SOURCE: Nobility Homes, Inc.

September 16, 2015 11:58 ET

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

OCALA, FL--(Marketwired - Sep 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,     November 1,  
    2015     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,       August 2,       August 1,       August 2,  
      2015       2014       2015       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  
                                         

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