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Sterling Consolidated Announces 6-Month Earnings Growth With Its Second Quarter 2014 Results

NEPTUNE, N.J., Oct. 20, 2014 (GLOBE NEWSWIRE) -- Sterling Consolidated Corp. (OTCBB:STCC), a leading supplier of hydraulic and pneumatic seals to the automotive and industrial marketplace, is announcing 6-month earnings growth as disclosed in its June 30, 2014 10Q.

Key Highlights:

  • Completed acquisition of RG Sales Inc. in western Pennsylvania on April 1, 2014. This is the Company's second acquisition since going public in February 2013.
  • Revenues of $3.623 million are up $482K, or 15.4%, for the 6-months ended June 30, 2014 compared to the 6-months ended June 30, 2013.
  • Operating income of $249K is up $192K, or 335%, for the 6-months ended June 30, 2014 compared to the 6-months ended June 30, 2013.
  • Net income of $128K is up $125K, or 3,576%, for the 6-months ended June 30, 2014 compared to the 6-months ended June 30, 2013.

The revenue growth is primarily attributed to increase in incremental sales from the Company's recent acquisitions of RG Sales Inc. and Superior Sales Inc. in North Carolina.

The operating income and net income growth is largely attributed to incremental sales from acquisitions coupled with reduced cost of goods sold due to more efficient purchasing.

Darren DeRosa, Chief Executive Officer of Sterling Consolidated, commented, "The first six months of 2014 has shown increased demand for 0-rings and we are beginning to see the results from our acquisitions reflected in our revenues and earnings. After becoming a public company our goal was to consolidate the highly fragmented o-ring distributor market and we continue to actively seek out attractive acquisition targets in the marketplace to meet this goal."

To be added to the Sterling Consolidated investor email list, please email schichester@sterlingconsolidated.com with "STCC" in the subject line.

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.

Forward-looking Statements

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 (unaudited)
For the Three Months Ended For the Six Months Ended
June 30, June 30,
2014 2013 2014 2013
Revenues
O-rings and rubber product sales $ 1,839,616 $ 1,448,750 $ 3,552,450 $ 3,076,636
Freight services 44,895 42,039 71,210 64,253
Total revenues 1,884,511 $ 1,490,789 3,623,660 $ 3,140,889
Cost of sales
Cost of goods 1,197,065 1,014,482 2,275,045 2,114,304
Cost of services 53,054 36,419 109,380 96,902
Total cost of sales 1,250,119 1,050,901 2,384,425 2,211,206
Gross profit 634,392 439,888 1,239,235 929,683
Operating expenses
Sales and marketing 48,229 46,356 99,764 94,977
General and administrative 501,067 519,213 890,087 777,477
Total operating expenses 549,296 565,569 989,851 872,454
Operating income (loss) 85,096 (125,681) 249,384 57,229
Other income and expense
Other income (expense) 118 (11,625) 13,901 (9,277)
Interest expense (32,320) (32,854) (67,287) (62,234)
Total other expense (32,202) (44,479) (53,386) (71,511)
Income (loss) before provision for income taxes 52,894 (170,160) 195,998 (14,282)
Provision for income taxes 11,157 (62,709) 68,399 (17,753)
Net income (loss) 41,737 (107,451) 127,599 3,471
Other comprehensive income
Unrealized gain/(loss) on interest rate swap contract -- 4,622 -- (12,984)
Comprehensive income $ 41,737 $ (102,829) $ 127,599 $ (9,513)
Net income 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 39,618,062 37,097,521 38,811,631 37,074,040

CONTACT: Investor Contact: Scott R. Chichester 646-388-2495 schichester@sterlingconsolidated.comSource:Sterling Consolidated Corporation