Exhibit 99.1

 

NOBILITY HOMES, INC. ANNOUNCES SALES AND EARNINGS FOR ITS SECOND QUARTER 2023

Ocala, FL…June 5, 2023 - Today Nobility Homes, Inc. (OTCQX: NOBH) announced sales and earnings for its second quarter ended May 6, 2023.

Sales for the second quarter of 2023 increased 58% to $16.8 million as compared to $10.6 million recorded in the second quarter of 2022. Income from operations for the second quarter of 2023 increased 127% to $3.7 million versus $1.6 million in the same period a year ago. Net income after taxes increased 96% to $2.9 million as compared to $1.5 million for the same period last year. Diluted earnings for the second quarter of 2023 were $0.85 per share compared to $0.42 per share last year.

For the first six months of fiscal 2023, sales increased 58% to $33.9 million as compared to $21.5 million in the second quarter of 2022. Income from operations for the second quarter of 2023 increased 156% to $7.6 million versus $3.0 million in the same period last year. Net income after taxes increased 126% to $5.9 million versus last year’s results of $2.6 million. Diluted earnings were $1.75 per share compared to $0.74 per share last year.

Nobility’s financial position for the first six months 2023 remains strong with cash and cash equivalents, certificates of deposit and short-term investments of $23.5 million and no outstanding debt. Working capital is $35.6 million and our ratio of current assets to current liabilities is 3.6:1. Stockholders’ equity is $50.5 million and the book value per share of common stock of $14.98.

Terry Trexler, President, stated, “The primary reason that sales and net income increased was due to the severe supply chain challenges experienced during in the first six months of fiscal 2022 that impacted our ability to complete and deliver homes to customers. During the first six months of fiscal 2023, the supply chain challenges eased compared to the prior period and we were able to complete and deliver more retail customers’ homes, which included us selling thirty-nine (39) ($6,558,882) new homes during the first six months of 2023 from other manufacturers, to help reduce our long backlog. Although net sales increased during the three and six months ended May 6, 2023, as compared to the same period last year, we continue to experience limitations being placed on certain key production materials from suppliers, the delay or lack of key components from vendors as well as back orders, delayed shipments, price increases and labor shortages. These issues continue to cause delays in the completion of the homes at the manufacturing facility and the set-up process of retail homes in the field, resulting in decreased net sales due to our inability to timely deliver and set up homes to customers. We expect that these challenges will continue throughout 2023 and potentially beyond. The Company also continues to experience inflation in some building products resulting in increases to our material and labor costs which may increase the wholesale and retail selling prices of our homes. Additionally, potential customers may delay or defer purchasing decisions considering the rising interest rate environment.

The current demand for affordable manufactured housing in Florida and the U.S. is slowing because of the increased interest rate environment driven by the Federal Reserve. According to the Florida Manufactured Housing Association, shipments for the industry in Florida for the period from November 2022 through April 2023 were a decline of approximately 10% from the same period last year.

Maintaining our strong financial position is vital for future growth and success. Our many 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.”

On June 5, 2023, the Company will celebrate its 56th anniversary in business specializing in the design and production of quality, affordable manufactured and modular homes. With multiple retail sales centers in Florida for over 33 years and an insurance agency subsidiary, we are 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 121 OR TERRY@NOBILITYHOMES.COM OR TOM@NOBILITYHOMES.COM

Certain statements in this report are unaudited or forward-looking statements within the meaning of the federal securities laws. Although Nobility believes that the amounts and 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, the potential adverse impact on our business caused by competitive pricing pressures at both the wholesale and retail levels, inflation, increasing material costs (including forest based products) or availability of materials due to supply chain interruptions (such as current inflation with forest products and supply issues with vinyl siding and PVC piping), changes in market demand, increase 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 attacks or other events such as a pandemic, any armed conflict involving the United States and the impact of inflation.

NOBILITY HOMES, INC.

Condensed Consolidated Balance Sheets

	May 6,			November 5,
	2023			2022
	(Unaudited)
Assets
Current assets:
Cash and cash equivalents	$	15,167,269		$	16,653,449
Certificates of deposit		7,861,355			3,903,888
Short-term investments		460,054			589,071
Accounts receivable - trade		988,570			1,288,645
Note receivable		23,905			23,905
Mortgage notes receivable		4,286			16,191
Inventories		23,329,664			23,457,493
Prepaid expenses and other current assets		1,723,686			2,172,675
Total current assets		49,558,789			48,105,317
Property, plant and equipment, net		8,236,805			7,915,695
Note receivable, less current portion		5,181			16,599
Mortgage notes receivable, less current portion		143,142			131,514
Other investments		1,897,341			1,848,893
Property held for resale		26,590			—
Deferred income taxes		126,475			43,778
Cash surrender value of life insurance		4,231,085			4,143,035
Other assets		156,287			156,287
Total assets	$	64,381,695		$	62,361,118
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$	1,234,033		$	1,119,188
Accrued compensation		1,235,691			1,132,423
Accrued expenses and other current liabilities		1,674,052			1,742,696
Income taxes payable		995,286			229,200
Customer deposits		8,773,811			10,214,078
Total current liabilities		13,912,873			14,437,585
Commitments and contingencies
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; 3,368,829 shares outstanding, respectively		536,491			536,491
Additional paid in capital		10,906,313			10,849,687
Retained earnings		65,986,716			63,441,812
Less treasury stock at cost, 1,996,078 and 1,993,995 shares, respectively		(26,960,698	)		(26,904,457	)
Total stockholders' equity		50,468,822			47,923,533
Total liabilities and stockholders' equity	$	64,381,695		$	62,361,118

NOBILITY HOMES, INC.

Condensed Consolidated Statements of Income

(Unaudited)

	Three Months Ended						Six Months Ended
	May 6,			May 7,			May 6,			May 7,
	2023			2022			2023			2022
Net sales	$	16,779,597		$	10,645,046		$	33,944,350		$	21,453,316
Cost of sales		(10,826,286	)		(7,623,128	)		(22,119,443	)		(15,703,170	)
Gross profit		5,953,311			3,021,918			11,824,907			5,750,146
Selling, general and administrative expenses		(2,215,198	)		(1,378,606	)		(4,250,675	)		(2,795,149	)
Operating income		3,738,113			1,643,312			7,574,232			2,954,997
Other income (loss):
Interest income		169,982			39,577			310,015			114,257
Undistributed earnings in joint venture - Majestic 21		25,622			12,665			48,448			25,222
Proceeds received under escrow arrangement		94,165			115,454			94,165			233,499
Decrease in fair value of equity investment		(111,075	)		(19,681	)		(129,017	)		(23,774	)
Gain on disposal of property, plant and equipment		—			88,936			—			88,936
Miscellaneous		18,590			12,352			26,362			25,908
Total other income		197,284			249,303			349,973			464,048
Income before provision for income taxes		3,935,397			1,892,615			7,924,205			3,419,045
Income tax expense		(1,076,548	)		(435,789	)		(2,008,389	)		(805,185	)
Net income	$	2,858,849		$	1,456,826		$	5,915,816		$	2,613,860
Weighted average number of shares outstanding:
Basic		3,370,157			3,476,508			3,370,534			3,504,655
Diluted		3,373,036			3,487,516			3,372,417			3,515,994
Net income per share:
Basic	$	0.85		$	0.42		$	1.76		$	0.75
Diluted	$	0.85		$	0.42		$	1.75		$	0.74