Date of report (Date of earliest event reported):
|
November 7, 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.)
|
(IRS Employer
Identification No.)
|
5F, No. 151 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)
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Registrant’s telephone number, including area code
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+86 (592) 2345999
|
(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)
|
o
|
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
|
(d)
|
EXHIBITS
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Exhibit
Number
|
Description
|
|
99.1
|
Press release dated November 7, 2012
|
VLOV INC.
|
||||
Date:
|
November 7, 2012
|
(Registrant)
|
||
By:
|
/s/ Bennet P. Tchaikovsky
|
|||
Bennet P. Tchaikovsky
|
||||
Chief Financial Officer
|
2012
|
2011
|
Change
|
||||||||||
Net Sales
|
$
|
62.9 million
|
$
|
57.8 million
|
+8.9
|
%
|
||||||
Gross Profit
|
$
|
29.4 million
|
$
|
25.1 million
|
+16.9
|
%
|
||||||
Income from Operations
|
$
|
15.0 million
|
$
|
11.9 million
|
+26.6
|
%
|
||||||
GAAP Net Income
|
$
|
10.4 million
|
$
|
9.8 million
|
+6.1
|
%
|
||||||
Adjusted Net Income **
|
$
|
9.7 million
|
$
|
9.0 million
|
+8.6
|
%
|
||||||
GAAP EPS (Diluted)
|
$
|
3.96
|
$
|
3.77
|
+5.0
|
%
|
||||||
Adjusted EPS (Diluted) **
|
$
|
3.71
|
$
|
3.45
|
+7.5
|
%
|
||||||
Weighted Average Diluted Shares
|
2,627,902
|
2,599,896
|
+1.1
|
%
|
Three Months Ended
|
||||||||
September 30, 2012
|
September 30, 2011
|
|||||||
GAAP Net Income
|
$
|
3.1
|
$
|
1.6
|
||||
GAAP Fully Diluted Earnings Per Share
|
$
|
1.15
|
$
|
0.62
|
||||
Addition (deduction):
|
||||||||
Change in fair value of warrants
|
$
|
(0.1
|
)
|
$
|
(0.3
|
)
|
||
Non GAAP Net Income
|
$
|
3.0
|
$
|
1.3
|
||||
Non GAAP Fully Diluted Earnings Per Share
|
$
|
1.11
|
$
|
0.52
|
||||
Shares used in computing net income per fully diluted share
|
2,651,267
|
2,600,391
|
Nine Months Ended
|
||||||||
September 30, 2012
|
September 30, 2011
|
|||||||
GAAP Net Income
|
$
|
10.4
|
$
|
9.8
|
||||
GAAP Fully Diluted Earnings Per Share
|
$
|
3.96
|
$
|
3.77
|
||||
Addition (deduction):
|
||||||||
Change in fair value of warrants
|
$
|
(0.7
|
)
|
$
|
(0.8
|
)
|
||
Non GAAP Net Income
|
$
|
9.7
|
$
|
9.0
|
||||
Non GAAP Fully Diluted Earnings Per Share
|
$
|
3.71
|
$
|
3.45
|
||||
Shares used in computing net income per fully diluted share
|
2,627,902
|
2,599,896
|
Three Months Ended
September 30,
|
Nine months Ended
September 30,
|
|||||||||||||||
2012
|
2011
|
2012
|
2011
|
|||||||||||||
Net sales
|
$
|
22,496
|
$
|
15,955
|
$
|
62,946
|
$
|
57,820
|
||||||||
Cost of sales
|
12,370
|
9,445
|
33,568
|
32,690
|
||||||||||||
Gross profit
|
10,126
|
6,510
|
29,378
|
25,130
|
||||||||||||
Operating expenses:
|
||||||||||||||||
Selling expenses
|
4,382
|
3,153
|
10,272
|
9,375
|
||||||||||||
General and administrative expenses
|
1,516
|
1,622
|
4,096
|
3,896
|
||||||||||||
5,898
|
4,775
|
14,368
|
13,271
|
|||||||||||||
Income from operations
|
4,228
|
1,735
|
15,010
|
11,859
|
||||||||||||
Other income (expenses):
|
||||||||||||||||
Change in fair value of derivative liability
|
96
|
258
|
663
|
837
|
||||||||||||
Interest income
|
23
|
15
|
66
|
72
|
||||||||||||
Interest expense
|
-
|
-
|
-
|
(8
|
)
|
|||||||||||
119
|
273
|
729
|
901
|
|||||||||||||
Income before provision for income taxes
|
4,347
|
2,008
|
15,739
|
12,760
|
||||||||||||
Provision for income taxes
|
1,295
|
400
|
5,327
|
2,950
|
||||||||||||
Net income
|
3,052
|
1,608
|
10,412
|
9,810
|
||||||||||||
Other comprehensive income:
|
||||||||||||||||
Foreign currency translation adjustment
|
(105
|
)
|
547
|
274
|
1,374
|
|||||||||||
Comprehensive income
|
$
|
2,947
|
$
|
2,155
|
$
|
10,686
|
$
|
11,184
|
||||||||
Allocation of net income for calculating basic earnings per share:
|
||||||||||||||||
Net income attributable to common shareholders
|
2,987
|
1,549
|
10,191
|
9,450
|
||||||||||||
Net income attributable to preferred shareholders
|
65
|
59
|
221
|
360
|
||||||||||||
Net income
|
$
|
3,052
|
$
|
1,608
|
$
|
10,412
|
$
|
9,810
|
||||||||
Basic earnings per share- common
|
$
|
1.16
|
$
|
0.62
|
$
|
3.99
|
$
|
3.81
|
||||||||
Diluted earnings per share
|
$
|
1.15
|
$
|
0.62
|
$
|
3.96
|
$
|
3.77
|
||||||||
Weighted average number of common shares and participating preferred shares outstanding:
|
||||||||||||||||
Basic
|
2,583,841
|
2,485,057
|
2,552,524
|
2,478,231
|
||||||||||||
Diluted
|
2,651,267
|
2,600,391
|
2,627,902
|
2,599,896
|
Nine months Ended
September 30,
|
||||||||
2012
|
2011
|
|||||||
Cash flows from operating activities:
|
||||||||
Net income
|
$
|
10,412
|
$
|
9,810
|
||||
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||
Depreciation and amortization
|
852
|
336
|
||||||
Stock compensation expense
|
464
|
81
|
||||||
Loss on disposal of property, plant and equipment
|
510
|
15
|
||||||
Change in fair value of derivative liability
|
(663)
|
(837)
|
||||||
(Increase) decrease in assets:
|
||||||||
Accounts and other receivables
|
59
|
(2,203)
|
||||||
Trade deposits
|
3,505
|
(320)
|
||||||
Inventories
|
(7,744)
|
(3,358)
|
||||||
Prepaid expenses
|
26
|
110
|
||||||
Increase (decrease) in liabilities:
|
||||||||
Accounts payable
|
559
|
(352)
|
||||||
Accrued expenses and other payables
|
(119)
|
824
|
||||||
Income and other taxes payable
|
(974)
|
(1,394)
|
||||||
Net cash provided by operating activities
|
$
|
6,887
|
$
|
2,712
|
||||
Cash flows from investing activities:
|
||||||||
Purchases of property, plant and equipment
|
(551)
|
(983)
|
||||||
Acquisition of a business
|
-
|
(6,684)
|
||||||
Proceeds from the sale of property, plant and equipment
|
-
|
1,188
|
||||||
Time deposits
|
-
|
3,020
|
||||||
Net cash used in investing activities
|
$
|
(551)
|
$
|
(3,459)
|
||||
Cash flows from financing activities:
|
||||||||
Amount due to/from a director
|
(523)
|
1,026
|
||||||
Payment of short-term debt
|
-
|
(616)
|
||||||
Net cash provided by / (used in) financing activities
|
(523)
|
410
|
||||||
Effect of exchange rate changes
|
70
|
453
|
||||||
Net increase in cash and cash equivalents
|
5,883
|
116
|
||||||
Cash and cash equivalents, beginning of period
|
14,725
|
12,013
|
||||||
Cash and cash equivalents, end of period
|
$
|
20,608
|
$
|
12,129
|
||||
Supplemental disclosure of cash flow information:
|
||||||||
Income taxes paid
|
$
|
5,151
|
$
|
4,345
|