Sino-Global Announces 2016 Year End Financial Results

Montag, 19.09.2016 22:55 von

PR Newswire

ROSLYN, N.Y., Sept. 19, 2016 /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 year ended June 30, 2016.  The Company has also provided extensive industry information on its Form 10-K filed this afternoon, and management encourages investors to review the document for both background on Sino-Global's business and history as well as strategy for the coming fiscal year.

Management Comments

Mr. Lei Cao, Chief Executive Officer of Sino-Global, stated, "Throughout the year, we continued to execute on a business strategy aimed toward expanding our revenue base and leveraging our considerable industry experience as a non-asset based logistics provider.   We continued to diversify from our legacy shipping agency operation in fiscal 2016, while streamlining our operations and improving our free cash flow.  In March, we announced the expansion of Sino-Global in the United States market through the formation of a new U.S. based subsidiary, located in L.A., and on May 3rd announced we had entered a memorandum of understanding from Yaxin International Co., Ltd., which represents our first customer agreement for the west coast operation.  We also recently announced the development of a mobile application that will provide a full-service logistics platform between the US and China to short-haul trucking in the US.  After speaking with several existing and potential customers, we believe that Sino-Global's experience in providing logistics service and solutions, coupled with our long term relationships with major shipping carriers, provide a competitive advantage to build a mobile-based platform.  We have a strong capital position, and are optimistic about the prospects for the Company."

Fiscal Year 2016 Operating Highlights

(all comparisons to the prior year)

  • Total revenues were $7.3 million, compared to $11.3 million, largely due to lower revenues from the Company's shipping agency services segment due to a general economic slow-down and rising labor costs in China and additional competition within the industry, with established and new competitors offering rates that in many cases are much lower than the Company was willing to offer.  As a result, the Company began to explore new avenues for potential revenue enhancement through the development of logistic solutions throughout the United States.
  • In January 2016, the Company formed a new subsidiary Sino-Global Shipping LA Inc. for the purpose of expanding its business into providing logistic services including cargo forwarding and truck transportation and customs filing services to customers. The Company expects this new business line will help expand its platform to generate increased revenue in the near future.

Expectations for Fiscal 2017

  • The Company's Board of Directors has authorized management to move forward with the development of a mobile application that will provide a full-service logistics platform between the US and China to short-haul trucking in the US.  Sino-Global is currently evaluating technology and business partners to move forward with the development of the mobile application, which the management hopes to launch in 2017. 

Fiscal Year 2016 Financial Review

The following table presents summary information by segment for the years ended June 30, 2016 and 2015:



For the Year Ended June 30, 2016


For the Year Ended June 30, 2015



Shipping








Shipping









Agency and




Inland




Agency and




Inland





Ship


Shipping and


Transportation




Ship


Shipping and


Transportation





Management


Chartering


Management




Management


Chartering


Management





Services


Services


Services


Consolidated


Services


Services


Services


Consolidated

Revenues


$

2,507,800


$

462,218


$

4,340,522


$

7,310,540


$

6,185,653


$

349,125


$

4,785,850


$

11,320,628

Cost of revenues


$

2,175,109



212,510


$

1,350,370


$

3,737,989


$

4,998,030



182,650


$

755,603


$

5,936,283

Gross profit


$

332,691



249,708


$

2,990,152


$

3,572,551


$

1,187,623



166,475


$

4,030,247


$

5,384,345

Gross margin



13.27%



54.02%



68.89%



48.87%



19.20%



47.68%



84.21%



47.56%

  • Gross margin for the year increased to 48.9% from 47.6%, largely due to a change in service mix from the Company's inland transportation business which provided higher margin.
  • Net loss for fiscal year 2016 was $2.3 million compared to net income of $643,922, largely as the result of a decrease in total revenue, expenses incurred from the launch of the Company's west coast subsidiary without corresponding revenues, and a rise in income tax expense.
  • Net increase in cash and cash equivalents during the year was $655,672, compared to a net decrease of $172,209 in the prior year.  The reason for the increase was primarily the collection of outstanding accounts receivables contributing to a decrease in net cash used in operating activities. 

Balance Sheet Information

  • As of June 30, 2016, the Company had $1,385,994 in cash and cash equivalents, working capital of $6.2 million and shareholder equity of $6.6 million; compared to $0.7 million, $6.2 million, and $9.9 million, respectively, as of June 30, 2015.
  • The Company holds no long-term debt.

Stock Repurchase Plan Update

On October 11, 2015, the Board of Directors of Sino-Global approved a stock repurchase program, in accordance with the retirement method, authorizing the repurchase of up to $100,000 of its common stock during the quarter ending December 31, 2015. Thereafter the Company may repurchase an aggregate value of shares per quarter equal to 10% to 15% of Sino-Global's quarterly net income for which the most recent quarterly or annual report has been filed. The plan is set to expire October 20, 2016.

In summary, the Company had repurchased a total of 50,306 common shares at an average stock price of $0.89 per share as of June 30, 2016.

About Sino-Global Shipping America, Ltd.

Sino-Global Shipping America, Ltd., a Virginia corporation, is a non-asset based global shipping and freight logistic integrated solution provider. Sino-Global provides tailored solutions and value added services to its shipping and freight customers to drive effectiveness and control in related links throughout entire logistic chain. Additional information about Sino-Global can be found on the Company's corporate website at www.sino-global.net. 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 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 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 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.

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 Years Ended June 30,




2016



2015









Net revenues


$

7,310,540



$

11,320,628











Cost of revenues



(3,737,989)




(5,936,283)


Gross profit



3,572,551




5,384,345











General and administrative expenses



(4,346,159)




(4,304,329)


Selling expenses



(475,619)




(63,219)


Total operating expenses



(4,821,778)




(4,367,548)











Operating income (loss)



(1,249,227)




1,016,797











Financial income (expense), net



(247,530)




14,200


Other income, net



7,828




40,146


Total other income (expense)



(239,702)




54,346











Net income (loss) before provision for income taxes



(1,488,929)




1,071,143











Income tax expense



(812,593)




(427,221)











Net income (loss)



(2,301,522)




643,922











Net loss attributable to non-controlling interest



(335,593)




(73,468)











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


$

(1,965,929)



$

717,390











Comprehensive income (loss)









Net income (loss)


$

(2,301,522)



$

643,922


Foreign currency translation (loss) gain



(134,155)




124,375


Comprehensive income (loss)



(2,435,677)




768,297


Less: Comprehensive loss attributable to non-controlling interest



(97,409)




(15,907)











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


$

(2,338,268)



$

784,204











Earnings (deficit) per share









-Basic and diluted


$

(0.23)



$

0.11











Weighted average number of common shares used in computation









-Basic and diluted



8,651,606




6,443,096


 

 

 

SINO-GLOBAL SHIPPING AMERICA, LTD. AND AFFILIATES

CONSOLIDATED BALANCE SHEETS




June 30,




2016



2015









Assets









Current assets









Cash and cash equivalents


$

1,385,994



$

730,322


Advances to suppliers



2,192,910




50,975


Accounts receivable, less allowance for doubtful accounts of $207,028 and $477,240 as of June 30, 2016 and 2015, respectively



2,333,024




3,082,219


Other receivables, less allowance for doubtful accounts of $145,186 and $241,604 as of June 30, 2016 and 2015, respectively



290,907




191,972


Prepaid expense and other current assets



826,631




1,265,609


Due from related parties



1,622,519




2,784,591











Total Current Assets



8,651,985




8,105,688











Property and equipment, net



176,367




214,003


Prepaid expenses



178,982




436,351


Other long-term assets



46,810




2,773,908


Deferred tax assets



-




280,600











Total Assets


$

9,054,144



$

11,810,550











Liabilities and Equity


















Current Liabilities









Advances from customers


$

24,373



$

126,201


Accounts payable



489,490




691,588


Taxes payable



1,637,197




996,648


Accrued expenses and other current liabilities



286,322




99,607











Total Current Liabilities



2,437,382




1,914,044











Total Liabilities



2,437,382




1,914,044











Commitments and Contingency


















Equity









Preferred stock, 2,000,000 shares authorized, no par value, none issued.



-




-


Common stock, 50,000,000 shares authorized, no par value; 8,456,032 and 7,996,032 shares issued as of June 30, 2016 and 2015; 8,280,535 and 7,870,841 outstanding as of June 30, 2016 and 2015, respectively



15,500,391




16,303,327


Additional paid-in capital



1,144,842




1,144,842


Treasury stock, at cost - 175,497 and 125,191 shares as of June 30, 2016 and 2015, respectively



(417,538)




(372,527)


Accumulated deficit



(4,518,799)




(2,552,870)


Accumulated other comprehensive income (loss)



(280,907)




91,432


Unearned stock-based compensation



(3,880)




(7,760)











Total Sino-Global Shipping America Ltd. Stockholders' Equity



11,424,109




14,606,444











Non-controlling Interest



(4,807,347)




(4,709,938)











Total Equity



6,616,762




9,896,506











Total Liabilities and Equity


$

9,054,144



$

11,810,550


 

 

 

SINO-GLOBAL SHIPPING AMERICA LTD. AND AFFILIATE

CONSOLIDATED STATEMENTS OF CASH FLOWS




For the Years Ended June 30,




2016



2015


Operating Activities


















Net income (loss)


$

(2,301,522)



$

643,922


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









Stock-based compensation to management



349,800




-


Amortization of stock-based compensation to consultants



1,327,780




512,269


Amortization of stock option expense



3,880




3,880


Depreciation and amortization



59,508




165,088


Provision of doubtful accounts



132,915




33,382


Deferred tax provision (benefit)



280,600




(116,700)


Loss on disposition of property and equipment



-




(20,693)


Changes in assets and liabilities









Increase in advances to suppliers



(2,141,935)




(42,493)


Decrease (increase) in accounts receivable



616,280




(2,633,716)


Increase in other receivables



(98,935)




(17,566)


Increase in prepaid expense



(4,228)




(296,750)


Increase in other assets



(30,600)




(20,943)


Decrease (increase) in due from related parties



1,162,072




(724,425)


(Decrease) increase in advances from customers



(101,828)




37,724


(Decrease) increase in accounts payable



(202,098)




292,832


Increase in taxes payable



640,549




789,188


Increase (decrease) in accrued expenses and other current liabilities



186,714




(403,097)











Net cash used in operating activities



(121,048)




(1,798,098)











Investing Activities









Acquisitions of property and equipment



(31,659)




(84,102)


Proceeds from sale of property and equipment



-




80,661


Cash collected from the termination of vessel acquisition



326,035






Collection of short-term loan from related party



-




1,113,599


Acquisitions of vessel



-




(516,229)











Net cash provided by investing activities



294,376




593,929











Financing Activities









Proceeds from issuance of common stock, net



691,600




967,820


Purchase of common stock



(45,011)















Net cash provided by financing activities



646,589




967,820











Effect of exchange rate fluctuations on cash and cash equivalents



(164,245)




64,140











Net increase (decrease) in cash and cash equivalents



655,672




(172,209)











Cash and cash equivalents at beginning of year



730,322




902,531











Cash and cash equivalents at end of year


$

1,385,994



$

730,322











Supplemental information









Income taxes paid


$

23,286



$

8,104


Non-cash transactions of operating activities:









Common stock issued for vessel acquisition


$

-



$

2,220,000


Return of common stock issued for vessel acquisition


$

(2,220,000)



$

-


Common stock issued for stock-based compensation to consultants


$

435,000



$

1,419,950


Common stock issued for LSM acquisition


$

-



$

33,400


 

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SOURCE Sino-Global Shipping America, Ltd.