OCALA, FL / ACCESSWIRE / June 17, 2022 / Today Nobility Homes, Inc. (OTCQX:NOBH) announced sales and earnings for its second quarter ended May 7, 2022. Sales for the second quarter of 2022 was $10.6 million as compared to $14.7 million recorded in the second quarter of 2021. Income from operations for the second quarter of 2022 was $1.6 million versus $2.1 million in the same period a year ago. Net income after taxes was $1.5 million as compared to $1.7 million for the same period last year. Diluted earnings per share for the second quarter of 2022 were $0.42 per share compared to $0.47 per share last year.

For the first six months of fiscal 2022 sales were $21.5 million as compared to $23.8 million for the first six months of 2021. Income from operations was $3.0 million versus $3.3 million last year. Net income after taxes was $2.6 million compared to $2.8 million last year. Diluted earnings per share were $0.74 per share compared to $0.77 per share last year.


Sponsored content:


Nobility’s financial position during the second quarter 2022 remains very strong with cash and cash equivalents and short term investments of $27.1 million and no outstanding debt. Working capital is $29.6 million and our ratio of current assets to current liabilities is 2.7:1. Stockholders’ equity is $43.3 million and the book value per share of common stock was $12.83.

Terry Trexler, President, stated, “The demand for affordable manufactured housing in Florida and the U.S. continues to improve. According to the Florida Manufactured Housing Association, shipments for the industry in Florida for the period from November 2021 through April 2022 were up approximately 23% from the same period last year. Our sales and earnings continue to be affected as we continue to experience the negative impact of limitations being placed on certain key production materials from suppliers, the delay or lack of key components from vendors as well as back orders, delayed shipments, price increases and labor shortages. This has caused delays in completion of the homes at the manufacturing facility and the set up process of retail homes in the field. We expect that these challenges will continue for the remainder of fiscal year 2022 and potentially beyond until the industry supply chain normalizes.

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.”


Sponsored content: OurLifeStore.com is a veteran owned e-commerce with over 40k items at great prices & always free shipping


On June 5, 2022 the Company celebrated its 55th anniversary in business specializing in the design and production of quality, affordable manufactured homes. With multiple retail sales centers in Florida for over 31 years and an insurance agency subsidiary, 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 121 OR [email protected] OR [email protected]

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, the potential adverse impact on our business caused by the COVID-19 pandemic or other health pandemics, competitive pricing pressures at both the wholesale and retail levels, inflation, increasing material costs (including forest based products) or availability of materials due to potential supply chain interruptions (such as current inflation with forest products and supply issues with vinyl siding and PVC piping), 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, any armed conflict involving the United States and the impact of inflation.

NOBILITY HOMES, INC.
Condensed Consolidated Balance Sheets

May 7, November 6,

2022 2021

(Unaudited)

Current assets:
Cash and cash equivalents

$26,530,111 $36,126,059

Certificates of deposit

2,093,015

Short-term investments

598,154 621,928

Accounts receivable – trade

807,197 680,228

Note receivable

23,905 32,825

Mortgage notes receivable

24,291 22,589

Income tax receivable

42,792 –

Inventories

16,801,175 10,394,288

Pre-owned homes, net

– 542,081

Prepaid expenses and other current assets

2,283,654 1,821,267

Total current assets

47,111,279 52,334,280

Property, plant and equipment, net

7,305,133 6,847,780

Pre-owned homes, net

– 755,394

Note receivable, less current portion

27,849 38,895

Mortgage notes receivable, less current portion

219,772 222,459

Mobile home park note receivable

136,509 72,731

Other investments

1,813,658 1,788,436

Operating lease right of use assets

– 1,597

Cash surrender value of life insurance

4,052,457 3,966,939

Other assets

156,287 156,287

Total assets

$60,822,944 $66,184,798

Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable

$1,819,257 $939,964

Accrued compensation

777,649 555,222

Accrued expenses and other current liabilities

1,627,284 1,513,967

Income taxes payable

– 89,083

Operating lease obligation

– 1,597

Customer deposits

13,285,127 13,671,092

Total current liabilities

17,509,317 16,770,925

Deferred income taxes

51,027 99,568

Total liabilities

17,560,344 16,870,493

Commitments and contingencies
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;
3,370,912 and 3,532,100 outstanding, respectively

536,491 536,491

Additional paid in capital

10,806,923 10,766,253

Retained earnings

58,823,643 59,742,759

Less treasury stock at cost, 1,993,995 shares in 2022 and
1,832,807 shares in 2021

(26,904,457) (21,731,198)

Total stockholders’ equity

43,262,600 49,314,305

Total liabilities and stockholders’ equity

$60,822,944 $66,184,798

NOBILITY HOMES, INC.
Condensed Consolidated Statements of Income
(Unaudited)

Three Months Ended Six Months Ended

May 7, May 1, May 7, May 1,

2022 2021 2022 2021

$10,645,046 $14,742,900 $21,453,316 $23,814,411

Cost of sales

(7,623,128) (11,130,215) (15,703,170) (17,704,279)

Gross profit

3,021,918 3,612,685 5,750,146 6,110,132

Selling, general and administrative expenses

(1,378,606) (1,550,513) (2,795,149) (2,823,894)

Operating income

1,643,312 2,062,172 2,954,997 3,286,238

Other income (loss):
Interest income

39,577 52,474 114,257 83,130

Undistributed earnings in joint venture – Majestic 21

12,665 12,049 25,222 25,757

Proceeds received under escrow arrangement

115,454 – 233,499 45,868

(Decrease) Increase in fair value of equity investment

(19,681) 123,803 (23,774) 203,759

Gain on disposal of property, plant and equipment

88,936 – 88,936 –

Miscellaneous

12,352 17,945 25,908 25,265

Total other income

249,303 206,271 464,048 383,779

Income before provision for income taxes

1,892,615 2,268,443 3,419,045 3,670,017

Income tax expense

(435,789) (543,505) (805,185) (879,314)

Net income

1,456,826 1,724,938 2,613,860 2,790,703

Weighted average number of shares outstanding:

3,476,508 3,632,195 3,504,655 3,632,060

3,487,516 3,642,501 3,515,994 3,638,140

Net income per share:

$0.42 $0.47 $0.75 $0.77

$0.42 $0.47 $0.74 $0.77

SOURCE: Nobility Homes, Inc.

View source version on accesswire.com:
https://www.accesswire.com/705491/Nobility-Homes-Inc-Announces-Sales-and-Earnings-for-Its-Second-Quarter-2022