OCALA, Fla., Sept. 10 /PRNewswire-FirstCall/ -- Today Nobility
Homes, Inc. (NASDAQ:NOBH) announced sales and earnings results for
its third quarter ended August 1, 2009. Sales for the third quarter
of 2009 were $3,082,551 as compared to $7,395,885 recorded in third
quarter of 2008. Loss from operations for the third quarter of 2009
was $299,019 versus income of $213,055 in the same period a year
ago. Net income after taxes was $21,862 as compared to income of
$397,561 for the same period last year. The net income after taxes
of $21,862 for the third quarter of 2009 came after deducting
$85,306 in non-cash losses for our investment in two retirement
community limited partnerships and included a tax benefit of
$278,860. Income for the third quarter of 2009 was $0.01 per
diluted share compared to earnings of $0.10 per diluted share last
year. For the first nine months of fiscal 2009, sales were
$9,032,850 as compared to sales of $24,265,336 in the first nine
months of 2008. Loss from operations for the first nine months of
2009 was $1,703,084 versus income of $1,486,293 in the first nine
months of 2008. Net loss after taxes was $607,726 as compared to
income of $1,606,284 for the same nine month period last year. The
net loss after taxes of $607,726 for the first nine months of 2009
came after deducting $273,343 in non-cash losses for our investment
in two retirement community limited partnerships and included a tax
benefit of $763,418. Loss for the first nine months of 2009 was
($0.15) per share compared to diluted earnings of $0.39 per share
last year. Nobility's financial position during fiscal year 2009
remains strong with cash and cash equivalents, short and long-term
investments of $11,023,767 and no outstanding debt. Working capital
is $19,953,772 and our ratio of current assets to current
liabilities is 26.9:1. Stockholders' equity is $41,672,327 and the
book value per share of common stock is $10.27. The Company
repurchased in the open market 32,390 shares of its common stock
during the first nine months of 2009. 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 third quarter of 2009, were
adversely impacted by our country's severe economic uncertainty and
the reduced manufactured housing shipments in Florida, plus the
overall decline in Florida and the nation's housing market.
Industry shipments in Florida for the period of November 2008
through July 2009 were down approximately 56% from the same period
last year. Fiscal year 2009 is Nobility's 42nd year of operating in
our market area and is proving to be our most challenging. 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 facing our country, our
industry, and Nobility. 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 fifteen retail model
centers in Florida, along with all expenses within the Company and
react in a manner consistent with maintaining our strong balance
sheet. 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 strong operating leverage inherent in the Company, we expect
to out-perform the industry. For the remainder of fiscal 2009, 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
Nobility's 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 significant growth area
for Florida in the future." Nobility Homes, Inc. has specialized
for 42 years in the design and production of quality, affordable
manufactured homes at its plant located in central Florida. With
fifteen 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 CALL TERRY OR TOM TREXLER @
800-476-6624 EXT 221 OR OR 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) August
1, November 1, 2009 2008 ---- ---- Assets Current assets: Cash and
cash equivalents $2,996,853 $8,649,724 Short-term investments
252,147 168,210 Accounts receivable 595,505 654,529 Inventories
15,316,185 12,051,361 Prepaid income taxes - 438,398 Income tax
receivable 901,248 - Prepaid expenses and other current assets
451,008 433,166 Deferred income taxes 210,858 298,408 -------
------- Total current assets 20,723,804 22,693,796 ----------
---------- Property, plant and equipment, net 4,144,029 4,342,401
Long-term investments 7,774,767 8,140,226 Other investments
6,962,592 7,222,276 Deferred income taxes 454,252 334,424 Other
assets 2,382,915 2,397,939 --------- --------- Total assets
$42,442,359 $45,131,062 =========== =========== Liabilities and
Stockholders' Equity Current liabilities: Accounts payable $97,144
$186,477 Accrued compensation 55,259 201,155 Accrued expenses and
other current liabilities 338,590 355,218 Customer deposits 279,039
717,951 ------- ------- Total current liabilities 770,032 1,460,801
------- --------- Uncertain tax liabilities - 275,000 --- -------
Total liabilities 770,032 1,735,801 ------- --------- 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 10,292,975 10,178,398 Retained earnings 40,342,028
41,968,423 Accumulated other comprehensive income 52,526 175 Less
treasury stock at cost, 1,308,763 and 1,276,373 shares,
respectively, in 2009 and 2008 (9,551,693) (9,288,226) ----------
---------- Total stockholders' equity 41,672,327 43,395,261
---------- ---------- Total liabilities and stockholders' equity
$42,442,359 $45,131,062 =========== =========== NOBILITY HOMES,
INC. Consolidated Statements of Operations and Comprehensive Income
(Loss) (Unaudited) Three Months Ended Nine Months Ended
------------------ ----------------- August 1, August 2, August 1,
August 2, 2009 2008 2009 2008 Net sales $3,082,551 $7,395,885
$9,032,850 $24,265,336 Cost of goods sold (2,396,635) (5,435,537)
(7,121,675) (17,629,032) ---------- ---------- ----------
----------- Gross profit 685,916 1,960,348 1,911,175 6,636,304
Selling, general and administrative expenses (984,935) (1,747,293)
(3,614,259) (5,150,011) -------- ---------- ---------- ----------
Operating income (loss) (299,019) 213,055 (1,703,084) 1,486,293
-------- ------- ---------- --------- Other income (expense):
Interest income 64,380 118,993 279,218 389,923 Undistributed
earnings in joint venture - Majestic 21 45,426 60,035 137,159
228,730 Earnings from finance revenue sharing agreement - 191,200
157,700 536,300 Undistributed losses from investments in retirement
community limited partnership (85,306) 10,646 (273,343) (168,196)
Miscellaneous 17,521 16,163 31,206 20,405 ------ ------ ------
------ Total other income 42,021 397,037 331,940 1,007,162 ------
------- ------- --------- Income (loss) before income tax benefit
(expense) (256,998) 610,092 (1,371,144) 2,493,455 Income tax
benefit (expense) 278,860 (212,531) 763,418 (887,171) -------
-------- ------- -------- Net income (loss) 21,862 397,561
(607,726) 1,606,284 Other comprehensive income (loss), net of tax:
Unrealized investment gain (loss) 58,716 (29,271) 52,351 (97,114)
------ ------- ------ ------- Comprehensive income (loss) $80,578
$368,290 $(555,375) $1,509,170 ======= ======== =========
========== Weighed average number of shares outstanding: Basic
4,056,144 4,087,639 4,066,886 4,087,442 Diluted 4,057,917 4,092,094
4,066,886 4,092,452 Earnings (loss) per share: Basic $0.01 $0.10
$(0.15) $0.39 Diluted $0.01 $0.10 $(0.15) $0.39 Cash dividends paid
per common share $- $- $0.25 $0.50 DATASOURCE: Nobility Homes, Inc.
CONTACT: Terry Trexler, CEO of Nobility Homes, +1-352-732-5157 Web
Site: http://www.nobilityhomes.com/
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