NEPTUNE, N.J., Dec. 10, 2013 (GLOBE NEWSWIRE) -- Sterling Consolidated Corp. (OTCBB:STCC) (the "Company"), a leading supplier of hydraulic and pneumatic seals to the automotive and industrial marketplace, today issued a letter by Chairman Angelo DeRosa updating shareholders on the Company's progress in 2013.
Dear Fellow Shareholders,
Thank you for the support and confidence you have displayed to our company. Since going public on April 30th, we made many strides to improve the Company's value. We immediately set up an Acquisition Committee to identify, negotiate, and acquire companies that fit our business model and I have headed this committee since inception. We constantly evaluate and review targets that add value to our growth, geographic coverage and of course, our shareholder base.
Throughout 2013, the management team has been focused on sales and efficiencies. The organic sales of the company have risen in 2013, while our gross margins have improved over 12% this year alone. Better management of inventory and consolidation of purchasing contributed significantly.
On October 1st, 2013, we announced our first completed transaction with Superior Seals and Service in North Carolina. This acquisition gave us the ability to reach new markets with products that we did not directly carry. Certain existing products are now manufactured in-house, causing an increase in profit margin. Superior Seals and Service is fully integrated into Sterling Consolidated and we now seamlessly operate as one company.
In early October, we closed a banking transaction of $2.45 million with CB Bank in New York City, which was arranged by Madison Park Advisors. The favorable terms creates a better cash flow situation for Sterling. Along with the lower interest rates, the additional credit will allow us to close our upcoming acquisitions quickly.
Recently, we hired a new controller to handle increased traffic as new entities are brought into the fold. Since becoming a publicly traded company, I have spent much of my time visiting and talking to companies that are interested in being acquired. As of December 1st, we have issued 4 term sheets to companies we feel would fit our business model as well as deliver added value to the Company and our shareholders.
In conclusion, I am confident our experienced management team, business model and growth opportunities bode well for Sterling Consolidated as a publicly traded company in 2014. These factors, combined with our solid financial foundation, put us in an enviable position to grow as we remain focused on maximizing shareholder value by executing our plan and capitalizing on opportunities.
On behalf of the Sterling Consolidated management team, our Board of Directors and employees I wish you the very best for the holidays, and hope the New Year bring us all renewed prosperity.
Sincerely,
Angelo DeRosa
Chairman
Sterling Consolidated Corporation
About Sterling Consolidated Corp.
Sterling Consolidated Corp., through its wholly-owned subsidiary, Sterling Seal and Supply has been a leading supplier of hydraulic and pneumatic seals to the automotive and industrial marketplace for more than 40 years. Through a combination of leveraging its logistical expertise and sophisticated, experienced management, the company intends to be an active and strategic consolidator of small- and mid-sized businesses within the highly-fragmented, multi-billion dollar seal industry. Currently serving more than 3,000 customers, Sterling offers acquisition targets a unique growth opportunity and competitive advantage through logistical expertise, strong regional branding and industry-specific distribution centers.
Forward-looking Statements
This release contains statements that constitute forward-looking statements. These statements appear in a number of places in this release and include all statements that are not statements of historical fact regarding the intent, belief or current expectations of the Company, its directors or its officers with respect to, among other things: (i) the Company's financing plans; (ii) trends affecting the Company's financial condition or results of operations; (iii) the Company's growth strategy and operating strategy; and (iv) the declaration and payment of dividends. The words "may," "would," "will," "expect," "estimate," "anticipate," "believe," "intend," and similar expressions and variations thereof are intended to identify forward-looking statements. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, many of which are beyond the Company's ability to control, and that actual results may differ materially from those projected in the forward-looking statements as a result of various factors.