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 | Inland Transportation | Freight | Container | 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 | Inland Transportation | Freight | Container | 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 | |||||||||||||||||||||||||||||
Preferred Stock | Common Stock | Additional | Treasury Stock | Accumulated | Accumulated other | 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 | Treasury Stock | Accumulated | Accumulated other | 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 | ||
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SOURCE Sino-Global Shipping America, Ltd.
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