OCALA, FL / ACCESSWIRE / December 19, 2019 / Today, Nobility Homes, Inc. (OTCQX:NOBH) announced increased sales and earnings results for its fiscal year ended November 2, 2019. Sales for fiscal year 2019 were up 11% to $47.3 million as compared to $42.8 million recorded in fiscal year 2018. Income from operations, up 45% for fiscal year 2019, was $8.3 million versus $5.7 million in the same period a year ago. Net income after taxes was $8.8 million as compared to $5.0 million for the same period last year. In June 2019 the Company sold its former Pace retail sales center property located in Pace, Florida for total net proceeds of $1.1 million and in October 2019 the Company sold its interest in Walden Woods South for total net proceeds of $1.5 million. Diluted earnings per share for fiscal year 2019 were $2.32 per share compared to $1.27 per share last year.
For the fourth quarter of fiscal 2019, sales were $11.8 million as compared to $12.8 million in the fourth quarter of last fiscal year. Income from operations for the fourth quarter of 2019 was up 6% to $2.1 million versus $2.0 million in the same period last year. Net income after taxes was $2.9 million versus last year's results of $1.6 million. Diluted earnings per share for the fourth quarter were $0.79 per share versus earnings of $0.40 per share last year.
Nobility's financial position during fiscal year 2019 remained very strong with cash and cash equivalents, short term investments and certificates of deposit of $33.2 million and no outstanding debt. Working capital is $38.1 million and our ratio of current assets to current liabilities is 5.2:1. Stockholders' equity is $49.5 million and the book value per share of common stock increased to $13.50.
Terry Trexler, President, stated, "The demand for affordable manufactured housing in Florida continues to be good. According to the Florida Manufactured Housing Association, shipments in Florida for the period from November 2018 through October 2019 were up approximately 17% from the same period last year. Constrained consumer credit and the lack of lenders in our industry, partly as a result of an increase in government regulations, still affects our results by limiting many affordable manufactured housing buyers from purchasing homes. However, legislation may help improve this situation in the future.
Maintaining our strong financial position is vital for future growth and success. Because of very challenging business conditions during economic recessions in our market area, management will continue 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".
On June 5, 2019 the Company celebrated its 52nd anniversary in business specializing in the design and production of quality, affordable manufactured homes. With multiple retail sales centers and an insurance agency subsidiary, 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 @ 800-476-6624 EXT 121 OR TERRY@NOBILITYHOMES.COM OR TOM@NOBILITYHOMES.COM
Certain statements in this report are unaudited or 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, impact of mandated tariffs on material prices, market disruptions resulting from terrorist or other attack and any armed conflict involving the United States and the impact of inflation.
NOBILITY HOMES, INC.
Condensed Consolidated Balance Sheets
November 2,
November 3,
2019
2018
(Unaudited)
Assets
Current assets:
Cash and cash equivalents
$
22,533,965
$
28,364,861
Certificates of Deposit
10,153,575
6,034,093
Short-term investments
521,283
537,767
Accounts receivable – trade
1,351,838
1,783,073
Note receivable
83,231
46,444
Mortgage notes receivable
17,896
15,664
Inventories
10,616,778
7,270,550
Pre-owned homes, net
331,103
933,640
Prepaid expenses and other current assets
1,399,527
1,090,152
Total current assets
47,009,196
46,076,244
Property, plant and equipment, net
4,823,879
4,763,566
Pre-owned homes, net
808,128
473,191
Note receivable, less current portion
43,769
46,265
Mortgage notes receivable, less current portion
232,148
236,402
Other investments
1,649,273
1,571,166
Property held for sale
–
213,437
Deferred income taxes
80,405
40,156
Cash surrender value of life insurance
3,617,975
3,437,974
Other assets
156,287
156,287
Total assets
$
58,421,060
$
57,014,688
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable
$
1,111,216
$
1,085,095
Accrued compensation
748,626
869,657
Accrued expenses and other current liabilities
2,055,949
1,349,381
Income taxes payable
2,016,132
579,786
Customer deposits
3,022,818
4,064,268
Total current liabilities
8,954,741
7,948,187
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;
3,664,070 and 3,873,731 outstanding, respectively
536,491
536,491
Additional paid in capital
10,687,662
10,670,848
Retained earnings
55,298,754
50,352,546
Accumulated other comprehensive income
389,164
390,407
Less treasury stock at cost, 1,700,837 shares in 2019 and
1,491,176 shares in 2018
(17,445,752
)
(12,883,791
)
Total stockholders' equity
49,466,319
49,066,501
Total liabilities and stockholders' equity
$
58,421,060
$
57,014,688
NOBILITY HOMES, INC.
Condensed Consolidated Statements of Income and Comprehensive Income
(Unaudited)
Three Months Ended
Twelve Months Ended
Nov 2,
Nov 3,
Nov 2,
Nov 3,
2019
2018
2019
2018
Net sales
$
11,780,803
$
12,796,547
$
47,348,631
$
42,812,265
Cost of sales
(8,188,674
)
(9,386,554
)
(33,695,631
)
(32,132,238
)
Gross profit
3,592,129
3,409,993
13,653,000
10,680,027
Selling, general and administrative expenses
(1,492,146
)
(1,431,663
)
(5,352,319
)
(4,957,201
)
Operating income
2,099,983
1,978,330
8,300,681
5,722,826
Other income:
Interest income
124,147
145,144
556,142
362,121
Undistributed earnings in joint venture – Majestic 21
17,552
21,220
78,107
100,137
Proceeds received under escrow arrangement
89,763
–
379,104
172,911
Gain on sale of assets
1,510,000
–
2,390,129
203,512
Miscellaneous
41,652
21,288
75,366
43,955
Total other income
1,783,114
187,652
3,478,848
882,636
Income before provision for income taxes
3,883,097
2,165,982
11,779,529
6,605,462
Income tax expense
(971,312
)
(602,275
)
(2,969,109
)
(1,641,830
)
Net income
2,911,785
1,563,707
8,810,420
4,963,632
Other comprehensive income (loss)
Unrealized investment income (loss), net of tax effect
45,432
28,730
5,024
(21,826
)
Comprehensive income
$
2,957,217
$
1,592,437
$
8,815,444
$
4,941,806
Weighted average number of shares outstanding:
Basic
3,666,790
3,873,731
3,803,400
3,912,188
Diluted
3,668,170
3,876,034
3,804,673
3,914,312
Net income per share:
Basic
$
0.79
$
0.40
$
2.32
$
1.27
Diluted
$
0.79
$
0.40
$
2.32
$
1.27
SOURCE: Nobility Homes, Inc.
ReleaseID: 570802
