OCALA, Fla., June 19 /PRNewswire-FirstCall/ -- Today Nobility
Homes, Inc. (NASDAQ:NOBH) announced sales and earnings results for
its second quarter ended May 2, 2009. Sales for the second quarter
of 2009 were $2,388,817 as compared to $8,700,899 recorded in
second quarter of 2008. Loss from operations for the second quarter
of 2009 was $884,242 versus income of $748,463 in the same period a
year ago. The loss in the second quarter was increased by the
closing of the retail sales center, the write-off of the goodwill
and leasehold improvements plus the expenses associated with the
temporary closing of the Belleview manufacturing facility. Net loss
after taxes was $506,440 as compared to income of $587,738 for the
same period last year. The net loss after taxes of $506,440 for the
second quarter of 2009 came after deducting $121,126 in non-cash
losses for our investment in two retirement community limited
partnerships. Loss for the second quarter of 2009 was ($0.12) per
share compared to diluted earnings of $0.14 per share last year.
For the first six months of fiscal 2009, sales were $5,950,299 as
compared to sales of $16,869,451 in the first six months of 2008.
Loss from operations for the first six months of 2009 was
$1,404,065 versus income of $1,273,238 in the first six months of
2008. Net loss after taxes was $629,588 compared to income of
$1,208,723 for the same six month period last year. The net loss
after taxes of $629,588 for the first six months of 2009 came after
deducting $188,037 in non-cash losses for our investment in two
retirement community limited partnerships. Loss for the first six
months of 2009 was ($0.15) per share compared to diluted earnings
of $0.30 per share last year. Nobility's financial position during
fiscal year 2009 remains strong with cash and cash equivalents,
short and long-term investments of $11,340,018 and no outstanding
debt. Working capital is $20,002,913 and our ratio of current
assets to current liabilities is 31.4:1. Stockholders' equity is
$41,553,556 and the book value per share of common stock is $10.24.
The Company repurchased in the open market 32,390 shares of its
common stock during first six months of 2009. The Company's Board
of Directors has authorized the purchase of up to 200,000 shares of
the Company's stock in the open market. Terry Trexler, President
stated, "Sales and operations for the second quarter of 2009, were
adversely impacted by our country's severe economic uncertainty and
the reduced manufactured housing shipments in Florida, plus the
overall decline in Florida and the nation's housing market.
Industry shipments in Florida for the period of November 2008
through April 2009 were down approximately 61% from the same period
last year. Fiscal year 2009 is Nobility's 42nd year of operating in
our market area and is proving to be our most challenging. Lack of
retail and wholesale financing, increasing unemployment and home
foreclosures, slow sales of existing site-built homes, very low
consumer confidence and a poor economic outlook for the U.S.
economy are just a few of the challenges facing our country, our
industry, and Nobility. "Management understands that during these
very challenging economic times, maintaining the Company's strong
financial position is vital for future growth and success. Because
of deteriorating business conditions and the lack of any clarity
that today's economic challenges will improve significantly, the
Company has closed the second under-performing retail model center
in Florida and has temporarily closed our Belleview, Florida
manufacturing plant. The Company has consolidated the Belleview
product line into the Ocala manufacturing plant and continues to
offer a full price range of homes to our customers. Management will
continue to evaluate Prestige's other fifteen retail model centers
in Florida, along with all expenses within the Company and react in
a manner consistent with maintaining our strong balance sheet.
"Although the overall housing picture, financial market and economy
have declined significantly this past year and the immediate
outlook for the manufactured housing industry in Florida and the
nation is uncertain, the long-term demographic trends still favor
future growth in the Florida market area we serve. Job formation,
immigration growth and migration trends, plus consumers returning
to more affordable housing should favor Florida. Management remains
convinced that our specific geographic market is one of the best
long-term growth areas in the country and, because of the strong
operating leverage inherent in the Company, we expect to
out-perform the industry. For the remainder of fiscal 2009, the
country must experience a better economy with less uncertainty,
improved sales in the existing home market, declining unemployment,
continued low interest rates, improving credit markets, increased
consumer confidence and more retail financing for the demand of
Nobility's affordable homes to improve. "The Company invested as a
limited partner in two new Florida retirement manufactured home
communities in fiscal year 2008. Although these investments will
report non-cash losses in the initial fill-up stage, management
believes that the new attractive and affordable manufactured home
communities for senior citizens will be a significant growth area
for Florida in the future." Nobility Homes, Inc. has specialized
for 42 years in the design and production of quality, affordable
manufactured homes at its one plant located in central Florida.
With fifteen Company retail sales centers, a finance company joint
venture, an insurance subsidiary, and an investment in two new
affordable retirement manufactured home communities, Nobility is
the only vertically integrated manufactured home company
headquartered in Florida. MANAGEMENT WILL HOLD A CONFERENCE CALL ON
FRIDAY, JUNE 19, 2009 AT 4:30 PM EASTERN TIME. TO PARTICIPATE,
PLEASE DIAL 877-874-1569. THE PASSCODE FOR THE CALL IS 9223324. YOU
MAY ALSO ACCESS THE CALL AT http://www.nobilityhomes.com/ OR
http://www.videonewswire.com/event.asp?id=59825 Certain statements
in this report are forward-looking statements within the meaning of
the federal securities laws, including our statement that working
capital requirements will be met with internal sources. 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
(Unaudited) May 2, November 1, 2009 2008 Assets Current assets:
Cash and cash equivalents $3,387,184 $8,649,724 Short-term
investments 158,005 168,210 Accounts receivable 440,648 654,529
Inventories 15,047,854 12,051,361 Prepaid income taxes 901,731
438,398 Prepaid expenses and other current assets 465,782 433,166
Deferred income taxes 259,804 298,408 ---------- ---------- Total
current assets 20,661,008 22,693,796 ---------- ----------
Property, plant and equipment, net 4,223,920 4,342,401 Long-term
investments 7,794,829 8,140,226 Other investments 7,002,472
7,222,276 Deferred income taxes 436,389 334,424 Other assets
2,368,033 2,397,939 ----------- ----------- Total assets
$42,486,651 $45,131,062 =========== =========== Liabilities and
Stockholders' Equity Current liabilities: Accounts payable $41,530
$186,477 Accrued compensation 73,659 201,155 Accrued expenses and
other current liabilities 282,581 355,218 Customer deposits 260,325
717,951 ------- ------- Total current liabilities 658,095 1,460,801
------- --------- Uncertain tax liabilities 275,000 275,000 -------
------- Total liabilities 933,095 1,735,801 ------- ---------
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 10,254,782 10,178,398 Retained earnings
40,320,166 41,968,423 Accumulated other comprehensive income
(6,190) 175 Less treasury stock at cost, 1,308,763 and 1,276,373
shares, respectively, in 2009 and 2008 (9,551,693) (9,288,226)
---------- ---------- Total stockholders' equity 41,553,556
43,395,261 ---------- ---------- Total liabilities and
stockholders' equity $42,486,651 $45,131,062 NOBILITY HOMES, INC.
Consolidated Statements of Operations and Comprehensive Income
(Loss) (Unaudited) Three Months Ended Six Months Ended
------------------ ---------------- May 2, May 3, May 2, May 3,
2009 2008 2009 2008 Net sales $2,388,817 $8,700,899 $5,950,299
$16,869,451 Cost of goods sold (1,985,735) (6,241,140) (4,725,040)
(12,193,495) ---------- ---------- ---------- ----------- Gross
profit 403,082 2,459,759 1,225,259 4,675,956 Selling, general and
administrative expenses (1,287,324) (1,711,296) (2,629,324)
(3,402,718) ---------- ---------- ---------- ---------- Operating
income (loss) (884,242) 748,463 (1,404,065) 1,273,238 --------
------- ---------- --------- Other income (expense): Interest
income 91,043 98,669 214,838 270,930 Undistributed earnings in
joint venture - Majestic 21 46,433 84,575 91,733 168,695 Earnings
from finance revenue sharing agreement - 194,900 157,700 345,100
Undistributed losses from investments in retirement community
limited partnership (121,126) (178,842) (188,037) (178,842)
Miscellaneous 13,685 7,989 13,685 4,242 ------ ----- ------ -----
Total other income 30,035 207,291 289,919 610,125 ------ -------
------- ------- Income (loss) before income tax benefit (expense)
(854,207) 955,754 (1,114,146) 1,883,363 Income tax benefit
(expense) 347,767 (368,016) 484,558 (674,640) ------- --------
------- -------- Net income (loss) (506,440) 587,738 (629,588)
1,208,723 Other comprehensive income (loss), net of tax: Unrealized
investment gain (loss) 8,498 (26,648) (6,365) (67,843) -----
------- ------ ------- Comprehensive income (loss) $(497,942)
$561,090 $(635,953) $1,140,880 ========= ======== =========
========== Weighed average number of shares outstanding Basic
4,065,708 4,087,789 4,072,228 4,087,343 Diluted 4,065,708 4,092,759
4,072,228 4,092,605 Earnings (loss) per share Basic $(0.12) $0.14
$(0.15) $0.30 Diluted $(0.12) $0.14 $(0.15) $0.30 Cash dividends
paid per common share $- $- $0.25 $0.50 DATASOURCE: Nobility Homes,
Inc. CONTACT: Terry Trexler, CEO of Nobility Homes, +1-352-732-5157
Web Site: http://www.nobilityhomes.com/
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