EX-99 3 dkm119a.txt EXHIBIT 99 - PRESS RELEASE [GRAPHIC OMITTED] NOBILITY HOMES INC. P.O. BOX 1659 OCALA, FLORIDA 34478 352-732-5157 www.nobilityhomes.com NOBILITY HOMES ANNOUNCES SALES AND EARNINGS FOR ITS FIRST QUARTER 2004 Ocala, FL...March 4, 2004 Nobility Homes, Inc. (NASDAQ-NMS SYMBOL NOBH) today announced sales and earnings results for its first quarter ended January 31, 2004. Sales for the first quarter of fiscal 2004 were up 20% to $10,198,241 as compared to $8,482,415 recorded in first quarter of 2003. Income from operations for fiscal year 2004 was up 20% to $1,002,011 versus $838,387 in the same period a year ago. Net income after taxes was up 31% to $783,881 as compared to $600,584 last year. Basic and diluted earnings per share for the first quarter increased 27% to $0.19 per share compared to $0.15 per share last year. Nobility's financial position continued to improve during the first quarter of 2004 and remains very strong with cash and cash equivalents, short and long-term investments of $16,412,952 and no outstanding debt. Working capital is $15,015,935 and our ratio of current assets to current liabilities is 3.9:1. Stockholders' equity increased to $27,225,805 and the book value per share of common stock increased to $6.79. The Company did not purchase any shares of its common stock during the first quarter but is authorized by the Company's Board of Directors to purchase up to 100,000 additional shares of the Company's stock in the open market. The Board of Directors declared an annual cash dividend of $0.10 per common share for fiscal year 2003, payable January 12, 2004 to stockholders of record as of December 29, 2003. Terry Trexler, President stated, "First quarter sales of fiscal 2004, historically our weakest quarter, continued to be adversely impacted by the very competitive market caused by the industry's high repossession rate, tight retail credit standards, high unemployment and uncertain economic conditions in our country. Latest twelve-month manufactured housing industry shipments nationwide declined an estimated 22% and industry shipments in Florida, our primary market, were down an estimated 5%. Although Nobility continues to out-perform the industry, in the near term we anticipate continued pressure on both sales and earnings resulting from these factors, plus recent price increases in lumber, OSB, steel and oil-related products and services. Management is optimistic for the remainder of fiscal 2004, convinced that our specific geographic market is one of the best long-term growth areas in the country and because of the strong operating leverage inherent in the Company. With an improving economy, better consumer confidence, declining unemployment claims, and continued low interest rates in 2004 management expects the demand for our homes to improve. The Company is well positioned to capitalize on the demand in the future by controlling the retail distribution, financing, and insuring of our homes and by being financially sound to take advantage of opportunities as they develop. Nobility Homes, Inc. has specialized for the past 36 years in the design and production of quality, affordable manufactured homes at its two plants located in central Florida. With seventeen Company-owned retail sales centers, a finance company joint venture, and an insurance subsidiary, Nobility is the only vertically integrated manufactured home company headquartered in Florida. Management will hold a conference call on Thursday, March 4, 2004, at 4:30 pm eastern time. To participate, please dial 888-569-5033. The confirmation code for the call is 564805. You may also access the call at www.nobilityhomes.com OR http://www.firstcall events.com/service/ajwz401497970gf12.html Contact person: Terry Trexler 352.732.5157 Certain statements in this report are forward-looking statements within the meaning of the federal securities laws, including our statement that working capital requirements will be met with internal sources. 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 purchases, consumer confidence, adverse weather conditions that reduce sales at retail centers, the risk of manufacturing plant shutdowns due to storms or other factors, and the impact of marketing and cost-management programs. NOBILITY HOMES, INC. CONSOLIDATED BALANCE SHEETS
January 31, November 1, 2004 2003 ---------------- ---------------- (Unaudited) Assets Current Assets: Cash and cash equivalents $ 10,305,550 $ 10,641,748 Short-term investments 369,556 342,550 Accounts receivable - trade 814,769 2,096,128 Inventories 7,431,676 6,557,659 Deferred income taxes 477,541 485,716 Prepaid expenses and other current assets 829,205 501,014 ------------ ----------- Total current assets 20,228,297 20,624,815 Property, plant and equipment, net 3,283,286 3,136,506 Long-term investments 5,737,846 5,249,825 Investment in joint venture - Majestic 21 1,274,806 1,203,804 Deferred income taxes - noncurrent 15,050 15,050 Other assets 1,898,882 2,474,905 ------------ ----------- Total assets $ 32,438,167 $ 32,704,905 ============ =========== Liabilities and stockholders' equity Current liabilities: Accounts payable $ 1,077,772 $ 1,484,997 Accrued expenses and other current liabilities 2,974,117 2,988,131 Accrued compensation 512,798 524,784 Income taxes payable 647,675 890,675 ------------ ----------- Total current liabilities 5,212,362 5,888,587 ------------ ----------- Commitments and contingent liabilities Stockholders' equity: Preferred stock, $.10 par value, 500,000 shares authorized, none issued - - Common stock, $.10 par value, 10,000,000 shares authorized; 5,364,907 shares issued 536,491 536,491 Additional paid in capital 8,612,719 8,613,640 Retained earnings 25,883,143 25,500,362 Accumulated other comprehensive income 54,592 35,516 Less treasury stock at cost, 1,353,686 and 1,354,663 shares, respectively, in 2004 and 2003 (7,861,140) (7,869,691) ------------ ----------- Total stockholders' equity 27,225,805 26,816,318 ------------ ----------- Total liabilities and stockholders' equity $ 32,438,167 $ 32,704,905 ============ ===========
NOBILITY HOMES, INC. CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
Three Months Ended ------------------ January 31, February 1, 2004 2003 ----------------- ----------------- Net sales $ 10,198,241 $ 8,482,415 Net sales - related parties - - ----------- ------------ Total net sales 10,198,241 8,482,415 Cost of goods sold (7,611,701) (6,258,985) ----------- ------------ Gross profit 2,586,540 2,223,430 Selling, general and administrative expenses (1,584,529) (1,385,043) ----------- ------------ Operating income 1,002,011 838,387 ----------- ------------ Other income: Interest income 88,461 40,297 Undistributed earnings in joint venture - Majestic 21 71,002 21,567 Miscellaneous income 29,407 9,333 ----------- ------------ 188,870 71,197 ----------- ------------ Income before provision for income taxes 1,190,881 909,584 Provision for income taxes (407,000) (309,000) ----------- ------------ Net income 783,881 600,584 Other comprehensive income, net of tax Unrealized investment gain 19,076 - ----------- ------------ Comprehensive income $ 802,957 $ 600,584 =========== ============ Average shares outstanding Basic 4,010,255 4,014,246 Diluted 4,063,875 4,036,337 Earnings per share Basic $ 0.19 $ 0.15 Diluted $ 0.19 $ 0.15