OCALA, Fla., June 3, 2011 /PRNewswire/ -- Today Nobility
Homes, Inc. (NASDAQ: NOBH) announced sales and earnings results for
its first quarter ended February 5,
2011. Sales for the first quarter 2011 were
$3,232,689 as compared to
$3,292,874 recorded in the first
quarter of 2010. Loss from operations for the first quarter
2011 was $170,996 versus a loss of
$411,593 in the same period a year
ago. Net loss after taxes was $116,386 as compared to net loss after taxes of
$337,345 for the same period last
year. Due to the number of repurchased homes the
Company has experienced under the finance revenue sharing
agreement, the Company has increased the inventory valuation
reserve to $461,208 at February 5, 2011 from $402,994 at November 6,
2010 for potential losses associated with the refurbishing
and reselling of the repurchased homes. Although the Company
has currently not experienced any losses in disposing of the
repossessions, the Company is concerned with the number of
repossessions in inventory and may choose more aggressive pricing
which could lead to some repossessions being sold for a loss.
The net loss after taxes of $116,386 for the first quarter 2011 came after
deducting $28,200 in non-cash losses
for our investment in two retirement community limited partnerships
and included a tax benefit of $22,733. Loss for the first quarter 2011
was ($0.03) per share compared to a
loss of ($0.08) per share in the same
period a year ago.
Nobility's financial position during for the first quarter
2011 remains strong with cash and cash equivalents, short and
long-term investments of $9,249,666
and no outstanding debt. Working capital is $26,730,220 and our ratio of current assets to
current liabilities is 20.6:1. Stockholders' equity is
$40,607,312 and the book value per
share of common stock is $10.01.
The Company did not repurchase any shares of its common stock
during the first quarter 2011. 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 first quarter 2011, continued
to be adversely impacted by our country's 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 2010 through January 2011 were down approximately 18% from the
same period last year. Even though Nobility's gross profit as
a percentage of net sales, selling, general and administrative
expenses improved, the Company's low sales volume made it difficult
to report meaningful results for the first quarter 2011.
Continued lack of retail and wholesale financing, very high
unemployment and home foreclosures, slow sales of existing
site-built homes, low consumer confidence and a poor economic
outlook for the U.S. and Florida's
economy are just a few of the on-going challenges the Company
faced. While the management has not seen decisive improvement
in these challenges brought about by the tumultuous events of 2008
and 2009, some slight progress has emerged for the nation's
economy.
Although the overall housing picture, credit market and
economy have not improved measurably during the 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. The Baby Boomer
generation began to turn 65 in January
2011 and by 2030 the number of Americans 65 and over is
predicted to almost double. This trend coupled with the end
of the free spending credit-driven years, Nobility's 44 years in
the Florida market, and consumers'
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. For the remainder of fiscal 2011, 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 significantly.
Management understands that during this very complex economic
environment, maintaining the Company's strong financial position is
vital for future growth and success. Because of the poor
business conditions in our market area and the lack of any clarity
when today's economic challenges will improve measurably, the
Company will continue to evaluate Prestige's twelve retail model
centers in Florida, along with all
expenses within the Company and react in a manner consistent with
maintaining our financial position.
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 twelve 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.
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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February
5,
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November
6,
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|
|
|
2011
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2010
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|
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Unaudited
|
|
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Assets
|
|
|
|
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Current Assets:
|
|
|
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Cash and cash
equivalents
|
$
6,676,756
|
|
$
8,225,232
|
|
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Short-term
investments
|
2,061,792
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|
2,025,812
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|
|
Accounts and notes
receivable
|
949,904
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296,536
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Mortgage notes receivable,
current
|
2,301
|
|
2,284
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Inventories
|
17,473,393
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|
16,569,403
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Income tax
receivable
|
246,900
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|
244,365
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Prepaid expenses and other
current assets
|
432,607
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|
230,597
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Deferred income
taxes
|
251,966
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|
267,566
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Total current
assets
|
28,095,619
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27,861,795
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Property, plant and equipment,
net
|
3,946,763
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3,989,441
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Long-term
investments
|
511,118
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|
512,786
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Mortgage notes receivable, long
term
|
190,249
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|
190,921
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Other investments
|
5,624,371
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5,647,043
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Deferred income
taxes
|
1,053,749
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1,033,291
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Other assets
|
2,616,378
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2,524,952
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Total
assets
|
$
42,038,247
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$
41,760,229
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Liabilities and stockholders'
equity
|
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Current
liabilities:
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Accounts payable
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$
339,474
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$
220,635
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Accrued
compensation
|
85,050
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114,478
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Accrued expenses and other
current liabilities
|
435,146
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209,787
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Deferred revenue,
current
|
4,096
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-
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Customer deposits
|
501,633
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554,991
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Total current
liabilities
|
1,365,399
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|
1,099,891
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Deferred revenue, long
term
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65,536
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-
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Total
liabilities
|
1,430,935
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|
1,099,891
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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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-
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-
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authorized; none issued and outstanding
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Common stock, $.10
par value, 10,000,000 shares
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authorized; 5,364,907 shares issued
|
536,491
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|
536,491
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Additional paid in
capital
|
10,520,857
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10,482,920
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Retained
earnings
|
38,986,395
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39,102,781
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Accumulated other
comprehensive income
|
115,262
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|
89,839
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Less treasury
stock at cost, 1,308,763 in 2011 and 2010
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(9,551,693)
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(9,551,693)
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|
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Total
stockholders' equity
|
40,607,312
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|
40,660,338
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|
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Total liabilities
and stockholders' equity
|
$
42,038,247
|
|
$
41,760,229
|
|
|
|
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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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February
5,
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January
30,
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2011
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2010
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|
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Net sales
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$ 3,232,689
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$ 3,292,874
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Cost of goods
sold
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(2,576,434)
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(2,673,392)
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Gross
profit
|
656,255
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|
619,482
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Selling, general and
administrative expenses
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(827,251)
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(1,031,075)
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Operating
loss
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(170,996)
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(411,593)
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Other income
(expense):
|
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Interest income
|
36,321
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|
67,669
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Undistributed earnings in joint
venture - Majestic 21
|
5,528
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|
11,425
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Losses from investments in
retirement
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community limited
partnerships
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(28,200)
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(255,224)
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Miscellaneous
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18,228
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18,216
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Total other income
(loss)
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31,877
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(157,914)
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Loss before provision for income
taxes
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(139,119)
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(569,507)
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Income tax
benefit
|
22,733
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|
232,162
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|
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Net loss
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(116,386)
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(337,345)
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Other comprehensive income, net
of tax:
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Unrealized investment
gain
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25,423
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16,646
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Comprehensive
loss
|
$
(90,963)
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$
(320,699)
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Weighted 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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Diluted
|
4,056,144
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4,056,144
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Loss per share
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Basic
|
$
(0.03)
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$
(0.08)
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Diluted
|
$
(0.03)
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$
(0.08)
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SOURCE Nobility Homes, Inc.