Nobility Homes, Inc. Announces Increased Sales and Earnings for Its First Quarter 2018

OCALA, FL / ACCESSWIRE / March 16, 2018 / Today, Nobility Homes, Inc. (OTCQX: NOBH) announced increased sales and earnings for its first quarter ended February 3, 2018. Sales for the first quarter of 2018 were up 13% to $9,645,818, as compared to $8,573,400 recorded in the first quarter of 2017. Income from operations for the first quarter of 2018 was up 3% to $1,090,157, versus $1,056,477 in the same period a year ago. Net income after taxes was $1,016,236, as compared to $703,323 for the same period last year. Diluted earnings per share for the first quarter of 2018 were $0.25 per share, compared to $0.18 per share last year.

Nobility’s financial position during the first quarter 2018 remains very strong with cash and cash equivalents and short term investments of $27,918,057 and no outstanding debt. Working capital is $36,086,489 and our ratio of current assets to current liabilities is 8.5:1. Stockholders’ equity is $48,358,821 and the book value per share of common stock increased to $12.11.

The Board of Directors declared a one-time cash dividend of $.20 per common share for fiscal year 2017. The cash dividend is payable on April 16, 2018 to stockholders of record as of March 26, 2018.

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 2017 through January 2018 were up approximately 3% from the same period last year. Our sales for fiscal 2018 continue to look positive. Shipment of homes in our market area should improve and, if we can adequately control the material and labor cost increases that the Company is experiencing because of the improvements in the total housing picture, then earnings should also improve. Constrained consumer credit and the lack of lenders in our industry, partly as a result of an increase in government regulations, still affect our results by limiting many manufactured housing buyers from purchasing affordable homes.

We understand that 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 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 homebuyers’ 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, 2017, the Company celebrated its 50th 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 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 3,

November 4,

2018

2017

(Unaudited)

Assets

Current assets:

Cash and cash equivalents

$
27,260,188

$
27,910,504

Short-term investments

657,869

627,087

Accounts receivable – trade

3,309,542

2,934,300

Note receivable

500,000

Mortgage notes receivable

13,910

13,495

Income tax receivable

250,927

–

Inventories

6,857,100

7,505,681

Pre-owned homes, net

809,569

1,141,863

Prepaid expenses and other current assets

1,236,587

820,224

Deferred income taxes

–

609,629

Total current assets

40,895,692

42,062,783

Property, plant and equipment, net

4,660,678

4,304,771

Pre-owned homes, net

904,357

815,358

Interest receivable

112,744

101,301

Note receivable, less current portion

1,150,826

1,134,086

Mortgage notes receivable, less current portion

239,356

240,297

Other investments

1,494,078

1,471,029

Property held for sale

599,455

Deferred income taxes

414,815

–

Cash surrender value of life insurance

3,307,848

3,262,848

Other assets

156,287

Total assets

$
53,936,136

$
54,148,215

Liabilities and Stockholders’ Equity

Current liabilities:

Accounts payable

$
736,627

$
849,782

Accrued compensation

560,773

624,989

Accrued expenses and other current liabilities

910,651

1,127,397

Income taxes payable

–

260,416

Customer deposits

2,601,152

2,796,827

Total current liabilities

4,809,203

5,659,411

Deferred income taxes

768,112

1,074,507

Total liabilities

5,577,315

6,733,918

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

10,669,672

10,669,231

Retained earnings

47,183,764

46,167,528

Accumulated other comprehensive income

434,580

412,233

Less treasury stock at cost, 1,371,838 shares in 2018 and

1,367,338 shares in 2017

(10,465,686)

(10,371,186)

Total stockholders’ equity

48,358,821

47,414,297

Total liabilities and stockholders’ equity

$
53,936,136

$
54,148,215

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

Three Months Ended

February 3,

February 4,

2018

2017

Net sales

$
9,645,818

$
8,573,400

Cost of goods sold

(7,428,879)

(6,549,336)

Gross profit

2,216,939

2,024,064

Selling, general and administrative expenses

(1,126,782)

(967,587)

Operating income

1,090,157

1,056,477

Other income:

Interest income

35,937

40,447

Undistributed earnings in joint venture – Majestic 21

23,049

28,598

Miscellaneous

5,734

4,771

Total other income

64,720

73,816

Income before provision for income taxes

1,154,877

1,130,293

Income tax expense

(138,641)

(426,970)

Net income

1,016,236

703,323

Other comprehensive income

Unrealized investment gain

22,347

115,167

Comprehensive income

$
1,038,583

$
818,490

Weighed average number of shares outstanding:

Basic

3,997,371

4,004,238

Diluted

3,999,202

4,005,538

Net income per share:

Basic

$
0.25

$
0.18

Diluted

$
0.25

$
0.18

SOURCE: Nobility Homes, Inc.

ReleaseID: 493331

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