Nova LifeStyle, Inc. Reports Second Quarter FY 2021 Results
16 August 2021 - 10:08PM
Nova LifeStyle, Inc. (NASDAQ: NVFY) (“Nova LifeStyle” or the
“Company”) today announced its financial results for the second
quarter ended June 30, 2021.
Key Financial Highlights:
Operating Results for the Three Months Ended June 30,
2021
- Net sales for three months ended June 30,
2021 were $3.6 million, an increase of 55% from $2.3
million in the same period of 2020.
- Gross profit (loss) was ($4.0 million), compared to $0.9
million profit in the same period of 2020. The gross profit
(loss) for the period ended June 30, 2021 exclusive of the
write-down for slow moving inventory of $5.53 million, would have
been $1.5 million.
- Net loss was ($6.3 million), compared to ($0.5
million) loss in the same period of 2020.
Operating Results for the Six Months Ended June 30,
2021
- Net sales for the six months ended June 30,
2021 were $6.9 million, an increase of 53% from $4.5
million in the same period 2020.
- Gross profit (loss) was ($2.6 million), compared to $1.7
million profit in the same period of 2020. The gross profit (loss)
for the period ended June 30, 2021 exclusive of the write-down for
slow moving inventory of $5.53 million, would have been $2.9
million.
- Net loss from continuing operations was ($7.1 million),
compared to ($1.5 million) loss in the same period of
2020.
Tawny Lam, Chairperson and Chief Executive
Officer of Nova LifeStyle, stated, “This was a good quarter
for the Company and a strong first half of the year. As the Covid
pandemic continues to cause disruptions within supply chains, we
have been able to increase sales all of which can be attributed to
our inventory build-up over the past 18 months. Some of our
customers that had suspended or significantly cut back on
operations in response to the pandemic, have resumed
operations and we have been working with them to provide products.
We continue to work with our suppliers and manufacturers to ensure
that we are in a position to satisfy our customer needs as they
gradually return their operations to pre-pandemic levels.”
“During the quarter ended June 30, 2021 we wrote
down $5.53 million in slow moving inventory. That inventory
consisted predominantly of Jade matts that were designed to be
marketed predominantly in Malaysia through showrooms established by
us in Malaysia and through medical clinics in Malaysia. The
pandemic-related lockdowns in Malaysia have all but eliminated
foot-traffic into retail locations and medical clinics, which
ultimately resulted in the writedown. We are unable to predict when
or if those circumstances will improve in Malaysia.”
“The Company continues to execute on its
business plan, specifically offering higher margin products.
Revenues have increased this year and we anticipate a strong
pipeline for the balance of the year. We believe the investments in
inventory and improvements in our online presence that we made
since the beginning of the pandemic positions us to support our
current customers and also allows our marketing and business
development team to generate new leads. As a result, we are excited
about continuing to deliver growth in sales. I am most appreciative
to our team and our partners and for their efforts in accomplishing
this feat in the current environment," concluded Ms. Lam.
About Nova LifeStyle
Nova LifeStyle, Inc. is a well-established,
innovative designer and distributor of modern lifestyle furniture;
primarily sofas, dining room furniture, cabinets, office furniture
and related components, bedroom furniture, and various accessories,
in matching collections. Nova LifeStyle’s product lines include the
Nova Brands and Diamond Sofa (www.diamondsofa.com). Nova's products
feature urban contemporary styles that integrate comfort and
functionality, incorporating upscale luxury designs which appeal to
middle and upper middle-income consumers in
the USA, China, Southeast Asia, and elsewhere in the
world.
Visit Nova LifeStyle's website
at www.NovaLifeStyle.com.
Forward-Looking Statements
This press release may contain forward-looking
statements within the meaning of Section 27A of the Securities Act
of 1933, as amended, and Section 21E of the Securities Exchange Act
of 1934, as amended, including, among others, our ability to fully
resume our operations and remain financially healthy, our expected
future growth prospects. All statements other than statements of
historical fact are, or may be deemed to be, forward-looking
statements. In some cases, forward-looking statements can be
identified by the use of forward-looking terms such as
“anticipate,” “estimate,” “believe,” “continue,” “could,” “intend,”
“may,” “plan,” “potential,” “predict,” “should,” “will,” “expect,”
“objective,” “projection,” “forecast,” “goal,” “guidance,”
“outlook,” “effort,” “target,” “trajectory,” “focus,” “work
to,” “attempt,” “pursue,” or the negative of these terms or other
comparable terms. However, the absence of these words does not mean
that the statements are not forward-looking. These forward-looking
statements are based on certain assumptions and analyses made by us
in light of our experience and our perception of historical trends,
current conditions and expected future developments, as well as
other factors we believe are appropriate in the circumstances.
Investor RelationsContactAndrew
Barwicki516-662-9461andrew@barwicki.comir@novalifestyle.com
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