News Column

Sterling Consolidated Announces First Quarter 2014 Results

June 2, 2014

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 EndedFor the Nine Months Ended
 September 30,September 30,
 2013201220132012
         
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,
 20132012
 (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

Source: Sterling Consolidated Corporation


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