Sino-Global Announces Fiscal Third Quarter 2012 Financial Results

BEIJING, May 14, 2012 /PRNewswire-Asia/ -- 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 third fiscal quarter ended March 31, 2012.

Financial Highlights for the Three and Nine Months Periods Ended March 31, 2012

• Revenues. Our total revenues increased by 0.49% from $9,065,518 for the three months ended March 31, 2011 to $9,110,006 in the comparable three months in 2012. Although the number of ships that generated revenues for us increased from 125 to 129 in the comparable three months ended March 31, 2011 and 2012, the revenue per vessel decreased primarily because we provided protective services for more ships, which generated significantly lower revenues per ship. For the three months ended March 31, 2012, we provided protective services to 34 ships, compared to 18 ships for the same three months in 2011. In addition, we provided services to some smaller ships, which generated lower revenues.  Our total revenues decreased by 2.30% from $26,331,088 for the nine months ended March 31, 2011 to $25,725,311 in the comparable nine months in 2012. The number of ships that generated revenues for us increased from 341 to 351 for the comparable nine month periods ended March 31, 2011 and 2012. The decreased revenues is again primarily due to the fact that we provided protective services for more ships, which generated significantly lower revenues per ship. For the nine months ended March 31, 2012, we provided protective services to 65 ships, compared to 35 ships for the same nine months in 2011.
• General and Administrative Expenses. Our general and administrative expenses increased by 9.49% from $1,049,933 for the three months ended March 31, 2011 to $1,149,522 for the three months ended March 31, 2012 and by 24.82% from $3,185,577 for the nine months ended March 31, 2011 to $3,976,137 for the nine months ended March 31, 2012. The increases were mainly due to increases in salaries and human resource expenses and increases in business promotion and expansion expenses. In a challenging economic climate in our industry, we have needed to allocate additional funds both to maintain our current clients and also to market to potential clients in China and internationally.
• Net Loss- As a result of the foregoing, we had a net loss of $770,155 for the quarter ended March 31, 2012, compared to net loss of $254,387 for the quarter ended March 31, 2011. After deduction of non-controlling interest in loss, net loss attributable to Sino-Global Shipping America, Ltd. was $477,388 for the three months ended March 31, 2012, compared to net loss of $152,571 for the three months ended March 31, 2011.  As a result of the foregoing, we had a net loss of $2,424,480 for the nine months ended March 31, 2012, compared to net loss of $719,512 for the nine month period ended March 31, 2011. After deduction of non-controlling interest in loss, net loss attributable to Sino-Global Shipping America, Ltd. was $1,538,176 for the nine months ended March 31, 2012, compared to net loss of $408,999 for the nine months ended March 31, 2011. Since we allocated more resources in international marketing and more personnel for overseas operations, the expenses related to Sino-Global Shipping America Limited increased significantly.
• Basic and diluted losses per share were US$0.16 and US$0.05 for the third fiscal quarter of 2012 and 2011, respectively. Basic and diluted losses per share for the nine months ended March 31, 2012 and 2011 were US$0.53 and US$0.14, respectively. Losses per share are adjusted for the non-controlling interest.

Mr. Cao Lei, Sino-Global's Chief Executive Officer, stated, "We continued to face a difficult economic environment in the most recent quarter but have been able to increase the number of ships that we are servicing slightly.  However, the number of ships discharging iron ore in Chinese ports has not increased, and we have mitigated that stagnancy by increasing our protective services to a greater number of ships, albeit at significantly lower agency revenues per ship.  We will continue to monitor our expenses closely but invest prudently in areas that should lead to future revenue and business growth."

Mr. Cao concluded, "In looking to the future, we continued to emphasize expanding our international marketing effort to position us for strong growth as economies around the world improve. Our position has been strengthened by the actions that we have taken and Sino-Global will continue to seek additional international business from loading ports in Australia, Canada, South Africa and Brazil as well as new international venues."

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, Brazil 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 unanticipated events.

For More Information

For a more detailed review of Sino-Global's financial results for fiscal third quarter ended March 31, 2012, please refer to the company's filing on Form 10-Q filing or Sino-Global's web site: www.sino-global.com.

- Tables to Follow -

SINO-GLOBAL SHIPPING AMERICA LTD. AND AFFILIATE
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(UNAUDITED)
		For the nine months ended March 31,				For the three months ended March 31,
		2012		2011		2012		2011
		US$		US$		US$		US$
Revenues		25,725,311		26,331,088		9,110,006		9,065,518
Cost of revenues		(23,840,881)		(23,740,899)		(8,634,188)		(8,170,398)
Gross profit		1,884,430		2,590,189		475,818		895,120
General and administrative expense		(3,976,137)		(3,185,577)		(1,149,522)		(1,049,933)
Selling expense		(296,353)		(324,592)		(83,547)		(156,202)
		(4,272,490)		(3,510,169)		(1,233,069)		(1,206,135)
Operating Loss		(2,388,060)		(919,980)		(757,251)		(311,015)
Financial income (expense), net		58,705		148,429		(42,152)		28,530
Non-operating revenue		52,533		14,927		36,167		5,011
Non-operating costs		(14,461)		(216)		(14,461)		(1)
Other income		25,343		76,846		1,204		1,488
Loss from equity investment		(189,772)		(44,930)		(773)		(13,000)
		(67,652)		195,056		(20,015)		22,028
Net loss before provision for income taxes		(2,455,712)		(724,924)		(777,266)		(288,987)
Income tax benefit		31,232		5,412		7,111		34,600
Net loss		(2,424,480)		(719,512)		(770,155)		(254,387)
Net loss attributed to non-controlling interest		(886,304)		(310,513)		(292,767)		(101,816)
Net loss attributable to Sino-Global Shipping America Ltd.		(1,538,176)		(408,999)		(477,388)		(152,571)
Net loss		(2,424,480)		(719,512)		(770,155)		(254,387)
Other comprehensive income
Foreign currency translation adjustments		9,847		(13,220)		13,836		2,980
Comprehensive loss		(2,414,633)		(732,732)		(756,319)		(251,407)
Comprehensive loss attributable to non-controlling interest		(903,667)		(312,387)		(294,335)		(103,334)
Comprehensive loss attributable to Sino-Global Shipping America Ltd.		(1,510,966)		(420,345)		(461,984)		(148,073)
Loss per share
-Basic and diluted		(0.53)		(0.14)		(0.16)		(0.05)
Weighted average number of common shares used in computation
-Basic and diluted		2,903,841		2,903,841		2,903,841		2,903,841

 

 

SINO-GLOBAL SHIPPING AMERICA LTD. AND AFFILIATE
CONDENSED CONSOLIDATED  BALANCE SHEETS
(UNAUDITED)
		March 31,		June 30,
		2012		2011
		US$		US$
Assets
Current assets
Cash and cash equivalents		6,417,455		4,878,828
Advances to suppliers		722,449		338,307
Accounts receivable, less allowance for doubtful accounts of $310,939 and $194,955 as of March 31, 2012 and June 30, 2011		2,588,584		1,847,990
Other receivables, less allowance for doubtful accounts of $80,000 as of March 31, 2012 and June 30, 2011		337,624		417,853
Prepaid expenses and other current assets		84,212		86,453
Prepaid taxes		26,189		286,492
Employee loans receivable		6,991		10,662
Income tax receivable		1,885		1,885
Deferred tax assets		175,000		117,000
Total current assets		10,360,389		7,985,470
Property and equipment, net		472,720		587,024
Security deposits		25,357		31,026
Employee loans receivable less current portion		6,988		11,896
Deferred tax assets		255,000		252,000
Equity investment		-		186,514
Total Assets		11,120,454		9,053,930
Liabilities and Equity
Current liabilities
Advances from customers		281,921		710,891
Accounts payable		7,837,912		2,913,553
Accrued expenses		67,248		81,146
Income tax payable		5,433		-
Other current liabilities		199,995		173,249
Total Current Liabilities		8,392,509		3,878,839
Total Liabilities		8,392,509		3,878,839
Commitments and Contingencies
Equity
Preferred stock, 1,000,000 shares authorized, no par value; none issued		-		-
Common stock, 10,000,000 shares authorized, no par value; 3,029,032 shares issued and 2,903,841 outstanding		7,709,745		7,709,745
Additional paid-in capital		1,191,796		1,191,796
Treasury stock, at cost		(372,527)		(372,527)
Accumulated deficit		(2,826,958)		(1,288,783)
Accumulated other comprehensive loss		824		(9,023)
Unearned Compensation		(397,558)		(397,558)
Total Sino-Global Shipping America Ltd. equity		5,305,322		6,833,650
Non-Controlling Interest		(2,577,377)		(1,658,559)
Total Equity		2,727,945		5,175,091
Total Liabilities and Equity		11,120,454		9,053,930

 

CONTACTS:
Ms. Apple Liang	Stephen D. Axelrod, CFA
Sino-Global, Beijing	Wolfe Axelrod Weinberger Assoc. LLC
[phone]	Tel. [phone] Fax [phone]

 

SOURCE Sino-Global Shipping America, Ltd.

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