NEPTUNE, N.J., April 23, 2015 (GLOBE NEWSWIRE) -- Sterling Consolidated Corp. (OTCBB:STCC), a leading supplier of hydraulic and pneumatic seals to the automotive and industrial marketplace, announces annual revenues and earnings as disclosed in its December 31, 2014 10-K.
Key Highlights in 2014:
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Revenues of $6.827 million are up $642K, or 10.4%, for the year ended December 31, 2014 compared to the year ended December 31, 2013.
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EBITDA (Earnings before Interest, Taxes, Depreciation and Amortization) of $485K is up $407K, or 521% for the year ended December 31, 2014 compared to the year ended December 31, 2013.
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Operating income of $306K is up $341K, or 974%, for the year ended December 31, 2014 compared to the year ended December 31, 2013.
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Net income of $43K is up $151K, or 140%, for the year ended December 31, 2014 compared to the year ended December 31, 2013.
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Completed acquisition of RG Sales Inc. in western Pennsylvania on April 1, 2014. This is the Company's second acquisition since going public in February 2013.
- Invested and implemented NetSuite's cloud based, ERP and general ledger software to upgrade the Company's inventory management, accounting and sales management capabilities.
The revenue growth is primarily attributed to increase in incremental sales from the Company's recent acquisitions of RG Sales Inc. and Superior Seals Inc. in North Carolina.
The operating income and net income growth is largely attributed to incremental sales from acquisitions coupled with a lesser increase in cost of goods sold due to more efficient purchasing and economies of scale with existing labor personnel.
Darren DeRosa, Chief Executive Officer of Sterling Consolidated, commented, "We are excited that we were able to grow the sales by more than 10% this year and produce a healthy EBITDA for our shareholders. The two acquisitions and our investment in ERP platform were major accomplishments for our firm. The software is so powerful that it will assimilate future acquisitions into our existing infrastructure seamlessly. We continue to seek out attractive acquisition targets in the marketplace to accelerate the growth of Sterling."
To be added to the Sterling Consolidated investor email list, please email schichester@sterlingconsolidated.com with "STCC" in the subject line.
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 Years Ended | ||
| December 31, | ||
| 2014 | 2013 | |
| Revenues | ||
| O-rings and rubber product sales | $ 6,709,867 | $ 6,045,446 |
| Freight services | 117,553 | 139,702 |
| Total revenues | 6,827,420 | 6,185,148 |
| Cost of sales | ||
| Cost of goods | 4,644,616 | 4,269,455 |
| Cost of services | 203,098 | 215,761 |
| Total cost of sales | 4,847,714 | 4,485,216 |
| Gross profit | 1,979,706 | 1,699,932 |
| Operating expenses | ||
| Sales and marketing | 208,209 | 212,661 |
| General and administrative | 1,465,228 | 1,522,162 |
| Total operating expenses | 1,673,437 | 1,734,823 |
| Operating income (loss) | 306,269 | (34,891) |
| Other income and expense | ||
| Other income (expense) | 22,806 | (7,135) |
| Interest expense | (152,173) | (123,307) |
| Total other expense | (129,367) | (130,442) |
| Income (loss) before provision for income taxes | 176,902 | (165,333) |
| Provision for income taxes | 133,722 | (67,539) |
| Net income (loss) | 43,180 | (97,794) |
| Other comprehensive income | ||
| Unrealized gain/(loss) on interest rate swap contract | -- | (10,076) |
| Comprehensive income | $ 43,180 | $ (107,870) |
| Net income per share of common stock: | ||
| Basic and diluted | $ 0.00 | $ (0.00) |
| Weighted average number of shares outstanding | ||
| Basic and diluted | 39,339,373 | 37,284,725 |