Nobility Homes, Inc. Announces Increased Sales and Earnings for its First Quarter 2019

Nobility Homes, Inc.

Companies Mentioned:

Primary Exchange: OTCQX
Under the Symbol: NOBH

Nobility Homes, Inc. Announces Increased Sales and Earnings for its First Quarter 2019

Friday, March 8, 2019 10:00 AM

OCALA, FL / ACCESSWIRE / March 8, 2019 / Today Nobility Homes, Inc. (OTCQX: NOBH) announced increased sales and earnings for its first quarter ended February 2, 2019. Sales for the first quarter of 2019 were up 14% to $11,039,774 as compared to $9,645,818 recorded in the first quarter of 2018. Income from operations for the first quarter of 2019 was up 63% to $1,771,831 versus $1,090,157 in the same period a year ago. Net income after taxes was $1,535,806 as compared to $1,016,236 for the same period last year. Diluted earnings per share for the first quarter of 2019 were $0.40 per share compared to $0.25 per share last year.

Nobility's financial position during the first quarter 2019 remains very strong with cash and cash equivalents, certificates of deposit and short term investments of $34,607,512 and no outstanding debt. Working capital is $39,500,850 and our ratio of current assets to current liabilities is 6.4:1. Stockholders' equity is $50,586,516 and the book value per share of common stock increased to $13.06.

The Board of Directors declared a one-time cash dividend of $1.00 per common share for fiscal year 2018. The cash dividend is payable on March 29, 2019 to stockholders of record as of March 15, 2019. Nobility Homes has distributed one-time cash dividends of $.15 and $.20 in fiscal years ending 2016 and 2017, respectively.

The Company has no defined dividend policy. The Board of Directors maintains the authority to declare distributions at their discretion. The Board performs a thorough and extensive evaluation of the Company's balance sheet, cash flow, operating performance, and future earnings prospects when considering the declaration of any common dividend.

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 2018 through January 2019 were up approximately 40% 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, recent 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. We are pleased that the Board of Directors has chosen to share our Company's success with its shareholders in the form of another annual cash dividend.

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 will 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 221 OR [email protected] OR [email protected].

Certain statements in this report are unaudited or forward-looking statements within the meaning of the federal securities laws. Although Nobility believes that the amounts and 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

February 2,

November 3,

2019

2018

(Unaudited)



Assets






Current assets:






Cash and cash equivalents
$ 28,018,644 $ 28,364,861
Certificates of deposit
6,067,641 6,034,093
Short-term investments
521,227 537,767
Accounts receivable - trade
1,903,558 1,783,073
Note receivable
46,444 46,444
Mortgage notes receivable
16,161 15,664
Inventories
8,043,359 7,270,550
Pre-owned homes, net
878,741 933,640
Prepaid expenses and other current assets
1,334,793 1,090,152
Total current assets
46,830,568 46,076,244








Property, plant and equipment, net
4,919,197 4,763,566
Pre-owned homes, net
412,126 473,191
Note receivable, less current portion
35,426 46,265
Mortgage notes receivable, less current portion
235,373 236,402
Other investments
1,590,690 1,571,166
Property held for sale
213,437 213,437
Deferred income taxes
40,156 40,156
Cash surrender value of life insurance
3,482,974 3,437,974
Other assets
156,287 156,287
Total assets
$ 57,916,234 $ 57,014,688








Liabilities and Stockholders' Equity








Current liabilities:








Accounts payable
$ 1,038,014 $ 1,085,095
Accrued compensation
504,818 869,657
Accrued expenses and other current liabilities
1,395,877 1,349,381
Income taxes payable
521,184 579,786
Customer deposits
3,869,825 4,064,268
Total current liabilities
7,329,718 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;








3,873,731 outstanding
536,491 536,491
Additional paid in capital
10,671,598 10,670,848
Retained earnings
51,888,351 50,352,546
Accumulated other comprehensive income
373,867 390,407
Less treasury stock at cost, 1,491,176 shares in 2019 and








2018, respectively
(12,883,791)
(12,883,791)
Total stockholders' equity
50,586,516 49,066,501
Total liabilities and stockholders' equity
$ 57,916,234 $ 57,014,688


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


Three Months Ended

February 2,

February 3,

2019

2018






Net sales
$ 11,039,774 $ 9,645,818








Cost of goods sold
(8,070,771)
(7,428,879)








Gross profit
2,969,003 2,216,939








Selling, general and administrative expenses
(1,197,172)
(1,126,782)








Operating income
1,771,831 1,090,157








Other income:








Interest income
152,443 35,937
Undistributed earnings in joint venture - Majestic 21
19,524 23,049
Proceeds received under escrow agreement
104,488 -
Miscellaneous
8,918 5,734
Total other income
285,373 64,720








Income before provision for income taxes
2,057,204 1,154,877








Income tax expense
(521,398)
(138,641)








Net income
1,535,806 1,016,236








Other comprehensive (loss) income








Unrealized investment (loss) gain, net of tax effect
(16,540)
22,347








Comprehensive income
$ 1,519,266 $ 1,038,583








Weighed average number of shares outstanding:








Basic
3,873,731 3,997,371
Diluted
3,875,952 3,999,202








Net income per share:








Basic
$ 0.40 $ 0.25
Diluted
$ 0.40 $ 0.25

SOURCE: Nobility Homes, Inc.


SHARE ARTICLE