Nobility Homes, Inc. Announces Sales And Earnings For Its Second Quarter 2018

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

Ocala, FL…June 15, 2018 - Today Nobility Homes, Inc. (OTCQX: NOBH) announced sales and earnings for its second quarter ended May 5, 2018. Sales for the second quarter of 2018 were $8,922,264 as compared to $10,046,071 recorded in the second quarter of 2017. Income from operations for the second quarter of 2018 was $1,191,947 versus $1,276,598 in the same period a year ago. Net income after taxes was $1,135,605 as compared to $1,107,509 for the same period last year. Diluted earnings per share for the second quarter of 2018 were $0.29 per share compared to $0.28 per share last year.

For the first six months o f fiscal 2018, sales were $18,568,082 as compared to $18,619,471 for the first six months of 2017. Income from operations was $2,282,104 versus $2,333,075 last year. Net income after taxes was $2,151,841 compared to $1,810,832 last year. Diluted earnings per share were $0.54 per share compared to $0.45 per share last year.

Nobility’s financial position for the first six months of 2018 remains very strong with cash and cash equivalents and short term investments of $30,302,099 and no outstanding debt. Working capital is $35,299,274 and our ratio of current assets to current liabilities is 6.1:1. Stockholders’ equity is $46,237,897 and the book value per share of common stock outstanding increased to $11.94.

Terry Trexler, President, stated, “The demand for affordable manufactured housing in Florida and the U.S. continues to improve. According to the Florida Manufactured Housing Association, shipments in Florida for the period from November 2017 through April 2018 were up approximately 11.7% from the same period last year. Our sales for fiscal 2018 continue to look positive. 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, recent legislating may help improve this situation in the future.

We understand that 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, 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, 2018 the Company celebrated its 51st anniversary in business specializing in the design and production of quality, affordable manufactured homes. With multiple retail sales centers, an insurance agency subsidiary, and an investment in a retirement manufactured home community, 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

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, 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, 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 5,

November 4,

(Unaudited)

Assets

Current assets:

Cash and cash equivalents

29,737,699

27,910,504

Short-term investments

564,400

627,087

Accounts receivable - trade

1,782,248

2,934,300

Note receivable

500,000

Mortgage notes receivable

14,399

13,495

Income tax receivable

Inventories

7,889,404

7,505,681

Pre-owned homes, net

859,843

1,141,863

Prepaid expenses and other current assets

1,408,142

820,224

Deferred income taxes

609,629

Total current assets

42,256,135

42,062,783

Property, plant and equipment, net

4,714,517

4,304,771

691,295

815,358

Interest receivable

101,301

Note receivable, less current portion

109,935

1,134,086

Mortgage notes receivable, less current portion

238,393

240,297

Other investments

1,521,344

1,471,029

Property held for sale

213,437

599,455

Cash surrender value of life insurance

3,352,849

3,262,848

Other assets

156,287

Total assets

53,254,192

54,148,215

Liabilities and Stockholders’ Equity

Current liabilities:

Accounts payable

963,763

849,782

Accrued compensation

636,539

624,989

Accrued expenses and other current liabilities

1,163,357

1,127,397

Income taxes payable

448,379

260,416

Customer deposits

3,744,823

2,796,827

Total current liabilities

6,956,861

5,659,411

59,434

1,074,507

Total liabilities

7,016,295

6,733,918

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;

3,874,069 and 3,997,569 outstanding, respectively

536,491

Additional paid in capital

10,670,113

10,669,231

Retained earnings

47,540,755

46,167,528

Accumulated other comprehensive income

366,724

412,233

Less treasury stock at cost, 1,490,838 shares in 2018 and

1,367,338 shares in 2017

(12,876,186

(10,371,186

Total stockholders’ equity

47,414,297

Total liabilities and stockholders’ equity

Consolidated Statements of Income and Comprehensive Income

Unaudited

Three Months Ended\

Six Months Ended

May 6,

Net sales

Cost of goods sold

(6,610,958

(7,647,187

(14,039,837

(14,196,523

Gross profit

2,311,306

2,398,884

4,528,245

4,422,948

Selling, general and administrative expenses

(1,119,359

(1,122,286

(2,246,141

(2,089,873

Operating income

Other income:

Interest income

81,446

31,357

117,383

71,804

Undistributed earnings in joint venture - Majestic 21

27,266

28,123

50,315

56,721

Proceeds received under escrow arrangement

55,640

225,956

Gain on property held for resale

203,512

Miscellaneous

12,584

14,662

Total other income

374,714

295,327

439,434

369,143

Income before provision for income taxes

1,566,661

1,571,925

2,721,538

2,702,218

Income tax expense

(431,056

(464,416

(569,697

(891,386

Other comprehensive income (loss)

Unrealized investment gain (loss), net of tax effect

(67,857

13,457

(45,510

128,624

Comprehensive income

1,067,748

1,120,966

2,106,331

1,939,456

Weighted average number of shares outstanding:

3,903,904

4,004,840

3,950,638

4,004,539

3,906,077

4,006,047

3,952,650

4,005,793

Net income per share:

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

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