Nobility Homes, Inc. Announces Sales and Earnings for Its First Quarter 2021
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Nobility Homes, Inc. Announces Sales and Earnings for Its First Quarter 2021

Friday, March 12, 2021 10:00 AM
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OCALA, FL / ACCESSWIRE / March 12, 2021 / Today Nobility Homes, Inc. (OTCQX:NOBH) announced sales and earnings for its first quarter ended January 30, 2021. Sales for the first quarter of 2021 were $9,071,511 as compared to $9,443,852 recorded in the first quarter of 2020. Income from operations for the first quarter of 2021 was $1,224,066 versus $1,633,705 in the same period a year ago. Net income after taxes was $1,065,765 as compared to $1,400,141 for the same period last year. Diluted earnings per share for the first quarter of 2021 were $0.29 per share compared to $0.38 per share last year.

Nobility's financial position during the first quarter 2021 remains very strong with cash and cash equivalents, certificates of deposit and short term investments of $36,484,550 and no outstanding debt. Working capital is $39,420,939 and our ratio of current assets to current liabilities is 4.7:1. Stockholders' equity is $52,042,687 and the book value per share of common stock increased to $14.33.

The Board of Directors declared a one-time cash dividend of $1.00 per common share for fiscal year 2020. The cash dividend is payable on March 26, 2021 to stockholders of record as of March 12, 2021. Nobility Homes has distributed one-time cash dividends of $1.00 in fiscal years ending 2019 and 2018, 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 has been adversely impacted by COVID-19 and actions taken in response thereto. According to the Florida Manufactured Housing Association, shipments for the industry in Florida for the period from November 2020 through January 2021 were equal to the same period last year. In addition, the lack of lenders in our industry, partly as a result of an increase in government regulations, still adversely affects our results by limiting many affordable manufactured housing buyers from purchasing homes. Since May of 2020 the Company has experienced unprecedented inflation in forest products, with no immediate relief in sight resulting in significate increases to our material costs. The Company is monitoring these costs and have adjusted our selling prices accordingly to help offset the higher costs. The Company purchased the land for the Tavares retail sales center in January 2021 for $245,000 and in February 2021 purchased land in Ocala for a future retail sales center for $1,040,000.

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, 2020 the Company celebrated its 53rd anniversary in business specializing in the design and production of quality, affordable manufactured homes. With multiple retail sales centers and an insurance agency subsidiary, 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 121 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, the potential adverse impact on our business caused by the COVID-19 pandemic or other health pandemic, competitive pricing pressures at both the wholesale and retail levels, increasing material costs or availability of materials due to potential supply chain interruptions (such as current inflation with forest products and supply issues with vinyl siding and PVC piping), 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.

  Condensed Consolidated Balance Sheets  
  January 30,     October 31,  
  2021     2020  
Current assets:
Cash and cash equivalents
  32,963,523     30,305,902  
Certificates of Deposit
    3,082,111       4,602,307  
Short-term investments
    438,916       358,960  
Accounts receivable - trade
    1,057,086       790,046  
Note receivable
    29,259       35,997  
Mortgage notes receivable
    20,776       20,162  
Income taxes receivable
    -       105,676  
    10,604,393       9,294,677  
Pre-owned homes, net
    389,679       441,937  
Prepaid expenses and other current assets
    1,553,057       1,014,849  
Total current assets
    50,138,800       46,970,513  
Property, plant and equipment, net
    5,363,841       5,142,714  
Pre-owned homes, net
    1,346,471       1,077,240  
Note receivable, less current portion
    6,573       6,573  
Mortgage notes receivable, less current portion
    226,286       227,509  
Other investments
    1,743,072       1,729,364  
Deferred income taxes
    3,598       3,598  
Operating lease right of use assets
    705,037       715,368  
Cash surrender value of life insurance
    3,840,452       3,795,902  
Other assets
    156,287       156,287  
Total assets
  63,530,417     59,825,068  
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable
  1,100,355     928,095  
Accrued compensation
    446,745       670,520  
Accrued expenses and other current liabilities
    1,113,685       1,383,833  
Income taxes payable
    230,133       -  
Operating lease obligation
    27,128       24,192  
Customer deposits
    7,799,815       5,098,633  
Total current liabilities
    10,717,861       8,105,273  
Operating lease obligation, less current portion
    769,869       778,519  
Total liabilities
    11,487,730       8,883,792  
Commitments and contingencies
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;
3,632,446 and 3,631,196 outstanding, respectively
    536,491       536,491  
Additional paid in capital
    10,717,025       10,694,554  
Retained earnings
    59,041,816       57,976,051  
Less treasury stock at cost, 1,732,461 shares in 2021 and
1,733,711 shares in 2020
    (18,252,645)       (18,265,820)  
Total stockholders' equity
    52,042,687       50,941,276  
Total liabilities and stockholders' equity
  63,530,417     59,825,068  
Condensed Consolidated Statements of Income  
  Three Months Ended  
  January 30,     February 1,  
  2021     2020  
Net sales
  $ 9,071,511     $ 9,443,852  
Cost of sales
    (6,574,064)       (6,554,003)  
Gross profit
    2,497,447       2,889,849  
Selling, general and administrative expenses
    (1,273,381)       (1,256,144)  
Operating income
    1,224,066       1,633,705  
Other income:
Interest income
    30,656       101,883  
Undistributed earnings in joint venture - Majestic 21
    13,708       19,872  
Proceeds received under escrow arrangement
    45,868       83,109  
Increase in fair value of equity investment
    79,956       -  
    7,320       7,152  
Total other income
    177,508       212,016  
Income before provision for income taxes
    1,401,574       1,845,721  
Income tax expense
    (335,809)       (445,580)  
Net income
    1,065,765       1,400,141  
Weighted average number of shares outstanding:
    3,631,924       3,659,241  
    3,633,493       3,660,638  
Net income per share:
  $ 0.29     $ 0.38  
  $ 0.29     $ 0.38  

SOURCE: Nobility Homes, Inc.

Nobility Homes, Inc.
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