LOS ANGELES, Aug. 13, 2018 (GLOBE NEWSWIRE) -- Nova LifeStyle, Inc. (NASDAQ: NVFY), a leading U.S.-based, innovative designer and distributor of modern LifeStyle home products, today announced solid financial results for the second quarter ended June 30, 2018.

Second Quarter 2018 Financial Highlights (all comparisons are to the same period in 2017):

• Net income increased 150% to $1.4 million, or $0.05 per diluted share, compared to net income of $0.6 million or $0.02 per diluted share.
• Revenue increased 24% to $24.1 million, compared to $19.5 million.
• Gross profit was $4.2 million, up 21.1%, compared to $3.5 million.
• Average selling prices (ASPs) rose nearly 20% driven by high margin household products.
• Sofas, TV cabinets and beds were the top selling product lines at 53%, 20% and 8% of revenues, respectively. 
• Entered into proprietarily designed office furniture markets.
• Anticipate robust sales and earnings growth throughout the remainder of 2018.

Six Months 2018 Financial Highlights (all comparisons are to the same period in 2017):

• Net income was $3.0 million, or $0.11 per diluted share, compared to a net loss of $(0.7) million, or $(0.02) per diluted share.
• Revenues increased 23.5% to $46.4 million, compared to $37.6 million.
• Gross profit for the first half of 2018 was $9.1 million, up 47.5%, compared to $6.2 million.     
• Balance sheet well-positioned with approximately $2.60 per share in net assets at June 30, 2018.

Management Commentary

Tawny Lam, Chief Executive Officer of Nova LifeStyle, commented, "Nova Lifestyle is pleased to announce another quarter of great financial results. Our strategy of focusing on high-end products continues to validate our growth strategies, evidenced by a year over year revenue increase of over 23%. In particular, the Company saw gains in both ASPs and volumes shipped, reflecting that our extensive product offerings through catalogues are gaining momentum. Our international growth has been solid, particularly in Australia, where we have leveraged our relationships and brand recognition to serve customers in the hotel and hospitality industries.” 

“In addition to home furnishing products, Nova LifeStyle is now offering a proprietarily designed ‘Office’ product line that greatly complements our existing catalogues. We are currently experiencing substantial cross-selling demand from commercial customers as companies look for beautifully designed and functional office environments to attract and retain employees in today’s low unemployment economy. Going forward, the Office product line will become an added sales channel that integrates corporate apartments and residential furniture adoptions. We anticipate significant sales and earnings growth to continue in the second half of 2018.”

About Nova LifeStyle

Nova LifeStyle, Inc., a NASDAQ Global Market listed company headquartered in California, is a fast growing, innovative designer 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 that include LifeStyle brands such as Diamond Sofa, Nova QwiK, and Bright Swallow International. Nova's products feature urban contemporary styles that integrate comfort and functionality, incorporating upscale luxury designs appeals to middle and upper middle-income consumers in the U.S., China, Europe, and elsewhere in the world. Visit Nova LifeStyle’s website at www.NovaLifeStyle.com.

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

NOVA LIFESTYLE, INC. AND SUBSIDIARIES 
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2018 AND 2017 (UNAUDITED)

	Six Months Ended June 30,								Three Months Ended June 30,
		2018				2017				2018				2017
Net Sales	$	46,412,102			$	37,590,789			$	24,108,630			$	19,533,767
Cost of Sales		37,305,319				31,417,150				19,903,389				16,061,903
Gross Profit		9,106,783				6,173,639				4,205,241				3,471,864
Operating Expenses
Selling expenses		1,681,058				1,686,436				1,049,905				711,434
General and administrative expenses		3,848,564				5,483,709				1,542,891				2,458,033
Total Operating Expenses		5,529,622				7,170,145				2,592,796				3,169,467
Income From Operations		3,577,161				(996,506	)			1,612,445				302,397
Other Income (Expenses)
Non-operating expense, net		4,082				797				4,082				797
Foreign exchange transaction loss		(441	)			(230	)			(305	)			(190	)
Interest expense, net		(55,786	)			(92,161	)			(24,204	)			(37,755	)
Financial expense		(69,497	)			(51,827	)			(38,777	)			(25,767	)
Total Other Expenses, Net		(121,642	)			(143,421	)			(59,204	)			(62,915	)
Income Before Income Taxes		3,455,519				(1,139,927	)			1,553,241				239,482
Income Tax Expense (Benefit)		437,193				(488,003	)			189,936				(317,984	)
Net Income (Loss)		3,018,326				(651,924	)			1,363,305				557,466
Other Comprehensive (Loss)
Release of foreign currency translation adjustments upon disposal of subsidiaries
Foreign currency translation		--				--				--				--
Comprehensive Income (Loss)	$	3,018,326			$	(651,924	)		$	1,363,305			$	557,466
Basic weighted average shares outstanding		28,304,183				27,429,885				28,043,687				27,513,733
Diluted weighted average shares outstanding		28,650,857				27,429,885				28,524,134				27,516,902
Net income (loss) per share of common stock
Basic	$	0.11			$	(0.02	)		$	0.05			$	0.02
Diluted	$	0.11			$	(0.02	)		$	0.05			$	0.02

NOVA LIFESTYLE, INC. AND SUBSIDIARIES 
CONDENSED CONSOLIDATED BALANCE SHEETS
JUNE 30, 2018 (UNAUDITED) AND DECEMBER 31, 2017

	June 30, 2018			December 31, 2017
Assets
Current Assets
Cash and cash equivalents	$	7,803,679		$	5,722,716
Accounts receivable, net		55,274,251			54,006,513
Advance to suppliers		15,205,316			8,580,609
Inventories		5,882,945			6,374,560
Prepaid expenses and other receivables		245,233			232,935
Total Current Assets		84,411,424			74,917,333
Noncurrent Assets
Plant, property and equipment, net		149,357			157,246
Lease deposit		43,260			43,260
Goodwill		218,606			218,606
Intangible assets, net		3,999,256			4,202,608
Deferred tax asset		318,961			318,961
Total Noncurrent Assets		4,729,440			4,940,681
Total Assets	$	89,140,864		$	79,858,014

NOVA LIFESTYLE, INC. AND SUBSIDIARIES 
CONDENSED CONSOLIDATED BALANCE SHEETS – CONTINUED
JUNE 30, 2018 (UNAUDITED) AND DECEMBER 31, 2017

	June 30, 2018			December 31, 2017
Liabilities and Stockholders' Equity
Current Liabilities
Accounts payable	$	3,944,397		$	1,634,554
Line of credit		7,306,830			-
Advance from customers		48,808			19,826
Accrued liabilities and other payables		640,769			847,756
Income tax payable		324,892			178,307
Total Current Liabilities		12,265,696			2,680,443
Noncurrent Liabilities
Line of credit		-			4,202,118
Income tax payable		4,591,257			4,527,849
Total Noncurrent Liabilities		4,591,257			8,729,967
Total Liabilities		16,856,953			11,410,410
Contingencies and Commitments
Stockholders' Equity
Common stock, $0.001 par value; 75,000,000 shares authorized,
28,399,610 and 28,191,927 shares issued and outstanding;		28,400			28,192
as of June 30, 2018 and 2017, respectively
Additional paid-in capital		39,500,150			38,682,377
Statutory reserves		6,241			6,241
Retained earnings		32,749,120			29,730,794
Total Stockholders' Equity		72,283,911			68,447,604
Total Liabilities and Stockholders' Equity	$	89,140,864		$	79,858,014

NOVA LIFESTYLE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 2018 AND 2017 (UNAUDITED)

	Six Months Ended June 30,
		2018				2017
Cash Flows From Operating Activities
Net income (loss)	$	3,018,326			$	(651,924	)
Adjustments to reconcile net income to net cash used in
operating activities:
Depreciation and amortization		222,741				762,150
Deferred tax benefit		--				(648,961	)
Stock compensation expense		843,296				913,264
Changes in bad debt allowance		169,909				504,324
Changes in operating assets and liabilities:
Accounts receivable		(1,437,646	)			9,997,317
Advance to suppliers		(624,708	)			0,922,714	)
Inventories		491,615				768,120
Other current assets		(69,820	)			(267,052	)
Accounts payable		2,309,843				(2,296,941	)
Advance from customers		28,982				(497,484	)
Accrued liabilities and other payables		(206,281	)			186,081
Taxes payable		209,993				160,959
Net Cash Used in Operating Activities		(1,043,750	)			(1,992,861	)
Cash Flows From Investing Activities
Assignment fee received		--				1,250,000
Purchase of property and equipment		(11,499	)			(2,132	)
Advances to unrelated parties		--				(8,835,000	)
Repayment from unrelated parties		--				15,835,000
Net Cash (Used in) provided by Investing Activities		(11,499	)			8,247,868
Cash Flows From Financing Activities
Proceeds from line of credit and bank loan		39,802,918				23,094,342
Repayment to line of credit and bank loan		(36,698,206	)			(26,765,110	)
Proceeds from the exercise of options for common stocks		31,500				--
Net Cash provided by (Used in) Financing Activities		3,136,212				(3,670,768	)

NOVA LIFESTYLE, INC. AND SUBSIDIARIES 
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED)
FOR THE SIX MONTHS ENDED MARCH 31, 2018 AND 2017 (UNAUDITED)

	Six Months Ended June 30,
		2018			2017
Effect of Exchange Rate Changes on Cash and Cash Equivalents		--			--
Net (decrease) increase in cash and cash equivalents		2,080,963			2,584,239
Cash and cash equivalents, beginning of period		5,722,716			2,587,743
Cash and cash equivalents, ending of period	$	803,679		$	5,171,982
Analysis of cash and cash equivalents
Included in cash and cash equivalents per consolidated balance sheets		7,803,679			5,171,982
Cash and cash equivalents, end of period	$	7,803,679		$	5,171,982
Supplemental Disclosure of Cash Flow Information
Cash paid during the period for:
Income tax payments	$	227,200		$	--
Interest expense	$	55,828		$	118,753