NEPTUNE, N.J., Nov. 25, 2013 (GLOBE NEWSWIRE) -- Sterling Consolidated Corp. (OTCBB:STCC), a leading supplier of hydraulic and pneumatic seals to the automotive and industrial marketplace, today reported its results for the third quarter ended September 30, 2013.
- Completed acquisition of Superior Seals and Service in High Point, NC;
- Revenues increased to $1.6 million, up 12.1% year over year;
- Operating income of $52,021, an increase of $41,037;
- Secured $2.45 million senior bank debt to provide access to working capital for future acquisitions and related costs
Revenues for the third quarter of 2013 were $1.6 million, up slightly compared to $1.4 million for the same period in 2012. Gross profit for the third quarter of 2013 was $0.39 million, a 40.0% increase from $0.28 million for the same period in 2012.
The Company's operating income for the third quarter of 2013 was $52,021 compared to operating income of $10,984 in the third quarter of 2012, an increase of $41,037. Net income for the period was $4,723, or $0.0001 per diluted share, compared to net income of $1,046, or $0.00003 per diluted share, in the comparable period in 2012. Net income was affected this quarter by costs associated with Superior Seals acquisition, bank financing and general costs attributed to being public.
Darren DeRosa, Chief Executive Officer of Sterling Consolidated, commented, "The third quarter was very successful as we increased revenues, controlled costs and secured financing for our future growth. After becoming a public company our goal was to consolidate the highly fragmented O-ring distributor market. We began to execute on this objective with the acquisition of Superior Seals and Service in the third quarter, which was completed earlier than expected. Our acquisition committee has ramped its efforts to expand our addressable targets, and there are a number of regionally strategic and well run companies along the East Coast that we are in advanced discussions with. We expect to close additional acquisitions over the coming quarters that will immediately add to our top and bottom line."
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About Sterling Consolidated Corp.
Sterling Consolidated Corp., through its wholly-owned subsidiary, Sterling Seal and Supply, has been a leading supplier of hydraulic and pneumatic seals to the automotive and industrial marketplace for more than 40 years. Through a combination of leveraging its logistical expertise and sophisticated, experienced management, the company intends to be an active and strategic consolidator of small- and mid-sized businesses within the highly-fragmented, multi-billion dollar seal industry. Currently serving more than 3,000 customers, Sterling offers acquisition targets a unique growth opportunity and competitive advantage through logistical expertise, strong regional branding and industry-specific distribution centers.
This release contains statements that constitute forward-looking statements. These statements appear in a number of places in this release and include all statements that are not statements of historical fact regarding the intent, belief or current expectations of the Company, its directors or its officers with respect to, among other things: (i) the Company's financing plans; (ii) trends affecting the Company's financial condition or results of operations; (iii) the Company's growth strategy and operating strategy; and (iv) the declaration and payment of dividends. The words "may," "would," "will," "expect," "estimate," "anticipate," "believe," "intend," and similar expressions and variations thereof are intended to identify forward-looking statements. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, many of which are beyond the Company's ability to control, and that actual results may differ materially from those projected in the forward-looking statements as a result of various factors.
|STERLING CONSOLIDATED CORP AND SUBSIDIARIES|
|CONSOLIDATED STATEMENTS OF OPERATIONS|
|For the Three Months Ended||For the Nine Months Ended|
|September 30,||September 30,|
|O-rings and rubber product sales||$ 1,546,716||$ 1,380,002||$ 4,623,352||$ 4,503,506|
|Total revenues||$ 1,603,376||$ 1,430,178||$ 4,767,335||$ 4,642,929|
|Cost of sales|
|Cost of goods||1,090,241||1,081,137||3,129,584||3,205,182|
|Cost of services||120,209||67,390||257,068||201,819|
|Total cost of sales||1,210,450||1,148,527||3,386,652||3,407,001|
|Sales and marketing||10,333||14,788||35,310||35,519|
|General and administrative||330,572||255,879||1,253,010||932,968|
|Total operating expenses||340,905||270,667||1,288,320||968,487|
|Other income and expense|
|Total other income and (expense)||(26,108)||(9,216)||(80,732)||(44,260)|
|Income before provision for income taxes||25,913||1,768||11,631||223,181|
|Provision for income taxes||21,190||722||3,437||91,169|
|Other comprehensive income/(loss)|
|Unrealized gain/(loss) on interest rate swap contract||2,908||--||(10,076)||(4,699)|
|Comprehensive income/(loss)||$ 7,631||$ 1,046||$ (1,882)||$ 127,313|
|Net income/(Loss) per share of common stock:|
|Basic and diluted||$ 0.00||$ 0.00||$ 0.00||$ 0.00|
|Weighted average number of shares outstanding|
|Basic and diluted||37,231,649||36,882,590||37,142,721||36,589,801|
|STERLING CONSOLIDATED CORP AND SUBSIDIARIES|
|CONSOLIDATED BALANCE SHEETS|
|September 30,||December 31,|
|Cash and cash equivalents||$ 77,226||$ 115,489|
|Account receivable, net of allowance||1,033,662||871,132|
|Inventory, net of reserve||2,372,061||2,307,413|
|Other current assets||1,100||--|
|Total current assets||3,527,325||3,334,710|
|Property and equipment, net||2,601,999||2,684,299|
|Intangible asset, net||970||--|
|Deferred tax asset||7,776||7,776|
|Total assets||$ 6,138,070||$ 6,026,785|
|LIABILITIES AND STOCKHOLDERS' EQUITY|
|Accounts payable and accrued expenses||$ 1,045,378||$ 1,139,681|
|Notes payable (current portion)||132,228||130,905|
|Notes payable related party (current portion)||50,083||62,151|
|Bank line of credit||894,591||839,591|
|Interest rate swap contract||11,800||1,724|
|Total current liabilities||2,342,934||2,251,023|
|Notes payable (related party)||1,654,145||1,614,952|
|Total other liabilities||2,462,531||2,515,713|
|Preferred stock, $0.001 par value; 10,000,000 shares authorized, no shares issued||--||--|
|Common stock, $0.001 par value; 200,000,000 shares authorized, 37,399,040 and 37,074,040 shares issued and outstanding as of September 30, 2013 and December 31, 2012, respectively.||37,399||37,074|
|Accumulated other comprehensive loss||(11,800)||(1,724)|
|Additional paid-in capital||1,249,192||1,175,079|
|Total stockholders' equity||1,332,605||1,260,049|
|Total liabilities and stockholders' equity||$ 6,138,070||$ 6,026,785|