ROSLYN, N.Y., May 14, 2018 /PRNewswire/ -- Sino-Global Shipping
America, Ltd. (NASDAQ: SINO) ("Sino-Global," the "Company" or
"we"), a logistics integrated solution provider engaged in
non-asset based global shipping, freight logistics, and inland
transportation management and related services, today announced its
financial results for the third quarter of the fiscal year 2018
ended March 31, 2018. The Company has also provided extensive
information 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 third quarter of fiscal year
2018, background on Sino-Global's business and history, as well as
Company strategy for the coming fiscal year.
Fiscal Year 2018 Third Quarter Operating and Financial
Highlights
(as compared to the same period of the prior
year)
- Total revenues of this quarter increased 89.3% or $2.5 million to $5.2
million, compared to $2.7
million. The increase was primarily due to the Company's
efforts to diversify its business in freight logistics
services.
- Gross margin decreased from 58.8% to 34.5% as a result of lower
margin fragmented freight logistics services have been provided to
customers in the current period in comparison with the
corresponding period in 2017. The Company strategically allocated
its resources to develop new businesses and markets in the U.S. as
the focus for its growth.
- Net income for the third quarter of fiscal year 2018 was
$0.24 million, as compared to a net
income of $1.3 million for the same
period of the prior year. The decrease was due to higher cost of
revenues associated with our fragmented freight logistics services
which reduced the gross margin. In addition, our general and
administrative expenses increased as a result of increased bad debt
reserve and increased professional fee , and increased income tax
expense of $0.26 million as compared
to a tax benefit of $0.30 million
recognized during the prior year period.
- On March 14, 2018, the Company
closed a $3 million registered direct
offering of its common stock and concurrent private placement of
its Series A Warrants and Series B Warrants.
- At March 31, 2018, the Company
had cash and cash equivalents of $9.5
million, and holds no long-term debt.
Management Commentary
Mr. Lei Cao, Chairman and Chief Executive Officer of Sino-Global
commented, "We continue to ramp up and expand our business with our
focus on our inland transportation, freight logistics and container
trucking services. We were pleased with our growth for the quarter.
However, there were several factors that adversely affected our
bottom line. These factors included a change in our product mix
towards freight logistics services which generates higher revenues
but has lower profit margins than our other services. We also
recognized an income tax expense for the quarter of $0.26 million due to changes in deferred tax
assets for the three-month period."
Mr. Cao continued. "Also during the quarter, we completed a
capital raise that resulted in net proceeds of $2.6 million, after related costs. We intend to
use the money raised towards the further development of our
business. In the remaining period of fiscal year 2018, we will
continue to focus on increasing revenue and cash flow in the U.S.
We will continue to use our bulk cargo container business in
partnership with COSCO to seek solutions for empty containers
between container shipping lines from the U.S. to China and view this aspect of our operations
as a major part of our growth."
In addition to the growth of Sino-Global's bulk cargo container
business segment, management continues to focus on growth of the
Company's container truck business in the
United States and anticipates further positive developments
of this segment of the Company's operations in the coming
months.
Fiscal Year 2018, Third Quarter Financial Review
- Revenues increased by $2.5
million, or 89.3%, to $5.2
million from $2.7 million for
the three months ended March 31,
2017. This increase was primarily attributable to the
Company diversifying its business in freight logistics services.
Revenues generated from freight logistics services increased by
$2.7 million, or 332.1%, from the
three months ended March 31,
2017.
- The Company's gross profit during the period was $1.8 million as compared to the prior year period
at $1.6 million.
- Total operating costs and expenses increased to $4.9 million for the three months ended
March 31, 2018 from $1.8 million for the prior year period. The
increase was attributable to several factors primarily focused on
the diversification of the business which included a rise in the
cost of revenue attributable to different segments, general and
administrative expenses.
- Operating income for the three months ended March 31, 2018 was approximately $0.28 million, compared to an operating income of
approximately $0.96 million for the
comparable period ended March 31,
2017. The decrease was due to the above-mentioned rise in
operating expenses relating to the ramp up of the Company's
business.
- Income tax expense for the three months ended March 31, 2018 was $0.22
million, compared to an income tax benefit of approximately
$0.30 million for the same period of
the prior year. Current income tax incurred from operations in
China and Hong Kong remained approximately the same
compared to the same period last year, while income tax benefit
decreased due to changes in in allowance for bad debts, net
operating loss carryover and the increase in the valuation
allowance against the deferred tax assets, based on the Company's
latest projected taxable income.
- As a result of the factors discussed above, for the three
months ended March 31, 2018, the
Company reported a net income of $0.24
million, compared to net income of $1.3 million for the three months ended
March 31, 2017.
Balance Sheet Information
- As of March 31, 2018, the Company
had $9.5 million in cash and cash
equivalents, working capital of $17.5
million and shareholder equity of $24.3 million; compared to $8.7 million, $13.7
million, and $19.5 million,
respectively, as of June 30,
2017.
- 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.
Terry Downs
Senior Associate
(212)-836-9615 / tdowns@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,
|
|
|
2018
|
|
|
2017
|
|
|
2018
|
|
|
2017
|
Net revenues - third
parties
|
|
$
|
4,699,170
|
|
|
$
|
1,984,834
|
|
|
$
|
14,179,256
|
|
|
$
|
4,591,381
|
Net revenues -
related party
|
|
|
501,000
|
|
|
|
762,777
|
|
|
|
1,621,406
|
|
|
|
2,229,180
|
Total
revenues
|
|
|
5,200,170
|
|
|
|
2,747,611
|
|
|
|
15,800,662
|
|
|
|
6,820,561
|
Cost of
revenues
|
|
|
(3,405,435)
|
|
|
|
(1,132,213)
|
|
|
|
(10,447,231)
|
|
|
|
(1,789,348)
|
Gross
profit
|
|
|
1,794,735
|
|
|
|
1,615,398
|
|
|
|
5,353,431
|
|
|
|
5,031,213
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General and
administrative expenses
|
|
|
(1,477,514)
|
|
|
|
(612,441)
|
|
|
|
(4,067,885)
|
|
|
|
(2,248,639)
|
Selling
expenses
|
|
|
(35,363)
|
|
|
|
(41,245)
|
|
|
|
(393,090)
|
|
|
|
(153,429)
|
Total operating
expenses
|
|
|
(1,512,877)
|
|
|
|
(653,686)
|
|
|
|
(4,460,975)
|
|
|
|
(2,402,068)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
|
281,858
|
|
|
|
961,712
|
|
|
|
892,456
|
|
|
|
2,629,145
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income
(expense)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial income
(expense), net
|
|
|
170,134
|
|
|
|
34,167
|
|
|
|
392,729
|
|
|
|
(57,737)
|
Total other income
(expense)
|
|
|
170,134
|
|
|
|
34,167
|
|
|
|
392,729
|
|
|
|
(57,737)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income before provision for income taxes
|
|
|
451,992
|
|
|
|
995,879
|
|
|
|
1,285,185
|
|
|
|
2,571,408
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax benefit
(expense)
|
|
|
(216,095)
|
|
|
|
303,196
|
|
|
|
58,597
|
|
|
|
158,184
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
235,897
|
|
|
|
1,299,075
|
|
|
|
1,343,782
|
|
|
|
2,729,592
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to non-controlling interest
|
|
|
150,943
|
|
|
|
4,021
|
|
|
|
343,936
|
|
|
|
(104,083)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to Sino-Global Shipping America, Ltd.
|
|
$
|
84,954
|
|
|
$
|
1,295,054
|
|
|
$
|
999,846
|
|
|
$
|
2,833,675
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive
income (loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
235,897
|
|
|
$
|
1,299,075
|
|
|
$
|
1,343,782
|
|
|
$
|
2,729,592
|
Foreign currency
translation income (loss)
|
|
|
164,446
|
|
|
|
4,871
|
|
|
|
309,763
|
|
|
|
(114,011)
|
Comprehensive
income
|
|
|
400,343
|
|
|
|
1,303,946
|
|
|
|
1,653,545
|
|
|
|
2,615,581
|
Less: Comprehensive
income (loss) attributable to non-controlling interest
|
|
|
30,785
|
|
|
|
(19,419)
|
|
|
|
92,150
|
|
|
|
4,702
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive
income attributable to Sino-Global Shipping America
Ltd.
|
|
$
|
369,558
|
|
|
$
|
1,323,365
|
|
|
$
|
1,561,395
|
|
|
$
|
2,610,879
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per
share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-Basic
|
|
$
|
0.01
|
|
|
$
|
0.14
|
|
|
$
|
0.10
|
|
|
$
|
0.33
|
-Diluted
|
|
$
|
0.01
|
|
|
$
|
0.14
|
|
|
$
|
0.10
|
|
|
$
|
0.33
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of common shares used in computation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-Basic
|
|
|
10,835,535
|
|
|
|
8,994,146
|
|
|
|
10,433,272
|
|
|
|
8,514,080
|
-Diluted
|
|
|
10,870,221
|
|
|
|
9,028,928
|
|
|
|
10,479,555
|
|
|
|
8,534,701
|
SINO-GLOBAL
SHIPPING AMERICA, LTD. AND AFFILIATES
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
March
31,
|
|
|
June
30,
|
|
2018
|
|
|
2017
|
|
(Unaudited)
|
|
|
|
Assets
|
|
|
|
|
Current
assets
|
|
|
|
|
Cash and cash
equivalents
|
$
|
9,549,942
|
|
|
$
|
8,733,742
|
Accounts receivable,
less allowance for doubtful accounts of $1,350,531 and $185,821
as of March 31, 2018 and June
30, 2017, respectively
|
|
4,757,547
|
|
|
|
2,569,141
|
Other receivables,
less allowance for doubtful accounts of $145,244 and $145,244 as
of
March 31, 2018 and June 30, 2017,
respectively
|
|
167,018
|
|
|
|
37,811
|
Advances to
suppliers-third parties
|
|
442,137
|
|
|
|
54,890
|
Advances to
suppliers-related party
|
|
3,601,421
|
|
|
|
3,333,038
|
Prepaid expenses and
other current assets
|
|
397,368
|
|
|
|
311,136
|
Due from related
parties, net
|
|
2,249,544
|
|
|
|
1,715,130
|
|
|
|
|
|
|
|
Total Current
Assets
|
|
21,164,977
|
|
|
|
16,754,888
|
|
|
|
|
|
|
|
Property and
equipment, net
|
|
536,282
|
|
|
|
187,373
|
Intangible assets,
net
|
|
168,889
|
|
|
|
-
|
Prepaid
expenses
|
|
-
|
|
|
|
6,882
|
Other long-term
assets
|
|
137,850
|
|
|
|
117,478
|
Deferred tax
assets
|
|
1,670,100
|
|
|
|
749,400
|
|
|
|
|
|
|
|
Total
Assets
|
$
|
23,678,098
|
|
|
$
|
17,816,021
|
|
|
|
|
|
|
|
Liabilities and
Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
Liabilities
|
|
|
|
|
|
|
Advances from
customers
|
$
|
373,172
|
|
|
$
|
369,717
|
Accounts
payable
|
|
472,085
|
|
|
|
206,211
|
Taxes
payable
|
|
2,401,934
|
|
|
|
1,886,216
|
Due to related
parties
|
|
-
|
|
|
|
206,323
|
Accrued expenses and
other current liabilities
|
|
423,877
|
|
|
|
418,029
|
|
|
|
|
|
|
|
Total Current
Liabilities
|
|
3,671,068
|
|
|
|
3,086,496
|
|
|
|
|
|
|
|
Income tax payable -
noncurrent portion
|
|
440,219
|
|
|
|
-
|
|
|
|
|
|
|
|
Total
Liabilities
|
|
4,111,287
|
|
|
|
3,086,496
|
|
|
|
|
|
|
|
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; 12,611,032 and
10,281,032 shares issued as of March 31,
2018 and June 30, 2017, respectively;
12,435,535 and 10,105,535 outstanding as
of March 31, 2018 and June 30, 2017,
respectively
|
|
22,046,330
|
|
|
|
20,535,379
|
Additional paid-in
capital
|
|
2,386,864
|
|
|
|
688,934
|
Treasury stock, at
cost, 175,497 shares as of March 31, 2018 and June 30,
2017
|
|
(417,538)
|
|
|
|
(417,538)
|
Retained earnings
(accumulated deficit)
|
|
105,939
|
|
|
|
(893,907)
|
Accumulated other
comprehensive income (loss)
|
|
153,775
|
|
|
|
(414,564)
|
|
|
|
|
|
|
|
Total Sino-Global
Shipping America Ltd. Stockholders' Equity
|
|
24,275,370
|
|
|
|
19,498,304
|
|
|
|
|
|
|
|
Non-controlling
Interest
|
|
(4,708,559)
|
|
|
|
(4,768,779)
|
|
|
|
|
|
|
|
Total
Equity
|
|
19,566,811
|
|
|
|
14,729,525
|
|
|
|
|
|
|
|
Total Liabilities
and Equity
|
$
|
23,678,098
|
|
|
$
|
17,816,021
|
SINO-GLOBAL
SHIPPING AMERICA LTD. AND AFFILIATES
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
|
|
|
For the Nine
Months Ended
March 31,
|
|
|
2018
|
|
|
2017
|
Operating
Activities
|
|
|
|
|
|
Net income
|
|
$
|
1,343,782
|
|
|
$
|
2,729,592
|
Adjustment to
reconcile net income to net cash provided by (used in) operating
activities:
|
|
|
|
|
|
|
|
Amortization of stock
options
|
|
|
9,665
|
|
|
|
77,320
|
Amortization of stock
- based compensation to consultants
|
|
|
432,125
|
|
|
|
547,138
|
Amortization of stock
- based compensation to employees
|
|
|
182,000
|
|
|
|
-
|
Depreciation and
amortization
|
|
|
63,402
|
|
|
|
36,432
|
Provision for
(recovery of) doubtful accounts - accounts receivable
|
|
|
1,164,710
|
|
|
|
(107,608)
|
Provision for
doubtful accounts - due from related parties
|
|
|
243,433
|
|
|
|
-
|
Deferred tax
benefit
|
|
|
(920,700)
|
|
|
|
(387,900)
|
Changes in assets and
liabilities
|
|
|
|
|
|
|
|
Accounts
receivable
|
|
|
(3,246,911)
|
|
|
|
517,463
|
Other
receivables
|
|
|
(80,145)
|
|
|
|
184,753
|
Advances to suppliers
- third parties
|
|
|
50,465
|
|
|
|
816,715
|
Prepaid expense and
other current assets
|
|
|
(84,147)
|
|
|
|
65,279
|
Due from related
parties
|
|
|
(784,363)
|
|
|
|
(2,843,131)
|
Other long-term
assets
|
|
|
-
|
|
|
|
(14,185)
|
Advances from
customers
|
|
|
(23,218)
|
|
|
|
324,476
|
Accounts
payable
|
|
|
243,380
|
|
|
|
312,883
|
Taxes
payable
|
|
|
798,012
|
|
|
|
201,259
|
Due to related
parties
|
|
|
(206,323)
|
|
|
|
156,841
|
Accrued expenses and
other current liabilities
|
|
|
889
|
|
|
|
514,445
|
|
|
|
|
|
|
|
|
Net cash provided
by (used in) operating activities
|
|
|
(813,944)
|
|
|
|
3,131,772
|
|
|
|
|
|
|
|
|
Investing
Activities
|
|
|
|
|
|
|
|
Acquisition of
property and equipment
|
|
|
(379,917)
|
|
|
|
(55,474)
|
Acquisition of
intangible assets
|
|
|
(190,000)
|
|
|
|
-
|
Prepayment
for intangible assets
|
|
|
(437,357)
|
|
|
|
-
|
|
|
|
|
|
|
|
|
Net cash used in
investing activities
|
|
|
(1,007,274)
|
|
|
|
(55,474)
|
|
|
|
|
|
|
|
|
Financing
Activities
|
|
|
|
|
|
|
|
Proceeds from
issuance of common stock, net
|
|
|
2,585,091
|
|
|
|
4,319,988
|
Proceeds from
exercise of stock options
|
|
|
-
|
|
|
|
82,500
|
|
|
|
|
|
|
|
|
Net cash provided
by financing activities
|
|
|
2,585,091
|
|
|
|
4,402,488
|
|
|
|
|
|
|
|
|
Effect of exchange
rate fluctuations on cash and cash equivalents
|
|
|
52,327
|
|
|
|
(24,591)
|
|
|
|
|
|
|
|
|
Net
increase in cash and cash equivalents
|
|
|
816,200
|
|
|
|
7,454,195
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents at beginning of period
|
|
|
8,733,742
|
|
|
|
1,385,994
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents at end of period
|
|
$
|
9,549,942
|
|
|
$
|
8,840,189
|
|
|
|
|
|
|
|
|
Supplemental
information
|
|
|
|
|
|
|
|
Income taxes
paid
|
|
$
|
60,162
|
|
|
$
|
89,324
|
View original
content:http://www.prnewswire.com/news-releases/sino-global-announces-fiscal-year-2018-third-quarter-financial-results-300647550.html
SOURCE Sino-Global Shipping America, Ltd.