Nobility Homes, Inc. Announces Increased Sales and Earnings for its First Quarter 2017

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

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

Cash surrender value of life insurance

3,145,915

3,085,916

Other assets

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

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

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