Date of report (Date of earliest event reported):
|
August 13, 2012
|
VLOV, INC.
|
(Exact name of registrant as specified in its charter)
|
Nevada
|
000-53155
|
20-8658254
|
||
(State or other jurisdiction of incorporation)
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(Commission File No.)
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(IRS Employer Identification No.)
|
11F, No. 157 Taidong Road
Xiamen Guanyin Shan International Business Center
Siming District, Xiamen City
Fujian Province
People’s Republic of China
|
361008
|
|
(Address of principal executive offices)
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(Zip Code)
|
Registrant’s telephone number, including area code
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(86592) 2345999
|
N/A
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(Former name or former address, if changed since last report)
|
o
|
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
|
o
|
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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o
|
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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Item 8.01
|
Other Events.
|
Exhibit
Number
|
|
Description
|
99.1
|
|
Press Release dated August 13, 2012
|
Dated: August 13, 2012
|
VLOV, INC.
|
||
By:
|
/s/ Bennet P. Tchaikovsky
|
||
Bennet P. Tchaikovsky
|
|||
Chief Financial Officer
|
|||
Q2 2012 | Q2 2011 |
Change
|
||||||||||
Net Sales
|
$ |
25.3 million
|
$
|
20.6 million
|
+22.7 | % | ||||||
Gross Profit
|
$
|
11.5 million
|
$
|
9.3 million
|
+23.9 | % | ||||||
Income from Operations
|
$
|
6.4 million
|
$
|
4.4 million
|
+47.2 | % | ||||||
GAAP Net Income
|
$
|
4.9 million
|
$
|
3.8 million
|
+29.3 | % | ||||||
Adjusted Net Income *
|
$
|
4.6 million
|
$
|
3.4 million
|
+35.6 | % | ||||||
GAAP EPS (Diluted)
|
$ | 0.62 | $ | 0.48 | +28.4 | % | ||||||
Adjusted EPS (Diluted) *
|
$ | 0.59 | $ | 0.44 | +34.6 | % | ||||||
Weighted Average Diluted Shares
|
7,856,661 | 7,800,995 | +0.7 | % |
2012
|
2011
|
Change
|
||||||||||
Net Sales
|
$
|
$40.4 million
|
$
|
$41.8 million
|
-3.2 | % | ||||||
Gross Profit
|
$
|
$19.2 million
|
$
|
$18.6 million
|
+3.6 | % | ||||||
Income from Operations
|
$
|
$10.8 million
|
$
|
$10.1 million
|
+6.3 | % | ||||||
GAAP Net Income
|
$
|
$7.4 million
|
$
|
$8.2 million
|
-10.6 | % | ||||||
Adjusted Net Income **
|
$
|
$6.8 million
|
$
|
$7.7 million
|
-11.2 | % | ||||||
GAAP EPS (Diluted)
|
$ | 0.94 | $ | 1.06 | -11.2 | % | ||||||
Adjusted EPS (Diluted) **
|
$ | 0.87 | $ | 0.98 | -11.8 | % | ||||||
Weighted Average Diluted Shares
|
7,848,272 | 7,798,934 | +0.6 | % |
Three Months Ended
|
||||||||
June 30, 2012
|
June 30, 2011
|
|||||||
GAAP Net Income
|
$
|
4.9
|
$
|
3.8
|
||||
GAAP Fully Diluted Earnings Per Share
|
$
|
0.62
|
$
|
0.48
|
||||
Addition (deduction):
|
||||||||
Change in fair value of warrants
|
$
|
(0.3
|
)
|
$
|
(0.4
|
)
|
||
Non GAAP Net Income
|
$
|
4.6
|
$
|
3.4
|
||||
Non GAAP Fully Diluted Earnings Per Share
|
$
|
0.59
|
$
|
0.44
|
||||
Shares used in computing net income per fully diluted share
|
7,856,661
|
7,800,995
|
Six Months Ended
|
||||||||
June 30, 2012
|
June 30, 2011
|
|||||||
GAAP Net Income
|
$
|
7.4
|
$
|
8.2
|
||||
GAAP Fully Diluted Earnings Per Share
|
$
|
0.94
|
$
|
1.06
|
||||
Addition (deduction):
|
||||||||
Change in fair value of warrants
|
$
|
(0.6
|
)
|
$
|
(0.6)
|
|||
Non GAAP Net Income
|
$
|
6.8
|
$
|
7.7
|
||||
Non GAAP Fully Diluted Earnings Per Share
|
$
|
0.87
|
$
|
0.98
|
||||
Shares used in computing net income per fully diluted share
|
7,848,272
|
7,798,934
|
June 30,
2012
|
December 31,
2011
|
|||||||
(unaudited)
|
||||||||
ASSETS
|
||||||||
Current assets:
|
||||||||
Cash and cash equivalents
|
$
|
28,221
|
$
|
14,725
|
||||
Accounts and other receivables
|
25,524
|
36,233
|
||||||
Trade deposits
|
5,969
|
3,482
|
||||||
Inventories
|
7,183
|
1,880
|
||||||
Prepaid expenses
|
68
|
85
|
||||||
Total current assets
|
66,965
|
56,405
|
||||||
Property, plant and equipment, net
|
1,503
|
2,197
|
||||||
Goodwill
|
5,256
|
5,219
|
||||||
TOTAL ASSETS
|
$
|
73,724
|
$
|
63,821
|
||||
Current liabilities:
|
||||||||
Accounts payable
|
$
|
11,395
|
$
|
7,173
|
||||
Accrued expenses and other payables
|
1,550
|
1,967
|
||||||
Amount due to a director/officers
|
451
|
1,216
|
||||||
Derivative liability - common stock warrants
|
106
|
673
|
||||||
Income and other taxes payable
|
2,354
|
3,002
|
||||||
Total current liabilities
|
15,856
|
14,031
|
||||||
Stockholders’ equity:
|
||||||||
Common stock, $0.00001 par value, 40,000,000 shares authorized, 7,645,991 and 7,586,741 shares issued and outstanding as of June 30, 2012 and December 31, 2011, respectively
|
1
|
1
|
||||||
Preferred stock, $0.00001 par value, 100,000,000 shares authorized, 548,345 and 632,853 shares issued and outstanding as of June 30, 2012 and December 31, 2011, respectively (liquidation preference $1,568,267 and $1,809,960)
|
780
|
900
|
||||||
Additional paid-in capital
|
10,177
|
9,718
|
||||||
Statutory reserve
|
913
|
913
|
||||||
Retained earnings
|
42,448
|
35,087
|
||||||
Accumulated other comprehensive income
|
3,549
|
3,171
|
||||||
Total stockholders' equity
|
57,868
|
49,790
|
||||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
|
$
|
73,724
|
$
|
63,821
|
Three Months Ended June 30,
|
Six Months Ended June 30,
|
|||||||||||||||
2012
|
2011
|
2012
|
2011
|
|||||||||||||
Net sales
|
$
|
25,268
|
$
|
20,588
|
$
|
40,441
|
$
|
41,761
|
||||||||
Cost of sales
|
13,803
|
11,332
|
21,193
|
23,189
|
||||||||||||
Gross profit
|
11,465
|
9,256
|
19,248
|
18,572
|
||||||||||||
Operating expenses:
|
||||||||||||||||
Selling expenses
|
3,554
|
3,897
|
5,989
|
6,100
|
||||||||||||
General and administrative expenses
|
1,481
|
992
|
2,477
|
2,331
|
||||||||||||
5,035
|
4,889
|
8,466
|
8,431
|
|||||||||||||
Income from operations
|
6,430
|
4,367
|
10,782
|
10,141
|
||||||||||||
Other income (expenses):
|
||||||||||||||||
Change in fair value of derivative liability
|
249
|
357
|
567
|
579
|
||||||||||||
Interest income
|
27
|
22
|
43
|
57
|
||||||||||||
Interest expense
|
-
|
-
|
-
|
(8
|
)
|
|||||||||||
276
|
379
|
610
|
628
|
|||||||||||||
Income before provision for income taxes
|
6,706
|
4,746
|
11,392
|
10,769
|
||||||||||||
Provision for income taxes
|
1,841
|
984
|
4,031
|
2,536
|
||||||||||||
Net income
|
4,865
|
3,762
|
7,361
|
8,233
|
||||||||||||
Other comprehensive income:
|
||||||||||||||||
Foreign currency translation adjustment
|
23
|
623
|
378
|
827
|
||||||||||||
Comprehensive income
|
$
|
4,888
|
$
|
4,385
|
$
|
7,739
|
$
|
9,060
|
||||||||
Allocation of net income for calculating basic earnings per share:
|
||||||||||||||||
Net income attributable to common shareholders
|
4,729
|
3,589
|
7,156
|
7,854
|
||||||||||||
Net income attributable to preferred shareholders
|
136
|
173
|
205
|
379
|
||||||||||||
Net income
|
$
|
4,865
|
$
|
3,762
|
$
|
7,361
|
$
|
8,233
|
||||||||
Basic earnings per share- common
|
$
|
0.62
|
$
|
0.48
|
$
|
0.94
|
$
|
1.06
|
||||||||
Diluted earnings per share
|
$
|
0.62
|
$
|
0.48
|
$
|
0.94
|
$
|
1.06
|
||||||||
Weighted average number of common shares and participating preferred shares outstanding:
|
||||||||||||||||
Basic
|
7,631,914
|
7,436,633
|
7,610,082
|
7,424,282
|
||||||||||||
Diluted
|
7,856,661
|
7,800,995
|
7,848,272
|
7,798,934
|
Six Months Ended June 30,
|
||||||||
2012
|
2011
|
|||||||
Cash flows from operating activities:
|
||||||||
Net income
|
$
|
7,361
|
$
|
8,233
|
||||
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||
Depreciation and amortization
|
646
|
24
|
||||||
Stock compensation expense
|
340
|
61
|
||||||
Loss on disposal of property, plant and equipment
|
100
|
15
|
||||||
Change in fair value of derivative liability
|
(567
|
)
|
(579
|
)
|
||||
(Increase) decrease in assets:
|
||||||||
Accounts and other receivables
|
10,963
|
4,876
|
||||||
Trade deposits
|
(2,463
|
)
|
507
|
|||||
Inventories
|
(5,290
|
)
|
(5,240
|
)
|
||||
Prepaid expenses
|
17
|
180
|
||||||
Increase (decrease) in liabilities:
|
||||||||
Accounts payable
|
4,172
|
(1,166
|
)
|
|||||
Accrued expenses and other payables
|
(412
|
)
|
5
|
|||||
Income and other taxes payable
|
(670
|
)
|
(1,144
|
)
|
||||
Net cash provided by operating activities
|
$
|
14,197
|
$
|
5,772
|
||||
Cash flows from investing activities:
|
||||||||
Purchases of property, plant and equipment
|
(37
|
)
|
(46
|
)
|
||||
Acquisition of a business
|
-
|
(6,684
|
)
|
|||||
Proceeds from the sale of property, plant and equipment
|
-
|
1,179
|
||||||
Time deposits
|
-
|
3,020
|
||||||
Net cash used in investing activities
|
$
|
(37
|
)
|
$
|
(2,531
|
)
|
||
Cash flows from financing activities:
|
||||||||
Amount due to/from a director
|
(767
|
)
|
736
|
|||||
Payment of short-term debt
|
-
|
(612
|
)
|
|||||
Net cash provided by / (used in) financing activities
|
(767
|
)
|
124
|
|||||
Effect of exchange rate changes
|
103
|
296
|
||||||
Net increase in cash and cash equivalents
|
13,496
|
3,661
|
||||||
Cash and cash equivalents, beginning of period
|
14,725
|
12,013
|
||||||
Cash and cash equivalents, end of period
|
$
|
28,221
|
$
|
15,674
|
||||
Supplemental disclosure of cash flow information:
|
||||||||
Interest paid
|
$
|
-
|
$
|
8
|
||||
Income taxes paid
|
$
|
3,567
|
$
|
3,333
|