Toggle SGML Header (+)


Section 1: 8-K (CURRENT REPORT)

 

 

United States

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

 

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported): May 14, 2018

 

Sino-Global Shipping America, Ltd.

(Exact name of Registrant as specified in charter)

 

Virginia   001- 34024   11-3588546
(State or other jurisdiction
of Incorporation)
  (Commission File No.)   (IRS Employer
Identification No.)

 

1044 Northern Boulevard, Suite 305

Roslyn, New York 11576-1514

(Address of principal executive offices) (Zip Code)

 

Registrant’s telephone number, including area code: (718) 888-1814

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

☐     Written communications pursuant to Rule 425 under the Securities Act (17CFR230.425)

 

☐     Soliciting material pursuant to Rule14a-12 under the Exchange Act (17CFR240.14a-12)

 

☐     Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17CFR240.14d-2(b))

 

☐     Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17CFR240.13e-4(c))

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

 

Emerging growth company ☐

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

 

 

 

 

 

Item 2.02. Results of Operations and Financial Condition.

 

On May 14, 2018, Sino-Global Shipping America, Ltd. (the “Company”) issued a press release announcing certain financial results for the quarter ended March 31, 2018. A copy of the press release is attached hereto as Exhibit 99.1.

 

The information provided in this Current Report on Form 8-K, including Exhibit 99.1, shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liability of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such a filing.

 

Item 9.01. Financial Statements and Exhibits.

 

(d) Exhibits.

 

Exhibit No.   Description
     
99.1   Press release of Sino-Global Shipping America, Ltd.

 

 1 

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

Date: May 14, 2018

 

  Sino-Global Shipping America, Ltd.
     
  By: /s/ Lei Cao
  Name: Lei Cao
  Title: Chief Executive Officer

 

 2 

 

 

EXHIBIT INDEX

 

Exhibit No.   Description
     
99.1   Press release of Sino-Global Shipping America, Ltd.

 

 

3

 

(Back To Top)

Section 2: EX-99.1 (PRESS RELEASE OF SINO-GLOBAL SHIPPING AMERICA, LTD)

Exhibit 99.1

 

 

 

Sino-Global Announces Fiscal Year 2018 Third Quarter Financial Results

 

Roslyn, New York, May 14, 2018 – Sino-Global Shipping America, Ltd. (NASDAQ: SINO) (“Sino-Global,” the “Company” or “we”), a logistics integrated solution provider engaged in non-asset based global shipping, freight logistics, and inland transportation management and related services, today announced its financial results for the third quarter of the fiscal year 2018 ended March 31, 2018. The Company has also provided extensive information on its quarterly report on Form 10-Q filed this morning with the U.S. Securities and Exchange Commission. Management encourages investors to review this filing for more details of the Company’s financial results for the third quarter of fiscal year 2018, background on Sino-Global’s business and history, as well as Company strategy for the coming fiscal year.

 

Fiscal Year 2018 Third Quarter Operating and Financial Highlights

(as compared to the same period of the prior year)

 

Total revenues of this quarter increased 89.3% or $2.5 million to $5.2 million, compared to $2.7 million. The increase was primarily due to the Company’s efforts to diversify its business in freight logistics services.
Gross margin decreased from 58.8% to 34.5% as a result of lower margin fragmented freight logistics services have been provided to customers in the current period in comparison with the corresponding period in 2017. The Company strategically allocated its resources to develop new businesses and markets in the U.S. as the focus for its growth.
Net income for the third quarter of fiscal year 2018 was $0.24 million, as compared to a net income of $1.3 million for the same period of the prior year. The decrease was due to higher cost of revenues associated with our fragmented freight logistics services which reduced the gross margin. In addition, our general and administrative expenses increased as a result of increased bad debt reserve and increased professional fee, and increased income tax expense of $0.26 million as compared to a tax benefit of $0.30 million recognized during the prior year period.
On March 14, 2018, the Company closed a $3 million registered direct offering of its common stock and concurrent private placement of its Series A Warrants and Series B Warrants.
At March 31, 2018, the Company had cash and cash equivalents of $9.5 million, and holds no long-term debt.

 

Management Commentary

Mr. Lei Cao, Chairman and Chief Executive Officer of Sino-Global commented, “We continue to ramp up and expand our business with our focus on our inland transportation, freight logistics and container trucking services. We were pleased with our growth for the quarter. However, there were several factors that adversely affected our bottom line. These factors included a change in our product mix towards freight logistics services which generates higher revenues but has lower profit margins than our other services. We also recognized an income tax expense for the quarter of $0.26 million due to changes in deferred tax assets for the three-month period.”

 

Mr. Cao continued. “Also during the quarter, we completed a capital raise that resulted in net proceeds of $2.6 million, after related costs. We intend to use the money raised towards the further development of our business. In the remaining period of fiscal year 2018, we will continue to focus on increasing revenue and cash flow in the U.S. We will continue to use our bulk cargo container business in partnership with COSCO to seek solutions for empty containers between container shipping lines from the U.S. to China and view this aspect of our operations as a major part of our growth.”

 

In addition to the growth of Sino-Global’s bulk cargo container business segment, management continues to focus on growth of the Company’s container truck business in the United States and anticipates further positive developments of this segment of the Company’s operations in the coming months.

 

 

 

Sino-Global Shipping America, Ltd. Page 2

May 14, 2018

 

Fiscal Year 2018, Third Quarter Financial Review

Revenues increased by $2.5 million, or 89.3%, to $5.2 million from $2.7 million for the three months ended March 31, 2017. This increase was primarily attributable to the Company diversifying its business in freight logistics services. Revenues generated from freight logistics services increased by $2.7 million, or 332.1%, from the three months ended March 31, 2017.

 

The Company’s gross profit during the period was $1.8 million as compared to the prior year period at $1.6 million.

 

Total operating costs and expenses increased to $4.9 million for the three months ended March 31, 2018 from $1.8 million for the prior year period. The increase was attributable to several factors primarily focused on the diversification of the business which included a rise in the cost of revenue attributable to different segments, general and administrative expenses.

 

Operating income for the three months ended March 31, 2018 was approximately $0.28 million, compared to an operating income of approximately $0.96 million for the comparable period ended March 31, 2017. The decrease was due to the above-mentioned rise in operating expenses relating to the ramp up of the Company’s business.

 

Income tax expense for the three months ended March 31, 2018 was $0.22 million, compared to an income tax benefit of approximately $0.30 million for the same period of the prior year. Current income tax incurred from operations in China and Hong Kong remained approximately the same compared to the same period last year, while income tax benefit decreased due to changes in in allowance for bad debts, net operating loss carryover and the increase in the valuation allowance against the deferred tax assets, based on the Company’s latest projected taxable income.

 

As a result of the factors discussed above, for the three months ended March 31, 2018, the Company reported a net income of $0.24 million, compared to net income of $1.3 million for the three months ended March 31, 2017.

 

Balance Sheet Information

As of March 31, 2018, the Company had $9.5 million in cash and cash equivalents, working capital of $17.5 million and shareholder equity of $24.3 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.

  

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.

Terry Downs

Senior Associate

(212)-836-9615 / tdowns@equityny.com

 

 

 

Sino-Global Shipping America, Ltd. Page 3

May 14, 2018

 

SINO-GLOBAL SHIPPING AMERICA, LTD. AND AFFILIATES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)

(UNAUDITED)

 

   For the Three Months Ended March 31,  

For the Nine Months Ended

March 31,

 
   2018   2017   2018   2017 
Net revenues - third parties  $4,699,170   $1,984,834   $14,179,256   $4,591,381 
Net revenues - related party   501,000    762,777    1,621,406    2,229,180 
Total revenues   5,200,170    2,747,611    15,800,662    6,820,561 
Cost of revenues   (3,405,435)   (1,132,213)   (10,447,231)   (1,789,348)
Gross profit   1,794,735    1,615,398    5,353,431    5,031,213 
                     
General and administrative expenses   (1,477,514)   (612,441)   (4,067,885)   (2,248,639)
Selling expenses   (35,363)   (41,245)   (393,090)   (153,429)
Total operating expenses   (1,512,877)   (653,686)   (4,460,975)   (2,402,068)
                     
Operating income   281,858    961,712    892,456    2,629,145 
                     
Other income (expense)                    
Financial income (expense), net   170,134    34,167    392,729    (57,737)
Total other income (expense)   170,134    34,167    392,729    (57,737)
                     
Net income  before provision for income taxes   451,992    995,879    1,285,185    2,571,408 
                     
Income tax benefit (expense)   (216,095)   303,196    58,597    158,184 
                     
Net income   235,897    1,299,075    1,343,782    2,729,592 
                     
Net income (loss) attributable to non-controlling interest   150,943    4,021    343,936    (104,083)
                     
Net income attributable to Sino-Global Shipping America, Ltd.  $84,954   $1,295,054   $999,846   $2,833,675 
                     
Comprehensive income (loss)                    
Net income  $235,897   $1,299,075   $1,343,782   $2,729,592 
Foreign currency translation income (loss)   164,446    4,871    309,763    (114,011)
Comprehensive income   400,343    1,303,946    1,653,545    2,615,581 
Less: Comprehensive income (loss) attributable to non-controlling interest   30,785    (19,419)   92,150    4,702 
                     
Comprehensive income attributable to Sino-Global Shipping America Ltd.  $369,558   $1,323,365   $1,561,395   $2,610,879 
                     
Earnings per share                    
 -Basic  $0.01   $0.14   $0.10   $0.33 
 -Diluted  $0.01   $0.14   $0.10   $0.33 
                     
Weighted average number of common shares used in computation                    
 -Basic   10,835,535    8,994,146    10,433,272    8,514,080 
 -Diluted   10,870,221    9,028,928    10,479,555    8,534,701 

 

 

 

Sino-Global Shipping America, Ltd. Page 4

May 14, 2018

 

SINO-GLOBAL SHIPPING AMERICA, LTD. AND AFFILIATES
CONDENSED CONSOLIDATED BALANCE SHEETS  

 

   March 31,   June 30, 
   2018   2017 
   (Unaudited)     
Assets        
Current assets        
Cash and cash equivalents  $9,549,942   $8,733,742 
Accounts receivable, less allowance for doubtful accounts of $1,350,531 and $185,821 as of March 31, 2018 and June 30, 2017, respectively   4,757,547    2,569,141 
Other receivables, less allowance for doubtful accounts of $145,244 and $145,244 as of March 31, 2018 and June 30, 2017, respectively   167,018    37,811 
Advances to suppliers-third parties   442,137    54,890 
Advances to suppliers-related party   3,601,421    3,333,038 
Prepaid expenses and other current assets   397,368    311,136 
Due from related parties, net   2,249,544    1,715,130 
           
Total Current Assets   21,164,977    16,754,888 
           
Property and equipment, net   536,282    187,373 
Intangible assets, net   168,889    - 
Prepaid expenses   -    6,882 
Other long-term assets   137,850    117,478 
Deferred tax assets   1,670,100    749,400 
           
Total Assets  $23,678,098   $17,816,021 
           
Liabilities and Equity          
           
Current Liabilities          
Advances from customers  $373,172   $369,717 
Accounts payable   472,085    206,211 
Taxes payable   2,401,934    1,886,216 
Due to related parties   -    206,323 
Accrued expenses and other current liabilities   423,877    418,029 
           
Total Current Liabilities   3,671,068    3,086,496 
           
Income tax payable - noncurrent portion   440,219    - 
           
Total Liabilities   4,111,287    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; 12,611,032 and 10,281,032 shares issued as of March 31, 2018 and June 30, 2017, respectively; 12,435,535 and 10,105,535 outstanding as of March 31, 2018 and June 30, 2017, respectively   22,046,330    20,535,379 
Additional paid-in capital   2,386,864    688,934 
Treasury stock, at cost, 175,497 shares as of March 31, 2018 and June 30, 2017   (417,538)   (417,538)
Retained earnings (accumulated deficit)   105,939    (893,907)
Accumulated other comprehensive income (loss)   153,775    (414,564)
           
Total Sino-Global Shipping America Ltd. Stockholders’ Equity   24,275,370    19,498,304 
           
Non-controlling Interest   (4,708,559)   (4,768,779)
           
Total Equity   19,566,811    14,729,525 
           
Total Liabilities and Equity  $23,678,098   $17,816,021 

 

 

 

Sino-Global Shipping America, Ltd. Page 5

May 14, 2018

 

SINO-GLOBAL SHIPPING AMERICA LTD. AND AFFILIATES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)

 

   For the Nine Months Ended
March 31,
 
   2018   2017 
Operating Activities        
Net income  $1,343,782   $2,729,592 
Adjustment to reconcile net income to net cash provided by (used in) operating activities:          
Amortization of stock options   9,665    77,320 
Amortization of stock - based compensation to consultants   432,125    547,138 
Amortization of stock - based compensation to employees   182,000    - 
Depreciation and amortization   63,402    36,432 
Provision for (recovery of) doubtful accounts - accounts receivable   1,164,710    (107,608)
Provision for doubtful accounts - due from related parties   243,433    - 
Deferred tax benefit   (920,700)   (387,900)
Changes in assets and liabilities          
Accounts receivable   (3,246,911)   517,463 
Other receivables   (80,145)   184,753 
Advances to suppliers - third parties   50,465    816,715 
Prepaid expense and other current assets   (84,147)   65,279 
Due from related parties   (784,363)   (2,843,131)
Other long-term assets   -    (14,185)
Advances from customers   (23,218)   324,476 
Accounts payable   243,380    312,883 
Taxes payable   798,012    201,259 
Due to related parties   (206,323)   156,841 
Accrued expenses and other current liabilities   889    514,445 
           
Net cash provided by (used in) operating activities   (813,944)   3,131,772 
           
Investing Activities          
Acquisition of property and equipment   (379,917)   (55,474)
Acquisition of intangible assets   (190,000)   - 
Prepayment for intangible assets   (437,357)   - 
           
Net cash used in investing activities   (1,007,274)   (55,474)
           
Financing Activities          
Proceeds from issuance of common stock, net   2,585,091    4,319,988 
Proceeds from exercise of stock options   -    82,500 
           
Net cash provided by financing activities   2,585,091    4,402,488 
           
Effect of exchange rate fluctuations on cash and cash equivalents   52,327    (24,591)
           
Net increase in cash and cash equivalents   816,200    7,454,195 
           
Cash and cash equivalents at beginning of period   8,733,742    1,385,994 
           
Cash and cash equivalents at end of period  $9,549,942   $8,840,189 
           
Supplemental information          
Income taxes paid  $60,162   $89,324 

 

 

 

 

 

(Back To Top)