SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): March 16, 2017
NOBILITY HOMES, INC.
(Exact name of registrant as specified in its charter)
Florida | 000-06506 | 59-1166102 | ||
(State or other jurisdiction of incorporation) |
(Commission File No.) |
(IRS Employer Identification No.) |
3741 S W 7th Street Ocala, Florida |
34474 | |||
(Address of principal executive offices) | (Zip Code) |
Registrants telephone number including area code: (352) 732-5157
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230 .425) |
☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
ITEM 2.02 | Results of Operations and Financial Condition |
On March 16, 2017, Nobility Homes, Inc. issued a press release regarding sales and earnings results for its first quarter ended February 4, 2017. The text of the press release is attached as Exhibit 99.1.
ITEM 9.01 | Financial Statements and Exhibits |
(d) | Exhibits: |
Exhibit 99.1 | Earnings release issued March 16, 2017 by Nobility Homes, Inc. |
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
NOBILITY HOMES, INC. | ||||||
March 17, 2017 | By: | /s/ Lynn J. Cramer, Jr. | ||||
Lynn J. Cramer, Jr., Treasurer and Principal Accounting Officer |
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Exhibit 99.1
NOBILITY HOMES, INC. ANNOUNCES INCREASED SALES AND EARNINGS FOR ITS FIRST QUARTER 2017
Ocala, FL March 16, 2017 - Today Nobility Homes, Inc. (OTCQX: NOBH) announced increased sales and earnings results for its first quarter ended February 4, 2017. Sales for first quarter 2017 were up 16% to $8,573,400 as compared to $7,374,050 recorded in first quarter 2016. Income from operations for first quarter 2017 was $1,056,477 versus $975,741 in the same period a year ago. Net income after taxes was $703,323 as compared to $678,401 for the same period last year. Diluted earnings per share for first quarter 2017 were $0.18 per share compared to $0.17 per share last year.
Nobilitys financial position during first quarter 2017 remains very strong with cash and cash equivalents and short term investments of $25,962,722 and no outstanding debt. Working capital is $34,248,039 and our ratio of current assets to current liabilities is 8.5:1. Stockholders equity is $45,498,192 and the book value per share of common stock increased to $11.36.
The Board of Directors declared a one-time cash dividend of $.15 per common share for fiscal year 2016, on March 10, 2017. The cash dividend is payable on April 17, 2017 to stockholders of record as of March 27, 2017.
Terry Trexler, President, stated, The demand for affordable manufactured housing in Florida and the U.S. continues to improve. According to the Florida Manufactured Housing Association, shipments in Florida for the period from November 2016 through January 2017 were up approximately 8.9% from the same period last year. Our sales and earnings continue to be affected by 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.
We believe 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 continues to evaluate all expenses and react in a manner consistent with maintaining our strong financial position, while exploring opportunities to expand our distribution and manufacturing operations.
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.
The Company has specialized for over 49 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 an investment in a retirement manufactured home community, 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 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, uncertain economic conditions, 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, possible labor shortages, possible materials shortages, increasing labor cost, cyclical nature of the manufactured housing industry, impact of fuel costs, catastrophic events impacting insurance costs, availability of insurance coverage for various risks to Nobility, market demographics, managements 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
February 4, 2017 |
November 5, 2016 |
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Assets |
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Current assets: |
||||||||
Cash and cash equivalents |
$ | 25,366,530 | $ | 24,562,638 | ||||
Short-term investments |
596,192 | 481,025 | ||||||
Accounts receivable - trade |
2,367,120 | 2,641,763 | ||||||
Note receivable |
| 500,000 | ||||||
Mortgage notes receivable |
10,596 | 9,717 | ||||||
Inventories |
7,573,643 | 6,969,081 | ||||||
Pre-owned homes, net |
1,617,393 | 1,295,694 | ||||||
Property held for sale |
213,437 | 213,437 | ||||||
Prepaid expenses and other current assets |
646,108 | 638,939 | ||||||
Deferred income taxes |
443,859 | 556,773 | ||||||
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|
|
|
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Total current assets |
38,834,878 | 37,869,067 | ||||||
Property, plant and equipment, net |
4,096,400 | 4,063,711 | ||||||
Pre-owned homes, net |
1,132,964 | 1,733,610 | ||||||
Interest receivable |
66,970 | 48,376 | ||||||
Note receivable, less current portion |
1,530,000 | 2,030,000 | ||||||
Mortgage notes receivable, less current portion |
173,391 | 174,270 | ||||||
Other investments |
1,396,094 | 1,367,496 | ||||||
Property held for sale |
386,018 | 386,018 | ||||||
Cash surrender value of life insurance |
3,145,915 | 3,085,916 | ||||||
Other assets |
156,287 | 156,287 | ||||||
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|
|
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Total assets |
$ | 50,918,917 | $ | 50,914,751 | ||||
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Liabilities and Stockholders Equity |
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Current liabilities: |
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Accounts payable |
$ | 771,477 | $ | 835,279 | ||||
Accrued compensation |
506,641 | 682,815 | ||||||
Accrued expenses and other current liabilities |
879,927 | 1,123,698 | ||||||
Income taxes payable |
304,827 | 759,128 | ||||||
Customer deposits |
2,123,967 | 1,706,795 | ||||||
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|
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Total current liabilities |
4,586,839 | 5,107,715 | ||||||
Deferred income taxes |
833,886 | 1,140,529 | ||||||
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|
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Total liabilities |
5,420,725 | 6,248,244 | ||||||
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Commitments and contingent liabilities |
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Stockholders equity: |
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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 |
10,667,908 | 10,663,348 | ||||||
Retained earnings |
44,161,594 | 43,458,271 | ||||||
Accumulated other comprehensive income |
381,338 | 266,171 | ||||||
Less treasury stock at cost, 1,360,067 shares in 2017 and 1,361,300 shares in 2016 |
(10,249,139 | ) | (10,257,774 | ) | ||||
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Total stockholders equity |
45,498,192 | 44,666,507 | ||||||
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Total liabilities and stockholders equity |
$ | 50,918,917 | $ | 50,914,751 | ||||
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NOBILITY HOMES, INC.
Consolidated Statements of Comprehensive Income
Three Months Ended | ||||||||
February 4, 2017 |
January 30, 2016 |
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Net sales |
$ | 8,573,400 | $ | 7,374,050 | ||||
Cost of goods sold |
(6,549,336 | ) | (5,617,615 | ) | ||||
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Gross profit |
2,024,064 | 1,756,435 | ||||||
Selling, general and administrative expenses |
(967,587 | ) | (780,694 | ) | ||||
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Operating income |
1,056,477 | 975,741 | ||||||
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Other income: |
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Interest income |
40,447 | 12,047 | ||||||
Undistributed earnings in joint venture - Majestic 21 |
28,598 | 33,408 | ||||||
Miscellaneous |
4,771 | 9,769 | ||||||
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Total other income |
73,816 | 55,224 | ||||||
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Income before provision for income taxes |
1,130,293 | 1,030,965 | ||||||
Income tax expense |
(426,970 | ) | (352,564 | ) | ||||
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Net income |
703,323 | 678,401 | ||||||
Other comprehensive income (loss) |
||||||||
Unrealized investment gain (loss) |
115,167 | (69,639 | ) | |||||
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Comprehensive income |
$ | 818,490 | $ | 608,762 | ||||
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Basic |
4,004,238 | 4,025,316 | ||||||
Diluted |
4,005,538 | 4,025,952 | ||||||
Net income per share: |
||||||||
Basic |
$ | 0.18 | $ | 0.17 | ||||
Diluted |
$ | 0.18 | $ | 0.17 |
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