Sino-Global Announces Fiscal 2019 Third Quarter Financial Results Highlighted by a 337.9% Increase to $22.8 Million in Total Revenues

ROSLYN, New York, May 15, 2019 /PRNewswire/ -- Sino-Global Shipping America, Ltd. SINO ("Sino-Global", the "Company", "our", "we" or "us"), a logistics integrated solutions provider engaged in non-asset based global shipping, freight logistics, and inland transportation management and related services, today announced its financial and operating results for the third quarter and nine months ended March 31, 2019.

The Company has also provided an update on its quarterly report on Form 10-Q filed with the U.S. Securities and Exchange Commission the same day. Management encourages investors to review this filing for more details of the Company's financial results for the period.

Fiscal Year 2019 Third Quarter Financial Review

  • Total revenues increased by 337.9% to approximately $22.8 million for the three month period ended March 31, 2019, compared to approximately $5.2 million in the three month period ended March 31, 2018. The increase was mainly due to continuing efforts to diversify its business, resulting in the rise in revenues generated from its freight logistics services segment.  Freight logistics services consist primarily of cargo forwarding, brokerage and other freight services in China.
  • The Company's gross profit for the three month period ended March 31, 2019 was approximately $1.7 million, compared to approximately $1.8 million for the same period in the prior year. Gross margin during the period was approximately 7.5% compared to approximately 34.5% for the same period last year. 
  • Sino-Global's selling, general and administrative expenses (SG&A expenses) were approximately $2.8 million for the three month period ended March 31, 2019, compared to approximately $1.2 million in the same period of the prior year. As a percentage of revenue, SG&A expenses decreased to approximately 12.2% from approximately 23.7% in the prior year period, largely due to greater efficiency on higher revenues. 
  • The Company's provision for doubtful accounts was $1,583,965 for the three months ended March 31, 2019, compared with a provision for doubtful accounts of $570,712 for the same period in 2018. The increase was due to slower collections from customers with significant increased credit sales. As the Company continues its business relationship with several large customers, it continues to monitor the collection closely with respect to trade accounts receivable.
  • For the three months ended March 31, 2019, the Company reported a net loss attributable to the Company of approximately $1.4 million, or $(0.09) per diluted share based on weighted average diluted shares outstanding of 15,295,703, compared to a net income attributable to the Company of approximately $0.1 million, or $0.01 per diluted share based on weighted average diluted shares outstanding of 10,870,221, for the same period in the prior year.

The following tables present summary information by segments for the three months ended March 31, 2019 and 2018:



For the Three Months Ended March 31, 2019





Shipping

Agency

Services





Inland

Transportation

Management

Services





Freight

Logistics

Services





Container

Trucking

Services





Total



Revenues





























- Related party

$

-





$

36,380





$

-





$

-





$

36,380



- Third parties

$

956,583





$

93,407





$

21,599,675





$

87,094





$

22,736,759



Total revenues

$

956,583





$

129,787





$

21,599,675





$

87,094





$

22,773,139



Cost of revenues

$

862,970





$

48,750





$

20,098,417





$

65,058





$

21,075,195



Gross profit

$

93,613





$

81,037





$

1,501,258





$

22,036





$

1,697,944



Depreciation and amortization

$

-





$

39,109





$

476





$

4,448





$

44,033



Total capital expenditures

$

-





$

-





$

125,806





$

8,317





$

134,123



Gross margin%



9.8

%





62.4

%





7.0

%





25.3

%





7.5

%

 



For the Three Months Ended March 31, 2018





Shipping

Agency Services





Inland

Transportation

Management Services





Freight

Logistics

Services





Container

Trucking Services





Total



Revenues





























- Related party

$

-





$

501,000





$

-





$

-





$

501,000



- Third parties

$

-





$

934,872





$

3,577,293





$

187,005





$

4,699,170



Total revenues

$

-





$

1,435,872





$

3,577,293





$

187,005





$

5,200,170



Cost of revenues

$

-





$

91,276





$

3,195,492





$

118,667





$

3,405,435



Gross profit

$

-





$

1,344,596





$

381,801





$

68,338





$

1,794,735



Depreciation and amortization

$

-





$

26,268





$

475





$

4,917





$

31,660



Total capital expenditures

$

-





$

-





$

-





$

10,929





$

10,929



Gross margin%



-







93.6

%





10.7

%





36.5

%





34.5

%

Balance Sheet Information

  • As of March 31, 2019, the Company had approximately $3.5 million in cash, working capital of approximately $11.3 million and stockholders' equity of approximately $22.3 million.
  • The Company had no long-term debt as of March 31, 2019.

About Sino-Global Shipping America, Ltd.

Founded in the United States in 2001, Sino-Global Shipping America, Ltd. is a company engaged originally 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 shipping agency, 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

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)

(UNAUDITED)





For the Three Months Ended



For the Nine Months Ended



March 31,



March 31,



2019



2018



2019



2018

















Net revenues - third parties

$

22,736,759



$

4,699,170



$

39,354,579



$

14,179,256

Net revenues - related party



36,380





501,000





433,380





1,621,406

Total revenues



22,773,139





5,200,170





39,787,959





15,800,662

Cost of revenues



(21,075,195)





(3,405,435)





(34,715,624)





(10,447,231)

Gross profit



1,697,944





1,794,735





5,072,335





5,353,431

























Selling expenses



(140,601)





(35,363)





(507,199)





(393,090)

General and administrative expenses



(2,637,868)





(1,196,806)





(6,314,447)





(3,444,095)

Stock-based compensation



(148,708)





(280,708)





(2,013,292)





(623,790)

Total operating expenses



(2,927,177)





(1,512,877)





(8,834,938)





(4,460,975)

























Operating income (loss)



(1,229,233)





281,858





(3,762,603)





892,456

























Financial income, net



2,499





170,134





3,993





392,729

























Net income (loss) before provision for income taxes



(1,226,734)





451,992





(3,758,610)





1,285,185

























Income tax benefit (expense)



(248,820)





(216,095)





(427,333)





58,597

























Net income (loss)



(1,475,554)





235,897





(4,185,943)





1,343,782

























Net income (loss) attributable to non-controlling interest



(86,764)





150,943





(6,419)





343,936

























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

$

(1,388,790)



$

84,954



$

(4,179,524)



$

999,846

























Comprehensive income (loss)























Net income (loss)

$

(1,475,554)



$

235,897



$

(4,185,943)



$

1,343,782

Other comprehensive income (loss) - foreign currency



262,467





164,446





(306,457)





309,763

Comprehensive income (loss)



(1,213,087)





400,343





(4,492,400)





1,653,545

Less: Comprehensive income (loss) attributable to non-controlling interest



(96,210)





30,785





37,445





92,150

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

$

(1,116,877)



$

369,558



$

(4,529,845)



$

1,561,395

























Earnings (loss) per share























Basic

$

(0.09)



$

0.01



$

(0.30)



$

0.10

Diluted

$

(0.09)



$

0.01



$

(0.30)



$

0.10

























Weighted average number of common shares used in computation























Basic



15,245,703





10,835,535





14,045,018





10,433,272

Diluted



15,245,703





10,870,221





14,045,018





10,479,555

 

 

 

SINO-GLOBAL SHIPPING AMERICA, LTD. AND AFFILIATES

CONDENSED CONSOLIDATED BALANCE SHEETS

(UNAUDITED)





March 31,





June 30,



2019





2018











Assets









Current assets









Cash

$

3,523,907





$

7,098,259

Note receivable



745,001







-

Accounts receivable, less allowance for doubtful accounts of $4,710,897 and $1,682,228 as of March 31, 2019 and June 30, 2018, respectively



14,067,687







8,428,853

Other receivables, less allowance for doubtful accounts of $145,198 and $145,176 as of March 31, 2019 and June 30, 2018, respectively



79,481







69,239

Advances to suppliers-third parties



1,145,620







704,878

Advances to suppliers-related party



-







3,414,619

Prepaid expense and other current assets



103,172







588,439

Due from related party, net



885,456







2,087,994

Total Current Assets



20,550,324







22,392,281















Property and equipment, net



1,032,695







956,429

Intangible assets, net



105,556







153,056

Prepaid expenses



1,114,542







1,878,258

Other long-term assets - deposits



3,123,268







143,303

Deferred tax assets, net



847,668







634,500

Total Assets

$

26,774,053





$

26,157,827















Liabilities and Equity



























Current Liabilities













Advances from customers

$

69,369





$

415,385

Accounts payable



4,688,560







3,225,661

Taxes payable



3,611,161







2,700,619

Accrued expenses and other current liabilities



848,797







280,888

Total current liabilities



9,217,887







6,622,553















Total liabilities



9,217,887







6,622,553















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; 15,471,200 and 13,271,032 shares issued as of March 31, 2019 and June 30, 2018, respectively; 15,295,703 and 13,095,535 outstanding as of March 31, 2019 and June 30, 2018, respectively



25,855,330







23,717,330

Additional paid-in capital



2,130,865







1,755,573

Treasury stock, at cost, 175,497 shares  as of  March 31, 2019 and June 30, 2018



(417,538)







(417,538)

Accumulated deficit



(4,614,380)







(434,856)

Accumulated other comprehensive loss



(622,728)







(272,407)

Total Sino-Global Shipping America Ltd. Stockholders' Equity



22,331,549







24,348,102















Non-controlling Interest



(4,775,383)







(4,812,828)















Total Equity



17,556,166







19,535,274















Total Liabilities and Equity

$

26,774,053





$

26,157,827

 

 

SINO-GLOBAL SHIPPING AMERICA, LTD. AND AFFILIATES

 CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

 (UNAUDITED) 





Preferred Stock



Common Stock



Additional

paid-in



Treasury Stock



  Accumulated

income



Accumulated other

comprehensive



Noncontrolling







Shares



Amount



Shares



Amount



capital



Shares



Amount



(deficit)



income (loss)



interest



Total

BALANCE, June 30, 2017

-



$

-



10,281,032



$

20,535,379



$

688,934



(175,497)



$

(417,538)



$

(893,907)



$

(414,564)



$

(4,768,779)



$

14,729,525

Stock-based compensation to management

-





-



-





-





9,665



-





-





-





-





-





9,665

Amortization of shares issued to consultants

-





-



-





-





52,709



-





-





-





-





-





52,709

Foreign currency translation

-





-



-





-





-



-





-





-





106,419





(59,653)





46,766

 Net income

-





-



-





-





-



-





-





617,189





-





100,400





717,589

BALANCE, September 30, 2017

-





-



10,281,032



$

20,535,379





751,308



(175,497)





(417,538)



$

(276,718)



$

(308,145)





(4,728,032)





15,556,254

Amortization of shares issued to consultants

-





-



-





-





280,708



-





-





-





-





-





280,708

Foreign currency translation

-





-



-





-





-



-





-





-





173,508





142,422





315,930

Net income (loss)

-





-



-





-





-



-





-





297,703





-





(153,733)





143,970

BALANCE, December 31, 2017

-





-



10,281,032



$

20,535,379





1,032,016



(175,497)





(417,538)



$

20,985



$

(134,637)





(4,739,343)





16,296,862

Stock based compensation to employee

-





-



130,000





364,000





(364,000)



-





-





-





-





-





-

Stock based compensation to consultants

-





-



200,000





548,000





(548,000)



-





-





-





-





-





-

Issuance of common stock to private investor

-





-



2,000,000





1,510,951





1,074,140



-





-





-





-





-





2,585,091

Amortization of shares to management and employees

-





-



-





-





182,000



-





-





-





-





-





182,000

Amortization of shares issued to consultants

-





-



-





-





98,708



-





-





-





-





-





98,708

Foreign currency translation

-





-



-





-





-



-





-





-





288,412





(341,346)





(52,934)

Net income

-





-



-





-





-



-





-





84,954





-





372,130





457,084

BALANCE, March 31, 2018

-



$

-



12,611,032



$

22,958,330



$

1,474,864



(175,497)



$

(417,538)



$

105,939



$

153,775



$

(4,708,559)



$

19,566,811































































































































































































































































































Preferred Stock



Common Stock



Additional

paid-in



Treasury Stock



 Accumulated



Accumulated other

comprehensive



Noncontrolling







Shares



Amount



Shares



Amount



capital



Shares



Amount



deficit



income (loss)



interest



Total

BALANCE, June 30, 2018

-



$

-



13,271,032



$

23,717,330



$

1,755,573



(175,497)



$

(417,538)



$

(434,856)



$

(272,407)



$

(4,812,828)



$

19,535,274

Stock based compensation to employee

-





-



430,000





473,000





-



-





-





-





-





-





473,000

Stock based compensation to consultants

-





-



50,000





63,500





-



-





-





-





-





-





63,500

Amortization of shares to management and employees

-





-



-





-





91,000



-





-





-





-





-





91,000

Amortization of shares issued to consultants

-





-



-





-





189,708



-





-





-





-





-





189,708

Foreign currency translation

-





-



-





-





-



-





-





-





(539,656)





77,494





(462,162)

Net income (loss)

-





-



-





-





-



-





-





(1,316,762)





-





29,231





(1,287,531)

BALANCE, September 30, 2018

-





-



13,751,032





24,253,830





2,036,281



(175,497)





(417,538)





(1,751,618)





(812,063)





(4,706,103)





18,602,789

Stock based compensation to employee

-





-



1,150,000





909,500





-



-





-





-





-





-





909,500

 Stock based compensation to consultants

-





-



100,000





128,500





(43,333)



-





-





-





-





-





85,167

Issuance of common stock to private investor

-





-



420,168





500,000





-



-





-





-





-





-





500,000

Amortization of shares issued to consultants

-





-



-





-





52,709



-





-





-





-





-





52,709

Foreign currency translation

-





-



-





-





-



-





-





-





(82,578)





(24,184)





(106,762)

 Net income (loss)

-





-



-





-





-



-





-





(1,473,972)





-





51,114





(1,422,858)

BALANCE, December 31, 2018

-





-



15,421,200





25,791,830





2,045,657



(175,497)





(417,538)





(3,225,590)





(894,641)





(4,679,173)





18,620,545

Stock based compensation to consultants

-





-



50,000





63,500





32,500



-





-





-





-





-





96,000

Amortization of shares issued to consultants

-





-



-





-





52,708



-





-





-





-





-





52,708

 Foreign currency translation

-





-



-





-





-



-





-





-





271,913





(9,446)





262,467

 Net loss

-





-



-





-





-



-





-





(1,388,790)





-





(86,764)





(1,475,554)

BALANCE, March 31, 2019

-



$

-



15,471,200



$

25,855,330



$

2,130,865



(175,497)



$

(417,538)



$

(4,614,380)



$

(622,728)



$

(4,775,383)



$

17,556,166

 

 

 

SINO-GLOBAL SHIPPING AMERICA, LTD. AND AFFILIATES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

 (UNAUDITED)





For the Nine Months Ended



March 31,



2019



2018









Operating Activities







Net income (loss)

$

(4,185,943)



$

1,343,782

Adjustments to reconcile net income (loss) to net cash used in operating activities:











Stock-based compensation



2,013,292





623,790

Depreciation and amortization



95,313





63,402

Provision for doubtful accounts



2,871,752





1,408,143

Deferred tax benefit



(208,047)





(920,700)

Changes in assets and liabilities











Notes receivable



(732,826)





-

Accounts receivable



(8,341,650)





(3,246,911)

Other receivables



36,014





(80,145)

Advances to suppliers-third parties



(410,886)





50,465

Advances to suppliers-related party



3,312,375





-

Prepaid expenses and other current assets



821,662





(84,147)

Other long-term assets - deposits



(2,502,946)





-

Due from related parties



1,552,918





(784,363)

Advances from customers



(353,696)





(23,218)

Accounts payable



1,336,453





243,380

Taxes payable



837,641





798,012

Due to related parties



-





(206,323)

Accrued expenses and other current liabilities



535,921





889

Net cash used in operating activities



(3,322,653)





(813,944)













Investing Activities











Acquisition of property and equipment



(143,480)





(379,917)

Acquisition of intangible assets



-





(190,000)

Prepayment for intangible assets



-





(437,357)

Net cash used in investing activities



(143,480)





(1,007,274)













Financing Activities











Proceeds from issuance of common stock



500,000





2,585,091

Net cash provided financing activities



500,000





2,585,091













Effect of exchange rate fluctuations on cash



(608,219)





52,327













Net increase (decrease) in cash



(3,574,352)





816,200













Cash at beginning of period



7,098,259





8,733,742













Cash at end of period

$

3,523,907



$

9,549,942













Supplemental information











Income taxes paid

$

144,018



$

60,162

Cision View original content:http://www.prnewswire.com/news-releases/sino-global-announces-fiscal-2019-third-quarter-financial-results-highlighted-by-a-337-9-increase-to-22-8-million-in-total-revenues-300851054.html

SOURCE Sino-Global Shipping America, Ltd.

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