The Company realized pre-tax income in the third quarter of 2019 of
$3,399,922 as compared to $1,717,942 in the third quarter of 2018. The pre-tax income for the first nine months of 2019 was $7,896,432 as compared to $4,439,480 in first nine months of 2018. The pre-tax
increase in 2019 was impacted by a one-time gain of $864,887 on the sale of our former Pace retail sales center property.
The Company recorded an income
tax expense in the amount of $856,818 in the third quarter of 2019 as compared to $469,858 in third quarter 2018. Income tax expense for the nine months of 2019 was $1,997,797 compared to $1,039,555 for the nine months of 2018.
We reported net income of $2,543,104 for the third quarter of 2019 or $0.67 per share, compared to $1,248,084 or $0.32 per share, for the third quarter of
2018. For the first nine months of 2019 net income was $5,898,635 or $1.53 per share, compared to $3,399,925 or $0.87 per share, in the first nine months of 2018.
Liquidity and Capital Resources
Cash and cash
equivalents were $21,146,880 at August 3, 2019 compared to $28,364,861 at November 3, 2018. Certificates of deposit were $10,118,833 at August 3, 2019 compared to $6,034,093 at November 3, 2018. Short-term investments were
$496,556 at August 3, 2019 compared to $537,767 at November 3, 2018. Working capital was $37,042,814 at August 3, 2019 as compared to $38,128,057 at November 3, 2018. During the first nine months of 2019, the Company repurchased
an aggregate of 129,896 shares of its common stock for an aggregate of $2,853,361. In June 2019, the Company sold its former Pace retail sales center property for net proceeds of $1,078,325. A cash dividend was paid from our cash reserves in March
2019 in the amount of $3,864,216. We own the entire inventory for our Prestige retail sales centers which includes new, pre-owned and repossessed or foreclosed homes and do not incur any third party floor plan
financing expenses. The Company has no material commitments for capital expenditures.
We view our liquidity as our total cash and short term investments.
We currently have no line of credit facility and we do not believe that such a facility is currently necessary for our operations. We have no debt. We also have approximately $3.6 million of cash surrender value of life insurance at August 3,
2019, which we could access as an additional source of liquidity though we have not currently viewed this to be necessary. As of August 3, 2019, the Company continued to report a strong balance sheet which included total assets of approximately
$56 million and stockholders equity of approximately $48 million.
Critical Accounting Policies and Estimates
In Item 7 of our Form 10-K, under the heading Critical Accounting Policies and Estimates, we have provided
a discussion of the critical accounting policies and estimates that management believes affect its more significant judgments and estimates used in the preparation of our Consolidated Financial Statements. No significant changes have occurred since
that time.
Forward-Looking Statements
Certain
statements in this report are unaudited or 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, uncertain economic conditions, 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
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