The following excerpt is from the company's SEC filing.
Ocala, FL June 10, 2019 - Today Nobility Homes, Inc. (OTCQX: NOBH) announced sales and earnings for its second quarter ended May 4, 2019. Sales for the second quarter of 2019 were up 43% to $12,742,688 as compared to $8,922,264 recorded in the second quarter of 2018. Income from operations for the second quarter of 2019 was up 79% to $2,135,726 versus $1,191,947 in the same period a year ago. Net income after taxes was up 60% to $1,819,725 as compared to $1,135,605 for the same period last year. Diluted earnings per share for the second quarter of 2019 were $0.47 per share compared to $0.29 per share last year.
For the first six months of fiscal 2019, sales were up 28% to $23,782,462 as compared to $18,568,082 for the first six months of 2018. Income from operations was up 71% to $3,907,557 versus $2,282,104 last year. Net income after taxes was up 56% to $3,355,531 compared to $2,151,841 last year. Diluted earnings per share were $0.87 per share compared to $0.54 per share last year.
Nobilitys financial position for the first six months of 2019 remains very strong with cash and cash equivalents, certificates of deposit and short term investments of $31,723,668 and no outstanding debt. Working capital is $37,245,662 and our ratio of current assets to current liabilities is 6.1:1. Stockholders equity is $48,322,892 and the book value per share of common stock outstanding increased to $12.52.
Terry Trexler, President, stated, The demand for affordable manufactured housing in Florida continues to be strong. According to the Florida Manufactured Housing Association, shipments in Florida for the period from November 2018 through April 2019 were up approximately 26% from the same period last year. 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, legislation may help improve this situation in the future.
Maintaining our strong financial position is vital for future growth and success. Because of very challenging business conditions during economic recessions 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, 2019 the Company celebrated its 52nd 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 @
EXT 221 OR
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, 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, managements 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.
Condensed Consolidated Balance Sheets
Cash and cash equivalents
Certificates of Deposit
Accounts receivable - trade
Mortgage notes receivable
Prepaid expenses and other current assets
Total current assets
Property, plant and equipment, net
Note receivable, less current portion
Mortgage notes receivable, less current portion
Property held for sale
Deferred income taxes
Cash surrender value of life insurance
Liabilities and Stockholders Equity
Accrued expenses and other current liabilities
Income taxes payable
Total current liabilities
Commitments and contingent liabilities
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; 3,860,513 outstanding
Additional paid in capital
Accumulated other comprehensive income
Less treasury stock at cost, 1,504,394 shares in 2019 and 1,491,176 shares in 2018
Total stockholders equity
Total liabilities and stockholders equity
Condensed Consolidated Statements of Income and Comprehensive Income
Three Months Ended
Six Months Ended
Cost of goods sold
Selling, general and administrative expenses
Undistributed earnings in joint venture - Majestic 21
Proceeds received under escrow arrangement
Gain on property held for resale
Total other income
Income before provision for income taxes
Income tax expense
Other comprehensive income (loss)
Unrealized investment gain (loss), net of tax effect
Weighted average number of shares outstanding:
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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