EX-99.1 2 d794518dex991.htm EX-99.1 EX-99.1

Exhibit 99.1

 

LOGO

NOBILITY HOMES, INC. ANNOUNCES INCREASED SALES AND EARNINGS FOR ITS FISCAL YEAR 2019

Ocala, FL…December 19, 2019 – Today Nobility Homes, Inc. (OTCQX: NOBH) announced increased sales and earnings results for its fiscal year ended November 2, 2019. Sales for fiscal year 2019 were up 11% to $47.3 million as compared to $42.8 million recorded in fiscal year 2018. Income from operations, up 45% for fiscal year 2019, was $8.3 million versus $5.7 million in the same period a year ago. Net income after taxes was $8.8 million as compared to $5.0 million for the same period last year. In June 2019 the Company sold its former Pace retail sales center property located in Pace, Florida for total net proceeds of $1.1 million and in October 2019 the Company sold its interest in Walden Woods South for total net proceeds of $1.5 million. Diluted earnings per share for fiscal year 2019 were $2.32 per share compared to $1.27 per share last year.

For the fourth quarter of fiscal 2019, sales were $11.8 million as compared to $12.8 million in the fourth quarter of last fiscal year. Income from operations for the fourth quarter of 2019 was up 6% to $2.1 million versus $2.0 million in the same period last year. Net income after taxes was $2.9 million versus last year’s results of $1.6 million. Diluted earnings per share for the fourth quarter were $0.79 per share versus earnings of $0.40 per share last year.

Nobility’s financial position during fiscal year 2019 remained very strong with cash and cash equivalents, short term investments and certificates of deposit of $33.2 million and no outstanding debt. Working capital is $38.1 million and our ratio of current assets to current liabilities is 5.2:1. Stockholders’ equity is $49.5 million and the book value per share of common stock increased to $13.50.

Terry Trexler, President, stated, “The demand for affordable manufactured housing in Florida continues to be good. According to the Florida Manufactured Housing Association, shipments in Florida for the period from November 2018 through October 2019 were up approximately 17% from the same period last year. Constrained consumer credit and the lack of lenders in our industry, partly as a result of an increase in government regulations, still affects our results by limiting many affordable manufactured housing buyers from purchasing homes. However, legislation may help improve this situation in the future.

Maintaining our strong financial position is vital for future growth and success. Because of very challenging business conditions during economic recessions in our market area, management will continue 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”.

On June 5, 2019 the Company celebrated its 52nd anniversary in business specializing in the design and production of quality, affordable manufactured homes. With multiple retail sales centers 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 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, management’s ability to attract and retain executive officers and key personnel, increased global tensions, impact of mandated tariffs on material prices, market disruptions resulting from terrorist or other attack and any armed conflict involving the United States and the impact of inflation.


NOBILITY HOMES, INC.

Condensed Consolidated Statements of Income and Comprehensive Income

(Unaudited)

 

     Three Months Ended     Twelve Months Ended  
     Nov. 2
2019
    Nov. 3,
2018
    Nov. 2
2019
    Nov. 3,
2018
 

Net sales

   $ 11,780,803     $ 12,796,547     $ 47,348,631     $ 42,812,265  

Cost of sales

     (8,188,674     (9,386,554     (33,695,631     (32,132,238
  

 

 

   

 

 

   

 

 

   

 

 

 

Gross profit

     3,592,129       3,409,993       13,653,000       10,680,027  

Selling, general and administrative expenses

     (1,492,146     (1,431,663     (5,352,319     (4,957,201
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating income

     2,099,983       1,978,330       8,300,681       5,722,826  
  

 

 

   

 

 

   

 

 

   

 

 

 

Other income:

        

Interest income

     124,147       145,144       556,142       362,121  

Undistributed earnings in joint venture – Majestic 21

     17,552       21,220       78,107       100,137  

Proceeds received under escrow arrangement

     89,763       —         379,104       172,911  

Gain on sale of assets

     1,510,000       —         2,390,129       203,512  

Miscellaneous

     41,652       21,288       75,366       43,955  
  

 

 

   

 

 

   

 

 

   

 

 

 

Total other income

     1,783,114       187,652       3,478,848       882,636  
  

 

 

   

 

 

   

 

 

   

 

 

 

Income before provision for income taxes

     3,883,097       2,165,982       11,779,529       6,605,462  

Income tax expense

     (971,312     (602,275     (2,969,109     (1,641,830
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income

     2,911,785       1,563,707       8,810,420       4,963,632  

Other comprehensive income (loss)

        

Unrealized investment income (loss), net of tax effect

     45,432       28,730       5,024       (21,826
  

 

 

   

 

 

   

 

 

   

 

 

 

Comprehensive income

   $ 2,957,217     $ 1,592,437     $ 8,815,444     $ 4,941,806  
  

 

 

   

 

 

   

 

 

   

 

 

 

Weighted average number of shares outstanding:

        

Basic

     3,666,790       3,873,731       3,803,400       3,912,188  

Diluted

     3,668,170       3,876,034       3,804,673       3,914,312  

Net income per share:

        

Basic

   $ 0.79     $ 0.40     $ 2.32     $ 1.27  

Diluted

   $ 0.79     $ 0.40     $ 2.32     $ 1.27  


NOBILITY HOMES, INC.

Condensed Consolidated Balance Sheets

 

     November 2,
2019
    November 3,
2018
 
     (Unaudited)        

Assets

    

Current assets

    

Cash and cash equivalents

   $ 22,533,965     $ 28,364,861  

Certificates of Deposit

     10,153,575       6,034,093  

Short-term investments

     521,283       537,767  

Accounts receivable – trade

     1,351,838       1,783,073  

Note receivable

     83,231       46,444  

Mortgage notes receivable

     17,896       15,664  

Inventories

     10,616,778       7,270,550  

Pre-owned homes, net

     331,103       933,640  

Prepaid expense and other current assets

     1,399,527       1,090,152  
  

 

 

   

 

 

 

Total current assets

     47,009,196       46,076,244  

Property, plant and equipment, net

     4,823,879       4,763,566  

Pre-owned homes, net

     808,128       473,191  

Note receivable, less current portion

     43,769       46,265  

Mortgage notes receivable, less current portion

     232,148       236,402  

Other investments

     1,649,273       1,571,166  

Property held for sale

     —         213,437  

Deferred income taxes

     80,405       40,156  

Cash surrender value of life insurance

     3,617,975       3,437,974  

Other assets

     156,287       156,287  
  

 

 

   

 

 

 

Total assets

   $ 58,421,060     $ 57,014,688  
  

 

 

   

 

 

 

Liabilities and Stockholders’ Equity

    

Current Liabilities:

    

Accounts payable

   $ 1,111,216     $ 1,085,095  

Accrued compensation

     748,626       869,657  

Accrued expenses and other liabilities

     2,055,949       1,349,381  

Income taxes payable

     2,016,132       579,786  

Customer deposits

     3,022,818       4,064,268  
  

 

 

   

 

 

 

Total current liabilities

     8,954,741       7,948,187  
  

 

 

   

 

 

 

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; 3,664,070 and 3,873,731 outstanding, respectively

     536,491       536,491  

Additional paid in capital

     10,687,662       10,670,848  

Retained earnings

     55,298,754       50,352,546  

Accumulated other comprehensive income

     389,164       390,407  

Less treasury stock at cost, 1,700,837 shares in 2019 and 1,491,176 shares in 2018

     (17,445,752     (12,883,791
  

 

 

   

 

 

 

Total stockholders’ equity

     49,466,319       49,066,501  
  

 

 

   

 

 

 

Total liabilities and stockholders’ equity

   $ 58,421,060     $ 57,014,688