Nobility Homes, Inc. Announces Sales and Earnings for its Fiscal Year 2017

OCALA, FL / ACCESSWIRE / December 29, 2017 / Today Nobility Homes, Inc. (OTCQX: NOBH) announced sales and earnings results for its fiscal year ended November 4, 2017. Sales for fiscal year 2017 were up 10% to $37,543,071 as compared to $34,053,290 recorded in fiscal year 2016. Income from operations, up 5% for fiscal year 2017, was $4,355,874 versus $4,153,799 in the same period a year ago. Net income after taxes was $3,309,983 as compared to $5,965,194 for the same period last year. In fiscal year of 2017, we received payments under an escrow arrangement related to the Finance Revenue Sharing Agreement between 21st Mortgage Corporation and the Company resulting in revenue of $504,548. In the second quarter of 2016 the Company sold its limited partnership interest in CRF III, Ltd. (“Cypress Creek”), a retirement community, which resulted in a gain of $3,990,000 and also received revenue of $788,566 under an escrow arrangement related to the Finance Revenue Sharing Agreement between 21st Mortgage Corporation and the Company. Diluted earnings per share for fiscal year 2017 were $0.83 per share compared to $1.48 per share last year.

For the fourth quarter of fiscal 2017, sales were up 14% to $10,017,216 as compared to $8,783,779 in the fourth quarter of last fiscal year. Income from operations for the fourth quarter of 2017 was $1,087,936 versus $983,697 in the same period last year. Net income after taxes was $829,268 versus last year’s results of $720,641. Diluted earnings per share for the fourth quarter were $0.21 per share versus earnings of $0.18 per share last year.

Nobility’s financial position during fiscal year 2017 remains very strong with cash and cash equivalents and short term investments of $28,537,591 and no outstanding debt. Working capital is $36,403,372 and our ratio of current assets to current liabilities is 7.4:1. Stockholders’ equity is $47,414,297 and the book value per share of common stock increased to $11.86.

Terry Trexler, President, stated, “The demand for affordable manufactured housing in Florida and the U.S. is improving. According to the Florida Manufactured Housing Association, shipments in Florida for the period from November 2016 through October 2017 were up approximately 6% from the same period last year. Our sales for fiscal 2018 continues to look positive. Shipment of homes in our market area should improve and, if we can adequately control the material and labor costs 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 affects our results by limiting many affordable manufactured housing buyers from purchasing homes.

We understand that during this economic environment, 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 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, 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, continued excess retail inventory, increase in repossessions, 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, impact of labor shortage, impact of materials shortage, increasing labor cost, cyclical nature of the manufactured housing industry, impact of rising 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

November 4,

November 5,

2017

2016

(Unaudited)

Assets

Current assets:

Cash and cash equivalents

$
27,910,504

$
24,562,638

Short-term investments

627,087

481,025

Accounts receivable – trade

2,934,300

2,641,763

Note receivable

500,000

Mortgage notes receivable

13,495

9,717

Inventories

7,505,681

6,969,081

Pre-owned homes, net

1,141,863

1,295,694

Property held for sale

–

213,437

Prepaid expenses and other current assets

820,224

638,939

Deferred income taxes

609,629

556,773

Total current assets

42,062,783

37,869,067

Property, plant and equipment, net

4,304,771

4,063,711

Pre-owned homes, net

815,358

1,733,610

Interest receivable

101,301

48,376

Note receivable, less current portion

1,134,086

2,030,000

Mortgage notes receivable, less current portion

240,297

174,270

Other investments

1,471,029

1,367,496

Property held for sale

599,455

386,018

Cash surrender value of life insurance

3,262,848

3,085,916

Other assets

156,287

Total assets

$
54,148,215

$
50,914,751

Liabilities and Stockholders’ Equity

Current liabilities:

Accounts payable

$
849,782

$
835,279

Accrued compensation

624,989

682,815

Accrued expenses and other current liabilities

1,127,397

1,123,698

Income taxes payable

260,416

759,128

Customer deposits

2,796,827

1,706,795

Total current liabilities

5,659,411

5,107,715

Deferred income taxes

1,074,507

1,140,529

Total liabilities

6,733,918

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

10,669,231

10,663,348

Retained earnings

46,167,528

43,458,271

Accumulated other comprehensive income

412,233

266,171

Less treasury stock at cost, 1,367,338 shares in 2017 and

1,361,300 shares in 2016

(10,371,186
)

(10,257,774
)

Total stockholders’ equity

47,414,297

44,666,507

Total liabilities and stockholders’ equity

$
54,148,215

$
50,914,751

NOBILITY HOMES, INC.

Consolidated Statements of Comprehensive Income

Unaudited

Three Months Ended

Twelve Months Ended

Nov 4,

Nov 5,

Nov 4,

Nov 5,

2017

2016

2017

2016

Net sales

$
10,017,216

$
8,783,779

$
37,543,071

$
34,053,290

Cost of goods sold

(7,742,677
)

(6,750,198
)

(28,881,992
)

(26,117,155
)

Gross profit

2,274,539

2,033,581

8,661,079

7,936,135

Selling, general and administrative expenses

(1,186,603
)

(1,049,884
)

(4,305,205
)

(3,782,336
)

Operating income

1,087,936

983,697

4,355,874

4,153,799

Other income

Interest income

44,266

35,556

149,613

112,802

Undistributed earnings in joint venture – Majestic 21

22,775

26,233

103,533

123,772

Proceeds received under escrow arrangement

205,724

–

504,548

788,566

Gain on sale of investment in retirement community

–

3,990,000

Miscellaneous

21,271

(10,107
)

54,682

15,297

Total other income

294,036

51,682

812,376

5,030,437

Income before provision for income taxes

1,381,972

1,035,379

5,168,250

9,184,236

Income tax expense

(552,704
)

(314,738
)

(1,858,267
)

(3,219,042
)

Net income

829,268

720,641

3,309,983

5,965,194

Other comprehensive income (loss)

Unrealized investment gain (loss)

(3,644
)

58,874

146,062

18,447

Comprehensive income

$
825,624

$
779,515

$
3,456,045

$
5,983,641

Weighted average number of shares outstanding:

Basic

3,997,569

4,013,583

4,002,436

4,021,019

Diluted

3,999,085

4,015,159

4,003,768

4,022,083

Net income per share:

Basic

$
0.21

$
0.18

$
0.83

$
1.48

Diluted

$
0.21

$
0.18

$
0.83

$
1.48

Source: Nobility Homes, Inc.

ReleaseID: 485130

Go Top