Xmax, Inc. · NASDAQ:XMAX
Xmax — Nova LifeStyle — Investor Presentation (September 2012)
27 slides from Xmax's investor presentation, September 2012
Slide 1: Nova LifeStyle, Inc.
Corporate Headquarters 6541 E. Washington Blvd. Commerce, CA 90040 USA Nova LifeStyle, Inc. Tel: (323) 888-9999 Stock Symbol: STVS www.novalifestyle.com
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: About Our Company
ABOUT OUR COMPANY • A rapidly growing U.S. designer, distributor and manufacturer of modern lifestyle furniture, headquartered in California with 2011 sales of $42MM (up 50% YOY) and net income of $5.4 million (up 28% YOY) • Industry innovator and niche leader in the U.S. And globally with its own b
Slide 4: Other Nova Facts
OTHER NOVA FACTS • Symbol: STVS (OTCQB) • Shares Outstanding: 18,691,250 • Recent Stock Price: $2.41 (September 7, 2012) • Market Cap: Approx. $45MM • Float: Approx. 4MM • Employees: 1000 • ISO 9001 and ISO 14001 certified • Patents: 119 • Public: June, 2011 • Founded: 1992 • Auditor: Marcum LLP 4
Slide 5: Worldwide Markets and Brands
WORLDWIDE MARKETS AND BRANDS Our Markets: U.S. ASIA EUROPE • Global corporate headquarters • Strong presence in the • Nova-branded products European markets • Original design capabilities (Colorful World, Giorgio Mobili) • Clients are primarily large • Diamond Sofa-branded • Profitable and fast-grow
Slide 6: Manufacturing Leader
MANUFACTURING LEADER DONGGUAN, CHINA 6
Slide 7: Global Presence
GLOBAL PRESENCE Sales and demographics for the year ended December 31, 2011 North America Europe China 33.50% 24.90% 33.20% Hong Kong Asia (ex HK/China) 1.53% Other Countries 2.07% 2.74% Australia 2.06% Sales of Nova-branded products Sales of Diamond Sofa products 7
Slide 8: Established Global Customers
ESTABLISHED GLOBAL CUSTOMERS 8
Slide 9: Other Select Customers
OTHER SELECT CUSTOMERS ova LIFESTYLE a at y SJSWB 22475 & Jaa freedom / — MACALLINE IDEmobler SCIMENE AI i Rens think sofas, think dfs ATLAS Votre Choix Qualité. Vie | ORs | hy pS Kinhom 218528 FLY Ayd
Slide 10: Competitors (U.S.)
COMPETITORS (U.S.) STVS LZB ETH FBM BSET STLY HVT HOFT Nova La-Z-Boy Ethan Allen Furniture Bassett Stanley Haverty Hooker Lifestyle Incorporated Interiors Brand Int Furniture Furniture Furniture Furniture Inc Inc. Industries, Company, Companis, Corp Incorporated Inc. Inc. Market Cap 36.05M $669.84M
Slide 11: Competitive Advantages
COMPETITIVE ADVANTAGES NOVA = Contemporary Styling + Functionality = U.S. and Emerging Market Growth • Niche leader: urban contemporary lifestyle products in high demand by modern consumers • Distribution channels in China: direct access to the growing middle class in China through proven franchisin
Slide 12: Growth Drivers
GROWTH DRIVERS • Furniture e-commerce sales in the U.S. rose 10.3% in 2011. (1) • Through 2016, projected higher disposable income and strong consumer sentiment will help boost demand for furniture in the U.S. (2) • As the level of home ownership rises, homeowners are expected to purchase more house
Slide 13: U.S. Market: Diamond Sofa
U.S. MARKET: DIAMOND SOFA Strong Indirect Sales • Diamond is a strong respected American brand and innovative distributor and designer of contemporary lifestyle furniture products in the U.S. since 1992 • Products sold to stores ranked in the top 100 furniture companies in the U.S.(1) • Worldwide pr
Slide 14: Diamond Sofa Products
DIAMOND SOFA PRODUCTS 14
Slide 15: Franchising in China
FRANCHISING IN CHINA HIGHER PROFIT MARGINS THROUGH DIRECT SALES IN CHINA • Nova brands offered through independently owned franchise stores • Stores individually advertise through local media • Nova coordinates large-scale promotions for launching new product collections • Nova sells directly to fra
Slide 16: Nova Organic Latex Mattresses
NOVA ORGANIC LATEX MATTRESSES “Made in the U.S.A.” • Clientele: Middle and upper middle-class consumers in China • Launched in selected franchise stores July, 2012; first “Made in U.S.A.” luxury latex mattress being sold in China • Top of the line, hypo-allergenic natural latex foam customized to si
Slide 17: "Giorgio Mobili" Brand
"GIORGIO MOBILI" BRAND • Clientele: Upper middle-class consumers • Luxury brand established in 2012 • Clean, classic style for upper middle-class consumers • High-end living room and bedroom sets, combining simple elegance with modern fashion • Luxury brands are growing exponentially due to the risi
Slide 18: "Colorful World" Brand
"COLORFUL WORLD" BRAND • Clientele: Middle-class consumers • Launched in 2003, first major branded product introduced by Nova into the China market • Young, clean, fashionable look for middle-class consumers; suitable for smaller, urban living spaces • Majority of franchising store sales consist of
Slide 19: Global Management Team
GLOBAL MANAGEMENT TEAM Jeffery Wong - CEO, Chairman and Co-Founder Tawny Lam - President, and Director, Co-Founder • 22 years of experience in the furniture industry Diamond Sofa in U.S. • Vice-Chairman, Dongguan Furniture Association • Joined in 2011 • Director, the International Furniture and • CE
Slide 20: Financials
FINANCIALS Year Over Year Growth in Revenues and Net Income US $Millions FY 2009 FY2010 FY2011 Revenue $21.7 $28.8 $43.2 Growth +33.0% +50% (EPS: $0.37 on Net Income $4.6 $4.8 $5.37 14.7MM diluted shares) Growth +28% 20
Slide 21: Financials: Second Quarter 2012
FINANCIALS 2012 Second Quarter Sales Up 74%; Net Income up 176% US $Millions Second Quarter Ended June 30 2011 2012 Revenues $9.26 $16.15 +74% Net Income $.58 $1.43 +176% EPS $0.05 $0.08 Diluted Weighted 11,952,747 18,491,138 Average Shares • U.S. sales led growth with 129% gain to $5.4 million • Ch
Slide 22: Financials: First Half 2012
FINANCIALS 2012 First Half Sales up 82%; Net Income up 11% US $Millions 6 Months Ended, June 30 2011 2012 Revenues $14.89 $21.15 +82% Net Income $1.59 $2.40 +11% Diluted Weighted 11,788,314 18,589,410 Average Shares • U.S. sales continued to lead sales growth • Gross profit margins were 25% compared
Slide 23: Recent Events
RECENT EVENTS • May 15, 2012 – Company Announced Long-Term Supply Agreement in China with IKEA, the world’s largest home furnishings retailer; Supported by new 161,460 square foot production line under construction with targeted completion in December. Products generated could add approximately $25M
Slide 24: Recent Events (con't)
RECENT EVENTS (con’t) • July 12, 2012 – Company announced first shipment to China of its Ultra Premium Made in the USA Mattresses. Substantial high margin growth opportunity for much sought after luxury product. • July 30, 2012 – Company introduces new line of urban contemporary sofas with built-in
Slide 25: Growth Strategy
GROWTH STRATEGY • Focus primarily on continuing rapid growth in U.S. and China, via further penetration of “Top 100” stores in the U.S. and increasing Internet sales with Diamond brand. In China, via increasing direct sales of NOVA branded furniture through growth to 200 franchises, and new Internet
Slide 26: Outlook for 2012
OUTLOOK FOR 2012 Based on anticipated organic growth, the Company provided the following guidance for 2012 on April 2, 2012: • Revenues growing from $43.2 million in 2011 to between $50 million and $58 million in 2012 (Midrange: +25%) • Net income increasing from $5.4 million in 2011 to between $7 m
Slide 27: Contacts
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 27
Nova LifeStyle — Investor Presentation (September 2012) on 6ix