LOS ANGELES, April 10, 2018 (GLOBE NEWSWIRE) — Nova LifeStyle, Inc. (NASDAQ:NVFY), a leading U.S.-based, innovative designer and distributor of modern LifeStyle home products, today issued financial guidance for Fiscal Year 2018.
Full Year Outlook for 2018:
Revenues Guidance
For fiscal year 2018, Nova LifeStyle currently expects total revenue to be at least $110 million, based on organic growth of existing operations. In addition, the Company may elect to pursue potential strategic M&A opportunities which could provide additional revenue contribution. E-commerce sales from the Company’s subsidiary, Diamond Sofa (https://www.diamondsofa.com/), are expected to achieve record performance, with significant growth deriving from marketing to large accounts such as Amazon.com and other established digital platforms.
Nova LifeStyle has sufficient capital to fund its projected growth and therefore currently has no plan to dilute current shareholders through equity offerings. Further, the Company does not expect its business to be materially impacted in any way by the trade policy differences between the U.S. and China.
2018 Net Income, Earnings Per Share (EPS) Guidance
For fiscal year 2018, Nova LifeStyle currently expects net income to be approximately $9.5 million, or EPS of $0.34 on a fully diluted basis, constituting a significant increase from 2017 net income of $3.8 million and diluted EPS of $0.14.
First Quarter 2018 Performance
The Company anticipates reporting significant sales and net income growth for the quarter ended March 31, 2018.
Approved $5 Million Stock Buyback to Initiate in Q2/18
The Company expects to engage in a stock buyback in the open market from time to time under an approved $5 million share buyback program approved by our Board in December, 2017. Subject to certain regulatory blackout periods, the Company intends to execute the buyback program beginning in the current second quarter.
Investor Awareness, Non-deal Roadshows
In 2018, the Company intends to actively engage with shareholders and the investment community in general to further enhance shareholder value, share trading depth and liquidity. The Company plans to meet with institutional investors through non-deal roadshows in 2018.
MANAGEMENT COMMENT
Tawny Lam, CEO of Nova LifeStyle, commented: “We currently anticipate 2018 to be a year of record sales and earnings growth. Based on our analysis of market trends and customer feedback, Nova LifeStyle expects to launch several new product lines in 2018 targeting the millennial communities as well as deepening channels in the hospitality industry. We expect E-commerce sales to remain strong and are looking for our own “Diamond Sofa” brand to attract large sales volumes.”
“With a strong balance sheet and favorable market conditions, Nova LifeStyle looks forward to executing on its plans for 2018 and hopefully exceeding our own financial guidance,” Ms. Lam concluded.
About Nova LifeStyle
Nova LifeStyle, Inc., a NASDAQ Global Market listed company headquartered in California and founded nearly 30 years ago, is a fast growing, innovative designer and distributor of modern LifeStyle residential and commercial furniture products: 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
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