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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

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