Category: Shippers

Sino-Global Shipping America ( SINO )

Published: 13 February 2017
Written by Editor
Nasdaq   Financial Results   Up on News  

Sino-Global Announces Fiscal Year 2017 Second Quarter Financial Results

Highlights include a 33% Increase in Revenues and Earnings of $0.11 per Basic and Diluted Share
 
ROSLYN, N.Y., Feb. 13, 2017  -- 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 fiscal year 2017 second quarter ended December 31, 2016. 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 and Company management encourages investors to review this document for more details of the Company's financial results for the second quarter of fiscal year 2017, background on Sino-Global's business and history, as well as Company strategy for the coming fiscal year.
Fiscal Year 2017 Second Quarter Operating and Financial Highlights
(as compared to the same period of the prior year)
 
Total revenues increased 33.3% to $2.1 million, compared to $1.6 million.  The increase was primarily the result of a shift in our business mix, which included increases in revenues reported for the Company's inland transportation management services, freight logistic services and container trucking services. 
Gross profit margin for the period increased to 83.5% from 55.7%, largely due to the Company's shift in focus towards higher margin logistics services. 
Net income for the second quarter of fiscal year 2017 was $0.8 million, as compared to a net loss of $1.6 million for the same period of the prior year. 
Earnings per basic and diluted share increased 161.1%, to $0.11 per share.
At December 31, 2016, the Company had cash and cash equivalents of $3.3 million, accounts receivable of $1.8 million, working capital of $7.7 million and shareholder equity of $12.8 million; compared to $1.4 million, $2.3 million, $6.2 million, and $11.4 million, respectively, as of June 30, 2016.
The Company holds no long-term debt.
Management Commentary
Mr. Lei Cao, Chairman and Chief Executive Officer of Sino-Global commented, "We had a strong quarter with an increase in total revenue of 33%. This increase was primarily the result of a shift in our business services mix towards inland transportation management, freight logistics and container trucking services. The shift in services was first implemented last year in response to worsening market conditions in the shipping industry. As a result of this change in our business model, the Company is reporting higher profit margins and we believe the Company is now better equipped to address the needs of our evolving and expanding customer base."
 
Chairman Cao continued, "During the last quarter we continued our efforts to address industry challenges, and in December we completed the launch of our full-service logistics platform. Our new platform connects shippers with independent trucking organizations, and since launch the Company has entered into agreements with two major shipping conglomerates. These agreements not only strengthen our relationships with these businesses but, we anticipate, will lead to additional customers and strategic partnerships in the future."
 
"Sino-Global is confident that information and communication technologies can be adopted by traditional industries to meet contemporary supply and demand challenges, and in the months ahead we will continue the rollout of our inland transportation management, freight logistics and container trucking services; as well as foster strong relationships with our strategic partners and draw upon our technical abilities and in-depth industry knowledge to develop innovative value-added logistic solutions for our customers."
 
 

Fiscal Year 2017, Second Quarter Financial Review

The following table presents summary information by segment for the three months ended December 31, 2016 and 2015:

 

For the Three Months Ended December 31, 2016

  
 

Shipping 
Agency & 
Ship 
Management
Services

Shipping & 
Chartering
Services

Inland 
Transportation 
Management 
Services

Freight 
Logistic 
Services

Container 
Trucking 
Services

  

Total

  

Revenues

                          

- Related party

$

-

$

-

$

616,924

$

-

$

-

$

616,924

  

- Third party

$

  

$

  

$

834,679

$

517,066

$

159,879

$

1,511,624

  

Cost of revenues

$

-

$

-

$

87,800

$

167,035

$

95,961

$

350,796

  

Gross profit

$

-

$

-

$

1,363,803

$

350,031

$

63,918

$

1,777,752

  

Depreciation and amortization

$

-

$

-

$

6,695

$

5,370

$

-

$

12,065

  

Total capital expenditures

$

-

$

-

$

-

$

-

$

-

$

-

  

Gross profit margin

  

-

  

-

  

93.95%

  

67.70%

  

39.98%

  

83.52%

  
 

 

   

For the Three Months Ended December 31, 2015

  
   

Shipping Agency &
Ship Management 
 Services

    

Shipping & Chartering
Services

    

Inland Transportation
Management Services

    

Total

  

Revenues

                                

- Related party

  

$

-

    

$

-

    

$

605,965

    

$

605,965

  

- Third party

  

$

489,871

    

$

16,000

    

$

485,115

    

$

990,986

  

Cost of revenues

  

$

395,988

    

$

8,000

    

$

303,139

    

$

707,127

  

Gross profit

  

$

93,883

    

$

8,000

    

$

787,941

    

$

889,824

  

Depreciation and amortization

  

$

7,030

    

$

1,782

    

$

4,911

    

$

13,723

  

Total capital expenditures

  

$

2,375

    

$

-

    

$

-

    

$

2,375

  

Gross profit margin

    

19.16%

      

50.00%

      

72.22%

      

55.72%

  

 

  • Our total revenues were $2.1 million during the period, compared to $1.6 million in the prior year period. This increase was due to an increase in revenues generated from the Company's inland transportation management services, and in the first quarter of fiscal year 2017, the Company began recognizing revenues from freight logistics services and additional revenue was provided by container trucking services in the second quarter ended December 31, 2016.
  • The Company's gross profit during the period was $1.8 million, compared to $0.9 million in the prior year period. Gross profit margin during the period improved to 83.5%, compared to 55.7%, largely as a result of the favorable shift in our services mix.
  • Our operating income for the three months ended December 31, 2016 was approximately $1.0 million, compared to an operating loss of $1.1 million for the comparable period ended December 31, 2015. This increase was primarily attributable to an increase in revenue generated from the Company's inland transportation management services and freight logistics services and a decrease in our general and administrative expenses. 
  • Our income tax expense for the three months ended December 31, 2016 was $0.07 million, compared to income tax expense of $0.3 million for the same period of the prior year. The decrease in income tax expense over the prior year was due to a decrease of deferred income tax as the result of the change of our deferred tax valuation from 90% to 100% in December 31, 2015.  
  • For the three months ended December 31, 2016, the Company reported a net income of $0.8 million, compared to net loss of $1.6 million for the three months ended December 31, 2015.  

Balance Sheet Information

  • As of December 31, 2016, the Company had $3.3 million in cash and cash equivalents, working capital of $7.7 million and shareholder equity of $12.8 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 / This email address is being protected from spambots. You need JavaScript enabled to view it.

 

 

SINO-GLOBAL SHIPPING AMERICA, LTD. AND AFFILIATES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)

(UNAUDITED)

 
     

For the Three Months Ended 
December 31,

    

For the Six Months Ended 
December 31,
     

2016

    

2015

    

2016

    

2015

Net revenues - third parties

  

$

1,511,624

  

$

990,986

  

$

2,606,547

  

$

2,936,607

Net revenues - related party

    

616,924

    

605,965

    

1,466,403

    

1,359,562

Total revenues

    

2,128,548

    

1,596,951

    

4,072,950

    

4,296,169

Cost of revenues

    

(350,796)

    

(707,127)

    

(657,135)

    

(1,947,803)

Gross profit

    

1,777,752

    

889,824

    

3,415,815

    

2,348,366
                         

General and administrative expenses

    

(776,284)

    

(1,963,402)

    

(1,636,198)

    

(2,894,244)

Selling expenses

    

(46,875)

    

(29,502)

    

(112,184)

    

(44,125)

Total operating expenses

    

(823,159)

    

(1,992,904)

    

(1,748,382)

    

(2,938,369)
                         

Operating income (loss)

    

954,593

    

(1,103,080)

    

1,667,433

    

(590,003)
                         

Financial expense, net

    

(88,470)

    

(195,776)

    

(91,904)

    

(312,983)

Other expense, net

    

-

    

(4,621)

    

-

    

(4,621)

Total other expense

    

(88,470)

    

(200,397)

    

(91,904)

    

(317,604)
                         

Net income (loss) before provision for income taxes

    

866,123

    

(1,303,477)

    

1,575,529

    

(907,607)
                         

Income tax expense

    

(73,391)

    

(332,533)

    

(145,012)

    

(573,355)
                         

Net income (loss)

    

792,732

    

(1,636,010)

    

1,430,517

    

(1,480,962)
                         

Net loss attributable to non-controlling interest

    

(100,169)

    

(136,911)

    

(108,104)

    

(166,021)
                         

Net income (loss) attributable to Sino-Global Shipping America, Ltd.

  

$

892,901

  

$

(1,499,099)

  

$

1,538,621

  

$

(1,314,941)
                         
                         

Comprehensive income (loss)

                        

Net income (loss)

  

$

792,732

  

$

(1,636,010)

  

$

1,430,517

  

$

(1,480,962)

Other comprehensive income (loss) - foreign currency translation (loss) gain

  

(104,312)

    

82,318

    

(118,882)

    

(38,318)

Comprehensive income (loss)

    

688,420

    

(1,553,692)

    

1,311,635

    

(1,519,280)

Less: Comprehensive income (loss) attributable to non-controlling interest

    

21,512

    

57,663

    

24,121

    

(869)
                         

Comprehensive income (loss) attributable to Sino-Global Shipping America Ltd.

  

$

666,908

  

$

(1,611,355)

  

$

1,287,514

  

$

(1,518,411)
                         

Earnings (loss) per share

                        

         -Basic

  

$

0.11

  

$

(0.18)

  

$

0.19

  

$

(0.16)

         -Diluted

  

$

0.11

  

$

(0.18)

  

$

0.18

  

$

(0.16)
                         

Weighted average number of common shares used in computation

                        

         -Basic

    

8,280,535

    

8,433,341

    

8,280,535

    

8,377,634

         -Diluted

    

8,342,870

    

8,433,341

    

8,318,541

    

8,377,634

 

 

SINO-GLOBAL SHIPPING AMERICA, LTD. AND AFFILIATES

CONDENSED CONSOLIDATED BALANCE SHEETS

(UNAUDITED)
             
   

December 31,

  

June 30,
   

2016

  

2016

Assets

            

Current assets

            

Cash and cash equivalents

  

$

3,293,453

  

$

1,385,994

Accounts receivable, less allowance for doubtful accounts of $96,261 and $207,028 as of December 31, 2016 and June 30, 2016, respectively

    

1,788,489

    

2,333,024

Other receivables, less allowance for doubtful accounts of $145,125 and $145,186 as of December 31 and June 30, 2016, respectively

    

68,454

    

290,907

Advances to suppliers

    

3,477,386

    

2,192,910

Prepaid expenses and other current assets

    

334,535

    

826,631

Due from related parties

    

1,740,567

    

1,622,519
             

Total Current Assets

    

10,702,884

    

8,651,985
             

Property and equipment, net

    

146,386

    

176,367

Prepaid expenses

    

92,514

    

178,982

Other long-term assets

    

40,360

    

46,810
             

Total Assets

  

$

10,982,144

  

$

9,054,144
             

Liabilities and Equity

            
             

Current Liabilities

            

Advances from customers

  

$

383,631

  

$

24,373

Accounts payable

    

167,525

    

489,490

Taxes payable

    

1,741,175

    

1,637,197

Accrued expenses and other current liabilities

    

668,944

    

286,322
             

Total Current Liabilities

    

2,961,275

    

2,437,382
             

Total Liabilities

    

2,961,275

    

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; 8,456,032 shares issued as of December 31,2016 and June 30, 2016; 8,280,535 shares outstanding as of December 31,2016 and June 30,2016, respectively

    

15,500,391

    

15,500,391

Additional paid-in capital

    

1,233,434

    

1,140,962

Treasury stock, at cost - 175,497 shares as of December 31,2016 and June 30,2016

    

(417,538)

    

(417,538)

Accumulated deficit

    

(2,980,178)

    

(4,518,799)

Accumulated other comprehensive loss

    

(532,014)

    

(280,907)
             

Total Sino-Global Shipping America Ltd. Stockholders' Equity

    

12,804,095

    

11,424,109
             

Non-controlling Interest

    

(4,783,226)

    

(4,807,347)
             

Total Equity

    

8,020,869

    

6,616,762
             

Total Liabilities and Equity

  

$

10,982,144

  

$

9,054,144

 

 

SINO-GLOBAL SHIPPING AMERICA LTD. AND AFFILIATES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED) 
 
   

 For the six months ended December 31,
   

2016

    

2015

 Operating Activities

          

 Net income (loss)

$

1,430,517

  

$

(1,480,962)

 Adjustment to reconcile net income (loss) to net cash provided by (used in) operating activities:

          

    Stock-based compensation expense

  

92,472

    

-

    Amortization of stock-based compensation to consultants

  

655,310

    

548,917

    Depreciation and amortization

  

25,407

    

29,076

    Provision for (recovery of) doubtful accounts

  

(108,344)

    

622,556

    Provision for doubtful accounts on related party receivable

  

-

    

174,759

    Deferred tax provision

  

-

    

280,600

 Changes in assets and liabilities

          

    Decrease (increase) in accounts receivable

  

615,324

    

(269,756)

    Decrease (increase) in other receivables

  

219,860

    

(654,229)

    (Increase) decrease in advances to suppliers

  

(1,417,731)

    

49,101

    (Increase) decrease in prepaid expenses

  

(70,264)

    

58,728

    Increase in other current assets

  

(12,571)

    

(28,613)

    Decrease in other long-term assets

  

5,693

    

3,240

    (Increase) decrease in due from related parties

  

(133,713)

    

64,345

    Increase (decrease) in advances from customers

  

369,626

    

(100,370)

    Decrease in accounts payable

  

(309,941)

    

(396,698)

    Increase in taxes payable

  

174,432

    

413,510

    Increase (decrease) in accrued expenses and other current liabilities

  

386,381

    

(5,980)
           

 Net cash provided by (used in) operating activities

  

1,922,458

    

(691,776)
           

 Investing Activities

          

 Acquisitions of property and equipment

  

-

    

(3,302)

 Cash collected from the termination of vessel acquisition

  

-

    

332,413
           

 Net cash provided by investing activities

  

-

    

329,111
           

 Financing Activities

          

 Proceeds from issuance of common stock, net

  

-

    

691,600

 Repurchase of common stock

  

-

    

(41,270)
           

 Net cash provided by financing activities

  

-

    

650,330
           

 Effect of exchange rate fluctuations on cash and cash equivalents

  

(14,999)

    

76,589
           

 Net increase in cash and cash equivalents

  

1,907,459

    

364,254
           

 Cash and cash equivalents at beginning of period

  

1,385,994

    

730,322
         

-

 Cash and cash equivalents at end of period

$

3,293,453

  

$

1,094,576
           

 Supplemental information

          

 Income taxes paid

$

6,446

  

$

-

 Non-cash investing and financing activities:

          

 Common stock issued for vessel acquisition

$

-

  

$

2,220,000

 Issuance of common stock to pay for professional services

$

-

  

$

255,000