PR Newswire
LOS ANGELES, Aug. 12, 2015
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:
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
Balance Sheet and Cash Flow Highlights
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 | | $ Werbung Mehr Nachrichten zur Nova Lifestyle Aktie kostenlos abonnieren
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