NEPTUNE, N.J., Dec. 8, 2014 (GLOBE NEWSWIRE) -- Sterling Consolidated Corp. (OTCBB:STCC), a leading supplier of hydraulic and pneumatic seals to the automotive and industrial marketplace, is announcing 9-month sales and earnings growth as disclosed in its September 30, 2014 10Q.
Key Highlights:
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Substantially completed implementation of its Enterprise Resource Planning software to prepare the company for expected growth.
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Revenues of $5.266 million are up $538K, or 11.4%, for the 9-months ended September 30, 2014 compared to the 9-months ended September 30, 2013.
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Operating income of $240K is up $148K, or 160%, for the 9-months ended September 30, 2014 compared to the 9-months ended September 30, 2013.
- Net income of $116K is up $108K, or 1,350%, for the 9-months ended September 30, 2014 compared to the 9-months ended September 30, 2013.
The revenue growth is primarily attributed to increase in incremental sales from the Company's recent acquisitions of RG Sales Inc. and Superior Sales Inc. in North Carolina.
The operating income and net income growth is largely attributed to incremental sales from acquisitions coupled with reduced cost of goods sold due to more efficient purchasing.
"Sterling Consolidated has continued to successfully implement its growth program over the course of the year," said Darren DeRosa, Chief Executive Officer. "The increase in net income and the significant growth of sales revenue shows that our acquisition model is functioning well as we continue to absorb new locations. The growth of both operating profit and revenue is proof of our financial solidity and strength. Cost discipline remains our top priority as we grow further and faster with the goal of maintaining consistent profitability."
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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 2,300 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) | ||||
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For the Three Months Ended September 30, |
For the Nine Months Ended September 30, |
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| 2014 | 2013 | 2014 | 2013 | |
| Revenues | ||||
| O-rings and rubber product sales | $ 1,622,191 | $ 1,546,716 | $ 5,174,641 | $ 4,623,352 |
| Freight services | 20,264 | 40,676 | 91,474 | 104,929 |
| Total revenues | 1,642,455 | $ 1,587,392 | 5,266,115 | $ 4,728,281 |
| Cost of sales | ||||
| Cost of goods | 1,059,247 | 1,090,241 | 3,334,292 | 3,129,584 |
| Cost of services | 67,435 | 89,209 | 176,815 | 165,031 |
| Total cost of sales | 1,126,682 | 1,179,450 | 3,511,107 | 3,294,615 |
| Gross profit | 515,773 | 407,942 | 1,755,008 | 1,433,666 |
| Operating expenses | ||||
| Sales and marketing | 71,540 | 45,333 | 171,304 | 141,310 |
| General and administrative | 453,285 | 326,572 | 1,343,372 | 1,199,993 |
| Total operating expenses | 524,825 | 371,905 | 1,514,676 | 1,341,303 |
| Operating income (loss) | (9,052) | 36,037 | 240,332 | 92,363 |
| Other income and expense | ||||
| Other income (expense) | 21,334 | 19,253 | 35,235 | 10,879 |
| Interest expense | (32,214) | (29,377) | (99,501) | (91,611) |
| Total other expense | (10,880) | (10,124) | (64,266) | (80,732) |
| Income (loss) before provision for income taxes | (19,932) | 25,913 | 176,066 | 11,631 |
| Provision for income taxes | (8,316) | 21,190 | 60,083 | 3,437 |
| Net income (loss) | (11,616) | 4,723 | 115,983 | 8,194 |
| Other comprehensive income | ||||
| Unrealized gain/(loss) on interest rate swap contract | -- | 2,908 | -- | (10,076) |
| Comprehensive income | $ (11,616) | $ 7,631 | $ 115,983 | $ (1,882) |
| Net income 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 | 40,336,570 | 37,231,649 | 39,344,780 | 37,142,721 |