Xmax, Inc. · NASDAQ:XMAX
Xmax — Nova LifeStyle — Investor Presentation (November 2015)
24 slides from Xmax's investor presentation, November 2015
Slide 1: Enjoy Life in Style – Investor Presentation
Enjoy Life in Style Investor Presentation November 2015
Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentation contains "forward-looking statements" within the meaning of the "safe-harbor" provisions of the Securities Litigation Reform Act of 1995. Such statements involve known and unknown risks, uncertainties and other factors that could cause the actual results of th
Slide 3: At a Glance – Nova LifeStyle
At a Glance – Nova LifeStyle • Founded in 1996 as a result of a merger between At a Glance Nova, and Diamond Sofa Ticker (NASDAQ: NVFY) • IPO in 2011 Stock Price * $2.15 Shares Outstanding 24.1 million • Rapidly growing designer, manufacturer and distributor Market Cap * $52.6 million of branded and
Slide 4: Global Leadership Team
Global Leadership Team Nova LifeStyle was formed through the combination of Nova, which was founded in 1993 by Jeffrey Wong (CEO) and Sammy Ho (CFO) in China, and Diamond Sofa, which was founded in 1992 by Tawny Lam (President) in the U.S. Jeffrey Wong – CEO, Co-Founder Tawny Lam - President, Chairp
Slide 5: Investment Highlights
Investment Highlights • Publicly-held home furnishing company with substantial exposure to both Asian and North American markets • Distribution channels to fit different market needs: • B2B (Enterprise clients, wholesale) • B2C (franchise, E-commerce platform) • Continuous creativity: Active partici
Slide 6: Who is Nova LifeStyle?
Who is Nova LifeStyle? • U.S. Based, Publicly-Held Home Furnishings Company • Fully Integrated Design-To-Production Business Model: Customizable, Fast and Flexible • Growing Customer Base: Customers in U.S., Europe and Asia • Recurring Orders from Well-known Customers: Nebraska Furniture Mart, a Ber
Slide 7: Our Brands, Products & Innovations
Our Brands, Products & Innovations Delivering Modern LifeStyle Solutions to Customers U.S. Europe & UAE Asia Products: • Upholstered furnishings • Living room seating, sofas, loveseats, recliners, sectionals and accent chairs • Urban beds and latex sleep mattresses • Coffee tables and bar stools • T
Slide 8: Milestones and Key Events: 2014 – Present
Milestones and Key Events: 2014 – Present Added to the Signed agreement with Ping An Insurance Introduction of Began trading Russell Group, #62 on Forbes Global 2000 list of EzHome app in China on the MicroCap® Index the largest companies in the world NASDAQ Enters into an agreement to design IKEA a
Slide 9: Nova LifeStyle's Annual Sales by Geography
Nova LifeStyle’s Annual Sales by Geography Europe North America 12% 20% 65% 46% Europe revenues as a percentage of total sales Sales decrease in Europe N. America revenues as Sales increase in FY 2014 FY 2014 vs. 2013 Asia a percentage of total N. America sales FY 2014 vs. 2013 FY 2014 23% 14% Asia
Slide 10: Sales: U.S. and Canada
Sales: U.S. and Canada Growing North American Market Need •Furniture Today's Top 100 U.S. furniture stores posted a 8.3% increase in furniture, bedding and accessories sales in 2014 •Revenue grew to a combined $37.1 billion, up from $34.1 billion Nova LifeStyle: U.S. Sales and Distribution • Wholesa
Slide 11: Sales: China and Other Asia Territories
Sales: China and Other Asia Territories China Market • Higher profit margins through direct sales in China nearly 100 franchisees in China since 2010, with a future goal of 200 locations Nova LifeStyle: China Sales and Distribution • Profitable and Fast-Growing Franchising Model • Strategic Store Pl
Slide 12: Sales: Europe, U.A.E. and Other Territories
Sales: Europe, U.A.E. and Other Territories European Market Trends • Products compliment consumer preferences for “urban contemporary”, smaller homes and apartments and trend of loft-style open look Nova LifeStyle: European / Other Sales and Distribution • Strong presence in the European markets bot
Slide 13: Global Customer & Sales Channels
Global Customer & Sales Channels 13
Slide 14: Strong Manufacturing Capability
Strong Manufacturing Capability • Fully owned 1.1 million square foot manufacturing facilities in Dongguan, China • Annual production capacity of approximately 410,000 units • Updated production line, which meets IKEA's stringent specifications • 60,000 square foot warehouse that houses the QuickShi
Slide 15: State-of-the-Art Production Facilities
State-of-the-Art Production Facilities Woodworking German Schelling Cutting Machines Board Sizing Board Pressing Powder Coating UV Automation Upholstery Warehousing and Distribution 15
Slide 16: Marketing Strategy
Marketing Strategy • All furniture offerings supported by sample display High Point Market showrooms, brochures and online marketing • Franchise network in China to increase brand awareness among middle and upper middle-income consumer • Participate in key trade exhibitions globally • Multiple high
Slide 17: Technology and E-Commerce – EzHome
Technology and E- Commerce – EzHome • EzHome is available in the Chinese markets on the following mobile platforms: iOS and Android • The most comprehensive mobile app to request the delivery and installation of furniture and furnishings purchased online • Solves many of the logistical issues associ
Slide 18: Near and Long Term Growth Initiatives (2015-2016)
Near and Long Term Growth Initiatives (2015-2016) • Expand Partnerships and Increase Sales Contracts • Create Innovative Designs Tailored to Each Market • Launch Dedicated e-Commerce Platform to Target the China Market • Growth through Mergers and Acquisition • Increase Sales of Higher-Margin Brande
Slide 19: Financial Snapshot – Annual Trends
Financial Snapshot – Annual Trends Revenues ($ in mm) $120.0 98.7 2014 Revenue and Income Growth is a $100.0 78.4 Result of Recent Investment in Sales and $80.0 $60.0 66.3 Marketing Initiatives and the Acquisition $40.0 43.2 of Bright Swallow $20.0 $- 2011 2012 2013 2014 Net Income ($ in mm) Earning
Slide 20: Financial Snapshot – Income Statement
Financial Snapshot – Income Statement Third Quarter 2015 Financial Highlights: Net sales were $29.0 million, an increase of 12% compared to the prior year period. • Gross profit was $4.3 million, an decrease of 27% compared to the prior year period. • Gross margin was 15%, compared to 23% in the pri
Slide 21: Financial Snapshot – Balance Sheet
Financial Snapshot – Balance Sheet Third Quarter 2015 Financial Highlights: Cash and cash equivalents was $1.0 million • No long-term debt • Net working capital of $48.3 million, an increase of $13.8 million • from net working capital of $34.5 at December 31, 2014 Ratio of current assets to current
Slide 22: Peer Data – NVFY Performance / Valuation
Peer Data – NVFY Performance / Valuation Full Peer List of Furniture Makers Source: Company Filings / Bloomberg Ticker Name Price Mkt Cap Net Sales TTM Net Sales - 1 Yr Growth % NI TTM EPS EPS - 1 Yr Growth % P/E STLY STANLEY FURNITURE CO INC $2.83 $42.0 $60.0 3.5 $1.20 $0.07 -30.2 8.75x HOFT HOOKER
Slide 23: Investment Conclusions
Investment Conclusions • Publicly-held home furnishing company Company Showroom at 2015 Las Vegas Market with substantial exposure to both Asian and North American markets • Various distribution channel to fit different market needs: B2B (Enterprise Clients, Wholesale) B2C (Franchise, e-Commerce Pla
Slide 24: Contacts
Contacts NASDAQ: NVFY Corporate Headquarters IR Contact: 6565 E. Washington Blvd. The Equity Group Inc. Commerce, CA 90040 USA Adam Prior Tel: (323) 888-9999 Tel: (212) 836-9606 www.novalifestyle.com Email: Aprior@equityny.com 24
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