NOBH Nobility Homes Inc (QX)

 

UNITED STATES
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): September 15, 2023

 

 

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 Number)	(IRS Employer Identification No.)
3741 S.W. 7th Street
Ocala, Florida				34474
(Address of Principal Executive Offices)				(Zip Code)

 

Registrant’s 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:

Securities registered pursuant to Section 12(b) of the Act:

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
N/A		N/A		N/A

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

 

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Item 2.02 Results of Operations and Financial Condition.

On June 6, 2023, Nobility Homes, Inc. issued a press release regarding sales and earnings for its second quarter ended May 6, 2023.

Item 9.01 Financial Statements and Exhibits.

Exhibit Number		Description
99.1		Press Release dated September 15, 2023
104		Cover Page Interactive Data File (embedded within the Inline XBRL document)

 

 

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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
Date:	September 15, 2023	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 SALES AND EARNINGS FOR ITS THIRD QUARTER 2023

Ocala, FL…September 15, 2023 - Today Nobility Homes, Inc. (OTCQX: NOBH) announced sales and earnings for its third quarter ended August 5, 2023.

Sales for the third quarter of 2023 increased 6% to $14.7 million as compared to $13.8 million recorded in the third quarter of 2022. Income from operations for the third quarter of 2023 increased 39% to $3.1 million versus $2.2 million in the same period a year ago. Net income after taxes increased 41% to $2.7 million as compared to $1.9 million for the same period last year. Diluted earnings for the third quarter of 2023 were $0.80 per share compared to $0.56 per share last year.

For the first nine months of fiscal 2023, sales increased 38% to $48.6 million as compared to $35.3 million in the third quarter of 2022. Income from operations for the third quarter of 2023 increased 106% to $10.7 million versus $5.2 million in the same period last year. Net income after taxes increased 91% to $8.6 million versus last year’s results of $4.5 million. Diluted earnings were $2.56 per share compared to $1.30 per share last year.

Nobility’s financial position for the first nine months 2023 remains strong with cash and cash equivalents, certificates of deposit and short-term investments of $20.9 million and no outstanding debt. Working capital is $35.5 million and our ratio of current assets to current liabilities is 3.8:1. Stockholders’ equity is $50.4 million and the book value per share of common stock of $15.41

Terry Trexler, President, stated, “The primary reason that sales and net income increased in fiscal 2023 over fiscal 2022 was due to the severe supply chain challenges experienced during in the first nine months of fiscal 2022 that impacted our ability to complete and deliver homes to customers. During the first nine months of fiscal 2023, the supply chain challenges eased compared to the prior period and we were able to complete and deliver more retail customers’ homes, which included us selling forty-eight ($8.2 million) new homes during the first nine months of 2023 from other manufacturers, to help reduce our long backlog. Although net sales increased during fiscal 2023, as compared to last year, we continue to experience limitations being placed on certain key production materials from suppliers, the delay or lack of key components from vendors as well as back orders, delayed shipments, price increases and labor shortages. These issues continue to cause delays in the completion of the homes at the Company’s manufacturing facility and the set-up process of retail homes in the field, resulting in decreased net sales due to our inability to timely deliver and set up homes to customers. We expect that these challenges will continue throughout 2023 and potentially beyond. The Company also continues to experience inflation in some building products resulting in increases to our material and labor costs which may increase the wholesale and retail selling prices of our homes. Additionally, potential customers may delay or defer purchasing decisions when considering the rising interest rate environment.

The current demand for affordable manufactured housing in Florida and the U.S. is slowing, which we believe is because of the increased interest rate environment driven by the Federal Reserve. According to the Florida Manufactured Housing Association, shipments for the industry in Florida for the period from November 2022 through July 2023 declined by approximately 15% from the same period last year.

Maintaining our strong financial position is vital for future growth and success. 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, 2023, the Company celebrated its 56th anniversary in business specializing in the design and production of quality, affordable manufactured and modular homes. With multiple retail sales centers in Florida for over 33 years 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

 

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Certain statements in this report are unaudited or forward-looking statements within the meaning of the federal securities laws. Although Nobility believes that the amounts and 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, the potential adverse impact on our business caused by competitive pricing pressures at both the wholesale and retail levels, inflation, increasing material costs (including forest based products) or availability of materials due to supply chain interruptions (such as current inflation with forest products and supply issues with vinyl siding and PVC piping), changes in market demand, increase 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 attacks or other events such as a pandemic, any armed conflict involving the United States and the impact of inflation..

 

 

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NOBILITY HOMES, INC.

Condensed Consolidated Balance Sheets

 

		August 5,				November 5,
		2023				2022
		(Unaudited)
Assets
Current assets:
Cash and cash equivalents		$	12,973,685			$	16,653,449
Certificates of deposit			7,347,913				3,903,888
Short-term investments			541,132				589,071
Accounts receivable - trade			2,596,300				1,288,645
Note receivable			—				23,905
Mortgage notes receivable			4,411				16,191
Income tax receivable			157,827				—
Inventories			22,743,349				23,457,493
Prepaid expenses and other current assets			1,820,579				2,172,675
Total current assets			48,185,196				48,105,317
Property, plant and equipment, net			8,307,867				7,915,695
Note receivable, less current portion			—				16,599
Mortgage notes receivable, less current portion			142,969				131,514
Other investments			1,925,169				1,848,893
Property held for resale			26,590				—
Deferred income taxes			38,159				43,778
Cash surrender value of life insurance			4,275,110				4,143,035
Other assets			156,287				156,287
Total assets		$	63,057,347			$	62,361,118
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable		$	1,144,548			$	1,119,188
Accrued compensation			982,112				1,132,423
Accrued expenses and other current liabilities			1,410,429				1,742,696
Income taxes payable			—				229,200
Customer deposits			9,146,699				10,214,078
Total current liabilities			12,683,788				14,437,585
Commitments and contingencies
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; 3,269075 and 3,370,912 shares outstanding, respectively			536,491				536,491
Additional paid in capital			10,938,966				10,849,687
Retained earnings			68,653,044				63,441,812
Less treasury stock at cost, 2,095,832 and 1,993,995 shares, respectively			(29,754,942	)			(26,904,457	)
Total stockholders' equity			50,373,559				47,923,533
Total liabilities and stockholders' equity		$	63,057,347			$	62,361,118

 

 

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NOBILITY HOMES, INC.

Condensed Consolidated Statements of Income

(Unaudited)

 

		Three Months Ended								Nine Months Ended
		August 5,				August 6,				August 5,				August 6,
		2023				2022				2023				2022
Net sales		$	14,654,789			$	13,846,698			$	48,599,139			$	35,300,014
Cost of sales			(9,540,399	)			(9,948,638	)			(31,659,842	)			(25,651,808	)
Gross profit			5,114,390				3,898,060				16,939,297				9,648,206
Selling, general and administrative expenses			(1,987,782	)			(1,653,200	)			(6,238,457	)			(4,448,349	)
Operating income			3,126,608				2,244,860				10,700,840				5,199,857
Other income (loss):
Interest income			203,972				62,449				513,987				176,706
Undistributed earnings in joint venture - Majestic 21			27,828				15,488				76,276				40,710
Proceeds received under escrow arrangement			115,641				52,140				209,806				285,639
Increase (decrease) in fair value of equity investment			81,078				(57,022	)			(47,939	)			(80,796	)
Gain on disposal of property, plant and equipment			—				—				—				88,936
Miscellaneous			16,404				161,157				42,766				187,065
Total other income			444,923				234,212				794,896				698,260
Income before provision for income taxes			3,571,531				2,479,072				11,495,736				5,898,117
Income tax expense			(905,203	)			(594,313	)			(2,913,592	)			(1,399,498	)
Net income		$	2,666,328			$	1,884,759			$	8,582,144			$	4,498,619
Weighted average number of shares outstanding:
Basic			3,323,874				3,370,912				3,354,981				3,460,074
Diluted			3,328,875				3,376,771				3,357,424				3,469,769
Net income per share:
Basic		$	0.80			$	0.56			$	2.56			$	1.30
Diluted		$	0.80			$	0.56			$	2.56			$	1.30

 

 

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v3.23.2

Document And Entity Information	Sep. 15, 2023
Cover [Abstract]
Document Type	8-K
Amendment Flag	false
Document Period End Date	Sep. 15, 2023
Entity Registrant Name	Nobility Homes, Inc
Entity Central Index Key	0000072205
Entity Emerging Growth Company	false
Securities Act File Number	000-06506
Entity Incorporation, State or Country Code	FL
Entity Tax Identification Number	59-1166102
Entity Address, Address Line One	3741 S.W. 7th Street
Entity Address, City or Town	Ocala
Entity Address, State or Province	FL
Entity Address, Postal Zip Code	34474
City Area Code	352
Local Phone Number	732-5157
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) Security	N/A
No Trading Symbol Flag	true
Security Exchange Name	NONE

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