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8-K - 8-K - NOBILITY HOMES INCd205288d8k.htm

Exhibit 99.1

 

LOGO  

 

LOGO

                                       Controlling Our Future through Vertical Integration

NOBILITY HOMES, INC. ANNOUNCES SALES AND EARNINGS FOR ITS THIRD QUARTER 2021

Ocala, FL…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.

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.

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.


NOBILITY HOMES, INC.

Condensed Consolidated Balance Sheets

 

     July 31,     October 31,  
     2021     2020  
     (Unaudited)        

Assets

    

Current assets:

    

Cash and cash equivalents

   $ 33,720,078     $ 30,305,902  

Certificates of deposit

     2,090,910       4,602,307  

Short-term investments

     562,270       358,960  

Accounts receivable - trade

     1,134,675       790,046  

Note receivable

     41,636       35,997  

Mortgage notes receivable

     22,217       20,162  

Income taxes receivable

     81,262       105,676  

Inventories

     9,428,923       9,294,677  

Pre-owned homes, net

     678,303       441,937  

Prepaid expenses and other current assets

     1,370,339       1,014,849  
  

 

 

   

 

 

 

Total current assets

     49,130,613       46,970,513  

Property, plant and equipment, net

     6,916,778       5,142,714  

Pre-owned homes, net

     716,582       1,077,240  

Note receivable, less current portion

     44,595       6,573  

Mortgage notes receivable, less current portion

     223,762       227,509  

Mobile home park note receivable

     72,731       —    

Other investments

     1,775,323       1,729,364  

Deferred income taxes

     —         3,598  

Operating lease right of use assets

     684,142       715,368  

Cash surrender value of life insurance

     3,929,552       3,795,902  

Other assets

     156,287       156,287  
  

 

 

   

 

 

 

Total assets

   $ 63,650,365     $ 59,825,068  
  

 

 

   

 

 

 

Liabilities and Stockholders’ Equity

    

Current liabilities:

    

Accounts payable

   $ 818,230     $ 928,095  

Accrued compensation

     441,760       670,520  

Accrued expenses and other current liabilities

     1,427,862       1,383,833  

Income taxes payable

     —         —    

Operating lease obligation

     33,039       24,192  

Customer deposits

     12,350,225       5,098,633  
  

 

 

   

 

 

 

Total current liabilities

     15,071,116       8,105,273  

Deferred income taxes

     86,413       —    

Operating lease obligation, less current portion

     752,300       778,519  
  

 

 

   

 

 

 

Total liabilities

     15,909,829       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; 3,532,100 and 3,631,196 outstanding, respectively

     536,491       536,491  

Additional paid in capital

     10,749,843       10,694,554  

Retained earnings

     58,185,400       57,976,051  

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

     47,740,536       50,941,276  
  

 

 

   

 

 

 

Total liabilities and stockholders’ equity

   $ 63,650,365     $ 59,825,068  
  

 

 

   

 

 

 


NOBILITY HOMES, INC.

Condensed Consolidated Statements of Income

(Unaudited)

 

     Three Months Ended     Nine Months Ended  
     July 31,     August 1,     July 31,     August 1,  
     2021     2020     2021     2020  

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

     2,512,744       2,438,910       8,622,876       8,466,254  

Selling, general and administrative expenses

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

 

 

   

 

 

   

 

 

   

 

 

 

Operating income

     1,192,288       1,331,060       4,478,526       4,879,632  
  

 

 

   

 

 

   

 

 

   

 

 

 

Other income (loss):

        

Interest income

     62,491       53,209       145,621       239,365  

Undistributed earnings in joint venture - Majestic 21

     20,202       20,855       45,959       61,125  

Proceeds received under escrow arrangement

     75,156       64,053       121,024       336,447  

Increase (decrease) in fair value of equity investment

     (449     21,475       203,310       (159,051

Gain on sale of assets

     —         32,041       —         32,041  

Miscellaneous

     48,169       12,910       73,434       32,504  
  

 

 

   

 

 

   

 

 

   

 

 

 

Total other income

     205,569       204,543       589,348       542,431  
  

 

 

   

 

 

   

 

 

   

 

 

 

Income before provision for income taxes

     1,397,857       1,535,603       5,067,874       5,422,063  

Income tax expense

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

 

 

   

 

 

   

 

 

   

 

 

 

Net income

     1,050,746       1,160,138       3,841,449       4,110,283  
  

 

 

   

 

 

   

 

 

   

 

 

 

Weighted average number of shares outstanding:

        

Basic

     3,599,133       3,631,089       3,621,084       3,641,048  

Diluted

     3,613,187       3,632,420       3,630,216       3,642,397  

Net income per share:

        

Basic

   $ 0.29     $ 0.32     $ 1.06     $ 1.13  

Diluted

   $ 0.29     $ 0.32     $ 1.06     $ 1.13