Nova LifeStyle, Inc (NVFY) swung to a net loss for the quarter ended Mar. 31, 2017. The company has made a net loss of $1.21 million in the quarter, against a net profit of $0.10 million in the last year period. Revenue during the quarter dropped 19.64 percent to $18.06 million from $22.47 million in the previous year period. Gross margin for the quarter contracted 108 basis points over the previous year period to 14.96 percent. Operating margin for the quarter stood at negative 7.19 percent as compared to a positive 3 percent for the previous year period.
Operating loss for the quarter was $1.30 million, compared with an operating income of $0.67 million in the previous year period.
Operating cash flow turns positive
Nova LifeStyle, Inc has generated cash of $8.76 million from operating activities during the quarter as against cash outgo of $0.52 million in the last year period. The company has spent $7.59 million cash to meet investing activities during the quarter as against cash outgo of $0.04 million in the last year period.
The company has spent $3.47 million cash to carry out financing activities during the quarter as against cash inflow of $0.64 million in the last year period.
Cash and cash equivalents stood at $0.29 million as on Mar. 31, 2017, down 72.62 percent or $0.77 million from $1.06 million on Mar. 31, 2016.
Working capital increases
Nova LifeStyle, Inc has recorded an increase in the working capital over the last year. It stood at $57.68 million as at Mar. 31, 2017, up 15.18 percent or $7.60 million from $50.08 million on Mar. 31, 2016. Current ratio was at 9.76 as on Mar. 31, 2017, up from 3.51 on Mar. 31, 2016.
Cash conversion cycle (CCC) has increased to 216 days for the quarter from 171 days for the last year period. Days sales outstanding went up to 241 days for the quarter compared with 201 days for the same period last year.
Days inventory outstanding has decreased to 7 days for the quarter compared with 24 days for the previous year period. At the same time, days payable outstanding went down to 31 days for the quarter from 53 for the same period last year.
Debt comes down significantly
Nova LifeStyle, Inc has recorded a decline in total debt over the last one year. It stood at $4.51 million as on Mar. 31, 2017, down 58.71 percent or $6.41 million from $10.92 million on Mar. 31, 2016. Total debt was 6.34 percent of total assets as on Mar. 31, 2017, compared with 11.67 percent on Mar. 31, 2016. Debt to equity ratio was at 0.07 as on Mar. 31, 2017, down from 0.18 as on Mar. 31, 2016. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
