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8-K - FORM 8-K - NOBILITY HOMES INCd54739d8k.htm

Exhibit 99.1

 

LOGO

NOBILITY HOMES, INC. ANNOUNCES INCREASE IN SALES AND EARNINGS FOR ITS THIRD QUARTER 2015

Ocala, FL—September 16, 2015—Today Nobility Homes, Inc. (OTCQX: NOBH) announced sales and earnings results for its third quarter ended August 1, 2015. Sales for third quarter 2015 were up 32% to $7,059,263 as compared to $5,346,639 recorded in third quarter 2014. Income from operations was $787,272 versus $289,126 last year. Net income after taxes was $746,770 as compared to $252,268 last year. The net income after taxes for third quarter 2015 included a $89,053 non-cash loss from our investment in one retirement community limited partnership. Diluted earnings per share were $.18 per share compared to $.06 per share last year.

For the first nine months of fiscal 2015, sales were up 29% to $19,342,181 as compared to $14,969,094 for the first nine months of 2014. Income from operations was $1,872,811 versus $678,940 last year. Net income after taxes was $1,907,111 compared to $640,570 last year. The net income after taxes for the first nine months of 2015 included a $146,403 non-cash loss from our investment in one retirement community limited partnership. Diluted earnings per share were $0.47 per share compared to $.16 per share last year.

Nobility’s financial position for the first nine months of 2015 remains very strong with cash and cash equivalents and short term investments of $15,120,660 and no outstanding debt. Working capital is $24,648,017 and our ratio of current assets to current liabilities is 9.5:1. Stockholders’ equity is $38,252,243 and the book value per share of common stock increased to $9.46.

Terry Trexler, President, stated, “The demand for affordable manufactured housing in Florida and the U.S. is improving; however, our sales and earnings continue to be affected by the challenging housing environment, the uncertainty of the U.S. and world economy, employment levels, consumer confidence and, in particular, the lack of available retail and wholesale financing. Constrained consumer credit and the lack of lenders in the industry, partly as a result of an increase in government regulations, have limited many affordable manufactured housing buyers from purchasing homes.

Our 48 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.

We understand that during this uncertain economic environment, maintaining our strong financial position is vital for future growth and success. Because of the recent years of very challenging business conditions in our market area, management will continue to evaluate all expenses and react in a manner consistent with maintaining our strong financial position.”

The Company has specialized for 48 years in the design and production of quality, affordable manufactured homes at its plant located in central Florida. With multiple retail sales centers, an insurance subsidiary, and investments in retirement manufactured home communities, the Company is 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 TERRY@NOBILITYHOMES.COM OR TOM@NOBILITYHOMES.COM

Certain statements in this report are 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, 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

 

     August 1,
2015
    November 1,
2014
 
     (Unaudited)        

Assets

    

Current assets:

    

Cash and cash equivalents

   $ 14,625,225      $ 14,116,412   

Short-term investments

     495,435        496,444   

Accounts receivable - trade

     2,975,946        2,141,468   

Mortgage notes receivable, current

     8,247        7,126   

Income tax receivable

     335        5,964   

Inventories

     6,206,930        5,516,540   

Pre-owned homes, current

     1,669,436        2,839,203   

Prepaid expenses and other current assets

     979,137        286,990   

Deferred income taxes

     576,193        508,633   
  

 

 

   

 

 

 

Total current assets

     27,536,884        25,918,780   

Property, plant and equipment, net

     3,928,940        3,957,071   

Pre-owned homes

     2,849,020        1,711,000   

Mortgage notes receivable, long term

     179,248        180,800   

Other investments

     2,211,287        2,751,663   

Deferred income taxes

     1,419,807        1,487,367   

Cash surrender value of life insurance

     2,859,637        2,765,137   

Other assets

     156,287        156,287   
  

 

 

   

 

 

 

Total assets

   $ 41,141,110      $ 38,928,105   
  

 

 

   

 

 

 

Liabilities and Stockholders’ Equity

    

Current liabilities:

    

Accounts payable

   $ 590,344      $ 502,259   

Accrued compensation

     269,361        320,502   

Accrued expenses and other current liabilities

     763,998        526,296   

Customer deposits

     1,265,164        1,029,088   
  

 

 

   

 

 

 

Total current liabilities

     2,888,867        2,378,145   
  

 

 

   

 

 

 

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

     536,491        536,491   

Additional paid in capital

     10,649,651        10,643,866   

Retained earnings

     36,484,793        34,577,682   

Accumulated other comprehensive income

     280,581        281,590   

Less treasury stock at cost, 1,320,338 shares in 2015 and 1,303,363 shares in 2014

     (9,699,273     (9,489,669
  

 

 

   

 

 

 

Total stockholders’ equity

     38,252,243        36,549,960   
  

 

 

   

 

 

 

Total liabilities and stockholders’ equity

   $ 41,141,110      $ 38,928,105   
  

 

 

   

 

 

 


NOBILITY HOMES, INC.

Consolidated Statements of Comprehensive Income

(Unaudited)

 

     Three Months Ended     Nine Months Ended  
    

August 1,

2015

    August 2,
2014
   

August 1,

2015

   

August 2,

2014

 

Net sales

   $ 7,059,263      $ 5,346,639      $ 19,342,181      $ 14,969,094   

Cost of goods sold

     (5,495,061     (4,286,471     (15,067,042     (12,059,098
  

 

 

   

 

 

   

 

 

   

 

 

 

Gross profit

     1,564,202        1,060,168        4,275,139        2,909,996   

Selling, general and administrative expenses

     (776,930     (771,042     (2,402,328     (2,231,056
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating income

     787,272        289,126        1,872,811        678,940   
  

 

 

   

 

 

   

 

 

   

 

 

 

Other income (loss):

        

Interest income

     10,437        11,099        40,409        39,113   

Undistributed earnings in joint venture - Majestic 21

     37,212        34,105        106,027        105,913   

Losses from investments in retirement community limited partnerships

     (89,053     (96,668     (146,403     (231,355

Miscellaneous

     1,030        15,464        39,896        48,817   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total other income (loss)

     (40,374     (36,000     39,929        (37,512
  

 

 

   

 

 

   

 

 

   

 

 

 

Income before provision for income taxes

     746,898        253,126        1,912,740        641,428   

Income tax expense

     (128     (858     (5,629     (858
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income

     746,770        252,268        1,907,111        640,570   

Other comprehensive income (loss)

        

Unrealized investment gain (loss)

     28,035        21,306        (1,009     26,129   
  

 

 

   

 

 

   

 

 

   

 

 

 

Comprehensive income

   $ 774,805      $ 273,574      $ 1,906,102      $ 666,699   
  

 

 

   

 

 

   

 

 

   

 

 

 

Weighed average number of shares outstanding:

        

Basic

     4,048,554        4,059,922        4,058,106        4,058,677   

Diluted

     4,048,994        4,062,024        4,058,540        4,060,244   

Net income per share:

        

Basic

   $ 0.18      $ 0.06      $ 0.47      $ 0.16   

Diluted

   $ 0.18      $ 0.06      $ 0.47      $ 0.16