Sino-Global Announces Fiscal Year 2017 Second Quarter Financial Results

ROSLYN, N.Y., Feb. 13, 2017 /PRNewswire/ -- 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 fiscal year 2017 second quarter ended December 31, 2016. 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 and Company management encourages investors to review this document for more details of the Company's financial results for the second quarter of fiscal year 2017, background on Sino-Global's business and history, as well as Company strategy for the coming fiscal year.

Fiscal Year 2017 Second Quarter Operating and Financial Highlights(as compared to the same period of the prior year)

• Total revenues increased 33.3% to $2.1 million, compared to $1.6 million.  The increase was primarily the result of a shift in our business mix, which included increases in revenues reported for the Company's inland transportation management services, freight logistic services and container trucking services. 
• Gross profit margin for the period increased to 83.5% from 55.7%, largely due to the Company's shift in focus towards higher margin logistics services. 
• Net income for the second quarter of fiscal year 2017 was $0.8 million, as compared to a net loss of $1.6 million for the same period of the prior year. 
• Earnings per basic and diluted share increased 161.1%, to $0.11 per share.
• At December 31, 2016, the Company had cash and cash equivalents of $3.3 million, accounts receivable of $1.8 million, working capital of $7.7 million and shareholder equity of $12.8 million; compared to $1.4 million, $2.3 million, $6.2 million, and $11.4 million, respectively, as of June 30, 2016.
• The Company holds no long-term debt.

Management CommentaryMr. Lei Cao, Chairman and Chief Executive Officer of Sino-Global commented, "We had a strong quarter with an increase in total revenue of 33%. This increase was primarily the result of a shift in our business services mix towards inland transportation management, freight logistics and container trucking services. The shift in services was first implemented last year in response to worsening market conditions in the shipping industry. As a result of this change in our business model, the Company is reporting higher profit margins and we believe the Company is now better equipped to address the needs of our evolving and expanding customer base."

Chairman Cao continued, "During the last quarter we continued our efforts to address industry challenges, and in December we completed the launch of our full-service logistics platform. Our new platform connects shippers with independent trucking organizations, and since launch the Company has entered into agreements with two major shipping conglomerates. These agreements not only strengthen our relationships with these businesses but, we anticipate, will lead to additional customers and strategic partnerships in the future."

"Sino-Global is confident that information and communication technologies can be adopted by traditional industries to meet contemporary supply and demand challenges, and in the months ahead we will continue the rollout of our inland transportation management, freight logistics and container trucking services; as well as foster strong relationships with our strategic partners and draw upon our technical abilities and in-depth industry knowledge to develop innovative value-added logistic solutions for our customers."

Fiscal Year 2017, Second Quarter Financial Review

The following table presents summary information by segment for the three months ended December 31, 2016 and 2015:

• Our total revenues were $2.1 million during the period, compared to $1.6 million in the prior year period. This increase was due to an increase in revenues generated from the Company's inland transportation management services, and in the first quarter of fiscal year 2017, the Company began recognizing revenues from freight logistics services and additional revenue was provided by container trucking services in the second quarter ended December 31, 2016.
• The Company's gross profit during the period was $1.8 million, compared to $0.9 million in the prior year period. Gross profit margin during the period improved to 83.5%, compared to 55.7%, largely as a result of the favorable shift in our services mix.
• Our operating income for the three months ended December 31, 2016 was approximately $1.0 million, compared to an operating loss of $1.1 million for the comparable period ended December 31, 2015. This increase was primarily attributable to an increase in revenue generated from the Company's inland transportation management services and freight logistics services and a decrease in our general and administrative expenses. 
• Our income tax expense for the three months ended December 31, 2016 was $0.07 million, compared to income tax expense of $0.3 million for the same period of the prior year. The decrease in income tax expense over the prior year was due to a decrease of deferred income tax as the result of the change of our deferred tax valuation from 90% to 100% in December 31, 2015.  
• For the three months ended December 31, 2016, the Company reported a net income of $0.8 million, compared to net loss of $1.6 million for the three months ended December 31, 2015.  

Balance Sheet Information

• As of December 31, 2016, the Company had $3.3 million in cash and cash equivalents, working capital of $7.7 million and shareholder equity of $12.8 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.

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 StatementsNo 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 InformationThe Equity Group Inc.Adam PriorSenior Vice-President(212)-836-9606 / [email protected]

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/sino-global-announces-fiscal-year-2017-second-quarter-financial-results-300405978.html

SOURCE Sino-Global Shipping America, Ltd.