OCALA, Fla., June 10 /PRNewswire-FirstCall/ -- Today Nobility
Homes, Inc. (Nasdaq: NOBH) announced sales and earnings results for
its second quarter ended May 1, 2010.
Sales for the second quarter of 2010 were up 55% to
$3,708,529 as compared to
$2,388,817 recorded in second quarter
of 2009. Loss from operations for the second quarter of 2010
was $236,928 versus loss of
$884,242 in the same period a year
ago. Net loss after taxes was $202,029 as compared to loss of $506,440 for the same period last year. The
net loss after taxes of $202,029 for
the second quarter of 2010 came after deducting $194,825 in non-cash losses for our investment in
two retirement community limited partnerships and included a tax
benefit of $162,267. Loss for
the second quarter of 2010 was ($0.05) per share compared to loss of
($0.12) per share last year.
For the first six months of fiscal 2010, sales were up 18% to
$7,001,403 as compared to sales of
$5,950,299 in the first six months of
2009. Loss from operations for the first six months of 2010
was $648,521 versus loss of
$1,404,065 in the first six months of
2009. Net loss after taxes was $539,374 compared to loss of $629,588 for the same six month period last year.
The net loss after taxes of $539,374 for the first six months of 2010 came
after deducting $450,049 in non-cash
losses for our investment in two retirement community limited
partnerships. Loss for the first six months of 2010 was
($0.13) per share compared to loss of
($0.15) per share last year.
Nobility's financial position during first quarter of 2010
remains strong with cash and cash equivalents, short and long-term
investments of $10,016,133 and no
outstanding debt. Working capital is $25,229,899 and our ratio of current assets to
current liabilities is 22.1:1. Stockholders' equity is
$40,867,915 and the book value per
share of common stock is $10.08.
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 second quarter of 2010, were
adversely impacted by our country's severe economic uncertainty and
the low manufactured housing shipments in Florida, plus the overall decline in
Florida and the nation's housing
market. Industry shipments in Florida for the period November 2009 through April 2010 were up approximately 13% 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 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 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 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 43 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.
Consolidated
Balance Sheets
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
May
1,
2010
|
|
October
31,
2009
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
5,247,922
|
|
$
3,995,167
|
|
Short-term
investments
|
|
2,528,690
|
|
3,855,905
|
|
Accounts
receivable
|
|
1,508,021
|
|
963,032
|
|
Inventories
|
|
15,864,419
|
|
15,679,969
|
|
Income tax
receivable
|
|
771,027
|
|
976,130
|
|
Prepaid expenses and
other current assets
|
|
315,406
|
|
362,161
|
|
Deferred income
taxes
|
|
189,912
|
|
279,818
|
|
Total
current assets
|
|
26,425,397
|
|
26,112,182
|
|
|
|
|
|
|
|
|
Property, plant and equipment,
net
|
|
4,035,518
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|
4,138,336
|
|
Long-term investments
|
|
2,239,521
|
|
2,252,419
|
|
Other investments
|
|
6,132,201
|
|
6,599,846
|
|
Deferred income taxes
|
|
803,223
|
|
572,099
|
|
Other assets
|
|
2,427,553
|
|
2,397,793
|
|
Total
assets
|
|
$
42,063,413
|
|
$
42,072,675
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders'
Equity
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
Accounts
payable
|
|
$
172,572
|
|
$
91,636
|
|
Accrued
compensation
|
|
91,836
|
|
62,610
|
|
Accrued expenses and
other current liabilities
|
|
192,693
|
|
240,539
|
|
Customer
deposits
|
|
738,397
|
|
410,578
|
|
Total
current liabilities
|
|
1,195,498
|
|
805,363
|
|
|
|
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|
|
|
|
Commitments and contingent
liabilities
|
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|
|
|
|
|
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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
|
|
10,407,044
|
|
10,331,168
|
|
Retained
earnings
|
|
39,358,537
|
|
39,897,911
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|
Accumulated other
comprehensive income (loss)
|
|
117,536
|
|
53,435
|
|
Less
treasury stock at cost, 1,308,763 and 1,276,373 shares,
respectively, in 2010 and 2009
|
|
(9,551,693)
|
|
(9,551,693)
|
|
Total
stockholders' equity
|
|
40,867,915
|
|
41,267,312
|
|
Total
liabilities and stockholders' equity
|
|
$
42,063,413
|
|
$
42,072,675
|
|
|
|
|
|
|
|
|
|
NOBILITY HOMES,
INC.
Consolidated
Statements of Operations and Comprehensive Loss
(Unaudited)
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|
Three Months
Ended
|
|
Six Months
Ended
|
|
May
1,
2010
|
|
May
2,
2009
|
|
May
1,
2010
|
|
May
2,
2009
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$3,708,529
|
|
$2,388,817
|
|
$7,001,403
|
|
$5,950,299
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods sold
|
|
(2,888,795)
|
|
(1,985,735)
|
|
(5,606,967)
|
|
(4,725,040)
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
819,734
|
|
403,082
|
|
1,394,436
|
|
1,225,259
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
|
(1,056,662)
|
|
(1,287,324)
|
|
(2,042,957)
|
|
(2,629,324)
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|
|
|
|
|
|
|
|
|
|
|
Operating
loss
|
|
(236,928)
|
|
(884,242)
|
|
(648,521)
|
|
(1,404,065)
|
|
|
|
|
|
|
|
|
|
|
|
Other income (loss):
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
61,676
|
|
91,043
|
|
129,345
|
|
214,838
|
|
Equity in earnings in
joint venture -
Majestic 21
|
|
-
|
|
46,433
|
|
11,404
|
|
91,733
|
|
Earnings from finance
revenue
sharing
agreement
|
|
-
|
|
-
|
|
-
|
|
157,700
|
|
Equity in losses from
investments
in retirement community
limited
partnership
|
|
(194,825)
|
|
(121,126)
|
|
(450,049)
|
|
(188,037)
|
|
Miscellaneous
|
|
5,781
|
|
13,685
|
|
24,018
|
|
13,685
|
|
Total other
income (loss)
|
|
(127,368)
|
|
30,035
|
|
(285,282)
|
|
289,919
|
|
|
|
|
|
|
|
|
|
|
|
Loss before provision for income
taxes
|
|
(364,296)
|
|
(854,207)
|
|
(933,803)
|
|
(1,114,146)
|
|
|
|
|
|
|
|
|
|
|
|
Income tax benefit
|
|
162,267
|
|
347,767
|
|
394,429
|
|
484,558
|
|
|
|
|
|
|
|
|
|
|
|
Net
loss
|
|
(202,029)
|
|
(506,440)
|
|
(539,374)
|
|
(629,588)
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive income
(loss), net of tax:
|
|
|
|
|
|
|
|
|
|
Unrealized investment
gain (loss)
|
|
30,809
|
|
8,498
|
|
47,455
|
|
(6,365)
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive
loss
|
|
$
(171,220)
|
|
$
(497,942)
|
|
$
(491,919)
|
|
$
(635,953)
|
|
|
|
|
|
|
|
|
|
|
|
Weighed average number of shares
outstanding:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
4,056,144
|
|
4,065,708
|
|
4,056,144
|
|
4,072,228
|
|
Diluted
|
|
4,056,144
|
|
4,065,708
|
|
4,056,144
|
|
4,072,228
|
|
|
|
|
|
|
|
|
|
|
|
Loss per share:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
(0.05)
|
|
$
(0.12)
|
|
$
(0.13)
|
|
$
(0.15)
|
|
Diluted
|
|
$
(0.05)
|
|
$
(0.12)
|
|
$
(0.13)
|
|
$
(0.15)
|
|
|
|
|
|
|
|
|
|
|
|
Cash dividends paid per common
share
|
|
$
-
|
|
$
-
|
|
$
0.25
|
|
$
0.50
|
|
|
|
|
|
|
|
|
|
|
SOURCE Nobility Homes, Inc.