NOVA LIFESTYLE, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (UNAUDITED) Nine Months Ended Three Months Ended September 30, September 30, ------------------------ ------------------------ 2012 2011 2012 2011 ----------- ----------- ----------- ----------- (Unaudited) (Unaudited)Net Sales(Including sales to related party of $0 and $902,638 during the nine months ended September 30, 2012 and 2011; and $0 and $277,056 during the three months ended September 30, 2012 and 2011, respectively) $46,351,192 $26,079,694 $19,204,877 $11,187,474Cost of Sales 35,690,294 18,645,205 15,369,908 7,994,772 ----------- ----------- ----------- -----------Gross Profit 10,660,898 7,434,489 3,834,969 3,192,702 ----------- ----------- ----------- -----------Operating Expenses Selling expenses 2,322,996 1,216,546 968,443 421,437 General and administrative expenses 3,457,455 2,187,875 1,096,354 770,877 Loss on disposal of plant, property and equipment 123,587 -- -- -- ----------- ----------- ----------- -----------Total Operating Expenses 5,904,038 3,404,421 2,064,797 1,192,314 ----------- ----------- ----------- -----------Income From Operations 4,756,860 4,030,068 1,770,172 2,000,388 ----------- ----------- ----------- -----------Other Income (Expenses) Non-operating income (expense) (7,397) 21,719 15,642 11,245 Foreign exchange transaction gain (loss) 39 (79,450) (23,936) (18,721) Financial expense (54,341) (49,821) (7,443) (33,499) ----------- ----------- ----------- -----------Total Other Expenses, Net (61,699) (107,552) (15,737) (40,975) ----------- ----------- ----------- -----------Income Before Income Tax 4,695,161 3,922,516 1,754,435 1,959,413Income Tax Expense 1,047,646 655,859 510,542 277,824 ----------- ----------- ----------- -----------Net Income 3,647,515 3,266,657 1,243,893 1,681,589Other Comprehensive IncomeForeign currency translation (78,267) 423,204 (29,182) 187,219 ----------- ----------- ----------- -----------Comprehensive Income $ 3,569,248 $ 3,689,861 $ 1,214,711 $ 1,868,808 =========== =========== =========== ===========Basic weighted average shares outstanding 18,460,955 13,451,350 18,518,089 16,431,723 ----------- ----------- ----------- -----------Diluted weighted average shares outstanding 18,652,892 13,522,150 18,709,596 16,641,815 ----------- ----------- ----------- -----------Basic net earnings per share $ 0.20 $ 0.24 $ 0.07 $ 0.10 =========== =========== =========== ===========Diluted net earnings per share $ 0.20 $ 0.24 $ 0.07 $ 0.10 =========== =========== =========== =========== NOVA LIFESTYLE, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS SEPTEMBER 30, 2012 (UNAUDITED) AND DECEMBER 31, 2011 September 30, December 31, 2012 2011 -------------- -------------- (Unaudited)AssetsCurrent Assets Cash and cash equivalents $ 1,712,185 $ 2,505,179 Accounts receivable, net 24,452,857 18,974,612 Accounts receivable - related party -- 28,289 Due from factor -- 203,351 Advance to suppliers 1,614,369 349,767 Inventories 2,778,627 1,848,081 Prepaid expenses and other receivable 202,350 113,853 Deferred tax asset 156,208 156,974 -------------- --------------Total Current Assets 30,916,596 24,180,106 -------------- --------------Noncurrent Assets Heritage and cultural assets 127,873 128,687 Plant, property and equipment, net 8,594,748 8,721,186 Construction in progress 2,319,560 91,466 Construction deposit 796,241 634,830 Lease deposit 27,652 - Goodwill 218,606 218,606 Intangible assets, net 1,220,310 724,465 Deferred tax asset, net 187,782 118,144 -------------- --------------Total Noncurrent Assets 13,492,772 10,637,384 -------------- --------------Total Assets $ 44,409,368 $ 34,817,490 ============== ============== NOVA LIFESTYLE, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS SEPTEMBER 30, 2012 (UNAUDITED) AND DECEMBER 31, 2011 September 30, December 31, 2012 2011 ------------- ------------- (Unaudited)Liabilities and Stockholders' EquityCurrent Liabilities Accounts payable $ 5,081,639 $ 6,758,058 Line of credit 4,535,745 -- Advance from customers 77,608 91,021 Accrued liabilities and other payables 925,930 834,128 Taxes payable 863,740 198,984 ------------- -------------Total Current Liabilities 11,484,662 7,882,191 ------------- -------------Noncurrent Liabilities Deferred rent payable 54,122 58,949 Income tax payable 4,407,302 4,016,266 ------------- -------------Total Noncurrent Liabilities 4,461,424 4,075,215 ------------- -------------Total Liabilities 15,946,086 11,957,406 ------------- -------------Contingencies and CommitmentsStockholders' Equity Common stock, $0.001 par value; 75,000,000 shares authorized, 18,536,567 and 17,898,267 shares issued and outstanding as of September 30, 2012 and December 31, 2011, respectively 18,537 17,898 Additional paid-in capital 19,107,845 17,074,535 Subscription receivable (1,950,000) (1,950,000) Statutory reserves 6,241 6,241 Accumulated other comprehensive income 2,060,707 2,138,974 Retained earnings 9,219,952 5,572,436 ------------- -------------Total Stockholders' Equity 28,463,282 22,860,084 ------------- -------------Total Liabilities and Stockholders' Equity $ 44,409,368 $ 34,817,490 ============= =============
Contacts:
Corporate Contact:
Tawny Lam
President, Nova LifeStyle, Inc.
Tel: (323) 888-9999
Email: info@novalifeStyle.com
www.diamondsofa.com
IR Contact:
Ken Donenfeld
DGI Investor Relations, Inc.
Tel: (212) 425-5700
Email: kdonenfeld@dgiir.com
