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Feb 20, 2020 12:55 AM ET

Sino-Global Announces Fiscal 2020 Second Quarter Financial Results


iCrowd Newswire - Feb 20, 2020

ROSLYN, New York,– Sino-Global Shipping America, Ltd. (NASDAQ: SINO) (“Sino-Global”, the “Company”, “we”, “our”, or “us”), a global logistics service provider, announced its financial and operating results for its fiscal 2020 second quarter ended December 31, 2019.

The Company has also provided more detailed information in its quarterly report on Form 10-Q filed today with the U.S. Securities and Exchange Commission. Management encourages investors to review the Company’s 10-Q for a detailed discussion of the Company’s financial results for the quarter ended December 31, 2019.

Management Comments

Mr. Lei Cao, Chairman and Chief Executive Officer of Sino-Global commented, “We continued to maintain a steamlined operating strategy during a time when we were impacted by an uncertain trade climate. We shifted our focus towards higher margin and greater cash generating business while cultivating our business relationships to position Sino-Global for the future. We recently signed a joint-venture agreement to serve as a full logistics services provider for a leading agricultural company where Sino-Global will provide comprehensive supply chain logistic services for agricultural products shiped from the U.S. to China. In addition, we are now focused on pursuing additional ship management contracts as part of our agency services expansion efforts. The Company has a significant advantage of being able to leverage our relationships in both the U.S. and China while cost-effectively expanding the business prospects for our customers in ports throughout China.”

Chairman Cao concluded, “While calendar 2019 was a challenging period due to the trade climate, we believe that the Company is well-positioned to grow sales now as phase one of the trade negotiations have been completed. While the fiscal third quarter was seasonally slow due to the Chinese New Year holiday and an impact from the Coronavirus outbreak, we believe it is only temporary and we will continue to operate our business as steadily and safely as we can.”

Fiscal Second Quarter 2020 Financial Review

The following tables present summary information by segment for the three months ended December 31, 2019 and 2018, respectively:

   

For the Three Months Ended December 31, 2019

 
   

Shipping
Agency and
Management Services

   

Inland

Transportation
Management
Services

   

Freight
Logistics
Services

   

Container
Trucking
Services

   

Total

 

Revenues

                             

– Related party

 

$

   

$

   

$

   

$

   

$

 

– Third parties

 

$

500,000

   

$

   

$

1,503,500

*

 

$

17,624

   

$

2,021,124

 

Total revenues

 

$

500,000

   

$

   

$

1,503,500

   

$

17,624

   

$

2,021,124

 

Cost of revenues

 

$

66,584

   

$

   

$

673,646

*

 

$

15,415

   

$

755,645

 

Gross profit

 

$

433,416

   

$

   

$

829,854

   

$

2,209

   

$

1,265,479

 

Depreciation and amortization

 

$

79,144

   

$

   

$

   

$

3,389

   

$

82,533

 

Total capital expenditures

 

$

2,482

   

$

   

$

   

$

   

$

2,482

 

Gross margin%

   

86.7

%

   

%

   

55.2

%

   

12.5

%

   

62.6

%

 

*

For certain freight logistics contracts that the Company entered into with customers starting from the first quarter of fiscal year 2020, the Company (i) acted as an agent in arranging the relationship between the customer and the third-party service provider and (ii) did not control the services rendered to the customers, revenues related to these contracts are presented net of related costs. For the three months ended December 31, 2019, gross revenues and gross cost of revenues related to these contracts amounted to approximately $12.9 million and $12.0 million, respectively.

   

For the Three Months Ended December 31, 2018

 
   

Shipping
Agency and
Management Services

   

Inland

Transportation
Management
Services

   

Freight
Logistics
Services

   

Container
Trucking
Services

   

Total

 

Revenues

                             

– Related party

 

$

   

$

75,000

   

$

   

$

   

$

75,000

 

– Third parties

 

$

889,070

   

$

345,000

   

$

8,978,923

   

$

227,294

   

$

10,440,287

 

Total revenues

 

$

889,070

   

$

420,000

   

$

8,978,923

   

$

227,294

   

$

10,515,287

 

Cost of revenues

 

$

809,040

   

$

20,000

   

$

7,497,666

   

$

229,891

   

$

8,556,597

 

Gross profit

 

$

80,030

   

$

400,000

   

$

1,481,257

   

$

(2,597)

   

$

1,958,690

 

Depreciation and amortization

 

$

   

$

20,339

   

$

475

   

$

4,751

   

$

25,565

 

Total capital expenditures

 

$

   

$

   

$

   

$

8,534

   

$

8,534

 

Gross margin%

   

9.0

%

   

95.2

%

   

16.5

%

   

(1.1)

%

   

18.6

%

For the fiscal quarter ended December 31, 2019, the Company reported net loss attributable to Sino-Global Shipping America, Ltd. of approximately $407,333, or a loss of approximately $0.02 per diluted share based on approximately 16.8 million weighted average shares outstanding, compared to net loss attributable to Sino-Global Shipping America, Ltd. of approximately $1.5 million, or loss of approximately $0.11 per diluted share based on approximately 13.8 million weighted average shares outstanding, for the same period last year.

Balance Sheet Information

The Company’s allowance for doubtful accounts was approximately $6.9 million as of December 31, 2019 compared with allowance of doubtful accounts of approximately $5.7 million as of June 30, 2019. As the Company continues to maintain long-standing relationships with its customers, it will work with these parties to monitor their payments closely and it does not believe that there are any significant collection issues with respect to accounts receivables, net of allowance.

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 ChinaAustraliaCanada and Hong Kong. The Company’s current service offerings consist of shipping agency and management, 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 / [email protected]








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