EX-99 2 dkm334a.txt EXHIBIT 99 - PRESS RELEASE [GRAPHIC OMITTED] Nobility Homes, Inc. --------------------------------------------------- Controlling Our Future Through Vertical Integration NOBILITY HOMES ANNOUNCES INCREASED SALES AND EARNINGS FOR ITS THIRD QUARTER 2004 Ocala, FL...September 9, 2004-- Today Nobility Homes, Inc. (NASDAQ: NOBH) announced sales and earnings results for its third quarter ended July 31, 2004. Sales for the third quarter were up 30% to $12,310,878 as compared to $9,465,179 recorded in third quarter of 2003. Income from operations increased 107% to $1,670,160 versus $808,164 in the same period a year ago. Net income after taxes was up 93% to $1,220,138 as compared to $633,730 for the same period last year. Diluted earnings per share for the third quarter improved 88% to $0.30 per share compared to $0.16 per share last year. For the first nine months of fiscal 2004, sales increased 35% to $35,621,719 as compared to sales of $26,302,356 in the first nine months of last fiscal year. Income from operations for the first nine months improved 68% to $4,276,005 versus $2,542,522 in the same period last year. Net income increased 52% to $3,157,376 versus last year's results of $2,079,092. Diluted earnings per share were up 48% to $0.77 per share versus last year's nine months results of $0.52 per share. Nobility's financial position continued to improve during the third quarter of 2004 and remains very strong with cash and cash equivalents, short and long-term investments of $17,358,976 and no outstanding debt. Working capital is $14,567,824 and our ratio of current assets to current liabilities is 3.8:1. Stockholders' equity increased to $29,716,464 and the book value per share of common stock increased to $7.40. The Company did not purchase any shares of its common stock during the third quarter of 2004 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. "Third quarter sales of fiscal 2004 were strong even with tight retail credit standards still evident; improving, but high unemployment; and uncertain economic conditions present in our country. Latest three-month manufactured housing industry shipments nationwide, declined an estimated 6%, and industry shipments in Florida, our primary market, were up an estimated 16%", President Terry Trexler said. Trexler continued, "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 continuous price increases in lumber, OSB, sheetrock, 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 increasing but still low interest rates in 2004, management expects the demand for our homes to improve. Increase demand also could result from building replacement homes due to the recent hurricanes in Florida. 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 37 years in the design and production of quality, affordable manufactured homes at its two plants located in central Florida. With 17 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, SEPTEMBER 9, 2004, AT 4:30 PM EASTERN TIME. TO PARTICIPATE, PLEASE DIAL 800-967-7188. THE CONFIRMATION CODE FOR THE CALL IS 854714 YOU MAY ALSO ACCESS THE CALL AT www.nobilityhomes.com OR http://phx.corporate-ir.net/playerlink.zhtml?c=60939&s=wm&e=940307 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
July 31, November 1, 2004 2003 ---------------- ---------------- (Unaudited) Assets Current assets: Cash and cash equivalents $ 8,111,110 $ 10,641,748 Short-term investments 886,225 342,550 Accounts receivable - trade 1,992,511 2,096,128 Inventories 7,854,469 6,557,659 Deferred income taxes 472,394 485,716 Prepaid expenses and other current assets 478,080 501,014 ------------ ----------- Total current assets 19,794,789 20,624,815 Property, plant and equipment, net 3,339,858 3,136,506 Long-term investments 8,361,641 5,249,825 Investment in joint venture - Majestic 21 1,465,709 1,203,804 Deferred income taxes - noncurrent 15,050 15,050 Other assets 1,966,382 2,474,905 ------------ --------- Total assets $ 34,943,429 $ 32,704,905 ============ =========== Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 919,425 $ 1,484,997 Accrued expenses and other current liabilities 342,082 757,498 Accrued compensation 643,540 524,784 Income taxes payable 343,675 890,675 Customer deposits 2,978,243 2,230,633 ------------ ----------- Total current liabilities 5,226,965 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 8,654,385 8,613,640 Retained earnings 28,256,638 25,500,362 Accumulated other comprehensive income 66,602 35,516 Less treasury stock at cost, 1,346,096 and 1,354,663 shares, respectively, in 2004 and 2003 (7,794,652) (7,869,691) ------------ ----------- Total stockholders' equity 29,719,464 26,816,318 ------------ ----------- Total liabilities and stockholders' equity $ 34,946,429 $ 32,704,905 ============ ===========
NOBILITY HOMES, INC. CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (Unaudited)
Three Months Ended Nine Months Ended ------------------ ----------------- July 31, August 2, July 31, August 2, 2004 2003 2004 2003 ------------- ----------------- ---------------- ------------- Net sales $ 12,280,293 $ 9,441,504 $ 35,538,767 $ 26,278,681 Net sales - related parties 30,585 23,675 82,952 23,675 ----------- ----------- ------------ ----------- Total net sales 12,310,878 9,465,179 35,621,719 26,302,356 Cost of goods sold (9,070,731) (7,167,499) (26,461,090) (19,553,721) ----------- ----------- ------------ ----------- Gross profit 3,240,147 2,297,680 9,160,629 6,748,635 Selling, general and administrative expenses (1,569,987) (1,489,516) (4,884,624) (4,206,113) ----------- ----------- ------------ ----------- Operating income 1,670,160 808,164 4,276,005 2,542,522 ----------- ----------- ------------ ----------- Other income: Interest income 83,491 49,276 249,922 132,811 Undistributed earnings in joint venture - Majestic 21 90,640 48,160 261,705 158,723 Receipt of stock in connection with demutualization of insurance company - - - 167,551 Miscellaneous income 39,847 52,130 72,744 69,485 ----------- ----------- ------------ ----------- 213,978 149,566 584,371 528,570 ----------- ----------- ------------ ----------- Income before provision for income taxes 1,884,138 957,730 4,860,376 3,071,092 Provision for income taxes (664,000) (324,000) (1,703,000) (992,000) ----------- ----------- ------------ ----------- Net income 1,220,138 633,730 3,157,376 2,079,092 Other comprehensive income, net of tax Unrealized investment gain 10,283 11,461 31,086 23,941 ----------- ----------- ------------ ----------- Comprehensive income $ 1,230,421 $ 645,191 $ 3,188,462 $ 2,103,033 =========== =========== ============ =========== Average shares outstanding Basic 4,018,646 3,987,513 4,014,423 3,999,311 Diluted 4,137,460 4,015,417 4,108,026 4,020,333 Earnings per share Basic $ 0.30 $ 0.16 $ 0.79 $ 0.52 Diluted $ 0.30 $ 0.16 $ 0.77 $ 0.52 Divdends per commom share $ - $ - $ 0.10 $ -