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Sterling Consolidated Announces 9-Month Earnings and Sales Growth With Its Third Quarter 2014 Results

NEPTUNE, N.J., Dec. 8, 2014 (GLOBE NEWSWIRE) -- Sterling Consolidated Corp. (OTCBB:STCC), a leading supplier of hydraulic and pneumatic seals to the automotive and industrial marketplace, is announcing 9-month sales and earnings growth as disclosed in its September 30, 2014 10Q.

Key Highlights:

  • Substantially completed implementation of its Enterprise Resource Planning software to prepare the company for expected growth.
  • Revenues of $5.266 million are up $538K, or 11.4%, for the 9-months ended September 30, 2014 compared to the 9-months ended September 30, 2013.
  • Operating income of $240K is up $148K, or 160%, for the 9-months ended September 30, 2014 compared to the 9-months ended September 30, 2013.
  • Net income of $116K is up $108K, or 1,350%, for the 9-months ended September 30, 2014 compared to the 9-months ended September 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.

"Sterling Consolidated has continued to successfully implement its growth program over the course of the year," said Darren DeRosa, Chief Executive Officer. "The increase in net income and the significant growth of sales revenue shows that our acquisition model is functioning well as we continue to absorb new locations. The growth of both operating profit and revenue is proof of our financial solidity and strength. Cost discipline remains our top priority as we grow further and faster with the goal of maintaining consistent profitability."

To be added to the Sterling Consolidated investor email list, please email schichester@sterlingconsolidated 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 2,300 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
September 30,
For the Nine Months Ended
September 30,
2014 2013 2014 2013
Revenues
O-rings and rubber product sales $ 1,622,191 $ 1,546,716 $ 5,174,641 $ 4,623,352
Freight services 20,264 40,676 91,474 104,929
Total revenues 1,642,455 $ 1,587,392 5,266,115 $ 4,728,281
Cost of sales
Cost of goods 1,059,247 1,090,241 3,334,292 3,129,584
Cost of services 67,435 89,209 176,815 165,031
Total cost of sales 1,126,682 1,179,450 3,511,107 3,294,615
Gross profit 515,773 407,942 1,755,008 1,433,666
Operating expenses
Sales and marketing 71,540 45,333 171,304 141,310
General and administrative 453,285 326,572 1,343,372 1,199,993
Total operating expenses 524,825 371,905 1,514,676 1,341,303
Operating income (loss) (9,052) 36,037 240,332 92,363
Other income and expense
Other income (expense) 21,334 19,253 35,235 10,879
Interest expense (32,214) (29,377) (99,501) (91,611)
Total other expense (10,880) (10,124) (64,266) (80,732)
Income (loss) before provision for income taxes (19,932) 25,913 176,066 11,631
Provision for income taxes (8,316) 21,190 60,083 3,437
Net income (loss) (11,616) 4,723 115,983 8,194
Other comprehensive income
Unrealized gain/(loss) on interest rate swap contract -- 2,908 -- (10,076)
Comprehensive income $ (11,616) $ 7,631 $ 115,983 $ (1,882)
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 40,336,570 37,231,649 39,344,780 37,142,721

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