OCALA, FL / ACCESSWIRE / March 16, 2017 / Today, Nobility Homes, Inc. (OTCQX: NOBH) announced increased sales and earnings results for its first quarter ended February 4, 2017. Sales for first quarter 2017 were up 16% to $8,573,400, as compared to $7,374,050 recorded in first quarter 2016. Income from operations for first quarter 2017 was $1,056,477 versus $975,741 in the same period a year ago. Net income after taxes was $703,323, as compared to $678,401 for the same period last year. Diluted earnings per share for first quarter 2017 were $0.18 per share, compared to $0.17 per share last year.
Nobility’s financial position during first quarter 2017 remains very strong with cash and cash equivalents and short term investments of $25,962,722 and no outstanding debt. Working capital is $34,248,039 and our ratio of current assets to current liabilities is 8.5:1. Stockholders’ equity is $45,498,192 and the book value per share of common stock increased to $11.36.
The Board of Directors declared a one-time cash dividend of $.15 per common share for fiscal year 2016, on March 10, 2017. The cash dividend is payable on April 17, 2017 to stockholders of record as of March 27, 2017.
Terry Trexler, President, stated, “The demand for affordable manufactured housing in Florida and the U.S. continues to improve. According to the Florida Manufactured Housing Association, shipments in Florida for the period from November 2016 through January 2017 were up approximately 8.9% from the same period last year. Our sales and earnings continue to be affected by the lack of available retail and wholesale financing. Constrained consumer credit and the lack of lenders in the industry, partly as a result of an increase in government regulations, have limited many affordable manufactured housing buyers from purchasing homes.
We believe maintaining our strong financial position is vital for future growth and success. Because of the recent years of very challenging business conditions in our market area, management continues to evaluate all expenses and react in a manner consistent with maintaining our strong financial position, while exploring opportunities to expand our distribution and manufacturing operations.
Our many years of experience in the Florida market, combined with home buyers’ increased need for more affordable housing, should serve the Company well in the coming years. Management remains convinced that our specific geographic market is one of the best long-term growth areas in the country.”
The Company has specialized for over 49 years in the design and production of quality, affordable manufactured homes at its plant located in central Florida. With multiple retail sales centers, an insurance subsidiary, and an investment in a retirement manufactured home community, we are the only vertically integrated manufactured home company headquartered in Florida.
MANAGEMENT WILL NOT HOLD A CONFERENCE CALL. IF YOU HAVE ANY QUESTIONS, PLEASE CALL TERRY OR TOM TREXLER AT 800-476-6624 EXT 221, OR TERRY@NOBILITYHOMES.COM OR TOM@NOBILITYHOMES.COM.
Certain statements in this report are forward-looking statements within the meaning of the federal securities laws. Although Nobility believes that the expectations reflected in such forward-looking statements are based on reasonable assumptions, there are risks and uncertainties that may cause actual results to differ materially from expectations. These risks and uncertainties include, but are not limited to, competitive pricing pressures at both the wholesale and retail levels, increasing material costs, uncertain economic conditions, changes in market demand, changes in interest rates, availability of financing for retail and wholesale purchasers, consumer confidence, adverse weather conditions that reduce sales at retail centers, the risk of manufacturing plant shutdowns due to storms or other factors, the impact of marketing and cost-management programs, reliance on the Florida economy, possible labor shortages, possible materials shortages, increasing labor cost, cyclical nature of the manufactured housing industry, impact of fuel costs, catastrophic events impacting insurance costs, availability of insurance coverage for various risks to Nobility, market demographics, management’s ability to attract and retain executive officers and key personnel, increased global tensions, market disruptions resulting from terrorist or other attack and any armed conflict involving the United States and the impact of inflation.
NOBILITY HOMES, INC.
Consolidated Balance Sheets
February 4,
November 5,
2017
2016
Assets
Current assets:
Cash and cash equivalents
$
25,366,530
$
24,562,638
Short-term investments
596,192
481,025
Accounts receivable – trade
2,367,120
2,641,763
Note receivable
–
500,000
Mortgage notes receivable
10,596
9,717
Inventories
7,573,643
6,969,081
Pre-owned homes, net
1,617,393
1,295,694
Property held for sale
213,437
213,437
Prepaid expenses and other current assets
646,108
638,939
Deferred income taxes
443,859
556,773
Total current assets
38,834,878
37,869,067
Property, plant and equipment, net
4,096,400
4,063,711
Pre-owned homes, net
1,132,964
1,733,610
Interest receivable
66,970
48,376
Note receivable, less current portion
1,530,000
2,030,000
Mortgage notes receivable, less current portion
173,391
174,270
Other investments
1,396,094
1,367,496
Property held for sale
386,018
386,018
Cash surrender value of life insurance
3,145,915
3,085,916
Other assets
156,287
156,287
Total assets
$
50,918,917
$
50,914,751
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable
$
771,477
$
835,279
Accrued compensation
506,641
682,815
Accrued expenses and other current liabilities
879,927
1,123,698
Income taxes payable
304,827
759,128
Customer deposits
2,123,967
1,706,795
Total current liabilities
4,586,839
5,107,715
Deferred income taxes
833,886
1,140,529
Total liabilities
5,420,725
6,248,244
Commitments and contingent liabilities
Stockholders’ equity:
Preferred stock, $.10 par value, 500,000 shares
authorized; none issued and outstanding
–
–
Common stock, $.10 par value, 10,000,000
shares authorized; 5,364,907 shares issued
536,491
536,491
Additional paid in capital
10,667,908
10,663,348
Retained earnings
44,161,594
43,458,271
Accumulated other comprehensive income
381,338
266,171
Less treasury stock at cost, 1,360,067 shares in 2017 and
1,361,300 shares in 2016
(10,249,139
)
(10,257,774
)
Total stockholders’ equity
45,498,192
44,666,507
Total liabilities and stockholders’ equity
$
50,918,917
$
50,914,751
NOBILITY HOMES, INC.
Consolidated Statements of Comprehensive Income
Three Months Ended
February 4,
January 30,
2017
2016
Net sales
$
8,573,400
$
7,374,050
Cost of goods sold
(6,549,336
)
(5,617,615
)
Gross profit
2,024,064
1,756,435
Selling, general and administrative expenses
(967,587
)
(780,694
)
Operating income
1,056,477
975,741
Other income:
Interest income
40,447
12,047
Undistributed earnings in joint venture – Majestic 21
28,598
33,408
Miscellaneous
4,771
9,769
Total other income
73,816
55,224
Income before provision for income taxes
1,130,293
1,030,965
Income tax expense
(426,970
)
(352,564
)
Net income
703,323
678,401
Other comprehensive income (loss)
Unrealized investment gain (loss)
115,167
(69,639
)
Comprehensive income
$
818,490
$
608,762
Basic
4,004,238
4,025,316
Diluted
4,005,538
4,025,952
Net income per share:
Basic
$
0.18
$
0.17
Diluted
$
0.18
$
0.17
SOURCE: Nobility Homes, Inc.
ReleaseID: 457498
