NEPTUNE, N.J., May 15, 2013 /PRNewswire/ --Sterling Consolidated Corp. (OTCBB: STCC), a leading supplier of hydraulic and pneumatic seals to the automotive and industrial marketplace, today reported its results for the first quarter ended March 31, 2013.
Key Highlights:
- Filed a Form S-1 to become a publicly traded company on the Over-The-Counter Bulletin Board market as of March 11, 2013
- STCC has been profitable quarter over quarter since 2009
- Significantly improved Accounts Receivables to Accounts Payables ratio
- Completed and published new Sterling Consolidated website available at www.sterlingconsolidated.com
Revenues for the first quarter of 2013 were $1,663,150, compared to $1,741,432 for the same period in 2012. Gross profit for the first quarter of 2013 was $596,418, a slight increase from $559,695 for the same period in 2012.
The Company's operating income for the first quarter of 2013 was $180,960 compared to operating income of $142,637 in the first quarter of 2012. Net income for the period was $110,922, or $0.0030 per diluted share, compared to net income of $92,639, or $0.0026 per diluted share, in the comparable period in 2012.
Darren DeRosa, Chief Executive Officer of Sterling Consolidated, commented, "It's an exciting time for Sterling Consolidated as we are now a publicly traded company. We will look to use the capital markets to our advantage as we execute our roll-up strategy. Based on our long experience in the industry, the O-ring distributor market is highly fragmented and we plan on taking advantage of our public company status to build upon our current infrastructure. Our presence in the U.S. will continue to grow as our strategically located distribution centers will provide synergistic benefits to our acquisition targets."
Mr. DeRosa continued, "In addition to our roll-up strategy, we also remain committed to growing organically. While our first quarter revenues were roughly flat, we did experience some pockets of success. We saw significant growth prospects in the pool industry, in part due to new custom molded products that were added to our product line. Additionally, we had a 700% increase in sales coming from Amazon compared to the prior quarter. We will look to capitalize on this online growth as we expand our customer base through our roll-up strategy. Lastly, we significantly decreased our accounts payables through the retirement of some of the Company's debt. Going forward, we will continue to execute on our business strategy and further deliver the profitable results we have achieved every quarter since 2009."
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 | |||
For the Three Months Ended | |||
2013 | 2012 | ||
Revenues | |||
O-rings and rubber product sales | $ 1,627,886 | $ 1,741,432 | |
Freight services | 22,214 | - | |
Rental services | 13,050 | - | |
Total revenues | $ 1,663,150 | $ 1,741,432 | |
Cost of sales | |||
Cost of goods | 1,006,249 | 923,531 | |
Cost of services | 60,483 | 258,206 | |
Total cost of sales | 1,066,732 | 1,181,737 | |
Gross profit | 596,418 | 559,695 | |
Operating expenses | |||
Sales and marketing | 107,194 | 10,438 | |
General and administrative | 308,264 | 406,620 | |
Total operating expenses | 415,458 | 417,058 | |
Operating income | 180,960 | 142,637 | |
Other income and expense | |||
Other income | 4,298 | 10,103 | |
Other expense | - | - | |
Interest expense | (29,380) | (36,941) | |
Total other income and (expense) | (25,082) | (26,838) | |
Income before provision for income taxes | 155,878 | 115,799 | |
Provision for income taxes | 44,956 | 23,160 | |
Net income | 110,922 | 92,639 | |
Other comprehensive income/(loss) | |||
Unrealized gain/(loss) on interest rate swap contract | (17,606) | (4,699) | |
Comprehensive income | $ 93,316 | $ 87,940 | |
Net income per share of common stock: | |||
Basic and diluted | $ 0.0030 | $ 0.0026 | |
Weighted average number of shares outstanding | |||
Basic and diluted | 37,074,040 | 30,095,927 | |
STERLING CONSOLIDATED CORP AND SUBSIDIARIES | ||||
CONSOLIDATED BALANCE SHEETS | ||||
March 31, | December 31, | |||
2013 | 2012 | |||
ASSETS | ||||
Current assets | ||||
Cash and cash equivalents | $ 74,541 | $ 115,489 | ||
Account receivable, net of allowance | 912,662 | 871,132 | ||
Inventory, net of reserve | 2,333,031 | 2,307,413 | ||
Notes receivable | 40,201 | 40,601 | ||
Investment | 75 | 75 | ||
Other current assets | - | - | ||
Total current assets | 3,360,510 | 3,334,710 | ||
Property and equipment, net | 2,654,943 | 2,684,299 | ||
Intangible asset, net | - | - | ||
Deferred tax asset | 7,776 | 7,776 | ||
Total assets | $ 6,023,229 | $ 6,026,785 | ||
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) | ||||
Current liabilities | ||||
Accounts payable and accrued expenses | $ 897,350 | $ 1,139,681 | ||
Notes payable (current portion) | 131,546 | 130,905 | ||
Notes payable related party (current portion) | 47,925 | 62,151 | ||
Bank line of credit | 839,591 | 839,591 | ||
Interest rate swap contract | 19,330 | 1,724 | ||
Other liabilities | 225,399 | 76,971 | ||
Total current liabilities | 2,161,141 | 2,251,023 | ||
Other liabilities | ||||
Notes payable | 861,718 | 900,761 | ||
Notes payable (related party) | 1,647,005 | 1,614,952 | ||
Total other liabilities | 2,508,723 | 2,515,713 | ||
Total liabilities | 4,669,864 | 4,766,736 | ||
Stockholders' equity (deficit) | ||||
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, 37,040,040 shares issued and outstanding as of March 31, 2013 and December 31, 2012; | 37,074 | 37,074 | ||
Subscription receivable | - | - | ||
Accumulated other comprehensive loss | (19,330) | (1,724) | ||
Additional paid-in capital | 1,175,079 | 1,175,079 | ||
Retained earnings | 160,542 | 49,620 | ||
Total stockholders' equity (deficit) | 1,353,365 | 1,260,049 | ||
Total liabilities and stockholders' equity (deficit) | $ 6,023,229 | $ 6,026,785 | ||
Investor Contact:
KCSA Strategic Communications
Phil Carlson / Josh Dver
212-896-1233 / 1239
pcarlson@kcsa.com / jdver@kcsa.com
SOURCE Sterling Consolidated Corp.
