Exhibit 99.1

 

 

 

Sino-Global Announces 2017 Year End Financial Results

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

 

Roslyn, New York, September 27, 2017 – 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 

 

 -2- 

 

 

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

 

 -3- 

 

 

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 

 

 -4- 

 

 

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 

 

 -5- 

 

 

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 

 

 

-6-

 

 

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