Exhibit 99.1

 

 

Sino-Global Announces 2018 First Quarter Financial Results

Highlighted by Progress in Freight Logistics and Container Trucking Services

 

Roslyn, New York, November 14, 2017 – Sino-Global Shipping America, Ltd. (NASDAQ: SINO) (“Sino-Global”, the “Company” or “us”), a non-asset based global shipping and freight logistics integrated solutions provider, today announced its financial and operating results for the quarter ended September 30, 2017.

 

Fiscal Year 2018 First Quarter Operating and Financial Highlights (all comparisons to the prior year period)

 

Total revenues increased 176.7% to $5.4 million, as compared to $1.9 million for the prior year. The increase was primarily the result of the Company’s efforts to diversify its business.
  
Gross profit increased to $1.7 million as compared to $1.6 million for the prior year period.
  
Net income for the first quarter of fiscal year 2018 was $716,637 compared to net income of $637,785.
  
The Company had $7.9 million in cash and cash equivalents, as of the three months ended September 30, 2017.

 

Management Comments

 

Mr. Lei Cao, Chief Executive Officer of Sino-Global, stated, “We continue to focus on the advancement of our short-haul trucking business in the U.S. with the further buildout and development of our strategic logistics internet platform. We finished the basic layout in fiscal year 2017 and will continue to work to increase business for our short-haul trucking operations in the United States, which carry lower operating costs than other segments of our business.”

 

Mr. Lei Cao concluded, “For the fiscal 2018 year, we expect to continue the development of our existing businesses. We will also focus on the bulk cargo containerized model in connection with our joint venture agreement with COSCO, as well as developing services models in the U.S. for supply chain logistics for products imported from China to the U.S. Our focus remains on the long-term success of our business and value creation for our shareholders. We intend to continue to maintain an active dialogue with investors as we strive towards becoming a leading global logistics service provider.”

 

Fiscal Year 2018 First Quarter Financial Highlights (all comparisons to the same quarter in the prior year)

 

Total revenues for the three months ended September 30, 2017 were $5.4 million, compared to $1.9 million in the same period of the prior year. The increase was primarily due to the Company’s efforts to diversify its business in the freight logistics services and container trucking platform services segments. The revenues generated from freight logistics services increased by 665.0% from the three months ended September 30, 2016 to $3,508,704 for the comparable period in 2017. The Company also generated $452,841 in revenue from container trucking services for the three months ended September 30, 2017 with no revenue generated in the comparable period of the prior year.

 

The cost of revenue was $3.7 million for the three months ended September 30, 2017, an increase of approximately $3.4 million as compared to $306,339 for the three months ended September 30, 2016. The increase in the overall cost of revenue for the three months ended September 30, 2017 stemmed primarily from the majority of the revenue generated for the quarter coming from the Company’s freight logistics services, which carry higher costs.

 

The Company’s gross profit for the period was $1.7 million, compared to $1.6 million in the same period in the prior year.

 

Operating income for the three months ended September 30, 2017 was $928,270, compared to an operating income of $712,840 for the comparable period in the prior year. This was primarily due to an increase in third party revenues generated from the freight logistics and container trucking services business segments.

 

Net income for fiscal year 2018 first quarter was $716,637 compared to net income of $637,785 in the comparable period in the prior year, largely as a result of a significant increase in total revenues which offset higher cost of revenues and an increase in income tax expense for the quarter.

 

 

 

 

Balance Sheet Information

 

As of September 30, 2017, the Company had $7.9 million in cash and cash equivalents, working capital of $14.6 million and shareholder equity of $20.3 million; compared to $8.7 million, $13.7 million and $19.5 million, respectively, as of June 30, 2017.

 

The Company holds no long-term debt.

 

Additional Information

 

The Company has also provided extensive industry information on its quarterly report for the fiscal quarter ended September 30, 2017 on Form 10-Q, and management encourages investors to review the document for both background on Sino-Global’s business and history as well as the strategy for the fiscal year.

 

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 Los Angeles, 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

 

 -2- 

 

 

SINO-GLOBAL SHIPPING AMERICA, LTD. AND AFFILIATES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME

(UNAUDITED)  

 

   For the Three Months Ended
September 30,
 
   2017   2016 
         
Net revenues - third parties  $4,814,851   $1,086,767 
Net revenues - related party   565,160    857,635 
Total revenues   5,380,011    1,944,402 
Cost of revenues   (3,665,918)   (306,339)
Gross profit   1,714,093    1,638,063 
           
General and administrative expenses   (763,357)   (859,914)
Selling expenses   (22,466)   (65,309)
Total operating expenses   (785,823)   (925,223)
           
Operating income   928,270    712,840 
           
Financial income (expense), net   84,796    (3,434)
           
Net income before provision for income taxes   1,013,066    709,406 
           
Income tax expense   (296,429)   (71,621)
           
Net income   716,637    637,785 
           
Net income (loss) attributable to non-controlling interest   99,448    (7,935)
           
Net income attributable to Sino-Global Shipping America, Ltd.  $617,189   $645,720 
           
Comprehensive income (loss)          
Net income  $716,637   $637,785 
Foreign currency translation income (loss)   47,717    (14,570)
Comprehensive income   764,354    623,215 
           
Less: Comprehensive income attributable to non-controlling interest   40,747    2,609 
           
Comprehensive income attributable to Sino-Global Shipping America Ltd.  $723,607   $620,606 
           
Earnings per share          
-Basic  $0.07   $0.08 
-Diluted  $0.07   $0.08 
           
Weighted average number of common shares used in computation          
-Basic   10,105,535    8,280,535 
-Diluted   10,157,625    8,280,535 

 

 -3- 

 

 

SINO-GLOBAL SHIPPING AMERICA, LTD. AND AFFILIATES

CONDENSED CONSOLIDATED BALANCE SHEETS

(UNAUDITED)

 

  

September 30,

  

June 30,

 
   2017   2017 
Assets        
Current assets        
Cash and cash equivalents  $7,927,386   $8,733,742 
Accounts receivable, less allowance for doubtful accounts of $163,950 and $185,821 as of September 30, 2017 and June 30, 2017, respectively   4,318,818    2,569,141 
Other receivables, less allowance for doubtful accounts of $145,284 and $145,244 as of September 30, 2017 and June 30, 2017, respectively   98,638    37,811 
Advances to suppliers-third parties   34,561    54,890 
Advances to suppliers-related party   3,395,994    3,333,038 
Prepaid expenses and other current assets   358,069    311,136 
Due from related parties   2,285,130    1,715,130 
           
Total Current Assets   18,418,596    16,754,888 
           
Property and equipment, net   182,105    187,373 
Prepaid expenses   3,506    6,882 
Other long-term assets   119,442    117,478 
Deferred tax assets   649,500    749,400 
           
Total Assets  $19,373,149   $17,816,021 
           
Liabilities and Equity          
           
Current Liabilities          
Advances from customers  $393,580   $369,717 
Accounts payable   872,117    206,211 
Taxes payable   2,066,796    1,886,216 
Due to related parties   132,861    206,323 
Accrued expenses and other current liabilities   351,541    418,029 
           
Total Current Liabilities   3,816,895    3,086,496 
           
Total Liabilities   3,816,895    3,086,496 
           
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 shares issued as of September 30, 2017 and June 30, 2017; 10,105,535 outstanding as of September 30, 2017 and June 30, 2017, respectively   20,535,379    20,535,379 
Additional paid-in capital   751,308    688,934 
Treasury stock, at cost, 175,497 shares as of September 30, 2017 and June 30, 2017   (417,538)   (417,538)
Accumulated deficit   (276,718)   (893,907)
Accumulated other comprehensive loss   (308,145)   (414,564)
           
Total Sino-Global Shipping America Ltd. Stockholders’ Equity   20,284,286    19,498,304 
           
Non-controlling Interest   (4,728,032)   (4,768,779)
           
Total Equity   15,556,254    14,729,525 
           
Total Liabilities and Equity  $19,373,149   $17,816,021 

 

 -4- 

 

 

SINO-GLOBAL SHIPPING AMERICA LTD. AND AFFILIATES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)  

 

   For the Three Months Ended
September 30,
 
   2017   2016 
         
Operating Activities        
         
Net income  $716,637   $637,785 
Adjustment to reconcile net income to net cash provided by (used in) operating activities:          
Stock-based compensation expense   9,665    19,330 
Amortization of stock-based compensation to consultants   52,709    398,996 
Depreciation and amortization   13,203    13,342 
Recovery of doubtful accounts   (24,536)   (109,693)
Deferred tax provision   99,900    - 
Changes in assets and liabilities          
(Increase) decrease in accounts receivable   (1,711,154)   1,664,027 
Other receivable   (60,396)   99,823 
Advances to suppliers-third parties   20,481    (1,422,433)
Prepaid expenses and other current assets   (50,390)   (79,274)
Due from related parties   (570,000)   504,824 
Increase (decrease) in advances from customers   17,410    - 
Accounts payable   661,628    (482,658)
Taxes payable   146,104    76,140 
Due to related parties   (73,462)   - 
Accrued expenses and other current liabilities   (68,288)   204,165 
           
Net cash provided by (used in) operating activities   (820,489)   1,524,374 
           
Investing Activities          
Acquisition of property and equipment   (5,077)   - 
           
Net cash used in investing activities   (5,077)   - 
           
Effect of exchange rate fluctuations on cash and cash equivalents   19,210    (14,103)
           
Net (decrease) increase in cash and cash equivalents   (806,356)   1,510,271 
           
Cash and cash equivalents at beginning of period   8,733,742    1,385,994 
           
Cash and cash equivalents at end of period  $7,927,386   $2,896,265 
           
Supplemental information          
Income taxes paid  $60,162   $6,446 

 

 

-5-

 


The following information was filed by Sinoglobal Shipping America, Ltd. (SINO) on Tuesday, November 14, 2017 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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