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Press release content from Accesswire. The AP news staff was not involved in its creation.

Nobility Homes, Inc. Announces Sales and Earnings for its Third Quarter 2021

September 8, 2021 GMT
OCALA, FL / ACCESSWIRE / September 8, 2021 / Today Nobility Homes, Inc. (OTCQX:NOBH) announced sales and earnings for its third quarter ended July 31, 2021. Sales for the third quarter of 2021 increased 34% to $11,778,120 as compared to $8,800,410 ...
OCALA, FL / ACCESSWIRE / September 8, 2021 / Today Nobility Homes, Inc. (OTCQX:NOBH) announced sales and earnings for its third quarter ended July 31, 2021. Sales for the third quarter of 2021 increased 34% to $11,778,120 as compared to $8,800,410 ...
OCALA, FL / ACCESSWIRE / September 8, 2021 / Today Nobility Homes, Inc. (OTCQX:NOBH) announced sales and earnings for its third quarter ended July 31, 2021. Sales for the third quarter of 2021 increased 34% to $11,778,120 as compared to $8,800,410 ...

OCALA, FL / ACCESSWIRE / September 8, 2021 / Today Nobility Homes, Inc. (OTCQX:NOBH) announced sales and earnings for its third quarter ended July 31, 2021. Sales for the third quarter of 2021 increased 34% to $11,778,120 as compared to $8,800,410 recorded in the third quarter of 2020. Income from operations for the third quarter of 2021 was $1,192,288 versus $1,331,060 in the same period a year ago. Net income after taxes was $1,050,746 as compared to $1,160,138 for the same period last year. Diluted earnings per share for the third quarter of 2021 were $0.29 per share compared to $0.32 per share last year.

For the first nine months of fiscal 2021, sales increased 25% to $35,592,531 as compared to $28,446,764 for the first nine months of 2020. Income from operations was $4,478,526 versus $4,879,632 last year. Net income after taxes was $3,841,449 compared to $4,110,283 last year. Diluted earnings per share were $1.06 per share compared to $1.13 per share last year.

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Nobility’s financial position during the third quarter 2021 remains very strong with cash and cash equivalents, certificates of deposit and short term investments of $36,373,258 and no outstanding debt. Working capital is $34,059,497 and our ratio of current assets to current liabilities is 3.3:1. Stockholders’ equity is $47,740,536 and the book value per share of common stock increased to $13.52.

Terry Trexler, President, stated, “The Company’s third quarter sales were strong and continue to reflect a robust housing market. According to the Florida Manufactured Housing Association, shipments for the industry in Florida for the period from November 2020 through July 2021 were up approximately 11% from the same period last year. The lack of lenders in our industry, still adversely affects our results by limiting many affordable manufactured housing buyers from purchasing homes.

During third quarter of 2021 our production of homes was impacted due to the challenges in hiring additional factory workers and the unpredictable absenteeism of the COVID-19 quarantine. These factors have continued in the fourth quarter of 2021. Also, production has incurred shortages in certain building products delaying the completion of the homes and has continued to experience inflation in most building products resulting in significant increases to our material costs and a corresponding decrease in gross profits. We have continued to focus on increasing production of homes due to the above challenges.

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.

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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 homes. With multiple retail sales centers in Florida for over 30 years 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 TERRY@NOBILITYHOMES.COM OR TOM@NOBILITYHOMES.COM

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.

Condensed Consolidated Balance Sheets
July 31,October 31,
20212020
(Unaudited)
Assets
Current assets:

Cash and cash equivalents

$33,720,078$30,305,902

Certificates of deposit

2,090,9104,602,307

Short-term investments

562,270358,960

Accounts receivable - trade

1,134,675790,046

Note receivable

41,63635,997

Mortgage notes receivable

22,21720,162

Income taxes receivable

81,262105,676

Inventories

9,428,9239,294,677

Pre-owned homes, net

678,303441,937

Prepaid expenses and other current assets

1,370,3391,014,849

Total current assets

49,130,61346,970,513

Property, plant and equipment, net

6,916,7785,142,714

Pre-owned homes, net

716,5821,077,240

Note receivable, less current portion

44,5956,573

Mortgage notes receivable, less current portion

223,762227,509

Mobile home park note receivable

72,731-

Other investments

1,775,3231,729,364

Deferred income taxes

-3,598

Operating lease right of use assets

684,142715,368

Cash surrender value of life insurance

3,929,5523,795,902

Other assets

156,287156,287

Total assets

$63,650,365$59,825,068

Liabilities and Stockholders' Equity

Current liabilities:

Accounts payable

$818,230$928,095

Accrued compensation

441,760670,520

Accrued expenses and other current liabilities

1,427,8621,383,833

Income taxes payable

--

Operating lease obligation

33,03924,192

Customer deposits

12,350,2255,098,633

Total current liabilities

15,071,1168,105,273

Deferred income taxes

86,413-

Operating lease obligation, less current portion

752,300778,519

Total liabilities

15,909,8298,883,792

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;

3,532,100 and 3,631,196 outstanding, respectively

536,491536,491

Additional paid in capital

10,749,84310,694,554

Retained earnings

58,185,40057,976,051

Less treasury stock at cost, 1,832,807 shares in 2021 and

1,733,711 shares in 2020

(21,731,198)(18,265,820)

Total stockholders' equity

47,740,53650,941,276

Total liabilities and stockholders' equity

$63,650,365$59,825,068
Condensed Consolidated Statements of Income
(Unaudited)
Three Months EndedNine Months Ended
July 31,August 1,July 31,August 1,
2021202020212020

Net sales

$11,778,120$8,800,410$35,592,531$28,446,764

Cost of sales

(9,265,376)(6,361,500)(26,969,655)(19,980,510)

Gross profit

2,512,7442,438,9108,622,8768,466,254

Selling, general and administrative expenses

(1,320,456)(1,107,850)(4,144,350)(3,586,622)

Operating income

1,192,2881,331,0604,478,5264,879,632

Other income (loss):

Interest income

62,49153,209145,621239,365

Undistributed earnings in joint venture - Majestic 21

20,20220,85545,95961,125

Proceeds received under escrow arrangement

75,15664,053121,024336,447

Increase (decrease) in fair value of equity investment

(449)21,475203,310(159,051)

Gain on sale of assets

-32,041-32,041

Miscellaneous

48,16912,91073,43432,504

Total other income

205,569204,543589,348542,431

Income before provision for income taxes

1,397,8571,535,6035,067,8745,422,063

Income tax expense

(347,111)(375,465)(1,226,425)(1,311,780)

Net income

1,050,7461,160,1383,841,4494,110,283

Weighted average number of shares outstanding:

Basic

3,599,1333,631,0893,621,0843,641,048

Diluted

3,613,1873,632,4203,630,2163,642,397

Net income per share:

Basic

$0.29$0.32$1.06$1.13

Diluted

$0.29$0.32$1.06$1.13

SOURCE: Nobility Homes, Inc.

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