OCALA, Fla., Sept. 14 /PRNewswire-FirstCall/ -- Today Nobility
Homes, Inc. (Nasdaq: NOBH) announced sales and earnings results for
its third quarter ended July 31,
2010. Sales for the third quarter of 2010 were up 41%
to $4,351,040 as compared to
$3,082,551 recorded in third quarter
of 2009. Income from operations for the third quarter of 2010
was $27,229 versus loss of
$299,019 in the same period a year
ago. Net loss after taxes was $132,546 as compared to income of $21,862 for the same period last year. The
net loss after taxes of $132,546 for
the third quarter of 2010 came after deducting $352,995 in non-cash losses for our investment in
two retirement community limited partnerships and included a tax
benefit of $102,133. Loss for
the third quarter of 2010 was ($0.03)
per share compared to income of $.01
per diluted share last year.
For the first nine months of fiscal 2010, sales were up 26% to
$11,352,443 as compared to sales of
$9,032,850 in the first nine months
of 2009. Loss from operations for the first nine months of
2010 was $621,292 versus loss of
$1,703,084 in the first nine months
of 2009. Net loss after taxes was $671,920 compared to loss of $607,726 for the same nine month period last
year. The net loss after taxes of $671,920 for the first nine months of 2010 came
after deducting $803,044 in non-cash
losses for our investment in two retirement community limited
partnerships. Loss for the first nine months of 2010 was
($0.17) per share compared to loss of
($0.15) per share last year.
Nobility's financial position during third quarter of 2010
remains strong with cash and cash equivalents, short and long-term
investments of $10,460,210 and no
outstanding debt. Working capital is $25,360,430 and our ratio of current assets to
current liabilities is 21.6:1. Stockholders' equity is
$40,751,380 and the book value per
share of common stock is $10.05.
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 third quarter of 2010, were adversely
impacted by our country's severe economic uncertainty and the low
manufactured housing shipments in Florida, plus the overall weakness in
Florida and the nation's housing
market. Industry shipments in Florida for the period November 2009 through July
2010 were up approximately 18% from the same period last
year. 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
our country, our industry, and the Company faced.
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
will continue to evaluate Prestige's fourteen retail model centers
in Florida, along with all
expenses within the Company and react in a manner consistent with
maintaining our financial position.
Although the overall housing picture, financial market and
economy have not improved significantly during the past nine months
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 financial
operating leverage inherent in the Company, we expect to
out-perform the industry. For the remainder of fiscal 2010, 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 our
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 growth
area for Florida in the
future."
Nobility Homes, Inc. has specialized for 44 years in the design
and production of quality, affordable manufactured homes at its
plant located in central Florida.
With fourteen 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 NOT HOLD A CONFERENCE CALL. IF YOU HAVE
ANY QUESTIONS, PLEASE CONTACT TERRY OR TOM TREXLER @ 800-476-6624
EXT 221 OR TERRY@NOBILITYHOMES.COM OR TOM@NOBILITYHOMES.COM
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.
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Consolidated Balance
Sheets
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(Unaudited)
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July 31,
2010
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October 31,
2009
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Assets
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Current assets:
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Cash and cash
equivalents
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$
5,743,495
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$
3,995,167
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Short-term
investments
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2,483,643
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3,855,905
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Accounts
receivable
|
|
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1,307,255
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|
963,032
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Inventories
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16,224,852
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15,679,969
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Income tax
receivable
|
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202,688
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976,130
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Prepaid expenses and other
current assets
|
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385,277
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362,161
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Deferred income
taxes
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242,141
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279,818
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Total current
assets
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26,589,351
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26,112,182
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Property, plant and equipment,
net
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3,982,289
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4,138,336
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Long-term
investments
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2,233,072
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2,252,419
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Other investments
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5,782,901
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6,599,846
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Deferred income
taxes
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950,255
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572,099
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Other assets
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2,442,433
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2,397,793
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Total
assets
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$
41,980,301
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$
42,072,675
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Liabilities and Stockholders'
Equity
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Current
liabilities:
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Accounts payable
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$
99,077
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$
91,636
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Accrued
compensation
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26,407
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62,610
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Accrued expenses and other
current liabilities
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186,866
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240,539
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Customer deposits
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916,571
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410,578
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Total current
liabilities
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1,228,921
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805,363
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Commitments and contingent
liabilities
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Stockholders'
equity:
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Preferred stock,
$.10 par value, 500,000 shares
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authorized; none issued and outstanding
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-
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-
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Common stock, $.10
par value, 10,000,000
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shares authorized; 5,364,907 shares issued
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536,491
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536,491
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Additional paid in
capital
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10,444,982
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10,331,168
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Retained
earnings
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39,225,991
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39,897,911
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Accumulated other
comprehensive income (loss)
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95,609
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53,435
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Less treasury
stock at cost, 1,308,763 in 2010
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and 2009
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(9,551,693)
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(9,551,693)
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Total
stockholders' equity
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40,751,380
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41,267,312
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Total liabilities
and stockholders' equity
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$
41,980,301
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$
42,072,675
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NOBILITY HOMES,
INC.
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Consolidated Statements of
Operations and Comprehensive Loss
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(Unaudited)
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Three Months
Ended
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Nine Months Ended
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July 31,
2010
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August 1,
2009
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July 31,
2010
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August 1,
2009
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Net sales
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$
4,351,040
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$
3,082,551
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$
11,352,443
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$
9,032,850
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Cost of goods
sold
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(3,417,870)
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(2,396,635)
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(9,024,837)
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(7,121,675)
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Gross profit
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933,170
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685,916
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2,327,606
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1,911,175
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Selling, general and
administrative expenses
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(905,941)
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(984,935)
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(2,948,898)
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(3,614,259)
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Operating Income
(loss)
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27,229
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(299,019)
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(621,292)
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(1,703,084)
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Other income
(loss):
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Interest income
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65,566
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64,380
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194,911
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279,218
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Equity in earnings in joint
venture - Majestic 21
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3,695
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45,426
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15,099
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137,159
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Earnings from finance revenue
sharing agreement
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-
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-
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-
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157,700
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Equity in losses from
investments in retirement
community limited
partnership
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(352,995)
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(85,306)
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(803,044)
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(273,343)
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Miscellaneous
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21,826
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17,521
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45,844
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31,206
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Total other income
(loss)
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(261,908)
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42,021
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(547,190)
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331,940
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Loss before provision for income
taxes
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(234,679)
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(256,998)
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(1,168,482)
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(1,371,144)
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Income tax
benefit
|
|
|
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102,133
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278,860
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496,562
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763,418
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Net income (loss)
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(132,546)
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|
21,862
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(671,920)
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(607,726)
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Other comprehensive income
(loss), net of tax:
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Unrealized investment gain
(loss)
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(5,280)
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58,716
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42,175
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52,351
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Comprehensive income
(loss)
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$
(137,826)
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$
80,578
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$
(629,745)
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$
(555,375)
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Weighed average number of shares
outstanding:
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Basic
|
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4,056,144
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4,056,144
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4,056,144
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4,066,886
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Diluted
|
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4,056,144
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4,057,917
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|
4,056,144
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4,066,886
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Income (loss) per
share:
|
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Basic
|
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|
$
(0.03)
|
|
$
0.01
|
|
$
(0.17)
|
|
$
(0.15)
|
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Diluted
|
|
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|
$
(0.03)
|
|
$
0.01
|
|
$
(0.17)
|
|
$
(0.15)
|
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|
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Cash dividends paid per common
share
|
$
-
|
|
$
-
|
|
$
-
|
|
$
0.25
|
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SOURCE Nobility Homes, Inc.
Copyright . 14 PR Newswire