LOS ANGELES - Nova LifeStyle, Inc. (nasdaq-gm:'NVFY'), a U.S.-based fast growing, innovative designer and manufacturer of modern LifeStyle furniture, today announced financial results for the fourth quarter and fiscal year ended December 31, 2013.

2013 Accomplishments

Recent 2014 Accomplishments

Tawny Lam, President of Nova LifeStyle, Inc. stated, "2013 was a year of major accomplishments for our Company as we made further progress on our key growth initiatives. Specifically, we continued our innovation as we further incorporated current lifestyle trends into our product offering, introduced NOVA QwiK!, and expanded our product offering of living room and dining room pieces. We expanded our global distribution channels through the acquisition of Bright Swallow, adding complementary product lines and geographical reach, as well as our supply agreement with IKEA and new relationships in England and Australia. We also expanded our production capacity to accommodate current demand for our products as well as to support future growth. We are very excited about the strong growth opportunities that we believe exist for Nova LifeStyle, and I am confident that the investments we made in our business in fiscal 2013 have provided us with a solid foundation, allowing us to execute our long-term growth initiatives and capitalize on those opportunities."

Ms. Lam continued, "In 2014 we remain focused on continued product innovation as well as expanding our presence globally through further penetration of existing channels of distribution and the addition of new ones. This includes the development of our own e-commerce platform aimed at the China market, which we believe will help diversify our customer base and end-user markets, and increase profitability in the long-term. We expect to benefit from many of the new supply agreements we have in place both in the near and the longer-term as well as from initiatives to improve profit margins, and expect to increase our net income in fiscal year 2014 over fiscal 2013. Our recent listing on NASDAQ will also provide us with greater visibility in the investment community as we expand our overall global market presence."

For the fourth quarter ended December 31, 2013:

For the fiscal year ended December 31, 2013:

About Nova LifeStyle, Inc.

Nova LifeStyle, Inc., a NASDAQ Global Markets Exchange listed company headquartered in California, is a fast growing, innovative designer and manufacturer of modern LifeStyle furniture; primarily sofas, dining rooms, cabinets, office furniture and related components, bedrooms, and various accessories in matching collections. Nova's products are made in the US, Europe, and Asia and include LifeStyle brands such as Diamond Sofa, Colorful World, Giorgio Mobili, Nova QwiK, and Bright Swallow International. Nova's products feature urban contemporary styles that integrate comfort and functionality incorporating upscale luxury designs appealing to LifeStyle-conscious middle and upper middle-income consumers in the U.S., China, Europe, and elsewhere in the world. To learn more about Nova LifeStyle, Inc., please visit our website at www.NovaLifeStyle.com .

 

NOVA LIFESTYLE, INC. AND SUBSIDIARIES
2013 2012
Assets
Current Assets
Cash and cash equivalents $            2,323,338 $              3,150,492
Accounts receivable, net 27,967,831 22,387,517
Advance to suppliers 3,535,100 3,105,584
Inventories 3,353,634 3,240,721
Prepaid expenses and other receivables 648,620 179,713
Income tax receivable 38,654 --
Deferred tax asset 243,682 157,423
Total Current Assets       38,110,859 32,221,450
Noncurrent Assets
 Heritage and cultural assets 132,993 129,002
Plant, property and equipment, net 13,146,638 8,551,114
Construction in progress 1,024,645 5,374,056
Acquisition deposit -- 3,000,000
Lease deposit 103,122 43,029
Goodwill 1,027,124 218,606
Intangible assets, net 6,976,991 1,216,092
 Deferred tax asset, net 44,334 --
Total Noncurrent Assets 22,455,847 18,531,899
Total Assets       $          60,566,706 $            50,753,349
Liabilities and Stockholders' Equity
Current Liabilities
Accounts payable  $            6,895,254 $              7,123,534
Line of credit 820,089 6,529,178
Advance from customers 43,077 257,191
Accrued liabilities and other payables 1,458,157 1,495,835
Taxes payable - 272,159
Total Current Liabilities 9,216,577 15,677,897
Noncurrent Liabilities
 Line of credit 6,602,258 -
Deferred rent payable 74,152 55,902
Deferred tax liability, net -- 45,370
Income tax payable 5,944,424 4,608,592
Total Noncurrent Liabilities 12,620,834 4,709,864
Total Liabilities 21,837,411 20,387,761
Contingencies and Commitments
Stockholders' Equity
Common stock, $0.001 par value; 75,000,000 shares authorized, 19,206,024 and 18,536,567 shares issued and outstanding as of December 31, 2013 and 2012 19,206 18,537
Additional paid-in capital 20,977,058 19,107,845
Subscription receivable (750,000) (1,950,000)
Statutory reserves 6,241 6,241
Accumulated other comprehensive income  2,603,010 2,176,646
Retained earnings  15,873,780 11,006,319
Total Stockholders' Equity 38,729,295 30,365,588
Total Liabilities and Stockholders' Equity $          60,566,706 $            50,753,349

 

 

NOVA LIFESTYLE, INC. AND SUBSIDIARIES
Years Ended December 31,
2013 2012
Net Sales  $                      78,356,493 $                  66,297,498
Cost of Sales 62,990,736 51,572,076
Gross Profit 15,365,757 14,725,422
Operating Expenses
Selling expenses 3,345,903 3,158,191
General and administrative expenses 5,921,091 4,788,947
Loss on disposal of plant, property and equipment 37,879 123,675
Total Operating Expenses 9,304,873 8,070,813
Income From Operations 6,060,884 6,654,609
Other Income (Expenses)
Non-operating expense (217,221) 50,915
Foreign exchange transaction gain  (71,296) 47
Interest expense (292,291) (188,868)
Financial expense (13,273) (11,166)
Total Other Expenses, Net (594,081) (149,072)
Income Before Income Tax 5,466,803 6,505,537
Income Tax Expense 599,342 1,071,654
Net Income 4,867,461 5,433,883
Other Comprehensive Income
Foreign currency translation 426,364 37,672
Comprehensive Income $                        5,293,825 $                    5,471,555
Basic weighted average shares outstanding 18,876,052 18,530,591
Diluted weighted average shares outstanding 19,122,386 18,681,448
Basic net earnings per share  $                                 0.26 $                             0.29
Diluted net earnings per share  $                                 0.25 $                             0.29

 

 

NOVA LIFESTYLE, INC. AND SUBSIDIARIES
2013 2012
Cash Flows From Operating Activities
 Net Income  $                4,867,461 $                  5,433,883
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization 1,324,881 764,596
Deferred tax expense (benefit) (171,938) 163,370
Stock compensation expense  581,640 57,292
Warrants expense 76,629 --
Loss on fixed assets disposal 37,879 123,675
Bad debt allowance 52,188 225,897
Changes in operating assets and liabilities:
Accounts receivable (3,155,909) (3,624,756)
Accounts receivable - related party -- 28,289
Advance to suppliers (411,706) (2,753,569)
Inventories (53,035) (1,386,750)
Other current assets (106,268) (32,900)
Accounts payable  (3,008,918) 351,846
Advance from customers (216,523) 165,291
Accrued expenses and other payables (181,904) 658,371
Deferred rent payable 16,209 (3,178)
Taxes payable 392,076 655,505
Net Cash Provided by  Operating Activities 42,762 826,862
Cash Flows From Investing Activities
     Deposit on acquisition of Bright Swallow Int'l Group Ltd. -- (3,000,000)
     Acquisition of Bright Swallow (3,500,000) --
     Cash acquired from acquisition of Bright Swallow  342,029 --
     Cash received from fixed assets disposal 1,350 8,363
    Acquisition of intangible asset -- (538,614)
    Purchase of property and equipment (502,081) (651,805)
    Construction in progress (317,252) (4,626,107)
Net Cash Used in Investing Activities (3,975,954) (8,808,163)
Cash Flows From Financing Activities
      Repayment to related parties (1,987) --
      Proceeds from subscription receivable 1,200,000 --
      Proceed from line of credit and bank loan 18,344,000 6,522,139
      Repayment to line of credit and bank loan (17,485,192) --
    Cash proceeds from private placement, net -- 1,753,849
    Due from factor -- 203,351
    Cash received from warrants exercised 1,021,614 142,600
Net Cash Provided by Financing Activities $                3,078,435 $                  8,621,939
Effect of Exchange Rate Changes on Cash and Cash Equivalents    
Net (decrease) / increase in cash and cash equivalents (827,154) 645,313
Cash and cash equivalents, beginning of year 3,150,492 2,505,179
Cash and cash equivalents, ending of year $                2,323,338 $                  3,150,492
Supplemental Disclosure of Cash Flow Information
Cash paid during the year for:
Income tax payments $                   364,053 $                     269,316
        Interest expense $                   267,019 $                     121,403
Supplemental Disclosure of Non-Cash Financing Activities
      Construction deposit transfer to construction in progress $                             -- $                     633,212
      Construction in progress transfer to fixed assets $                4,747,665 $                               --

 

Source: Nova LifeStyle, Inc.

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