Sino-Global Announces Fiscal First Quarter 2013 Financial Results
- Revenues decreased 8.3% for the first quarter ended September 30, 2012
compared to prior fiscal year -
- Strong balance sheet with $3.1 million in cash and working capital of $1.4
- Chinese government strict financing policies resulted in decreased iron ore
imports into China -
BEIJING, Nov. 14, 2012
BEIJING, Nov. 14, 2012 /PRNewswire/ --Sino-Global Shipping America, Ltd.
(Nasdaq: SINO), a leading, non-state-owned provider of shipping agency
services operating primarily in China, today announced its selected financial
results for its first fiscal quarter ended September 30, 2012.
Financial Highlights for the First Fiscal Quarter Ended September 30, 2012
oTotal revenues decreased 8.3% to US$7.88 million, from US$8.59 million in
the first fiscal quarter ended September 30, 2011.
oThe devaluation of the US dollar against the Chinese Renminbi ("RMB")
resulted in a minor change in gross margin from 9.76% in the first fiscal
quarter of 2011 to 9.69% in the current fiscal quarter.
oGeneral and administrative expenses as a percentage of total revenues
decreased to 12.6% from 16.1% as a result of strong internal budget
oNet loss was US$442,157 compared to net loss of US$826,940 in the first
fiscal quarter of 2011.
oBasic and diluted losses per share were US$0.07 and US$0.23 for the first
fiscal quarter of 2013 and 2012, respectively. Earnings and losses per
share are adjusted for the non-controlling interest.
Mr. Cao Lei, Sino-Global's Chief Executive Officer, stated, "In this difficult
macro economic environment, our revenues decreased 8.27% in the first quarter
of fiscal 2013. Although it is difficult for us to predict future trend under
economic uncertainties, we still believe that growth is a key for a small
company like ours to survive and develop. As such, we will continue setting as
our first priority increasing the top line growth."
Mr. Cao, continued, "We continue to work on signing additional reciprocal
shipping agency agreements in the near future that will result in additional
ships and loading ports that use Sino-Global's services and believe that these
efforts will result in significant incremental revenues. In addition, we are
working to achieve growth in fiscal 2013, supported by our efforts to maintain
our current clients, attract new clients and increase in revenues from our
agency services to vessels coming to Chinese ports as well as expanding
business activities at the loading ports in Australia, Canada, South Africa,
Brazil and other countries to which China has major trading activities."
In conclusion, Mr. Cao, stated, "While first quarter revenues were slightly
lower than a year earlier, we have taken the necessary steps to limit our
losses and preserve our capital structure. We believe fiscal 2013 results will
accelerate over the course of the fiscal year as we maintain and add to our
current customer base and benefit from the development of new markets in China
and overseas reciprocal agreements."
Selected Financial Results for Fiscal 2013
Our total revenues decreased by 8.27% from $8,592,707 for the three months
ended September 30, 2011 to $7,882,068 in the comparable three months in 2012.
The number of ships that generated revenues for us increased from 106 for the
first quarter of fiscal 2012 to 124 for the comparable quarter of fiscal 2013.
In contrast the larger increased numbers of ships we served, our revenues
decreased. This is because we provided protective services for more ships
which generated significantly lower revenues per ship. For the three months
ended September 30, 2012, we provided protective services to 51 ships,
compared to 14 ships for the first quarter of 2011. We provided
loading/discharging service to 73 and 92 ships for the three months ended
September 30, 2012 and 2011, respectively.
Our cost of revenues decreased by 8.20% from $7,754,218 for the three months
ended September 30, 2011 to $7,118,163 for the three months ended September
30, 2012. The revenues decreased faster than costs of revenues, and the gross
margins decreased from 9.76% down to 9.69% for the comparative three months
ended September 30, 2011 and 2012, respectively. The 0.07% decrease in gross
margin was largely due to the devaluation of the U.S. dollar against the
Chinese currency. The average foreign exchange rate was $1.00 to RMB 6.3524
for the three months ended September 30, 2012 compared to $1.00 to RMB 6.4176
for the three months ended September 30, 2011, a 1.02% increase during the
General and Administrative Expenses. Our general and administrative expenses
primarily consist of salaries and benefits for our staff (both operating and
administrative personnel), business promotion, depreciation expenses, office
rental expenses and expenses for legal, accounting and other professional
services. For the three months ended September 30, 2012, our general and
administrative expenses as a percentage of our total revenues decreased from
16.08% to 12.64% for the three months ended September 30, 2011. This is mainly
because we slowed down our business expansion in China and overseas to face
the economic recession. In particular, the general and administrative expenses
of our Australian and Hong Kong offices constituted about 10.22% of all
general and administrative expenses for the period ended September 30, 2012,
compared to that of 11.84% for the year earlier period.
Our selling expenses primarily consist of commissions and traveling expenses
for our operating staff to the ports at which we provide services. In line
with the fall in our revenues, our selling expenses decreased in absolute
amount and as a percentage of our total net revenues for the three months
ended September 30, 2012.
We had an operating loss of $318,876 for the three months ended September 30,
2012, compared to operating loss of $648,006 for the comparable three months
in 2011. The operating loss for the first quarter of fiscal 2013 was decreased
primarily due to the reduced general and administrative expenses.
Our net financial expense was $2,568 for the three months ended September 30,
2012, compared to our net financial expense of $44,003 for the three months
ended September 30, 2011. The net financial expenses were derived largely from
the foreign exchange losses recognized in the financial statement
consolidation. Foreign exchange losses resulting from the settlement of
foreign exchange transactions are recognized in the condensed consolidated
statements of operations.
Our income tax expense was $157,200 for the three months ended September 30,
2012, compared to income tax benefits of $23,121 for the three months ended
September 30, 2011. As we made tax provision of $24,200 and recognized
$133,000 of net deferred tax assets, the income tax expense of the first
quarter of 2013 were $157,200.
As a result of the foregoing, we had a net loss of $442,157 for the quarter
ended September 30, 2012, compared to net loss of $826,940 for the quarter
ended September 30, 2011. After deduction of non-controlling interest in loss,
net loss attributable to Sino-Global Shipping America, Ltd. was $190,233 for
the three months ended September 30, 2012, compared to net loss of $665,787
for the three months ended September 30, 2011. With other comprehensive loss
foreign currency translation, comprehensive loss was $199,016 for the three
months ended September 30, 2012, compared to comprehensive loss of $625,357
for the three months ended September 30, 2011.
Other Selected Data
As of September 30, 2012, we had $3,117,556 in cash and cash equivalents. Our
cash and cash equivalents primarily consist of cash on hand and cash in banks.
We deposited approximately 89.14% of our cash in banks in the USA, Australia
and Hong Kong.
About Sino-Global Shipping America, Ltd.
Registered in the United States in 2001 and operating primarily in mainland
China, Sino-Global is a leading, non-state-owned provider of high-quality
shipping agency services. With local branches in most of China's main ports
and contractual arrangements in all those where it does not have branch
offices, Sino-Global is able to offer efficient, high-quality shipping agency
services to shipping companies entering Chinese ports. With a subsidiary in
Perth, Australia, where it has a contractual relationship with a local
shipping agency, Sino-Global provides complete shipping agent services to
companies involved in trades between Chinese and Australian ports. Sino-Global
also cooperates with companies in Hong Kong, China, India, and South Africa to
offer comprehensive shipping agent services to vessels going to and from some
of the world's busiest ports.
Sino-Global provides ship owners, operators and charters with comprehensive
yet customized shipping agency services including intelligence, planning,
real-time analysis and on-the-ground implementation and logistics support.
Sino-Global has achieved both ISO9001 and UKAS certifications.
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
For More Information
For a more detailed review of Sino-Global's financial results for fiscal
quarter ended September 30, 2012, please refer to the company's filing on Form
10-Q filing or Sino-Global's web site: www.sino-global.com
Mr. Mingwei Zhang, Chief Financial Officer Stephen D. Axelrod, CFA
Sino-Global, Beijing Wolfe Axelrod Weinberger Assoc.
Tel. +86-10-6439-1888 Tel. (212) 370-4500 Fax (212)
- Tables to Follow –
SINO-GLOBAL SHIPPING AMERICA, LTD. AND AFFILIATES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
For the three months ended September 30,
Net Revenues $ 7,882,068 $ 8,592,707
Cost of revenues (7,118,163) (7,754,218)
Gross profit 763,905 838,489
General and administrative expenses (996,273) (1,381,913)
Selling expenses (86,508) (104,582)
Operating Loss (318,876) (648,006)
Financial expense, net (2,568) (44,003)
Other income, net 36,487 30,032
Loss from equity investment - (188,084)
Net loss before provision for (284,957) (850,061)
Income tax (expense) benefit (157,200) 23,121
Net loss (442,157) (826,940)
Net loss attributed to (251,924) (161,153)
Net loss attributable to (190,233) (665,787)
Sino-Global Shipping America, Ltd
Net loss (442,157) (826,940)
Other comprehensive income:
Foreign currency translation (5,819) 33,649
Comprehensive loss (447,976) (793,291)
Less: Comprehensive loss
attributable to non-controlling (248,960) (167,934)
Comprehensive loss attributable to $ (199,016) $ (625,357)
Sino-Global Shipping America Ltd.
Loss per share
-Basic and diluted $ (0.07) $ (0.23)
Weighted average number of common
shares used in computation
-Basic and diluted $ 2,903,841 $ 2,903,841
SINO-GLOBAL SHIPPING AMERICA, LTD. AND AFFILIATES
CONDENSED CONSOLIDATED BALANCE SHEETS
September30, June 30,
Cash and cash equivalents $ 3,117,556 $ 4,433,333
Advances to suppliers 831,821 901,654
Accounts receivable, less allowance for doubtful 3,700,083 3,788,966
accounts of $357,140
Other receivables, less allowance for doubtful 509,509 377,835
accounts of $80,000
Other current assets 58,300 82,257
Prepaid taxes 27,356 27,356
Deferred tax assets 87,500 175,000
Total current assets 8,332,125 9,786,401
Property and equipment, net 391,444 415,672
Other long-term assets 21,260 30,457
Deferred tax assets - long term 298,500 344,000
Total Assets 9,043,329 10,576,530
Liabilities and Equity
Advances from customers 166,765 303,437
Accounts payable 6,456,493 7,467,145
Accrued expenses 88,007 92,217
Other current liabilities 233,257 169,628
Total Current Liabilities 6,944,522 8,032,427
Total Liabilities $ 6,944,522 $ 8,032,427
Commitments and Contingency
Preferred stock, 1,000,000 shares authorized, no - -
Common stock, 10,000,000 shares authorized, no
par value; 3,029,032 shares issued, 2,903,841 $ 7,709,745 $ 7,709,745
Additional paid-in capital 1,191,796 1,191,796
Treasury stock, at cost - 125,191 shares (372,527) (372,527)
Accumulated deficit (3,247,090) (3,056,858)
Accumulated other comprehensive loss 10,890 16,709
Unearned Stock-based Compensation (202,089) (202,089)
Total Sino-Global Shipping America Ltd. 5,090,725 5,286,776
Non-Controlling interest (2,991,918) (2,742,673)
Total equity 2,098,807 2,544,103
Total Liabilities and Equity $ 9,043,329 $ 10,576,530
SOURCE Sino-Global Shipping America, Ltd.
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