Controlling Our Future through Vertical Integration
OCALA, FL / ACCESSWIRE / January 11, 2022 / Today Nobility Homes, Inc. (OTCQX:NOBH) announced sales and earnings results for its fiscal year ended November 6, 2021. Sales for fiscal year 2021 increased 8% to $45.0 million as compared to $41.6 million recorded in fiscal year 2020. Income from operations for fiscal year 2021, was $6.1 million versus $7.1 million in the same period a year ago. Net income after taxes was $5.4 million as compared to $6.0 million for the same period last year. Diluted earnings per share for fiscal year 2021 were $1.50 per share compared to $1.64 per share last year.
For the fourth quarter of fiscal 2021, sales were $9.5 million as compared to $13.2 million in the fourth quarter of last fiscal year. Income from operations for the fourth quarter of 2021 was $1.7 million versus $2.3 million in the same period last year. Net income after taxes was $1.6 million versus last year's results of $1.9 million. Diluted earnings per share for the fourth quarter were $0.44 per share versus earnings of $0.52 per share last year.
Nobility's financial position during fiscal year 2021 remained very strong with cash and cash equivalents, short term investments and certificates of deposit of $38.8 million and no outstanding debt. Working capital is $35.6 million and our ratio of current assets to current liabilities is 3.1:1. Stockholders' equity is $49.3 million and the book value per share of common stock increased to $13.96.
Terry Trexler, President, stated, "Fiscal 2021 proved to be a very difficult year to improve or even maintain consistency in factory production, materials procurement, building products cost control and the manufacturing work force. Certainly the continued pressure of the coronavirus ("COVID-19") and variants have had a significant impact on each of these areas. However, the major disruption in maintaining or improving our production of homes this fiscal year has been the inconsistent delivery of building supplies from our vendors. The negative impact of allocations being placed on certain key materials, the delay or lack of the vendors' key components to manufacture and deliver timely our ordered products for our production line, back orders or just delayed shipments and, of course, unparalleled price increases, have been unprecedented in the Company's history. Until some order has been restored to the industry's supply chain, management feels that, at least the first half of fiscal year 2022 will face these same challenges. According to the Florida Manufactured Housing Association, shipments for the industry in Florida for the period from November 2020 through October 2021 were up approximately 11% from the same period last year.
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, 2021 the Company celebrated its 54th anniversary in business specializing in the design and production of quality, affordable manufactured and modular homes. With multiple retail sales centers in Florida for over 31 years and an insurance agency subsidiary, we are the only vertically integrated manufactured home company headquartered in Florida.
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, inflation, increasing material costs (including forest based products) 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), 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, any armed conflict involving the United States and the impact of inflation.
NOBILITY HOMES, INC.
|November 6,||October 31,|
Cash and cash equivalents
Certificates of deposit
Accounts receivable - trade
Mortgage notes receivable
Income taxes receivable
Pre-owned homes, net
Prepaid expenses and other current assets
Total current assets
Property, plant and equipment, net
Pre-owned homes, net
Note receivable, less current portion
Mortgage notes receivable, less current portion
Mobile home park note receivable
Deferred income taxes
Operating lease right of use assets
Cash surrender value of life insurance
Liabilities and Stockholders' Equity
Accrued expenses and other current liabilities
Income taxes payable
Operating lease obligation
Total current liabilities
Deferred income taxes
Operating lease obligation, less current portion
Commitments and contingencies
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;
3,532,100 and 3,631,196 outstanding, respectively
Additional paid in capital
Less treasury stock at cost, 1,832,807 shares in 2021 and
1,733,711 shares in 2020
Total stockholders' equity
Total liabilities and stockholders' equity
NOBILITY HOMES, INC.
|Three Months Ended||Twelve Months Ended|
|November 6,||October 31||November 6,||October 31|
Cost of sales
Selling, general and administrative expenses
Other income (loss):
Undistributed earnings in joint venture - Majestic 21
Proceeds received under escrow arrangement
Increase (decrease) in fair value of equity investment
Gain on sale of assets
Total other income
Income before provision for income taxes
Income tax expense
Weighted average number of shares outstanding:
Net income per share:
SOURCE: Nobility Homes, Inc.