Sterling Consolidated Reports Robust Annual Revenue Growth and Positive Adjusted EBITDA
NEPTUNE, N.J., April 18, 2018 /PRNewswire/ -- Sterling Consolidated Corp. (OTCQB: STCC), a supplier of hydraulic and pneumatic seals to the automotive and industrial marketplace, reported its results for the year ended December 31, 2017.
Key Highlights for Fiscal 2017:
- Annual revenues increased to $6.453 million, up 12.4% from 2016
- 2017 Adjusted EBITDA* increased to $370,066 up 79% from 2016
Darren DeRosa, Chief Executive Officer of Sterling Consolidated, commented, "The results of operations demonstrate a strong year for both the Company and the Sealing industry. Our core business has stabilized which enables us to focus on our ongoing strategic plan to introduce Blockchain technology to the O-ring industry."
To be added to the Sterling Consolidated investor email list, please email Scott Chichester at schichester@sterlingconsolidated.com
About Sterling Consolidated Corp.
Currently serving more than 3,000 customers, Sterling Consolidated Corp., through its wholly-owned subsidiary, Sterling Seal and Supply Inc., has been a leading supplier of hydraulic and pneumatic seals to the automotive and industrial marketplace for more than 45 years. They have recently developed their own cryptocurrency, "DiMO" which will be distributed in December of 2018 in a previously declared property dividend and is part of the Company's strategic plan to bring Blockchain to the O-ring industry.
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.
*Note: Adjusted EBITDA is calculated by taking net income and adding back interest, taxes, depreciation, amortization, equity based compensation, and other one-time adjustments. For 2017 Sterling had $517,040 in compensation expense related to an option grant to executives and key employees, and a one-time inventory write down of $444,464 for obsolete and slow-moving inventory which were added back in the calculation of Adjusted EBITDA.
STERLING CONSOLIDATED CORP AND SUBSIDIARIES | ||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||
For the year ended | ||||||||
2017 | 2016 | |||||||
Revenues | ||||||||
O-rings and rubber product sales | $ | 6,256,026 | 5,632,422 | |||||
Freight services | 197,204 | 106,543 | ||||||
Total revenues | 6,453,230 | $ | 5,738,965 | |||||
Cost of sales | ||||||||
Cost of goods | 5,191,716 | 3,995,601 | ||||||
Cost of services | 236,281 | 180,123 | ||||||
Total cost of sales | 5,427,997 | 4,175,724 | ||||||
Gross profit | 1,025,233 | 1,563,241 | ||||||
Operating expenses | ||||||||
Sales and marketing | 246,608 | 222,960 | ||||||
General and administrative | 1,615,850 | 1,245,465 | ||||||
Total operating expenses | 1,862,458 | 1,468,425 | ||||||
Operating income (loss) | (837,225) | 94,816 | ||||||
Other income and expense | ||||||||
Other income | 89,865 | (11,790) | ||||||
Loss on sale of real estate | - | (39,910) | ||||||
Loss on sale of vehicle | (2,502) | - | ||||||
Gain on interest rate swap | 12,885 | 9,499 | ||||||
Interest expense | (124,632) | (141,516) | ||||||
Total other expense | (24,384) | (183,717) | ||||||
Income (loss) before provision for income taxes | (861,609) | (88,901) | ||||||
Provision (benefit) for income taxes | (330,253) | (3,610) | ||||||
Net income (loss) | $ | (531,356) | $ | (85,291) | ||||
Net income (loss) per share of common stock: | ||||||||
Basic and diluted | $ | (0.01) | $ | (0.00) | ||||
Weighted average number of shares outstanding | ||||||||
Basic and diluted | 40,715,540 | 40,715,540 | ||||||
Investor Contact:schichester@sterlingconsolidated.com
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SOURCE Sterling Consolidated Corp.
