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Post by skoondog on Jun 3, 2014 6:46:23 GMT -5
Sterling Consolidated Announces First Quarter 2014 Results STRG| 21 hours ago 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 CONTACT: Communications Contacts: Scott Chichester Phone: 646-388-2495 Email: schichester@sterlingconsolidated.com GlobeNewswire June 2, 2014 - 9:57 AM EDT Tags: CONSUMER CYCLICAL RUBBER & PLASTICS -------------------------------------------------------------------------------- Rate this press release v -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- Add to favourites 0 Share0 Tweet0 Share0 -------------------------------------------------------------------------------- Related News Stockhouse @ the Bell: TSX closes higher, data shows Chinese, American manufacturing sectors... 14 hours ago Microcap Report: Papuan Precious Metals (V.PAU) Theralase Tech (V.TLT) active 16 hours ago Stocks advance in early trading amid strong Chinese manufacturing data 21 hours ago -------------------------------------------------------------------------------- Recent U.S. Press Releases • NeoStem Announces Access to New $30 Million Equity Facility With Aspire... 8 minutes ago BIOTECHNOLOGY| HEALTHCARE • SunOpta Scheduled to Attend the 34th Annual Piper Jaffray Consumer Conference... 8 minutes ago CONSUMER DEFENSIVE | PACKAGED FOODS • Myriad Genetics to Present at the Goldman Sachs Global Healthcare Conference 33 minutes ago DIAGNOSTICS & RESEARCH | HEALTHCARE More Press Releases » -------------------------------------------------------------------------------- < Why European stocks (EWG) have major upside potential Why Martin Murenbeeld is moderately bullish on the outlook for gold Medical marijuana license application deluge swamps Health Canada Golfer Mickelson approached in insider trading investigation involving him, investor Icahn Wall Street's fear gauge is flashing "SELL" Papuan Precious Metals (V.PAU) completes Colorado marijuana dispensary acquisition, up 6% Frank Holmes: From Constantinople to Istanbul, Turkey has never been better As commodities stall, miners aim for technology boost (T.EMC) (V.KZD) Centerra (T.CG) plunges 22% after Kumtor mine closure threat Harte Gold (T.HRT) provides exploration update at Sugar Zone and shares climb 16% Why European stocks (EWG) have major upside potential Why Martin Murenbeeld is moderately bullish on the outlook for gold Medical marijuana license application deluge swamps Health Canada Golfer Mickelson approached in insider trading investigation involving him, investor Icahn Wall Street's fear gauge is flashing "SELL" Papuan Precious Metals (V.PAU) completes Colorado marijuana dispensary acquisition, up 6% Frank Holmes: From Constantinople to Istanbul, Turkey has never been better As commodities stall, miners aim for technology boost (T.EMC) (V.KZD) Centerra (T.CG) plunges 22% after Kumtor mine closure threat Read more at www.stockhouse.com/news/press-releases/2014/06/02/sterling-consolidated-announces-first-quarter-2014-results#FWhQt0DbPcUqCqim.99 |
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Post by skoondog on Jun 4, 2014 12:54:15 GMT -5
Related Stocks STCC - Sterling Cons Sym Last Chg Pct Volume STCC 0.0679 +0.0029 +4.46% 25,600 EMR 66.79 -0.15 -0.22% 998,881 F 16.75 +0.20 +1.21% 16,455,650 AIT 47.75 +0.22 +0.46% 77,680 WHITEFISH, MT / June 3rd, 2014 / Sterling Consolidated Corp. (OTCBB:STCC) has established an impressive track record of consistent profitability over the last four decades, with only one year of unprofitability, having grown the business from around $1M to over $7M in revenues. STCC stands today as one of the top independent U.S. hydraulic and pneumatic o-ring and seal distributors via their wholly-owned Sterling Seal and Supply subsidiary, which currently has five East Coast locations. Sterling's primary growth strategy is focused on consolidating 100 highly profitable regional distributors within the U.S. These targets represent a large chunk of the market and, unlike STCC, often specialize in only certain types of rubber or certain industries. Many of these smaller operators, generating between $500k to $5M in sales, have been in the game for several decades and are now looking to retire. The company's strategy to acquire and streamline these businesses, implement the latest technology in order to maximize efficiency, readily addresses a target-rich environment. In addition to this core business unit, STCC maintains a wholly-owned freight forwarding subsidiary, Integrity Cargo, LLC, which has solid standalone profitability and is essentially a revenue generator with about 30 accounts, the biggest being Sterling itself. This entity is advantageous because it allows the Company to improve efficiency and provide better service to its customers. The company also has three primary real estate properties used to generate revenue via tenants, conduct operations, and warehouse an impressively broad array of products so customer demand can be met in a timely fashion. The first two properties are the main 28k square foot warehouse and office complex in Neptune, New Jersey and another 10k sq. ft. facility in Cliffwood Beach, NJ, both of which are owned by STCC's real estate holding subsidiary, ADDR Properties, LLC. The third property is a smaller 5k sq. ft. office and industrial facility in Apopka, Florida, held by Q5 Ventures, LLC, another of STCC's subsidiaries. The ubiquity of o-rings, which are used by some of the biggest companies on the planet, like Emerson Electric (NYSE:EMR) and Ford (NYSE:F), as well as their manifold applications across numerous sectors, from after-market automotive, to electronics, energy recovery, mining, pumps/valves, and even aerospace, means there is a massive amount of future growth and potential momentum for Sterling's roll-up strategy. With lots of opportunities for consolidation in this highly fragmented industry, STCC's aggressive acquisition strategy makes a great deal of sense. It elegantly mirrors that of Hercules Sealing Products, a division of Diploma PLC, which utilized a similar geographically distributed acquisition strategy and now generates over $225M in revenue. The industry is comprised of either major players like Applied Industrial Technologies (NYSE:AIT) with a $2B market cap, smaller entrenched private companies like Hercules, or mom and pop distributors that are ripe for acquisition by STCC. Sterling has secured two acquisitions since going public in April 2013 under the guidance of Madison Park Advisors. Recently, the company issued a term sheet to a regional firm that would increase the combined revenue to $10 million. The acquisition committee has reviewed another 10 targets, which are currently in early stage negotiations. STCC is confident that they will continue to close a few more acquisitions, from this set within the next year. Notably, no one else operating in this industry in the $1M to $10M range has comparably sophisticated management as STCC. With heavy-hitters on deck like former CPA for Goldman Sachs (as well as Ernst & Young), Scott Chichester, and 35-year sales and marketing veteran, John Magoulis (who is well-connected with acquisition target management throughout the industry), STCC has the lineup to deliver winning results for all stakeholders. Sterling brings a deep-bench of talent, improved supply chain metrics, logistical reach and expertise within the industry to the table when negotiating with owners of acquisition targets. Acquisition target employees have also been very receptive, especially the top people, because they get better benefits and overall operational efficiency. For instance, STCC brought both recent acquisitions full Automatic Data Processing (ADP) administration and healthcare coverage. Sales in this industry are mostly a regional affair and the company's western Pennsylvania location, R.G. Sales, is a good example of this regionality, as their customer base consists largely of miners. This underlying regionality, driven and reinforced by logistical constraints, as well as product mix concentration due to specificity of the local customer base, makes STCC's approach quite compelling. Such end-market regionality is further exemplified by STCC's North Carolina operation, where the customer base is mostly automotive. This regionality also enables the company to fight off competition easily, using their ability to visit customers and provide superior on-site support and customer to their advantage. The West Coast, Midwest and Southeast markets all present major target areas for Sterling. If the company can lock down a presence in these key locations, they will be able to cover the whole continental U.S. with efficient one-day UPS shipping. Most of the 3,000-plus customers STCC currently sells o-rings to using their industry-specific distribution centers also buy washers, gaskets and other similar items from China and international markets. This fact allows the company to exploit existing Integrity Cargo supply chain capabilities in order to offer customers bundled shipping, ultimately resulting in lower costs and a tidy profit for STCC. The company has also already done the hard leg work of sifting through the hundreds of available suppliers in China/Taiwan, establishing relationships with the best of the best and honing their supply chain down to the point where they source specific product categories from specific factories where quality has been verified. Moreover, these supply chain capabilities provide STCC with a perfect means of growing their o-ring business and overall product line. When the company was still private they did a "friends and family" raise to the tune of around $278k at $0.30/share, creating a core group of insiders that are in it for the long-term and who are still on board to this day. In addition, the SurePoint Capital investment agreement, entered into in May of 2013, where SurePoint committed to purchase up to $1M in stock over 24 months, represents a very friendly, gentle credit facility, designed by Madison Park Advisors to increase basic working capital to around $0.5M in support of the company's going public. This is a shrewd strategy from Madison Park, which creates a working capital foundation to facilitate future engagements of an investment bank by STCC, if/when they move to create a larger credit facility to support additional acquisitions. Sterling has been able to borrow large sums at extremely low rates, clearly telegraphing to markets the health and financial stability of their operations. Madison Park Advisors arranged and negotiated a $2.45M senior secured note from Customers Bancorp in October of 2013 on extremely favorable terms, with a stepped-up $1.25M credit line (variable initial rate of 3.75%), as well as a $1.2M commercial mortgage on its main warehouse in NJ (rate of 4.5% termed out over five years, roughly $4k a month). This financing has allowed the company to jump-start their roll-up acquisition strategy, but the emphasis has now switched to employing capital markets for future raises. A bankable loan at superb interest rates, combined with raw operational profitability in what is a growing OTC Market-traded stock, really throws a spotlight on STCC and investors should take note. When the company went public in April-May of 2013, after essentially exhausting their growth potential as a private company, revenues were roughly $5.7M while pulling down operational numbers akin to 2012. The new acquisitions should put the company at a run-rate of around $10M. Plans are to go after another acquisition target following the pending acquisition's completion and then likely up-list. Engagements have already been made with an investment bank specializing in finding and handling OTCBB companies that want to list on a higher exchange. Follow this link to receive free email updates on Sterling Consolidated Corp. progress: www.tdmfinancial.com/emailassets/stcc/stcc_landing.php Disclosure Except for the historical information presented herein, matters discussed in this release contain forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. Emerging Growth LLC is not registered with any financial or securities regulatory authority, and does not provide nor claims to provide investment advice or recommendations to readers of this release. For making specific investment decisions, readers should seek their own advice. Emerging Growth LLC may be compensated for its services in the form of cash-based compensation or equity securities in the companies it writes about, or a combination of the two. For full disclosure please visit: secfilings.com/Disclaimer.aspx SOURCE: Emerging Growth LLC www.accesswire.com/img.ashx?id=416396Copyright 2014 ACCESSWIRE Brought to you by the old Skoondog |
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