EX-99.1 2 d942314dex991.htm EARNINGS RELEASE Earnings Release

Exhibit 99.1

 

 

LOGO

NOBILITY HOMES, INC. ANNOUNCES INCREASE IN SALES AND EARNINGS FOR ITS SECOND QUARTER 2015

Ocala, FL… June 11, 2015—Today Nobility Homes, Inc. (OTCQX: NOBH) announced sales and earnings results for its second quarter ended May 2, 2015. Sales for second quarter 2015 were up 23% to $6,706,118 as compared to $5,431,026 recorded in second quarter 2014. Income from operations was $665,719 versus $305,628 last year. Net income after taxes was $685,553 as compared to $284,900 last year. The net income after taxes for second quarter 2015 included a $51,657 non-cash loss from our investment in one retirement community limited partnership. Diluted earnings per share were $.17 per share compared to $.07 per share last year.

For the first six months of fiscal 2015, sales were up 28% to $12,282,918 as compared to $9,622,455 for the first six months of 2014. Income from operations was $1,085,539 versus $389,814 last year. Net income after taxes was $1,160,341 compared to $388,302 last year. The net income after taxes for the first six months of 2015 included a $57,350 non-cash loss from our investment in one retirement community limited partnership. Diluted earnings per share were $0.30 per share compared to $.10 per share last year.

Nobility’s financial position for the first six months of 2015 remains very strong with cash and cash equivalents and short term investments of $14,843,963 and no outstanding debt. Working capital is $23,399,712 and our ratio of current assets to current liabilities is 7.7:1. Stockholders’ equity is $37,572,700 and the book value per share of common stock increased to $9.27.

Terry Trexler, President, stated, “The demand for affordable manufactured housing in Florida and the U.S. is improving; however, 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.

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.

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.”

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

 

     May 2,
2015
    November 1,
2014
 
     (Unaudited)        

Assets

    

Current assets:

    

Cash and cash equivalents

   $ 14,376,563      $ 14,116,412   

Short-term investments

     467,400        496,444   

Accounts receivable - trade

     2,480,662        2,141,468   

Mortgage notes receivable, current

     8,600        7,126   

Income tax receivable

     463        5,964   

Inventories

     6,075,256        5,516,540   

Pre-owned homes, current

     1,985,149        2,839,203   

Prepaid expenses and other current assets

     943,977        286,990   

Deferred income taxes

     560,445        508,633   
  

 

 

   

 

 

 

Total current assets

  26,898,515      25,918,780   

Property, plant and equipment, net

  3,931,056      3,957,071   

Pre-owned homes

  2,879,577      1,711,000   

Mortgage notes receivable, long term

  179,248      180,800   

Other investments

  2,763,128      2,751,663   

Deferred income taxes

  1,435,555      1,487,367   

Other assets

  2,984,424      2,921,424   
  

 

 

   

 

 

 

Total assets

$ 41,071,503    $ 38,928,105   
  

 

 

   

 

 

 

Liabilities and Stockholders’ Equity

Current liabilities:

Accounts payable

$ 1,099,119    $ 502,259   

Accrued compensation

  277,842      320,502   

Accrued expenses and other current liabilities

  790,651      526,296   

Customer deposits

  1,331,191      1,029,088   
  

 

 

   

 

 

 

Total current liabilities

  3,498,803      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

  10,648,579      10,643,866   

Retained earnings

  35,738,023      34,577,682   

Accumulated other comprehensive income

  252,546      281,590   

Less treasury stock at cost, 1,310,538 shares in 2015 and 1,301,038 shares in 2014

  (9,602,939   (9,489,669
  

 

 

   

 

 

 

Total stockholders’ equity

  37,572,700      36,549,960   
  

 

 

   

 

 

 

Total liabilities and stockholders’ equity

$ 41,071,503    $ 38,928,105   
  

 

 

   

 

 

 


NOBILITY HOMES, INC.

Consolidated Statements of Comprehensive Income

(Unaudited)

 

     Three Months Ended     Six Months Ended  
    

May 2,

2015

   

May 3,

2014

   

May 2,

2015

   

May 3,

2014

 

Net sales

   $ 6,706,118      $ 5,431,026      $ 12,282,918      $ 9,622,455   

Cost of goods sold

     (5,167,950     (4,326,728     (9,571,981     (7,772,627
  

 

 

   

 

 

   

 

 

   

 

 

 

Gross profit

  1,538,168      1,104,298      2,710,937      1,849,828   

Selling, general and administrative expenses

  (872,449   (798,670   (1,625,398   (1,460,014
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating income

  665,719      305,628      1,085,539      389,814   
  

 

 

   

 

 

   

 

 

   

 

 

 

Other income (loss):

Interest income

  16,852      18,182      29,972      28,014   

Undistributed earnings in joint venture - Majestic 21

  35,237      39,477      68,815      71,808   

Losses from investments in retirement community limited partnerships

  (51,657   (95,286   (57,350   (134,687

Miscellaneous

  23,696      16,899      38,866      33,353   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total other income (loss)

  24,128      (20,728   80,303      (1,512
  

 

 

   

 

 

   

 

 

   

 

 

 

Income before provision for income taxes

  689,847      284,900      1,165,842      388,302   

Income tax expense

  (4,294   —        (5,501   —     
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income

  685,553      284,900      1,160,341      388,302   

Other comprehensive income (loss)

Unrealized investment gain (loss)

  41,941      (13,120   (29,044   4,823   
  

 

 

   

 

 

   

 

 

   

 

 

 

Comprehensive income

$ 727,494    $ 271,780    $ 1,131,297    $ 393,125   
  

 

 

   

 

 

   

 

 

   

 

 

 

Weighed average number of shares outstanding:

Basic

  4,061,853      4,058,115      4,062,883      4,058,054   

Diluted

  4,062,423      4,060,907      4,063,314      4,059,982   

Net income per share:

Basic

$ 0.17    $ 0.07    $ 0.30    $ 0.10   

Diluted

$ 0.17    $ 0.07    $ 0.30    $ 0.10