Nobility Homes, Inc. Announces Increased Sales and Earnings for Its Third Quarter 2019

OCALA, FL / ACCESSWIRE / September 9, 2019 / Today Nobility Homes, Inc. (OTCQX:NOBH) announced sales and earnings for its third quarter ended August 3, 2019. Sales for the third quarter of 2019 were up 3% to $11,785,366 as compared to $11,447,636 recorded in the third quarter of 2018. Income from operations for the third quarter of 2019 was up 57% to $2,293,141 versus $1,462,392 in the same period a year ago. Net income after taxes was up 104% to $2,543,104 as compared to $1,248,084 for the same period last year. On June 28, 2019 the Company sold its former Pace retail sales center property located in Pace, Florida for total net proceeds of $1,078,325. The Company recognized a gain on the sale of this property of $864,887. Diluted earnings per share for the third quarter of 2019 were $0.67 per share compared to $0.32 per share last year.

For the first nine months of fiscal 2019, sales were up 19% to $35,567,828 as compared to $30,015,718 for the first nine months of 2018. Income from operations was up 66% to $6,200,698 versus $3,744,496 last year. Net income after taxes was up 73% to $5,898,635 compared to $3,399,925 last year. Diluted earnings per share were $1.53 per share compared to $0.87 per share last year.

Nobility’s financial position for the first nine months of 2019 remains very strong with cash and cash equivalents, certificates of deposit and short term investments of $31,762,269 and no outstanding debt. Working capital is $37,042,814 and our ratio of current assets to current liabilities is 5.9:1. Stockholders’ equity is $48,246,860 and the book value per share of common stock outstanding increased to $12.88.

Terry Trexler, President, stated, “The demand for affordable manufactured housing in Florida continues to be strong. According to the Florida Manufactured Housing Association, shipments in Florida for the period from November 2018 through July 2019 were up approximately 19.4% 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, an insurance agency 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 @ 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

August 3,

November 3,

2019

2018

(Unaudited)

Assets

Current assets:

Cash and cash equivalents

$
21,146,880

$
28,364,861

Certificates of Deposit

10,118,833

6,034,093

Short-term investments

496,556

537,767

Accounts receivable – trade

1,993,058

1,783,073

Note receivable

67,899

46,444

Mortgage notes receivable

17,317

15,664

Inventories

9,070,508

7,270,550

Pre-owned homes, net

499,463

933,640

Prepaid expenses and other current assets

1,238,456

1,090,152

Total current assets

44,648,970

46,076,244

Property, plant and equipment, net

4,900,716

4,763,566

Pre-owned homes, net

793,671

473,191

Note receivable, less current portion

42,047

46,265

Mortgage notes receivable, less current portion

233,247

236,402

Other investments

1,631,721

1,571,166

Property held for sale

–

213,437

Deferred income taxes

–

40,156

Cash surrender value of life insurance

3,572,974

3,437,974

Other assets

156,287

Total assets

$
55,979,633

$
57,014,688

Liabilities and Stockholders’ Equity

Current liabilities:

Accounts payable

$
933,587

$
1,085,095

Accrued compensation

768,825

869,657

Accrued expenses and other current liabilities

1,943,653

1,349,381

Income taxes payable

852,236

579,786

Customer deposits

3,107,855

4,064,268

Total current liabilities

7,606,156

7,948,187

Deferred income taxes

126,617

–

Total liabilities

7,732,773

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;

3,746,570 and 3,873,731 outstanding, respectively

536,491

Additional paid in capital

10,686,657

10,670,848

Retained earnings

52,386,965

50,352,546

Accumulated other comprehensive income

349,999

390,407

Less treasury stock at cost, 1,618,337 shares in 2019 and

1,491,176 shares in 2018

(15,713,252
)

(12,883,791
)

Total stockholders’ equity

48,246,860

49,066,501

Total liabilities and stockholders’ equity

$
55,979,633

$
57,014,688

NOBILITY HOMES, INC.
Condensed Consolidated Statements of Income and Comprehensive Income
(Unaudited)

Three Months Ended

Nine Months Ended

August 3,

August 4,

August 3,

August 4,

2019

2018

2019

2018

Net sales

$
11,785,366

$
11,447,636

$
35,567,828

$
30,015,718

Cost of sales

(8,139,910)

(8,705,847)

(25,506,957)

(22,745,684)

Gross profit

3,645,456

2,741,789

10,060,871

7,270,034

Selling, general and administrative expenses

(1,352,315)

(1,279,397)

(3,860,173)

(3,525,538)

Operating income

2,293,141

1,462,392

6,200,698

3,744,496

Other income:

Interest income

134,526

99,594

431,995

216,977

Undistributed earnings in joint venture – Majestic 21

19,800

28,602

60,555

78,917

Proceeds received under escrow arrangement

76,734

117,271

289,341

172,911

Gain on sale of assets

864,887

–

880,129

203,512

Miscellaneous

10,834

10,083

33,714

22,667

Total other income

1,106,781

255,550

1,695,734

694,984

Income before provision for income taxes

3,399,922

1,717,942

7,896,432

4,439,480

Income tax expense

(856,818)

(469,858)

(1,997,797)

(1,039,555)

Net income

2,543,104

1,248,084

5,898,635

3,399,925

Other comprehensive loss

Unrealized investment loss, net of tax effect

(96,120)

(5,046)

(40,408)

(50,556)

Comprehensive income

$
2,446,984

$
1,243,038

$
5,858,227

$
3,349,369

Weighted average number of shares outstanding:

Basic

3,807,357

3,873,746

3,848,936

3,925,007

Diluted

3,808,617

3,875,897

3,850,169

3,927,066

Net income per share:

Basic

$
0.67

$
0.32

$
1.53

$
0.87

Diluted

$
0.67

$
0.32

$
1.53

$
0.87

SOURCE: Nobility Homes, Inc.

ReleaseID: 558930

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