Nobility Homes, Inc. Announces Sales and Earnings for Its Third Quarter 2023
- Sales increased 6% to $14.7 million in Q3 2023
- Income from operations increased 39% to $3.1 million in Q3 2023
- Net income after taxes increased 41% to $2.7 million in Q3 2023
- Sales increased 38% to $48.6 million for the first nine months of fiscal 2023
- Income from operations increased 106% to $10.7 million for the first nine months of fiscal 2023
- Net income after taxes increased 91% to $8.6 million for the first nine months of fiscal 2023
- The current demand for affordable manufactured housing in Florida is slowing
OCALA, FL / ACCESSWIRE / September 15, 2023 / Today Nobility Homes, Inc. (OTCQX:NOBH) announced sales and earnings for its third quarter ended August 5, 2023.
Sales for the third quarter of 2023 increased
For the first nine months of fiscal 2023, sales increased
Nobility's financial position for the first nine months 2023 remains strong with cash and cash equivalents, certificates of deposit and short-term investments of
Terry Trexler, President, stated, "The primary reason that sales and net income increased in fiscal 2023 over fiscal 2022 was due to the severe supply chain challenges experienced during the first nine months of fiscal 2022 that impacted our ability to complete and deliver homes to customers. During the first nine months of fiscal 2023, the supply chain challenges eased compared to the prior period and we were able to complete and deliver more retail customers' homes, which included us selling forty-eight (
The current demand for affordable manufactured housing in Florida and the U.S. is slowing, which we believe is because of the increased interest rate environment driven by the Federal Reserve. According to the Florida Manufactured Housing Association, shipments for the industry in Florida for the period from November 2022 through July 2023 declined by approximately
Maintaining our strong financial position is vital for future growth and success. 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, 2023, the Company celebrated its 56th 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 33 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 competitive pricing pressures at both the wholesale and retail levels, inflation, increasing material costs (including forest based products) or availability of materials due to supply chain interruptions (such as current inflation with forest products and supply issues with vinyl siding and PVC piping), changes in market demand, increase 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 attacks or other events such as a pandemic, any armed conflict involving the United States and the impact of inflation.
NOBILITY HOMES, INC. | ||||||
Condensed Consolidated Balance Sheets | ||||||
August 5, | November 5, | |||||
2023 | 2022 | |||||
(Unaudited) | ||||||
Assets | ||||||
Current assets: | ||||||
Cash and cash equivalents | $ | 12,973,685 | $ | 16,653,449 | ||
Certificates of deposit | 7,347,913 | 3,903,888 | ||||
Short-term investments | 541,132 | 589,071 | ||||
Accounts receivable - trade | 2,596,300 | 1,288,645 | ||||
Note receivable | - | 23,905 | ||||
Mortgage notes receivable | 4,411 | 16,191 | ||||
Income tax receivable | 157,827 | - | ||||
Inventories | 22,743,349 | 23,457,493 | ||||
Prepaid expenses and other current assets | 1,820,579 | 2,172,675 | ||||
Total current assets | 48,185,196 | 48,105,317 | ||||
Property, plant and equipment, net | 8,307,867 | 7,915,695 | ||||
Note receivable, less current portion | - | 16,599 | ||||
Mortgage notes receivable, less current portion | 142,969 | 131,514 | ||||
Other investments | 1,925,169 | 1,848,893 | ||||
Property held for resale | 26,590 | - | ||||
Deferred income taxes | 38,159 | 43,778 | ||||
Cash surrender value of life insurance | 4,275,110 | 4,143,035 | ||||
Other assets | 156,287 | 156,287 | ||||
Total assets | $ | 63,057,347 | $ | 62,361,118 | ||
Liabilities and Stockholders' Equity | ||||||
Current liabilities: | ||||||
Accounts payable | $ | 1,144,548 | $ | 1,119,188 | ||
Accrued compensation | 982,112 | 1,132,423 | ||||
Accrued expenses and other current liabilities | 1,410,429 | 1,742,696 | ||||
Income taxes payable | - | 229,200 | ||||
Customer deposits | 9,146,699 | 10,214,078 | ||||
Total current liabilities | 12,683,788 | 14,437,585 | ||||
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; | ||||||
3,269,075 and 3,370,912 shares outstanding, respectively | 536,491 | 536,491 | ||||
Additional paid in capital | 10,938,966 | 10,849,687 | ||||
Retained earnings | 68,653,044 | 63,441,812 | ||||
Less treasury stock at cost, 2,095,832 and | ||||||
1,993,995 shares, respectively | (29,754,942) | (26,904,457) | ||||
Total stockholders' equity | 50,373,559 | 47,923,533 | ||||
Total liabilities and stockholders' equity | $ | 63,057,347 | $ | 62,361,118 |
NOBILITY HOMES, INC. Condensed Consolidated Statements of Income (Unaudited) | |||||||||||
Three Months Ended | Nine Months Ended | ||||||||||
August 5, | August 6, | August 5, | August 6, | ||||||||
2023 | 2022 | 2023 | 2022 | ||||||||
Net sales | $ | 14,654,789 | $ | 13,846,698 | $ | 48,599,139 | $ | 35,300,014 | |||
Cost of sales | (9,540,399) | (9,948,638) | (31,659,842) | (25,651,808) | |||||||
Gross profit | 5,114,390 | 3,898,060 | 16,939,297 | 9,648,206 | |||||||
Selling, general and administrative expenses | (1,987,782) | (1,653,200) | (6,238,457) | (4,448,349) | |||||||
Operating income | 3,126,608 | 2,244,860 | 10,700,840 | 5,199,857 | |||||||
Other income (loss): | |||||||||||
Interest income | 203,972 | 62,449 | 513,987 | 176,706 | |||||||
Undistributed earnings in joint venture - Majestic 21 | 27,828 | 15,488 | 76,276 | 40,710 | |||||||
Proceeds received under escrow arrangement | 115,641 | 52,140 | 209,806 | 285,639 | |||||||
Increase (decrease) in fair value of equity investment | 81,078 | (57,022) | (47,939) | (80,796) | |||||||
Gain on disposal of property, plant and equipment | - | - | 88,936 | ||||||||
Miscellaneous | 16,404 | 161,157 | 42,766 | 187,065 | |||||||
Total other income | 444,923 | 234,212 | 794,896 | 698,260 | |||||||
Income before provision for income taxes | 3,571,531 | 2,479,072 | 11,495,736 | 5,898,117 | |||||||
Income tax expense | (905,203) | (594,313) | (2,913,592) | (1,399,498) | |||||||
Net income | $ | 2,666,328 | $ | 1,884,759 | $ | 8,582,144 | $ | 4,498,619 | |||
Weighted average number of shares outstanding: | |||||||||||
Basic | 3,323,874 | 3,370,912 | 3,354,981 | 3,460,074 | |||||||
Diluted | 3,328,875 | 3,376,771 | 3,357,424 | 3,469,769 | |||||||
Net income per share: | |||||||||||
Basic | $ | 0.80 | $ | 0.56 | $ | 2.56 | $ | 1.30 | |||
Diluted | $ | 0.80 | $ | 0.56 | $ | 2.56 | $ | 1.30 |
SOURCE: Nobility Homes, Inc.
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