Nobility Homes, Inc. Announces Sales and Earnings for Its Fiscal Year 2014
December 19 2014 - 2:35PM
Today Nobility Homes, Inc. (OTC MKTS:NOBH) announced sales and
earnings results for its fiscal year ended November 1, 2014. Sales
for fiscal year 2014 were up 14% to $21,152,259 as compared to
$18,525,950 recorded in fiscal year 2013. Income from operations
for fiscal year 2014 was $1,311,030 versus $781,692 in the same
period a year ago. Net income after taxes was $1,257,898 as
compared to $747,106 for the same period last year. The net
income after taxes for fiscal year 2014 included a $321,531
non-cash loss from our investment in one retirement community
limited partnership. Diluted earnings per share for fiscal
year 2014 were $0.32 per share compared to $0.18 per share last
year.
For the fourth quarter of fiscal 2014, sales were $6,183,165 as
compared to sales of $6,552,208 in the fourth quarter of last
fiscal year. Income from operations for the fourth quarter of
2014 was $632,090 versus $682,501 in the same period last
year. Net income after taxes was $617,328 versus last year's
results of $667,781. The net income after taxes for fourth
quarter of 2014 included a $90,176 non-cash loss from our
investment in one retirement community limited
partnership. Diluted earnings per share for the fourth quarter
were $0.15 per share versus earnings of $0.16 per share last
year.
Nobility's financial position during fiscal year 2014 remains
very strong with cash and cash equivalents and short term
investments of $14,612,856 and no outstanding debt. Working
capital is $23,540,635 and our ratio of current assets to current
liabilities is 10.9:1. Stockholders' equity is $36,549,960 and the
book value per share of common stock increased to $8.99.
Terry Trexler, President, stated, "Our sales and operations
continue to be impacted by our country's economic conditions and
those in the state of Florida. Although the immediate outlook
for the manufactured housing industry in Florida and the nation is
improving, the long-term demographic trends still favor stronger
growth in the Florida market area we serve. Our 47 years of
experience in the Florida market and consumers' increased need for
more affordable housing should serve us 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. The country must experience a better economy with less
uncertainty, continued improved sales in the existing home market,
declining unemployment, increased consumer confidence and more
retail financing for the sales of our affordable homes, for the
Company to improve significantly.
We understand that during this uncertain economic environment,
maintaining our strong financial position is vital for future
growth and success. Because of the recent historically
poor business conditions in our market area, we will continue to
evaluate Prestige's retail model centers in Florida, along with all
other expenses and react in a manner consistent with maintaining
our strong financial position."
We have specialized for 47 years in the design and production of
quality, affordable manufactured homes at our plant located in
central Florida. With our multiple retail sales centers, an
insurance subsidiary, and investments in retirement manufactured
home communities, 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 OR 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, 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 |
|
|
|
|
November
1, |
November 2, |
|
2014 |
2013 |
|
(Unaudited) |
|
Assets |
|
|
Current
assets: |
|
|
Cash and cash
equivalents |
$ 14,116,412 |
$ 10,468,453 |
Short-term
investments |
496,444 |
455,232 |
Accounts receivable -
trade |
2,141,468 |
2,701,057 |
Mortgage notes
receivable, current |
7,126 |
4,549 |
Income tax
receivable |
5,964 |
-- |
Inventories |
5,516,540 |
5,043,816 |
Pre-owned homes,
current |
2,839,203 |
2,187,598 |
Prepaid expenses and
other current assets |
286,990 |
319,546 |
Deferred income
taxes |
508,633 |
656,461 |
Total
current assets |
25,918,780 |
21,836,712 |
|
|
|
Property, plant and equipment,
net |
3,957,071 |
3,731,463 |
Pre-owned homes |
1,711,000 |
4,316,397 |
Mortgage notes receivable, long
term |
180,800 |
183,753 |
Other investments |
2,751,663 |
2,938,273 |
Deferred income taxes |
1,487,367 |
1,339,539 |
Other assets |
2,921,424 |
2,804,484 |
Total
assets |
$ 38,928,105 |
$ 37,150,621 |
|
|
|
Liabilities and Stockholders'
Equity |
|
|
Current liabilities: |
|
|
Accounts
payable |
$ 502,259 |
$ 645,519 |
Accrued
compensation |
320,502 |
170,026 |
Accrued
expenses and other current liabilities |
526,296 |
614,368 |
Customer
deposits |
1,029,088 |
537,052 |
Total
current liabilities |
2,378,145 |
1,966,965 |
|
|
|
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 |
10,643,866 |
10,632,060 |
Retained
earnings |
34,577,682 |
33,319,784 |
Accumulated other
comprehensive income |
281,590 |
240,378 |
Less treasury stock at
cost, 1,301,038 shares in 2014 and 1,307,854 shares in
2013 |
(9,489,669) |
(9,545,057) |
Total stockholders'
equity |
36,549,960 |
35,183,656 |
Total liabilities and
stockholders' equity |
$ 38,928,105 |
$ 37,150,621 |
|
|
|
|
|
NOBILITY HOMES,
INC. |
Consolidated Statements
of Comprehensive Income |
(Unaudited) |
|
|
|
|
|
|
Three Months
Ended |
Twelve Months
Ended |
|
November 1, |
November 2, |
November 1, |
November 2, |
|
2014 |
2013 |
2014 |
2013 |
|
|
|
|
|
Net sales |
$ 6,183,165 |
$ 6,552,208 |
$ 21,152,259 |
$18,525,950 |
|
|
|
|
|
Cost of goods sold |
(4,721,615) |
(5,202,944) |
(16,780,713) |
(15,149,277) |
|
|
|
|
|
Gross
profit |
1,461,550 |
1,349,264 |
4,371,546 |
3,376,673 |
|
|
|
|
|
Selling, general and administrative
expenses |
(829,460) |
(666,763) |
(3,060,516) |
(2,594,981) |
|
|
|
|
|
Operating
income |
632,090 |
682,501 |
1,311,030 |
781,692 |
|
|
|
|
|
Other income (loss): |
|
|
|
|
Interest
income |
24,024 |
13,002 |
63,137 |
53,346 |
Undistributed earnings
in joint venture -- Majestic 21 |
29,008 |
31,913 |
134,921 |
121,293 |
Losses from investments
in retirement community limited partnerships |
(90,176) |
(66,859) |
(321,531) |
(289,990) |
Miscellaneous |
25,560 |
906 |
74,377 |
74,447 |
Total other
loss |
(11,584) |
(21,038) |
(49,096) |
(40,904) |
|
|
|
|
|
Income before provision for income
taxes |
620,506 |
661,463 |
1,261,934 |
740,788 |
|
|
|
|
|
Income tax benefit
(expense) |
(3,178) |
6,318 |
(4,036) |
6,318 |
|
|
|
|
|
Net
income |
617,328 |
667,781 |
1,257,898 |
747,106 |
|
|
|
|
|
Other comprehensive income
(loss) |
|
|
|
|
Unrealized investment
gain (loss) |
15,083 |
(6,839) |
41,212 |
134,288 |
|
|
|
|
|
Comprehensive
income |
$ 632,411 |
$ 660,942 |
$ 1,299,110 |
$ 881,394 |
|
|
|
|
|
Weighted average number of shares
outstanding: |
|
|
|
|
Basic |
4,062,640 |
4,057,053 |
4,059,668 |
4,057,053 |
Diluted |
4,063,700 |
4,058,036 |
4,060,654 |
4,057,053 |
|
|
|
|
|
Net income per share: |
|
|
|
|
Basic |
$ 0.15 |
$ 0.16 |
$ 0.32 |
$ 0.18 |
Diluted |
$ 0.15 |
$ 0.16 |
$ 0.32 |
$ 0.18 |
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