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Sino-Global Announces 2017 Year End Financial Results

Highlighted by Progress in New Business Initiatives and Increase in Free Cash Flow

ROSLYN, N.Y., Sept. 27, 2017 /PRNewswire/ -- Sino-Global Shipping America, Ltd. (NASDAQ: SINO) ("Sino-Global", the "Company" or "us"), a non-asset based global shipping and freight logistic integrated solution provider, today announced its financial and operating results for the three months and year ended June 30, 2017.

Management Comments

Mr. Lei Cao, Chief Executive Officer of Sino-Global, stated, "The fiscal 2017 year was a transformational period for the Company. We continued our restructuring efforts and as a result revenues increased over 56% compared to the prior year. We increased our profit margins, and turned an operating loss into an operating profit."

Fiscal Year 2017 Operating Highlights

Mr. Cao continued, "In addition to our strong financial results, we successfully completed several key objectives during the fiscal year. A few of these achievements include:

  • The restructuring of our business and wind down of our shipping agency, ship management and shipping and chartering services;
  • Providing a viable solution to the increasing disconnect between traditional shipping services and inland logistics with the development and launch of our fully functional internet-based portal;
  • Partnering with a number of trucking operators in an effort to enhance both the functionality and awareness of our internet-based application; and
  • Entering into two joint project agreements that will further evolve our logistics strategy involving a shift from the current bulk cargo transportation model to a containerized model."

"We first noted our intentions to develop an internet-based logistics platform at the end of fiscal 2016 and since then, we have made significant progress with this platform. In the coming quarters, we expect to continue to leverage our infrastructure to grow and further establish our service network in the U.S., as well as create new business channels around the globe," concluded Mr. Cao.

Fiscal Year 2017 Fourth Quarter Financial Review

The following table presents summary information by segment for the three months ended June 30, 2017 and 2016:



For the three months ended June 30, 2017




Shipping
Agency and Ship
Management
Services



Shipping and
Chartering
Services



Inland
Transportation
Management
Services



Freight
Logistic
Services



Container
Trucking
Services



Total


Revenues

- Related party


$

-



$

-



$

517,243



$

-



$

-



$

517,243


- Third parties


$

-



$

-



$

770,179



$

3,011,809



$

325,821



$

4,107,809


Cost of revenues


$

-



$

-



$

348,475



$

2,641,413



$

201,355



$

3,191,243


Gross profit


$

-



$

-



$

938,947



$

370,396



$

124,466



$

1,433,809


Depreciation and amortization


$

-



$

-



$

7,535



$

5,400



$

-



$

12,935


Total capital expenditures


$

-



$

-



$

5,885



$

1,053



$

-



$

6,938




For the three months ended June 30, 2016




Shipping
Agency and Ship
Management
Services



Shipping and
Chartering
Services



Inland
Transportation
Management
Services



Total


Revenues


$




$




$




$



- Related party


$

-



$

-

-


$

352,836



$

352,836


- Third parties


$

725,643



$

-



$

762,123



$

1,487,766


Cost of revenues


$

747,120



$

-



$

422,524



$

1,169,644


Gross profit


$

(21,477)



$

-



$

692,435



$

670,958


Depreciation and amortization


$

19,872



$

(1,641)



$

(2,740)



$

15,491


Total capital expenditures


$

10,235



$

(12,506)



$

15,268



$

12,997


  • Total revenues increased by 151% to approximately $4.6 million for the three month period ended June 30, 2017. This increase was due to the Company's expansion efforts in the following sectors: inland transportation management, freight logistics and container trucking services.
  • The Company's gross profit for the period was $1.4 million, compared to $670,958 in the prior year period. Gross profit margin during the period decreased to 31% from 36.5%, which was attributed to a decrease in profit as percentage of total revenue.
  • Operating income for the three months ended June 30, 2017 was $472,037, compared to an operating income of $1,516 for the comparable year. This was primarily due to the increase in revenue from the Company's inland transportation management and the introduction of freight logistics services as well as container trucking services in 2017.
  • For the three months ended June 30, 2017, the Company reported a net income of $873,952, compared to a net income of $34,316 for the same period in prior year.

Fiscal Year 2017 Financial Review

The following table presents summary information by segment for the years ended June 30, 2017 and 2016:



For the year ended June 30, 2017




Shipping
Agency and Ship
Management
Services



Shipping and
Chartering
Services



Inland
Transportation
Management
Services



Freight
Logistic
Services



Container
Trucking
Services



Total


Revenues



















- Related party


$

-



$

-



$

2,746,423



$

-



$

-



$

2,746,423


- Third parties


$

-



$

-



$

3,012,177



$

4,815,450



$

871,563



$

8,699,190


Cost of revenues


$

-



$

-



$

620,259



$

3,710,364



$

649,968



$

4,980,591


Gross profit


$

-



$

-



$

5,138,341



$

1,105,086



$

221,595



$

6,465,022


Depreciation and amortization


$

-



$

-



$

27,857



$

21,510



$

-



$

49,367


Total capital expenditures


$

-



$

-



$

61,359



$

1,053



$

-



$

62,412




For the year ended June 30, 2016




Shipping
Agency and Ship
Management
Services



Shipping and
Chartering
Services



Inland
Transportation
Management
Services



Total


Revenues













- Related party


$

-



$

-



$

2,269,346



$

2,269,346


- Third parties


$

2,507,800



$

462,218



$

2,071,176



$

5,041,194


Cost of revenues


$

2,175,109



$

212,510



$

1,350,370



$

3,737,989


Gross profit


$

332,691



$

249,708



$

2,990,152



$

3,572,551


Depreciation and amortization


$

45,434



$

1,410



$

12,664



$

59,508


Total capital expenditures


$

13,537



$

2,854



$

15,268



$

31,659


  • Total revenues increased by approximately $4.1 million or 56.6% to $11.4 million during the year, compared to $7.3 million in the prior year. This increase was due to the Company's efforts to diversify its business resulting in an increase in revenues from the Company's inland transportation management, freight logistic and container trucking services.
  • The Company's gross profit for the year was $6.5 million, compared to $3.6 million in the prior year. Gross profit margin during the year increased to 56.5% from 48.9%, which was attributed to an increase in total revenue and increased revenue derived from inland transportation services with high gross profit margin.
  • Operating income for the year ended June 30, 2017 was $3.1 million, compared to an operating loss of $1.2 million in the prior year. This was primarily due to an increase in revenue from the Company's inland transportation management and the introduction of freight logistic services as well as container trucking services during the year, and a significant decrease in total operating expenses.
  • For the fiscal year ended June 30, 2017, the Company reported a net income of $3.6 million, compared to net loss of $2.3 million for the prior year.

Balance Sheet Information

  • As of June 30, 2017, the Company had $8.7 million in cash and cash equivalents, working capital of $13.7 million and shareholder equity of $19.5 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.

Expectations for Fiscal 2018

  • The Company plans to continue to streamline its business operations and improve operating efficiency through innovative technology, effective planning, budgeting, execution and cost control. The Company plans to develop new service lines along the shipping and freight logistics industry value chain, and leverage our relationships with COSCO, Zhiyuan Investment Group and other potential strategic business partners to expand our global business footprint.

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 / aprior@equityny.com

SINO-GLOBAL SHIPPING AMERICA, LTD. AND AFFILIATES

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)



For the Three Months
Ended June 30,



For the Years
Ended June 30,



2017



2016



2017



2016

Net revenues - third parties

$

4,107,809


$

1,487,766


$

8,699,190


$

5,041,194

Net revenues - related party


517,243



352,836



2,746,423



2,269,346

Total revenues

$

4,625,052


$

1,840,602


$

11,445,613


$

7,310,540

Cost of revenues


(3,191,243)



(1,169,644)



(4,980,591)



(3,737,989)

Gross profit


1,433,809



670,958



6,465,022



3,572,551













General and administrative expenses


(903,697)



(261,301)



(3,152,336)



(4,346,159)

Selling expenses


(58,075)



(408,141)



(211,504)



(475,619)

Total operating expenses


(961,772)



(669,442)



(3,363,840)



(4,821,778)













Operating income


472,037



1,516



3,101,182



(1,249,227)













Financial income, net


88,015



4,270



30,278



(247,530)

Other income, net


-



2,047



-



7,828

Total other income


88,015



6,317



30,278



(239,702)













Net income before provision for income taxes


560,052



7,833



3,131,460



(1,488,929)













Income tax benefit


313,900



26,483



472,084



(812,593)













Net income


873,952



34,316



3,603,544



(2,301,522)













Net income (loss) attributable to non-controlling interest


82,735



(52,905)



(21,348)



(335,593)













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

$

791,217


$

87,221


$

3,624,892


$

(1,965,929)













Comprehensive income (loss)












Net income

$

873,952


$

34,316


$

3,603,544


$

(2,301,522)

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


40,270



(88,097)



(73,741)



(134,155)

Comprehensive income (loss)


914,222



(53,781)



3,529,803



(2,435,677)

Less: Comprehensive income attributable to non-controlling interest


33,866



44,992



38,568



(97,409)













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

$

880,356


$

(98,773)


$

3,491,235


$

(2,338,268)













Earnings (loss) per share












-Basic

$

0.07


$

0.02


$

0.41


$

(0.23)

-Diluted

$

0.07


$

0.02


$

0.41


$

(0.23)













Weighted average number of common shares used in computation












-Basic


10,105,535



8,873,698



8,911,494



8,651,606

-Diluted


10,152,685



8,873,698



8,949,960



8,651,606

SINO-GLOBAL SHIPPING AMERICA, LTD. AND AFFILIATES

CONSOLIDATED BALANCE SHEETS




June 30,



June 30,




2017



2016


Assets









Current assets









Cash and cash equivalents


$

8,733,742



$

1,385,994


Accounts receivable, less allowance for doubtful accounts of $185,821 and $207,028 as of June 30, 2017 and 2016, respectively



2,569,141




2,333,024


Other receivables, less allowance for doubtful accounts of $145,244 and $145,186 as of June 30, 2017 and 2016, respectively



37,811




290,907


Advances to suppliers-third-party



54,890




2,192,910


Advances to suppliers-related party



3,333,038




-


Prepaid expenses and other current assets



311,136




826,631


Due from related parties



1,715,130




1,622,519











Total Current Assets



16,754,888




8,651,985











Property and equipment, net



187,373




176,367


Prepaid expenses



6,882




178,982


Other long-term assets



117,478




46,810


Deferred tax assets



749,400




-











Total Assets


$

17,816,021



$

9,054,144











Liabilities and Equity


















Current Liabilities









Advances from customers


$

369,717



$

24,373


Accounts payable



206,211




489,490


Taxes payable



1,886,216




1,637,197


Due to related parties



206,323




-


Accrued expenses and other current liabilities



418,029




286,322











Total Current Liabilities



3,086,496




2,437,382











Total Liabilities



3,086,496




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; 10,281,032 and 8,456,032 shares issued as of June 30, 2017 and 2016; 10,105,535 and 8,280,535 outstanding as of June 30, 2017 and 2016, respectively



20,535,379




15,500,391


Additional paid-in capital



688,934




1,140,962


Treasury stock, at cost, 175,497 shares as of June 30, 2017 and 2016



(417,538)




(417,538)


Accumulated deficit



(893,907)




(4,518,799)


Accumulated other comprehensive loss



(414,564)




(280,907)











Total Sino-Global Shipping America Ltd. Stockholders' Equity



19,498,304




11,424,109











Non-controlling Interest



(4,768,779)




(4,807,347)











Total Equity



14,729,525




6,616,762











Total Liabilities and Equity


$

17,816,021



$

9,054,144



SINO-GLOBAL SHIPPING AMERICA LTD. AND AFFILIATE

CONSOLIDATED STATEMENTS OF CASH FLOWS


For the years ended


June 30,


2017


2016

Operating Activities






Net income (loss)

$

3,603,544


$

(2,301,522)

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






Amortization of stock-based compensation to management


-



349,800

Amortization of stock-based compensation to consultants


599,846



1,327,780

Amortization of employee stock options


110,195



3,880

Depreciation and amortization


49,367



59,508

Provision for (recovery of) doubtful accounts


(18,912)



132,915

Deferred tax provision (benefit)


(749,400)



280,600

Changes in assets and liabilities






(Increase) decrease in accounts receivable


(260,165)



616,280

Decrease (increase) in other receivables


249,768



(98,935)

Decrease (increase) in advances to suppliers-third parties


2,085,281



(2,141,935)

Increase in advances to suppliers-related party


(3,317,382)



-

Decrease (increase) in prepaid expenses


162,727



(4,228)

Increase in other current assets


(18,931)



(30,600)

Increase in other long-term assets


(70,806)



-

(Increase) decrease in due from related parties


(117,772)



1,162,072

Increase (decrease) in advances from customers


343,790



(101,828)

Decrease in accounts payable


(272,474)



(202,098)

Increase in taxes payable


278,288



640,549

Increase in due to related parties


206,323



-

Increase in accrued expenses and other current liabilities


131,483



186,714







Net cash provided by (used in) operating activities


2,994,770



(121,048)







Investing Activities






Acquisition of property and equipment


(62,412)



(31,659)

Cash collected from the termination of vessel acquisition


-



326,035







Net cash provided by (used in) investing activities


(62,412)



294,376







Financing Activities






Proceeds from issuance of common stock, net


4,319,988



691,600

Proceeds from exercise of employee stock options for common stock


82,500



-

Repurchase of common stock


-



(45,011)







Net cash provided by financing activities


4,402,488



646,589







Effect of exchange rate fluctuations on cash and cash equivalents


12,902



(164,245)







Net increase in cash and cash equivalents


7,347,748



655,672







Cash and cash equivalents at beginning of year


1,385,994



730,322







Cash and cash equivalents at end of year

$

8,733,742


$

1,385,994







Supplemental information






Income taxes paid

$

89,324


$

23,286

Non-cash investing and financing activities:






Return of common stock issued for vessel acquisition

$

-


$

(2,220,000)

Issuance of common stock to pay for professional services

$

632,500


$

435,000

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SOURCE Sino-Global Shipping America, Ltd.

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