Exhibit 99.1

 

LOGO

NOBILITY HOMES, INC. ANNOUNCES INCREASED SALES AND EARNINGS FOR ITS SECOND QUARTER 2019

Ocala, FL…June 10, 2019 - Today Nobility Homes, Inc. (OTCQX: NOBH) announced sales and earnings for its second quarter ended May 4, 2019. Sales for the second quarter of 2019 were up 43% to $12,742,688 as compared to $8,922,264 recorded in the second quarter of 2018. Income from operations for the second quarter of 2019 was up 79% to $2,135,726 versus $1,191,947 in the same period a year ago. Net income after taxes was up 60% to $1,819,725 as compared to $1,135,605 for the same period last year. Diluted earnings per share for the second quarter of 2019 were $0.47 per share compared to $0.29 per share last year.

For the first six months of fiscal 2019, sales were up 28% to $23,782,462 as compared to $18,568,082 for the first six months of 2018. Income from operations was up 71% to $3,907,557 versus $2,282,104 last year. Net income after taxes was up 56% to $3,355,531 compared to $2,151,841 last year. Diluted earnings per share were $0.87 per share compared to $0.54 per share last year.

Nobility’s financial position for the first six months of 2019 remains very strong with cash and cash equivalents, certificates of deposit and short term investments of $31,723,668 and no outstanding debt. Working capital is $37,245,662 and our ratio of current assets to current liabilities is 6.1:1. Stockholders’ equity is $48,322,892 and the book value per share of common stock outstanding increased to $12.52.

Terry Trexler, President, stated, “The demand for affordable manufactured housing in Florida continues to be strong. According to the Florida Manufactured Housing Association, shipments in Florida for the period from November 2018 through April 2019 were up approximately 26% from the same period last year. Constrained consumer credit and the lack of lenders in our industry, partly as a result of an increase in government regulations, still affects our results by limiting many affordable manufactured housing buyers from purchasing homes. However, legislation may help improve this situation in the future.

Maintaining our strong financial position is vital for future growth and success. Because of very challenging business conditions during economic recessions in our market area, management will continue to evaluate all expenses and react in a manner consistent with maintaining our strong financial position, while exploring opportunities to expand our distribution and manufacturing operations.

Our many years of experience in the Florida market, combined with home buyers’ increased need for more affordable housing, should serve the Company 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”.

On June 5, 2019 the Company celebrated its 52nd anniversary in business specializing in the design and production of quality, affordable manufactured homes. With multiple retail sales centers, an insurance agency subsidiary, and an investment in a retirement manufactured home community, 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 unaudited or forward-looking statements within the meaning of the federal securities laws. Although Nobility believes that the amounts and 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.

Condensed Consolidated Balance Sheets

 

     May 4,     November 3,  
     2019     2018  
     (Unaudited)        

Assets

    

Current assets:

    

Cash and cash equivalents

   $ 23,066,346     $ 28,364,861  

Certificates of Deposit

     8,079,072       6,034,093  

Short-term investments

     578,250       537,767  

Accounts receivable - trade

     2,097,164       1,783,073  

Note receivable

     67,900       46,444  

Mortgage notes receivable

     16,706       15,664  

Inventories

     8,227,752       7,270,550  

Pre-owned homes, net

     821,781       933,640  

Prepaid expenses and other current assets

     1,573,860       1,090,152  
  

 

 

   

 

 

 

Total current assets

     44,528,831       46,076,244  

Property, plant and equipment, net

     4,844,129       4,763,566  

Pre-owned homes, net

     457,577       473,191  

Note receivable, less current portion

     59,600       46,265  

Mortgage notes receivable, less current portion

     234,322       236,402  

Other investments

     1,611,921       1,571,166  

Property held for sale

     213,437       213,437  

Deferred income taxes

     —         40,156  

Cash surrender value of life insurance

     3,527,974       3,437,974  

Other assets

     156,287       156,287  
  

 

 

   

 

 

 

Total assets

   $ 55,634,078     $ 57,014,688  
  

 

 

   

 

 

 

Liabilities and Stockholders’ Equity

    

Current liabilities:

    

Accounts payable

   $ 1,052,935     $ 1,085,095  

Accrued compensation

     788,187       869,657  

Accrued expenses and other current liabilities

     1,754,245       1,349,381  

Income taxes payable

     618,363       579,786  

Customer deposits

     3,069,439       4,064,268  
  

 

 

   

 

 

 

Total current liabilities

     7,283,169       7,948,187  

Deferred income taxes

     28,017       —    
  

 

 

   

 

 

 

Total liabilities

     7,311,186       7,948,187  
  

 

 

   

 

 

 

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; 3,860,513 outstanding

     536,491       536,491  

Additional paid in capital

     10,678,137       10,670,848  

Retained earnings

     49,843,861       50,352,546  

Accumulated other comprehensive income

     446,119       390,407  

Less treasury stock at cost, 1,504,394 shares in 2019 and 1,491,176 shares in 2018

     (13,181,716     (12,883,791
  

 

 

   

 

 

 

Total stockholders’ equity

     48,322,892       49,066,501  
  

 

 

   

 

 

 

Total liabilities and stockholders’ equity

   $ 55,634,078     $ 57,014,688  
  

 

 

   

 

 

 


NOBILITY HOMES, INC.

Condensed Consolidated Statements of Income and Comprehensive Income

Unaudited

 

     Three Months Ended     Six Months Ended  
     May 4,     May 5,     May 4,     May 5,  
     2019     2018     2019     2018  

Net sales

   $ 12,742,688     $ 8,922,264     $ 23,782,462     $ 18,568,082  

Cost of goods sold

     (9,296,276     (6,610,958     (17,367,047     (14,039,837
  

 

 

   

 

 

   

 

 

   

 

 

 

Gross profit

     3,446,412       2,311,306       6,415,415       4,528,245  

Selling, general and administrative expenses

     (1,310,686     (1,119,359     (2,507,858     (2,246,141
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating income

     2,135,726       1,191,947       3,907,557       2,282,104  
  

 

 

   

 

 

   

 

 

   

 

 

 

Other income:

        

Interest income

     145,026       81,446       297,469       117,383  

Undistributed earnings in joint venture - Majestic 21

     21,231       27,266       40,755       50,315  

Proceeds received under escrow arrangement

     108,119       55,640       212,607       55,640  

Gain on property held for resale

     15,242       203,512       15,242       203,512  

Miscellaneous

     13,962       6,850       22,880       12,584  
  

 

 

   

 

 

   

 

 

   

 

 

 

Total other income

     303,580       374,714       588,953       439,434  
  

 

 

   

 

 

   

 

 

   

 

 

 

Income before provision for income taxes

     2,439,306       1,566,661       4,496,510       2,721,538  

Income tax expense

     (619,581     (431,056     (1,140,979     (569,697
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income

     1,819,725       1,135,605       3,355,531       2,151,841  

Other comprehensive income (loss)

        

Unrealized investment gain (loss), net of tax effect

     39,172       (67,857     55,712       (45,510
  

 

 

   

 

 

   

 

 

   

 

 

 

Comprehensive income

   $ 1,858,897     $ 1,067,748     $ 3,411,243     $ 2,106,331  
  

 

 

   

 

 

   

 

 

   

 

 

 

Weighted average number of shares outstanding:

        

Basic

     3,865,588       3,903,904       3,869,726       3,950,638  

Diluted

     3,867,802       3,906,077       3,871,943       3,952,650  

Net income per share:

        

Basic

   $ 0.47     $ 0.29     $ 0.87     $ 0.54  

Diluted

   $ 0.47     $ 0.29     $ 0.87     $ 0.54  

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