SOURCE: Nobility Homes, Inc.

Nobility Homes, Inc.

December 17, 2015 15:18 ET

Nobility Homes, Inc. Announces Increased Sales and Earnings for Its Fiscal Year 2015

OCALA, FL--(Marketwired - Dec 17, 2015) - Today Nobility Homes, Inc. (OTCQX: NOBH) announced increased sales and earnings results for its fiscal year ended October 31, 2015. Sales for fiscal year 2015 were up 32% to $27,836,804 as compared to $21,152,259 recorded in fiscal year 2014. Income from operations for fiscal year 2015 was $2,941,452 versus $1,311,030 in the same period a year ago. Net income after taxes was $2,915,395 as compared to $1,257,898 for the same period last year. The net income after taxes for fiscal year 2015 included a $146,403 non-cash loss from our investment in one retirement community limited partnership. Diluted earnings per share for fiscal year 2015 were $0.72 per share compared to $0.31 per share last year.

For the fourth quarter of fiscal 2015, sales increased 37% to $8,494,623 as compared to sales of $6,183,165 in the fourth quarter of last fiscal year. Income from operations for the fourth quarter of 2015 was $1,068,641 versus $632,090 in the same period last year. Net income after taxes was $1,008,284 versus last year's results of $617,328. Diluted earnings per share for the fourth quarter were $0.25 per share versus earnings of $0.15 per share last year.

Nobility's financial position during fiscal year 2015 remains very strong with cash and cash equivalents and short term investments of $17,231,870 and no outstanding debt. Working capital is $25,702,925 and our ratio of current assets to current liabilities is 8.7:1. Stockholders' equity is $39,095,752 and the book value per share of common stock increased to $9.70.

Terry Trexler, President, stated, "The demand for affordable manufactured housing in Florida and the U.S. is improving. According to the Florida Manufactured Housing Association, shipments in Florida for the period from November 2014 through October 2015 were up approximately 29% from the same period last year. 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.

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.

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."

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  
   
    October 31,     November 1,  
    2015     2014  
             
Assets                
Current assets:                
  Cash and cash equivalents   $ 16,769,292     $ 14,116,412  
  Short-term investments     462,578       496,444  
  Accounts receivable - trade     2,937,922       2,141,468  
  Mortgage notes receivable, current     9,851       7,126  
  Income tax receivable     335       5,964  
  Inventories     6,019,705       5,516,540  
  Pre-owned homes, current     1,366,974       2,839,203  
  Prepaid expenses and other current assets     826,180       286,990  
  Deferred income taxes     655,193       508,633  
    Total current assets     29,048,030       25,918,780  
                 
Property, plant and equipment, net     3,964,878       3,957,071  
Pre-owned homes     2,724,190       1,711,000  
Mortgage notes receivable, long term     177,644       180,800  
Other investments     2,243,729       2,751,663  
Deferred income taxes     1,210,630       1,487,367  
Cash surrender value of life insurance     2,915,469       2,765,137  
Other assets     156,287       156,287  
    Total assets   $ 42,440,857     $ 38,928,105  
                 
Liabilities and Stockholders' Equity                
Current liabilities:                
  Accounts payable   $ 704,467     $ 502,259  
  Accrued compensation     390,573       320,502  
  Accrued expenses and other current liabilities     926,204       526,296  
  Customer deposits     1,323,861       1,029,088  
    Total current liabilities     3,345,105       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     10,650,723       10,643,866  
  Retained earnings     37,493,077       34,577,682  
  Accumulated other comprehensive income     247,724       281,590  
  Less treasury stock at cost, 1,333,338 shares in 2015 and 1,301,038 shares in 2014    
(9,832,263
)    
(9,489,669
)
    Total stockholders' equity     39,095,752       36,549,960  
    Total liabilities and stockholders' equity   $ 42,440,857     $ 38,928,105  
                     
                     
                     
NOBILITY HOMES, INC.  
Consolidated Statements of Comprehensive Income  
   
    Three Months Ended     Twelve Months Ended  
    October 31,     November 1,     October 31,     November 1,  
    2015     2014     2015     2014  
                                 
Net sales   $ 8,494,623     $ 6,183,165     $ 27,836,804     $ 21,152,259  
                                 
Cost of goods sold     (6,634,387 )     (4,721,615 )     (21,701,429 )     (16,780,713 )
                                 
    Gross profit     1,860,236       1,461,550       6,135,375       4,371,546  
                                 
Selling, general and administrative expenses     (791,595 )     (829,460 )     (3,193,923 )     (3,060,516 )
                                 
    Operating income     1,068,641       632,090       2,941,452       1,311,030  
                                 
Other income (loss):                                
  Interest income     19,576       24,024       59,985       63,137  
  Undistributed earnings in joint venture - Majestic 21     32,442       29,008       138,469       134,921  
  Losses from investments in retirement community limited partnerships     -       (90,176 )     (146,403 )     (321,531 )
  Miscellaneous     17,802       25,560       57,698       74,377  
    Total other income (loss)     69,820       (11,584 )     109,749       (49,096 )
                                 
Income before provision for income taxes     1,138,461       620,506       3,051,201       1,261,934  
                                 
Income tax expense     (130,177 )     (3,178 )     (135,806 )     (4,036 )
                                 
    Net income     1,008,284       617,328       2,915,395       1,257,898  
                                 
Other comprehensive income (loss)                                
  Unrealized investment gain (loss)     (32,857 )     15,083       (33,866 )     41,212  
                                 
  Comprehensive income   $ 975,427     $ 632,411     $ 2,881,529     $ 1,299,110  
                                 
Weighed average number of shares outstanding:                                
  Basic     4,037,140       4,062,640       4,052,865       4,059,668  
  Diluted     4,037,928       4,063,700       4,053,362       4,060,654  
                                 
Net income per share:                                
Basic   $ 0.25     $ 0.15     $ 0.72     $ 0.31  
  Diluted   $ 0.25     $ 0.15     $ 0.72     $ 0.31  

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