Sino-Global Shipping America, Ltd. , an international shipping agency and logistic services provider, today announced its financial results for the fiscal 2014 third quarter ended March 31, 2014.
Three consecutive quarters of net profit with diluted earnings per share of $0.07 and $0.23 for the three and nine months ended March 31, 2014, respectively.
Strong results from the newly developed Inland Transportation Management Services business that generated revenues of $0.87 million, or 41% of total revenues for the three months ended March 31, 2014.
Significantly improved gross margin of 54.7% for the three months ended March 31, 2014 from 14.8% for the same period of 2013, thanks to strong contribution from the higher margin Inland Transportation Management Services business and streamlined Shipping Agency business.
Mr. Lei Cao, Chairman and Chief Executive Officer of Sino-Global commented: “Despite a challenging macroeconomic environment that continued to drag on the shipping industry, we are pleased to see our efforts to reorganize and streamline our Shipping Agency business and expand our service platform continuing to pay off. During the third quarter of fiscal 2014, with improved gross margin in our Shipping Agency business and solid contribution from the newly launched Inland Transportation Management Services business, we notched our third consecutive profitable quarter – not an insignificant achievement for Sino-Global, in our view. Looking ahead, we are increasingly optimistic about our future as we continue to streamline our operation and expand our service platform. We look forward to sharing our company’s story with investors in New York at the end of the month.”
The Company will be a featured presenter at the 3rd Annual Marcum MicroCap Conference on Thursday, May 29, 2014 in New York City at the Grand Hyatt Hotel. Its presentation is scheduled to begin at 10:00 a.m. EDT.
Financial Condition
As of March 31, 2014, the Company had cash and cash equivalents of $2,290,635 and working capital of $2,843,196, compared to $3,048,831 and $2,740,260, respectively, at the end of fiscal year 2013 ended June 30, 2013. Net cash used in operating activities was $627,753 for the nine months ended March 31, 2014, as compared to $4,043,279 for the same period of 2013. Net cash used in investing activities was $203,702 for the nine months ended March 31, 2014, as compared to $50,198 for the same period of 2013.
Recent Developments
On January 6, 2014, the Company announced that it had signed a three-year strategic partnership agreement (the “Tally Agreement”) with the Dalian subsidiary of a Chinese state-owned enterprise, China United Tally Co., Ltd. (“China Tally Dalian”) to jointly develop third-party verification services at key ports across China. Under the terms of the Tally Agreement, China Tally Dalian will be Sino-Global’s exclusive partner in the development and deployment of third-party verification services for the Company’s customers at key ports across China.
On April 4, 2014, the Company announced that it has signed a one-year strategic cooperation agreement (the “PENAVICO Agreement”) with China Ocean Shipping Agency (“PENAVICO”) to jointly develop their shipping agency business both in China and overseas through a cross-referral and collaboration arrangement. Under the terms of the Agreement, Sino-Global and PENAVICO will leverage each other’s strengths at different ports to explore cross-referral and profit sharing opportunities among existing clients.
About Sino-Global Shipping America, Ltd.
Founded in the United States of America (“US”) in 2001, Sino-Global Shipping America, Ltd. is a Virginia corporation with its primary US operations in New York. We provide our customers with comprehensive yet customized shipping agency, shipping and chartering, and inland transportation management services. As a general shipping agent, the Company serves ships coming to and departing from a number of countries and regions, including China, Australia, South Africa, Brazil, New Zealand, and Canada.
SOURCE Sino-Global Shipping America, Ltd.
