SOURCE: Nobility Homes, Inc.

Nobility Homes, Inc.

June 11, 2015 17:19 ET

Nobility Homes, Inc. Announces Increase in Sales and Earnings for Its Second Quarter 2015

OCALA, FL--(Marketwired - Jun 11, 2015) - Today Nobility Homes, Inc. (OTCQX: NOBH) announced sales and earnings results for its second quarter ended May 2, 2015. Sales for second quarter 2015 were up 23% to $6,706,118 as compared to $5,431,026 recorded in second quarter 2014. Income from operations was $665,719 versus $305,628 last year. Net income after taxes was $685,553 as compared to $284,900 last year. The net income after taxes for second quarter 2015 included a $51,657 non-cash loss from our investment in one retirement community limited partnership. Diluted earnings per share were $0.17 per share compared to $0.07 per share last year.

For the first six months of fiscal 2015, sales were up 28% to $12,282,918 as compared to $9,622,455 for the first six months of 2014. Income from operations was $1,085,539 versus $389,814 last year. Net income after taxes was $1,160,341 compared to $388,302 last year. The net income after taxes for the first six months of 2015 included a $57,350 non-cash loss from our investment in one retirement community limited partnership. Diluted earnings per share were $0.30 per share compared to $0.10 per share last year.

Nobility's financial position for the first six months of 2015 remains very strong with cash and cash equivalents and short term investments of $14,843,963 and no outstanding debt. Working capital is $23,399,712 and our ratio of current assets to current liabilities is 7.7:1. Stockholders' equity is $37,572,700 and the book value per share of common stock increased to $9.27. 

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  
           
  May 2,     November 1,  
  2015     2014  
  (Unaudited)        
Assets              
Current assets:              
  Cash and cash equivalents $ 14,376,563     $ 14,116,412  
  Short-term investments   467,400       496,444  
  Accounts receivable - trade   2,480,662       2,141,468  
  Mortgage notes receivable, current   8,600       7,126  
  Income tax receivable   463       5,964  
  Inventories   6,075,256       5,516,540  
  Pre-owned homes, current   1,985,149       2,839,203  
  Prepaid expenses and other current assets   943,977       286,990  
  Deferred income taxes   560,445       508,633  
    Total current assets   26,898,515       25,918,780  
               
Property, plant and equipment, net   3,931,056       3,957,071  
Pre-owned homes   2,879,577       1,711,000  
Mortgage notes receivable, long term   179,248       180,800  
Other investments   2,763,128       2,751,663  
Deferred income taxes   1,435,555       1,487,367  
Other assets   2,984,424       2,921,424  
    Total assets $ 41,071,503     $ 38,928,105  
               
Liabilities and Stockholders' Equity              
Current liabilities:              
  Accounts payable $ 1,099,119     $ 502,259  
  Accrued compensation   277,842       320,502  
  Accrued expenses and other current liabilities   790,651       526,296  
  Customer deposits   1,331,191       1,029,088  
    Total current liabilities   3,498,803       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   10,648,579       10,643,866  
  Retained earnings   35,738,023       34,577,682  
  Accumulated other comprehensive income   252,546       281,590  
  Less treasury stock at cost, 1,310,538 shares in 2015 and 1,301,038 shares in 2014   (9,602,939 )     (9,489,669 )
    Total stockholders' equity   37,572,700       36,549,960  
    Total liabilities and stockholders' equity $ 41,071,503     $ 38,928,105  
                   
                   
                   
NOBILITY HOMES, INC.  
Consolidated Statements of Comprehensive Income  
(Unaudited)  
                       
  Three Months Ended     Six Months Ended  
  May 2,     May 3,     May 2,     May 3,  
  2015     2014     2015     2014  
                               
Net sales $ 6,706,118     $ 5,431,026     $ 12,282,918     $ 9,622,455  
                               
Cost of goods sold   (5,167,950 )     (4,326,728 )     (9,571,981 )     (7,772,627 )
                               
    Gross profit   1,538,168       1,104,298       2,710,937       1,849,828  
                               
Selling, general and administrative expenses   (872,449 )     (798,670 )     (1,625,398 )     (1,460,014 )
                               
    Operating income   665,719       305,628       1,085,539       389,814  
                               
Other income (loss):                              
  Interest income   16,852       18,182       29,972       28,014  
  Undistributed earnings in joint venture - Majestic 21   35,237       39,477       68,815       71,808  
  Losses from investments in retirement community limited partnerships   (51,657 )     (95,286 )     (57,350 )     (134,687 )
  Miscellaneous   23,696       16,899       38,866       33,353  
    Total other income (loss)   24,128       (20,728 )     80,303       (1,512 )
                               
Income before provision for income taxes   689,847       284,900       1,165,842       388,302  
                               
Income tax expense   (4,294 )     -       (5,501 )     -  
                               
    Net income   685,553       284,900       1,160,341       388,302  
                               
Other comprehensive income (loss)                              
  Unrealized investment gain (loss)   41,941       (13,120 )     (29,044 )     4,823  
                               
  Comprehensive income $ 727,494     $ 271,780     $ 1,131,297     $ 393,125  
                               
Weighed average number of shares outstanding:                              
  Basic   4,061,853       4,058,115       4,062,883       4,058,054  
  Diluted   4,062,423       4,060,907       4,063,314       4,059,982  
                               
Net income per share:                              
  Basic $ 0.17     $ 0.07     $ 0.30     $ 0.10  
  Diluted $ 0.17     $ 0.07     $ 0.30     $ 0.10  
                                 

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