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
|
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.