Nobility Homes, Inc. Announces Increase in Sales and Earnings for Its Second Quarter 2014
June 13 2014 - 10:44AM
Today Nobility Homes, Inc. (Pink Sheets:NOBH) announced sales and
earnings results for its second quarter ended May 3, 2014. Sales
for second quarter 2014 were up 94% to $7,416,806 as compared to
$3,813,619 recorded in second quarter 2013. Income from operations
was $305,628 versus a loss of $49,032 last year. Net income after
taxes was $284,900 as compared to a loss of $47,021 last year. The
net income after taxes for second quarter 2014 included a $95,286
non-cash loss from our investment in one retirement community
limited partnership. Diluted earnings per share were $.07 per share
compared to $.01 loss per share last year.
For the first six months of fiscal 2014, sales were up 61% to
$11,608,235 as compared to $7,215,286 for the first six months of
2013. Income from operations was $389,814 versus a loss of
$55,749 last year. Net income after taxes was $388,302
compared to a loss of $42,176 last year. The net income after
taxes for the first six months of 2014 included a $134,687 non-cash
loss from our investment in one retirement community limited
partnership. Diluted earnings per share were $0.10 per share
compared to $.01 loss per share last year.
Nobility's financial position for the first six months of 2014
remains very strong with cash and cash equivalents and short term
investments of $12,736,291 and no outstanding debt. Working
capital is $21,737,132 and our ratio of current assets to current
liabilities is 13.4:1. Stockholders' equity is $35,601,237 and the
book value per share of common stock increased to $8.77.
Terry Trexler, President, stated, "Our sales for the second
quarter of 2014 were strong despite tight retail credit standards
and uncertain economic conditions present in our
country. According to the Florida Manufactured Housing
Association, shipments in Florida for the period from November 2013
through April 2014 were up approximately 21% from the same period
last year. We believe that the long-term demographic trends favor
future growth in the Florida market area we serve, and that the
current economic environment requires us to maintain our strong
financial position for future growth and success."
We have specialized for 47 years 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 |
|
|
|
|
May 3, |
November 2, |
|
2014 |
2013 |
|
(Unaudited) |
|
Assets |
|
|
Current assets: |
|
|
Cash and cash
equivalents |
$ 12,276,236 |
$ 10,468,453 |
Short-term
investments |
460,055 |
455,232 |
Accounts receivable -
trade |
855,481 |
2,701,057 |
Mortgage notes
receivable, current |
5,865 |
4,549 |
Income tax
receivable |
10,000 |
-- |
Inventories |
5,994,972 |
5,043,816 |
Pre-owned homes,
current |
2,854,706 |
2,187,598 |
Prepaid expenses and
other current assets |
472,516 |
319,546 |
Deferred income
taxes |
557,525 |
656,461 |
Total
current assets |
23,487,356 |
21,836,712 |
|
|
|
Property, plant and equipment,
net |
3,808,956 |
3,731,463 |
Pre-owned homes |
2,696,024 |
4,316,397 |
Mortgage notes receivable, long
term |
182,301 |
183,753 |
Other investments |
2,875,394 |
2,938,273 |
Deferred income taxes |
1,438,475 |
1,339,539 |
Other assets |
2,862,955 |
2,804,484 |
Total
assets |
$ 37,351,461 |
$ 37,150,621 |
|
|
|
Liabilities and Stockholders'
Equity |
|
|
Current liabilities: |
|
|
Accounts
payable |
$ 375,916 |
$ 645,519 |
Accrued
compensation |
238,808 |
170,026 |
Accrued expenses and
other current liabilities |
448,549 |
614,368 |
Customer
deposits |
686,951 |
537,052 |
Total
current liabilities |
1,750,224 |
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 |
10,636,716 |
10,632,060 |
Retained
earnings |
33,708,086 |
33,319,784 |
Accumulated other
comprehensive income |
245,201 |
240,378 |
Less treasury stock at
cost, 1,305,913 shares in 2014 and 1,307,854 shares in
2013 |
(9,525,257) |
(9,545,057) |
Total
stockholders' equity |
35,601,237 |
35,183,656 |
Total
liabilities and stockholders' equity |
$ 37,351,461 |
$ 37,150,621 |
|
|
|
|
NOBILITY HOMES,
INC. |
Consolidated Statements
of Comprehensive Income (Loss) |
(Unaudited) |
|
|
|
|
|
|
Three
Months Ended |
Six
Months Ended |
|
May 3, |
May 4, |
May 3, |
May 4, |
|
2014 |
2013 |
2014 |
2013 |
|
|
|
|
|
Net sales |
$ 7,416,806 |
$ 3,813,619 |
$ 11,608,235 |
$ 7,215,286 |
|
|
|
|
|
Cost of goods sold |
(6,312,508) |
(3,235,633) |
(9,758,407) |
(6,091,517) |
|
|
|
|
|
Gross
profit |
1,104,298 |
577,986 |
1,849,828 |
1,123,769 |
|
|
|
|
|
Selling, general and administrative
expenses |
(798,670) |
(627,019) |
(1,460,014) |
(1,179,518) |
|
|
|
|
|
Operating income
(loss) |
305,628 |
(49,032) |
389,814 |
(55,749) |
|
|
|
|
|
Other income (loss): |
|
|
|
|
Interest
income |
18,182 |
23,407 |
28,014 |
28,946 |
Undistributed earnings
in joint venture -- Majestic 21 |
39,477 |
42,964 |
71,808 |
60,200 |
Losses from investments
in retirement community limited partnerships |
(95,286) |
(83,504) |
(134,687) |
(129,841) |
Miscellaneous |
16,899 |
19,144 |
33,353 |
54,268 |
Total
other income (loss) |
(20,728) |
2,011 |
(1,512) |
13,573 |
|
|
|
|
|
Income (loss) before provision for
income taxes |
284,900 |
(47,021) |
388,302 |
(42,176) |
|
|
|
|
|
Income tax |
-- |
-- |
-- |
-- |
|
|
|
|
|
Net income
(loss) |
284,900 |
(47,021) |
388,302 |
(42,176) |
|
|
|
|
|
Other comprehensive income
(loss) |
|
|
|
|
Unrealized investment
gain (loss) |
(13,120) |
35,660 |
4,823 |
44,630 |
|
|
|
|
|
Comprehensive income
(loss) |
$ 271,780 |
$ (11,361) |
$ 393,125 |
$ 2,454 |
|
|
|
|
|
Weighed average number of shares
outstanding: |
|
|
|
|
Basic |
4,058,115 |
4,057,053 |
4,058,054 |
4,057,053 |
Diluted |
4,060,907 |
4,057,053 |
4,059,982 |
4,057,053 |
|
|
|
|
|
Net income (loss) per
share: |
|
|
|
|
Basic |
$ 0.07 |
$ (0.01) |
$ 0.10 |
$ (0.01) |
Diluted |
$ 0.07 |
$ (0.01) |
$ 0.10 |
$ (0.01) |
|
|
|
|
|
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