LOS ANGELES, Aug. 12, 2015 /PRNewswire/ -- Nova
LifeStyle, Inc. (NASDAQ: NVFY), a U.S. based fast-growing,
innovative designer, manufacturer and distributor of modern
LifeStyle furniture, today announced financial results for the
second quarter and six months ended June 30,
2015.
Second Quarter 2015 Corporate and Financial
Highlights:
- Net sales were $29.2 million, an
increase of 13% compared to the prior year period.
- Gross profit was $5.2 million, an
increase of 4% compared to the prior year period.
- Gross margin was 18%, compared to 19% in the prior year
period.
- The Company reported a change in fair value of warrant
liability of ($1.7 million), which
impacted net income for the second quarter despite a 14.0% increase
in operating income.
- Net loss was $0.1 million, or
$0.01 per diluted share based on 22.0
million shares outstanding, compared to net income of $3.4 million or $0.16 per diluted share based on 20.5 million
shares outstanding in the prior year period.
- Adjusted net income, which excludes the change in fair value of
warrant liability, increased to $1.6
million, or adjusted diluted EPS of $0.07 per share, compared to $1.1 million, or adjusted diluted EPS of
$0.06 per share, in the prior year
period.
- In April 2015, the Company
completed a $4.0 million registered
direct placement of common stock.
Management Commentary
Jeffrey Wong, CEO of Nova
LifeStyle, stated, "We were pleased to report double-digit
percentage increases in sales during the period, largely as a
result of accelerating demand for our products in North
America. The sales and marketing efforts that we have
implemented over the past three years have continued to drive
awareness in the industry, and we are exploring new potential
wholesale markets. We also were pleased to report favorable
growth in our China market, where
we continue to roll out a larger brand recognition initiative that
will take time to develop. While these enhanced marketing
efforts have affected our margin in the interim, we believe they
will lead to continued strong growth in the quarters to come.
We opened additional franchise stores during the period and as we
enter the second half of the year are embracing new methods of
technology to improve our customers' overall experience. Our
goal remains to be at the forefront of both quality and innovation
in our design and service, which we feel helps to define our
competitive advantage over other multi-national peers in the home
furnishing industry."
Mr. Wong concluded, "We continue to maintain a strong financial
position during a period of robust expansion. Our recent
financing simplified our capital structure, and we remain focused
on properly utilizing our capital to grow in a sustainable manner,
improving our receivables, and maintaining a lean operating
infrastructure. We made progress in this regard during the
second quarter and expect continued improvements throughout the
second half of 2015."
Operational Overview
Product Category
Nova LifeStyle's largest selling product categories in the three
months ended June 30, 2015 and 2014
were sofas, cabinets and dining tables, which accounted for
approximately 31%, 15% and 16% of sales, respectively, for the
three months ended June 30, 2015.
In the next several months, the Company intends to enrich its
product lines to include a bedroom series, which would include
beds, bed side tables, mattresses (which could be imported or
purchased in China) and bedding
sets including bed sheets, pillowcases, quilt covers, and other
items (which can be purchased within China).
Geographic Breakdown
North America
Sales to North America were
$20.3 million in the three months
ended June 30, 2015, an increase of
38% from $14.7 million in the same
period of 2014, driven by increased marketing efforts in the U.S.
markets. As a percentage of total revenue, North American
sales remain the largest for Nova LifeStyle at 69.1%.
China
In China, overall sales
increased by 3% to $4.8 million in
the three months ended June 30, 2015,
as compared to $4.7 million in the
same period of 2014.
Europe
Sales to Europe were
$3.1 million in the three months
ended June 30, 2015, a decrease of 5%
from $3.3 million in the same period
of 2014 as a result of the slow European economy.
Geographical distribution of sales is set out as
follows:
|
(US$ in
millions)
|
|
For six months
ended June 30,
|
|
For three months
ended June 30
|
|
|
2015
|
2014
|
|
2015
|
2014
|
|
|
Sales
|
% of Total
|
Sales
|
% of Total
|
|
Sales
|
% of Total
|
Sales
|
% of Total
|
|
China*
|
|
$ 8.5
|
16.7%
|
$
7.7
|
17.7%
|
|
$
4.8
|
16.4%
|
$
4.7
|
18.0%
|
|
North
America
|
|
35.4
|
69.1%
|
25.9
|
59.1%
|
|
20.3
|
69.5%
|
14.7
|
56.6%
|
|
Europe
|
|
5.6
|
10.9%
|
6.2
|
14.2%
|
|
3.1
|
10.7%
|
3.3
|
12.7%
|
|
Asia
Pacific**
|
|
1.6
|
3.1%
|
3.9
|
8.8%
|
|
1.0
|
3.3%
|
3.2
|
12.4%
|
|
Others
|
|
0.1
|
0.2%
|
0.1
|
0.2%
|
|
0.0***
|
0.1%
|
0.0***
|
0.3%
|
|
Total
|
|
$ 51.2
|
100.0%
|
$
43.8
|
100.0%
|
|
$
29.2
|
100.0%
|
$
25.9
|
100.0%
|
|
* excluding
Hong Kong
** excluding
China
*** sales for 2015
second quarter in other countries are less than $0.1
million
|
Financial Results for the Second Quarter Ended June 30, 2015
- Net sales for the three months ended June 30, 2015, were $29.2
million, an increase of 13% from $25.9 million in the same period of 2014; this
increase in net sales resulted primarily from a 13% increase in
average selling price with a 2% increase in sales volume.
- Gross profit increased 4% to $5.2
million in the three months ended June 30, 2015, compared to $5.0 million in the same period of 2014. The
increase in gross profit resulted primarily from increase of net
sales. Gross margin as a percent of net sales was 18% compared to
19% in the same period in 2014.
- Operating income was $1.8
million, an increase of 14% from to $1.5 million in the same period of 2014.
- Total other loss, net, was $1.8
million in the three months ended June 30, 2015, compared with total other income,
net of $2.3 million in the same
period of 2014. The decrease in other income was due primarily to a
negative change in fair value of warrant liability of ($1.7 million) in the three months ended
June 30, 2015 compared to a positive
change of $2.2 million in the prior
year period.
- As a result of this change in fair value of warrant liability,
the Company reported a net loss for the period of $0.1 million, or $0.01 per diluted earnings per share, in the
three months ended June 30, 2015,
compared to net income of $3.4
million, or $0.16 per diluted
earnings per share for the same period of 2014.
- Adjusted net income, which excludes the change in fair value of
warrant liability, increased to $1.6
million, or adjusted diluted EPS of $0.07 per share, compared to $1.1 million, or adjusted diluted EPS of
$0.06 per share, in the prior year
period. A full table reconciling adjusted net income, a non-GAAP
(Generally Accepted Accounting Principles) financial measure, to
the appropriate GAAP measure is included with the Company's
financial information below.
Balance Sheet and Cash Flow Highlights
- Cash and cash equivalents were $1.3
million at June 30, 2015, as
compared to $1.2 million as of
December 31, 2014.
- Working capital at June 30, 2015
was $42.6 million, as compared to
$34.5 million at December 31, 2014.
The following is a summary of cash provided by or used in each
of the indicated types of activities during the six months ended
June 30, 2015 and 2014:
|
|
2015
|
|
2014
|
|
Cash (used in)
provided by:
|
|
|
|
|
|
Operating
activities
|
|
$
|
(4,122,012)
|
|
$
|
(6,066,266)
|
|
Investing
activities
|
|
|
(1,063,304)
|
|
|
(2,620,415)
|
|
Financing
activities
|
|
|
5,290,923
|
|
|
8,870,519
|
Net cash used in operating activities was $4.1 million in the six months ended June 30, 2015, a decrease of cash outflow of
$1.9 million from $6.1 million of cash used in operating activities
in the same period of 2014.
The decrease in cash outflow was attributable primarily to
improved timely collection on accounts receivables.
Conference Call Details
|
Date /
Time:
|
Wednesday, August 12,
2015 at 10:00 a.m. ET
|
|
Participant Dial-In
Numbers
|
|
|
(United
States):
|
877-704-4209
|
|
(International):
|
201-689-8024
|
|
(China):
|
+86
40-0120-2840
|
Webcast
To listen to the live webcast, please go to at
www.NovaLifeStyle.com and click on the conference call link, or
click: Nova LifeStyle 2015 Second Quarter Webcast. This webcast
will be archived and accessible through the Company's website for
approximately 30 days following the call.
About Nova LifeStyle
Nova LifeStyle, Inc., a NASDAQ Global Markets Exchange listed
company headquartered in California, is a fast growing, innovative
designer, manufacturer and distributor 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 or download the NVFY IRapp from
the investor page.
Use of Non-GAAP Measures
The Company has supplemented its reported GAAP (generally
accepted accounting principles) financial information with non-GAAP
measures. Non-GAAP (adjusted) net income excludes change in fair
value of warrant liability. The presentation of this additional
information is not meant to be considered in isolation or as a
substitute for results prepared in accordance with U.S. GAAP. The
Company believes these non-GAAP measures are useful to investors as
they provide a basis for evaluating the Company's operating results
in the ordinary course of its operations.
These non-GAAP measures are not based on any comprehensive set
of accounting rules or principles. The Company believes that
non-GAAP measures have limitations in that they do not reflect all
of the amounts associated with its results of operations as
determined in accordance with U.S. GAAP and that these measures
should only be used to evaluate the Company's results of operations
in conjunction with, and not in lieu of, the corresponding GAAP
measures. These non-GAAP financial measures are reconciled in the
accompanying tables to the most directly comparable measures as
reported in accordance with GAAP.
Safe Harbor Statement
All statements in this press release that are not historical are
forward-looking statements made pursuant to the "safe harbor"
provisions of the Private Securities Litigation Reform Act of 1995.
There can be no assurance that actual results will not differ from
the company's expectations. You are cautioned not to place undue
reliance on any forward-looking statements in this press release as
they reflect Nova's current expectations with respect to future
events and are subject to risks and uncertainties that may cause
actual results to differ materially from those contemplated.
Potential risks and uncertainties include, but are not limited to,
the risks described in Nova's filings with the Securities and
Exchange Commission.
Company Contact:
Investor Relations:
The Equity Group Inc.
In U.S.
Adam Prior, Senior Vice
President
+1 (212) 836-9606
aprior@equityny.com
In China
Katherine Yao, Senior Associate
+86-10-6587-6435
kyao@equityny.com
|
NOVA LIFESTYLE,
INC. AND SUBSIDIARIES
CONDENSED
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE
INCOME
FOR THE SIX AND
THREE MONTHS ENDED JUNE 30, 2015 AND 2014
(UNAUDITED)
|
|
|
|
|
|
|
|
Six Months Ended
June 30,
|
|
Three Months Ended
June 30,
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
Net
Sales
|
|
$
|
51,210,707
|
|
$
|
43,816,110
|
|
$
|
29,178,229
|
|
$
|
25,933,218
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
Sales
|
|
|
41,952,403
|
|
|
35,591,560
|
|
|
23,991,956
|
|
|
20,961,543
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
Profit
|
|
|
9,258,304
|
|
|
8,224,550
|
|
|
5,186,273
|
|
|
4,971,675
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling
expenses
|
|
|
2,320,636
|
|
|
1,623,671
|
|
|
1,054,780
|
|
|
888,326
|
|
General and
administrative expenses
|
|
|
4,281,517
|
|
|
3,670,726
|
|
|
2,370,629
|
|
|
1,708,097
|
|
Goodwill
impairment
|
|
|
--
|
|
|
808,518
|
|
|
--
|
|
|
808,518
|
|
Loss on disposal fixed
assets
|
|
|
--
|
|
|
22,526
|
|
|
--
|
|
|
22,526
|
|
|
|
|
|
|
|
|
|
|
|
|
.
|
|
Total Operating
Expenses
|
|
|
6,602,153
|
|
|
6,125,441
|
|
|
3,425,409
|
|
|
3,427,467
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income From
Operations
|
|
|
2,656,151
|
|
|
2,099,109
|
|
|
1,760,864
|
|
|
1,544,208
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Income
(Expenses)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-operating income
(expenses), net
|
|
|
25,155
|
|
|
167,001
|
|
|
(4,421)
|
|
|
147,343
|
|
Foreign exchange
transaction gain
|
|
|
34,065
|
|
|
62,224
|
|
|
4,383
|
|
|
70,867
|
|
Change in fair value
of warrant liability
|
|
|
(749,452)
|
|
|
2,210,913
|
|
|
(1,722,097)
|
|
|
2,210,913
|
|
Interest
expense
|
|
|
(190,520)
|
|
|
(139,465)
|
|
|
(99,610)
|
|
|
(76,014)
|
|
Financial
expense
|
|
|
(30,537)
|
|
|
(69,089)
|
|
|
(15,329)
|
|
|
(42,861)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Other
Income, Net
|
|
|
(911,289)
|
|
|
2,231,584
|
|
|
(1,837,074)
|
|
|
2,310,248
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income Before
Income Tax
|
|
|
1,744,862
|
|
|
4,330,693
|
|
|
(76,210)
|
|
|
3,854,456
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income Tax
Expense
|
|
|
259,528
|
|
|
674,486
|
|
|
63,319
|
|
|
501,801
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income
(Loss)
|
|
|
1,485,334
|
|
|
3,656,207
|
|
|
(139,529)
|
|
|
3,352,655
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
Comprehensive Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency
translation
|
|
|
13,553
|
|
|
(128,377)
|
|
|
82,211
|
|
|
3,122
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive
Income
|
|
$
|
1,498,887
|
|
$
|
3,527,830
|
|
$
|
(57,318)
|
|
$
|
3,355,777
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic weighted
average shares outstanding
|
|
|
21,456,546
|
|
|
19,879,336
|
|
|
21,995,008
|
|
|
20,404,360
|
|
Diluted weighted
average shares outstanding
|
|
|
21,456,546
|
|
|
20,036,396
|
|
|
21,995,008
|
|
|
20,508,436
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic net earnings
per share
|
|
$
|
0.07
|
|
$
|
0.18
|
|
$
|
(0.01)
|
|
$
|
0.16
|
|
Diluted net earnings
per share
|
|
$
|
0.07
|
|
$
|
0.18
|
|
$
|
(0.01)
|
|
$
|
0.16
|
|
NOVA LIFESTYLE,
INC. AND SUBSIDIARIES
CONDENSED
CONSOLIDATED BALANCE SHEETS
JUNE 30, 2015
(UNAUDITED) AND DECEMBER 31, 2014
|
|
|
|
|
|
|
|
June
30,
|
|
December
31,
|
|
|
2015
|
|
2014
|
|
|
(Unaudited)
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
Current
Assets
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
1,349,749
|
|
$
|
1,244,308
|
|
Accounts receivable,
net
|
|
|
46,191,843
|
|
|
42,971,510
|
|
Advance to
suppliers
|
|
|
6,316,305
|
|
|
8,104,312
|
|
Inventories
|
|
|
7,334,596
|
|
|
3,612,868
|
|
Prepaid expenses and
other receivables
|
|
|
1,387,879
|
|
|
641,208
|
|
Deferred tax
asset
|
|
|
118,915
|
|
|
118,866
|
|
|
|
|
|
|
|
|
Total Current
Assets
|
|
|
62,699,287
|
|
|
56,693,072
|
|
|
|
|
|
|
|
|
Noncurrent
Assets
|
|
|
|
|
|
|
|
Heritage and cultural
assets
|
|
|
132,630
|
|
|
132,513
|
|
Plant, property and
equipment, net
|
|
|
14,120,732
|
|
|
14,377,909
|
|
Construction in
progress
|
|
|
2,678,042
|
|
|
1,378,860
|
|
Lease
deposit
|
|
|
97,403
|
|
|
96,096
|
|
Deposits for equipment
and factory construction
|
|
|
414,777
|
|
|
1,264,551
|
|
Goodwill
|
|
|
218,606
|
|
|
218,606
|
|
Intangible assets,
net
|
|
|
6,446,830
|
|
|
6,493,726
|
|
|
|
|
|
|
|
|
Total Noncurrent
Assets
|
|
|
24,109,020
|
|
|
23,962,261
|
|
|
|
|
|
|
|
|
Total
Assets
|
|
$
|
86,808,307
|
|
$
|
80,655,333
|
|
|
|
|
|
|
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
|
|
|
|
|
|
Current
Liabilities
|
|
|
|
|
|
Accounts
payable
|
|
$
|
8,369,746
|
|
$
|
10,454,485
|
|
Line of
credit
|
|
|
9,241,157
|
|
|
7,592,879
|
|
Advance from
customers
|
|
|
138,755
|
|
|
123,673
|
|
Accrued liabilities
and other payables
|
|
|
2,333,552
|
|
|
2,470,284
|
|
Warrant derivative
liability
|
|
|
1,764
|
|
|
1,465,019
|
|
Taxes
payable
|
|
|
12,538
|
|
|
61,769
|
|
|
|
|
|
|
|
|
Total Current
Liabilities
|
|
|
20,097,512
|
|
|
22,168,109
|
|
|
|
|
|
|
|
|
Noncurrent
Liabilities
|
|
|
|
|
|
|
|
Deferred rent
payable
|
|
|
85,572
|
|
|
85,077
|
|
Deferred tax
liability
|
|
|
12,161
|
|
|
12,199
|
|
Income tax
payable
|
|
|
6,859,050
|
|
|
6,607,739
|
|
|
|
|
|
|
|
|
Total Noncurrent
Liabilities
|
|
|
6,956,783
|
|
|
6,705,015
|
|
|
|
|
|
|
|
|
Total
Liabilities
|
|
|
27,054,295
|
|
|
28,873,124
|
|
|
|
|
|
|
|
|
Contingencies and
Commitments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders'
Equity
|
|
|
|
|
|
|
|
Common stock, $0.001
par value; 75,000,000 shares authorized, 24,136,540 and 20,897,316 shares issued and
outstanding as of June 30, 2015
and December 31, 2015
|
|
|
24,137
|
|
|
20,897
|
|
Additional paid-in
capital
|
|
|
31,221,152
|
|
|
24,751,476
|
|
Statutory
reserves
|
|
|
6,241
|
|
|
6,241
|
|
Accumulated other
comprehensive income
|
|
|
2,588,720
|
|
|
2,575,167
|
|
Retained
earnings
|
|
|
25,913,762
|
|
|
24,428,428
|
|
|
|
|
|
|
|
|
Total
Stockholders' Equity
|
|
|
59,754,012
|
|
|
51,782,209
|
|
|
|
|
|
|
|
|
Total Liabilities
and Stockholders' Equity
|
|
$
|
86,808,307
|
|
$
|
80,655,333
|
|
NOVA LIFESTYLE,
INC. AND SUBSIDIARIES
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS
ENDED JUNE 30, 2015 AND 2014 (UNAUDITED)
|
|
|
|
|
|
Six Months Ended
June 30,
|
|
|
2015
|
|
2014
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
|
|
|
Cash Flows From
Operating Activities
|
|
|
|
|
|
Net
Income
|
|
$
|
1,485,334
|
|
$
|
3,656,207
|
|
Adjustments to
reconcile net income to net cash provided by (used in) operating activities:
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
933,786
|
|
|
829,356
|
|
Stock compensation
expense
|
|
|
800,540
|
|
|
264,275
|
|
Warrants
expense
|
|
|
--
|
|
|
76,629
|
|
Change in fair value
of warrant liability
|
|
|
749,452
|
|
|
(2,210,913)
|
|
Changes in bad debt
allowance
|
|
|
37,698
|
|
|
36,551
|
|
Goodwill
impairment
|
|
|
--
|
|
|
808,518
|
|
Loss on disposal of
fixed assets
|
|
|
--
|
|
|
22,526
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
|
|
Accounts
receivable
|
|
|
(3,252,276)
|
|
|
(5,223,478)
|
|
Advance to
suppliers
|
|
|
1,789,622
|
|
|
(4,728,626)
|
|
Inventories
|
|
|
(3,718,252)
|
|
|
(1,389,265)
|
|
Other current
assets
|
|
|
(933,145)
|
|
|
(173,852)
|
|
Accounts
payable
|
|
|
(2,089,218)
|
|
|
1,084,988
|
|
Advance from
customers
|
|
|
14,954
|
|
|
115,672
|
|
Accrued expenses and
other payables
|
|
|
(138,425)
|
|
|
107,909
|
|
Deferred rent
payable
|
|
|
419
|
|
|
1,282
|
|
Taxes
payable
|
|
|
197,499
|
|
|
655,955
|
|
|
|
|
|
|
|
|
Net Cash Used in
Operating Activities
|
|
|
(4,122,012)
|
|
|
(6,066,266)
|
|
|
|
|
|
|
|
|
Cash Flows From
Investing Activities
|
|
|
|
|
|
|
|
Deposit on plant
construction and website design
|
|
|
--
|
|
|
(1,387,704)
|
|
Payment for land
compensation fee and occupancy tax
|
|
|
(193,501)
|
|
|
--
|
|
Purchase of property
and equipment
|
|
|
(420,020)
|
|
|
(1,243,033)
|
|
Deposits for
equipment
|
|
|
(46,144)
|
|
|
--
|
|
Cash received from
disposition of fixed assets
|
|
|
--
|
|
|
11,998
|
|
Construction in
progress
|
|
|
(400,639)
|
|
|
(1,676)
|
|
|
|
|
|
|
|
|
Net Cash Used in
Investing Activities
|
|
|
(1,063,304)
|
|
|
(2,620,415)
|
|
|
|
|
|
|
|
|
Cash Flows From
Financing Activities
|
|
|
|
|
|
|
|
Proceeds from line of
credit and bank loan
|
|
|
20,023,719
|
|
|
15,117,000)
|
|
Repayment to line of
credit and bank loan
|
|
|
(18,377,798)
|
|
|
(15,584,322)
|
|
Proceeds from
subscription receivable
|
|
|
--
|
|
|
750,000
|
|
Cash received from
warrants exercised
|
|
|
--
|
|
|
448,841
|
|
|
|
|
|
|
|
|
Proceeds from equity
financing, net of expenses of $355,000
|
|
|
3,645,002
|
|
|
8,139,000
|
|
|
|
|
|
|
|
|
Net Cash Provided
by Financing Activities
|
|
$
|
5,290,923
|
|
$
|
8,870,519
|
|
NOVA LIFESTYLE,
INC. AND SUBSIDIARIES
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED)
FOR THE THREE
MONTHS ENDED JUNE 30, 2015 AND 2014 (UNAUDITED)
|
|
|
|
|
|
Six Months Ended
June 30,
|
|
|
2015
|
|
2014
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
Effect of Exchange
Rate Changes on
Cash and
Cash Equivalents
|
|
$
|
(166)
|
|
$
|
19,752
|
|
|
|
|
|
|
|
|
Net increase in
cash and cash equivalents
|
|
|
105,441
|
|
|
203,590
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents, beginning of period
|
|
|
1,244,308
|
|
|
2,323,338
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents, ending of period
|
|
$
|
1,349,749
|
|
$
|
2,526,928
|
|
|
|
|
|
|
|
|
Supplemental
Disclosure of Cash Flow Information
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash paid during the
year for:
|
|
|
|
|
|
|
|
Income tax
payments
|
|
$
|
62,000
|
|
$
|
21,580
|
|
Interest
expense
|
|
$
|
146,783
|
|
$
|
147,780
|
|
|
|
|
|
|
|
|
Supplemental
Disclosure of Non-Cash Financing Activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposit on plant
construction and website design transfer to construction in
progress
|
|
$
|
862,726
|
|
$
|
--
|
|
Construction in
progress transfer to fixed assets
|
|
$
|
--
|
|
$
|
1,021,111
|
|
Issuance of common
stock in exchange of surrender and termination of
warrants
|
|
$
|
2,212,707
|
|
$
|
--
|
|
NOVA LIFESTYLE,
INC. AND SUBSIDIARIES
RECONCILIATION OF
NON-GAAP FINANCIAL MEASURES (Unaudited)
(Stated in US
Dollars)
|
|
|
Reconciliation of
Net Income to Non-GAAP Adjusted Net Income
|
|
|
|
|
|
|
|
|
|
|
|
Six months
ended
|
|
Three months
ended
|
|
June
30,
|
June
30,
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
Net income
(loss)
|
$ 1,485,334
|
|
$ 3,656,207
|
|
$ (139,529)
|
|
$ 3,352,655
|
|
Excluding: Change of
fair value of warrant liability
|
(749,452)
|
|
2,210,913
|
|
(1,722,097)
|
|
2,210,913
|
|
Non-GAAP adjusted net
income
|
$ 2,234,786
|
|
$ 1,445,294
|
|
$ 1,582,568
|
|
$ 1,141,742
|
|
|
|
|
|
|
|
|
|
Basic net earnings
(loss) per share
|
$
0.07
|
|
$
0.18
|
|
$
(0.01)
|
|
$
0.16
|
|
Excluding: Change of
fair value of warrant liability
|
0.03
|
|
0.11
|
|
0.08
|
|
0.11
|
|
Non-GAAP basic net
earnings per share
|
$
0.10
|
|
$
0.07
|
|
$
0.07
|
|
$
0.05
|
|
|
|
|
|
|
|
|
|
Diluted net earnings
per share
|
$
0.17
|
|
$
0.18
|
|
$
(0.01)
|
|
$
0.16
|
|
Excluding: Change of
fair value of warrant liability
|
0.07
|
|
0.11
|
|
0.08
|
|
0.11
|
|
Non-GAAP diluted net
earnings per share
|
$
0.10
|
|
$
0.07
|
|
$
0.07
|
|
$
0.05
|
|
|
|
|
|
|
|
|
|
Weighted average
number of common shares outstanding
|
|
|
|
|
|
|
|
|
-Basic
|
21,456,546
|
|
19,879,336
|
|
21,995,008
|
|
20,404,360
|
|
-Diluted
|
21,456,546
|
|
20,036,396
|
|
21,995,008
|
|
20,508,436
|
|
|
|
|
|
|
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/nova-lifestyle-reports-second-quarter-2015-financial-results-300127151.html
SOURCE Nova LifeStyle, Inc.