Company reports Fiscal year 2009 net income of $23.5 million, or $0.59 per diluted share, on sales of $185.2 million, versus $13.0 million net income, or $0.41 per diluted share, in 2008 on sales of $143.6 million
HUIZHOU, China, March 25 /PRNewswire-Asia/ -- NIVS IntelliMedia Technology Group, Inc. ("NIVS" or the "Company") (NYSE: NIV), a consumer electronics company that designs, manufactures and sells intelligent audio and visual products, announced today that net sales for the three months ended December 31, 2009, were $62.7 million compared to $42.6 million in the comparable prior year period, an increase of 47.2%. The increase in sales during the fourth quarter of 2009 compared to the fourth quarter of 2008 was attributed primarily to an increased demand for the Company's intelligent audio and video products as a result of the economic recovery that began in China, and market expansion efforts. Net sales for the full year ended December 31, 2009 were $185.2 million, an increase of $41.6 million, or 29.0% compared to $143.6 million for the year ended December 31, 2008. The increase in revenue was also attributed primarily to the increased demand for and sales of the Company's intelligent audio and video products, which the Company believes was the result of its market expansion efforts.
Income from operations during the fourth quarter 2009 was $12.5 million, an increase of $8.6 million or 220.5% compared to $3.9 million in the comparable prior year period. The increase in income from operations was attributable in part to the reversal of $2.7 million of bad debt charges in the fourth quarter. For the year ended December 31, 2009, the Company reported income from operations of $28.5 million, an increase of $10.0 million, or 54.1% from $18.5 million in the comparable prior year period.
Mr. Tianfu Li, NIVS' Chairman and CEO, said, "I am delighted at our strong 2009 fourth quarter and full year performance and completing our first year of trading on the NYSE Amex. We acquired our U.S. listing during a challenging economic environment and succeeded in expanding our business within the Chinese domestic market as well as in international markets. We believe our 2009 performance provides a solid foundation from which to grow in 2010. Our management team is focused on achieving outstanding operational performance and the continuance of increasing shareholder value."
During the fourth quarter of 2009, the Company reported net income of $11.0 million, or $0.28 per diluted share compared to $1.9 million, or $0.04 per diluted share, in the comparable period of 2008, an increase of $9.1 million. For the year ended December 31, 2009, the Company reported net income of $23.5 million, or $0.59 per diluted share, an increase of $10.5 million, or 80.8% from $13 million, or $0.41 per diluted share, in 2008.
Liquidity and Capital Resources
The Company had unrestricted cash and cash equivalents of approximately $5.9 million at December 31, 2009, compared with $0.5 million at December 31, 2008. In addition, the Company had approximately $4.8 million in restricted cash at December 31, 2009, as compared to $11.7 million at December 31, 2008. The Company had working capital of approximately $3.3 million at December 31, 2009 and a working capital deficit of $18.6 million at December 31, 2008.
The Company had short-term bank loans of approximately $51.7 million and $54.7 million as of December 31, 2009 and 2008, respectively.
During 2009, the Company spent $9.6 million on capital expenditures compared to $16.8 million in 2008. Depreciation and amortization was $5.9 million in 2009 compared to $4.9 million in 2008.
Business Outlook
For the remainder of 2010, the Company intends to continue its strong marketing and new product launch momentum, and remain focused on executing the goal of becoming China's preeminent integrated consumer electronics company. The Company intends to further enhance its balance sheet by focusing on cutting operating costs and streamlining operating efficiencies. In addition, the Company will continue to focus on R&D and add to its product portfolio, such as 3G mobile handsets, for example. As demonstrated by the tripling of revenue year-over-year of the intelligent audio and visual products in the fourth quarter of 2009, the Company believes that its integration of solid technology, design, manufacturing, distribution, product and marketing continues to be well-received by its customers and end users.
The Company intends to sustain its strong growth across all its operating segments and remains confident about the business and growth of the AV consumer electronics industry, and believes that its integrated strengths should allow it to expand market share within its core market and help to capture opportunities in new markets, enabling the Company to deliver sustained strong financial results and greater share value.
About NIVS IntelliMedia Technology Group, Inc.
NIVS IntelliMedia Technology Group is an integrated consumer electronics company that designs, manufactures, markets and sells intelligent audio and video products in China, Greater Asia, Europe, and North America. The NIVS brand has received "Most Popular Brand" distinction in China's acoustic industry for three consecutive years, among numerous other awards. NIVS has developed leading Chinese speech interactive technology, which forms a foundation for the Company's intelligent audio and visual systems, including digital audio, LCD televisions, digital video broadcasting ("DVB") set-top boxes, peripherals and more.
Safe Harbor Statement
This release contains certain "forward-looking statements" relating to the business of the Company and its subsidiary companies. These forward looking statements are often identified by the use of forward looking terminology such as "believes, expects" or similar expressions. Such forward looking statements involve known and unknown risks and uncertainties, including, but not limited to the Company's ability to remediate the significant deficiencies and/or material weakness(es) in its internal controls; the Company's ability to effectively integrate the operations and management of acquisition targets, including Dongri; the Company's entry into the mobile phone manufacturing business; the Company's ability to timely deliver products; the Company's ability to timely develop and market new products; the Company's ability to continue to borrow and raise additional capital to fund its operations; the Company's ability to accurately forecast amounts of supplies needed to meet customer demand; exposure to market risk through sales in international markets; fluctuations in the availability of raw materials and components needed for the Company's products; protection of the Company's intellectual property rights; and changes in the laws of the PRC that affect the Company's operations. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including the discussed above and in the Company's periodic reports that are filed with the Securities and Exchange Commission and available on its website (www.sec.gov). All forward-looking statements attributable the Company or to persons acting on its behalf are expressly qualified in their entirety by these factors other than as required under the securities laws. The Company does not assume an obligation to update these forward-looking statements.
Investor Conference Call
The Company's 2009 year-end earnings conference call will take place on Thursday, March 25, 2010, at 11:00 a.m. Eastern Time and will also be webcast over the internet.
To participate, callers should dial 800- 867-0938, callers dialing from China or Hong Kong should dial U.S. 1 -480-293-0647. Participants should ask for the "NIVS IntelliMedia Conference Call."
A simultaneous webcast will also be available via http://w.on24.com/r.htm?e=199373&s=1&k=7FAA2EC2A3CC7CCB87A1899E1BEEE123
In addition, a replay of the conference call will be archived and available until April 25, 2010 at the following numbers: Domestic callers - 800-406-7325 or 303-590-3030, access code: 4263795. Callers from China or Hong Kong: U.S. 1-800-406-7325, access code 4263795.
For more information, please contact:
Company Contact:
Jason Wong
Vice President Investor Relations
Tel: +86-138-299-16919
Email: jason@nivsgroup.com
Investor Contact:
United States & Canada
BPC Financial Marketing
John Baldissera
Tel: +1-800-368-1217
NIVS INTELLIMEDIA TECHNOLOGY GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In US Dollars)
December 31, December 31,
2009 2008
Assets
Current Assets
Cash and cash equivalents $5,916,224 $461,504
Trade receivables, net 33,228,955 20,364,356
Inventories, net 9,626,048 11,279,832
Prepaid expenses, deposit and other
receivables 8,641,448 81,690
VAT refundable 869,202 1,094,090
Restricted cash 4,840,137 11,681,595
Total current assets 63,122,014 44,963,067
Property, equipment and construction
in progress, net 58,409,374 56,331,487
Advances to suppliers 16,649,904 15,286,028
Intangible assets, net 2,295,244 2,343,383
Total Assets $140,476,536 $118,923,965
Liabilities and Shareholders' Equity
Current Liabilities
Accounts payable - trade $3,932,115 $2,020,363
Accrued liabilities and other
payable 1,485,577 1,441,922
Wages payable 801,972 800,744
Corporate tax payable 1,372,117 2,744,518
Various taxes payable 494,678 470,860
Customer deposits -- 1,393,171
Short-term loans 43,987,358 35,871,715
Bank notes payable 7,712,609 18,849,201
Total current liabilities 59,786,426 63,592,494
Due to shareholder -- 7,842,780
Total Liabilities 59,786,426 71,435,274
Shareholders' Equity
NIVS IntelliMedia Technology Group,
Inc.'s shareholders' equity
Preferred stock, $0.0001 par value,
10,000,000 shares authorized, 0
shares issued and outstanding at
December 31, 2009 and December 31,
2008, respectively -- --
Common stock, $0.0001 par value,
100,000,000 shares authorized,
40,675,347 and 36,855,714 shares
issued and outstanding at December
31, 2009 and December 31, 2008,
respectively 4,068 3,686
Additional paid-in capital 21,717,239 12,663,513
Accumulated other comprehensive
income 3,979,941 3,960,012
Statutory reserve fund 5,722,107 3,568,869
Retained earnings (unrestricted) 47,497,211 26,193,371
Total NIVS IntelliMedia Technology
Group, Inc. Shareholders' Equity 78,920,566 46,389,451
Noncontrolling interest 1,769,544 1,099,240
Total Shareholders' Equity 80,690,110 47,488,691
Total Liabilities & Shareholders'
Equity $140,476,536 $118,923,965
The accompanying notes are an integral part of these consolidated
financial statements.
NIVS INTELLIMEDIA TECHNOLOGY GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(In US Dollars)
For the Year Ended
December 31, December 31, December 31,
2009 2008 2007
Revenues $185,197,972 $143,630,679 $77,626,516
Other Revenues 282,289 414,968 516,415
Cost of Goods Sold (142,416,067) (109,762,476) (58,864,342)
Gross Profit 43,064,194 34,283,171 19,278,589
Selling Expenses 6,761,597 5,376,083 3,269,414
General and
administrative
Amortization 78,665 68,788 62,175
Depreciation 331,153 337,445 327,575
Bad debts (recovery) (2,745,003) 2,531,479 473,218
Merger cost -- 1,785,696 --
Stock-based
compensation -- 765,000 --
Other general and
administrative 4,850,370 3,171,458 2,548,047
Total general and
administrative 2,515,185 8,659,866 3,411,015
Research and
development 5,314,781 1,737,323 373,472
Total operating
expenses 14,591,563 15,773,272 7,053,901
Income from
operations 28,472,631 18,509,899 12,224,688
Other income
(expenses)
Government grant 575,870 31,713 28,138
Write-down of
inventory -- (131,837) (105,106)
Interest income 6 91 234,655)
Interest expense (1,566,976) (2,208,051) (1,791,490)
Imputed interest -- (656,167) (526,428)
Sundry income
(expense), net 11,407 (51,714) (111,405)
Total other
income (expenses) (979,693) (3,015,965) (2,271,636)
Income before
non-controlling
interest and
income taxes 27,492,938 15,493,934 9,953,052
Income taxes (3,406,230) (2,031,031) (1,268,963)
Net income 24,086,708 13,462,903 8,684,089
Net income
attributable to
the non-
controlling
interest (629,630) (429,490) (217,569)
Net income
attributable NIVS
IntelliMedia
Technology Group,
Inc. $23,457,078 $13,033,413 $8,466,520
Basic earnings
per share - net
income
attributable to
NIVS's common
shareholders $0.59 $0.41 $0.31
Weighted-average
shares
outstanding,
Basic 39,858,756 31,553,197 27,546,667
Diluted earnings
per share - net
income
attributable to
NIVS's common
shareholders $0.59 $0.41 $0.31
Weighted-average
shares
outstanding,
Diluted 39,858,756 31,967,040 27,546,667
The accompanying notes are an integral part of these consolidated
financial statements.
NIVS INTELLIMEDIA TECHNOLOGY GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In US Dollars)
For the Year Ended
December 31,
2009 2008 2007
Cash Flows From
Operating
Activities
Net income $24,086,708 $13,462,903 $8,684,089
Adjustments to
reconcile net
income to net
cash provided by
operating
activities:
Imputed interest -- 656,167 526,428
Bad debt expense
(recovery) (2,745,003) 2,531,479 473,218
Depreciation
expense 5,850,550 4,887,386 1,169,319
Amortization
expense 78,665 68,788 62,175
Stock-based
compensation -- 765,000 --
Write-down of
inventory -- 131,837 105,106
Changes in
operating assets
and liabilities:
Trade receivables (10,117,126) (18,385,002) (4,838,184)
Advances to
suppliers 350,934 1,318,827 (13,640,207)
Prepaid expenses
and deposits -- (63,105) 38,265
Inventories, net 1,655,152 6,067,538 (15,908,385)
VAT refundable 225,021 (1,094,090) --
Accounts payable,
accrued
liabilities and
customer deposits 561,647 (12,650,271) 12,402,518
Various taxes
payable 23,761 283,149 (315,905)
Wages payable 1,131 192,522 436,329
Corporate tax
payable (1,372,734) 1,018,753 1,092,944
Net cash
provided by
(used in)
operating
activities 18,598,706 (808,119) (9,712,290)
Cash Flows From
Investing
Activities
Restricted cash 6,842,875 (9,698,348) (276,104)
Deposits for
Dongri
Acquisition (8,559,748) -- --
Purchases of
property, plant
and equipment (5,232,911) (15,326,949) (15,297,640)
Payments made for
construction in
progress (4,405,199) (1,480,627) --
Purchases of
intangible assets (31,605) (28,830) --
Due from related
parties -- 2,213,370 4,801,648
Short-term
investment,
marketable
securities -- -- (650)
Net cash used in
investing
activities (11,386,588) (24,321,384) (10,772,746)
Cash Flows From
Financing
Activities
Net borrowing
from bank loans
payable 8,111,292 3,230,239 15,985,886
Net borrowing
(repayment) in
bank notes
payable (11,138,878) 12,744,638 (145,438)
Capital lease
payable -- -- (61,669)
Net proceeds of
share issuances 1,212,382 10,487,474 --
Due to
shareholder -- (3,165,990) 4,916,614
Net cash
provided by
(used in)
financing
activities (1,815,204) 23,296,361 20,695,393
Effect of
exchange rate
changes on cash 57,806 855,995 668,904
Net increase in
cash and cash
equivalents 5,454,720 (977,147) 879,261
Cash and cash
equivalents,
beginning of
period 461,504 1,438,651 559,390
Cash and cash
equivalents, end
of period $5,916,224 $461,504 $1,438,651
Supplemental
disclosure
information:
Interest expense
paid $1,706,762 $2,208,051 $1,791,490
Income taxes paid $4,773,839 $2,031,031 $1,268,963
Non cash
investing and
financing
activities:
Exchange of
investment for
equipment $-- $-- $12,824,623
Conversion of Li
debt to common
stock $7,841,726 $-- $--
The accompanying notes are an integral part of these consolidated
financial statements.
