 31,
|
|
|
|
2017
|
|
|
2016
|
|
Operating
Activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
$
|
2,729,592
|
|
|
$
|
(2,335,838)
|
|
Adjustment to
reconcile net income (loss) to net cash provided by operating
activities:
|
|
|
|
|
|
|
|
|
Amortization of
stock-based compensation to consultants
|
|
|
547,138
|
|
|
|
922,542
|
|
Amortization of stock
option expense
|
|
|
77,320
|
|
|
|
-
|
|
Depreciation and
amortization
|
|
|
36,432
|
|
|
|
44,017
|
|
Provision for
(recovery of) doubtful accounts
|
|
|
(107,608)
|
|
|
|
73,746
|
|
Provision for
doubtful accounts on related party receivable
|
|
|
|
|
|
|
174,604
|
|
Deferred tax
provision (benefit)
|
|
|
(387,900)
|
|
|
|
280,600
|
|
Changes in assets and
liabilities
|
|
|
|
|
|
|
|
|
Decrease in accounts
receivable
|
|
|
517,463
|
|
|
|
1,145,529
|
|
Decrease (increase)
in other receivables
|
|
|
184,753
|
|
|
|
(124,631)
|
|
Decrease in advances
to suppliers
|
|
|
816,715
|
|
|
|
44,768
|
|
Decrease in prepaid
expenses
|
|
|
82,210
|
|
|
|
310,824
|
|
Increase in other
current assets
|
|
|
(16,931)
|
|
|
|
(32,453)
|
|
Increase in other
long-term assets
|
|
|
(14,185)
|
|
|
|
(644)
|
|
(Increase) decrease
in due from related parties
|
|
|
(2,843,131)
|
|
|
|
1,721,904
|
|
Increase (decrease)
in advances from customers
|
|
|
324,476
|
|
|
|
(101,825)
|
|
Increase (decrease)
in accounts payable
|
|
|
312,883
|
|
|
|
(379,579)
|
|
Increase in taxes
payable
|
|
|
201,259
|
|
|
|
743,580
|
|
Increase in due to
related parties
|
|
|
156,841
|
|
|
|
-
|
|
Increase (decrease)
in accrued expenses and other current liabilities
|
|
|
514,445
|
|
|
|
(16,144)
|
|
|
|
|
|
|
|
|
|
|
Net cash provided
by operating activities
|
|
|
3,131,772
|
|
|
|
2,471,000
|
|
|
|
|
|
|
|
|
|
|
Investing
Activities
|
|
|
|
|
|
|
|
|
Acquisition of
property and equipment
|
|
|
(55,474)
|
|
|
|
(18,662)
|
|
Cash collected from
the termination of vessel acquisition
|
|
|
-
|
|
|
|
327,570
|
|
|
|
|
|
|
|
|
|
|
Net cash provided
by (used in) investing activities
|
|
|
(55,474)
|
|
|
|
308,908
|
|
|
|
|
|
|
|
|
|
|
Financing
Activities
|
|
|
|
|
|
|
|
|
Proceeds from
issuance of common stock, net
|
|
|
4,319,988
|
|
|
|
691,600
|
|
Proceeds from
exercise of stock options
|
|
|
82,500
|
|
|
|
-
|
|
Repurchase of common
stock
|
|
|
-
|
|
|
|
(43,451)
|
|
|
|
|
|
|
|
|
|
|
Net cash provided
by financing activities
|
|
|
4,402,488
|
|
|
|
648,149
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange
rate fluctuations on cash and cash equivalents
|
|
|
(24,591)
|
|
|
|
(82,272)
|
|
|
|
|
|
|
|
|
|
|
Net increase in
cash and cash equivalents
|
|
|
7,454,195
|
|
|
|
3,345,785
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents at beginning of period
|
|
|
1,385,994
|
|
|
|
730,322
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents at end of period
|
|
$
|
8,840,189
|
|
|
$
|
4,076,107
|
|
|
|
|
|
|
|
|
|
|
Supplemental
information
|
|
|
|
|
|
|
|
|
Income taxes
paid
|
|
$
|
89,324
|
|
|
$
|
-
|
|
Non-cash investing
and financing activities:
|
|
|
|
|
|
|
|
|
Common stock issued
for vessel acquisition
|
|
$
|
-
|
|
|
$
|
2,220,000
|
|
Return of common
stock issued for vessel acquisition
|
|
$
|
-
|
|
|
$
|
(2,220,000)
|
|
Issuance of common
stock to pay for professional services
|
|
$
|
632,500
|
|
|
$
|
255,000
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/sino-global-announces-fiscal-year-2017-third-quarter-financial-results-highlighted-by-a-1341-increase-in-total-revenue-and-stronger-balance-sheet-and-more-free-cash-flow-300457500.html
SOURCE Sino-Global Shipping America, Ltd.