Nobility Homes, Inc. Announces Sales and Earnings for Its First Quarter 2021
Nobility Homes, Inc. (OTCQX:NOBH) reported a first quarter revenue of $9,071,511, down from $9,443,852 in the same period last year. Net income also declined to $1,065,765 compared to $1,400,141 previously, with diluted EPS at $0.29, down from $0.38. Despite these declines, the company maintains a strong financial position with cash equivalents at $36,484,550 and no debt. A one-time cash dividend of $1.00 per share is set for March 26, 2021. Management cites COVID-19-related challenges impacting demand and rising costs due to inflation.
- Strong cash position of $36,484,550 with no outstanding debt.
- Working capital of $39,420,939 and current asset to liabilities ratio of 4.7:1.
- Announced a one-time cash dividend of $1.00 per share.
- Revenue decreased by 4% year-over-year.
- Net income fell by 24% from the previous year.
- Diluted EPS dropped from $0.38 to $0.29.
- Adverse impact of COVID-19 on housing demand.
- Increased material costs due to inflation.
OCALA, FL / ACCESSWIRE / March 12, 2021 / Today Nobility Homes, Inc. (OTCQX:NOBH) announced sales and earnings for its first quarter ended January 30, 2021. Sales for the first quarter of 2021 were
Nobility's financial position during the first quarter 2021 remains very strong with cash and cash equivalents, certificates of deposit 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, "The demand for affordable manufactured housing in Florida has been adversely impacted by COVID-19 and actions taken in response thereto. According to the Florida Manufactured Housing Association, shipments for the industry in Florida for the period from November 2020 through January 2021 were equal to the same period last year. In addition, the lack of lenders in our industry, partly as a result of an increase in government regulations, still adversely affects our results by limiting many affordable manufactured housing buyers from purchasing homes. Since May of 2020 the Company has experienced unprecedented inflation in forest products, with no immediate relief in sight resulting in significate increases to our material costs. The Company is monitoring these costs and have adjusted our selling prices accordingly to help offset the higher costs. The Company purchased the land for the Tavares retail sales center in January 2021 for
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, 2020 the Company celebrated its 53rd anniversary in business specializing in the design and production of quality, affordable manufactured homes. With multiple retail sales centers 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, increasing material costs 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), 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. | |||||||||||
| Condensed Consolidated Balance Sheets | |||||||||||
| January 30, | October 31, | ||||||||||
| 2021 | 2020 | ||||||||||
| (Unaudited) | |||||||||||
Assets | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | 32,963,523 | $ | 30,305,902 | |||||||
Certificates of Deposit | 3,082,111 | 4,602,307 | |||||||||
Short-term investments | 438,916 | 358,960 | |||||||||
Accounts receivable - trade | 1,057,086 | 790,046 | |||||||||
Note receivable | 29,259 | 35,997 | |||||||||
Mortgage notes receivable | 20,776 | 20,162 | |||||||||
Income taxes receivable | - | 105,676 | |||||||||
Inventories | 10,604,393 | 9,294,677 | |||||||||
Pre-owned homes, net | 389,679 | 441,937 | |||||||||
Prepaid expenses and other current assets | 1,553,057 | 1,014,849 | |||||||||
Total current assets | 50,138,800 | 46,970,513 | |||||||||
Property, plant and equipment, net | 5,363,841 | 5,142,714 | |||||||||
Pre-owned homes, net | 1,346,471 | 1,077,240 | |||||||||
Note receivable, less current portion | 6,573 | 6,573 | |||||||||
Mortgage notes receivable, less current portion | 226,286 | 227,509 | |||||||||
Other investments | 1,743,072 | 1,729,364 | |||||||||
Deferred income taxes | 3,598 | 3,598 | |||||||||
Operating lease right of use assets | 705,037 | 715,368 | |||||||||
Cash surrender value of life insurance | 3,840,452 | 3,795,902 | |||||||||
Other assets | 156,287 | 156,287 | |||||||||
Total assets | $ | 63,530,417 | $ | 59,825,068 | |||||||
Liabilities and Stockholders' Equity | |||||||||||
Current liabilities: | |||||||||||
Accounts payable | $ | 1,100,355 | $ | 928,095 | |||||||
Accrued compensation | 446,745 | 670,520 | |||||||||
Accrued expenses and other current liabilities | 1,113,685 | 1,383,833 | |||||||||
Income taxes payable | 230,133 | - | |||||||||
Operating lease obligation | 27,128 | 24,192 | |||||||||
Customer deposits | 7,799,815 | 5,098,633 | |||||||||
Total current liabilities | 10,717,861 | 8,105,273 | |||||||||
Operating lease obligation, less current portion | 769,869 | 778,519 | |||||||||
Total liabilities | 11,487,730 | 8,883,792 | |||||||||
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; | |||||||||||
3,632,446 and 3,631,196 outstanding, respectively | 536,491 | 536,491 | |||||||||
Additional paid in capital | 10,717,025 | 10,694,554 | |||||||||
Retained earnings | 59,041,816 | 57,976,051 | |||||||||
Less treasury stock at cost, 1,732,461 shares in 2021 and | |||||||||||
1,733,711 shares in 2020 | (18,252,645) | (18,265,820) | |||||||||
Total stockholders' equity | 52,042,687 | 50,941,276 | |||||||||
Total liabilities and stockholders' equity | $ | 63,530,417 | $ | 59,825,068 | |||||||
| NOBILITY HOMES, INC. | ||||||||||||
| Condensed Consolidated Statements of Income | ||||||||||||
| (Unaudited) | ||||||||||||
| Three Months Ended | ||||||||||||
| January 30, | February 1, | |||||||||||
| 2021 | 2020 | |||||||||||
Net sales | $ | 9,071,511 | $ | 9,443,852 | ||||||||
Cost of sales | (6,574,064) | (6,554,003) | ||||||||||
Gross profit | 2,497,447 | 2,889,849 | ||||||||||
Selling, general and administrative expenses | (1,273,381) | (1,256,144) | ||||||||||
Operating income | 1,224,066 | 1,633,705 | ||||||||||
Other income: | ||||||||||||
Interest income | 30,656 | 101,883 | ||||||||||
Undistributed earnings in joint venture - Majestic 21 | 13,708 | 19,872 | ||||||||||
Proceeds received under escrow arrangement | 45,868 | 83,109 | ||||||||||
Increase in fair value of equity investment | 79,956 | - | ||||||||||
Miscellaneous | 7,320 | 7,152 | ||||||||||
Total other income | 177,508 | 212,016 | ||||||||||
Income before provision for income taxes | 1,401,574 | 1,845,721 | ||||||||||
Income tax expense | (335,809) | (445,580) | ||||||||||
Net income | 1,065,765 | 1,400,141 | ||||||||||
Weighted average number of shares outstanding: | ||||||||||||
Basic | 3,631,924 | 3,659,241 | ||||||||||
Diluted | 3,633,493 | 3,660,638 | ||||||||||
Net income per share: | ||||||||||||
Basic | $ | 0.29 | $ | 0.38 | ||||||||
Diluted | $ | 0.29 | $ | 0.38 | ||||||||
SOURCE: Nobility Homes, Inc.
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