NOBH Nobility Homes, Inc. (MM)

OCALA, Fla., March 12 /PRNewswire-FirstCall/ -- Today Nobility Homes, Inc. (NASDAQ:NOBH) announced sales and earnings results for its first quarter ended January 31, 2009. Sales for the first quarter of 2009 were $3,561,482 as compared to $8,168,552 recorded in first quarter of 2008. Loss from operations for the first quarter of 2009 was $519,823 versus income of $524,775 in the same period a year ago. Net loss after taxes was $123,148 as compared to income of $620,985 for the same period last year. The net loss after taxes of $123,148 for the first quarter of 2009 came after deducting $66,911 in non-cash losses for our investment in two retirement community limited partnerships. Loss for the first quarter of 2009 was ($0.03) per share compared to diluted earnings of $0.15 per share last year. Nobility's financial position during fiscal year 2009 remains very strong with cash and cash equivalents, short and long-term investments of $12,306,660 and no outstanding debt. Working capital is $20,084,846 and our ratio of current assets to current liabilities is 19.3:1. Stockholders' equity is $42,131,548 and the book value per share of common stock is $10.35. The Company repurchased in the open market 17,133 shares of its common stock during first quarter 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. The Board of Directors declared an annual cash dividend of $0.25 per common share for fiscal year 2008. The cash dividend was paid January 12, 2009 to stockholders of record as of January 2, 2009. Terry Trexler, President stated, "Sales and operations for the first 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 January 2009 were down approximately 52% from the same period last year. Fiscal year 2009 is Nobility's 42nd year of operating in our market area and may prove 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 condition 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 one under-performing retail model center in the panhandle of Florida and will temporarily close our Belleview, Florida, manufacturing plant. The Company will consolidate the Belleview product line into the Ocala manufacturing plant and continue to offer a full price range of homes to our customers. Management will continue to evaluate Prestige's other sixteen 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 good 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 plan to continue out-performing 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 two plants located in central Florida. With sixteen 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 THURSDAY, March 12, 2009 AT ll:00 AM EASTERN TIME. TO PARTICIPATE, PLEASE DIAL 800-723-6575. THE PASSCODE FOR THE CALL IS 1296344. YOU MAY ALSO ACCESS THE CALL AT http://www.nobilityhomes.com/ OR http://www.videonewswire.com/event.asp?id=56902 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 Statements of Income and Comprehensive Income Unaudited Three Months Ended January 31, February 2, 2009 2008 Net sales $3,561,482 $8,168,552 Cost of goods sold (2,739,305) (5,952,355) Gross profit 822,177 2,216,197 Selling, general and administrative expenses (1,342,000) (1,691,422) Operating income (loss) (519,823) 524,775 Other income: Interest income 123,781 172,261 Undistributed earnings in joint venture - Majestic 21 45,300 84,120 Earnings from finance revenue sharing agreement 157,700 150,200 Undistributed losses from investments in retirement community limited partnership (66,911) - Miscellaneous 14 (3,747) Total other income 259,884 402,834 Income (loss) before provision for income taxes (259,939) 927,609 Provision for income taxes 136,791 (306,624) Net income (loss) (123,148) 620,985 Other comprehensive income (loss), net of tax: Unrealized investment gain (loss) (14,863) (41,195) Comprehensive income (loss) $(138,011) $579,790 Weighted average number of shares outstanding Basic 4,078,820 4,086,897 Diluted 4,078,833 4,092,431 Earnings per share Basic $(0.03) $0.15 Diluted $(0.03) $0.15 Cash dividends paid per common share $0.25 $0.50 NOBILITY HOMES, INC. Consolidated Balance Sheets Unaudited January 31, November 1, 2009 2008 Assets Current Assets: Cash and cash equivalents $4,042,252 $8,649,724 Short-term investments 144,380 168,210 Accounts receivable 476,746 654,529 Inventories 14,801,313 12,051,361 Prepaid income taxes 648,379 438,398 Prepaid expenses and other current assets 811,363 433,166 Deferred income taxes 257,032 298,408 Total current assets 21,181,465 22,693,796 Property, plant and equipment, net 4,320,113 4,342,401 Long-term investments 8,120,028 8,140,226 Other investments 7,117,165 7,222,276 Deferred income taxes 351,577 334,424 Other assets 2,412,819 2,397,939 Total assets $43,503,167 $45,131,062 Liabilities and stockholders' equity Current liabilities: Accounts payable $163,619 $186,477 Accrued compensation 112,147 201,155 Accrued expenses and other current liabilities 278,763 355,218 Customer deposits 542,090 717,951 Total current liabilities 1,096,619 1,460,801 Uncertain tax liabilities 275,000 275,000 Total liabilities 1,371,619 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 10,219,729 10,178,398 Retained earnings 40,826,606 41,968,423 Accumulated other comprehensive income (14,688) 175 Less treasury stock at cost, 1,293,506 and 1,276,373 shares, respectively, in 2009 and 2008 (9,436,590) (9,288,226) Total stockholders' equity 42,131,548 43,395,261 Total liabilities and stockholders' equity $43,503,167 $45,131,062 DATASOURCE: Nobility Homes, Inc. CONTACT: Terry Trexler, CEO of Nobility Homes, Inc., +1-352-732-5157 Web Site: http://www.nobilityhomes.com/

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