Nobility Homes, Inc. Announces Increase In Sales And Earnings For Its Second Quarter 2015

The following excerpt is from the company's SEC filing.

Ocala, FL… June 11, 2015—Today Nobility Homes, Inc. (OTCQX: NOBH) announced sales and earnings results for its second quarter ended May 2, 2015. Sales for second quarter 2015 were up 23% to $6,706,118 as compared to $5,431,026 recorded in second quarter 2014. Income from operations was $665,719 versus $305,628 last year. Net income after taxes was $685,553 as compared to $284,900 last year. The net income after taxes for second quarter 2015 included a $51,657 non-cash loss from our investment in one retirement community limited partnership. Diluted earnings per share were $.17 per share compared to $.07 per share la st year.

For the first six months of fiscal 2015, sales were up 28% to $12,282,918 as compared to $9,622,455 for the first six months of 2014. Income from operations was $1,085,539 versus $389,814 last year. Net income after taxes was $1,160,341 compared to $388,302 last year. The net income after taxes for the first six months of 2015 included a $57,350 non-cash loss from our investment in one retirement community limited partnership. Diluted earnings per share were $0.30 per share compared to $.10 per share last year.

Nobility’s financial position for the first six months of 2015 remains very strong with cash and cash equivalents and short term investments of $14,843,963 and no outstanding debt. Working capital is $23,399,712 and our ratio of current assets to current liabilities is 7.7:1. Stockholders’ equity is $37,572,700 and the book value per share of common stock increased to $9.27.

Terry Trexler, President, stated, “The demand for affordable manufactured housing in Florida and the U.S. is improving; however, our sales and earnings continue to be affected by the challenging housing environment, the uncertainty of the U.S. and world economy, employment levels, consumer confidence and, in particular, 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.

Our 48 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.

We understand that during this uncertain economic environment, 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 will continue to evaluate all expenses and react in a manner consistent with maintaining our strong financial position.”

The Company has specialized for 48 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 investments in retirement manufactured home communities, the Company is 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

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

November 1,

(Unaudited)

Assets

Current assets:

Cash and cash equivalents

14,376,563

14,116,412

Short-term investments

467,400

496,444

Accounts receivable - trade

2,480,662

2,141,468

Mortgage notes receivable, current

Income tax receivable

Inventories

6,075,256

5,516,540

Pre-owned homes, current

1,985,149

2,839,203

Prepaid expenses and other current assets

943,977

286,990

Deferred income taxes

560,445

508,633

Total current assets

26,898,515

25,918,780

Property, plant and equipment, net

3,931,056

3,957,071

2,879,577

1,711,000

Mortgage notes receivable, long term

179,248

180,800

Other investments

2,763,128

2,751,663

1,435,555

1,487,367

Other assets

2,984,424

2,921,424

Total assets

41,071,503

38,928,105

Liabilities and Stockholders’ Equity

Current liabilities:

Accounts payable

1,099,119

502,259

Accrued compensation

277,842

320,502

Accrued expenses and other current liabilities

790,651

526,296

Customer deposits

1,331,191

1,029,088

Total current liabilities

3,498,803

2,378,145

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

Additional paid in capital

10,648,579

10,643,866

Retained earnings

35,738,023

34,577,682

Accumulated other comprehensive income

252,546

281,590

Less treasury stock at cost, 1,310,538 shares in 2015 and 1,301,038 shares in 2014

(9,602,939

(9,489,669

Total stockholders’ equity

36,549,960

Total liabilities and stockholders’ equity

Consolidated Statements of Comprehensive Income

(Unaudited)

Three Months Ended

Six Months Ended

May 3,

Net sales

6,706,118

Cost of goods sold

(5,167,950

(4,326,728

(9,571,981

(7,772,627

Gross profit

1,538,168

1,104,298

2,710,937

1,849,828

Selling, general and administrative expenses

(872,449

(798,670

(1,625,398

(1,460,014

Operating income

Other income (loss):

Interest income

16,852

18,182

29,972

28,014

Undistributed earnings in joint venture - Majestic 21

35,237

39,477

68,815

71,808

Losses from investments in retirement community limited partnerships

(51,657

(95,286

(57,350

(134,687

Miscellaneous

23,696

16,899

38,866

33,353

Total other income (loss)

24,128

(20,728

80,303

(1,512

Income before provision for income taxes

689,847

1,165,842

Income tax expense

(4,294

(5,501

Other comprehensive income (loss)

Unrealized investment gain (loss)

41,941

(13,120

(29,044

Comprehensive income

727,494

271,780

1,131,297

393,125

Weighed average number of shares outstanding:

4,061,853

4,058,115

4,062,883

4,058,054

4,062,423

4,060,907

4,063,314

4,059,982

Net income per share:

The above information was disclosed in a filing to the SEC. To see this filing in its entirety, click here.

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