NEPTUNE, N.J., June 2, 2014 (GLOBE NEWSWIRE) -- Sterling Consolidated Corp. (OTCBB:STCC), a supplier of hydraulic and pneumatic seals to the automotive and industrial marketplace, reported its results for the first quarter ended March 30, 2014.
Key Highlights for the First Quarter 2014.
- Revenues increased to $1.7 million, up 5.4% year over year;
- Gross Profit increased 3.7% to $604,843
- Net Income was $85,862.
Revenues for the first quarter of 2014 were $1.74 million, up slightly compared to $1.65 million for the same period in 2013. Gross profit for the first quarter of 2014 was $0.60 million, a 3.7% increase from $0.58 million for the same period in 2013.
The Company's Net Income for the first quarter of 2014 was $85,862.
Darren DeRosa, Chief Executive Officer of Sterling Consolidated, commented, "The first quarter was successful as we increased revenues, improved our gross margins and proceeded with another acquisition. As a public company our goal is to consolidate the highly fragmented O-ring distributor market. We believe that the acquisition of RG Sales, Inc on April 1, 2014 allows us to work towards this goal. Our acquisition committee continues to negotiate with targets within our region and in the Midwest. We hope to close additional acquisitions over the coming quarters that will allow us to grow and improve our business."
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.
| STERLING CONSOLIDATED CORP AND SUBSIDIARIES | ||||
| CONSOLIDATED STATEMENTS OF OPERATIONS | ||||
| (Unaudited) | ||||
| For the Three Months Ended | For the Nine Months Ended | |||
| September 30, | September 30, | |||
| 2013 | 2012 | 2013 | 2012 | |
| Revenues | ||||
| O-rings and rubber product sales | $ 1,546,716 | $ 1,380,002 | $ 4,623,352 | $ 4,503,506 |
| Freight services | $ 40,676 | 31,749 | 104,929 | 88,850 |
| Rental services | 15,984 | 18,427 | 39,054 | 50,573 |
| Total revenues | $ 1,603,376 | $ 1,430,178 | $ 4,767,335 | $ 4,642,929 |
| Cost of sales | ||||
| Cost of goods | 1,090,241 | 1,081,137 | 3,129,584 | 3,205,182 |
| Cost of services | 120,209 | 67,390 | 257,068 | 201,819 |
| Total cost of sales | 1,210,450 | 1,148,527 | 3,386,652 | 3,407,001 |
| Gross profit | 392,926 | 281,651 | 1,380,683 | 1,235,928 |
| Operating expenses | ||||
| Sales and marketing | 10,333 | 14,788 | 35,310 | 35,519 |
| General and administrative | 330,572 | 255,879 | 1,253,010 | 932,968 |
| Total operating expenses | 340,905 | 270,667 | 1,288,320 | 968,487 |
| Operating income | 52,021 | 10,984 | 92,363 | 267,441 |
| Other income and expense | ||||
| Other income | 3,269 | 27,572 | 10,879 | 47,799 |
| Other expense | -- | -- | -- | -- |
| Interest expense | (29,377) | (36,788) | (91,611) | (92,059) |
| Total other income and (expense) | (26,108) | (9,216) | (80,732) | (44,260) |
| Income before provision for income taxes | 25,913 | 1,768 | 11,631 | 223,181 |
| Provision for income taxes | 21,190 | 722 | 3,437 | 91,169 |
| Net income | 4,723 | 1,046 | 8,194 | 132,012 |
| Other comprehensive income/(loss) | ||||
| Unrealized gain/(loss) on interest rate swap contract | 2,908 | -- | (10,076) | (4,699) |
| Comprehensive income/(loss) | $ 7,631 | $ 1,046 | $ (1,882) | $ 127,313 |
| Net income/(Loss) per share of common stock: | ||||
| Basic and diluted | $ 0.00 | $ 0.00 | $ 0.00 | $ 0.00 |
| Weighted average number of shares outstanding | ||||
| Basic and diluted | 37,231,649 | 36,882,590 | 37,142,721 | 36,589,801 |
| STERLING CONSOLIDATED CORP AND SUBSIDIARIES | ||
| CONSOLIDATED BALANCE SHEETS | ||
| September 30, | December 31, | |
| 2013 | 2012 | |
| (unaudited) | ||
| ASSETS | ||
| Current assets | ||
| Cash and cash equivalents | $ 77,226 | $ 115,489 |
| Account receivable, net of allowance | 1,033,662 | 871,132 |
| Inventory, net of reserve | 2,372,061 | 2,307,413 |
| Notes receivable | 43,176 | 40,601 |
| Investment | 100 | 75 |
| Other current assets | 1,100 | -- |
| Total current assets | 3,527,325 | 3,334,710 |
| Property and equipment, net | 2,601,999 | 2,684,299 |
| Intangible asset, net | 970 | -- |
| Deferred tax asset | 7,776 | 7,776 |
| Total assets | $ 6,138,070 | $ 6,026,785 |
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||
| Current liabilities | ||
| Accounts payable and accrued expenses | 1,045,378 | 1,139,681 |
| Notes payable (current portion) | 132,228 | 130,905 |
| Notes payable related party (current portion) | 50,083 | 62,151 |
| Bank line of credit | 894,591 | 839,591 |
| Interest rate swap contract | 11,800 | 1,724 |
| Other liabilities | 208,854 | 76,971 |
| Total current liabilities | 2,342,934 | 2,251,023 |
| Other liabilities | ||
| Notes payable | 808,386 | 900,761 |
| Notes payable (related party) | 1,654,145 | 1,614,952 |
| Total other liabilities | 2,462,531 | 2,515,713 |
| Total liabilities | 4,805,465 | 4,766,736 |
| Stockholders' equity | ||
| Preferred stock, $0.001 par value; 10,000,000 shares authorized, no shares issued | -- | -- |
| Common stock, $0.001 par value; 200,000,000 shares authorized, 37,399,040 and 37,074,040 shares issued and outstanding as of September 30, 2013 and December 31, 2012, respectively. | 37,399 | 37,074 |
| Accumulated other comprehensive loss | (11,800) | (1,724) |
| Additional paid-in capital | 1,249,192 | 1,175,079 |
| Retained earnings | 57,814 | 49,620 |
| Total stockholders' equity | 1,332,605 | 1,260,049 |
| Total liabilities and stockholders' equity | $ 6,138,070 | $ 6,026,785 |