Sterling Consolidated Posted Record Sales and Robust EBITDA of $485K With Its December 31, 2014 10-K Filing

NEPTUNE, N.J., April 23, 2015 (GLOBE NEWSWIRE) -- Sterling Consolidated Corp. (OTCBB:STCC), a leading supplier of hydraulic and pneumatic seals to the automotive and industrial marketplace, announces annual revenues and earnings as disclosed in its December 31, 2014 10-K.

Key Highlights in 2014:

  • Revenues of $6.827 million are up $642K, or 10.4%, for the year ended December 31, 2014 compared to the year ended December 31, 2013.
  • EBITDA (Earnings before Interest, Taxes, Depreciation and Amortization) of $485K is up $407K, or 521% for the year ended December 31, 2014 compared to the year ended December 31, 2013.
  • Operating income of $306K is up $341K, or 974%, for the year ended December 31, 2014 compared to the year ended December 31, 2013.
  • Net income of $43K is up $151K, or 140%, for the year ended December 31, 2014 compared to the year ended December 31, 2013.
  • 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.
  • Invested and implemented NetSuite's cloud based, ERP and general ledger software to upgrade the Company's inventory management, accounting and sales management capabilities.

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

The operating income and net income growth is largely attributed to incremental sales from acquisitions coupled with a lesser increase in cost of goods sold due to more efficient purchasing and economies of scale with existing labor personnel.

Darren DeRosa, Chief Executive Officer of Sterling Consolidated, commented, "We are excited that we were able to grow the sales by more than 10% this year and produce a healthy EBITDA for our shareholders. The two acquisitions and our investment in ERP platform were major accomplishments for our firm. The software is so powerful that it will assimilate future acquisitions into our existing infrastructure seamlessly. We continue to seek out attractive acquisition targets in the marketplace to accelerate the growth of Sterling."

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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.

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.

For the Years Ended
December 31,
2014 2013
O-rings and rubber product sales $ 6,709,867 $ 6,045,446
Freight services 117,553 139,702
Total revenues 6,827,420 6,185,148
Cost of sales
Cost of goods 4,644,616 4,269,455
Cost of services 203,098 215,761
Total cost of sales 4,847,714 4,485,216
Gross profit 1,979,706 1,699,932
Operating expenses
Sales and marketing 208,209 212,661
General and administrative 1,465,228 1,522,162
Total operating expenses 1,673,437 1,734,823
Operating income (loss) 306,269 (34,891)
Other income and expense
Other income (expense) 22,806 (7,135)
Interest expense (152,173) (123,307)
Total other expense (129,367) (130,442)
Income (loss) before provision for income taxes 176,902 (165,333)
Provision for income taxes 133,722 (67,539)
Net income (loss) 43,180 (97,794)
Other comprehensive income
Unrealized gain/(loss) on interest rate swap contract -- (10,076)
Comprehensive income $ 43,180 $ (107,870)
Net income per share of common stock:
Basic and diluted $ 0.00 $ (0.00)
Weighted average number of shares outstanding
Basic and diluted 39,339,373 37,284,725

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