Nobility Homes, Inc. Announces Sales and Earnings for Its First Quarter 2022
Nobility Homes, Inc. (OTCQX:NOBH) reported a 19% increase in first-quarter sales for 2022, reaching $10.8 million, up from $9.1 million in the same period of 2021. Operating income also rose slightly to $1.3 million, while net income climbed to $1.2 million. Diluted earnings per share improved to $0.33, compared to $0.29 last year. With cash and equivalents at $39.6 million and no debt, Nobility declared a one-time cash dividend of $1.00 per share, payable on April 4, 2022. However, challenges include production material shortages and inflation, impacting gross profits.
- First-quarter sales increased by 19% to $10.8 million.
- Operating income rose to $1.3 million from $1.2 million.
- Net income after taxes improved to $1.2 million.
- Diluted earnings per share increased to $0.33 from $0.29.
- Strong financial position with no outstanding debt and cash equivalents of $39.6 million.
- Declared a one-time cash dividend of $1.00 per share.
- Facing production material shortages and delays affecting home completion.
- Record inflation in building products leading to increased material and labor costs.
- Gross profits decreased due to rising costs and supply chain disruptions.
- Expected challenges to continue throughout 2022 and potentially beyond.
OCALA, FL / ACCESSWIRE / March 11, 2022 / Today Nobility Homes, Inc. (OTCQX:NOBH) announced sales and earnings for its first quarter ended February 5, 2021. Sales for first quarter of 2022 increased
Nobility's financial position during first quarter 2022 remains very strong with cash and cash equivalents and short term investments of
The Board of Directors declared a one-time cash dividend of
The Company has no defined dividend policy. The Board of Directors maintains the authority to declare distributions at their discretion. The Board performs a thorough and extensive evaluation of the Company's balance sheet, cash flow, operating performance, and future earnings prospects when considering the declaration of any common dividend.
Terry Trexler, President, stated, "During first quarter of 2022, we continued 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. Production has incurred shortages in many building products, which has limited production and delayed the completion of the homes both at the manufacturing plant and the set up process in the field for the retail customer. In addition, we have continued to experience record inflation in most building products, resulting in increases to our material and labor costs and a corresponding decrease in gross profits. We expect that these challenges will continue for much of 2022 and potentially beyond until the industry supply chain normalizes. According to the Florida Manufactured Housing Association, shipments for the industry in Florida for the period from November 2021 through January 2022 were up approximately
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, 2021 the Company celebrated its 54th anniversary in business specializing in the design and production of quality, affordable manufactured and modular 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 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, the potential adverse impact on our business caused by the COVID-19 pandemic or other health pandemic, 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
| February 5, | November 6, | |||||||
| 2022 | 2021 | |||||||
| (Unaudited) | ||||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 38,932,257 | $ | 36,126,059 | ||||
Certificates of deposit | - | 2,093,015 | ||||||
Short-term investments | 617,835 | 621,928 | ||||||
Accounts receivable - trade | 493,504 | 680,228 | ||||||
Note receivable | 23,905 | 32,825 | ||||||
Mortgage notes receivable | 23,291 | 22,589 | ||||||
Inventories | 10,902,578 | 10,394,288 | ||||||
Pre-owned homes, net | 982,496 | 542,081 | ||||||
Prepaid expenses and other current assets | 1,618,570 | 1,821,267 | ||||||
Total current assets | 53,594,436 | 52,334,280 | ||||||
Property, plant and equipment, net | 6,923,336 | 6,847,780 | ||||||
Pre-owned homes, net | - | 755,394 | ||||||
Note receivable, less current portion | 33,372 | 38,895 | ||||||
Mortgage notes receivable, less current portion | 221,130 | 222,459 | ||||||
Mobile home park note receivable | 136,509 | 72,731 | ||||||
Other investments | 1,800,993 | 1,788,436 | ||||||
Operating lease right of use assets | - | 1,597 | ||||||
Cash surrender value of life insurance | 4,009,698 | 3,966,939 | ||||||
Other assets | 156,287 | 156,287 | ||||||
Total assets | $ | 66,875,761 | $ | 66,184,798 | ||||
Liabilities and Stockholders' Equity | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 1,014,041 | $ | 939,964 | ||||
Accrued compensation | 592,998 | 555,222 | ||||||
Accrued expenses and other current liabilities | 1,419,884 | 1,513,967 | ||||||
Income taxes payable | 458,479 | 89,083 | ||||||
Operating lease obligation | - | 1,597 | ||||||
Customer deposits | 12,793,296 | 13,671,092 | ||||||
Total current liabilities | 16,278,698 | 16,770,925 | ||||||
Deferred income taxes | 99,568 | 99,568 | ||||||
Total liabilities | 16,378,266 | 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; | ||||||||
3,532,976 and 3,532,100 outstanding, respectively | 536,491 | 536,491 | ||||||
Additional paid in capital | 10,782,019 | 10,766,253 | ||||||
Retained earnings | 60,899,793 | 59,742,759 | ||||||
Less treasury stock at cost, 1,831,931 shares in 2022 and | ||||||||
1,832,807 shares in 2021 | (21,720,808 | ) | (21,731,198 | ) | ||||
Total stockholders' equity | 50,497,495 | 49,314,305 | ||||||
Total liabilities and stockholders' equity | $ | 66,875,761 | $ | 66,184,798 | ||||
NOBILITY HOMES, INC.
Condensed Consolidated Statements of Income
(Unaudited)
| Three Months Ended | ||||||||
| February 5, | January 30, | |||||||
| 2022 | 2021 | |||||||
Net sales | $ | 10,808,270 | $ | 9,071,511 | ||||
Cost of sales | (8,167,379 | ) | (6,574,064 | ) | ||||
Gross profit | 2,640,891 | 2,497,447 | ||||||
Selling, general and administrative expenses | (1,329,206 | ) | (1,273,381 | ) | ||||
Operating income | 1,311,685 | 1,224,066 | ||||||
Other income (loss): | ||||||||
Interest income | 74,680 | 30,656 | ||||||
Undistributed earnings in joint venture - Majestic 21 | 12,557 | 13,708 | ||||||
Proceeds received under escrow arrangement | 118,045 | 45,868 | ||||||
(Decrease) increase in fair value of equity investment | (4,093 | ) | 79,956 | |||||
Miscellaneous | 13,556 | 7,320 | ||||||
Total other income | 214,745 | 177,508 | ||||||
Income before provision for income taxes | 1,526,430 | 1,401,574 | ||||||
Income tax expense | (369,396 | ) | (335,809 | ) | ||||
Net income | 1,157,034 | 1,065,765 | ||||||
Weighted average number of shares outstanding: | ||||||||
Basic | 3,532,803 | 3,631,924 | ||||||
Diluted | 3,544,467 | 3,633,493 | ||||||
Net income per share: | ||||||||
Basic | $ | 0.33 | $ | 0.29 | ||||
Diluted | $ | 0.33 | $ | 0.29 | ||||
SOURCE: Nobility Homes, Inc.
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