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Nobility Homes, Inc. Announces Increased Sales and Earnings for Its Fiscal Year 2019

December 19, 2019 GMT
OCALA, FL / ACCESSWIRE / December 19, 2019 / Today, Nobility Homes, Inc. (OTCQX:NOBH) announced increased sales and earnings results for its fiscal year ended November 2, 2019. Sales for fiscal year 2019 were up 11% to $47.3 million as compared ...
OCALA, FL / ACCESSWIRE / December 19, 2019 / Today, Nobility Homes, Inc. (OTCQX:NOBH) announced increased sales and earnings results for its fiscal year ended November 2, 2019. Sales for fiscal year 2019 were up 11% to $47.3 million as compared ...

OCALA, FL / ACCESSWIRE / December 19, 2019 / Today, Nobility Homes, Inc. (OTCQX:NOBH) announced increased sales and earnings results for its fiscal year ended November 2, 2019. Sales for fiscal year 2019 were up 11% to $47.3 million as compared to $42.8 million recorded in fiscal year 2018. Income from operations, up 45% for fiscal year 2019, was $8.3 million versus $5.7 million in the same period a year ago. Net income after taxes was $8.8 million as compared to $5.0 million for the same period last year. In June 2019 the Company sold its former Pace retail sales center property located in Pace, Florida for total net proceeds of $1.1 million and in October 2019 the Company sold its interest in Walden Woods South for total net proceeds of $1.5 million. Diluted earnings per share for fiscal year 2019 were $2.32 per share compared to $1.27 per share last year.

For the fourth quarter of fiscal 2019, sales were $11.8 million as compared to $12.8 million in the fourth quarter of last fiscal year. Income from operations for the fourth quarter of 2019 was up 6% to $2.1 million versus $2.0 million in the same period last year. Net income after taxes was $2.9 million versus last year’s results of $1.6 million. Diluted earnings per share for the fourth quarter were $0.79 per share versus earnings of $0.40 per share last year.

Nobility’s financial position during fiscal year 2019 remained very strong with cash and cash equivalents, short term investments and certificates of deposit of $33.2 million and no outstanding debt. Working capital is $38.1 million and our ratio of current assets to current liabilities is 5.2:1. Stockholders’ equity is $49.5 million and the book value per share of common stock increased to $13.50.

Terry Trexler, President, stated, “The demand for affordable manufactured housing in Florida continues to be good. According to the Florida Manufactured Housing Association, shipments in Florida for the period from November 2018 through October 2019 were up approximately 17% 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, 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.

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 celebrated its 52nd 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 OR

Certain statements in this report are unaudited or 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. Condensed Consolidated Balance Sheets

November 2,November 3,
20192018
(Unaudited)

Assets

Current assets:

Cash and cash equivalents

$22,533,965$28,364,861

Certificates of Deposit

10,153,5756,034,093

Short-term investments

521,283537,767

Accounts receivable - trade

1,351,8381,783,073

Note receivable

83,23146,444

Mortgage notes receivable

17,89615,664

Inventories

10,616,7787,270,550

Pre-owned homes, net

331,103933,640

Prepaid expenses and other current assets

1,399,5271,090,152

Total current assets

47,009,19646,076,244

Property, plant and equipment, net

4,823,8794,763,566

Pre-owned homes, net

808,128473,191

Note receivable, less current portion

43,76946,265

Mortgage notes receivable, less current portion

232,148236,402

Other investments

1,649,2731,571,166

Property held for sale

-213,437

Deferred income taxes

80,40540,156

Cash surrender value of life insurance

3,617,9753,437,974

Other assets

156,287156,287

Total assets

$58,421,060$57,014,688

Liabilities and Stockholders' Equity

Current liabilities:

Accounts payable

$1,111,216$1,085,095

Accrued compensation

748,626869,657

Accrued expenses and other current liabilities

2,055,9491,349,381

Income taxes payable

2,016,132579,786

Customer deposits

3,022,8184,064,268

Total current liabilities

8,954,7417,948,187

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;

3,664,070 and 3,873,731 outstanding, respectively

536,491536,491

Additional paid in capital

10,687,66210,670,848

Retained earnings

55,298,75450,352,546

Accumulated other comprehensive income

389,164390,407

Less treasury stock at cost, 1,700,837 shares in 2019 and

1,491,176 shares in 2018

(17,445,752)(12,883,791)

Total stockholders' equity

49,466,31949,066,501

Total liabilities and stockholders' equity

$58,421,060$57,014,688

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

Three Months EndedTwelve Months Ended
Nov 2,Nov 3,Nov 2,Nov 3,
2019201820192018

Net sales

$11,780,803$12,796,547$47,348,631$42,812,265

Cost of sales

(8,188,674)(9,386,554)(33,695,631)(32,132,238)

Gross profit

3,592,1293,409,99313,653,00010,680,027

Selling, general and administrative expenses

(1,492,146)(1,431,663)(5,352,319)(4,957,201)

Operating income

2,099,9831,978,3308,300,6815,722,826

Other income:

Interest income

124,147145,144556,142362,121

Undistributed earnings in joint venture - Majestic 21

17,55221,22078,107100,137

Proceeds received under escrow arrangement

89,763-379,104172,911

Gain on sale of assets

1,510,000-2,390,129203,512

Miscellaneous

41,65221,28875,36643,955

Total other income

1,783,114187,6523,478,848882,636

Income before provision for income taxes

3,883,0972,165,98211,779,5296,605,462

Income tax expense

(971,312)(602,275)(2,969,109)(1,641,830)

Net income

2,911,7851,563,7078,810,4204,963,632

Other comprehensive income (loss)

Unrealized investment income (loss), net of tax effect

45,43228,7305,024(21,826)

Comprehensive income

$2,957,217$1,592,437$8,815,444$4,941,806

Weighted average number of shares outstanding:

Basic

3,666,7903,873,7313,803,4003,912,188

Diluted

3,668,1703,876,0343,804,6733,914,312

Net income per share:

Basic

$0.79$0.40$2.32$1.27

Diluted

$0.79$0.40$2.32$1.27

SOURCE: Nobility Homes, Inc.

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