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

OCALA, FL / ACCESSWIRE / September 14, 2018 / Today, Nobility Homes, Inc. (OTCQX: NOBH) announced sales and earnings for its third quarter ended August 4, 2018. Sales for the third quarter of 2018 were up 29% to $11,447,636 as compared to $8,906,385 recorded in the third quarter of 2017. Income from operations for the third quarter of 2018 was up 56% to $1,462,392 versus $934,854 in the same period a year ago. Net income after taxes was $1,248,084 as compared to $669,883 for the same period last year. Diluted earnings per share for the third quarter of 2018 were $0.32 per share compared to $0.17 per share last year.

For the first nine months of fiscal 2018, sales were up 9% to $30,015,718 as compared to $27,525,855 for the first nine months of 2017. Income from operations was up 15% to $3,744,496 versus $3,267,938 last year. Net income after taxes was $3,399,925 compared to $2,480,715 last year. Diluted earnings per share were $0.87 per share compared to $0.62 per share last year.

Nobility’s financial position for the first nine months of 2018 remains very strong with cash and cash equivalents, certificates of deposit and short term investments of $33,052,738 and no outstanding debt. Working capital is $36,515,997 and our ratio of current assets to current liabilities is 5.8:1. Stockholders’ equity is $47,473,623 and the book value per share of common stock outstanding increased to $12.26.

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 July 2018 were up approximately 18% 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.

We understand that 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, 2018 the Company celebrated its 51st 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, 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.
Consolidated Balance Sheets

August 4,

November 4,

2018

2017

(Unaudited)

Assets

Current assets:

Cash and cash equivalents

30,488,854

27,910,504

Certificates of Deposit

2,006,436

–

Short-term investments

557,448

627,087

Accounts receivable – trade

1,644,991

2,934,300

Note receivable

46,444

500,000

Mortgage notes receivable

15,095

13,495

Inventories

7,130,866

7,505,681

Pre-owned homes, net

1,066,126

1,141,863

Prepaid expenses and other current assets

1,112,899

820,224

Deferred income taxes

–

609,629

Total current assets

44,069,159

42,062,783

Property, plant and equipment, net

4,811,887

4,304,771

Pre-owned homes, net

527,624

815,358

Interest receivable

–

101,301

Note receivable, less current portion

52,690

1,134,086

Mortgage notes receivable, less current portion

237,409

240,297

Other investments

1,549,946

1,471,029

Property held for sale

213,437

599,455

Deferred income taxes

10,497

–

Cash surrender value of life insurance

3,397,849

3,262,848

Other assets

156,287

Total assets

55,026,785

54,148,215

Liabilities and Stockholders’ Equity

Current liabilities:

Accounts payable

763,760

849,782

Accrued compensation

736,763

624,989

Accrued expenses and other current liabilities

1,063,821

1,127,397

Income taxes payable

526,263

260,416

Customer deposits

4,462,555

2,796,827

Total current liabilities

7,553,162

5,659,411

Deferred income taxes

–

1,074,507

Total liabilities

7,553,162

6,733,918

Commitments and contingent liabilities

Preferred stock, $.10 par value, 500,000 shares authorized; none issued and outstanding 3,873,731 and 3,997,569 outstanding, respectively

–

Common stock, $.10 par value, 10,000,000 shares authorized; 5,364,907 shares issued; 3,873,731 and 3,997,569 outstanding, respectively

536,491

Additional paid in capital

10,670,407

10,669,231

Retained earnings

48,788,839

46,167,528

Accumulated other comprehensive income

361,677

412,233

Less treasury stock at cost, 1,491,176 shares in 2018 and

1,367,338 shares in 2017

(12,883,791

)

(10,371,186

)

Total stockholders’ equity

47,473,623

47,414,297

Total liabilities and stockholders’ equity

55,026,785

54,148,215

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

Three Months Ended

Nine Months Ended

Aug 4,

Aug 5,

Aug 4,

Aug 5,

2018

2017

2018

2017

Net sales

$
11,447,636

$
8,906,385

$
30,015,718

$
27,525,855

Cost of goods sold

(8,705,847
)

(6,942,792
)

(22,745,684
)

(21,139,315
)

Gross profit

2,741,789

1,963,593

7,270,034

6,386,540

Selling, general and administrative expenses

(1,279,397
)

(1,028,729
)

(3,525,538
)

(3,118,602
)

Operating income

1,462,392

934,864

3,744,496

3,267,938

Other income:

Interest income

99,594

33,543

216,977

105,347

Undistributed earnings in joint venture – Majestic 21

28,602

24,037

78,917

80,758

Proceeds received under escrow arrangement

117,271

72,867

172,911

298,824

Gain on property held for resale

–

203,512

–

Miscellaneous

10,083

18,749

22,667

33,411

Total other income

255,550

149,196

694,984

518,340

Income before provision for income taxes

1,717,942

1,084,060

4,439,480

3,786,278

Income tax expense

(469,858
)

(414,177
)

(1,039,555
)

(1,305,563
)

Net income

1,248,084

669,883

3,399,925

2,480,715

Other comprehensive income (loss)

Unrealized investment gain (loss), net of tax effect

(5,046
)

21,081

(50,556
)

149,706

Comprehensive income

$
1,243,038

$
690,964

$
3,349,369

$
2,630,421

Weighted average number of shares outstanding:

Basic

3,873,746

4,003,096

3,925,007

4,004,058

Diluted

3,875,897

4,004,387

3,927,066

4,005,325

Net income per share:

Basic

$
0.32

$
0.17

$
0.87

$
0.62

Diluted

$
0.32

$
0.17

$
0.87

$
0.62

SOURCE: Nobility Homes, Inc.

ReleaseID: 511988

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