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$STCC..09c Q2/17 Results..company looking forward to substantial upturn for the third and fourth quarters.

Comparison for the three months ended June 30, 2017 and 2016

Net Revenue

Net revenue increased by approximately $13,344 or approximately 0.86%, from $1,556,358 for the three months ended June 30, 2016 to $ 1,569,702 for the three months ended June 30, 2017. This minor increase was due primarily to a slowdown of overall revenue growth carried over from the first quarter of 2017.

Total Cost of Sales

Cost of sales increased by approximately $70,524 or approximately 6.3%, from $1,114,862 for the three months ended June 30, 2016 to $1,185,386 for the three months ended June 30, 2017. This increase was due primarily to rising cost of o-rings purchased in the second quarter of 2017.

Gross profit

Gross profit decreased by approximately $57,180 or approximately 13.0 %, from $ 441,496 for the three months ended June 30, 2016 to $384,316 for the three months ended June 30, 2017. This decrease was due primarily to relatively flat sales and the above described increase in cost of goods sold and an increased cost of services in the Company’s freight business.

Net Income

As a result of the above factors, the Company showed a net loss of $14,458 for the three months ended June 30, 2017, as compared to a net income of $685 for the three months ended June 30, 2016. This decrease of $15,143 or approximately 2,211 % is primarily attributed to the above described increase in cost of goods and cost of services.

Comparison for the six months ended June 30, 2017 and 2016

Revenue

Revenue increased by approximately $314,577 or approximately 10.4%, from $3,038,469 for the six months ended June 30, 2016 to $3,353,046 for the six months ended June 30, 2016. This increase is due to increased demand for o-rings in the industrial sector.

Total Cost of Sales

Cost of sales increased by $188,855.3 or approximately 8.5%, from $2,216,518 for the six months ended June 30, 2016 to $2,405,373 for the six months ended June 30, 2017. The increase in cost of sales was attributed to a commensurate increase in sales and the factors noted above.

Gross profit

Gross profit increased approximately $125,722, or approximately 15.3%, from $821,951 for the six months ended June 30, 2016 to $947,673 for the six months ended June 30, 2017. This increase can be attributed to the above described changes in revenue and cost of sales.

Net Loss

As a result of the above described changes in revenue and cost of sales, our net income was $74,501 for the six months ended June 30, 2017, as compared to a net loss of $73,232 for the six months ended June 30, 2016. This was an increase of $147,733 or approximately 202 %. This increase can be explained by increased sales coupled with reduced general and administrative costs attributed to a reduction in professional fees.

Liquidity and Capital Resources

Cash requirements for, but not limited to, working capital, capital expenditures, and debt repayments have been funded from cash balances on hand, revolver borrowings, loans from officers, notes payable and cash generated from operations.

On June 30, 2017, we had cash and cash equivalents of approximately $22,348 as compared to approximately $6,814 as of December 31, 2016, representing an increase of $15,534. This increase can be explained by net cash provided by operating activities of $73,998 primarily attributed to an increase in accounts receivable of $234,409 and an increase of inventory of $104,323 offset by an increase in accounts payable of $285,536; net cash flows used in investing activities of $19,840 from the purchase of fixed assets; and net cash used in financing activities of $38,624 primarily attributed to a net borrowing of a bank line of credit in the amount of $30,000 offset by a paydown notes payable of $57,322 and a paydown of related party notes payable of $11,302. On June 30, 2017, our working capital was approximately $1,539,888.

The cash flow used in operating activities increased from net cash used of $99,709 for the quarter ended June 30, 2016 to net cash provided of $73,997 for the quarter ended June 30, 2017. This increase of $173,707 is primarily attributed to an increase of net income.

The cash flow from investing activities decreased from cash provided of $562,237 for the quarter ended June 30, 2016 to net cash used of $19,840. This decrease is attributed to the fact that in the 1 st quarter of 2016, the Company realized cash on the sale of its Cliffwood Beech property in the amount of $562,237.

The cash flow from financing activities increased from net cash used of $431,724 for the quarter ended June 30, 2016 to net cash used of $38,624 for the quarter ended June 30, 2017. This is primarily attributed to the fact that the Company made a large paydown on the bank line of credit in the amount of $411,000 in the first quarter of 2016 from its proceeds on the sale of its Cliffwood Beech property.

Total stockholders' equity Q2/17, 843,670 - Q2/16, 769,169
As of August 18, 2017 there were 40,715,540 shares of common stock, $0.001 par value issued and outstanding.

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Latest News

Sterling Consolidated Corp's Subsidiary Signs Huge in a Partnership with Amazon

Neptune, NJ -- (ReleaseWire) -- 06/21/2017 -- Sterling Seal & Supply, Inc., a subsidiary of Sterling Consolidated Corp. (OTCMKTS:STCC), is now a Business, Industrial and Scientific Supply Partner with Amazon. This BISS Division of Amazon will enable Sterling Seal & Supply, Inc. the opportunity to have its name seen on 65,000 items worldwide through Amazon.
Since June 1, 2017 the company has been shipping products every day. Our staff has been shipping to retail as well as to Amazon's warehouse locations. This partnership gives Sterling Seal & Supply, Inc. the potential to be a leader in supplying parts to the retail market to go along with the company's industrial market.
Since going public Sterling Consolidated has incurred 4 years in losses. The company has written down the bad debts, reduced the line of credits and has cut the operating costs drastically. This has resulted in turning the company around to profitability. The first quarter this year the company showed a net profit of over $80,000 and so far this year is looking very profitable even in the second quarter. The company sales are up, shipments are up and cash flow has improved where there is no longer a credit problem with any of the company suppliers.
The company is looking forward to a substantial upturn for the third and fourth quarters.
https://www.otcmarkets.com/stock/STCC/news

Business Description

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.

Sterling Consolidated Corp
Outstanding Shares 41,429,040 a/o Jul 31, 2017
Float 5,750,333 a/o Mar 04, 2015

Sterling Seal & Supply
http://www.sterlingseal.com/aboutus
https://www.otcmarkets.com/stock/STCC/profile