-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, C7wEk1Wu7Cnc/mRofzmbUaOxQLQSokAvZPQbVMiVbOK5U1+m7IAUR6qO6WcqmQp3 X3TcEC3+poDLZdJvk+akOA== 0000897069-97-000387.txt : 19970918 0000897069-97-000387.hdr.sgml : 19970918 ACCESSION NUMBER: 0000897069-97-000387 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19970802 FILED AS OF DATE: 19970912 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: NOBILITY HOMES INC CENTRAL INDEX KEY: 0000072205 STANDARD INDUSTRIAL CLASSIFICATION: MOBILE HOMES [2451] IRS NUMBER: 591166102 STATE OF INCORPORATION: FL FISCAL YEAR END: 1027 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 000-06506 FILM NUMBER: 97679270 BUSINESS ADDRESS: STREET 1: 3741 S W 7TH STREET CITY: OCALA STATE: FL ZIP: 34474 BUSINESS PHONE: 9047325157 MAIL ADDRESS: STREET 1: P O BOX 1659 CITY: OCALA STATE: FL ZIP: 34478-1659 10-Q 1 NOBILITY HOMES, INC.'S FORM 10-Q FORM 10-Q SECURITITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 QUARTERLY REPORT UNDER SECTION 13 OR 15 (d) OF THE SECURITIES AND EXCHANGE ACT OF 1934 For the Quarterly period ended August 2, 1997 Commission File number 0-6506 NOBILITY HOMES, INC. (Exact name of registrant as specified in its charter) Florida 59-1166102 (State or other jurisdiction (I.R.S. Employer of incorporation or Identification No.) organization) 3741 S.W. 7th Street Ocala, Florida 34474 (Address of principal executive offices) (Zip Code) (352) 732-5157 (Issuer's telephone number, including area code) Securities registered pursuant to Section 12(b) of the Act: Name of each exchange Title of each class on which registered None None Securities registered pursuant to Section 12(g) of the Act: Common Stock $.10 par value (Title of Class) Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes X; No _____. (APPLICABLE ONLY TO CORPORATE ISSUERS) State the number of shares outstanding of each of the issuer's classes of common equity, as of September 10, 1997. 2,970,954 NOBILITY HOMES, INC. INDEX Page Number PART I. Financial Information Item 1. Financial Statements Consolidated Balance Sheets as of August 2, 1997 and November 2, 1996 3 Consolidated Statements of Income for the three and nine months ended August 4 2, 1997 and August 3, 1996 Consolidated Statements of Cash Flows for nine months ended August 2, 1997 5 and August 3, 1996 Notes to Consolidated Financial 6 Statements Item 2. Management's Discussion and Analysis of Results of Operations and Financial 7 Conditions PART II. Other Information and Signatures Item 6. Exhibits and Reports of Form 8-K 8 PART I. FINANCIAL INFORMATION NOBILITY HOMES, INC. CONSOLIDATED BALANCE SHEETS August 2, November 2, 1997 1996 ASSETS (Unaudited) Current Assets: Cash and cash equivalents $ 2,684,407 $ 2,049,184 Accounts receivable - trade 1,065,478 642,626 Accounts receivable - trade, from related parties 547,600 350,379 Inventories 8,770,626 7,820,908 Deferred income taxes 145,400 145,400 Other current assets 271,049 368,466 ----------- ------------ Total current assets 13,484,560 11,376,963 Property, plant and equipment, net 1,329,982 1,166,429 Investment in joint venture - Nobility 21 253,376 -- Deferred income taxes - noncurrent 654,941 707,200 Other assets 1,645,753 1,620,046 ----------- ------------ Total assets $ 17,368,612 $ 14,870,638 =========== ============ LIABILITIES & STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 1,064,777 $ 1,368,168 Accrued expenses 1,178,300 692,737 Other liabilities 842,482 553,477 ----------- ------------ Total liabilities 3,085,559 2,614,382 ----------- ------------ Stockholders' equity: Preferred stock, $.10 par value, 500,000 shares authorized, none issued -- -- Common stock, $.10 par value, 10,000,000 shares authorized, 3,436,790 shares issued 343,679 343,679 Additional paid in capital 2,345,715 2,345,715 Retained earnings 13,273,726 11,246,929 Less treasury stock at cost, 465,836 shares (1,680,067) (1,680,067) ----------- ------------ Total stockholders' equity 14,283,053 12,256,256 ----------- ------------ Commitments and contingencies -- -- ----------- ------------ Total liabilities and stockholders' equity $ 17,368,612 $ 14,870,638 ----------- ------------ NOBILITY HOMES, INC. CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
Three Months Ended Nine Months Ended August 2, August 3, August 2, August 3, 1997 1996 1997 1996 Net sales $ 10,367,297 $ 9,737,023 $ 28,867,127 $ 25,930,381 Net sales - related part 248,990 259,955 399,853 504,080 ----------- ------------ ----------- ----------- Total net sales 10,616,287 9,996,978 29,266,980 26,434,461 Less cost of goods sold (7,779,104) (7,500,610) (21,714,518) (19,614,100) ----------- ------------ ----------- ----------- Gross profit 2,837,183 2,496,368 7,552,462 6,820,361 Selling, general and administrative expenses (1,666,105) (1,558,429) (4,452,000) (4,091,467) Operating income 1,171,078 937,939 3,100,462 2,728,894 Other income (expenses): Interest income 35,272 4,591 73,093 9,463 Interest expense -- (30,155) -- (50,046) Miscellaneous income 60,251 3,273 116,242 28,204 ----------- ------------ ----------- ----------- 95,523 (22,291) 189,335 (12,379) ----------- ------------ ----------- ----------- Income before provision for income taxes 1,266,601 915,648 3,289,797 2,716,515 Less provision for income taxes (486,000) (282,000) (1,263,000) (968,000) ----------- ------------ ----------- ----------- Net income $ 780,601 $ 633,648 $ 2,026,797 $ 1,748,515 =========== ============ =========== =========== Weighted average shares outstanding 2,970,954 2,958,116 2,970,954 2,958,116 =========== ============ =========== =========== Earnings per share Net income $ .26 $ .21 $ .68 $ .59 =========== ============ =========== ===========
NOBILITY HOMES, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) Nine Months Ended August 2, August 3, 1997 1996 Cash flows from operating activities: Net income $ 2,026,797 $ 1,748,515 Adjustments to reconcile net income to net cash flows provided by operating activities: Depreciation and amortization 110,178 93,804 Undistributed earnings in joint venture - Nobility 21 (3,376) -- (Increase) decrease in: Accounts receivable -trade (422,852) (183,629) Accounts receivable -trade from related parties (197,221) 269,091 Inventories (949,718) (763,671) Other current assets 149,676 (15,204) Increase (decrease) in: Accounts payable (303,391) (435,652) Accrued expenses 485,563 151,135 Other current liabilities 289,005 43,481 ----------- ----------- Net cash flows provided by operating activities 1,184,661 907,870 ----------- ----------- Cash flows from investing activities: Investment in joint venture - Nobility 21 (250,000) -- Purchase of equipment (299,438) (169,382) ----------- ----------- Net cash flows (used in) investing activities (549,438) (169,382) ----------- ----------- Cash flows from financing activities: Proceeds from exercise of stock options -- 130,000 Principal payment on cash surrender value -- (652,424) Principal payment on notes payable - other -- (6,644) ----------- ----------- Net cash flows provided by (used in) financings activities -- (529,068) ----------- ----------- Increase in cash and cash equivalents 635,223 209,420 Cash and cash equivalents at beginning of year 2,049,184 932,432 ----------- ----------- Cash and cash equivalents at end of quarter $ 2,684,407 $ 1,141,852 ---------- ----------- Supplemental disclosure of cash flow information Interest paid $ -- $ 50,046 ========== =========== Income taxes paid $ 1,142,500 $ 900,000 ========== =========== Supplemental disclosure of non-cash activities Issuance of common stock for certain assets and liabilities See note 3 "Notes to consolidated financial statements" $ -- $ 252,000 ========== =========== NOBILITY HOMES, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) 1. The unaudited financial information included in this report includes all adjustments which are, in the opinion of management, necessary to reflect a fair statement of the results for the interim periods. The operations for the nine months ended August 2, 1997 are not necessarily indicative of the results of the full fiscal year. Certain information and footnote disclosure normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to the Securities Exchange Commission rules and regulations governing form 10-Q. The condensed financial statements included in this report should be read in conjunction with the financial statements and notes thereto included in the Registrant's November 2, 1996 form 10-K annual report. 2. Inventories Inventories are carried at the lower of cost or market. Cost of finished home inventories is determined on the specific identification method. Other inventory costs are determined on a first-in, first-out basis. Cost components of inventories are material, labor and plant overhead. The cost of goods sold for the nine months ended August 2, 1997 and August 3, 1996 reflects opening and closing inventories as follows: August 2, November 2, August 3, November 2, 1997 1996 1996 1995 Raw Materials $ 600,122 $ 554,255 $ 541,676 $ 530,061 Work-in-process 70,431 95,279 82,288 73,068 Finished homes 7,145,721 6,302,097 6,212,582 5,366,658 Pre-owned manu- factured homes 263,558 311,133 250,987 292,374 Model home furniture and other 690,794 558,144 557,270 523,998 ---------- ---------- ---------- ---------- $ 8,770,626 $ 7,820,908 $ 7,644,803 $ 6,786,159 ========== ========== ========== ========== 3. Acquisition. On November 22, 1995, the Company acquired three manufacturing home sales centers in Florida in an asset acquisition by issuing 18,000 shares common stock valued at $252,000. This transaction was accounted for using the purchase method of accounting; accordingly, the purchased assets have been recorded at their estimated fair market value at the date of acquisition. This treatment resulted in approximately $74,195 of cost in excess of net assets acquired, which is being amortized on a straight-line basis over 15 years. The results of operations of the acquired businesses have been included in the consolidated financial statements since the date of acquisition. 4. Joint Venture. In July 1997 the Company invested $250,000 in a joint venture with 21st Century Corporation to provide additional mortgage financing services to the Company's retail sales centers. Nobility Homes, Inc. Management's Discussion And Analysis Of Results Of Operations And Financial Condition Results of Operations Net sales for the three months ended August 2, 1997 increased 6 percent to $10,616,287 compared to $9,996,978 for the same period last year. Net sales for the nine months ended of fiscal 1997 increased 11 percent to $29,266,980 as compared to $26,434,461 a year ago. This increase in sales was primarily due to the sales to non-related dealers increasing to $5,811,917 for the first nine months of 1997 compared to $3,511,009 for the same period last year. The Company had fifteen retail sales centers in full operation during the first nine months of 1997 as compared to twelve retail sales centers in full operation for the first quarter of 1996 plus the acquisition during that quarter of three existing retail sales centers. In March 1997 one retail sales center was closed due to poor performance and another retail sales center was purchased. Same store sales volume for the first nine months of 1997, was approximately the same as the first nine months of 1996. Gross profit, as a percentage of net sales, was approximately 26.7 percent in the third quarter of 1997 up from 24.9 percent in the same period last year. The increase in gross profit was primarily due to the increased margins at the manufacturing facilities. Gross profit, as a percentage of sales, was approximately 25.8 percent for both the first nine months of 1997 and the same period last year. Selling, general and administrative expenses, as a percentage of net sales, fluctuated very little and was approximately 15 percent for the three and nine month periods of 1997 and 1996. Other income consists of interest income from short term investments. As a result of the factors discussed above, net income for the third quarter of 1997 was $780,601 or $.26 per share, compared to $633,648 or $.21 per share in 1996. For the first nine months of fiscal 1997 net income was $2,026,797 or $.68 per share, compared to $1,748,515 or $.59 per share for the first nine months of fiscal 1996. Liquidity and Capital Resources Cash and cash equivalents were $2,684,407 at August 2, 1997 compared to $2,049,184 as of November 2, 1996. Inventories increased to $8,770,626 as of August 2, 1997 as compared to $7,820,908 at the end of fiscal year 1996. The increase in inventory is primarily due to the purchase of one existing manufacturing home retail sales center and a larger number of sold retail homes in the process of being closed and funded. The Company maintains a revolving credit agreement with a major bank providing for borrowings up to $2.5 million and a second revolving line of credit agreement with a major bank which provides for borrowings up to $1.5 million. These two agreements provide the Company with an additional $4.0 million of working capital for use in connection with its overall operations. The Company in March 1997 acquired one additional existing manufactured home retail sales center in North Central Florida for $85,000 cash. In November 1995 the Company acquired three retail sales centers in Florida in an asset acquisition by issuing 18,000 shares of common stock with a fair market value of $252,000. In July 1997 the Company invested $250,000 in a joint venture with 21st Century Corporation to provide additional mortgage financing services to the Company's retail sales centers. Consistent with normal practice, the Company's operations are not expected to require significant capital expenditures during fiscal 1997. Working capital requirements for inventory for any new sales centers will be met through a combination of internal sources and the revolving credit lines discussed above. Part II. Other Information And Signatures Item 6. Exhibits and Reports on Form 8-K Exhibit 27 Financial Data Schedule Signatures In accordance with Section 13 or 15(d) of the Exchange Act, the Registrant has caused this report to be signed on its behalf by the undersigned, there unto duly authorized. NOBILITY HOMES, INC. DATE: September 10, 1997 By: /s/ Terry E. Trexler Terry E. Trexler, Chairman, President and Chief Executive Officer DATE: September 10, 1997 By: /s/ Thomas W. Trexler Thomas W. Trexler, Executive Vice President, Chief Financial Officer DATE: September 10, 1997 By: /s/ Lynn J. Cramer, Jr. Lynn J. Cramer, Jr., Treasurer and Principal Accounting Officer EX-27 2 FINANCIAL DATA SCHEDULE
5 THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE JUDICIAL STATEMENTS OF NOBILITY HOMES, INC. AS OF AND FOR THE THREE MONTHS ENDED AUGUST 2, 1997 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. 3-MOS NOV-01-1997 MAY-04-1997 AUG-02-1997 2,684,407 0 1,613,078 0 8,770,626 13,484,560 2,702,275 10,372,293 17,368,612 3,085,559 0 0 0 343,679 13,939,374 17,368,612 10,616,287 10,616,287 7,779,104 1,666,105 0 0 0 1,266,601 486,000 0 0 0 0 780,601 .26 0
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