Nobility Homes, Inc. Announces Sales and Earnings for Its First Quarter 2014
March 13 2014 - 5:23PM
Today Nobility Homes, Inc. (Pink Sheets:NOBH) announced sales and
earnings results for its first quarter ended February 1, 2014.
Sales for first quarter 2014 were up 23% to $4,191,429 as compared
to $3,401,667 recorded in first quarter 2013. Income from
operations for first quarter was $84,186 versus a loss of $6,717 in
the same period a year ago. Net income after taxes was $103,402 as
compared to $4,845 for the same period last year. The net income
after taxes for first quarter 2014 included a $39,401 non-cash loss
from our investment in a retirement community limited partnership.
Diluted earnings per share for first quarter 2014 were $.03 per
share compared to breakeven last year.
Nobility's financial position in first quarter 2014 remains very
strong with cash and cash equivalents and short term investments of
$12,101,200 and no outstanding debt. Working capital is $20,733,501
and our ratio of current assets to current liabilities is 15.4:1.
Stockholders' equity is $35,319,524 and the book value per share of
common stock increased to $8.70.
Terry Trexler, President, stated, "Our sales are affected by the
strength of the U.S. economy, interest rates and employment levels,
consumer confidence and the availability of retail financing. We
believe the lack of retail financing for manufactured housing
continues to have a negative effect on our sales, although the
overall economy has shown improvement. According to the Florida
Manufactured Housing Association, shipments in Florida for the
period from November 2013 through January 2014 were up
approximately 12% from the same period last year. Although
shipments increased, the intermediate outlook for the manufactured
housing industry in Florida and the nation is uncertain. The
long-term demographic trends still favor future growth in the
Florida market area we serve. Management remains convinced that our
specific geographic market is one of the best long-term growth
areas in the country. The country must experience a better economy
with less uncertainty, continued improved sales in the existing
home market, declining unemployment, increased consumer confidence
and more retail financing for the sales of our affordable homes for
the Company to improve significantly. Management will continue to
evaluate Prestige's retail model centers in Florida, along with all
expenses and will react in a manner consistent with maintaining our
strong financial position".
For 46 years we have specialized in the design and production of
quality, affordable manufactured homes at our plant located in
central Florida. With our multiple retail sales centers, an
insurance subsidiary, and investments in retirement manufactured
home communities, 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,
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 |
|
|
February
1, |
November 2, |
|
2014 |
2013 |
|
(Unaudited) |
|
Assets |
|
|
Current assets: |
|
|
Cash and cash
equivalents |
$ 11,628,025 |
$ 10,468,453 |
Short-term
investments |
473,175 |
455,232 |
Accounts receivable -
trade |
924,310 |
2,701,057 |
Mortgage notes
receivable, current |
5,163 |
4,549 |
Income tax
receivable |
10,000 |
-- |
Inventories |
5,517,600 |
5,043,816 |
Pre-owned homes,
current |
2,571,210 |
2,187,598 |
Prepaid expenses and
other current assets |
459,601 |
319,546 |
Deferred income
taxes |
589,171 |
656,461 |
Total current
assets |
22,178,255 |
21,836,712 |
|
|
|
Property, plant and equipment,
net |
3,762,707 |
3,731,463 |
Pre-owned homes |
3,468,532 |
4,316,397 |
Mortgage notes receivable, long
term |
183,033 |
183,753 |
Other investments |
2,931,203 |
2,938,273 |
Deferred income taxes |
1,406,829 |
1,339,539 |
Other assets |
2,833,719 |
2,804,484 |
Total
assets |
$ 36,764,278 |
$ 37,150,621 |
|
|
|
Liabilities and Stockholders'
Equity |
|
|
Current liabilities: |
|
|
Accounts
payable |
$ 447,437 |
$ 645,519 |
Accrued
compensation |
80,451 |
170,026 |
Accrued expenses and
other current liabilities |
437,291 |
614,368 |
Customer
deposits |
479,575 |
537,052 |
Total current
liabilities |
1,444,754 |
1,966,965 |
|
|
|
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 |
10,634,083 |
10,632,060 |
Retained
earnings |
33,423,186 |
33,319,784 |
Accumulated other
comprehensive income |
258,321 |
240,378 |
Less treasury stock at
cost, 1,306,913 shares in 2014 and 1,307,854 shares in
2013 |
$ (9,532,557) |
(9,545,057) |
Total stockholders'
equity |
35,319,524 |
35,183,656 |
Total liabilities and
stockholders' equity |
$ 36,764,278 |
$ 37,150,621 |
|
NOBILITY HOMES,
INC. |
Consolidated Statements
of Comprehensive Income |
(Unaudited) |
|
|
Three Months
Ended |
|
February 1, |
February 2, |
|
2014 |
2013 |
|
|
|
Net sales |
$ 4,191,429 |
$ 3,401,667 |
|
|
|
Cost of goods sold |
(3,445,899) |
(2,855,884) |
|
|
|
Gross
profit |
745,530 |
545,783 |
|
|
|
Selling, general and administrative
expenses |
(661,344) |
(552,500) |
|
|
|
Operating income
(loss) |
84,186 |
(6,717) |
|
|
|
Other income (loss): |
|
|
Interest
income |
9,832 |
5,539 |
Undistributed earnings
in joint venture -- Majestic 21 |
32,331 |
17,236 |
Losses from investments
in retirement community limited partnerships |
(39,401) |
(46,337) |
Miscellaneous |
16,454 |
35,124 |
Total other
income |
19,216 |
11,562 |
|
|
|
Income before provision for income
taxes |
103,402 |
4,845 |
|
|
|
Income tax benefit |
-- |
-- |
|
|
|
Net
income |
103,402 |
4,845 |
|
|
|
Other comprehensive
income |
|
|
Unrealized investment
gain |
17,943 |
8,970 |
|
|
|
Comprehensive
income |
$ 121,345 |
$ 13,815 |
|
|
|
Weighed average number of shares
outstanding: |
|
|
Basic |
4,057,994 |
4,057,023 |
Diluted |
4,059,316 |
4,057,023 |
|
|
|
Net income per share: |
|
|
Basic |
$ 0.03 |
$ -- |
Diluted |
$ 0.03 |
$ -- |
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