Xmax, Inc. · NASDAQ:XMAX
Xmax — Nova LifeStyle — Investor Presentation (April 2016)
25 slides from Xmax's investor presentation, April 2016
Slide 1: Enjoy Life in Style – Investor Presentation
Enjoy Life in Style Investor Presentation April 2016
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) • Listed on NASDAQ in 2014 Stock Price * $1.16 Shares Outstanding 24.1 million • Rapidly growing designer, manufacturer and distributor Market Cap * $27.9 million o
Slide 4: Investment Highlights
Investment Highlights • 5 Year Revenue CAGR of 24.8% well in excess of broader home furnishing industry growth rate • Publicly-held home furnishing company with substantial exposure to both Asia and North American markets • Distribution channels to fit different market needs: • B2B (Enterprise clien
Slide 5: Key Strategic Initiatives
Key Strategic Initiatives • Continue product catalogue expansion driven by a sharp understanding of customer preferences • Leverage and expand relationships with partners such as IKEA, Vanke, and I-Kongjian • Focus on traditional showroom sales while also embracing the use of online marketing, both
Slide 6: 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 7: 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 8: 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 9: Milestones and Key Events: 2014 – Present
Milestones and Key Events: 2014 – Present Added to the Signed agreement with Ping An Insurance Announces Began trading Introduction of Russell Group, #62 on Forbes Global 2000 list of partnerships with on the EzHome app in China MicroCap® Index the largest companies in the world Vanke and I- NASDAQ
Slide 10: Nova LifeStyle's Annual Sales by Geography
Nova LifeStyle’s Annual Sales by Geography Europe North America 10% 7% 69% 17% Europe revenues as a percentage of total sales Sales decrease in Europe N. America revenues as Sales increase in FY 2015 FY 2015 vs. 2014 China a percentage of total N. America sales FY 2015 vs. 2014 FY 2015 17% 11% China
Slide 11: Sales: U.S. and Canada
Sales: U.S. and Canada Growing North American Market Need •New Furniture orders were up 4% in 2015 versus 2014, according to the Smith Leonhard industry survey of residential furniture manufacturers and distributors. •Aggregate industry revenue grew to a combined $59 billion according to IBISWorld.
Slide 12: 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 13: 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 14: Global Customer & Sales Channels
Global Customer & Sales Channels 14
Slide 15: 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 16: 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 16
Slide 17: 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 18: 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 19: 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 20: Financial Snapshot – Annual Trends
Financial Snapshot – Annual Trends Revenues ($ in thousands) $120,000 $100,000 In 2015 the Company chose to pursue continued revenue growth which included $80,000 lower margin product mix $60,000 $40,000 $20,000 $0 2011 2012 2013 2014 2015 Net Income ($ in thousands) Earnings per Share $0.45 $9,000
Slide 21: Financial Snapshot – Income Statement
Financial Snapshot – Income Statement First Quarter 2016 Financial Highlights: • Net sales were $27.1 million, an increase of 23% compared to the prior year period • Gross profit was $4.14 million, an increase of 1.7% compared to the prior year period • Gross margin was 15%, compared to 18% in the p
Slide 22: Financial Snapshot – Balance Sheet
Financial Snapshot – Balance Sheet First Quarter 2016 Financial Highlights: • Cash and cash equivalents was $1.0 million • Net working capital of $50.0 million, an increase of $1.4 million from net working capital of $48.6 at December 31, 2015 • Ratio of current assets to current liabilities was 3.5
Slide 23: Peer Data – NVFY Performance / Valuation
Peer Data – NVFY Performance / Valuation Full Peer List of Furniture Makers Source: Company Filings / Bloomberg Mkt Cap Net Sales Diluted EPS Net Income Y/Y Sales Y/Y Net Income Symbol Name (USD) T12M T12M T12M Growth Growth P/E Debt/Equity LZB LA-Z-BOY INC 1,339 1,483.27 $1.50 77.01 5.02 28.55 17.9
Slide 24: Investment Conclusions
Investment Conclusions • Publicly-held home furnishing company Company Showroom at 2015 Las Vegas Market with substantial exposure to both Asia and North American markets • Various distribution channel to fit different market needs: B2B (Enterprise Clients, Wholesale) B2C (Franchise, e-Commerce Plat
Slide 25: 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 25