Sino-Global Shipping America total fell from $3.1 million to $1.6 millionStaff writer ▼ | February 15, 2016
Sino-Global Shipping America announced its financial results for the fiscal year 2016 second quarter ended December 31, 2015.
Sino-Global Shipping America The company was hit by a general economic slow-down in China
Gross margin for the period increased to 55.7% from 45.8%, largely due to revenue from the company's inland transportation business which provided higher margin, coupled with cost of shipping agency and ship management services.
The company underwent a thorough review of its receivables and after reassessing the collectability of certain past due accounts receivable, accrued approximately of $0.6 million additional bad debt reserve on accounts receivables. This contributed to an increase in general and administrative expenses during the period.
In December 2015, the company announced the termination of the previously announced asset purchase agreement to acquire a vessel from Rong Yao International Shipping Limited ("Rong Yao"). Under the terms of the termination agreement, 1.2 million shares of common stock that were issued in the original transaction have been returned to the company by Rong Yao.
Sino-Global reported an income tax expense of $0.3 million during the period compared to an income tax benefit of $0.02 million in the prior year period, largely due to a reassessment of the possibility of utilizing deferred tax assets in conjunction with the termination of the proposed vessel acquisition.
Net loss for the second quarter of fiscal year 2016 was $1.6 million, largely as the result of a decrease in total revenue, receivables reassessment, and a rise in income tax expense.
As of December 31, 2015, the company had cash and cash equivalents of $1.1 million, working capital of $8.7 million and shareholder equity of $9.2 million (or $1.10 per share); compared to $0.7 million, $6.2 million, and $9.9 million, respectively, as of December 31, 2014. The company holds no long-term debt. ■